Masaryk University Faculty of Economics and Administration

MASTER’S DIPLOMA THESIS

2020 Viktória STARČOKOVÁ

FACULTY OF ECONOMICS AND ADMINISTRATION

Innovation of the Product of the Chopok-South Micro-Region

Master’s Diploma Thesis

STARČOKOVÁ VIKTÓRIA

Supervisor: Ing. Martin Šauer PhD.

Programme: Regional Development Brno 2020

Autor’s name and surname: Viktória Starčoková Name of the diploma thesis: Innovation of the tourism product in the Chopok-South micro-region Department Regional Economics and Administration Supervisor: Ing. Martin Šauer, Ph.D. Defence year: 2020

Annotation

The goal of the Master’s Diploma thesis “Innovation of the tourism product in the Chopok- South micro-region” is to analyse current state of tourism product and innovations in this area and suggest possibilities for development in the future. The first part of the thesis concentrates on the theoretical background related to the topic of the thesis. The second part analyses current state of tourism product and innovations in the micro-region. All fidings are sumarized in the SWOT analysis. Last part which is based on the SWOT analysis contains suggestion for improvement.

Keywords

Innovation, Tourism Product, Tourism Innovation, Chopok-South

I declare that I have worked on this diploma thesis on the subject of Innovation of the tourism product in the Chopok-South micro-region independently under the supervision of Ing. Martin Šauer, Ph.D. and listed in all used bibliography and other professional sources in accordance with legal regulations, internal regulations of Masaryk University and internal acts of management of Masaryk University and the Faculty of Economics and Administration of Masaryk University.

author’s handwritten signature

Acknowledgement

First of all, I would like to thank Ing. Martin Šauer, Ph.D., for his support, guidance and kind attitude during my work on this thesis. I would also like to thank Mgr. Kristína Šajgalíková, destination manager in the Horehronie destination organization, for useful information and help. Last but not least, I thank Mgr. Kristýna Pavlásková for her help with English.

Table of Contents

Introduction ...... 14

1 Tourism Product ...... 15

1.1 General Characteristic of Tourism Product ...... 15 1.2 Special Features of the Tourism Product ...... 18 1.3 Individual Components of the Tourism Product ...... 21 1.4 Quality and Value of the Tourism Product ...... 24 1.5 Cooperation of Tourism Entities ...... 24 1.6 The Tourism Area Life Cycle ...... 25 2 Tourism Innovation ...... 27

2.1 Drivers of Tourism Innovation ...... 28 2.2. Barriers of Innovations in Tourism ...... 31 2.3 Classification of Innovations ...... 33 2.4 Learning Region ...... 35 2.5.1. Strategic Product Development Process ...... 35 3 Tourism Product in the Chopok-South Micro-Region ...... 37

3.1 Basic Definition of the Chopok-South Micro-Region ...... 37 3.2 The Chopok-South Micro-Region as a Part of the Slovak Tourist Regions ...... 38 3.3 The Chopok-South Micro-Region Environment ...... 39 3.3.1 Natural Enviroment ...... 39 3.3.2 Political / Legal Enviroment ...... 40 3.3.3 Technological Enviroment ...... 41 3.3.4 Economic Factors ...... 41 3.3.5 Cultural Enviroment ...... 42 3.3.6 Social Factors ...... 42 3.4 Primary Offer of the Chopok-South Micro-Region ...... 43 3.4.1 Natural Conditions ...... 43 3.4.2 Cultural and Historical Conditions ...... 48 3.4.3 Organized Events ...... 50 3.5 Secondary Offer ...... 52 3.5.1 Tourism Suprastructure – Accommodation Facilities ...... 52 3.5.2 Tourism Suprastructure – Catering Facilities ...... 53

3.5.2 Tourism Suprastructure – Tourism Centres in the Chopok-South Micro-Region ... 54 3.6 Tourism Infrastructure ...... 56 3.7 General Infrastructure ...... 58 3.8 Product Quality and Value of the Chopok-South Micro-Region ...... 61 3.9 Cooperation of Entities in the Chopok-South Micro-Region ...... 61 4 Tourism Innovation in the Chopok-South Micro-Region ...... 64

4.1 Drivers of Tourism Innovation in the Chopok-South Micro-Region ...... 64 4.2 Types of Innovation of Tourism Product in the Chopok-South Micro-Region ...... 68 4.3 Barriers of Innovation in Tourism in the Chopok-South Micro-Region ...... 69 5 Innovation and Tourism Destination Development ...... 71

5.1. SWOT Analysis ...... 71 5.2 Tourism Destination Development – Proposals ...... 72 Conclusion ...... 82

References ...... 84

List of Tables ...... 90

List of Figures ...... 90

List of Abbreviations ...... 91

List of Appendices ...... 92

Introduction

The Chopok-South micro-region is a place where I have lived the longest part of my life so far and which I care about. It is also a place with beautiful nature and great potential in terms of tourism. The region is especially popular in the winter season, when it is sought after by lovers of winter sports. As for the off-season, the area is mainly visited by tourists who enjoy hiking.

However, the evolving society in today’s globalized world constantly requires something new. People are more travelled, more educated and their expectations for tourism and the services provided are rising. This fact puts pressure on entrepreneurs in the sector, who not only face increasing client demands but also tough competition. Travelling has become cheaper recently, so the offer for customers to choose from has significantly expanded. At the same time, the younger generation is fluent in foreign languages and has no problem communicating abroad, which increases competition even more drastically.

Another fact that has a significant impact on tourism in general is the long-acknowledged climate change, which brings challenges that can significantly affect the Chopok-South micro- region. Predictions of less snow cover in the lower-placed resorts, as well as rising temperatures, which do not allow even artificial snow, shorten the peak season for most resorts in the region. On the other hand, the only higher-placed sports centre is not able to handle all customers on its own. Its possible expansion goes hand in hand with the disruption of protected nature and the destruction of places that are home to many animals.

From the regional development point of view, tourism in a given micro-region is an important employer and provider of jobs. Such a sector, as one of the few, will always need a constant workforce, which is ultimately in a way part of the offered tourism product. Tourism brings the possibility of own initiative in the creation of facilities and services that can complement and improve the already-existing offer.

The combination of the aforementioned facts and many other factors shows the importance of addressing the issue of tourism in the Chopok-South micro-region. There are always several solutions but I decided to focus on innovations in this thesis, as I am convinced that they are the key to the development of tourism and, therefore, the entire micro-region.

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1 Tourism Product

1.1 General Characteristic of Tourism Product

Characterisation and definition of the tourism product has been studied by a large number of theoretical tourism analysts over the last decades. There are a number of perspectives to define a tourism product, as it is a fairly broad and comprehensive topic.

The authors go from a purely physical definition of the tourism product to definitions containing also the non-material part of the product, representing the perspective of the tourist participant.

Different views on the definition of the tourism product also show that not only the individual service (e.g. lunch in a restaurant, hotel accommodation or museum ticket) can be understood as a tourism product, but it is also often destination or a package with all its components (for example all inclusive package).

Gunn (1988) describes a model of the tourist system where he sees the tourism product as a complex consumer experience, in which the tourist participant uses a varied number of services during their stay (e.g. information, transport, accommodation, attractions). The tourism product is compared to the package of services consisting of various attributes by Hu and Ritchie as well (1993). In addition, Medlik and Middleton (1973) perceive the tourism product as a summary of the activities, services and benefits that together create a travel experience. The summary of these components is divided into 5 parts: attractions in the destination, amenities, availability, image and price. Anything that can be offered on the market to gain attention or that can be used and has the ability to satisfy customer desires or needs is a description of the product in the Kotler’s version (1984). “Anything” may refer to physical objects, services, people, places, organizations or ideas.

Gučík (2010) describes the tourism product as a benefit from the consumption of goods and services offered by a destination – the so-called primary offerer where the goods and services are produced by businesses and tourism organizations – identified by the author as secondary offers. From the economic point of view, it divides the product into two groups. One of them is the corporate aspect, which perceives the product in a highly differentiated way – on the one hand as an individual service or goods, on the other hand as a set of services and goods depending on the purpose of visit and other factors. Another view is a national economic point of view of the tourism product. In this case the product is seen as a sum of the elements of the

15 primary offer, all goods and services produced by private sector enterprises, along with public sector organizations that strive to meet the needs of tourism participants. The author emphasizes the fact that free and collective goods and services as well as private ones are always consumed, which complement each other. Middleton (1989) similarly divides the product into two levels. The first one represents the so-called specific level where individual entrepreneurs in tourism offer a specific service (e.g. a place in an aircraft). The second level is described by the author as a “total” level that contains the complete experience of the traveller, starting as they are leaving home and ending as they are returning home. Another author who dealt with the characteristics of the tourism product was Smith in 1994. He perceives the product as a series of inputs offered at the destination, which in various combinations result in outputs that represent a benefit for the tourists themselves. As a basic characteristic, Muphy (1985) compares destinations (in terms of tourism product) to a market where the relationship between demand and supply plays a major role. Following the market, Gučík (2010) presents 4 hierarchical levels of product perception: 1. business level – specialized product, 2. region level – the product of a tourism center or region, 3. national level – the product of the state perceived as a travel destination and 4. transnational level – the product of the Euroregion, a group of neighboring states or a whole continent.

Smith (1994) as well as Watson and Kopachevsky (1994) add environmental impact to the extended definition of a tourism product and emphasize the wider context in which the product is created, provided and used. Smith (1994) presents these segments in the concept of the so- called hierarchy of influencing factors clarifying that services and infrastructure are part of a broader macroeconomic environment. Kotler, Bowen and Makens (1996) further developed the idea of understanding the product within the broader macro environment, representing the six components that make up a certain background of the destination – natural environment, political and legal, technological, economic, cultural and social factors (see Figure 1).

Consequently, the infrastructure necessary for the functioning of tourism can be built and developed in the given environment. In the second component, the authors include shops, recreational services and attractions, catering and accommodation facilities, transport services and travel agency and agency services. On the basis of these two components, an experience of the tourism product is created, which is the reason to travel for the majority of the tourism participants.

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Figure 1 A Conceptual Model of the Destination Product

Source: Kotler, Bowen and Makens (1996)

Some of the other authors emphasize that the tourism product is not only a sequence of inputs but also experience itself. An important factor is also the actual expectations of the tourism participant and thus the consumer of the tourism product. Lewis and Chambers (1989) differentiate between 3 different product phases. The first one is a “formal product”, which is a product that the customer thinks or expects to buy. The second phase of product perception is a “core product”. The third one is an “augmented product” – a product + additional unexpected service or attention of the product provider. Definition based on the same approach is also documented by Sasser, Olson and Wyckoff (1978) but they call the 3 types of product “facilitating goods”, “explicit intangibles” and “implicit intagibles”. Normann (1984) presents a model that characterises a product as either basic or complementary, introducing “peripheral” services. As an example, in the aviation industry there is a flight where the journey from departure to the final destination itself is the basis of the product and the extra services provided – for example entertainment on board, check-in or baggage handling are considered to be peripheral. A similar idea is also addressed in Kommppula (2006) who is convinced of the importance of the expectations of tourism participants. He deals with the concept of services based on the expectations of the participants. He presents a marketing perspective where the

17 concept of services is described by the ability of a traveller to acquire, through a particular product, the experience and value expected when traveling.

Particular emphasis is placed on the importance of gaining experience or creating value and evoking emotions by several authors. One of them are Grötsch and Weiermair. Kurt Grötsch (2006) talks about the need to understand the product in the form of emotions. He recommends product development in terms of satisfying soft and human factors rather than focusing on the “hardware”. He emphasizes the importance of adapting the management approachand describes it as “experience management”. Waiermair (2006) puts the value of the experience at the forefront. He argues it is a dominant factor influencing customer decisions. Customers seek out products that provide or evoke entertainment or adventure to achieve the experience.

Cohen (2004) deals with another aspect of the tourism product. He claims that the experience of a tourist destination is not just pure consumption of various services. In addition to goods, the way they are provided, also referred to as hospitality, provides significant added value in tourism.

1.2 Special Features of the Tourism Product

In addition to the already mentioned hospitality, the tourism product is characterized by other peculiarities, too.

