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Evaluating the Impact of Place Branding on Internal Tourism Development in Russian Regions

Author

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  • R. M. Melnikov

    (Russian Presidential Academy of National Economy and Public Administration)

  • P. Yu. Makarov

    (Vladimir Branch, Russian Presidential Academy of National Economy and Public Administration)

Abstract

— The article tests hypotheses about how place branding initiatives impact the number of attracted tourists and revenues of the tourism and recreational sector in Russia’s federal subjects. For this purpose, we perform a difference-in-differences estimation on their panel data to find the average effect of place branding on increasing the number of guests in collective accommodation establishments and the value-added of hospitality industry enterprises. The results show that the implementation of place branding initiatives is associated with an average growth of 15.7% in the number of tourists attracted, and the level of income from tourist services escalates significantly with a more dynamic brand promotion policy. However, such positive effects are observable mostly in the early years of place branding initiatives. Consequently, the achievement of long-term goals to raise the income of a region’s tourism and recreation sector requires not only place branding but also more capital-intensive measures to develop tourist infrastructure, create new facilities, and hold events that could act as incentive to visit the region.

Suggested Citation

  • R. M. Melnikov & P. Yu. Makarov, 2023. "Evaluating the Impact of Place Branding on Internal Tourism Development in Russian Regions," Regional Research of Russia, Springer, vol. 13(4), pages 703-711, December.
    • Handle: RePEc:spr:rrorus:v:13:y:2023:i:4:d:10.1134_s2079970523700958
    DOI: 10.1134/S2079970523700958
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