Public Policies and Development of the Tourism Industry in the Aegean Region

Evidence in developing countries, especially in the Mediterranean basin, shows that the tourism sector has an important role in regional industrialization and economic growth [Tosun, C., Timothy, D. Ozturk, Y. (2003) Tourism growth, national development, regional inequality in Turkey, Journal of Sustainable Tourism, 11(2-3), pp. 133-161]. Turkey has been successful in developing resort areas and attracting large number of tourists. The tourism sector is a highpoint industry and a crucial public policy area for the Mediterranean and Aegean Regions. The article has two aims: (1) to determine the significance of the tourism industry in the Aegean Region in Turkey by looking at specialization patterns in economic activities across the country and to identify the provinces of the region within which tourism is a highpoint industry and (2) to explore whether public investment in tourism in the Aegean Region has an impact on the value added created by the tourism industry. A comparison of regional structures of the regions reveals that 30% of tourism licensed accommodation establishments are located in the Aegean Region. The results from the location quotient estimates for 1995 and 2001 reveal that the Aegean Region is highly specialized in the tourism industry, particularly when the spatial distribution of the hotels is observed. Value added created by hotels of the Aegean Region is higher than the country average as well. In addition, the econometric model shows that the regional value added created by the tourism sector between 1995 and 2001 is significantly enhanced by public policies that focus on the sector