THE TRANSFORMATION MODEL OF INSTITUTIONS FOR DEVELOPING THE COMPETITIVE POTENTIAL OF TOURISM INDUSTRY ENTITIES

Abstract

The article discusses the model of transforming the institutions for developing the competitive potential of the tourism industry subjects. The purpose of the study is to substantiate a new model of institutions for the development of the competitive potential of the tourism industry entities, which would be responsible, on the one hand, for ensuring the sustainable, safe, and competitive development of the tourism industry and the economy as a whole, and, on the other hand, develop it considering the conditions of the post-war period. The main task in the context of the study goal is the formation of a new model of institutions for developing the competitive potential of tourism industry entities and determining the principles, methods, and functions that form this new model of institutions. The article analyzes such principles of the transformation of the competitive potential of the subjects of the tourism industry as objectivity, historicism, systematicity, consumer value, reproduction, and Smart Specialization. The set of methods for transforming the competitive potential of the subjects of the tourism industry comprises economic, modeling, and digitalization methods. The study focuses also on the functions of managing the transformational processes of developing the competitive potential of tourism industry subjects, in particular, such as analytical ones, planning, organization, motivation, and control. An important item is the study of factors influencing the transformational processes of the development of the competitive potential of the entities of the tourism industry. The factors of military conflict, military-political instability, globalization of processes, digitalization of the economy, consumer value, demographic factors, investment and innovation factors, social factors, and some others are determined as the main ones. A transformation model for developing the competitive potential of tourism industry entities and the expected results of the transformation of the competitive potential of tourism industry entities following the principles, methods, functions, legal norms, standards, and rules is proposed and substantiated. The proposed institutionalization approach will make it possible to form an appropriate legal platform and set a benchmark for the implementation of transformational processes of the competitive potential of tourism industry entities, which will allow balancing the market of tourist services/products and satisfying the interests of various groups of stakeholders.