Filter User in Views based on taxonomy contextual filter?
You are on the right track, but the contextual filter has to be changed. The user ID is not the region. If you wish to filter on the Region, you must first determine the Region for the user page you are on. 

Switch the Provide default value to PHP Code. Then enter something like:

$user = menu_get_object('user');
return $user-&gt;field_region['und'][0]['taxonomy_term'];


This will load the term object for the region of the current user, and the filter can then limit the user list based on that term.

To eliminate the current user from this list, set upa second contextual filter in User:UID and set default value to Use ID from URL. Then open up the 'More' settings and check exclude.