STRATEGY FOR THE SUSTAINABLE GROWTH OF SLOVENIAN FOR 2017-2021

KEY EMPHASES KEY EMPHASES STRATEGY FOR THE SUSTAINABLE GROWTH OF SLOVENIAN TOURISM FOR 2017-2021

Adopted by the Government of the Republic of , 5 October 2017 TABLE OF CONTENTS

Foreword 8 The strategic vision for Slovenian tourism 12 Hidden potentials 12 Slovenia’s tourism 2021 growth targets 12 The strategic vision for Slovenian tourism 13 Development strategy 16 1. MACRO DESTINATIONS AND TOURISM PRODUCTS 16 Macro destinations 16 Definition of tourism products 22 2. INSTITUTIONAL AND LEGAL FRAMEWORK 24 3. ACCOMMODATION, TOURISM INFRASTRUCTURE AND INVESTMENTS 26 4. HUMAN RESOURCES 28 5. SPACE, CULTURAL AND NATURAL ASSETS 30 6. SMALL AND MEDIUM-SIZED ENTERPRISES 32 Marketing of Slovenian tourism 36 Slovenia’s priority markets for tourism 39 Focus placed on marketing key products on key markets 40 Increasing the effectiveness of promotion channels 41 The scenario of the accelerated development of Slovenian tourism 44 1 FOREWORD chapter 1 Strategy for the Sustainable Growth chapter 1 Foreword 8 of Slovenian Tourism for 2017-2021 Foreword 9

IT IS OUR DUTY TO MAKE GOOD DECISIONS.

Dear stakeholders in the Slove- tourism industry – the repre- we are counting on the support of nian tourism industry and all sentatives of the business sector, other sectors. This time so much those who are engaged in tour- sectoral chambers, municipal- more. Individual ministries take ism in one way or another! ities, civil society, institutes of part in all measures and even as- education, experts in various sume responsibility for delivering The new tourism strategy is the fields, and representatives from several of them. answer to how to achieve the ministries. objective that we set together, I believe that in respect to namely to increase international I believe that we have all agreed many measures it would be tourism receipts to EUR 3.7 – 4 on how important tourism is and easier to say they cannot billion. how essential it is that in light of be carried out or that they our common goals we should all Our vision is clear. Slovenia make our best efforts and blow affect the existing systemic will become a green, active and some fresh wind in the sails of regulation. However, these healthy destination offering five- the tourism industry. measures are strategically star experiences. important for the further The situation analysis, conducted development of tourism. If The strategy defines six key while drafting the new strategy, we join our forces, we will policies: showed that the Slovenian tour- ZDRAVKO POČIVALŠEK unlock the developmental Minister of Economic Development - a new organisational struc- ism industry does not perform and Technology ture: macro destinations and optimally. The numbers are still potential and tourism will tourism products; good, but in fact we are standing become an industry we can - institutional and legal frame- at a crossroads. Infrastructure is be legitimately proud of. work; worn out, investments are poor, - accommodation, tourism in- existing products have a low po- The goal we have set is ambitious frastructure and investments; tential to contribute value added, but we believe it is achievable. Yet - human resources in tourism and we are aware of the untapped it will be impossible without wide industry; development potential of human stakeholder’s support. Should the - space, cultural and natural resources that are crucial for the key measures of this strategy not assets; strategy’s implementation. be implemented, it is still realistic - small and medium-sized en- that in view of a moderate growth terprises (SME). With this in mind we must make in tourist arrivals and overnight decisive moves and bolder deci- stays we achieve a growth in the The implementation of these sions. amount of EUR 2.76 billion by 2021. policies and measures does not entirely depend on the Ministry of The present strategy is not only a Even so, how can we be satisfied Economic Development and Tech- snapshot of the current situation with this result if we have set a nology. It depends on our joint in the field or an inventory of clear way forward for tourism intention, decision and activities. what exists, but it clearly defines with a growth target of between priorities. EUR 3.7 and 4 billion in revenues? We actively cooperated in draft- ing this strategy with all key Tourism is a typical cross-sec- stakeholders in the Slovenian toral activity. With this in mind 2 THE STRATEGIC VISION FOR SLOVENIAN TOURISM chapter 2 Strategy for the Sustainable Growth chapter 2 The strategic vision for Slovenian tourism 12 of Slovenian Tourism for 2017-2021 The strategic vision for Slovenian tourism 13

