*2.1. The Industry-Based Model*

The growing volume and complexity of tourism services have generated the development of a whole tourist industry that justifies treating the phenomenon of tourism as a distinct branch of the growing economy (Sofronov 2018). The tourism industry should also contain delivery systems, which are often not located in a tourism destination. The tourism industry (Leiper 1997) is a group of services and products found in a tourist destination. Manente et al. (1996) defined travel and tourism as a mix of heterogeneous industries interrelated with each other with different participation related to the tourist consumption levels. Therefore, tourism involves several products and services at the tourist destination level. Baggio (2008) provides some evidence to the idea that tourism and its primary representative, a tourism destination, is a complex adaptive system. Therefore, the tourism industry structure changes the motivations for tourists and travellers. Links between tourist expenditure and production are different (Jakulin 2017), and local productions can also participate in the production process if they are not directly related to tourism consumption. McKercher et al. (2021) demonstrate the complex nature of tourism systems and related industries in the production process.

In this way, at the destination level, travel and tourism need a reticulum of productions and activities useful for a complete tourist experience at a destination level (Baggio and Sainaghi 2011). Therefore, the tourism development model based its concept on the need to have a well-structured tourist company network, centrally coordinated or managed. According to the cluster theory (Marshall 1994), this model proposes an industrial organisation that is place-based and able to generate specialisation and agglomeration economies. This evidence in some places was theorised with the tourist destination paradigm. Destinations (Cooper 2002) are often based on the following bullet points.


In this way, tourism contributes to a country's economy from different angles. Government and industries realise tourism's contribution to the economy regarding employment, profits, income generation, the balance of payment, and investment (Holloway and

Humphreys 2016). Therefore, from an economic perspective, tourism is also vital for the economy because it generates employment for locals and increases profit margins.

The tourism and travel industrialisation process in EU tourism island destinations has been followed by large and medium EU island destinations, such as Mallorca, Ibiza, Malta, Crete, Cyprus, Tenerife, Elba, Capri, Sardinia, Sicily, etc. The destination-building process followed a cluster model according to a demand driver approach, external investments, international hotel chains, a consistent number of accommodation services, related services, flight connections, and public services. As shown in Table 1, some authors specified the tourism industry concept at the destination level while considering some thematics.

**Table 1.** Industry-based tourism model literature thematic.


Source: elaboration on literature analysis.
