CC BY
1
UDC 338.48-6:502/504 EDN: CNDCGL DOI: 10.5281/zenodo.12604912
Svetlana I. MISHULINA
Federal Research Center the Subtropical Scientific Center of the Russian Academy of Sciences
(Sochi, Krasnodar Krai, Russia) PhD in Economics; e-mail: MISHulSV@yandex.ru
CLOSED-LOOP ECONOMY INFRASTRUCTURE AND ITS ROLE IN CIRCULAR TRANSFORMATION OF TOURISM
Abstract. The change in the development paradigm and the transition from a linear to a circular model of the economy has led to the relevant research growth, including those in tourism. But their number remains limited, leaving open some theoretical, methodological and practical issues and slowing down the processes of tourism circular transformation. Researchers recognize the lack of infrastructure that ensures the closed-loop economy (CLE) functioning as one of the systemic barriers, which determine the need for in-depth study of circular infrastructure and its functions within a new development model. The research is aimed at study the infrastructure essence of CLE in tourism. During research, existing approaches in domestic and foreign literature to the definition of tourist supporting infrastructure were analyzed, its role in the circular transformation of tourism was identified, a definition of the tourism circular infrastructure was proposed, its functions and formation barriers were identified. The scientific value of the research is determined by the need for further development of the CLE infrastructure theory and its adaptation to the tourist industry. The research results can be useful in forming strategies for the innovative development of the tourist industry and tourist destinations at various management levels.
The study was funded by the state assignment research of FRC SSC RAS FGRW-2022-0001, project No. 122041900105-5
Keywords: tourism, tourism supporting infrastructure, closed-loop economy, closed-loop economy infrastructure
Citation: Mishulina, S. I. (2024). Closed-loop economy infrastructure and its role in circular transformation of tourism. Servis v Rossii i za rubezhom [Services in Russia and Abroad], 18(2), 16-28. doi: 10.5281/ze-nodo.12604912.
Article History
Received 22 April 2024 Accepted 10 June 2024
Disclosure statement
No potential conflict of interest was reported by the author(s).
© 2024 the Author(s)
This work is licensed under the Creative Commons Attribution 4.0 International (CC BY-SA 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by-sa/4.0/
УДК 338.48-6:502/504 EDN: CNDCGL DOI: 10.5281/zenodo.12604912
МИШУЛИНА Светлана Ивановна
Институт пространственного развития регионов Федерального исследовательского центра «Субтропический научный центр Российской академии наук» (Сочи, Краснодарский край, РФ) кандидат экономических наук, ведущий научный сотрудник; e-mail: MISHulSV@yandex.ru)
ИНФРАСТРУКТУРА ЭКОНОМИКИ ЗАМКНУТОГО ЦИКЛА И ЕЁ РОЛЬ В ЦИРКУЛЯРНОЙ ТРАНСФОРМАЦИИ ТУРИЗМА
Актуальность смены парадигмы развития и перехода от линейной к циркулярной модели экономики обусловила рост соответствующих исследований, в том числе в сфере туризма, хотя их количество до сих пор остаётся крайне ограниченным, оставляя открытым целый ряд теоретико-методологических и практических вопросов и замедляя процессы циркулярной трансформации туризма. Одним из системных барьеров, препятствующих циркулярному переходу, исследователи признают отсутствие инфраструктуры, обеспечивающей функционирование экономики замкнутого цикла (ЭЗЦ), что обусловливает необходимость углублённых исследований особенностей циркулярной инфраструктуры и её функций в новой модели развития. Цель работы: исследование сущности инфраструктуры ЭЗЦ туризма. В ходе работы были проанализированы существующие в отечественной и зарубежной литературе подходы к определению туристской обеспечивающей инфраструктуры, выявлению её роли в циркулярной трансформации туризма, предложено определение циркулярной инфраструктуры ЭЗЦ туризма, идентифицированы её функции и барьеры формирования. Научная значимость исследования определяется необходимостью дальнейшего развития теории инфра-структурирования ЭЗЦ и её адаптации к сфере туризма. Результаты исследования могут быть полезными при формировании стратегий инновационного развития индустрии туризма и туристских дестинаций различных уровней управления.