HIDDEN SLOVENIA’S POTENTIALS TOURISM 2021 Global quality GROWTH TARGETS Slovenia is the only country in the world offering experiences in exploring the lifestyles of the Mediterranean, the , or the Pannonian Plain in a small geographical area in the very heart of Europe. Key target: Sustainability and green to increase international context Green, sustainable and responsible tourism receipts to EUR development is the pillar of Slovenian 3.7 – 4 billion. tourism, and all its stakeholders THE STRATEGIC VISION have committed themselves to these ideals. They provide support for the FOR SLOVENIAN TOURISM preservation and protection of natural and cultural assets and heritage, Other targets: and for responsible and sustainable 5-5.5 million tourist visits; Slovenia is a global green tourism revaluation. boutique destination for ***** 16-18 million overnight The progressive value system stays; demanding guests who are Slovenia is a safe, multicultural, seeking a diverse and active average length of stay 3.1- tolerant and hospitable destination, experience, peace of mind and which is of major importance for 3.4 days; personal benefits. successful tourism development. 18,000 to 22,000 new Geostrategic position tourist rooms, of which Slovenia is situated in the heart of 8,500 will be renovated and Central Europe, among neighbouring 6,500 will be new rooms in countries that jointly generate more the hotel sector; than EUR 173 million tourist visits and more than EUR 605 million overnight to increase full-time stays, which proves the region’s high employment in the tourism tourist attractiveness. sector to 12,000 employees. Willingness to make changes A certain number of stakeholders in the public and private sectors have already adopted new visions and development philosophies oriented towards productive changes and improvements of the business environment – this will create new business potentials. 3 DEVELOPMENT STRATEGY chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 16 of Slovenian Tourism for 2017-2021 Development strategy 17

The development strategy defines six key policies:

1. A NEW ORGANISATIONAL STRUCTURE: MACRO 6 75 DESTINATIONS AND TOURISM PRODUCTS 34 POLICIES MEASURES LEADING DESTINATIONS 2. INSTITUTIONAL AND LEGAL FRAMEWORK 3. ACCOMMODATION, TOURISM 97.8 % INFRASTRUCTURE AND INVESTMENTS OF ALL OVERNIGHT STAYS 4. HUMAN RESOURCES IN TOURISM 10,931,717 OVERNIGHT STAYS (2016) 5. SPACE, CULTURAL AND NATURAL ASSETS 6. SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

1. MACRO DESTINATIONS AND TOURISM PRODUCTS Overnight stays in leading destinations by macro destinations sors, 2016 Macro destinations

One of the fundamental conditions for success on the tourist market nowadays The strategy divides is a clear, simple and understandable Slovenia into four communication of a country’s uniqueness macro destinations: ALPINE and distinguishing features. To this end SLOVENIA THERMAL market-driven clusters of tourism products Mediterranean PANONNIAN and experiences or macro destinations are Slovenia, SLOVENIA being created in Slovenia, which: (1) are 3,313,087 based on geographically contiguous units Alpine Slovenia, 30.3 % I 16/15: 111.44 (2) share the same or similar products or services, and (3) are visible at the global Thermal Pannonian 3,195,820 29.2 % I 15/16: 104.61 level. Slovenia; Macro destinations have become a basis for strengthening a destination’s identity and Central Slovenia & . MEDITERRANEAN CENTRAL SLOVENIA achieving synergies in the development SLOVENIA & LJUBLJANA A total of 34 leading des- of products and promotion, whereas, at the umbrella level, they contribute to tinations, identified within a clearer and more focused marketing four macro destinations, communication and positioning of Slovenia 2,731,381 1,691,429 25.0 % 15.4 % create together 97% of all on foreign markets. I 16/15: 105.61 I 16/15: 111.84 overnight stays in Slovenia. chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 18 of Slovenian Tourism for 2017-2021 Development strategy 19

Alpine Mediterranean Slovenia Slovenia

THE CHARACTER OF ALPINE SLOVENIA: THE CHARACTER OF MEDITERRANEAN SLOVENIA: Picturesque and all-year-round Mediterranean diversity, the natural active alpine vibe. wonders of Karst. Alpine peaks, astonishing views, rivers, Attractive and easily accessible Mediterra- lakes and valleys, hiking and cycling routes, nean towns with strong ties to the green ski resorts and infrastructure provide the Istrian countryside and underground world basis for year-round active holidays and wonders, in symbiosis with culinary delica- outdoor adventures. cies and premium wines.

