Resources and barriers to the development of internal tourism in Russian regions: evidence from Dagestan

Abstract

Since 2020, local tourism in Russian regions has been considered one of possible drivers of economic growth. However, it is not entirely clear why the tourism sector is growing in the regions that are considered unfavorable for business enterprises. This article aims to examine and describe the factors contributing to the establishment of tourist firms in new tourist regions and the obstacles that stand in the way of developing hospitality industry. The article presents the results of a field study conducted among representatives of tourism industry in Dagestan. In the course of work, we conducted semi-structured interviews with 24 entrepreneurs from different market segments and stages of tourist product creation: the organizers of guided tours, hotel owners, guest houses, and restaurants, as well as with state representatives. Field study shows that human resources and social capital is the most important resource used to build tourism business in Dagestan, as well as the availability of customer base. Physical capital is crucial only for opening tourist accommodations. At the same time, as the industry develops, more and more resources are needed to enter the market. The main barriers to tourism development are insufficient human resources and infrastructure and the loss of some sales channels in 2022. Current policy in promoting tourism development in the North Caucasus is not achieving its goals, representatives of the industry perceive the support provided as insufficient. The results of the study show that new tourist regions, where mass tourist flow appeared only with the beginning of the pandemic, may face a shortage of transport and sanitary infrastructure, and personnel training system. Thus, public policy measures aimed at eliminating these problems could be particularly effective.