Agglomeration and its determinants of tourism industry cluster

Industry cluster is a hot topic in the world. However, traditionally the theories of clustering have been mainly applied to the manufacturing industry, despite the fact-that the service sector, and as a part of it, the tourism and travel industry, is one of the greatest clustering effect industry in the world. What is it that attracts visitors, residents, companies, investors and other interested par-ties to a place? What are the determinants that influence this tourism agglomeration phenomenon? These questions have for a long period been of great interest, not least to researchers. The overall purpose of this paper is to try to answer the question by economic theory and provide insight into how tourism industry cluster develop. This is done by first introducing a general analysis on the theoretical model explaining the formation principle and its determinants of tourism industry cluster. Then this paper tests the theoretical model by a case study on Fujian province.