The role of tourism sector in local economic development (Evaluation from the perspective of Ganja region of Azerbaijan)

The main purpose of this study is to analyze the competitive power of tourism industry in Ganja region of Azerbaijan and approach potential and negative factors in the development of tourism sector. Through Porter's Diamond Model the competitiveness of Ganja region was analyzed and its positive and negative aspects were revealed. In the first part of the study, types, principles, goals and tools of regional economic development, with particular reference to the main factors affecting competition in regional economic development were mentioned. In the second part of the study, quantitative and qualitative factors affecting the competitiveness of tourism were examined. In the third section, socio-economic development as well as agriculture, industry and service sectors were evaluated. Tourism potential of Azerbaijan was discussed based on regions and which regions were more developed than others were briefly touched upon in this study. In the application part of the study tourism businesses and the other businesses related to tourism were conducted a survey. Survey results have been examined in the Diamond Model and competitiveness of tourism in this region were analyzed. Average and standard deviation of survey results were obtained through SPSS software program. As a consequence, competitive analysis of tourism sector was conducted through Diamond model. The main results of competitive analysis performed in this study are as below:  Geographic location, ease of access, local educational institutions increases the competitiveness of tourism sector in Ganja region  Having an oil-dependent economy of Azerbaijan brought about a negative impact on the development of tourism sector. Thus, as a result the lack of allocation of sufficient investment by government for the development of this sector, it is not developed enough  Most of businesses are facing with insufficient financial resources, branding failure and the lack of advanced infrastructure  Bureaucratic obstacles and insufficiency in the governmental support are negative incentives for the entrepreneurs to invest in this field