The tourism product is characterized by the great importance of services. Services have their specifics compared to physical products. There are the 4 special properties that apply to services. One of them is the intangibility or abstractness of services. Another specificity is variability. That is because services provided by people can not be provided in the exactly same way, services may vary from day to day, even from hour to hour (Zeithaml / Bitner 2000). Even when using computer assistance or precise instructions, it is very difficult to standardise the quality of the provided service. Another characteristics is indivisibility – the production and consumption of services mostly take place simultaneously and with the participation of the consumer. The distinctiveness is the transience – services cannot be stored.

Gučík (2010) further discusses the specifics of services provided in tourism. He presents the following characteristics: time and local connection of the service to the primary offer, complexity and complementarity of services, multi-branch character of services and necessity

18 of their mediation, dynamics of services and seasonality of demand for services, necessity of information about services and their quality.

Zeithaml, Parasuraman and Berry (1985) draw attention to the significant influence of consumers during providing or delivering tourism services. The ultimate provision of the service depends not only on the interaction between the provider and the consumer, which is often part of the process. At the same time, the tourist often creates the product himself. In the Slovak Republic, organized forms of tourism cover only about 8-10%. This places demands not only on the structure of the offer, especially the creation and offer of service packages, but also on the co-operative management and marketing of destinations and customer management (Gučík 2010).

The aforementioned characteristics of the tourism service and product result in the inability of the traveller to test them before purchase. This causes the risk of buying a bad or poor quality product. Moreover, since each service is different from the difficulty of standardizing, it is subsequently complicated to evaluate it. The rating also affects the individual perception of service by customers. Some authors attribute this problem to the difficulty of assessing a patient’s medical treatment.

The hazards arising from the selection of tourism products are described in Pompl (1996), and Morrison (1996):

1) Risk of choosing an inadequate product that does not satisfy the customer’s expectations.

2) Financial risk – the purchase of an unjustifiably more expensive product that, in quality, actually corresponds to the lower price at which the product was purchased.

3) Time risk – corresponds to the proportion of time invested (holiday days) and expected benefit from the product.

4) Physical risk – threat to health or personal safety in the context of an incorrect travel decision.

5) Psychological risk – caused by emotions and obstacles associated with the planned journey (e.g. fear of flying).

6) Social risk – in the context of a wrongly chosen product, which may not, despite expectations, arouse interest in a particular social environment and does not carry the desired prestige.

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7) Sensory risk – caused by various factors e.g. uncomfortable accommodation, poor food quality, noise, unpleasant passengers.

Pompl adds to the risks associated with the specific characteristics of the product in tourism the risk of finding oneself in unpleasant situations. Participants often move to less known or unknown places to change the routine environment in which they spend most of their time. They travel to new places, meet local people and their customs. In this process, it is important to set a certain threshold as an adventure trip may turn into an unpleasant experience. The author provides an example of visiting a thematic village with the aim of introducing visitors to the ancient way of life of indigenous people. Such experience may be interesting but when a stay in primitive conditions exceeds a certain period of time, its positive perception may change.

In an effort to complete the concept of the Figure 2 The Generic Tourism Product perception of a tourism product along with its distinctive features, Smith developed the model called “The Generic Tourism Product” (see Figure 2 The Generic Tourism Product). The model consists of 5 parts: physical plant, service, hospitability, freedom of choice and involvement. In his model, Smith explicitly mentions that in addition to the physical basis and services, which other authors tend to refer to as primary and secondary offer (e.g. Gučík 2010) or the localization and realization Source: Smith (1994) prerequisites of tourism (e.g. Šauer,

Vystoupil 2006), there are another three components that are difficult to measure and also important for the overall product experience. The importance of each element depends on the specific product. It is essential that the components are interconnected and create a product satisfying the visitor’s imagination based on synergistic interaction.

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1.3 Individual Components of the Tourism Product

The complexity of the tourism product suggests that it consists of several elements. The elements of the product can be characterised according to many ways. This chapter presents two different views on the various components of the tourism product.

The first categorisation follows the previous model. Like Smith, MO, Howard and Havitz (1993) claim that the environment in the destination is the main factor when choosing a travel destination. They value the on-site service as a secondary factor.

The Smith’s model of toursim product is based on the Physical Plant. Under this term, he perceives all physical things or facilities (e.g hotel, airplane, boat) as well as countryside characteristics (mountains, waterfall, beach). However, the Physical Plant is not useful for tourists if there is no service provided by people (e.g receptionist, steward, ship captain). The participant expects something extra besides the first two basic components. Service itself represents manual or technical activities. Hospitality as another part of the product adds further value to the service. It is the style in which the service is provided. Hospitality is a very important element for creating the overall atmosphere. The importance of the Freedom of Choice element is argued by Smith simply and clearly. In order for a person to truly relax, it is necessary to have several options to choose from and the ability to choose one’s preferred option. The last part of the Smith’s model is Involvement. It focuses on the already mentioned feature of the tourism product and the importance of consumer participation. A visitor can be “pulled” into the process only if all previous product components are available. In the case of a tourism product, it is not only a simple physical presence of the consumer but also the ability and the freedom to engage in the activity, whether it is a holiday or a business trip.

Another view at the specific elements of the tourism product is provided by the characteristics of the tourism offer. “In terms of supply, it is important to distinguish between primary and secondary offers as an object of interest to visitors. The primary offer consists of the natural and cultural-historical potential of the destination, which by its attractiveness provides dynamic and specific form of travel experience. The secondary offer includes all types of establishments and their services which must be available for use in the tourism industry. Their scope and structure depend on the primary offer (Gučík 2010).”

Table 1 and Table 2 illustrate the details of the primary and secondary offers in detail.

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Table 1 Primary Offer

Natural conditions Geomorphological conditions surface, relief, caves, waterfalls, valleys, rock walls, karst plains, aesthetic value of views of the surroundings Climatic conditions temperature conditions, water and snow precipitation, duration of sunshine, windiness Hydrological condition groundwater – water yield, temperature, chemical composition, healing effects, form of springs

surface water – rivers, lakes, reservoirs, water purity

Biogeographical conditions forest, arboretum, botanical gardens, protected – flora and fauna landscape areas, animals, ichthiofauna Cultural and historical conditions Architectural monuments secular – castles, manor houses, palaces, mansions, urban conservation reservations sacral – churches, monasteries, chapels technical works – bridges, dams, tunnels Works of art statues, sculptures, banners, monuments, paintings, furniture, tools, weapons Folklore tangible – clothing, dwellings, traditional art production, non-arable lands, wine-growing settlements intangible (spiritual) – music, customs, traditions, folk literature Archaeological sites sites in the wild as well as museum collections Historic places places of battles, places of world and national history, birthplaces and places of national figures Cultural-educational facilities theaters, galleries, open-air museums, museums, memorials Organized events Cultural events folklore, film, theatre, music festivals and performances Sport events sports games, races, competitions Business events congresses, exhibitions, trade fairs, salons, annual markets Religious events pilgrimage, religious meetings Social and political events celebrations of anniversaries of towns and villages, political anniversaries, meetings of important politicians Source: Gučík (2010)

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Table 2 Secondary Offer

Tourism suprastructure Accomodation facilities commercial accommodation: hotel, motel, botel, guesthouse, apartment house, tourist or youth hostel, cottage settlement, camping, caravan site, camp site private accomodation Catering facilities restaurant, roadhouse, self-service dining room, pizzeria, bistro, bar, pub, café, confectionery, wine bar, vinotheque, beer-house, club (disco-, dancing-, billiard- club) Tourism infrastructure travel agencies tourist information offices congress halls or centers currency exchange providers customs border crossing points and customs branches General infrastructure Local infrastructure shops – groceries, souvenirs, clothing, sports equipment, news stands services – barber, hairdresser, manicure, pedicure, massage Transport infrastructure taxi service, car repair service, car wash, gas station, recovery services, car rental, parking Transport equipment public transport, bus, rail, air or water transport Medical infrastructure hospital, health center, pharmacy and emergency services state, city and municipal police, foreign police, Mountain / Water Rescue Service Other infrastructure post office, telecommunications, bank, ATM, insurance company Cultural and social facilities casinos and game rooms, theme and amusement parks Sports and recreation facilities playground, aquapark, outdoor swimming pool, indoor and activities swimming pool, sauna, fitness center, ice rink, cableway, ski lift, sport equipment rental and service, ski school, downhill skiing track, cross-country ski trail, hiking path, cycling trail, water sport trail, water fotball, fishing, hunting, horse riding Source: Gučík (2010)

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1.4 Quality and Value of the Tourism Product

Quality and value of the tourism product is extremely important to the product itself, but it is very difficult to be measured. Tourism customers are more educated, more experienced, more knowledgeable and have the tools to verify organization’s claims and find better alternatives on the Internet. They tend to seek maximum value at reasonable search costs. They try to find out which offer will have the highest value and meet their expectations. That affects their satisfaction and likelihood to purchase the service or product again (Gučík, Gajdošík, Lencesova, 2007).

Quality is perceived as a positive distinguishing characteristics (Berry, Parasuraman 1991). The ever-increasing competition in the field of tourism at regional and international level supported quality strategies and branding value. Quality and value are concepts through which it is possible to revive the product or improve the product in the eyes of the client. Several destinations have adopted the path of quality improvement (Stevens, 1992).

According to Chang and Wildt (1994), value can be perceived as a combination of the quality of the product and its price, which is summarized by the traveller. Customer perceived value is the difference between evaluating the benefits and costs of the offer and the perceived alternatives to the customer (Kotler and Keller in Gučík, Gajdošík, Lencesova 2007). It is the monetary value of the economic, functional and psychological benefits that a customer expects from a given service or product (it is the difference between what a customer gets and what a customer would give for different alternative offers). The total cost to the customers is the sum of the costs they expect in evaluating the alternative offer – including financial, time, energy and psychological (Gučík, Gajdošík, Lencesova 2007).

1.5 Cooperation of Tourism Entities

The tourism product is influenced by several entities. The business part consists of producers and service intermediaries. These organizations are involved in tourism in order to make the most profit. However, entrepreneurs advocating a certain lifestyle have begun to develop recently and they are trying to incorporate them into business activities not primarily with the aim of earning as much as possible. The list of the most important commercial actors in tourism is shown in Table 3 Tourism Establishments and Facilities.

Table 3 Tourism Establishments and Facilities

Service producers Service intermediaries Accomodation facilities Travel agencies Hospitality facilities Tourist information offices Transport equipment Information systems (Internet) Spa and wellness facilities Distribution systems (reservation systems) Sports and recreation facilities Cultural-educational facilities Source: Gučík (2010) 24

The institutions involved in tourism cover the influence of public administration and self- government. Their main goal is to help with the sustainable development of the field and create a suitable environment for business in tourism. The aim of public institutions is to move towards regional development through tourism. Tourism may be particularly important for peripheral areas with appropriate natural or cultural preconditions that are important for the development of the sector.

A big plus of a successful tourist destination is the situation where there is a functional and effective cooperation between the various actors in the field. This can be cooperation between different commercial representatives or cooperation with public entities. Support for public bodies is particularly important, as the development of a tourist destination often requires financially demanding projects to build, expand or modernize the existing infrastructure. In many cases, these investments go beyond the financial capacity of individual entrepreneurs and, therefore, a common strategy, plan and process for building and managing the target is crucial for success. The public-private cooperation can be found in different forms. However, it is essential that all organizations have a common “higher goal” even though some of the business community may be competitors within a particular destination.

1.6 The Tourism Area Life Cycle

The life cycle of a tourism destination is based on the principle of the product life cycle. It consists of the following four main parts: Introduction – Growth – Maturity and Decline (Müller-Stewens, Lechner 2003).