Публикация подготовлена в рамках реализации государственного задания ФИЦ СНЦ РАН FGRW-2022-0001, № госрегистрации 122041900105-5
Ключевые слова: туризм, обеспечивающая инфраструктура туризма, экономика замкнутого цикла, инфраструктура экономики замкнутого цикла
Для цитирования: Мишулина С.И. Инфраструктура экономики замкнутого цикла и её роль в циркулярной трансформации туризма // Сервис в России и за рубежом. 2024. Т.18. №2. С. 16-28. DOI: 10.5281/zenodo.12604912.
Дата поступления в редакцию: 22 апреля 2024 г. Дата утверждения в печать: 10 июня 2024 г.
Introduction
The need to implement the Russian Federation strategic plans for the domestic tourism development, its transformation into an industry of economic specialization in 74 constituent entities of the Russian Federation1 explains the attention that has been paid in recent years to investment projects for the development of tourism supporting infrastructure. The level of infrastructure development determines production and consumption possibilities, as well as composition, structure, complexity, and attractiveness of the tourist product, which includes many complementary goods and services, affects tourism investment attractiveness, its development level and competitiveness.
The aggravation of environmental and climate issues, including those related to the infrastructure functioning, significantly complicates the development processes and investment projects implementation, tightening the quality requirements for infrastructure facilities, transforming their functions, increasing the implementation cost and risks.
In turn, the implementation of national, regional, and sectoral plans for the transition to a closed-loop economy model is faced with a lack of infrastructure that meets its goals, objectives, and principles [19].
In tourism, characterized by a complex set of supply chains that expand as a result of waste transformation into resources, the presence of effective circular infrastructure is of particular relevance. The existing tourism supporting infrastructure does not meet the goals and objectives of sustainable development and creates barriers to circular economy formation. The search for creative alternative solutions is experimental and
niche in nature, because contradicts the linear logic of the economy and infrastructure functioning as its supporting sector.
Awareness of the problem significance, unfortunately, is not accompanied by an adequate increase in research. There are a few works on CLE in tourism [18]. Available research concerns, as a rule, the circular transformation of tourism individual sectors [10]. Russian scientists noted the leading role of infrastructure in the transition to the CLE model [5], but pay almost no attention to determining the essence, structure, and functions of the CLE infrastructure.
The relevance of conceptual framework formation and tourism CLE2 infrustructuring concept development is determined, in addition to the above, by the lack of consensus among researchers and inconsistency of regulatory legal acts in the definition of tourist supporting infrastructure. The theory underdevelopment in practice prevents the identification of investment priority areas, contributes to the unsystematic and fragmented nature of measures aimed at the CLE infrastructure development. The ongoing infrastructure modernization projects are implemented within the framework of linear principles, preventing the CLE formation.
The research is aimed at determining the essence of the tourism CLE infrastructure. This required analysis of existing approaches in domestic and foreign literature to defining tourist support infrastructure and identifying its role in the tourism circular transformation; determination of the tourism CLE infrastructure; its functions and barriers identification.
Theory
Analysis of the approaches existing in the domestic scientific literature allows us to
1 The Russian Federation Spatial Development Strategy for the period till 2025 defines tourism as an industry of economic specialization for 74 of 85 RF regions (as of June 25, 2022). URL: https://docs.cntd.ru/document/552378463
2 The concept of CLE infrastructuring is a concept based on a systemic approach to the CLE infrastructure development, ensured by the broad stakeholders participation in the mutual design of both infrastructure facilities through which the resources circulate (hard infrastructure) and in managing the processes of the resources circular movement - soft infrastructure, promoting flexibility in decision making. Involving stakeholders, according to the authors, makes it possible to determine infrastructuring goals and identify new infrastructure functions based on analysis of multiple agents issues and capabilities. The main message of the concept is to consider the flows generated by agents not as waste, but as resources that have value for other agents [14].
conclude that there is no consensus in the definition of concepts for tourist infrastructure and tourism infrastructure. Sometimes they are used interchangeably. Some authors insist on the illegality of their authentication.
