Culture, tourizm and economy as a triumvirateof regional strategic development

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Culture, tourizm and economy as a triumvirateof regional strategic development

The article reveals the role of integration of culture, tourism and the economy as triumvirate in regional development. The functions of the triumvirate in the process of forming strategic competitiveness are defined as adaptation, support and formation. The main stages of the formation of a system of interaction between culture, tourism and the economy in the region are proposed. The stage of research contains investigations of culture and tourism situation and management at the level of business and region. At the stage of planning it is proposed to establish the system of strategic management, to form the network of triumvirate and to provide the support for its management. Implementation of triumvirate is based on high level of human potential.

region triumvirate strategic

Problem statement. Culture in its tangible and intangible content is an important factor in economic development, the effect of which has recently been greatly enhanced. An important aspect is the effectiveness of this sector of the economy, as evidenced by the comparison of the data cited by UNESCO. Thus, the CULTURAL TIMES study, The First Global Map of Cultural and Creative Industries states that the Global CCI Revenue is 3% of the world's GDP, while the Global CCI Employment is 1% of the world's active population [1]. At the level of a city as part of a region Jan van der Borg and Antonio Paolo Russo suppose that culture “shows to be: an increasingly important sector in the urban economy, offering as many jobs as other traditional industries, and undergoing a sharp transformation in the enterprise model getting from traditional public bodies to constellations of small, flexible networks of cultural producers, characterized by a strong ecology; “knowledge input” that is internalized in the local economic environment in terms of better location potential, local market characteristics (of products and human capital), and innovative capacity; a catalyst for urban change, affecting the spatial organization of city functions, its social composition, the community values and norms, and the very identity and image of the city” [2].

Realization of the functions of culture in the economic sphere is assisted by tourism as a sphere of diffusion of cultural values, a mechanism for raising people's education and a way of transforming cultural values into economic benefits.

Thus, culture and tourism constitute the organizational, spiritual and material foundation for the development of the regional economy and especially its human component.

Analysis of recent studies and publications. The importance and prospects of culture and tourism as areas of activity and factors of economic development determines the attention of scholars and practitioners to the identification of the theoretical bases and functions of culture and tourism in the modern economy. Arefyeva T.N. suggests that culture “is a universal foundation for development and renewal of the society in postindustrial world. It determines crucial changes in the sphere of politics, economics and social support of population, those changes are based not as much as on new technologies and scientific achievements but on innovative approaches in development of human relationships” [3, p. 179]. Considering all the truthfulness of this statement we ought to point that the author does not mention a mechanism of those crucial changes and the role of tourism and other sectors of economy in the whole process.

Miklovda V.P. with his supporters express their views regarding influence of the culture in the innovational processes as a corner stone of its success, suggesting that “convergence of culture and innovational actions creates a new mechanism in interaction between population, organisations, regions and countries which for its part allows to form not just a creativity (the essence of culture) but to manifest itself in a form of economic benefits. This kind of symbiosis becomes an innovational culture research, allowing its implementation by the economic system as a form of strategic factor of development” [4, p. 16]. These ideas are supported in publication by Kubiniy V.V., interpreting innovational culture as a factor of regional development in the aspect of various conceptional approaches, for instance “institutional-factorial”, “processional”, “environmental”, etc. [5, p. 25-26]. Meanwhile the above mentioned researches do not consider the ways of the introduction of the innovational culture in regional practices.

Also tourism as a form of strategic activity attracts attention of modern researches. Thus, Shandor F.F. “carried out a historical analysis of the development of tourism sphere in Transcarpathia as a strategic part in economy and development of social infrastructure” [6] therefore tourism is described as a “socio-cultural phenomena” [7, p. 3], however, the connection between culture and tourism is bleak.

Interaction between culture and tourism is represented by Minkovskaya R.V. She suggests that “culture influences not just a goal, task and functions of tourism but actively forms its sectorial structure” [8]. The interference of tourism and culture through communication is presented in publication by Zelenyuk Y.O. “Tourism in regional inner-state aspect generates communication between popular, elite and folk culture. In fact, tourism as a popular-cultural activity makes a popular culture more accessible by folk culture and its world views. It also shares forms of elite culture including redefining and interaction of different forms of culture in society. Furthermore, tourism provides reception of these cultural forms by entities on common grounds as well as positively tolerant perception of ones as cultural manifestations” [9, p. 25], nevertheless the forms of interaction between tourism and culture in the process of economic activity are not outlined.

The growing role of cultural industries and tourism in Europe is taking place in the context of the formation of a multicultural society and transition to a knowledge economy, which makes it necessary and expedient to study the interaction of culture, tourism and the economy in the process of creating a sustainable environment.