PRODUCTS LEADING PRODUCTS LEADING Key products Secondary/ DESTINATIONS supporting products Key products Secondary/ DESTINATIONS • Portorož/ supporting products BUSINESS MEETINGS & GAMBLING • Bled • HOLIDAYS IN THE GASTRONOMY EVENTS OUTDOOR • Kranjska Gora (all year-round business tourism MOUNTAINS EXPERIENCES in – business guests at conferences, EXPERIENCES in • (all year-round active holidays in the NATURE • Soča Valley (Bovec, meetings, motivational meetings and NATURE mountains for couples and families; • Ankaran CULTURE Tolmin, Kobarid) exhibitions, including supporting events CULTURE outdoor adventures, activities, well- that attract multi-day guests) • Postojna Cave/ ness and relaxation) COUNTRYSIDE • Bohinj COUNTRYSIDE TOURISM SUN & SEA TOURISM Postojna (Karst) SPORTS TOURISM (a traditional seasonal Mediterranean • Radovljica TOURING (an all year-round product for athlet- TOURING product Sun & Beach, based on beach- • Lipica and the ic team training; sporting events and GAMBLING • es, sun, swimming, relaxation, enter- SPECIAL INTERESTS Škocjan Caves European and World Championships) tainment) • (Maribor – CRUISING & (Karst) OUTDOOR Pohorje) HEALTH & WELL-BEING YACHTING (all year-round active outdoor sports, (an all year-round product focusing on • Nova Gorica and such as cycling, hiking, water sports, • Zreče (Rogla – wellness, relaxation, selfness/mindful- the Vipava Valley skiing, etc. – as the main motive for ness programmes and preventive thera- visiting) – with emphasis on a particu- Pohorje) pies using natural therapeutic elements • Brda lar outdoor activity as the main tourist combined with the Mediterranean cli- motivation) • Upper Savinja mate, speleotherapy, etc.) Valley BUSINESS MEETINGS GASTRONOMY & EVENTS • Koroška (a combination of culinary heritage and (all year-round business tourism modern solutions reflecting numerous – business guests at conferences, features of the Mediterranean cuisine meetings, motivational meetings combined with Alpine and international and exhibitions, including events culinary dishes and complemented with attracting multi-day guests) premium wines and wine production) chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 20 of Slovenian Tourism for 2017-2021 Development strategy 21

Thermal Pannonian Central Slovenia Slovenia & Ljubljana

THE CHARACTER OF CENTRAL SLOVENIA & LJUBLJANA: The lively capital of Ljubljana with THE CHARACTER OF THERMAL PANNONIAN SLOVENIA: untouched natural surroundings at Relaxation, health and filling with your fingertips – where culture and energy. nature meet. This romantic mosaic of plains, hills, vine- Culture and art, thousands of outstand- yards, and castles crisscrossed by thermal ing theatrical and street performances and springs is an excellent choice for those look- events, shopping, and a dynamic urban ing for health, relaxation, active holidays and culinary scene, with pristine woods and hills culinary delights cooked with love. just a few steps away, offering a wide range of activities and authentic experiences in the countryside.

LEADING DESTINATIONS • Moravske Toplice, PRODUCTS LEADING Radenci, Lendava Key products Secondary/ DESTINATIONS PRODUCTS (Pomurje) supporting products • Ljubljana (the Key products Secondary/ • BUSINESS MEETINGS & OUTDOOR region of Central supporting products EVENTS EXPERIENCES in Slovenia) HEALTH & WELL-BEING OUTDOOR • Topolšica/Šoštanj (all year-round business tourism NATURE – business guests at conferences, • Kamnik (an all year-round product focus- EXPERIENCES in and Velenje (the SHOPPING ing on health, preventive ther- meetings, motivational meetings NATURE Šalek valley) SPECIAL INTERESTS • Cerklje na apies, wellness, relaxation, and and exhibitions, including sup- thermal spa adventures for visitors CULTURE • Laško porting events that attract multi- GAMBLING Gorenjskem day guests) of all ages) SPECIAL INTERESTS • • Bela Krajina (vineyard cottages, TOWNS & CULTURE GASTRONOMY archaeological • Kočevsko (hearty gastronomy based on local • Podčetrtek (city breaks, rich history, tourism, pilgrimage festival and performance events, production and recipes and com- tourism, etc.) • Rogaška Slatina • Škofja Loka (the plemented with delicious wines contemporary and alternative arts, Poljane and Selca and beer) • Dobrna town discovering) valleys) COUNTRYSIDE • Čatež (Posavje) TOURING (Ljubljana as a town for discovering • Idrija TOURISM macro destination and Slovenia) (all year-round tourism based on • Novo Mesto, what tourist farms offer, small Šmarješke Toplice GASTRONOMY providers and vineyard cottages, and Dolenjske (a combination of urban and coun- and authentic rural experiences) Toplice (Dolenjska) tryside cuisines) chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 22 of Slovenian Tourism for 2017-2021 Development strategy 23

