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Formation of competitive advantages of tourism industry entities

Author

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  • Kyrylov, Yurii
  • Hranovska, Viktoriia
  • Alieshchenko, Liudmyla

Abstract

The purpose of the article is scientific, theoretical, and methodological substantiation of the economic mechanism for the formation of competitive advantages of tourism business entities as a component of their strategic development. Research methods. To achieve this goal, the price and non-price determinants of the competitiveness of the tourism business are investigated, the components of the economic mechanism for ensuring regional competitive advantages are identified, and proposals for further effective development of the tourism industry are given. The methods used for abstract-logical substantiation of theoretical provisions on the topic, economic and mathematical studies of the dynamics and structure of the modern development of tourism entities, systematization of factors affecting the development of competition in the industry. Research results. The article researches the issues of formation and practical use of the competitive advantages of tourism industry entities. Based on the analysis of the tourist number dynamics who were served by travel agents and tour operators in Ukraine, the main trends and changes in the structure of tourism types and the factors that influenced them were identified. Diagnostics of performance indicators of tourism business entities separately for legal entities and individuals-entrepreneurs has been carried out. Based on the calculation of the one tour cost and the tour day, the price components of ensuring the competitive advantages of tourism entities are justified. It is proved that the cost of tourism services is high in comparison with the average income of the population, which is the main reason for the low pace of the industry development in the country. In the economic assessment of tourism activities in Ukraine for the purpose of travel and types of tourism, it was determined that consumers prefer trips for leisure and recreation, and other types of tourism are poorly developed, but in the long run they will provide competitive advantages in attracting tourists. Scientific novelty. The necessity of the development of innovative tourism types, their popularization among the Ukrainians, and citizens of other countries is proved. The qualitative components of competitive advantages are justified, which form the image of the region and the country as an object of tourism. The components of the economic mechanism for ensuring the competitive advantages of tourism business entities at the regional level to increase the investment attractiveness of the tourism industry, financial recovery of tourism entities, government support and regulation of the industry are disclosed. Practical significance. The proposed measures to increase competitiveness and ensure competitive advantages by tourism entities of the Southern region can be used in the elaboration of regional tourism development programs in other regions. For tourism entities, the determined priorities of the economic mechanism of strategic development are the basis for the implementation of their socio-economic mission and the construction of an effective business strategy.Tabl.: 5. Figs.: 3. Refs.: 12.

Suggested Citation

  • Kyrylov, Yurii & Hranovska, Viktoriia & Alieshchenko, Liudmyla, 2020. "Formation of competitive advantages of tourism industry entities," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 27(5).
  • Handle: RePEc:ags:sereko:411807
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