COMPETITIVENESS OF TOURISM INDUSTRY IN KAZAKHSTAN - Tourism in Central Asia: Cultural Potential and Challenges - page 22

rules and regulations affecting competition and demand, and it affects the
cluster presence through, for example, recruiting companies from other lo-
cations to make investments (Porter, 1998). The government is an impor-
tant factor in shaping the business environment as well as the companies,
universities, and many other institutions. The government's role in cluster
initiatives is of facilitator and participant. The most successful cluster ini-
tiatives are public-private partnerships. Effective cluster-based develop-
ment needs to be based on an assessment of the most critical barriers that
hold back productivity improvements and innovation (Porter, 2005).

METHODOLOGY

HYPOTHESES

Based on a review of the literature on the research topic the following
hypotheses are formulated and tested:
1.

There is a positive relationship between competitiveness of the
firm, its age, the propensity of the firm to innovate and the number
of cluster actors in its network.

There is a positive trend in the international competitiveness of
Kazakhstan.

2.

RESEARCH METHODS

The research adopts a mixed methods approach based on a combination
of qualitative and quantitative approaches. Data sources include interna-
tional and national tourism statistical data, official state documents, mass
media publications and Internet. Empirical data on the competitiveness
of tourism companies were collected through a survey of tourist and trav-
el organizations located in the city of Almaty. The city of Almaty—the
former capital of the Republic of Kazakhstan—is the biggest city in the
country and has a relatively good infrastructure and attractions meeting
different tastes and purposes of tourists. Almaty is the commercial center
of Kazakhstan, providing about 20% of Kazakhstan's GDP. The city has a
relatively good infrastructure and attractions meeting different tastes and
purposes of tourists as well as flight connections to most major tourism
destinations. About 50% of all travel and tourism organizations are located