The role of clusterization and digitalization in promoting innovative tourism based on free economic zones

Abstract

In the modern world, the tourism industry is becoming one of the drivers of economic growth, especially for regions seeking economic diversification and investment inflows. Innovative tourism is a concept involving the introduction of new technologies, products, and business models into the tourism sector to enhance its competitiveness and sustainability. Clustering (the creation of geographically concentrated groups of interconnected enterprises and institutions) and digitalization (the active use of digital technologies and data) of the industry are becoming increasingly important factors for the successful development of innovative tourism. Of particular interest are special economic zones (SEZs) – territories with special business conditions – as platforms on the basis of which tourist clusters can be formed and advanced digital solutions can be implemented.

The relevance of the topic is due to global trends, because tourism is recognized as one of the leading industries contributing to economic development, attracting investment and creating jobs in developing countries. Following the turmoil of the COVID-19 pandemic, the need for innovation in tourism has increased as the industry has faced security challenges, changing consumer behavior, and digital inequality. Governments in many countries have begun to pay more attention to the development of tourism clusters – associations of business, science and government – and the promotion of digital technologies in tourism to increase the efficiency and adaptability of the industry. At the same time, free economic zones are considered as convenient “testing grounds” for testing such initiatives due to special taxation regimes, benefits and concentrated infrastructure.

The purpose of this article is to explore the role of clusterization and digitalization in promoting innovative tourism using the example of international cases based in free economic zones (for example, China, the United Arab Emirates, Singapore, etc.), summarize the results and formulate recommendations for the further development of innovative tourism through clusters and digitalization in special zones.