Richard Butler understood the Figure 3 The Tourism Area Life Cycle specifics of the development of a tourism destination and introduced a 6-part cycle in 1980: The Tourism Area Life Cycle (Figure 3 The Tourism Area Life Cycle). The cycle considers in the description the number of tourists visiting the destination and its overall popularity. It can be used for determining the person who, by identifying one of the phases, can prepare for another so that the destination is not under pressure and does not lose its attractiveness (Butler, 1980). Source: BUTLER (2006)

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Butler’s cycle begins with the Exploration phase – the discovery or development of the destination that is only visited by the so-called adventurers who like to visit “untouched” places. The discovery phase is characterized by the fact that there is only a small number of visitors in the destination, who usually discover it randomly. There are almost no tourism facilities and the environment is not yet influenced by tourism.

This phase is gradually changing to the second phase of Involvement, which is characterized by a higher number of tourism facilities.

The third phase is represented by the Development, which is essentially similar to the Growth period in the classic product life cycle. In the Development phase, the attractiveness of natural and cultural attractions is increasing and the first strategic development plans for tourism are being developed.

The Consolidation is a state where the economic of the destination is already dependent on tourism, its economic effects are apparent and the number of visitors is usually higher than the number of domestic inhabitants.

After this period comes the Stagnation phase. The phase of Stagnation is predicted by a situation where limit capacities are exceeded and negative economic, social and environmental effects of tourism start to manifest themselves. At this point, it is necessary to reconsider the further direction of the destination (Gajdošíková, 2017). Butler calls this period a Re-orientation. The destination is at an imaginary intersection from which it can continue in a positive direction – rejuvenation, or a negative direction – decline (Butler, 1980):

The Decline Scenario

 Unability to compete with newer tourism attractions  Holiday makers replaced by weekend or day-trippers  Tourism facilities replaced by non-tourism activities  Hotels may become retirement homes or flats for local residents  Ultimately, the area may become a tourism slum or drop out of the tourism market completely

The Rejuvenation Scenario

 Requires a complete change in tourism attractions  Previously untapped tourism resources may be found

Successful revival of a destination is the goal of local businessmen and representatives of public administration. It may be achieved with appropriate use of innovation in order to relaunch the destination’s popularity and ensure sustainable growth.

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2 Tourism Innovation

This chapter is dedicated to the innovations in tourism sector. As described in the previous chapters, tourism product itself has some specifics. The same applies also for innovations in tourism. Firstly, it is fundamental to characterise what innovation is and why it is important to innovate and develop. Innovations are always connected with newness. Kanter (1983) described innovation as a process of bringing any new, problem solving idea into use. In the author’s view this idea deals with reorganisations, cut of costs, new budgetary systems, improvements of communication, implementations of new processes, products or services. Definition of innovation in terms of its measurement and evaluation by OECD (2005) says that innovation means the introduction of new or significantly improved products, processes, new marketing or organizational methods in an organization or external environment.

Innovations are clearly related to inventions and research. Hjalager (2002) reports that inventions are connected with basic research and are used to describe breakthroughs. Innovations are seen by Hjalager as further developments of inventions or ideas that make useful products of out them. Definition by Schumpeter (1939) positioned innovation somewhere between invention and adoption (Volo, 2004). Schumpeter (1934) also evaluates the process of creative destruction as the most important factor for economic growth. The creative destruction means that old products are destroyed and replaced by new ones. Therefore in Schumpeter’s view innovations represent essential driving force of economic change and development.

European Community (1995) defined innovation in the tourism sector as the successful production, assimilation and exploitation of a new method or device in the socioeconomic sphere capable of providing solutions to as yet unsolved problems, and of catering to the needs of both clients and society. Gajdošíková (2017) looks at the specifications of innovation in the tourism industry and differentiates between the following 4 specifics:

1) Territorial link of innovation – The nature and types of innovation introduced depend on the sources (primary and secondary offer) available at the target location. It means that businesses located in different destinations implement different innovations. It is therefore not true that the same innovation can be implemented in any business at any destination.

2) Different levels of innovation implementation – Innovation in tourism can be implemented at the level of an individual (entrepreneur), enterprise, center, region or country.

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3) External environment – This is where most of the impulses for innovations in tourism come from, they are initiated by changes in the market and customer requirements. This peculiarity is caused by the fact that tourism businesses do not have their own departments of science and research such as automotive or pharmaceutical industry.

4) Size of tourism enterprises – Innovation capacity depends on the size of enterprises. In small and middle enterprises, which represent the majority of enterprises in the tourism sector, priority is given to routine activities and due to lack of time, finances and in some cases also knowledge and unwillingness to take risk, it is challenging for businesses to do environmental and resource analyzes and to implement innovations.

2.1 Drivers of Tourism Innovation

There are many factors that influence innovation. Following the chapter dedicated to tourism product lifecycle, I would like to point it out as the first driver. Bieger and Weinert (2005) described the product lifecycle as a background of innovation. Mainly in the stage of Re- orientation, it is the right time to think about innovation. Innovation in this time helps to avoid the unwished Decline scenario. For enterprises, it works the best when they are able to recognise transition between Consolidation and Stagnation phases and start to work on innovation.

In the context of lifecycle it is important to mention the fact that consumers’ interest into the products last shorter time than it was earlier. As Braun (1994) noted there is constant increase of “young” products in sales of companies. This fact itself puts a big pressure on firms acting in tourism sector. International companies and tour operators are active in many markets and bring new destinations and products for the customers every season. Travel to far-placed places has never been easier and cheaper than nowadays. Based on larger capacities, which can be assured and handled by tour operators, decrease the price of holidays. New exotic destinations are available for bigger range of customers (e.g. Zanzibar, Oman, etc.).

D´Aveni (1995) described economy in 1995 as dynamic or even hyperdynamic. Since 1995, 25 years already passed, the economy is faster and accelerates daily. Globalisation and markets connections and cooperation around the world became a necessity. The international business plays an important role mainly for economies of smaller countries. International tourism is growing and the number of visitors increases constantly. Customer internalisation and market enlargement has two main consequences: On the one hand, new consumers are entering the

28 market, on the other hand, needs are changing because of a broader range of products and services available internationally (Bieger, Weinert, 2005). Destinations “fight” against each other in order to impress customers. New and innovative products contribute to overall visitor satisfaction as they meet their expectations better than outdated products (OECD, 2004). If the destination approaches innovations and offers innovated products in a targeted and systematic way, then the visitors are more satisfied, they become more loyal, which is connected with repeated visits, spreading goodwill, growth of tourism revenues in the destination and other positive economic and non-economic effects of tourism (Gajdošíková, 2017).

Walder (2006) investigates another point of view. She drew the inspiration from Porter’s Diamond Model that was presented in 1990. She has adapted this model on sources of Innovation in Tourism (Figure 4). There are 4 main influencers suggested:

 The first one is firm strategy, structure and rivalry. Firm strategy and its structure are internal aspects which may differ among companies in the same sector or destination. Carayannis and Gonzalez (2003) defines the drivers of innovation to be leadership, vision, strategic plan; innovation and creativity rewards system, open and frequent dialogue, the right mix of people and esprit de corps manifested in teams that work together effectively, sense of urgency, and respond to need, supportive management, willing to take risk and encourage fresh thinking. Rivalry is an external factor and depends on the business environment. As potential rivals, one may recognise competitive companies and in the view of destinations also other destinations with similar product. Competition has always been one of the most important drivers. It is nowadays essential for the entities active in tourism to focus on their authenticity.  Demand conditions have already been described above. Attention should be paid to the customers’ wishes and expectations. It is also fundamental to understand the decision- making process influencing the choice of holiday by customers. There are many factors influencing this process. Well-understood customer behaviour and needs help to create a successful development.  Related and supporting industries can influence tourism sector in many ways. Tourism is connected to a lot of economic sectors. For instance developments in technologies or IT industry change communication among the tourism actors and affect trends.  The forth driver included in this model is factor conditions. It is represented by quantity, quality and accessibility of human, physical, capital, infrastructure and knowledge resources. 29

Figure 4 Sources of Innovation in Tourism Adapted from Porter’s Diamond Model

Firm Strategy, Structure, and Rivalry

Factor Sources of Demand Conditions Innovations Conditions

Related and Supporting Industries

Source: Porter (1990)

In addition to the aforementioned drivers, Hall and Williams (2008) add individual entrepreneurship and role of the state. Carayannis and Gonzalez (2003) also noted the importance of willingness of governments to innovate and government support for research and development. This support may be represented by innovation networks and clusters. Authors point out the necessity of protection of intellectual property rights and the existence of social control, too.

Hall and Williams (2008) declare that the drivers of innovation vary over time and space, and between different types of tourism activities. There are also differences between types of tourism actors. Entrepreneurs have different structure and fields of competence. Besides them, tourism organisations operate in the sector and public entities play an important role. Each of these subjects has its own goals and approaches innovations uniquely.

Gajdošíková (2017) introduces the following as reasons of innovations in destinations that have built both general infrastructure and tourism infrastructure:

 Changes in the external environment, in particular economic and security crises, demographic characteristics, changes in visitors’ preferences and values.

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 Climate change and efforts to ensure sustainable development, focusing on the use of renewable energy sources.  Efforts to increase the positive economic, environmental and social effects and eliminate the negative effects of tourism on destination.  Strengthening cooperation and efforts to present destination as a unified unit.  Decrease in the number of visitors due to the emergence of a new, attractive competitive destination.  Supporting domestic tourism due to lower sensitivity of domestic visitors to changes in foreign exchange rates.  More demanding needs, requirements and expectations of visitors, focusing on information technology and the growth of service quality.  Satisfying the needs and improving the quality of life of the local inhabitants in the destination.

2.2. Barriers of Innovations in Tourism

Besides the drivers and support for innovations in tourism there are also barriers that stay in the way of development. Barriers of innovations in tourism can be divided in two groups: external and internal.

As it is evident by the name, existence of external barriers depends on external environment. The first obstacle in this group is easiness of copying. Hall and Williams (2008) note that interactions in tourism industry are necessarily highly visible. This causes problems for innovative firms. Innovations are often associated with high costs and risk which are undertook by this subject. In the case of bad decision and unsuccessful innovation the company may have financial problems or even crash. On the other side, in the case of successful innovative project, it is not difficult for competitors to copy the innovation. The difficulties of patenting decrease the efforts to innovate (Hall and Williams, 2008).

The second external barrier is customers. It may seem chaotic because the customers are one of the drivers of tourism innovations. One has to understand that there are different types of clients. Some of them are described in the previous chapter. These people expect newness, like changes, are open-mined and want to try new products or services. Another type of customers prefer

31 what they know – already visited destinations and hotels or even eaten meals. Gajdošíková (2017) points out that these customers are searching only for a proven product in the belief that it is of good quality. For the innovators is important to recognise their clients’ needs and desires. If the majority of core clients is conservative and does not want any change, the innovation may cause their lost.

The last external barrier is the fact that in tourism sector there is prevalence of public goods for which no direct user fees can be charged. The characteristics of public goods is “non- excludable” and “non-exclusive”. It means that their use cannot be limited to those who pay and that their use by one individual does not exclude them from being used by others. Hall and Williams (2008) show as an example promenade along the sea front. If one private firm invests in such project, it would be impossible to exclude “free riding”. As a result, individual firms will be unwilling or unable to invest in some types of innovations. Hall (2005) points out the state intervention as a solution for such types of tourism innovations.

The internal barriers originate in individual organisations. One of them is considered to be the staff (Gajdošíková, 2017). It is essential that own employees know and accept the innovations. In the best case, they are the part of the project. They see the product from another perspective and can predict problems that do not have to be seen by innovators. Employees are also closer to customers and can predict their reaction. Another positive of their involvement in the innovation of the company may be the increase of their motivation. In the case that the staff is not involved in the process or is even against the innovation, it may cause problems. In the bad case, the innovative project can be slowed down or stopped.

Gajdošíková (2017) refers to other two internal barriers: small size of enterprises and little financial resources available. The majority of enterprises active in tourism sector has small size and therefore also limited finance. As already noted, innovation may be risky. Besides the lack of financial capital there is also often lack of creative ideas and motivation to innovate.

From a bigger perspective, Hall & Williams (2008) add the resistance from elites to innovate as another barrier. The innovations may be viewed as disturbing the status quo. Authors discuss lack of courage by government representatives faced by opposition and fear of electoral consequences too. Short-term view and rigidity of hierarchical structures also do not support innovative projects and development.

