INCENTIVES AND RESTRAINS RELATED TO THE DEVELOPMENT OF A WINE TOURISM DESTINATION: A NEW INSTITUTIONAL ECONOMICS APPROACH

This paper aims at analysing the way institutions, under the approach of New Institutional Economics, incentivize or restrict the development of a wine tourism destination. This is a case study conducted in Vale dos Vinhedos, Rio Grande do Sul, Brazil, which is the main wine tourism destination in the country. A documental analysis was held along with interviews with 13 representative organizations (public and private) of wine and tourism sectors in the region. In the study, it was observed that wine tourism in Vale dos Vinhedos, lacks formal institutions, being solidly based on informal institutions, in other words, cultural region's patterns. Additionally, the entry of new tourism players, with a different mindset, creates conflicts and institutional pressure, especially related to land usage. It can be observed that leadership structures connected to these sectors have put effort to promote the destination. However, there is little formal institutional incentive. Thus, to solve these bottlenecks, it is recommended that the formulation of incentive policies be coherent with the informal institutional structure of the region, that they support local entrepreneurship, aiming at wine tourism dynamization in small properties, the definition of a shared destiny view and the roles of different segments of governance.