DEFINITION OF TOURISM PRODUCTS

THE MOST IMPORTANT TOURISM PRODUCTS IN TERMS OF THEIR At the national level ten leading These are, as follows: IMPACT ON REVENUES AND IMAGE. (primary) tourism products have been • Holidays in the Mountains identified as key products in particular and Outdoors, experiential macro destinations. • Business Meetings & Events, • Health & Well-being, I. II. III. • Experiences in Nature The most important products in terms Products having a strong impact on Products having a minor impact on • Gastronomy, of their impact on revenues and im- revenues and image revenues and image SOČA age. Promotional support, active • Culture, product development and manage- • EXPERIENCES in NATURE • SPORTS TOURISM • Sun & Sea, ment at the national level: • GASTRONOMY • SUN & SEA • CULTURE • COUNTRYSIDE TOURISM • Sports Tourism, • HOLIDAYS IN THE MOUNTAINS & • TOURING • Touring and OUTDOOR • HEALTH & WELL-BEING • Countryside Tourism. • BUSINESS MEETINGS Strong

HOLIDAYS IN THE MOUNTAINS & HEALTH & OUTDOOR GASTRONOMY WELL-BEING

EXPERIENCES IN I. NATURE

CULTURE BUSINESS MEETINGS

SPORTS TOURISM

IMPACT ON IMAGE IMPACT TOURING

SUN & SEA

COUNTRYSIDE TOURISM

III. II. Low

Low IMPACT ON REVENUES Strong chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 24 of Slovenian Tourism for 2017-2021 Development strategy 25

2. INSTITUTIONAL AND LEGAL FRAMEWORK MEASURES:

This measure aims to strengthen the DESTINATION role of the national tourist organisation, MANAGEMENT REGULATION OF MOUNTAIN- which will assume new tasks of Slovenian Tourist Board (STB) BIKING IN NATURAL coordinating macro destinations in strengthens its role as the national ENVIRONMENTS terms of marketing and expanding the tourist organisation (NTO) Amendments to legislation competences of the Tourism Directorate Increasing the competencies of to enable mountain-biking in at the Ministry of Economic Development LJUBLJANA the Tourism Directorate natural environments and Technology, which has been tasked with drafting development guidelines for Increasing the activities Drafting the action plan to these four key macro destinations. Other undertaken by SPIRIT (Public implement the legislation legislative measures stated below are also Agency for Entrepreneurship, governing mountain-biking of essential importance in this context. Internationalization, Foreign Investments and Technology) REGULATION OF THE as a promotor of investment SYSTEM FOR MARKING opportunities in the tourism THEMATIC HIKING TRAILS industry Review of the existing thematic Introducing new vertical and hiking trails horizontal links within the Financing for the maintenance of tourism management system mountain trails

TOURIST TAX MODERNISATION OUTDOOR SPORTS TRAINING Setting up a watersports training Increasing the tourist tax system Distributing the tourist tax Providing conditions for leisure activities with an increased level MODERNISATION OF of risk LEGISLATION GOVERNING ACCOMMODATION INCLUSION OF CABLEWAY Formal acknowledgement of INSTALLATIONS IN PUBLIC glamping and other innovative PASSENGER TRANSPORT forms of accommodation in Legislative arrangements to the great outdoors as a type of include passenger cableways in accommodation public passenger transport Introducing the ‘Hotelstars’ Amending the legislation classification system regulating passenger cableway Modernising legislation installations in accordance with governing accommodation the new EU-legislation

SIMPLIFICATION OF SAFETY IN TOURISM GUIDELINES ON GOOD HYGIENE PRACTICES AND Maintaining the level of safety in APPLICATION OF THE tourism HACCP PRINCIPLES IN THE HOSPITALITY INDUSTRY chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 26 of Slovenian Tourism for 2017-2021 Development strategy 27