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2.3 Classification of Innovations

There are many views on classification of innovations. Depending on whether the innovation occured within, or departed from existing technologies and practices, Schumpeter (1934) recognised two types of innovations: radical and incremental. Chan et al. (1988) splitted innovations between three categories: incremental, distinctive and breakthrough. Incremental innovation in their view is for example reducing waste in hotel or speeding up baggage handling at the airports. Distinctive innovation usually demands adaptation of consumer behaviour, for instance advanced purchase of discount travel tickets. The last category are breakthroughs that require new approach on clients or organisations side (e.g. electronic ticketing). 4 types of innovation are suggested by Abernathy and Clark (1988). The first one – niche is based on use of already existing technologies on new markets. The second one is already noted by other authors – regular (incremental) innovation. The third innovation type is revolutionary and includes use of new technologies but without impact on entire industry. The last type – architectural influences entire industry sector. The Oslo Manual (2005 in Gajdošíková, 2017) gives its own guidance on how to distinguish whether it is an innovation or not. The minimum requirement is that the product, process, marketing or organizational method is new or improved. A common feature of innovations is that they do not only have to be discovered (inventions) or invented (ideas), but they can also be implemented in practice. Division of innovations by Oslo Manual is shown in Figure 5.

Figure 5 Division of Innovations by Oslo Manual

Product innovations Technological innovations Process innovations Innovations Marketing innovations Non-technological innovations Organizational innovations

Source: The Oslo Manual, 2005 in Gajdošíková, 2017 In addition to product, process, marketing and organizational innovations, Gajdošíková (2010) adds another one type – institutional innovations that are in tourism sector understood as the search for new partnerships, associations and organisations.

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Kim and Mauborgne (1999) bring to the discussion about types of innovations the term value innovation. Hall and Williams (2008) emphasise that innovation should enhance the value of the product or service in relation to costs. Authors also declare that increase of the value should be made by improving quality of offer or by decreasing price for the customers, or both of these. From a production perspective, a successful innovation maximizes economic output, but from a welfare perspective, innovation increases social and environmental returns (Hall and Williams, 2008).

The last classification that I would like to mention is the difference between the so-called low- road and high-road innovations. One may describe low-road innovations as the easier ones. These types of innovations do not bring significantly new ideas and big changes. Organisations or entire regions that use them usually focus on “traditional” location factors such as land, labour, capital, infrastructure and locational advantage (Hall and Williams, 2008). They spend the time and their energy to catch up the territorial competitors and often prefer short-term goals. Malacki (2004) investigates the importance of long-term, high-road strategies. For such strategies, knowledge is essential. It is of course harder path to follow and it may take a long time to achieve the desired results. Flagestad (2002) defines building of specific learning systems as fundamental for release of innovative capacity. Cooke (2001) believes that regions that focus on utilisation of agglomeration economies, institutional learning, associative governance, proximity capital and interactive innovation may become successful. Peters, Pikkemaat (2005, in Gajdošíková 2017) claim that it is not sufficient for the success of a destination and its development if the innovations are introduced only in individual tourism companies, because the customers perceive the product comprehensively and their needs are satisfied by the whole network of services that the entities in the resort create. Hall & Williams (2008) are convinced that only a very small number of regions can attain the characteristics needed to be a 21st-century economy. A large number of the necessary ingredients (i.e. in particular, those that are not ubiquitous) cannot simply be imposed from the top down, but grow out of the region or community (Malecki 2004). Nordin (2003) and Decelle (2004) concluded that the success of innovations introduced at the destination is affected by social-glue and business cooperation, which leads to increase in competitiveness of the destination (co- opetiton).

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2.4 Learning Region

A lot of authors mention the need of knowledge in connection to innovations. Lundvall (1992) points out that focus on innovation in modern economies is based on notion that knowledge is understand as the most important resource and learning the most important process. A Learning Region addresses the learning needs of its locality through partnership. It builds on the strengths of its social relationships to enable development (Braun, Hollick, 2008). Cooperation inside of the region is important but also difficult issue because the individual subjects often compete against each other. Michael (2006) claims that the experience in tourism is provided by a bunch of tourism and non-tourism entrepreneurs who have to walk a very fine line between competition and collaboration. Gajdošíková (2017) emphasize the large number of stakeholders in destinations, although just a few of them have comprehensive information and understand the external environment and know the destination’s primary offer. Tourism enterprises are closer to customers and know their needs and wishes but they are busy running their own business and do not focus on the destination’s goals. Therefore, it is important to collaborate and formulate common vision and strategy and innovate in such a way that contributes to the development of destination as a unit. The innovation process at the destination with inter- organizational network consists of the following activities (Gajdošíková, 2017):

 Exchange of knowledge  Exchange of experience  Joint decision-making on regional competences  Pooling of resources  Acquisition of techniques and procedures

2.5.1. Strategic Product Development Process

In order to design innovative products in a sustainable, specific way, destination have to build on the regional strengths and core competencies of the region (Pechlaner et al. 2005). A destination must identify what is characteristic of it, what makes it unique and what constitutes its primary offer. It should also find out what makes it different from other destinations (Gajdošíková, 2017). Core competencies are to be understood as a combination of specific skills and resources that develop over time through experience and collective learning processes

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(Hinterhuber 2004). After core competencies are characterized by the fact that they are difficult to imitate, contribute to a high customer reach and can be transferred to other markets, they form the basis of the region’s sustainable competitiveness (Hamel and Prahalad 1994, Ruehli 1995, Rasche 1994). The specific competencies of the regional players from tourism, culture and business must be bundled into regional core competencies and developed within the framework of an integrated location strategy (Pechlaner et al., 2006). A destination must have a strategic plan with a vision and a clear definition of the market position to ensure a common and correct direction and to innovate in accordance with these principles, which must be known to all stakeholders (Gajdošíková, 2017). In the end, the values of the core competencies form the basis for the offer and product development. To determine the uniqueness of a destination, it is necessary to define the characteristic products and services and identify which entities need to be involved in their creation. From the identity-creating values that are borne by the entire region, topics for core products can be derived, on which, finally, marketable products and offers can be created (Figure 6).

Figure 6 Strategic Product Development Process

VALUES Core competencies

OFFERS TOPICS Packaging & Core products pricing

PRODUCTS

Attraction points

Source: Pechlaner et al., 2005 in Pechlaner and Fischer, 2009

In order to ensure a continuous innovation process in tourism, a destination must always pay attention to obtaining information, using it for innovation, monitoring and evaluating the effects of implemented innovations (Gajdošíková, 2017).

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3 Tourism Product in the Chopok-South Micro-Region

3.1 Basic Definition of the Chopok-South Micro-Region Figure 7 The Chopok-South Micro-Region

Chopok-South micro-region is by administrative division formed by the cadastral territory of the following ten municipalities: Bystrá, Dolná Lehota, Horná Lehota, Jarabá, , Mýto pod Ďumbierom, Nemecká, Podbrezová, Predajná and Ráztoka. Geographically, its natural boundaries in the north form the peaks of the and on the southern side the Source: Map edited by myself river and partly .

From the perspective of the wider links of the region, it is necessary to perceive the connection to the town of as well as the municipality of Valaská, which are located in the direct neighborhood of the municipalities. In addition, the city of Brezno takes on the role of a centre in terms of offering services, shopping opportunities, public, educational and cultural institutions.

Figure 8 The Chopok-South Micro-region (Satelite View)

Source: Google Maps,2020 37

3.2 The Chopok-South Micro-Region as a Part of the Slovak Tourist Regions

Chopok-South is a part of the Horehronie region according to the definition of tourist regions. The division of tourist regions took place during the regionalization of tourism in 2005 done by the Ministry of Economy of the Slovak Republic. Regionalization is a document that defines 21 regions of tourism in and determines their categories. Regions are defined in terms of the nature of their internal links, coherence and homogeneity. In view of the natural and cultural-historical conditions, the main tourism activities and their importance have been identified. Regionalization makes sense for selecting the tourism activities that have the greatest potential in a given region for the allocation of investment resources for development activities and marketing activities.

Figure 9 Regionalization of Tourism Regions in Slovakia

Source: Ministry of Economy of the Slovak Republic, 2005

The Horehron region was selected as one of the five regions of international importance. The following activities are considered to have the highest long-term potential: downhill skiing and ski tourism, cultural heritage, stay in a forest or mountain environment, hiking, cave visits and speleology and, finally, rural tourism.

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Regarding the absolute and percentage number of beds and overnight guests, the Horehron region had at the time of regionalization 6770 beds available, which represents 5.8% of the bed capacity of the Slovakia. 5.1% of Slovak guests and 3.1% of foreign guests stayed in the region. The average number of overnight stays was 3.1 nights.

The total capacity of the Chopok-South micro-region is almost 2500 beds, which represents less than 37% of the beds of the entire Horehron region.

3.3 The Chopok-South Micro-Region Environment

3.3.1 Natural Enviroment

The cadastre of the individual villages lies mostly in the area of the Low Tatras, which represent a massive mountain vault that stretches in the direction east-west in the length of approximately 100 km. From the south, the region is bordered by the Slovak Ore Mountains. It is this natural environment that is a main attraction for visitors to the micro-region and a prerequisite for its potential development.

The negative aspect of the natural environment of the region is gudron pits – a landfill of non-recoverable chemical waste generated during oil refining at Petrochema Dubová, whose roots date back to 1964 when waste was started to be exported to these pits. The pits are located on the territory of the municipalities of Predajná and Nemecká. In the village Predajná, these pits are ungrounded and are freely accessible. In the village Nemecká, they are located in its local part of Dubová directly in the closed area of the company Petrochema Dubová. This waste represents a significant environmental hazard that has been highlighted for years, but there is no solution yet. In case of persistent rain, pollution of the surrounding area may occur, endangering the municipalities, the river Hron and sources of drinking water (.Týždeň, 2009).

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3.3.2 Political / Legal Enviroment

From a political point of view, tourism is percieved as one of the major chances and opportunities of the whole country. The goals of the Tourism Strategy set for 2020 were (Ministerstvo dopravy, výstavby a regionálneho rozvoja Slovenskej republiky, 2013):

 To focus on innovation in existing tourism products based on trends in tourism demand.  To make better use of the natural and cultural-historical potential of Slovakia by supporting destinations where there already is a stabilized demand of key markets (not to promote new destinations with unstable market segments that will not produce sufficient synergy effect).  To promote destinations with sufficient natural and cultural-historical potential in lagging regions with high unemployment rates, thus creating new employment opportunities.

In terms of environmental care, the Government of the Slovak Republic is committed to the development of environmental education and regulated tourism, which will require further development of infrastructure with regard to nature and landscape protection, expansion of the network of nature trails, geoparks, information and training facilities.

In the previous government period 2016-2020, the tourism sector in the SR was supported by the government coalition with recreational vouchers. It is a form of benefit for employees of companies and self-employed in the territory of the Slovak Republic who have worked more than 2 years in the company. The company is obliged to reimburse such employees 55% of the costs (up to a maximum of EUR 275) when staying in the Slovak Republic for 2 or more nights. The measure valid from January 2019 aims to increase the number of visitors to accommodation facilities. After a year of the availability of this benefit, the accommodation facilities confirmed an increased interest in their services by domestic visitors.

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3.3.3 Technological Enviroment

The technological environment is changing daily and offers many new opportunities for tourism companies. At the same time, the constantly evolving and advancing technology industry can be perceived as a threat by technologically poor companies. The Slovak Tourism Development Strategy identifies a problem area that requires a priority solution in tourism, insufficient use of new information technologies e.g. tourism reservation systems including regional level, insufficient interconnection of the network of tourist information centres, etc. (Ministerstvo dopravy, výstavby a regionálneho rozvoja Slovenskej republiky, 2013).

3.3.4 Economic Factors

The Slovak economy has been progressing in recent years. Positive developments are also recorded in the Balance of Payments table below – Receipts and Expenditures in Tourism. From the graph, it is possible to read the constant growth of both revenues and expenditures in the sector. The downside is that in recent years, the scissors between revenue and expenditure are increasingly opening up and the industry is investing less and less money.

