Application of Porter's Cluster Theory to the Konkan Tourism Business

Tourism being a prime force for the development of the countryside, the author has conducted a survey of stakeholders, like, tour companies, hotels, locals etc. in Konkan region of Maharashtra state of India to investigate the applicability of Porter¿s Cluster theory. The study hypothesizes that, there exists clusters in Tourism Industry in Konkan and the development of Clusters in Tourism will help to achieve regional economic development of Konkan. To test significant differences with respect to responses of tourists in two districts, level of tourists¿ satisfaction with five parameters, different locations and different sources of tourist attraction, ANOVA test, chi-square test and F test were used for analysis. The study focuses on the five factors of diamond such as, Factor conditions, Demand conditions, Related and Supportive industries, Firm Structure, Strategy and Rivalry among firms, Maharashtra Tourism policies and Chance events. Based on collected data, it is proved that there is sufficient demand for tourism in both Ratnagiri and Sindhudurg districts and it is evident that the Porter¿s diamond theory applies to the growth of Konkan tourism.