Destinations compete with each other using production factors generated internally or purchased externally. One factor usually outsourced is knowledge. Key providers of this asset are firms offering knowledge-intensive business services (KIBS); the strength of Krakow�s position on the tourism market could be significantly influenced by KIBS firms. The objective of this study is to analyse the relationship between the development in Krakow of tourism, on the one hand, and KIBS firms, on the other. A review of the literature confirmed that KIBS are a determinant of the city�s potential (including that of the tourism sector). Analysis of tourism supply, represented by the growth dynamic in the hotel segment, shows a higher increase than in tourism movement, but significantly lower than in many other KIBS subsectors. In this context the competitiveness and innovation of Krakow�s tourism companies could be boosted by knowledge and expertise from KIBS companies
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