As fairly noted by L.B-Zh. Maksanova and S.Zh. Dagdanova, depending on the objectives being followed, researchers consider infrastructure as a set of enterprises..., as a complex of existing structures and networks..., as a system of objects and organizations that ensure the tourism functioning [1]
М.А. Morozov and N.S. Morozova propose to treat tourism infrastructure as a set of interconnected structures, including material and intangible components that support tourist activities [3]. The authors do not disclose the content they put into the concept of tourist activity (whether it is the activity of tourism industry enterprises or tourists, or both), which in our opinion significantly affects the composition and mobility of infrastructure boundaries.
Considering the satisfaction of tourists needs as the ultimate goal of the tourism industry functioning, some authors define tourism infrastructure as a complex material-economic, historical-cultural and social complex of objects intended for organizing medical, health-improving, recreational, educational activities in order to satisfy the diverse needs of tourists [4, p.91], at the same time noting that the infrastructure composition depends on the implementation of the specific type of tourism for which the necessary environment is formed [Ibid].
In our opinion, differences in approaches are determined firstly by a narrow (hospitality industry) or broad (the entire set of enterprises and activities involved in the production of a complex tourist product) understanding of the tourism industry, and secondly, by differences in the definition of functional infrastructure purpose. In some cases, it is defined as providing conditions for tourism industry enterprises functioning, in others - as ensuring access to tourist resources and the possibilities of their effective use, or as meeting the tourists needs. This variety of
approaches is explained by the complex composition and characteristics of the tourist product and its production and consumption processes (the impossibility of their separation across space and time, the inseparability of services from tourist resources, consumer involvement in the production process, etc.), as well as differences in the level of systemic infrastructure perception. In our opinion, definitions using general terms "aggregate", "set", "complex", etc. do not fully reflect the infrastructure systemic functions, which in practice leads to the planning and management of infrastructure elements as separate structures, explains the fragmentation and inconsistency of strategies and programs for their development, and is a serious barrier to the transition to the CLE model. From this point of view, the approach to defining infrastructure as a system is more legitimate and requires appropriate adjustment of the methodology for infrastructure planning and management.
Despite the variety of proposed definitions, the authors are unanimous that, firstly, the infrastructure presence and maturity affect the investment attractiveness of the tourism industry, its level of development and competitiveness. Secondly, the composition of the tourist product, which includes many complementary goods and services, determines the infrastructure complexity that provides conditions for its production and consumption, the blurring of its boundaries, and may vary from destination to destination depending on the territory specialization and aggregate of natural and recreational resources. The opposite statement is also fair: The infrastructure development determines the possibilities for the tourist product production and diversification.
An important feature of the tourist infrastructure, which makes it difficult to determine its content and functions as noted by a number of authors [2], is its multi-functionality, or the fact that a significant part of the tourism infrastructure structural elements simultaneously provides services to both entities of the tourism industry and other economic agents that do not have direct connection with the processes of the tourist
products production and consumption. This applies to such infrastructure elements as road and transport infrastructure, public catering, the media, services involved in law enforcement, compliance with sanitary standards, etc. These elements ensure not only and not so much the tourism industry functioning, but the work of other sectors and life conditions of the population. At the same time, on the one hand, the set of elements and the technological level for this part of the infrastructure determine the possibilities for the tourism development (a vivid example is the infrastructure created within the 2014 Olympics project), and on the other hand, tourism has a positive effect (stimulates development and investments in infrastructure) and negative impacts as well (uneven loads on infrastructure due to the seasonal tourist flows, excessive loads in conditions of overtourism, etc.).
Some authors believe that approaches used by legislation to define tourism infrastructure inappropriately narrow its boundaries, limiting them only to material elements, while the tourism functioning involves the widespread use of intangible assets, such as, for example, historical and cultural heritage, institutions, and management systems and etc., and requires development of appropriate infrastructure elements [3].
