Cluster-based economic development strategies : a model for the tourism industry in Kwazulu-Natal

• Main Author: Sithole, Sibusiso Clement
• Other Authors: Joubert, P. (Dr.) Completed: 2008
• Language: en
• Published: 2010
• Subjects: Tourism industry; Cluster-based economic strategies
• Online Access: http://hdl.handle.net/10500/3162

The purpose of this study was to explore how a potential model of a tourism industry cluster could be developed in KwaZulu-Natal (KZN). To undertake this task an extensive literature review of cluster-based economic strategies was done. This was followed by a synopsis of the tourism industry from a global and South African perspective in order to determine issues of competitiveness and their impact on provincial dynamics. The study employed a qualitative research design and focused on the tourism industry in KwaZulu-Natal as a case study. Major stakeholders in the industry were interviewed. The main findings of the study are that KZN has the necessary preconditions for existence of a potential tourism cluster, and these conditions make it ripe for the cluster to be activated and developed. Activating and developing a cluster would bring home major benefits. The study highlighted various tools and mechanisms which could be used to analyse the province’s cluster map, and a model cluster map is also suggested based on contributions from different respondents. Using Porter’s Diamond Model, the competitiveness of the KZN tourism industry was assessed. Overall, it has been found that the province’s tourism industry possesses a mixture of resources and capabilities, which could be capitalised upon to developing the industry in future. However, glaring weaknesses are also exposed, which need to be dealt with urgently. In particular, crime and grime, together with the lack of tourism infrastructure to attract the high-end of the market, are seen as huge liability for the industry. A major contribution of this study is in identifying strategic management challenges that cluster studies have not addressed previously. The study also highlighted important critical success factors for cluster development and the drivers for change. The presence of some of these factors contributes to making the future prospect of the tourism industry in KZN to look bright. The study concludes by recommending that a tourism cluster be activated and developed in KZN and this process be led by an Independent Cluster Facilitator, who must be appointed by the Member of the Executive Committee responsible for Finance and Economic Development in the province in consultation with industry leaders.