The purpose of the article is to justify the need for the interaction of culture, tourism and the economy as a triumvirate of strategic development of the regional economy. To achieve the goal, the following tasks were solved: the role of each element of the triumvirate in the process of growth of the regional economy is shown; it is defined the functions of the triumvirate; the stages of the formation of a triumvirate in its management are described.

Statement of the basic material and key research findings. The potential of cultural and creative industries in promoting sustainable development creates vast opportunities, therefore it is attracting increasing international, regional and local interests in sphere of strategic regional transformations and their management.

The main meaning of the interaction of culture, tourism and economy as an instrument of regional strategic developments presented in this article in a simplified version as follows. Tourism and economic suppose culture as a capital, “which can be defined as a set of cultural wealth accumulated by the country or the works of art collected by it, as well as its cultural heritage and other forms of cultural expression. Like other types of capital, cultural capital requires investment otherwise it will depreciate over time and lose its significance” [10]. On the other hand, the economy and tourism allow regional cultures to develop and find new forms and ways of presenting and moving towards existing and potential customers.

Integration of tourism, economy and culture within the framework of strategic development involves the following functions (Figure 1).

1. First function brings the adaptation of regional economic systems to the modern economy, knowledge economy, which is based on people, information and culture.

2. Second supports the human development of both individuals and within the region, as well as at higher levels of public life.

3. Third one forms a multicultural regional environment, the foundations of which are tolerance, respect and trust, which in turn are the conditions for productive economic activity.

Economic development, according to our opinion, is the fundamental factor of this triad, because:

— it is carried out under the influence of the law of time saving, and the economic development is accompanied by an increase in labor efficiency, therefore an increase in free time. It is free time that makes the condition for the development of cultural leisure and tourism;

— is also accompanied by an increase in the incomes of the population, which is especially important on the assumption that tourism and culture have a high elasticity between the price of services and the demand for them;

— forms new needs, including cultural ones, which is an impetus for the revitalization of tourism and the cultural sphere.

Transcarpathian region and Uzhhorod as the capital of the region have one of the most powerful potentials for the development of tourism, cultural and creative industries (CCI) in Ukraine, but lag behind in their development from world and national trends. Thus, in Transcarpathia, a partial CCI is less than one point of gross regional product. Therefore, an important direction in the strategic development of Transcarpathia is the course towards strengthening the interaction between the economy, tourism and culture.

In order to make decisions in the field of strategic interaction between the economy, tourism and culture, a survey of the cultural environment of the region was carried out in the course of the study, as a result of which its strengths and weaknesses were identified, presented in Figure 1.

Fig. 1. Strength and Wea knesses of Transkarpathian Cultural Environment Source: created by authors

As the results of the analysis show, the reasons for the weakness of the cultural environment are the following: lack of development strategy of the region and its tourist and cultural structures; low income level; insufficient funding for the development of cultural sites. These weaknesses can be eliminated in the process of correct regional policy.

Among opportunities for culture, tourism and economy as a triumvirate of regional development is offered the implementation of strategic management of regional competitiveness.

In the context of strategic management of regional development and building of key competitiveness, the formation of a triumvirate in Transkarpathian region should be preceded by the stages of research and planning.

At the first stage it is proposed:

1. To explore modern methods of organizing business in the field of CCI and tourism in developed counties (such as the UK, Poland) as a part of knowledge economy for the purpose of its distribution in Ukraine and Transkarpathia.

2. To study the experience of strategic development management of CCI and tourism at the regional/city level in developed countries.

3. To investigate the role and the place of innovation culture in the cultural environment of a country, region, city and its influence on the formation of tourist attractiveness to a country, region, city.

4. To cover research into the mechanisms of confidence (trust) building as a factor in the formation and effective functioning of the CCI and tourism in a polynational cultural environment.

Stage of strategic planning contains:

a) strategic analysis of cultural environment in Transkarpathia;

b) CTeating a mechanism for strategic management of economic regional development in the field of integration of culture, tourism and the economy;

c) To create a Regional (City) Strategy of the CCI and tourism development Transkarpathia/Uzhgorod in terms of transition to knowledge economy in multicultural society;

d) building a model of interaction between culture, tourism and the economy in specific conditions and with a certain course of strategic regional development;

e) to organize the permanent training for regional/ city authorities, researchers, CCI and tourist organizations (according key objects of research) in Transkarpathia/Uzhhorod in order to intensify the development of cultural objects and cultural industry as strategic factors of a stable social and economic environment;

f) to form a network of partnerships between British, Polish and Ukrainian researchers, local authorities and entrepreneurs in the field of CCI, tourism, economic and cultural development aimed at the constant exchange of experience and cooperation.

