CONSUMER DEMAND AND THE DEVELOPMENT OF THE TOURISM MARKET  IN NORTHERN BORDER REGIONS

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Tatyana V. Morozova1, Raisa V. Belaya2, Galina B. Kozyreva3, Arsenii A. Morozov4

1, 2, 3, 4Institute of Economics of the Karelian Research Centre of the Russian Academy of Sciences, Petrozavodsk, Russia

1morozova.ras@gmail.com, ORCID 0000-0001-6639-2519

2belaya@krc.karelia.ru, ORCID 0000-0003-4100-5038

3kozyrevakrc@gmail.com, ORCID 0000-0001-9303-0361

4morozov589@gmail.com, ORCID 0000-0003-0873-5071

Abstract. This study aims to examine the demand within the tourism market of the area encompassing two northern border regions, namely the Republic of Karelia (Russia) and North Karelia (Finland). Finland and the Republic of Karelia are similar  in terms of their natural and climatic conditions, and their indigenous populations belong to the Finno-Ugric group.  In the Republic of Karelia, the tourism sector emerges as a potential avenue for socio-economic development, with a focus on increasing the number of visitors to the region. Finland, historically renowned for providing high-quality tourist services, has been a key attraction for tourists, including Russians, holding a prominent position globally in terms of visitor numbers. Given the contemporary redistribution of tourism flows, a question arises: Can the Republic of Karelia offer a tourism product of comparable quality to that of Finland? Therefore, the examination of consumer demand for tourism services becomes highly pertinent. The scientific novelty of the study lies in the development of a toolkit with a wide array of indicators. Drawing on empirical data from a 2019 survey of tourists visiting the studied destinations, the research employed multivariate statistical analysis, including factorial and discriminant methods, to study a large number of input parameters. This approach allowed the identification of differentiated demand for tourism services, its assessment, and the development  of a multidimensional model of consumer demand. Future research into the tourism market’s demand necessitates  the incorporation of parameters reflecting the quality of conditions for providing tourism services. This involves identifying reasons for dissatisfaction with tourism services, as well as understanding the motivation and intentions of tourists  for revisiting the area. The study underscores the urgency of creating institutional conditions that support and develop popular types of tourism, aiming to bolster the tourism sector within the Republic of Karelia’s economic structure.

Keywords: differentiation, tourism services market, Russia, Republic of Karelia, Finland, level of demand

Acknowledgments: this study was carried out at the Karelian Research Centre of the Russian Academy of Sciences as part  of the research project titled “Comprehensive Research and Development of the Fundamentals of Sustainable Development Management in the Northern and Border Regions of Russia in the Context of Global Challenges” supported by the government The authors of the article express deep gratitude to the reviewer for his valuable comments and recommendations.

For citation: Morozova T. V., Belaya R. V., Kozyreva G. B., Morozov A. A. Consumer demand and the development of the tourism market in northern border regions. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2024, no. 1, pp. 50–66. doi:10.37614/2220-802X.1.2024.83.004.

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