УДК 338.482

Tourism and innovation. Challenges of the Ecuadorian economy

Клавихо Олалья Карла Хессения – магистрант Высшей школа управления Российского университета дружбы народов имени Патриса Лумумбы.

Гуарангуай Наварро Фабио Леонардо – магистрант Высшей школа управления Российского университета дружбы народов имени Патриса Лумумбы.

Научный руководитель Головин Максим Валерьевич – магистр, старший преподаватель кафедры туризма и сервиса Российского университета дружбы народов имени Патриса Лумумбы.

Abstract: One of the global trends that is presently undergoing steady development is innovation in the tourist sector, which enables the tourism to assume significant roles in the national economy. In a demanding and challenging climate, this paper analyzes the Ecuador's position and innovation policy in regard to tourism activity. Finally, it makes a variety of in-depth studies on factors like tourist product development, quality, and promotion that together with innovation work with a systemic approach.

Keywords: tourism, innovation, economy, competitiveness, development.

In Ecuador, tourism and innovation are part of an economic challenge in full development. Tourism shows great importance in the country's economy, contributing around 4.4% to the Gross Domestic Product (GDP) in 2023 and establishing itself as the third source of non-oil income after shrimp and bananas. In addition, foreign exchange earnings from tourism increased by 70.06% in 2022 compared to 2021, reiterating its economic relevance [12].

Innovation, as the creation of new processes or products in the economy drives competitiveness based on the country's potential, each of the changes are relevant to meet the various challenges of the tourism industry which is becoming increasingly resilient.

Within the tourism sector there is a belief regarding the inclusion of innovative activities, which are not considered indispensable. However, from a global perspective, innovations in tourism are key factors in addressing the needs of current tourists.

The integration of innovation in tourism is a process that enhances the tourist experience. In this sense, the World Tourism Organization recognizes that innovations leave a positive footprint within the tourism activity, especially by driving the use of technologies that modernize the way travelers can plan, explore and share their trips. Business model changes such as the development of information and communication networks offer the opportunity to achieve fundamental market advantages, create loyalty bonds and facilitate destination choice, significantly increasing tourist satisfaction [8].

Organizational transformation and tourism's global approach to innovation uncovers two essential aspects: the tourist's perception and the tour operator's perception.

In this area, tourism activity identifies that the changes generated in the sector are closely related to accommodation, transport, organization of destinations and tourist attractions, in addition to the introduction of new tourism products that seek to make the most of the available resources for an evolution of the sector [1].

For its part, the tour operator is responsible for adapting to these changes, the action plan is based on the diversification of the offer, which includes thematic or personalised tours, as well as the use of technology in the planning and execution processes of tourist programmes in order to cover new markets.

The application of new ICT systems combined with other technologies proposes changes in the organization of companies, which require the implementation of differentiation actions to boost the development of the tourism sector, which has grown despite economic and geopolitical challenges.

Thus, it is necessary to carry out an analysis of the current situation of the relationship between innovation and tourism with respect to the current challenges facing the economy of Ecuador [7].

One of the major drivers of global economic growth is the tourism sector, which is always changing in response to the new demands of its clients and the complexity of the relationships that surround it in a number of domains, including society, culture and finance. As a result, innovation is prevalent throughout the sector.

The change of preferences, and methods of interacting with the environment, together with the advancement of media and technology, have all shaped the growth of the tourism sector throughout history [4].

In contrast to the idea of expansive leisure and entertainment centres, the concept of sustainability had an impact on how people conceptualised tourism activities around the end of the 20th century. But it was the rise of new technology that altered the structure and evolution of tourism.

By expanding the use of technology across the various tourism-related sectors, infrastructure, information and communications technologies contributed to the growth of the industry and allowed new competitors to emerge, stamping their mark on the promotion of travel-related goods and the yearly increase in sales.

In light of this vision, new forms of tourism based on supply and demand are presented as an ensemble of projections in which the design and implementation of innovation processes modify the way in which the tourist space and the tourist are valued. In Ecuador, these projections include the emergence of the network society and revolutionary new ideas in the service industry.

The traveller, who has altered his perspective on how he obtains this kind of service, is currently the primary change agent. The modern traveller is distinct from the traveller of the past, who was more interested in leisure and cultures, and the latter, who is more focused on the variety of services and goods that enable him to live and relive various experiences.

