New Economic Geography (NEG): Creative Economies and Urban Tourism

This chapter explores the intersection of New Economic Geography, contemporary creative economies, and the development of urban tourism. It examines how agglomeration processes—driven by factors such as market size, transportation costs, or increasing returns—contribute to shape tourism dynamics. Urban areas, as hubs of creative industries and cultural production, attract both talented residents and tourists through economies of scale and scope. The chapter also highlights the role of transaction costs in reinforcing the center-periphery divide, wherein urban tourism thrives on low transaction costs and cultural concentration, while non-urban areas mostly rely on nature-based tourism. The rise of the creative economy, fueled by digitalization and shifting consumer preferences, has further integrated cultural experiences into tourism, transforming cities into dynamic cultural destinations. Concluding with insights into the implications of these trends for urban livability, tourism, and sustainable development, the chapter also discusses the role of spatial econometrics in analyzing tourism patterns.