Study of profitability of organization of tourism routes (on the example of Sheki-Zagatala Economic Region of Azerbaijan)

Abstract

This paper is devoted to economical substantiation of organization of touristic routes, and relevant activities of tour operators in terms of profitability. Currently, rational use of local natural and man-made recreational resources, as well as successful business activity in tourism can be reached considerably due to effectively-organized touristic routes. The organization of such tours seems efficient for tour operators which may gain more benefit from collective forms of the excursions. However, it is important for a company organizing touristic route to function more effectively and gain real profit with considering primary costs, tax paying and other conditions in tourism market. In this connection, ways of measuring relevant expenditure are investigated in this paper. The study is carried out on the example of Sheki-Zagatala, the advanced tourism region of Azerbaijan Republic in order to substantiate profitability of organizing touristic route in practice.

The research objective of the paper is to find more effective and profitable way of organizing touristic routes and evaluate relevant profitability limit for tour operators. For this purpose, prior measuring, planned measuring, individual calculation, and rent per tour were used as applicable methods. The results of the research show that rent per tour should be based as an effective way of evaluation of profitability, where main and variable expenditures, as well as incomes of a company must be taken into consideration. Meanwhile, the existing and recommended local routes in Sheki- -Zagatala are shown and offered, with the analysis of the local natural and man-made recreational resources. Recommendations on improvement of organization of tours are offered as well.