The complexity of the tourism infrastructure composition and functionality, their dependence on the tourism types being studied and the tourist product characteristics explain the variety of infrastructure elements classifications proposed by researchers. Without going deeper into the analysis of approaches and differences, and also taking into account the goals and objectives of this research, we will, although with reservations, proceed from the basic classification used by Russian legislation, according to which tourist infrastructure is an integral part of the tourism industry and is a complex of existing structures and networks used for industrial, social and
recreational purposes, which ensures the tourism industry functioning.3 To our opinion, the term "complex" in this definition should be replaced with "system", which better reflects the systemic nature of the infrastructure sector.
Federal Law No. 132-FZ of November 24, 1996 "On the Fundamentals of Tourist Activities in the Russian Federation" does not contain a definition of tourism infrastructure. Unfortunately, it is not included in the new draft of the law as well. At the same time, the growing understanding of the infrastructure role in achieving the strategic goals of the tourism development in the Russian Federation led to the inclusion of this concept in regulations, strategies and programs for the development of domestic and inbound tourism adopted in recent years.
In order to highlight functionally different parts of tourism infrastructure, legislation uses the concepts of tourist infrastructure and tourist supporting infrastructure, which makes it possible to determine the difference between tourist infrastructure and tourism infrastructure at the legislative level. The second is broader due to the inclusion of tourist supporting infrastructure.
According to the general provisions of the Strategy for the Development of Tourism in the Russian Federation for the period until 2035, tourist infrastructure includes collective accommodation facilities, public catering facilities, tourist display and visiting facilities, roadside service facilities, retail facilities and other facilities related to organizations operating in accordance with the types of the All-Russian Classifier of Economic Activities Types related to the collective classification types for the "Tourism" economic activities3.
Assessing the state of tourist infrastructure, Rostourism notes that 40% of the country's collective accommodation facilities require recon-struction.4 Considering that private investments are its main development source, Rostourism management sees the issue solution in the
3 Strategy for the Development of Tourism in the Russian Federation for the period until 2035. Approved by order of the Government of the Russian Federation dated September 20, 2019. No 2129-r. URL: https://garant.ru/ products/ipo/prime/doc/72661648/?ysclid=lpjs0r44km575121754
4 RST: About 40% of hotels in Russia require renovation. URL: https://tourism.interfax.ru/ru/news/articles/102328/
implementation of the Program for Preferential Loans, noting, however, the urgent issue of developing infrastructure elements that are "difficult" for private investors and the need for state support. Tourist infrastructure modernization on the principles of closed-loop economy (CLE) involves the rapid development of supporting circular infrastructure.
Tourist supporting infrastructure - objects necessary for the tourist infrastructure functioning in tourist territories, including power supply, gas supply, heat supply, water supply, sewerage, communication networks, dredging and beaching, coast protection, beach-retaining structures, improvement facilities for public urban areas, wastewater treatment plants, as well as connections to them3.
In connection with the tourism development in the regions of Russia and the intensification of activities for the implementation of infrastructure investment projects in order to protect capital investments, Russian legislation has introduced the concept of accompanying infrastructure, which means objects of transport, energy, utilities, social, digital infrastructure, used both for the purpose of implementing an investment project, and other purposes for which the organization implementing the project incurred costs associated with their creation (construction) or reconstruction and (or) modernization, provided that these objects are in state (municipal) ownership or are subject to transfer by the organization implementing the project into state (municipal) ownership, or into the ownership of a state-regulated organization5. The same law gives an interpretation of the supporting infrastructure different from those provided in the Tourism Development Strategy, including objects of transport, energy, utilities, social, digital infrastructure, used
exclusively for the purpose of implementing an investment project and not being objects of related infrastructure5, which indicates the issues in harmonizing various regulations.
