Comparative Study of the Sustainability of Donor-supported Tourism Clusters in Developing Economies

DONALD E. HAWKINS and LEILA M. CALNAN

The viability and long-term cohesion of tourism clusters are seen to vary in different country contexts. This study examines the life cycle of tourism clusters in two geographically diverse developing economies their beginnings; forces that influence growth and long-term viability; type, duration and value of donor support; their possible decline, and sometimes rebirth. This study evaluates two tourism clusters in developing countries, beginning by benchmarking them against regional destination competitors; examining the enabling environments within which they operate; and finally, based on the country case studies, analyzing the donor-funded technical assistance programmes which enhanced their institutional capacity to develop tourism products and services. Together, these factors point to key lessons learned about the sustainability of donor-supported tourism clusters in Bosnia and Herzegovina and Sri Lanka. For comparative purposes, these two country case studies were selected for (1) their similarities as destinations receiving organized donor-agency support through a project, for the specific purpose of developing and enhancing the capacity of the tourism cluster and its actors; and (2) for the geographic differences – one in Asia, one in Europe – including variables such as different geographic competitors, different tourism products and services on offer, and different business/operating environments.

Keywords: competition; clusters sustainability; donor-support; Bosnia and Herzegovina; Sri Lanka..