The Fundamental Distinctive Applications of Networks in Tourism Industry: A Useful Mechanism for Trust

In the contemporary competitive business world, enterprises have to compete globally, but must also adjust to the surrounding environment in order to become more efficient and effective locally. Networks can play a significant role in accomplishing this, as they facilitate access to knowledge, resources, markets and technologies. ‘Networks’ are defined as social structures that enable the operators of small firms to build the level of trust necessary for them to share in the development of the local tourism product. Much of tourism development is predicated on the successful working of organizations alignment in the form of partnerships or “networks”. However, tourism networks have been relatively neglected as an area of academic study. The literature suggests that there are a set of clearly identifiable benefits that are achieved through the networking process, which deliver gains to both the network’s membership and its host community. A review of relevant literature considers the definition and description of networks, their benefits, and identifiable success factors. Discussion follows as to the main functions and benefits of tourism networks in relation to learning and exchange, business activity, and community values. Key issues that emerge include: structure and leadership, resourcing, engagement of participants, inter-organizational learning, and sustainability. The paper concludes by identifying significant success factors and indicators for business networks and consequential management implications with specific references to tourism destinations as learning communities. Finally, the relation between the tourism destination networks and the knowledge transfer is discussed.