4application of clusters into tourism industry of samarkand city (asadov asadov)

7/29/2019 4Application of Clusters Into Tourism Industry of Samarkand City (Asadov Asadov)

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Application of Clustersinto Tourism Industry of Samarkand city

Alam I. AsadovSamarkand Institute of Economics and [email protected]

What do we know about tourism resourcesof Uzbekistan and Samarkand city ?

Ancient c ivil izations and h is to ricalmonuments, warm climate, good geographiclocation, cheap labor force and enoughtourism infrastructure

So why it is not one of the mostfamous tour ist attractions in the

world yet?We will try to apply concept of clustersPorters Diamond Model to analyze thesituation


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What are Clusters and Porters

Diamond Model?Cluster is geographicconcentration of interconnectedcompanies, specializedsuppliers, service providers, andassociated insti tutions in a

particular field that arisein certain locations.

Porter says clusters can influencecompetition in three ways:

They can increase the productivityof the companies in the cluster.They can drive innovation in thefield.They can stimulate new businessesin the field.


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Four interlinked advanced factors and

activit ies in and between companies in theseclusters which are The Strategy, Structureand Rivalry of Firms, Demand Condi tions,Related Supporting Industries and Factor Conditions form competitive advantage of nations.Those factors themselves form the DiamondModel of Porter that can help understand thecomparative position of a nation in global

competition . In the Diamond Model Porter also includes two additional factors one isGovernment and the other is Chance .


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Application of Clusters and the Diamond

Model into Tourism industry of SamarkandWe can start by analyzing each of the factors in the Diamond Modeland see how advanced they are inthe regionIndustry resources: 100 tourist

firms, more than 50 hotels, a lot of restaurant and etc.

Strategy, Structure and Rivalry of FirmsMainly small firms and few large onesMain strategies: low price competitionand market segment penetrationHotels in the region are morecompetit ive and rivalry among them ismore apparentThere are some half or fully stateowned tourism fi rms and hotels, butprofitability of them differ


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Demand Conditions in tourism industry

Tourism firms and hotels aremainly concentrated on demandsof the foreign tour ists

Attention paid to the demands of local tourist is littleDilemma: more a firm tr ies to meet

demand of foreign tourists more itignores demand of local ones

Related Supporting IndustriesFew unsatisfactory museumsThe restaurant industry is adjusted localneedsPrices in souvenir shops are highFew clear direction maps and clearly markedbus stops.

Few low quality thematic parks Academic inst itu tions do l itt le cooperationwith tourism firms


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Factor Conditions

Labor in tourism industry is notvery skilledSmall capital investmentShallow tourism infrastructureMost of ancient buildings andhistorical monuments are not

reconstructed and not being used

Government and ChanceGovernment:

The actions by local governmentor branches of national organizationare not being very productive.

Chance:- Terrorist acts of 1999 in Tashkent

- Global financial-economic cr isis of 2008-2009


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ConclusionsThe main four interlinked factors of theDiamond Model are not developedenough in the tourism industry of Samarkand cityThere are possible division of interestthat prevented probable collaborationsThe possible causes of the problem:- Existence of barriers for free marketinitiatives- Lack of catalyzing involvement bylocal government

SuggestionsThe academic institutions and their staff should be both financially and spirituallymotivated to work together with businessesand other academic institut ions.We propose opening of a center for improving research in tourism developmentFunctions of the center will be:

- Assurance of collect ive work amongacademic institutions;

- Improvement of integration betweeneducation, research and businesses;

- Analyzing and approving any new project s;- Assi st ing academic inst itutions with

preparation of specialists.


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Final Conclusion

The center and overall formation of cluster in tourism could be initiallyfinanced by local government.Tourism clus ters will start to work ontheir own once businesses startbenefiting from quality research and

Thank you for your attention!

4application of clusters into tourism industry of samarkand city (asadov asadov)

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