3. ACCOMMODATION, TOURISM INFRASTRUCTURE AND MEASURES: INVESTMENTS RESTRUCTURING OF STATE- PROMOTING THE OWNED HOTEL COMPANIES DEVELOPMENT OF SMES Slovenian tourism needs to undergo One of the key policies is the investment pol- WITH INVESTMENT AND A system for the allocation of a major restructuring with the icy, on which it depends whether our goals MANAGEMENT PLANS funds to SMEs renovation of tourism infrastructure. will be achieved and whether the Slovenian Conducting a detailed financial Favourable credit lines for SMEs The infrastructure should be based tourism industry will make a breakthrough analysis on high-quality and innovative or remain at a standstill. We need to resolve Setting up a state fund for tourism products that will have a the issues relating to the restructuring of MASTER PLANS AND corporate restructuring (under positive impact on the occupancy of state-owned companies, new greenfield in- MARKETING PLANS FOR the auspices of the Slovenian accommodation capacities and will vestments and incentives such as loans, re- MACRO-REGIONS Sovereign Holding – SSH) increase guest’s level of daily spending. liefs, and grants. Developing individual master So far rehabilitation and privatisation at- Ownership consolidation plans for macro-regions tempts have not resulted in the significant Structuring a new portfolio Developing marketing plans for restructuring of companies or the exploita- macro-regions tion of their development potential. We are NEW INVESTMENTS IN therefore suggesting a professional and HOTEL AND HOLIDAY RESORT EU-FUNDS/NATIONAL FUNDS transparent model for the restructuring of CAPACITIES state-owned hotel portfolio. We propose set- TO IMPROVE TOURISM Determining 15 to 20 key projects ting up a state fund for corporate restruc- INFRASTRUCTURE for the development of hotels turing, with professional guidance and a Providing grants at the and holiday resorts well-defined business plan. The first step to- national, local and EU levels wards implementing this measure is to draw Determining incentives for investments in tourism up a detailed financial analysis. Creating promotional booklets to infrastructure We also need new investments in order to attract investments Increasing the absorption of compete globally; to this end we propose that EU-funds for investments in an investment credit line for tourism com- STRATEGIC INVESTMENT intangible assets in tourism panies be established through SID Bank; fur- PROJECTS thermore, we will identify 15 to 20 key areas Drafting an instrument for SMART MOBILITY for tourism development, etc. strategic projects in tourism Including public passenger Zdravko Počivalšek, transport in Slovenian tourism Minister of Economic Development and INCENTIVE SCHEMES Developing urban smart cards Technology FOR THE DEVELOPMENT Projects for calming traffic in OF TOURISM AND HOTEL tourist destinations and the SECTORS development of alternative Establishing an investment solutions credit line for tourist companies A system for the absorption of grants for tourism

BLED chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 28 of Slovenian Tourism for 2017-2021 Development strategy 29

4. HUMAN RESOURCES MEASURES:

Human resources are one of the most VOCATIONAL EDUCATION DEVELOPMENT OF A important untapped development IN THE HOSPITALITY AND MODEL FOR PROMOTING potentials of Slovenian tourism. Measures TOURISM INDUSTRIES APPROPRIATE HUMAN in this field are organised into three levels: Introducing new school hotels RESOURCES POLICY formal education measures, measures Updating standards and to promote on-the-job education, and specialisations in vocational measures to create a model for promoting PIRAN education appropriate staffing policies. The close cooperation of all stakeholders is of vital importance for the measures to be TERTIARY-LEVEL implemented effectively. EDUCATION Tourism is a service industry, which is PROGRAMMES why it needs motivated, professional Establishing a business and committed employees to achieve programme for the hotel our vision. We must make changes with industry regard to formal education, on-the-job Strengthening programmes for training and the promotion of profes- middle management in tourism sions and, above all, we must raise the Improving the data capture prestige of occupations in the hospital- system for tourism needs ity and tourism industries. It is essen- tial that we encourage the appropriate human resources management policy, PROMOTION OF VOCATIONAL systematically invest in educating em- EDUCATION IN TOURISM ployees and introduce a system for pro- Improving the image of tourism motions and incentives. professions Only this way will we be able to translate this respectful attitude into high-qual- ON-THE-JOB EDUCATION IN ity services for guests, which is crucial TOURISM to achieve the goals that we have set in this strategy. Setting up a national centre for on-the-job education in tourism Eva Štravs Podlogar, Providing education for small, State Secretary of the Ministry of Economic specialised hotels Development and Technology Strengthening the knowledge of information and communication technology (ICT) chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 30 of Slovenian Tourism for 2017-2021 Development strategy 31

5. SPACE, CULTURAL AND NATURAL ASSETS MEASURES:

The tourism development policy focuses The development of Slovenian tourism is DEFINING SPECIFIC FURTHER DEVELOPMENT on sustainable (green) growth and on clos- based on sustainability. This is a key build- TOURISM DEVELOPMENT OF THE GREEN SCHEME OF ing two gaps: a gap between tourist green ing block that we firmly rely on, even though AREAS SLOVENIAN TOURISM (GSST) potential and its economic turnover, and this strategy is more business-oriented. We Defining specific areas AND THE SLOVENIA GREEN a gap between the ‘green’ promise and the will define specific tourism development (destinations) for the BRAND actual quality of tourist experience. areas, thus committing ourselves to the de- development of tourism Active management of the GSST velopment of tourism in those areas with Green monitoring of the new the greatest tourism potential. We will pur- categories of the GSST service sue our activities in this field along with the DRAFTING A NATIONAL providers Green Scheme of Slovenian Tourism and will PLAN FOR GREEN strive to achieve a high valuation of our nat- (SUSTAINABLE) TOURISM Promoting the design of green ural assets and the widest possible integra- Ratification of international scheme products and their tion of our cultural heritage in the tourism conventions regarding commercialisation sector. sustainable tourism development Producing an analysis of Drafting a plan for the climate change impacts on Renata Martinčič, integration of UNESCO world the development of Slovenia’s Director-General of the Tourism Directorate at the heritage in tourism tourism Ministry of Economic Development and Technology Promotion of green international connections VALUATION OF NATURAL ASSETS INTRODUCING THE Drafting a plan for the MONITORING OF TOURISM development of tourism in DEVELOPMENT IN TERMS Slovenia’s protected areas OF TOURIST AND VISITOR SATISFACTION INTEGRATION OF CULTURAL Monitoring visitor satisfaction HERITAGE Monitoring resident satisfaction Drafting a plan for the inclusion regarding the development of of cultural heritage and tourism comprehensive integration in tourism ESTABLISHING A Involvement of private partners SUSTAINABLE MODEL FOR in the cultural heritage of VISITOR MANAGEMENT Slovenian castles Analysis of the carrying Involvement of private partners capacities of tourist destinations in industrial heritage in Slovenia and putting in place management models

