MANAGING INTER-FIRM COOPERATION TO IMPROVE TOURISM DESTINATIONS: A CLUSTER APPROACH

The researcher examines the existence and nature of inter-firm relationships between tourism stakeholders within various Bulgarian tourist destinations and how they relate to the competitiveness of the destination. The purpose of the study is to analyze the degree of cluster relationships and their importance for the strategic management of tourist destinations. In the course of the study representatives from 16 Bulgarian regions were interviewed and asked about the level of cooperation between the tourism participants. Based on this data the regions were grouped according to the level of perceived cluster collaboration, as well as according to the importance given to this cooperation. As a result, inferences about the key obstacles, as well as key factors and best practices for increased cooperation in tourist destinations can be made and can be incorporated into future development policies. The analysis indicates that the majority of the Bulgarian municipalities realizes the benefits of cluster relationships but so far have not been able or willing to extract any benefits from them. There is a need for a high profile tourist destination that can serve as an example of good strategic positioning achieved through the formation of clusters, public-private partnerships and increased inter-firm cooperation on the local level. Managing networks is an essential managerial challenge for the contemporary tourist destination. Understanding clusters, their structure, processes and development is essential to the successful strategic management of a tourist destination in the 21st century.