Another example of the inconsistency between legislative acts and issues for conceptual framework formation of tourism circular infrastructure within CLE is the adoption of GOST R 70583-2022 at the end of 2022, which defines the tourist infrastructure of ecological tourism as a set of interconnected production, service, management structures and tourist resources that provide accommodation and life activities and the organization of educational leisure and outdoor recreation for participants in tourist groups, ensuring the preservation of the environment6. This definition not only confuses the concepts separated in Strategy 2035, but also significantly expands the boundaries of infrastructure by including tourist resources and other elements, while maintaining the approach to infrastructure not as a system, but as a set of structures and resources.
Federal strategic planning documents (including tourism planning) highlight the main infrastructure, which is important in the spatial development of tourism, including transport and energy infrastructure facilities of federal and interregional significance, the development of which contributes to the formation of a competitive national tourist product and the implementation of strategic plans for the national tourist routes construction3. Essentially, the backbone infrastructure is a part of the supporting infrastructure that performs national and interregional functions, and on the condition of which national security and the systemic balance of the country's spatial development depend. Its development is performed in accordance with national comprehensive plans for the development of main
5 Federal Law "On the Protection and Encouragement of Investments in the Russian Federation" dated 04.01.2020 No 69-FZ (as amended by Federal Law dated 07.02.2021 No 344-FZ https://www.consultant.ru/document/cons_doc_LAW_349045 (reference date 27.09.2023).
6 GOST R 70583-2022 National Standard of the Russian Federation: Tourism and Related Services. Environmental Tourism Requirements for Tourist Infrastructure. Approved and put into effect by the Order of the Federal Agency for Technical Regulation and Metrology dated December 29, 2022. No 1699-st. Effective date 2023.06.30. URL: https://base.gar-ant.ru/406994150/?ysclid=lq6t9ahidq696014399
infrastructure.7
Analysis of the definitions used by Russian legislation allows us to conclude that tourist supporting infrastructure is part of the infrastructure common to tourism and other types of activities, and its development is determined by the goals and objectives of regional or municipal socio-economic systems development. The economy transition to the CLE model requires a serious transformation of the infrastructure, its element-by-element composition and functions. Depending on the choice of development scenario type (advanced, synchronous, lagging), the supporting infrastructure can either stimulate/accelerate tourism transition to the CLE model or slow it down.
Tourism CLE infrastructure: essence and functions The expanding practice of applying the circular economy principles in the practical activities of tourist sector entities indicates the fundamental possibility for transitioning tourism to the CE model [13]. This practice, however, cannot be considered CLE as long as it is implemented within individual companies, even if closed resource chains are created (for example, water reuse). CLE involves the creation and systemic functioning of closed production and consumer chains at the micro, meso- and macro-levels [15]. The micro level includes companies circular business models and consumer behavior patterns. Meso-level - intra-industry integration, supply chains, networks, and clusters. The macro level involves various industries and activities integration, closed chains for resources and products flows creation at the level of a tourist destination, city, region, state, society, a wide range of stakeholders involvement, partnerships, and network structures creation for the CLE implementation.
Transition to the CLE principles fundamentally changes the concepts of resources, products,
and waste. All results of activity (including waste) are considered from the point of view of their possible transformation into marketable products and further (repeated, multiple) use as resources of the same or other production processes or as useful consumer goods, which is difficult to implement without an infrastructure that ensures free overflow and innovative transformation of all used primary and secondary resources types. Effective implementation of circular business models and circular models of tourist products consumption, on the one hand, is determined by the circular supporting infrastructure development, and on the other hand, stimulates its circular innovative transformation.
In our opinion, currently there are two complementary approaches to determining the essence of infrastructure circular transformation in the scientific literature. The first is based on the need for the infrastructure objects and networks (circular infrastructure) circular transformation based on the CLE principles [9]. It assumes the infrastructure sustainability at all stages of its life cycle: optimization of the resources use in production, the possibility of reusing infrastructure elements and components, minimizing production and operational waste, closing the production and operation chains. The approach implementation requires the widespread use of technological, organizational, and economic innovations that ensure an extension of the infrastructure elements life cycle, an increase in their economic value and socio-ecological safety [20].
