New Challenges for the Tourism Sector in the Algarve Region Based on Evaluation of the Circular Economy

New Challenges for the Tourism Sector in the Algarve Region Based on Evaluation of the Circular Economy

DOI: 10.4018/978-1-5225-9936-4.ch010
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During recent years, the increase in tourism in the Algarve has shown an increase in changes in supply for consumers. This means that the tourism industry has started to change attitudes towards an ecosystem based on consumer behaviour and positive externalities. Consequently, the supply changes based on the circular economy (CE) have become one of the main issues for sustainable tourism in the Algarve. The propose is to analyse the relationship between the CE and the tourism industry based on stakeholder opinions and evaluate the tourism business model founded on a new assumption of positive externalities from the tourism sector. This chapter discusses the tourism sector and evaluation of the circular economy based on Porter's diamond model methodology. This chapter concludes that the tourism industry in the Algarve has started to show interest in changing attitudes to an efficient and smart perception of the CE. This investigation will give other sectors the opportunity to discuss the CE process based on a new supply of and innovation in products.
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The objective of this study is to analyse the influence of the circular economy in tourism within the Algarve region. This section will present how the tourism sector in the Algarve has been influenced by the circular economy based on Porter’s Diamond Model. The importance of this research will allow an understanding of the relationship with stakeholders based on a circular economy process and the competitiveness of the sector for changing to a non-linear model.

Key Terms in this Chapter

Circular Economy (CE): A closed system, the outputs of all parts of the system is linked to the inputs of other parts. There are no inputs from outside and no outputs to the outside; indeed, there is no outside at all. A new concept of re-use, re-cycling and re-defining where a new product is created which is needed by consumers. It is a non-linear concept of a relationship between consumers and producers. The circular economy defines new capacity for production, using raw materials and others in order to create a new value in products and a new value chain. There is a maximization of product utility by consumers. Nothing is lost, but transformed in order to create a necessity in consumers/organisations.

Rural Tourism: Tourism developed in rural areas characterized by a multiplicity of small- scale, independent developers and diffuse developers.

Tourism: Economic activity where individuals stay more than 24 hours in another place different from their residence.

Porter’s Diamond Model: An economic model where the relationship between stakeholders is analysed. The objective is to study the sector’s competitiveness based on factor conditions, demand conditions, related and supporting industries and marketing strategy.

Green Label (Ecolabel): An ecolabel is a voluntary label that helps to identify products and services that have reduced their environmental impact throughout their entire life cycle. It allows consumers to make informed choices and rewards producers who make efforts to create sustainable products.

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