Figure 10 Balance of Payments – Receipts and Expenditures in Tourism

Source: National Bank of Slovakia, 2018

One important fiscal adjustment, which is good news for tourism, is the reduction of value added tax on accommodation services. From 1 January 2019, the rate fell from the original 20

41 to the current 10%. The change applies to hotel and tourist accommodation services, camps and accommodation at dormitories and workers’ dormitories.

The economic and industrial structure of the municipality of Podbrezová and the towns of Brezno and Banská Bystrica strongly influences the employment structure of the economically active population in the municipalities of the Chopok-South micro-region. From the point of view of the structure development of workers in the economy, the number of workers in agriculture and industry is decreasing, while the number of employees in services is gradually increasing. According to data from the Slovak Statistical Office, the district of Brezno, in which all the municipalities of the Chopok-South micro-region are located, has a registered unemployment rate of 4.55% (as of October 2019).

3.3.5 Cultural Enviroment

Unfortunately, the Slovak Republic does not pay enough attention to the cultural field. In general, the Ministry of Culture is one of the so-called residual resorts, and in the long term, insufficient funds are being earmarked for the development of cultural heritage as well as for the repair of cultural monuments.

The lack of funds in the cultural area in the Chopok-South micro-region, which is not one of the economically strong regions, is also demonstrated by several cultural monuments that are in an unsatisfactory or even desolate state.

3.3.6 Social Factors

In the Chopok-South micro-region, there are 10 513 inhabitans living at a total area of 306,908 km². The population density is 34 inhabitants per a km². Appendix 1 contains information about specific municipalities in the micro-region. The indicators outlined in the Economic and Social Development Program of Banská Bystrica region show a persistent decline in birth rates, increased migration and gradual population aging (Agentúra európskych grantov a fondov, 2015).

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For many years there has been a noticeable outflow of university educated people outside the micro-region municipalities, mostly permanently, to a lesser extent they are at least commuting to work. According to data published on the website of the Office for Slovak Living Abroad, drawing on a survey of the Business Alliance of Slovakia, 300,000 citizens work in another country for a shorter or longer period of time, which is approximately 5.4% of the current population of Slovakia. Another 30,000 young people study abroad. According to the research, the reason for young people to move abroad to work and study is due to high unemployment and poverty rates, especially in rural areas. The desire of young to live abroad is also reflected in the problem of a lack of skilled and capable people for local companies (Úrad pre Slovákov žijúcich v zahraničí, 2019).

The exact determination of the number of young people moved from the Chopok-South micro-region is complicated because many have kept their permanent residence address unchanged for many years and thus formally act as citizens of the region. However, I can say from my own observation and knowledge that most young people up to 30 years of age who went mainly to study to another city within Slovakia or outside the country have not returned, not even after graduation, and they return to the region only occasionally for a few days due to family and friendship relations.

3.4 Primary Offer of the Chopok-South Micro-Region

3.4.1 Natural Conditions

Geomorphological Conditions

The cadastre of the individual villages of the micro-region lies mostly in the National Park of the Low Tatras (NAPANT). Out of the total NP area, 110,162 hectares form the protection zone and 72,162 hectares are the territory of the national park. The territory itself falls under protection level 3 and the protection zone falls into category 2. The second level of protection includes the municipalities of Bystrá, Mýto pod Ďumbierom and Ráztoka. The region also includes the Skalka National Nature Reserve (the territory of the villages of Dolná Lehota and Jasenie) and Predajnianska slatina (Predajná), a natural monument hill Hrádok (Horná Lehota), the Pod Latiborskou hoľou nature reserve (Jasenie), the protected bird area of the

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Low Tatras (Jasenie), protected area Mitrová (Predajná), natural monument Jajkovská rubble (Predajná) and natural creation of Predajnianske waterfalls (Predajná). At the same time, the village Nemecká also belongs to the area of the Slovak Ore Mountains.

The relief of the micro-region is created mostly by the rugged mountains of the Low Tatras. The name of the peak Chopok (2024 m) is the most characteristic one associated with this area. Chopok is the third highest peak of the Low Tatras after Ďumbier (2043 m) and Štiavnica (2025 m). In addition to the Low Tatras, the largest mountain range in Slovakia -– Slovak Ore Mountains – extends into the cadastre of municipalities, namely the Vepor Mountains.

Table 4 Geomorphological Conditions of the Chopok-South Micro-Region

Valleys Kumštová, Veľká Trojica, Mlynná,Vajskovská Peaks Lajštroch, Besná, Králička, Malý Gápeľ, Veľký Gápeľ, Chopok Caves Bystrianska jaskyňa Waterfalls Predajnianske, Vajskovské Source: NAPANT, 2020

The Bystrianska Cave is situated in the village of Bystrá. It is known for its remarkable rock shapes and the underground spaces, the presence of sintered fillings, as well as favourable climatic conditions for speleotherapy treatment. Near the village Predajná there is another cave unavailable for the visitors with finds of old containers and Roman coins.

The relief structure is complemented by two waterfalls– Predajnianske waterfalls that are declared a natural monument and Vajskovske waterfalls located in Vajskovska valley.

Climatic Conditions

The micro-region is part of slightly cool and slightly warm and humid climate area, depending on the altitude of specific places.

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The Low Tatras have a continental climate but without its usual extremes. In the higher areas it has a high mountain character, it is cold and has plenty of precipitation. The average temperature on the main ridge is about 0 °C. The climate is relatively dry, drier than in the , the annual amount of rainfall being 85-100 mm, as the precipitation altitude increases.

Snow is often falling at the end of August, but it usually disappears quickly. Permanent snow usually begins to appear at the end of September and it often does not stop snowing until May. In the northern valleys, it stays until the end of May and in the basins often until late summer or even the whole year (in the valleys below Ďumbier, especially Štiavnička and Ludárova dolina). Snow in the basins lasts about 70 days, in the mountains considerably longer (Magurka 140 days), on the ridge and the northern exposed valleys even over 200 days.

Ongoing global climate change has a significant impact on this micro-region as well. The Slovak Republic’s climate change adaptation strategy, updated in 2018 by the Ministry of the Environment of the Slovak Republic, acknowledges the warming trends in all locations and climatic areas and also mentions the following observations (1881-2017):

 An annual average air temperature increase of about 1,73 °C.  Decrease in relative air humidity (in the south of Slovakia since 1900 by 5%).  Changes in climate variability (in particular rainfall totals – examples of which are extremely humid and dry years alternating at short intervals).  Decrease of all characteristics of snow cover to the height of 1000 m above sea level almost in the whole territory of the SR – at higher altitude, its increase was recorded.

One of the general conclusions of further development of climate in Slovakia formulated in the strategy document is that the weather is expected to be warmer in winter, up to 900 m above sea level, the snow cover will be irregular and winter floods will occur more frequently – snow cover will probably only be seen higher than 1200 m above sea level (Ministry of the Environment of the Slovak Republic, 2018).

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This trend causes a problem for winter resorts in the micro-region – the centres situated in lower places (Ski Mýto & Ski Tále) do not have enough snow cover (and sometimes they are even not able to produce artificial snow because of low temperature). A higher-situated winter sport center Chopok-South did not have enough capacity during this season due to high traffic.

Hydrological Conditions

The largest watercourse of the region is the river Hron, which flows through the villages of Podbrezová, Predajná and Nemecká. Smaller brooks flow through the other villages of the micro-region (e.g. Jaseniansky, Ráztocký, Vajskovský brook). In Jarabá, there are 3 mineral water springs – Jasienok, Bachláč and Kumštová.

There are several water areas in the region: Krpáčovo artificial water reservoir, Richtárovo water reservoir and Tále natural water reservoir. The watercourses of the micro-region – the river Hron, the Jaseniansky brook, the Vajskovský brook, the Krpáčovo and Richtárovo water reservoirs are of a high quality in this area, as evidenced by the presence of trout fish.

Biogeographical Conditions, Fauna and Flora

In the micro-region, there are several protected nature areas with different degrees of protection (NAPANT, Eviroportal, 2020):

 Skalka National Nature Reserve (2659.81 ha) – The area is formed by a mountain, partly influenced and modeled by glacier, with the occurrence of several rare species of plants and animals, especially . Several hiking trails pass through the area.  Pod Latiborskou Hoľou National Nature Reserve (161.23 ha) – The reserve is one of the last relatively original forest complexes in the Low Tatras.  Predajnianska slatina Nature Reserve (11,35 ha) – The Nature Reserve was declared in 1983 to protect the conservation of important wetland communities of plants and animals with the representation of protected and endangered species for scientific, educational

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and cultural purposes.  Protected bird area of the Low Tatras – The area was created to preserve the habitat of bird species of European importance and the habitat of migratory bird species.  Natural Monument hill Hrádok – It is the place where trilobite excavations were found.  Natural Monument Jajkovská sutina rubble (50,91 ha) – The natural monument was established in 1998 to protect natural rock debris – rocky seas at various stages of development. It is a unique type of habitat in the Slovak Ore Mountains. The area belongs to the fifth degree of protection.  Natural Monument Predajnianske waterfalls (11,70 ha) – The natural monument was declared to protect a significant geomorphological relief (cascading waterfalls, rocky seas) and well-preserved plant and animal communities of the foothill stage on the crystalline bedrock. The natural monument also features the technical monument “Kelemen Tunnel”, the only tunnel in Central Europe built on a forest road.  Protected area Mitrová

Fauna

Animal life here is very varied and includes almost all western and alpine species. In the vast forest zone there are plenty of undisturbed places for the life of large beasts such as bear, , , but also others like fox, marten, polecat, weasel, badger, otter and rare mink. The most important hunting animal is deer. In a smaller number, there are deer and to be seen in the area of this micro-region (NAPANT, 2020).

Flora

Depending on the height zonality, the vegetation is organized into vegetation zones: submontane, underland, submontane zone; forest, montane zone 500-1550m in the south and 400-1450m in the north side of the mountain range (its upper boundary decreases from east to west); creeping, subalpine zone between 1550-1800m, respectively. 1450-1760m; the highest mine, alpine zone reaching to the highest peaks and ridges. Plantation in the Low Tatras is a set of distinctive communities of the Western Carpathians. It is characterized by the occurrence of numerous endemic species of the Carpathians, as well as by a high proportion of alpine species (NAPANT, 2020).

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3.4.2 Cultural and Historical Conditions

Architectural Monuments

Architectural monuments of the Chopok-South micro-region are mostly represented by sacral buildings. Since it is a region with a high proportion of religious people, there is at least one church in each municipality. The cultural and historical heritage of the area is complemented by secular monuments and technical works, some of which have been declared technical monuments. Appendix 5 contains the table of Architectural Monuments – world monuments, sacral monuments and technical works.

Folklore

Folklore traditions and customs, whether in Figure 11 Folk Museum in Nemecká tangible or intangible form, have been part of the daily lives of the inhabitants of the region for many years. Later, customs and traditions slowly disappeared. Fortunately, the trends of recent years have returned to their original folklore, and therefore it is currently the best time to revitalize traditions.

In the villages of Jarabá and Mýto pod Source: Podpor remeslo na Slovensku, 2020, Ďumbierom one can find local folklore in the https://podpormeremeslanaslovensku.sk form of folk architecture – wooden log houses and in the village Nemecká there is a Folk Museum, which contains a collection of scale models of folk buildings (houses, churches) made of wood and various other folk objects (see Figure 11).

Archaeological Sites

The following archaeological sites are located in the Chopok-South micro-region:

• The largest archaeological site in the region is Hrádok near Horní Lehota, a place where trilobites from the Celtic times were discovered. 48

• In the village Nemecká there is an archaeological site Hradisko. • The village of Ráztoka has a national cultural monument registered under the name Hradisko Ss / 2190 in the cadastral area, which is almost non-existent at the moment. It is a site of a hillfort with settlement from the Bronze Age, the Younger Iron Age and the Middle Ages.

Historic Places

In several municipalities of the region there are important historical sites as well as places of national history, as their inhabitants were actively fighting during World War II. There were often hiding partizans in the area, which the inhabitants now remember thanks to the memorials. The following table shows the exact list of historical places in the micro-region.