The second is based on the transformation of infrastructure functions in the CLE and involves a corresponding transformation of its element-by-element composition and purpose [7]. The basic principle of building the infrastructure for circularity is a change in approaches to the assessment and use of all material (and intangible)
7 A comprehensive plan for the modernization and expansion of the main infrastructure for the period until 2024 was developed in accordance with Decree of the President of Russia of May 7, 2018 No. 204 "On the National Goals and Strategic Development Objectives of the Russian Federation for the period until 2024." Approved by order of September 30, 2018 No. 2101-r. The plan includes 11 federal projects. Nine projects are aimed at transport infrastructure modernization and expansion, two federal projects are aimed at energy infrastructure modernization and expansion. URL: http://govern-ment.ru/docs/34297/
flows, expanding the resources concept by including all forms and types of waste, their transformation into valuable resources for other entities. Such infrastructure elements can be audit companies that analyze the flows of materials, surplus, waste and products arising in the process of production and consumption from the point of view of their potential value for other market entities; information platforms for the exchange and sale of waste and surplus; creative industries companies capable of transforming by-products into useful products; companies providing collection, transportation and diversification of the circulating product usage; small enterprises working to ensure the repeated use of created products (repair, renovation, modernization, rental, etc.); startups that ensure flows continuity and closed production and consumption cycles.8 The infrastructure has systemic nature, which involves the circular movement and interconversion of all resources types (water, heat, energy, wood, textiles...) within a single ecosystem, the widespread use of creative industries potential that can offer options for diversifying the ways of using resources, materials and products By some estimates, 75% of such infrastructure does not exist today9.
In our opinion, considering the legitimacy of both approaches, we should talk about the CLE circular infrastructure. From these positions, a circular tourist supporting infrastructure can be defined as a tourist infrastructure that ensures the circularity and closure of material flows and meets the principles of circularity throughout its life cycle. It has all the features and characteristics of the circular infrastructure that ensures the CLE functioning as a whole, however, it has a number of features characteristic for the tourism industry.
These include:
- uneven infrastructure facilities and networks load due to the seasonal nature of tourist activities;
- increased environmental requirements infrastructure facilities creation and operation;
- restrictions due to placement in protected areas or resort areas;
- "link" of tourist infrastructure objects to natural, cultural, and historical attractions, which imposes special requirements for the preservation of the historical appearance, natural and cultural heritage during the supporting infrastructure development. Infrastructure for the tourism closed-loop
economy, ensuring the functioning of the circular economy of tourism, closed production and consumption chains at the micro, meso- and macro-levels (for example, creating a new quality of the environment, allowing the reuse of materials and products, connecting a wide range of resources, opening up new opportunities for their use , introducing circular business models to meet needs) creates new value, minimizes the use of materials in value chains and the production of waste.
Based on the foregoing, the following general and specific functions of the tourism closed-loop economy infrastructure can be identified:
- material condition for the implementation of circular business models, consumer behavior models, intra- and inter-industry partnerships, platforms, and network structures in the tourism sector;
- a communication function that ensures technological, financial, and economic connection of all activity areas into a single technological chain for creating a complex
8 Cycle closure refers to the elimination of preventable waste and environmental pollution through the effective reuse/multifunctional differentiated (multifunctional) use of resources and materials already involved in production processes, separating economic growth from the growing need for natural resources, preserving biological resources and nonrenewable resources, ensuring multidimensional social-economic benefits [Thought Piece: The Role of Infrastructure in the Circular Economy. Global Infrastructure Hub. - 2021. URL: https://cdn.gihub.org/umbraco/media/3889/gi-hub-thought-piece-infra-structure-and-the-circular-economy-apr-2021.pdf (reference date 29.01.2023)]
9 Closed-loop economy. Review of international approaches. Multilateral Economic Cooperation Department of the Ministry for Economic Development of the Russian Federation. 2021. URL: www.economy.gov.ru2204.pdf
tourist product and the exchange of activity results, including the knowledge exchange;
- the economic function of reducing transaction costs for the transition to the CLE model by expanding the resource base and facilitating access to the entire variety of resources and their possible effective use;
- integration function for the formation of tourist territorial systems, clusters and technology parks based on the CLE principles;
- stimulating - creating conditions for the development of those activity types that ensure the production and consumer chains closure and contribute to the achievement of the CLE goals;
- regulatory - determining the investment flows directions and volumes, the business activity level, employment, and income, on the one hand, and tourist flows in order to optimize the load on natural environment, social and other infrastructure elements, on the other hand;
- spatial, determining the tourist assets placement;
- resource-saving;
- environment stabilizing;
- adaptive, allowing the tourism industry to adapt to changing conditions of the external and internal environment (resource, environmental, climatic, social) and reduce the risks caused by them.
