• Vladimir Kitanov
  • Tanja Angelkova Petkova


Innovation is an important factor of growth and development, both for individual companies and for the economy as a whole. Innovation can only thrive in sound economic policy accompanied by strong competition, so a free and open economic market is considered to be the key to success when it comes to implementing innovative ideas. When it comes to competition, innovation most often occurs in the oligopolistic market, and least in monopoly because monopolists have no reason to make changes or any innovations. Market monopoly and oligopoly can also occur in the tourism sector. The uniqueness of a particular destination, e.g. uniqueness in terms of location, can lead to monopoly competition. Such destinations can create a recognizable brand for which tourists are willing to pay higher prices due to the uniqueness of the destination and high quality services. In contrast, oligopolistic competition leads to standardized products. Airlines, hotel chains and car rental companies must constantly innovate in order to be able to offer quality products at affordable prices, while remaining competitive in the market.
Keywords: innovation, tourism, hospitality, economic growth.
JEL classification: O3, Z32, Z39.