Table 5 Historic Places

Historic Places Munucipality Name of place/monument Dolná Lehota  Former partisan hospital and Memorial to the fallen in the and World War II in Krpacovo (Memorial II. Czechoslovak Parachute Brigade) Horná Lehota  Memorial House – Chalupka’s Birth House,  Monument to the fallen in World War I and World War II Jarabá  Monument to the fallen in the Slovak National Uprising Jasenie  Memorial site of the anti-fascist resistance is located in the Lomniste valley at the foothill of Chabenec (the General Headquarters of General Asmolovov’s partisan movement housed here in 1944-1945),  An important historical figure of the region – Jan Šverma, who died in the village,  Memorials to fallen victims of World War I and World War II

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Nemecká  Anti-Fascist Resistance Memorial – memorial room and torso of the kiln (lime kiln) in which 900 people were burned,  Memorials to fallen victims of World War I and World War II,  Monument to the liberators of the village Predajná  Memorials to fallen victims of World War I and World War II Source: Websites of the municipalities, 2020

Cultural-Educational Facilities

For the development of cultural and social life, the municipalities of the Chopok-South micro-region use mainly their cultural houses (Bystrá, Dolná Lehota, Mýto pod Ďumbierom, Nemecká, Podbrezová, Predajná, Ráztoka), specifically their cultural and social halls (Horná Lehota, Jasenie). Out of the municipalities in the micro-region, only Jarabá has no cultural or other type of community house at its disposal. There is a permanent cinema in Podbrezová with 364 seats. The village also has a Metallurgical Museum, which documents the ironmongery tradition of the village. Neither of the villages of the micro-region has a theater, an open-air museum or an amphitheater. In the village of Ráztoka there is the educational trail “Three Wells”.

3.4.3 Organized Events

Sporting Events

The Chopok-South micro-region is a center of winter sports. There are many sporting events organized during the season. The Mýto pod Ďumbierom Winter Sports Center organizes downhill skiing events and the Tále Sports Center hosts a golf championship on its 18-hole golf course.In recent years OOCR Horehronie has organized and co-organized various events. Winter events include Krojovka on the slope (Mýto SKI & Bike) and Happy Ski Tale Day (Ski Tale). The snow events also include international racing on “krňačky” on the south side of Chopok. Krňačky are wooden sleds whose original purpose was to transport wood or hay from the mountains to the villages (see Figure 11). Today they are a fun adrenaline experience for racers and equally enjoyable for visitors.

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Figure 12 Horehronie FIT DAY & Krňačky

Source: OOCR Horehronie, Jasna, 2020

Horehronie FIT DAY (Figure 12) is an original summer sporting event that combines hiking, cycling and open-air group exercises in the fresh Low-Tatra’s air. The event took place over the last two years in the Tále recreation area. Participants could choose from sports such as jumping, tabata, yoga (relax, power), pilates, body work and many more.

A similar sporting event organized by OOCR Horehronie is Biketour Horehronie, during which the Slovak Uphill Championship takes place in the Tále locality (the start takes place at Tále – and the last stop is at the Srdiečko Hotel).

In addition to these major sporting events, smaller sporting events and competitions are regularly held in local communities (see Appendix 6 Smaller Sporting Events and Competitions).

Business Events

Congresses, exhibitions, trade shows, salons or annual markets are not characteristic of the Chopok-South micro-region. However, in modern accommodation facilities that are part of tourism centers there are congress halls and places available for business events, therefore, there is potential for the development of such events in the region.

Religious Events

Smaller religious festivities are held in the village of Predajná but they are of no greater significance with reach outside the region.

During the Easter holidays, the OOCR Horehronie participates in organizing the Easter Joy event in Tále. However, this event is not explicitly religious and rather presents folk culture to 51 visitors and guests. Easter Joy is the only spring event in the region and enjoys popularity among guests. During the festivities, visitors can experience typical Easter traditions, enjoy local specialties, buy handicrafts and enjoy cultural folklore.

Social and Political Events

The most popular events among the locals are the Days of the Municipality. Municipalities celebrate them once a year and usually include music performances, sporting competitions, children’s programs and often also traditional food cooking competitions. In recent years, the Days of Bystrá in cooperation with the cluster and OOCR Horehronie merged with the Tourist Days of Horehronie. This event was more strongly promoted and more money was invested in it. In the village there was built an amphitheater, where the cultural program took place. The celebrations also included craft markets. Craft markets have their representation in summer and in winter, when they are also organized in the amphitheater in Bystrá.

Several municipalities of the micro-region organize gastronomic events during the year. The village of Bystrá prepares the best sausage competition yearly. The municipality of Horná Lehota organizes an event for the visitors where they serve goulash and Christmas borscht soup. In Mýto pod Ďumbierom, an event called Matúšove Hody is celebrated. The Ráztoka municipality is preparing the Cherry Cakes Contest. Cherry is a symbol of the village. Besides this, the longest strudel in the region contest takes place in Ráztoka every year. In Jasenie there people are organizing even two events of this nature – the competition for the best tripe soup and Jasenské baranie hody.

3.5 Secondary Offer

3.5.1 Tourism Suprastructure – Accommodation Facilities

Based on the data related to accommodation facilities listed in the Program for economic development and social development of the Chopok-South micro-region (Agentúra európskych grantov a fondov, 2015), a total of 43 facilities are offered in the micro-region. The total capacity is almost 2500 beds. The facilities are of different categories as well as classes. The following table provides an overview:

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Table 6 Accommodation Facilities

Number of accommodation Accommodation capacity Category & class facilities (Number of beds) Hotel **** 1 197 Hotel *** 3 195 Hotel ** 2 180 Hotel * 2 70 Mountain hotel ** 2 167 Mountain hotel * 2 194 Pension *** 1 15 Pension ** 8 305 Pension * 2 36 Pension 1 15 Road hotel * 1 15 Apartment house *** 8 90 Tourist hostel * 1 26 Tourist hostel 4 165 Cottage * 3 97 Cottage 2 150+ Lodgings - 298 Camp 1 150 Source: Agentúra európskych grantov a fondov, 2015

The exact list of accommodation facilities with their division by individual municipalities is in Appendix 2.

3.5.2 Tourism Suprastructure – Catering Facilities

In addition to accommodation facilities, many of which provide restaurant services for accommodated guests as well as for non-accommodated customers, 19 catering facilities are available to visitors to the region. Most of these facilities specialize only in hospitality services. Restaurant services are represented by huts (koliby), road houses and pizzerias.

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Table 7 Catering Facilities

Type of service provided Number of facilities

hospitality services 12 restaurant services 7 Source: Agentúra európskych grantov a fondov, 2015

3.5.2 Tourism Suprastructure – Tourism Centres in the Chopok-South Micro-Region

The Chopok-South Resort

The Chopok-South area is located at the end of the Bystrá valley, which is bordered by the slopes of Ďumbier, Baby, Deresše, Chopok and Veľký Gápeľ.

The lifts rise from 1080 m above sea level up to Chopok up to 2004 m above sea level. The Chopok-South Resort belonging to the Jasná Resort (Tatry Mountain Resort group) is divided according to its altitude into two smaller resorts:

 Srdiečko (from Krúpová to Kosodrevina), altitude: 1080-1494 m above sea level  Kosodrevina (from Kosodrevina to Chopok), altitude: 1494-2004 m above sea level

The conditions for skiing are very good. Chopok-South is especially popular among free style skiers. Chopok-South is connected by cable car to ski resort Jasná and Chopok-North, both ski resorts can be bought by one ski pass. Chopok-South Ski Resort offers a total of 6 lifts and one chair lift. Total hourly transport capacity is 5295 skiers, which is about a quarter capacity compared to Jasná, Chopok-North.

The resort offers activities even outside the winter season. During the summer, visitors can enjoy a cable car trip to Chopok, or take the cable car to the north side to Demänovská Valley in . It is also posssible to use mountain carts. The program is also suitable for families with children who can take the so-called Dragon’s way to Chopok. The route consists of ten stops where various activities are prepared (e.g. courage test, jungle gym, first aid). At the same time, children receive information about the Low Tatras and also about safety when hiking or weather in the mountains. Appendix 6 contains winter and summer map of Chopok–-South Centre.

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The TMR is currently trying to obtain permits for a new investment in the Chopok-South area. This group wants to build 2 new slopes and cable cars, a new hotel and 500 parking spaces. The reason behind this is argued insufficient capacity and big interest from customers. The investment is not yet approved as it would be necessary to cut down trees and scrub in the third protection zone of the .

Ski, Golf & Hotel Resort Tale

Tále is a recreational, tourist area and ski resort. It is located at an altitude of 700 m above sea level. The resort has year-round use. During the winter season, it offers visitors 2 ski lifts for adults and one children’s ski lift. At the same time, suitable conditions for cross-country skiers (4 km Gray Bear circuit and 1 km Little Bear circuit) are created. Winter sports lovers can enjoy skiing and cross-country skiing even after dark under artificial lighting. Tále also boasts the first 18-hole championship golf course in Slovakia. The Gray Bear Golf Course has been operating since 2002, in 2019 it received a quality certificate with a maximum of 5* for the services provided. Appendix 7 contains winter and summer map of Ski, Golf & Hotel Resort Tále.

Mýto Ski & Bike

Mýto Ski & Bike offers groomed slope for beginners and more experienced skiers. In the resort there are 5 lifts, cross-country trails, ski school and ski rental and service. During the summer months, there are downhill cycling tracks prepared. Rental and service of mountain bikes and e-bikes is also available. Appendix 8 contains winter and summer map of Mýto Ski & Bike.

Krpáčovo

Krpáčovo is a cottage area, recreational, tourist and ski resort in the cadastre of villages Dolná and Horná Lehota. In the resort there is a water reservoir of the same name, which in the summer season serves as a natural swimming pool. Directly in the resort there are accommodation options of different categories. In a quiet coniferous forest there isa large number of hotels,

55 pensions and private cottages. In winter, there are marked cross-country trails and two snow- covered ski lifts directly in the resort. Appendix 9 contains map of Krpáčovo and Ski areal.

Undeveloped Centers with Potential

In the Chopok-South micro-region, in Figure 13 Hradisko and Lomnistá on the Map addition to well-equipped and long-term marketing centres, there are also locations with a large but still unused potential. Two such places are the Hradisko resorts in the cadastre of Nemecká and Lomnistá in the cadastre of Jasenie (see the two red stars marked in the Figure 13 and Appendix 10).

Hradisko

Source: Map edited by myself In Hradisko area currently operates rather a cottage area but there are also 3 entities that provide accommodation, catering and various additional services.

Lomnistá

The Lomnistá Resort is currently in operation at the Relax Hotel Lomnistá providing accommodation, catering and supplementary services. It is mainly used in summer to largely organise summer camps.

3.6 Tourism Infrastructure

Tourist Information Office

The only tourist and information center is set up in municipality Bystrá. In addition to tourist information, TIC is a sales place for the Hohrehronie regional product and 46 different regional producers. Various programs such as the Grandmother’s Summer School are held in the office,

56 where participants could learn about herbal spiral, bee strength, lace making, batik blueprint or mallet lace. During the summer, the information office is open every day from 8 am to 6 pm.

The OOCR Horehronie (Oblastná organizácia cestovného ruchu) is also considering opening another tourist information centre. It is not yet determined exactly where it will be located, several municipalities of the micro-region come into consideration.

Figure 14 Tourist and Information Centre in Bystrá

Source: OOCR Horehronie, 2020

Travel Agency

In Brezno there is the only travel agency selling products focused on Figure 15 STEY the Horehronie region – the STEY Travel Agency. The agency focuses on returning to the traditional values and customs of the entire Horehronie region. Through this travel agency, it is possible to book accommodation in some hotels of the micro-region (e.g. in hotels Stupka or Partizán). At the same time, there are also various activities or packages of services (e.g. the Hron rafting) and recommendations Source: steyslovakia.com for trips within the micro-region (for example Krpáčovo areal).

Congress Halls and Centres

The region is not a traditional venue for congresses or fairs. However, several accommodation facilities have the necessary space and are ready to provide suitable conference facilities. In the largest conference hall, Grand Tále, an event for more than 350 people can be organised.

