Clusters in regional tourism - An Australian case

With changing industrial patterns in regional Australia, tourism has gained increasing currency as an agent for regional economic development. This paper investigates the applicability of cluster theory in supporting the movement from comparative advantage to competitive advantage for four regional towns located on the Murray River in Australia. Thus far cluster analysis has largely been applied in the manufacturing industry. This paper reports on its potential as an analytical tool in service-based tourism and, through the cases studied, identifies vital attributes of clusters that are lacking in the least economically successful region in the study area.