POSTOJNA CAVE chapter 3 Strategy for the Sustainable Growth chapter 3 Development strategy 32 of Slovenian Tourism for 2017-2021 Development strategy 33

6. SMALL AND MEDIUM-SIZED ENTERPRISES MEASURES:

Several measures have been envisaged SMALL HOTELS AND OTHER for the development of SMEs and SMALL TOURIST COMPANIES unlocking their potential. The aim is Improving the administrative to improve the business environment framework and business for tourist companies and tourist environment for small tourist farms, promote the development of companies and tourist farms specialised smaller service providers, KOROŠKA and strengthen the range of culinary services. VALUATION OF CUISINE The ‘Gostilna Slovenija’ trademark Product development activities and the promotion of cuisine under the brand ‘Taste Slovenia’ through strengthening the vertical link to regional/local culinary brands Establishing culinary diplomacy and supporting the international visibility of Healthy food in the hospitality sector and its promotion

SETTING UP A MODEL FOR THE INTEGRATION OF TOURISM, AGRICULTURE, CRAFTS, DESIGNS AND CREATIVE ACTIVITIES Branding souvenirs, products, craft and design products from Slovenia 4 MARKETING OF SLOVENIAN TOURISM chapter 4 Strategy for the Sustainable Growth chapter 4 MARKETING OF SLOVENIAN TOURISM 36 of Slovenian Tourism for 2017-2021 MARKETING OF SLOVENIAN TOURISM 37

MARKETING OF SLOVENIAN TOURISM Based on strategic to improve the image of Slovenian tourism; objectives, the strategy to maintain a high level of tourist satisfaction; pursues five marketing to focus on target segments (Slovenia as a global The efficient marketing strategy is Slovenia is a global green boutique destina- destination); a key pillar in achieving strategic tion for demanding guests who are seeking a objectives: objectives. diverse and active experience, peace of mind, to increase visibility; and personal benefits. Its marketing strate- to facilitate conversions (from awareness of the gy introduces the measures aimed at effi- brand to willingness to make a purchase). cient marketing and promoting Slovenia as a green, active and healthy tourist destina- tion offering five-star experiences, through which Slovenian tourism strives to increase added value and revenues from travel ex- ports.

Maja Pak, Director of the Slovenian Tourist Board STRATEGIC MARKETING CONCEPT THROUGH FOUR DEVELOPMENT AREAS

1. MARKETING MANAGEMENT SYSTEM

4. 2. DIGITAL BRAND

3. PROMOTION

ŠPIČNIK chapter 4 Strategy for the Sustainable Growth chapter 4 MARKETING OF SLOVENIAN TOURISM 38 of Slovenian Tourism for 2017-2021 MARKETING OF SLOVENIAN TOURISM 39

Four development areas A MARKETING MANAGEMENT SYSTEM Slovenia’s priority markets for tourism (policies) of marketing Transformation of the marketing comprise nine key management system The determination of priority markets measures and activities: provides a basis for the allocation of resources BRAND (human, financial investments, time). On the Development of a new communication basis of the conducted analysis markets have platform (i.e. great idea) been identified as primary (, , ), emerging (Great Britain and ), potentially emerging (Benelux, , PROMOTION Denmark, Finland, , the Russian Focus placed on priority markets – in Federation, , and the ) accordance with priority groups of markets and markets that have a high-value return on (guidelines for the allocation of funds) resources invested (, , BiH). Drafting development plans for markets and initiatives for identifying additional

opportunities THE MODEL FOR IDENTIFYING PRIORITY MARKETS IN TERMS OF THEIR Focus placed on the marketing of key ATTRACTIVENESS AND ACCESSIBILITY products on key markets in view of the defined product/market matrix • To study the Increasing the effectiveness of Ljubljana-Zagreb- USA promotion channels Postojna-Plitvice DE partnership Further strengthening digital channels • Analysis and CN UK by increasing funds to at least 39% development plan for China of the entire budget by 2021, an

integrated marketing communication FR approach and an integrated approach RU NL to the allocations of funds across the SWI KOR IT entire promotional website BE