The effective functions implementation is determined both by the infrastructure development and systematicity (the presence and interconnection of elements), and by the compliance of its development level with the goals and objectives for a given stage of the CLE development.
Barriers to the formation and development of infrastructure for the tourism closed-loop economy The expanding practice for applying the principles and models of the circular economy in
tourism, the problems arising thereto, have caused the need to identify/identify and analyze barriers to the circular transition and the appearance of some studies performed by foreign researchers [6; 8; 12; 19].
Unfortunately, no works by Russian researchers devoted to this topic were identified in the RSCI scientometric database.
The general barriers to the implementation of the CLE infrastructuring concept, the results of the research allow us to include:
• Lack of understanding of what a closed-loop economy, circular infrastructure and CLE infrastructure are among both politicians and practitioners at the regional and municipal levels. The result is a lack of conviction in the concept necessity and feasibility, reinforced by the underestimation of pricing for natural resources, waste streams and ecosystem services.
• Non-obviousness of benefits, their manifestation in the long term.
• Lack of a general infrastructure taxonomy10 that ensures the CLE functioning and the SDGs implementation — the impossibility of a systematic approach to planning infrastructure assets and prioritizing long-term strategic investments.
• Unsystematic (isolated, sectoral, fragmented) infrastructure development -— lack of understanding of the infrastructure development basic level and clear goals for its adaptation to the CLE goals — it is not clear how much and what kind of infrastructure needs to be created — there is no understanding and quantitative assessment for costs and results.
• Inconsistency in development strategies for various infrastructure elements, lack of goals for their adaptation to the economic cycle conditions, attempts to fit circular solutions into a linear economic system.
• The presence of a growing investment
10 Taxonomy is understood as a system of classification principles and practice together with complex hierarchic systems structuring.
24 H-
shortage11 with a lack of interest from the private sector.
• High risks, including ESG - risks of the investment infrastructure projects feasibility.
• Strict public procurement procedures that are not focused on the CLE goals and objectives.
• Lack of markets, institutions, and legal framework for the secondary resources circulation.
• Underdevelopment of circular markets with the sate dominance in the markets, operating within the strict framework of government procurement legislation.
• Underdevelopment of mechanisms for reserving land plots for state and municipal needs in order to locate infrastructure facilities.
Barriers associated with the tourism industry characteristics should be added to these general barriers:
- A large number of actors involved, while maintaining linear mechanisms for coordinating their activities and the lack of a common understanding for the circular tourism framework [17].
- Lack of government support for circular initiatives of tourism industry entities.
- High initial investments due to the need to rebuild facilities under strict environmental and other restrictions.
- Lack of trust between participants along the entire value chain of the tourist product.
- Lack of consumer readiness/preferences formation, as a result of the hedonic tourism perception by consumers [11].
- Gaps in CLE measurement: inability to define target indicators and progress indicators -— lack of incentives to do what cannot be measured.
- Limited knowledge and limited opportunities for training in the field of new materials, technologies, and design of tourist products
based on the CLE principles.
An interesting illustration of this barrier is the fact that barrier researchers, trying to find confirmation of their theoretical conclusions from experts, were able to find only four experts - representatives of the tourism industry, familiar with the CLE concept [19].
