EVALUATING THE IMPACT OF PLACE BRANDING ON DOMESTIC TOURISM DEVELOPMENT IN THE CONSTITUENT ENTITIES OF RUSSIA
R.M. Melnikov1, P.Yu. Makarov2
1Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia
2Vladimir Russian Presidential Academy of National Economy and Public Administration, Vladimir, Russia
Keywords: place branding, place brand, tourism, difference-in-differences method, place branding effectiveness, place marketing, tourist attractiveness, place development
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 constituent entities. 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 in the number of tourists attracted by 15.7%, and the level of income from serving them escalates with a more dynamic brand promotion policy. However, such positive effects are observable mostly in the early years of place branding initiatives. Achieving long-term goals to raise the income of the region’s tourism and recreation sector, therefore, requires not only place branding but also more capital-intensive measures to develop tourist infrastructure, create new facilities, and hold events that could be an incentive to visit the region.
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