Enhancing coherence across individual POL AT promotion channels through a new SPA communication platform DNK Use of ROMI (Return on Marketing MARKET ATTRACTIVENESS FIN Investment)/BSC (Balance Score Card) HU STRATEGIC approach in marketing plans CZ IL UKR Development and implementation of EASILY ACCESSIBLE TUR the B2B measures PONTENTIAL MAC Newflight connections EMERGING HR MNE SRB NON STRATEGIC BIH DIGITAL SHARE OF OVERNIGHT STAYS Improving the digital marketing at 2016 contact points on the purchase route EASY ACCESS Using a digital purchase path for continuous improvement of the user Legend: AT - Austria, DE - Germany, IT - Italy, NL - , CN - China, CZ - Czech Republic, HU - Hungary, HR - Croatia, PL experience - Poland, BE - , RU - , RS - Serbia - FR - France, GB - , IL - Israel. Implementing initiatives for digital enhancements chapter 4 Strategy for the Sustainable Growth chapter 4 MARKETING OF SLOVENIAN TOURISM 40 of Slovenian Tourism for 2017-2021 MARKETING OF SLOVENIAN TOURISM 41

Focus placed on marketing key products Increasing the effectiveness of promotion channels on key markets With a view to increasing the The product/market matrix has effectiveness of promotion channels, been developed on the basis of the identification of priority markets and four main activities have been identified: key products. It determines which products are to be marketed as a Further strengthening digital Using the ROMI (Return on priority on individual markets. channels by increasing funds Marketing Investment) approach in to at least 39% of the entire marketing plans; budget by 2021 while putting into Development and implementation effect an integrated marketing of B2B measures (the development communication approach and of a model to increase accessibility an integrated approach to the by air, education and human allocation of funds across the entire resources development, increasing promotional website; quality in marketing research Using a new communication and the provision of necessary platform to increase coherence information to B2B partners, across individual promotion staying abreast of business event COMMON KINGFISHER channels; programmes (fairs, stock exchanges, workshops, etc.), and adjusting to strategic objectives).

PROMOTION OF PRODUCTS FOR KEY MARKETS – PRIORITY LEVEL I PRIMARY I I SECONDARY I I I TERTIARY

THE NEATHER- AUSTRIA GERMANY ITALY GB CROATIA RUSSIA FRANCE LANDS

HOLIDAYS IN THE MOUN- 1. TAINS & OUTDOOR II I I I I I III II

HEALTH & 1. WELL-BEING I II I III III I I III

1. BUSINESS MEETINGS UNDER THE RESPONSIBILITY OF THE SLOVENIAN CONVENTION BUREAU

2. GASTRONOMY I I I II I II I I

EXPERIENCES IN 2. NATURE I I II I II II II

2. CULTURE II II II II II II II I CONSIDERED IN THE MARKETING PLAN FOR A MACRODESTINATION A FOR PLAN MARKETING THE IN CONSIDERED 2. TOURING II II III II II I

3. SUN & SEA II III II II III I III

3. SPORTS TOURISM III III III III

COUNTRYSIDE 3. TOURISM III III III III 5 THE SCENARIO OF THE ACCELERATED DEVELOPMENT OF SLOVENIAN TOURISM chapter 5 The scenario of the accelerated development of Slovenian tourism 44

The strategy puts The scenario of forward two possible the accelerated scenarios for further sustainable growth of Slovenian development of tourism: Slovenian tourism.

the scenario of Slovenia’s current tourism growth rate it envisages the continuing; following: the scenario of the accelerated sustainable development of major investments in higher- Slovenian tourism. category accommodation facilities (new investments and renovations), The first scenario is passive, based on which will facilitate a transition into the 2008–2015 development trends, and a segment of visitors with higher envisages minor changes in the current levels of income, provide a basis for tourism system. According to this price increases, and, consequently, scenario a currency inflow of EUR 2.76 improved business results produced billion would be generated from the by visitors’ increased tourist export of travels by 2021. spending, The second scenario envisages improving the quality of the entire accelerated development based on the tourism infrastructure and tourism proactive approach of the competent products with emphasis on well- ministries to support tourism motivated and professional human development. It builds on a quick, resources; responsible and efficient action and provides support to entrepreneurial legislation and regulations in favour tourism initiatives. of tourism industry development; considerably improving the image of The second scenario is the Slovenian tourism; one in which we believe and to whose implementation we are increasing the occupancy of committed. tourism capacities and, as a result, increasing the number of overnight stays by 6-8% on average per year; increasing tourist spending per overnight stay by 7–10% on average per year; EU funds or national funds for the accelerated development of tourism infrastructure and products; efficient and consistent implementation of policies and measures proposed in this strategy. TERME ORHIDELIA chapter 5 Strategy for the Sustainable Growth chapter 5 The scenario of the accelerated development of Slovenian tourism 46 of Slovenian Tourism for 2017-2021 The scenario of the accelerated development of Slovenian tourism 47

