THE EFFECT OF REGIONAL TOURISM ON ECONOMIC DEVELOPMENT (CASE STUDY: THE EU COUNTRIES)
THE EFFECT OF REGIONAL TOURISM ON ECONOMIC DEVELOPMENT (CASE STUDY: THE EU COUNTRIES)

Summary/Abstract: Transformations of the tourism market structure in a pandemic necessitate a study of the extent to which EU countries can provide their citizens with tourism products to minimize the negative impact of the pandemic and, consequently, the negative impact on economic development. This article aimed to develop recommendations for minimizing the negative impact of reducing regional tourism on economic development through the support of domestic tourism. This research uses a quantitative methodology based on indicators of growth of tourist external and internal flows in the regions, the growth rate of economic regions of the EU for 2015-2019. The following countries were selected for correlation analysis: Belgium, Bulgaria, Czech Republic, Germany, Estonia, Greece, Spain, and Italy. The analysis of the impact of regional tourism on economic development in the EU for 2015-2019 indicates the need to develop regional strategies for smart specializations of the tourism industry based on the most attractive industries for tourists. It is determined that within the EU, economic development is less dependent on developed tourist regions due to potentially low tourist costs, as a result - short-term revenues from the industry. It is proved that regions with a high level of tourist flows can provide economic development by increasing the innovation of industries related to tourism, as such industries attract tourists. In a pandemic, businesses need to focus on promoting regional products and shift the focus to domestic consumption within the country. The theoretical value of this study is that regional tourism affects the economic development of the EU countries through the total costs of tourists, the volume of which in the short term has a negligible impact on the region's development. At the same time, the income of the tourism industry as a contribution to the economy is overestimated in the scientific literature.

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