The paper aligns two lines of research that tend to develop separately in tourism studies: new institutional economics (NIE) and theory of experience production. The purpose of this study is to gain a better understanding of the institutional restraints on tourism growth in developing and transit countries.
The study is based on a qualitative research methodology. A summary of key literature is presented alongside an in-depth analysis of the possibilities for NIE application in tourism research.
The notion of institutional structure of experience production is defined as an institutional arrangement supporting or inhibiting experience production. It is proposed as a promising framework for a more intensive NIE methodology application to tourism research. This framework is applied to tourist experience production stages, and some specific institutions accounting for positive experience creation are revealed for key experience production stages.
This paper is limited in that it offers a conceptual analysis, though directions for further empirical research are proposed.
The paper is a first attempt at emphasizing impacts of some specific institutions on positive tourist experience production and it stresses their importance to the international tourism industry as it expands in developing and transit countries.
