THE LEVEL OF INTEGRATION OF CROATIAN PRODUCERS IN TOURISM CLUSTER

Purpose – The aim of this paper is to analyze the level of integration of Croatian producers in tourism cluster. Study assessed the level of interconnection between cluster actors and investigate the connection of sectors which are directly included in the provision of goods and services to tourists and other economic units in Croatia. Methodology – In this research Structural Decomposition Analysis based on the Input-Output model is used. Structural Decomposition Analysis provides more in-depth insights into the level of integration of Croatian tourism cluster. The total economic effects assessed in two different periods are decomposed to the changes in the level and the structure of tourist’s expenditures and the effects of the changes in technological coefficients. Findings – Empirical results confirm hypothesis on the increasing importance of the tourism sector for the Croatian economy. Higher share of imported goods is found for certain inputs used by tourism sector in recent years which negatively affect the multiplication of positive economic effects to other domestic producers. Trends in the integration and factors behind those trends are identified. Contribution – Besides scientific community the results of the study could be of interest for policy makers and Croatian tourism associations because study estimate the effects of better coordination and integration among tourist companies and other domestic producers.