What is Porter’s Diamond Model

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.