THE SCENARIO OF THE ACCELERATED DEVELOPMENT OF SLOVENIAN TOURISM – 2021

Foreign Average daily Type of Permanent Overnight Foreign Tourism Category of Rooms Overnight Beds Beds overnights (A) spending by Tourism exports accommoda- beds stays – overnights exports visitors (number) stays – total (percentage) (occupancy) Foreign visitors foreign visitors (in EUR) tion (number) total (percentage) (percentage) (B,C) (in EUR) Hotels 28,844 58,444 2,0 40% 10,135,694 48% 76% 7,714,741 162 1,252,433,644 34% Greenfield 6,500 13,170 2,259,394 47% 80% 1,807,515 170 307,277,621 Brownfield 8,500 17,223 3,268,911 52% 75% 2,451,683 160 392,269,303 Other 13,844 28,051 4,607,389 45% 75% 3,455,542 160 552,886,720 A. Tourists Camps 9,697 30,403 3,1 21% 1,997,488 18% 70% 1,398,242 78 109,062,841 3% Private ac- 8,089 25,353 3,1 17% 2,218,506 20% 65% 1,442,029 93 134,108,693 4% commodation Other 9,393 32,350 3,4 22% 1,587,137 16% 44% 698,340 93 64,945,638 2% Total A 56,023 146,551 12 1 15,938,825 30% 71% 11,253,351 139 1,560,550,815 42% B. Same-day 33,481,559 44 1,486,238,871 40% C. Transit 37,329,027 18 668,807,492 18% Total B+C 70,810,587 30 2,155,046,363 58% TOTAL Total A+B+C 169 3,715,597,178 100%

Note: The tourists in the table refer to overnight visitors versus same-day visitors (excursionists) and transit passengers. Source: a simulation of the data obtained from Statistical Office of the Republic of Slovenia (SURS), (2017), and the Slovenian Tourist Board (STB) (2017).

Slovenia is expected to achieve the following results in 2021:

11,900 new rooms, which is an increase in the a rise in the number of a total of EUR 3.7 billion of a 27% increase compared average occupancy same-day visitors by 6% revenue from the export to the 2015 base year; rate of accommodation on average per year and a of travels, which means an 30,098 new beds, which is capacities by 23% due to rise in the visits of transit increase of 8.7% on average a 26% increase compared improved destination guests by 0.5% on average per year and a slightly to the 2015 base year; image; per year; higher share of revenues from foreign overnight an increase in the total a 9% increase in the an increase in the average visitors – 42%. number of overnight average spending by consumption of same-day stays by 5.6 million, i.e. a foreign visitors per visitors by 13% and transit 54% increase compared night; passengers by 33%; to the 2015 base year;

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Commissioned and drafted by: the Ministry of Economic Development and Technology Kotnikova 5 SI-1000 Ljubljana

Edited by: Suzana Zagorc, M.Sc.

Contractor: Consortium of CPOEF and Horwath HTL

Authors of individual chapters and analyses: Tanja Mihalič, Ph.D., Ljubica Knežević Cvelbar, Ph.D., Miša Novak, Kir Kuščer, Ph.D., Tina Šegota, Miha Bratec, M.Sc. (for CPOEF) Miroslav Dragičević, Ph.D., Siniša Topalović, Emanuel Tutek, Iva Rašica, Andrej Šimatić, Ida Pandur, Nada Kaurin Knežević, Velimir Žagar, Werner Bilgram (for Horwath HTL)

Design and layout: Nea Culpa / Numo

Photo: Archives of the Slovenian Tourist Board: Rok Breznik, Anže Čokl, Jošt Gantar, Eeva Mäkinen, Aljaž Sedovšek, Matej Kastelic, Franci Ferjan, Iztok Medja, Tomo Jeseničnik, Janez Tolar, Aleš Zdešar, Nea Culpa, Archives of Terme Olimia d.d.; Archives of Ljubljana Tourism; Shutterstock

Print: Collegium Graphicum d.o.o. December 2017