As a result, there is a market for adventure-based tourism products that recreate settings from different historical or futuristic nations. The assembly based on the technologies currently at the centre of the offer and the configuration of the tourist product, which can become increasingly personalised, govern the space in this conception rather than the natural or cultural resources existing in the area.

The real landscape that defines alerts to the existence of a strategic approach to innovation policy, which balances the local and global value of process optimisation while attending to customers, advantages, and capabilities within the market.

Nonetheless, in order to comprehend the extent of the choices that need to be made in this regard for the growth of tourism activities in Ecuador, it is necessary to review certain indicators.

Ecuador in statistics

Table 1. The 10 most competitive destinations in Latin America (According to their positions in the world ranking) [13].

Rank	Country	Rank	Country
19	Mexico	50	Argentina
32	Brazil	52	Chile
41	Costa Rica	55	Colombia
47	Panama	70	Ecuador
49	Peru	73	Dominican Republic

This only reflects the real need to improve Ecuador's positioning in the global market, taking into account that tourism is the third largest source of non-oil income for the country. In terms of international visitor arrivals, Ecuador received 1.4 million visitors in 2023, 16% more than last year, a favourable indicator in the post-pandemic recovery process [6].

The Global Innovation Index 2023 places Ecuador in 104th place and in the regional ranking in 16th place. Neighbouring countries Colombia and Peru are ranked 66th and 76th respectively. This makes even more evident the importance of focusing efforts in this area [10].

Innovation and economy

Within economic, business and social theories, innovation has been a subject of analysis, a term linked to the introduction of modifications to achieve quality, which has become popular. However, the concept is broader than that, because it includes the action of generating, acquiring or creating new technologies and knowledge of different kinds in order to put them into practice.

The technological capacity is essential to achieve economic growth. In terms of the local market or the production unit, it is necessary to propose changes in the product and in internal processes related to the areas of marketing and organisation, the development of new behaviours implies investment, which in a certain period of time consolidate a competitive advantage.

In general, innovation is a phenomenon that within the tourism activity becomes a key tool that allows for adaptation within a constantly changing environment by introducing significant improvements. Innovation processes can be applied according to the following scenarios:

Innovation focused on the improvement of existing or complementary products or services, because tourism is a service- and experience-intensive industry.
The most recent innovations include the use of software and interconnected networks such as travel platforms and SEO management, which solve problems of direct communication with the customer.
Changes derived from innovation can affect internal and external aspects of an organization, such as motivation and productivity, production and marketing processes. Today, the importance of environmental innovation, involving the creation of systems to reduce consumption, maximise energy efficiency and promote environmental awareness, has become the basis of sustainable tourism, introducing conscious measures that encourage environmentally balanced tourism practices.
Promotion and marketing can also involve innovation in the tourism sector, including the positioning of new products, the creation of a new identity or image and the introduction of changes in promotion and marketing processes.

In addition, tourism market positioning efforts can lead to innovative marketing approaches. For example, the redesign of the country brand of Ecuador and its exposure at international fairs has been an excellent strategy.

In general, innovation has the potential to create new markets, improve existing products and services and increase the performance and reputation of organizations in the tourism sector. The World Tourism Organisation (UNWTO) highlights the value of innovation not only in terms of tangible and intangible benefits to tourism stakeholders, but also in terms of enhancing tourism experiences [11].

The success of innovation requires motivation to introduce it, available information on its potential improvements and knowledge of the obstacles that may arise during its implementation [1].

In this sense, Ecuador promotes principles of innovation and accessibility focused on digital transformation as a tool with a positive impact on the tourism sector. The initiative seeks to strengthen tourism activity and its reactivation in the face of post-pandemic challenges. Among the actions that will be implemented according to PLANDETUR 2030 are the diversification of the supply of tourism products, the management of quality as a competitive advantage and the attraction of investment to open a market capable of meeting consumer expectations [5].

In 2022, domestic travel expenditure accounted for 34.1% (USD 1.2 bn) of total internal spending, while visitor exports accounted for 65.9% (USD 2.4 bn) [12]. If it is able to implement initiatives that support knowledge, entrepreneurship, and human resource training based on an improved tourist offer that satisfies the diverse demands of the tourist, the country will be able to increase its contribution to the national economy and its profitability that results from a greater sense of cohesion and notoriety of innovations.