Currency Exchange services are not available in the micro-region.

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3.7 General Infrastructure

The whole area of the Chopok-South micro-region is equipped with standard general infrastructure.

Local Infrastructure

Food is available to residents and visitors in every municipality. Wider range of shops with different focus is located in larger municipalities in the region, especially in Podbrezová. This municipality also has several small entrepreneurs providing services (hairdresser, massage). Souvenir shops, special sportswear, wellness and SPA services are mainly offered by larger accommodation facilities located in recreation centres (e.g. Hotel Partizán, Hotel Bystrá). Sportswear and sports equipment shop Geo Sport is located in Nemecká. Infrastructure of the town Brezno provides wider shopping opportunities.

Sports and Recreation Facilities and Activities

A wide range of sports and recreational facilities are available in the micro-region. The base usually includes a playground or sports hall in almost every village. Four of the municipalities have tennis courts and three of themhave a fitness centre or a gym. In Bystrá and Podbrezová, there is a skittle alley. During the summer season, there are 2 swimming pools available for the locals and visitors and 2 water tanks are also freely accessible. The indoor pool and wellness area are provided by the larger resorts within their accommodation facilities. As the region is focused on winter sports, winter resorts infranstructe is an obvious solution. For active recreation in the micro-region, there are hiking trails as well as cycling routes built there. The offer of sports facilities is complemented by the possibility of horse riding (in 3 places), fishing (mainly trout fish either on the river Hron or smaller brooks) and hunting (especially deer and roe deer, wild boar or rabbit). Appendix 4 provides a precise overview of sports and recreational facilities and activities.

Medical Infrastructure, Police and Emergency Services and Other Infrastructure

An overview of health infrastructure, police and emergency services and other infrastructure is given in the following table:

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Table 8 Medical Infrastructure, Police and Emergency Services and Other Infrastructure

Medical infrastructure  Pharmacy (Podbrezová) Police and emergency  District Department of the Police Force (Podbrezová) services

 Post office (available in all municipalities besides Dolná Other infrastructure Lehota, Bystrá, Jarabá and Ráztoka)

 Bank + ATM (Podbrezová – Slovenská sporiteľňa) Source: no source listed

Cultural and Social Facilities

There are two escape rooms in the Chopok-South micro-region. An escape room in general is also known as an escape game. The point of this game is to get out of a room in a limited amount of time. To escape, a team of players needs to cooperatively discover clues and solve logical tasks. In Mýto pod Ďumbierom there is an Escape room in operation – Witches /Čarodejnice/. The game can be played by a maximum of 4 people. The room is furnished in mystery style because the story is about an old witch. In Horná Lehota there is Escape room for children called Prdimucha’s Vampire Room (Figure 16).

Figure 16 Escape rooms Witches and Prdimucha’s Vampire Room

Source: Escape Brezno, OOCR Horehronie, 2020

Transport Infrastructure and Transport Equipment

The main connection in the micro-region is provided by the road connections between the towns of Banská Bystrica and Brezno and road number 72 between northern and southern part of

59 central Slovakia. In addition to road transport, the region is also accessible by rail. The railway network is built on the route Banská Bystrica – Brezno and passes through the villages Nemecká, Predajná and Podbrezová. The bus service in the municipalities is provided by the Zvolen transport company. There are direct connections from Podbrezová to all municipalities in the region several times a day. The nearest resident taxi services are located in Brezno (10- 20 km depending on the municipality). Table 9 shows the distance from larger Slovak cities (as potential markets) and the nearest airports.

Table 9 Distance from Lager Cities and Airports

Larger cities / potential markets

City Distance in km Distance in hours/minutes (by car)

Bratislava 255 2,5 hours

Košice 185 2 hours

Banská Bystrica 40 40 minutes

Nearest airports

Sliač – Tri Duby 56 47 minutes

Poprad – Tatry 69 53 minutes

Bratislava – Letisko M. R. 244 2 hours and 24 minutes Štefánika Source: googlemaps.com, 2020

The transport infrastructure is complemented by the Ski bus in winterthat is provided by the OOCR Horehronie. A cyclobus was operating every Saturday during the summer of 2019 and served mostly domestic residents. The ski bus was available in the period of 26.12.219 – 01.03.2020 on weekends and daily during the winter and spring holidays in west and middle Slovakia. Ski Bus served for ski trips as well as for cross-country skiers. It stopped at designated stops and in specific accommodation facilities.

In recent years the e-bikes project has been launched in the region Horehronie. In the area of the micro-region there are 2 rentals (Hotel Partizán and Hotel Stupka). Charging points are built in Bystrá, Krupová and Krpáčovo. In the last season e-bikes were mostly used by visitors of the region (60%).

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3.8 Product Quality and Value of the Chopok-South Micro-Region

The quality of the tourism product in the micro-region is dealt with by the designation regional product Horehronie. Products and services produced in the micro-region which meet the requirements can get the brand coordinated by OOCR Horehronie. The Horehronie regional product can be obtained by manufacturers and service providers since May 2019. In the first call, which took place in June 2019, 16 certificates were submitted. The second call took place in December 2019. Figure 16 shows some products which already got the certification.

Figure 17 Products and Services of Horehronie Regional Product and Logo on the Right Side

Source: OOCR Horehronie, 2020

3.9 Cooperation of Entities in the Chopok-South Micro-Region

The institutional functioning of the tourism sector was regulated by Act No. 91/2010 Coll. on Support of Tourism. At present, the following institutions and organizations are the main bearers of decision-making processes in the development of state tourism policy:

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 Government of the Slovak Republic  Ministry of Transport and Construction of the Slovak Republic – Tourism Section  Self-governing regions – departments for tourism  Regional tourism organizations KOCR (Krajské organizácie cestovného ruchu) and OOCR

Regional tourism organizations (7 of them are KOCR, 37 of them are OOCR which can be also a member of KOCR) are associations of self-governing and business entities in the field of tourism services, which form a common platform for the development of tourism in the destination. Every tourism entity located in the area of OOCR shall have the right to become a member. The use of subsidies is intended to help creating a comprehensive product in the regions and thus increase the number of visitors.

In the Chopok-South micro-region there is OOCR Figure 18 Logo OOCR Horehronie HOREHRONIE. The organization carries out its activities in close cooperation with the Horehronie Cluster and aims not only to raise tax and legalize accommodation through the Horehronie Card Source:OOCR, 2020 project but also to introduce quality and innovative products, run Skibus, Cyclobus, Tourbus, Astrovlak and develop cycling and infrastructure for tourists, or other project intentions leading to the constant improvement of regional development with a direct positive impact on development on the socio-economic spheres in the region. OOCR Horehrenie is also a member of the organization KOCR: Banskobystrický kraj turizmu.

Figure 19 Banskobystrický Kraj Turizmu

Source:Banskobystrická kraj Turizmu, 2020

As of the end of 2018, OOCR HOREHRONIE had the following 12 members: Bystrá, Čierny Balog, Horná Lehota, Mýto pod Ďumbierom, Predajná, , Brezno town, Horehronie Cluster – Tatry mountain resorts, a.s., Tale, a.s., Hotel Partizán, s.r.o. and RABBSK, n.o. (Development Agency of the Banská Bystrica Region). In 2019, the following

62 entities joined the OOCR: municipalities Brusno, Jasenie, Nemecká, Telgárt, Šumiac and business entities: Hotel Zerrenpach, Urban Sisters, Villa Ďumbierka, Pension Tále, Gápel, Ďumbier, SKI Telgárt, Pension u Hanka, Brezno confectionery Bikeland.

In the Chopok-South micro-region there is also the Chopok-South Local Action Group (mainly for the purpose of applying for eurofunds).

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4 Tourism Innovation in the Chopok-South Micro-Region

4.1 Drivers of Tourism Innovation in the Chopok-South Micro-Region

1) Customers

• One of the strong drivers of innovation in the micro-region is customers. Visitors have increasing expectations. Nowadays, the lifestyle is very fast. When there is a free time, which is very rare for many busy people, they want to use it as efficiently as possible. Examples of innovations in this regard include making online product reservations available on one website because it spares time. In the Chopok-South micro-region, OOCR attempts to unify it, but not all local entrepreneurs have joined yet. Therefore, it is still necessary to visit various websites to get all needed information and make reservation.

• Many customers are also becoming interested in the traditions and habits of the places they visit. Innovations from this point of view can therefore bring mainly new products that will bring life closer to the mirco-region and allow visitors to see the life of locals. This also includes the presentation of local crafts. Unfortunately, there are no many people left who can present special crafts. Therefore, it is particularly important to find the people and the way to restore and return crafts to life through tourism. In the micro-region, the efforts of the entrepreneur Ivana Rešutíková have already begun. Through her travel agency Stey, different trips to local families or to local craftsmen are offered who show the participants or teach them about their rare skills.

• Customers demand higher quality every day and more and more of them care about the origin and the way of processing the goods they buy or the food they consume. OOCR Horehronie responded to this trend by creating the already mentioned regional product Horehronie which, however, still does not contain many products and services. In order to promote and build trust in the brand, of course, it is necessary to pay attention to new products that use the brand and constantly check their quality.

• When it comes to product quality, it is also important to keep in mind the need for quality of services. Many today’s customers travel a lot and are accustomed to getting high quality services. They expect the high standards. Threfore, the focus on the quality of services must be

64 taken very seriously by local entrepreneurs in their facilities, whether in accommodation, catering or other services.

• Last but not least, there is a constant desire for something new by customers. Visitors who already know the area and visited the region in the past and are interested in coming back again await news. Both entrepreneurs and OOCR try to respond to this wish by creating new products (e.g. Prdimucha’s Room).

2) Changing climate

• A major influence on the development of tourist centers – especially winter sports centers – has the current climate change. Weather fluctuations are increasing, causing complications mainly to winter resort operators. This year’s winter was not abundant in precipitation, and in low altitudes the air temperature was relatively high. Therefore, operators had to wait for the opening of resorts, which was snowed artificially anyway. Tále and Ski Mýto lost a part of their profits because of the postponed start of ski season. On the other hand, the Chopok-South Resort, which is situated at a higher altitude, could not handle the flood of skiers and on some days during the season they had to stop selling tickets. Because of the overcrowded areas there were several accidents there and the skiing and comfort of visitors decreased. Similarly, there were insufficient parking capacities and the centre did not have a well-developed infrastructure for shuttle services between the centre and more distant parking areas, resulting in lengthy waiting for visitors and their subsequent dissatisfaction.

3) Sustainable state of the environment

• The state of the environment is an increasingly discussed topic. Visitors and public administration are also becoming sensitive of it, which in turn puts pressure on service providers in tourism sectorwho are expected to adopt more environmentally friendly approaches. The answer in the Chopok-South micro-region was to build and support e-bikes as a substitute for fossil fuel-driven transport. The organization has built and will continue to expand its network of rental locations as well as charging stations. The operation of the Ski bus can also be considered as an ecological improvement. Skiers or cross-country skiers do not have to regularly drive between the accommodation and the ski resort during their stay.

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4) Differentiation from competition

• Competition has always been a driving force for innovation. For the Chopok-South micro- region the competition is represented mainly by other Slovak ski resorts. The closest “competitor” is the northern part of Chopok – the internationally-known ski resort Jasná in Demänovská Valley. is an equally important winter sports centre competing from the west. Even smaller resorts such as Ski Čertovica, Ski Telgárt or Ski Čierny Balog can be considered as another competition.

The OOCR Horehronie does not have specific regions identified as competitors. When it comes to competition they try to use the principles of benchmarking in various areas. The organization has identified specific services and products in different regions. These are used as inspiration for own services and product (e.g. comparison of the Horehronie Card with an identical product in Bratislava – Bratislava Card).

5) Demographic change

• The gradual aging of the population in the Slovak Republic is a fact. The growing-older population has other needs and requirements that motivate innovation also in tourism. The contemporary pensioners are often in a good health condition and the number of older seniors who are interested in active leisure activities is gradually increasing. The special offer for senior stays is currently available only in Hotel Partizán in Tále. The accommodation and catering services are accompanied by an unlimited wellness and hydromassage baths.

