The paper addresses networking as a basis for cooperation of small cities leading to more sustainable regional development at the city, regional, and federal level. It is shown that networking of cities can contribute to increasing sustainability in many ways. Still, additional research is needed to adjust best management practices discussed in the relevant academic literature to the peculiarities of transition economies. The objective of the research presented in the paper was to help regional and municipal authorities in the optimization of territorial development planning aimed at long-term sustainability. Research was carried out in Russia on an example of two regions, namely Perm Krai and Vladimir Oblast. The case study revealed that local authorities underestimate the potential of small cities in raising regional sustainability. Actually, a number of small cities in both regions have hidden competitive advantages but cannot realize them separately, whilst development of regional city networking is a fruitful approach to improve their socio-economic situation, and to boost sustainable regional development. Therefore, when planning regional development, federal and local authorities should regard the role of small cities, including disadvantaged and depressed ones, as potentially valuable members of a city network. Measures to embed small cities into different types of networks should be based on the thorough assessment of their resources, with the aim to develop collaboration of cities with mutually beneficial network externalities.

Purpose This paper aims to analyze the modern problems and the main trends of development of the health-improving tourism sector in the southern part of Russia and to identify significant factors in overcoming the complex challenges related to specific socio-economic conditions in the study area. Design/methodology/approach The material that served as the basis of the study comprises statistical data from the Southern Federal District and its subjects, as well as data about the development of tourism infrastructure on the official websites of governments, Ministry of Tourism and the population of the Southern Federal District. This information was systematized from a number of perspectives, including identification of the chronology of health-improving tourism infrastructure development in the chosen territory, as well as the advantages and disadvantages in this area. Based on the results of the study, the authors also developed some recommendations to overcome existing inactive trends in the field of health tourism. Findings This paper sheds light on the understanding of the challenges and changes that took place in the resort agglomerations of the south of Russia in terms of current issues and those that must be addressed in the coming years. It was concluded that health tourism in the south of Russia has old traditions based on the natural resource potential of territories that are included in the composition of the Southern Federal District. At the same time, the authors came to the conclusion that, unfortunately, not resort agglomerations are fully utilized. Furthermore, some historic resorts were not well maintained by local authorities and have suffered more recently because of lack of investment. At present, the financial results of health resorts and others related to health-improving tourism are precarious as most operations are unprofitable, and so complex decisions are needed to address the underlying problem of resource optimization because of the important social and economic role of the cities in this region. They have special natural and resource potential and preserve traditions related to health-improving tourism. Research limitations/implications The paper provides a conceptual analysis based on limited empirical data combined with some directions for further research. Originality/value The paper attempts to reveal the impact of social, economic and geopolitical factors, both negative and positive, on the development of the health-improving tourism segment, restructuring of the Russian tourism market and the emergence of promising opportunities and new directions for development. The findings also provide insights for practitioners and researchers, and the tourism industry can draw on this analysis to guide the development of strategy, increase investment attractiveness, make more effective use of the natural resource potential and maintain pressure on government partners to provide support to tourism.

Purpose This study aims to investigate the recent changes in the strategies of international hotel chains in the Russian market, as well as their role in the sustainable development of small and medium towns as prospective local tourism destinations. Design/methodology/approach General observation of the local environment, statistical analysis and a qualitative approach were used to reveal current developments in international hotel chains’ strategy in Russia, and new opportunities for a number of small towns to be embedded in the development of the Russian tourism market. The current scenarios were examined using the available secondary data, including federal statistics and relevant empirical studies, as well as case studies and personal interviews with industry experts that allowed access to respondents’ opinions and market knowledge. Findings In recent years, investment in the Russian regions has become more attractive for international hotel chains. Findings of the study add to the literature on emerging markets by presenting an overview of the main challenges facing international hotel chains in the Russian market and by stressing the facilitating effect of foreign hotel chains’ upon tourism infrastructure development in small and medium towns in Russian regions. The statistics presented, as well as key opinions of hoteliers and local authorities, contribute to an understanding of the strategies used by international hotel operators in emerging economies with reference to new evidence from Russia. Originality/value The main output of this study is that it yields a better understanding of the strategic movement of international hotel chains into the Russian regions and new opportunities to develop tourism infrastructure in small and medium cities situated in Russian regions as prospective tourism destinations.