This list of barriers is not exhaustive and can be supplemented by a number of technical and technological barriers, as well as barriers caused by the peculiarities of various industries and sectors functioning - participants in a complex tourist product creation process, the complexity and interdependence of connections that arise in closed production and consumer chains, national and regional features of the CLE functioning. Finally - by the geographical and climatic conditions of infrastructure elements construction and operation in regions of tourist specialization.
Analysis of the circular transition practice allows us to conclude that the construction of CLE infrastructure at present is not so much an innovative problem as an institutional and organizational one, requiring an emphasis shift in policies and management from the search for technical solutions to the conditions creation that stimulate the implementation of non-standard solutions for the infrastructure circular transformation [8; 12]. The systemic nature of the barriers to CLE infra-structuring can be illustrated by the following diagram (Fig. 1).
Considering the tourism industry as a complex adaptive system, the future of which is determined by its ability to transform on the CLE principles [18], the entire set of incentives for such transformation can be conditionally divided into two large groups. The first is external to business and includes influences from the state, demand and public organizations. This group of incentives determines the institutional pressure strength, which, in turn, depends on the policy and institutional environment maturity. The second is the internal motivation of travel companies, determi-
11 The investment gap is forecasted to grow in the global economy up to $18 trillion by 2040, compared to $3 trillion in 2020 [Sustainable development and infrastructure: A review of trends in Russia and worldwide. URL: https:/^6.p^/down-loads/spief_sd_short_final_02.05.2021_1.pdf?ysclid=lobqa13t82925683142]
Т. ]B, No. 2 I]]])
2024
ned by the owners and management position, as well as the level of the organizational culture maturity. The results of some studies indicate that
many solutions can be implemented without significant investment, only by employees training and shaping their attitudes [11].
Limited knowledge, lack of CLE
essence understanding
Lack of experience, new knowledge and agruments for CLE and CICLE
f
CLE and its infrastructure is present in projects only
Disputing concept and its feasibility
Lack of goals and objectives for circular transformation in policies and strategies
Low priority of circular goals compared to conventional solutions, percieved as less risky and ensuring seamless system operation
•v
Lack of financing, institutions and incentives
Slow knowledge spread and intriduction in organizations
Fig. 1 - Circular nature of systemic barriers to the CLE model transition
Conclusion
Modern tourism supporting infrastructure was created within the framework and in accordance with the principles of the linear economy to ensure the stable operation of enterprises: access to resources, mass production and further promotion of goods to national and international markets in order to maximize profits through economies of scale and lower prices. Negative externalities of its functioning, such as resources, intermediate and final products losses and increased volumes of waste along the entire value chain, resource base depletion and natural environment degradation were not taken into account. It also did not take into account the lost economic opportunities caused by the inability to recover the materials and resources value at the end of their use and resources diversion to combat the consequences of increased waste. The long service life of infrastructure elements, which require supportive management and financing throughout their life cycle, the complexity of infrastructure projects planning, design and implementation determine the sector conservatism
with high risks and low rates of return, a low level of innovation compared to other sectors and the inability to respond quickly to changing conditions and needs. The current state is the result of decisions made many years ago, while new risks, challenges and sustainable development goals require different organizational and technological approaches. However, modern infrastructure elements are considered mature, functioning sys-temically, providing complexity, idea of common heritage and ability to access resources and assets, supporting production and consumption system and daily life of population. They are reproduced as given and unchangeable, which is one of the reasons why they hold back the development of a closed-loop economy.
Changing the supporting infrastructure role and functions in the CLE requires a revision of approaches to determining its essence, elements composition and systemic interaction. However, there is a clear lack of research that forms and develops the concept of the CLE infrastructuring, which actualizes the objective for further theory broadening, determining the conditions and
developing mechanisms for the circular transformation of infrastructure. The lack of a scientifically based theory in practice creates barriers to implementing the plans for building a closed-loop
economy, reproducing linear principles of operation, unsystematic, fragmented, and ineffective efforts to create the infrastructure that ensures the CLE functioning.
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