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National Cluster Programme - support to the Tourism Cluster
Published on 27 September 2018
Latvia
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
The Program supports the creation of tourism clusters which is rather unique in national cluster programs in EU. It’s a successful form of tourism destination management and contributes to the growth of the competitiveness of destination and the tourism entrepreneurs operating there. The Program contains special conditions for development of tourism clusters. Main cluster activities supported by the program are promotion of export and innovation, creation of new products, cluster internationalization, integration of RIS3, cluster excellency, etc.
Cluster development strategy for tourist destinations is a prerequisite to enter in the project competition for cluster program support.
Project applicant (association or foundation) must meet a number of criteria: network should include at least 20 cluster members –SMEs. For critical mass of development, the turnover of these members should be over 10 million EUR in a year and export volume at least 2 million EUR. Cluster network should ensure growing number of cluster participants in the following years. The cluster members must ensure compliance with volume of exports. Also, at least two R&D organizations must be involved in the project as partners. Clusters may be formed also as Interdisciplinary cooperation networks. Funding available for one cluster: € 415,000, project implementation lasts for 4 years. The funding intensity is 85%.
Cluster development strategy for tourist destinations is a prerequisite to enter in the project competition for cluster program support.
Project applicant (association or foundation) must meet a number of criteria: network should include at least 20 cluster members –SMEs. For critical mass of development, the turnover of these members should be over 10 million EUR in a year and export volume at least 2 million EUR. Cluster network should ensure growing number of cluster participants in the following years. The cluster members must ensure compliance with volume of exports. Also, at least two R&D organizations must be involved in the project as partners. Clusters may be formed also as Interdisciplinary cooperation networks. Funding available for one cluster: € 415,000, project implementation lasts for 4 years. The funding intensity is 85%.
Resources needed
Cluster program is financed by the ERDF fund, total budget is 6,2 mil. EUR. It is as an open call during which associations or other legal entities submit their cluster project proposals. According to the criteria and priorities put up by the Ministry of Economics most relevant projects are selected
Evidence of success
All activities together resulted in guest increase of 33,18% in 2018 compared to 2012 of which 38.32% are foreign tourist increase. The ratio of domestic and foreign tourists is currently 60/40, contrary to the situation in 2012 with ratio 63/37. The number of application users increased by 112% in 2019 compared to 2018.
Potential for learning or transfer
Cluster initiatives are a new measure among the SME support instruments in Latvia and are eager to find out the best practices to achieve the best results and highest impact on the economy through smart investment.
Supporting cluster initiatives is an important tool to boost the cooperation between different actors.
Cluster development and smart specialization are closely related notions, since successful cluster emergence and growth constitute regional specialization. Consequently, cluster policy today more and more follows a systematic approach. It shall be understood as an important element of regional development policy.
Furthermore, when turning cluster policies into practice it has to be taken into account that each region has its unique set of economic opportunities and challenges. Thus, cluster policies need to be aligned with the local conditions, and support programmes have to be implemented in ways that are consistent with the realities of the location.
Supporting cluster initiatives is an important tool to boost the cooperation between different actors.
Cluster development and smart specialization are closely related notions, since successful cluster emergence and growth constitute regional specialization. Consequently, cluster policy today more and more follows a systematic approach. It shall be understood as an important element of regional development policy.
Furthermore, when turning cluster policies into practice it has to be taken into account that each region has its unique set of economic opportunities and challenges. Thus, cluster policies need to be aligned with the local conditions, and support programmes have to be implemented in ways that are consistent with the realities of the location.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Ministry of Economics
Latvia
Latvija
Contact
Project Manager