Strategic management by Triumvirate involves a certain set of actions related to the implementation of the plan. For this the region has:

1. High level of education, including theoretical knowledge and practical skills. This is due to active exchanges with business circles in neighboring European countries.

2. Culture of the regional population in which the vector of development and cooperation prevails.

The combination of the strengths of the cultural environment in the process of interaction of tourism, culture and economy will allow the region to reach a higher level of development and gain additional competitive advantages.

Conclusion. Regional development in the conditions of the post-industrial economy, which is the future, is gaining growth under the influence of strengthening culture, tourism and the economy both as separate directions and as a result of synergy from their interaction and mutual support.

Triumvirate of tourism, economy and culture within the framework of strategic development involves the following functions:

1. To adapt a regional economic system to the knowledge economy, the main components of which are people, information and culture.

2. To improve social development.

3. To support a multicultural regional environment.

A triumvirate in Transkarpathian region should be

preceded by the stages of research and planning. At the

first stage it is offered to explore modern methods of organizing business in the field of CCI and tourism in developed counties; to learn the regional management of culture and tourism, to investigate the role and the place of innovation culture in the cultural environment; to look at institutional tool (for example, trust) and their role in culture, tourism and economic convergence.

At the planning stage it is advisable to carry out the following actions: to conduct strategic analysis, to create a mechanism for strategic management, to create a strategy of cultural, touristic and economical collaboration, to build a model of interaction between culture, tourism and economy, to organize the permanent training for members of the process, to form a network of partnership between developed countries and Ukrainian researchers, local authorities and entrepreneurs in the field of CCI, tourism, economic. Implementation of strategic regional triumvirate is based on human potential and regional population culture.

References

region triumvirate strategic

1.The First Global Map of Cultural and Creative Industries. Retrieved from: https://en.unesco.org/creativity/files/culturaltimesthefirstglobal- mapofculturalandcreativeindustriespdf/ (accessed 10 March 2019)

2.Jan van der Borg Antonio Paolo Russo. The Impact of Culture on the Economic Development of Cities. 2005. Retrieved from:https:// www.wien.gv.at/meu/fdb/pdf/intern-vergleichsstudie-ci-959-ma27.pdf (accessed 15 March 2019)

3.Arefeva N. (2015). Kultura kak istochnik i instrument regional- nogo ekonomicheskogo razvitiya [Culture as a source and instrument of regional economic development ]. Vestnik MGUKI, 5(67), 176-180. [in Russian]

4.Miklovda V.P., Margitich V.V., Fialkovskiy A.R. (2017). Soderzhanie i imperativyi innovatsionnoy kulturyi [Content and imperatives of innovation culture ]. Naukovyi visnyk Uzhhorodskoho universytetu, 2(50), 16-22. [in Russian]

5.Kubinyi V.V. (2017). Suchasni kontsepty innovatsiinoi kultury [Modern concepts of innovation culture ]. Naukovyi visnyk Uzhhorodskoho universytetu, 2(50), 23-27. [in Ukrainian]

6.Shandor F.F. Stanovlennia turystychnoi haluzi v Zakarpatti: isto- rychnyi aspekt [The formation of the tourism industry in Tran- scarpathia: the historical aspect]. Retrieved from: https://dspace. uzhnu.edu.ua/jspui/bitstream/lib.pdf (accessed 16 March 2019)

7.Shandor F.F., Kliap M.P. (2013). Suchasni riznovydy turyzmu : pid- ruchnyk [Modern varieties of tourism: a textbook ]. Kyiv : Znannia. [in Ukrainian]

8.Mankovska P.B. (2006). Turyzm yak skladova suchasnoi kultury Ukrainy. Kraieznavstvo. [Tourism as a component of modern Ukrainian culture. Regional studies]. Retrieved from: http://dspace. nbuv.gov.ua/bitstream/handle/123456789/6155/32-Mankovska. pdf?sequence=1 (accessed 16 March 2019)

9.Zeleniuk Yu.O. Turyzm yak henerator komunikatsii kultur [Tourism as a communications crop generator]. Retrieved from: http://wsc. kymu.edu.ua/toms/10/023-025.pdf (accessed 10 March 2019)

Pochemu iskusstvo i kultura bolshe blagopriyatstvuyut ekono- mike, nezheli rostu i sozdaniyu rabochih mest [Why art and culture are more conducive to economics than growth and job creation]. Retrieved from: https://www.culturepartnership.eu/article/why-art- and-culture-contribute-more-to-an-economy-than-growth-and- jobs. (accessed 12 March 2019).

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