Tourism innovation challenges

Today, the process of creating tourism products fosters innovation based on communication technologies, allows for product customisation, and has made it possible to open up new job opportunities locally and support initiatives to improve infrastructure and start new businesses.

This kind of innovation has also had an impact on the promotion of cultural interchange and public understanding of the importance of protecting artistic, archaeological, and cultural assets.

In order to instill in future generations a respect for natural and cultural heritage, this projection has encouraged the development of policies and strategies that will change the way that tourists view folklore, cultural output, and traditional handicrafts.

In terms of the environment, innovation that supports the growth of sustainable tourism includes suggestions that enable maximising the advantages of nearby resources, maintaining cultural integrity, and protecting nature. In the case of Ecuador, rural and community-based tourism are modalities with great development potential and benefits for the locality.

In order to achieve a wide and consensual collaboration of the ideas that are required to include natural resources and cultural assets as attractions in the tourism product, it involves an innovative orientation of techniques to achieve the informed participation of all agents.

In this effort, innovation in the travel and tourism industry is defining the standards for competitiveness and leaving its imprint on markets, goods, and the process of developing the organization's internal and external relationships.

These concepts serve as the foundation for the creative strategy that directs the growth of the tourism business. These ideas can certainly be represented in the tourism development index, whose trend reflects a growth in the main economies, while Ecuador shows a decrease.

Table 2. World country ranking according to the Tourism and Travel Development Index for 2021 [13].

Rank	Economy	Score
1	Japan	5.2
2	United States	5.2
3	Spain	5.2
4	France	5.1
5	Germany	5.1
73	Ecuador	3.8

Note: Overall scores range from 1 (worst) to 7 (best).

In general, the integration of ICT directly affects how the country's tourism industry operates. This is because:

It improves client information in terms of both quantity and quality.
It expands the potential for marketing initiatives meant to draw in new clients and foster a sense of loyalty in existing ones.
It removes the geographical restrictions that impede participation in an international market.
It increases the range of goods and services available to its customers.

But, it's also important to take into account the downsides of ICT-based technological innovation for tourism management, such as the expensive initial outlay (purchase of technology platforms).

Innovation in services and tourism

Tourism is a sector that is conditioned to innovate constantly, due to the fact that the services it provides must transmit different emotions to tourists, otherwise the activities create routine patterns that cease to capture the target public and decrease the preference of destinations within a market that is becoming more competitive every day [2].

Despite the importance of innovation in the tourism sector, it has often been overlooked due to the focus on innovation in manufacturing and its radical impact on economic growth and consequently, the impact of these small-scale innovations in the tourism industry has been underestimated [3].

Currently, ICT-based innovation has infiltrated all aspects of the tourism sector, from inspiring people to travel through online experiences, to providing information on destinations, transport, accommodation options and activities.

Ecuador has considered all aspects in its Tourism Plan 2030, and one of its priorities is to help tourist destinations incorporate technology throughout the tourist's travel cycle, as well as efforts to optimise comprehensive connectivity (digital coverage, transport and infrastructure) through policies that link the country with the main tourist-sending markets.

In this way, one of the long-term objectives is to digitise destinations and turn them into smart destinations; however, this innovative model is articulated with the necessary measures to generate environment for the development of the tourism system [9]. The strategic approach is framed in specific inter-institutional management policies based on the promotion of sustainable tourism, competitive improvement, dynamic communication operations and lines of public and private sector financing [5].

At this point it is important to highlight one of the most relevant current examples in the region, the Community Tourism Innovation Challenge: Colombia. It is a meeting dedicated to the recovery of the sector through innovation in technology, products and marketing in local communities that offer tourism services. This initiative is part of UN Tourism's Green Projects programme, which seeks to strengthen sustainable development in the sector.

In conclusion, the growing significance of tourism in the economy makes visible the need for innovation in this field and the provision of new value-added services to consumers, through the application of emerging technology.

The opportunities brought about by ICT innovation also come with drawbacks. Nevertheless, they present a challenge to investment continuity and sustainability because new technologies appear daily that aim to satisfy tourist demands by diversifying the supply of tourism products and services.

Types of tourism such as rural and community-based tourism can be considered as an innovation strategy for the development of the sector in the country and a basis for international tourism promotion.

The evidence brings up new discussions about how research and innovation at national, local, and enterprise level should be the basis criteria for tourism planning in Ecuador.

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