6) Continuous advancement of technologies

• Another important aspect of the current society is the continuous advancement of technology whose impact is not even reduced by tourism. New technologies used, for example, in transport (e.g. self-driving cars / buses / underground) or in the entertainment industry (e.g. virtual reality) open up opportunities for new innovations of various types. In the Chopok-South micro- region, the use of new technologies is most evident in the use of online reservation systems.

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7) Impact of new media / social networks

• The significant increase in the use of social networks and the role of influencers (especially on the younger generation) is visible even in the Chopok-South micro-region. The classic way of spreading information through own website or on the site of a regional organization is almost a necessity. At the same time, all winter resorts publish up-to-date information and disseminate advertising on Facebook. The Hotel Partizán belonging to the Tále resort even offers an online booking or the purchase of various additional services on its Facebook’s profile (see Figure 20).

Figure 20 Hotel Partizán’s Facebook Page

Source: Hotel Partizans Facebook Page, 2020

In addition to Facebook, several service providers also use the Instagram platform and have their channels on Youtube as well.

OOCR Horehronie also uses cooperation with well-known personalities for marketing activities. One of them is the Slovak biathlete Paulína Fialková, who comes from the nearby Čierny Balog. She represented Slovakia at the 2014 Winter Olympics in Sochi, in 2018 in Pyongyang in South Korea and at the World Cup Biathlon events. Another famous person with whom the OOCR has established cooperation is the Slovak comedian Fero Joke.

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8) Individual effort of individuals

• Entrepreneurship and effort of individuals is a very important player in innovation. An example in the micro-region is the aforementioned travel agency Stey founded by Ivana Rešutíková, which brings an innovative product to customers. The effort to support the individual businesses of entrepreneurs or craftsmen was already mentioned. It is the regional product Horehronie that helps specific products with advertising, distribution and sales.

9) Motivation by the state

• Both the commercial and public sectors can be drivers of innovation. The Ministry of Transport, Rural Development and Regional Development of the Slovak Republic try to motivate tourism subjects to innovate via specific programs. One of them is the Price from the minister for the most successful innovation in tourism.

10) Regional cooperation driven by Regional Tourism Organization /OOCR Horehronie/

• In addition to public administration, the tourism organizations also participate in innovations in tourism. The OOCR Horehronie has brought several technological and non-technological innovations to the region. Based on their activities, they are constantly working on improving and developing the entire region.

4.2 Types of Innovation of Tourism Product in the Chopok-South Micro-Region

Innovations in the field of tourism are natural in the Chopok-South micro-region. There is no special vision or strategy directly related to innovation. As mentioned in the previous chapter, there are several entities in the region influencing the development of the product itself and hence the micro-region.

There have been no breakthrough innovations in the micro-region in recent years – significant modifications that would fundamentally alter the functioning of the system. In recent years, however, there has been a number of distinctive changes, with the introduction of various methods that adapt to customers and current times and trends (e.g. social networking with customers). “Incremental” innovations occur regularly by optimizing service delivery.

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4.3 Barriers of Innovation in Tourism in the Chopok-South Micro-Region

• Lack of funds

One of the biggest problems of the micro-region development and innovation is lack of funds. In particular, the large investments made by the local authorities in the construction of infrastructure are costly. The micro-region would need to invest significantly more money into the expansion and reconstruction of roads and cycle paths.

The amount of money also limits the functioning of the OOCR. Assuming greater financial support, the organization could afford more staff and consequently create more products or expand and improve existing activities.

• Institutional changes / unclear position of tourism in SR

The slowdown of the construction and development of tourism not only in the Chopok-South micro-region but overall in Slovakia is in its unclear position. A few years ago, the activities of the Slovak Tourism Agency (SACR), which worked as an independent state contributory organization, were modified. The SACR was originally established by the Ministry of Economy in 1995. Later, it fell under the competence of the Ministry of Culture of the Slovak Republic. Since 2017, it has been incorporated deeper into the structures of the Ministry of Transport and Construction of the Slovak Republic. During the last parliamentary term, some members of the government mentioned the intention to have a separate ministry of tourism.

• Inconsistent direction of country / non-existent region strategy

From a broader perspective, development is certainly not even aided by a disjointed vision of the country’s direction and attitude in which tourism should be oriented. A positive example from abroad is the State of New Zealand, which has a very clearly elaborated tourism strategy that is adhered to and is gradually developing. So far, there is a lack of a comprehensive conception of direction in Slovakia, which is then reflected in unsynchronized marketing activities and in an unclear definition of competition.

From a narrower perspective within the region, the problem is also the undefined vision of the region and the lack of a tourism development strategy.

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• Bureaucratic obstacles

Too often the bureaucratic burdens are a major obstacle, especially for small entrepreneurs and sole traders who create the basis of tourism.

• Uncertain economic development & incoming economic crisis

The general slowering factor for the development of innovation is the crisis. Recently, the economy of large European countries as well as our Slovak economy has been slowing down. In the micro-region, Železiarne Podbrezová is the main employer and also the owner of several companies active in tourism. The iron industry itself is failing in Europe as it is unable to compete with significantly cheaper products imported from . Any failure of the company would have a very negative impact on the whole micro-region. A big unknown are nowadays also impacts of Corona virus, which are affecting the economy worldwide.

• Outflow of educated people from the region

Human capital is very important for the creation and implementation of innovation. Skilled, creative and educated people are often the carriers of new ideas and practices. Unfortunately, many young people with potential are leaving the Chopok-South micro/-region. Some of them return eventually but many remain outside the region (and often also abroad).

• Citizens’ lack of interest in municipal development

Tourism is also about getting to know the culture and the locals. The local population is, to some extent, the creator of the atmosphere and environment. In the micro/-region, there is a general lack of interest among the inhabitants for active involving in tourism activities. Most people are not interested in public affairs, developing the places where they live or creating innovations. On the contrary, active and enterprising citizens are an exception in the micro- region.

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5 Innovation and Tourism Destination Development

Based on the literature review in Chapters 1 and 2 and the analysis of tourism product and innovations in the Chopok-South micro-region in Chapters 3 and 4, I have elaborated a SWOT analysis followed by proposals that could help with further innovation of the micro-region. I preffer long-term view and therefore I have mainly focused on issues that are essential for development of the micro-region in the next years. I believe that these suggestions may help not just tourism sector but entire region.

5.1. SWOT Analysis

The following SWOT analysis introduces strengths and weaknesses, which were identified and described in Chapters 3 and 4. Besides those, this analysis names opportunities and threats of the Chopok-South micro-region.

SWOT Analysis Strengths Weaknesses - primary offer: geomorphological - general road condition (roads, cycle paths) conditions – valleys, hills, caves; - bad appearance of public spaces hydrological conditions -– river Hron; - brownfields (Petrochema Dubová, medical biogeographical conditions – national nature facility in Nemecká and others) reserves, monuments, protected area, - dilapidated state of several monuments protected bird area - gudron pits - a number of architectural monuments - the fact that the majority of inhabitants is - important contemporary and historical not interested in public affairs figures: Ivan Bella (the first Slovak - lack of vision and long-term strategy for cosmonaut), Jozef Murgaš (inventor, artist), the development of the micro-region Samo Chalupka (writer), Dominik Štubňa- - chaotic organization operating in the Zámostský (writer) tourism (OOCR, Local Action Group - tourism infrastructure – accommodation Chopok-South – special purpose, facilities municipalities on their own) - sport – recreational facilities and activities

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- available human capital (labor / potential staff) -an infrequently visited micro-region (in comparison with the High Tatras) - traditional village life (crop cultivation & animal husbandry – albeit at a low rate) Opportunities Threats - to revitalize the region – employment & - loss of authenticity linking to traditions and customs - depopulation of the region - to return people to the region & change the - unclear direction without a longer-term attitude towards public affairs (taking care of strategy the community / larger community, not just - ecological disaster – gudronpits oneself) - climate change leading to the collapse of - to createregional products – development winter resorts – the emergence of other of smaller entrepreneurs brownfields - to focus on the eco-region - collapse of tourism industry because of - to use the brownfields creatively corona virus

5.2 Tourism Destination Development – Proposals

Based on all gathered information and conclusions of the SWOT analysis I must admit that there are still lacks in tourism sector in the Chopok-South micro-region. In this chapter, therefore, I suggest a few proposals which could help the micro-region with the development in the future.

All proposals include the following informations:

 Need of the proposal – Why is the proposal needed?, What would the proposal solve?  Description of the proposal  Implementer of the proposal – Who is responsible for processing & implementing of the proposal?  Recipients of the proposal – Who would consume, use or benefit from the proposal?  Time range – How long would it take from the beginning to the implementation of the proposal?

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 Processing & Implementing of the proposal  Communication – How would the recipients get the information?

Proposal 1 – Vision & Strategy of Tourism in the Chopok-South Micro-region

 Need of the proposal – This proposal answers the need of a long-term direction. As was identified in the analysis, there is at the moment no vision and strategy for the micro- region. A long-term vision and strategy is important for all the plans and actions and for all the different subjects in the micro-region.  Description of the proposal – A vision of the micro-region should describe a desired state of the Chopok-South micro-regionin the future. The strategy should be based on the vision and should include more details about its future development and the plan describing the steps to achieve it (may include partial plans and actions). One part of the strategy should be solving the issue of further product development. Based on the theory, I would suggest using the Strategic Product Development Process.  Implementer of the proposal – The vision and strategy could be made by the Regional Tourism Organization HOREHRONIE who could cooperate with all the tourism subjects and public organisations, which would also cover citizens opinion.  Recipients of the proposal – The whole micoregion could benefit from a well-made vision and strategy because it might be the ground stone for the development.  Time range – Determination of a vision and making a strategy should not be done too fast. It is very important to speak with all subjects, detect common wishes and values for the vision. To make a meaningful strategy, it is necessary to stay realistic and look for available sources, too.  Processing & Implementing of the proposal -– As already mentioned, it is necessary to set the vision and then strategy cooperation with all the concerned subjects. An important factor is that the strategy is based on real data and resources and that it produces benefits for the whole micro-region. During implementation, it is crucial to determine the people responsible for specific plans and actions and not to forget regular inspections and evaluatons.  Communication – Communication of the vision and strategy is essential because it is necessary that all the subjects consider it as their own. Only in such a case the subjects themselves contribute to reaching the vision.

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Strategic Product Development Process

As described in the theory, the Strategic Product Development Process consists of 4 parts: Values, Topics, Products and Offers.

At the beginning, the values should be recognised. Based on the SWOT analysis, I would suggest the following elements as the core competencies:

 Geomorphologically-rich conditions: Hills and valleys: suitable conditions for sports Caves: suitable conditions for speleology River Hron: suitable conditions for rafting

 Traditions & customs: “Village life”: cereal / vegetable growing and animal husbandry, crafts

In addition, there are also other competencies which could be important for further development of the micro-region: architectural monuments, historical sites, significant figures from the micro-region.

On these values, the topics and core products are dependent. The essential topics of the Chopok- South micro-region are winter sports, hiking, golf, rafting, speleology and stay in the countryside. The next step of the Strategic Product Development Process requires determination of products in the meaning of attraction points:

 Winter sports: Chopok-South, Ski Tále, Mýto Ski, Krpáčovo Ski  Hiking: basically the entire uninhabited part of the region  Golf: Tále  Rafting: river Hron  Speleology: cave Bystrá  Stay in the countryside

Sugestions for other atraction points and also for the packaging as a part of the final step in strategic product development process – offers – are discribed below as separate proposals.

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Proposal 2 – Products, Atraction Points, Interactive Spaces

This proposal includes 3 projects aimed at differentiating of products in the micro-region. The projects are dedicated to the creation of new products in form of Interactive Spaces, which would complement the offer, represent an interesting added value to the stay and also an alternative plan in bad weather conditions. These projects would also contribute to raising the awareness of local people about important figures coming from or working in the region.

 Need of the proposal – The project objective has 2 levels. One of them is creating a complementary product for visitors to the region. The other level is enlightenment among the locals and interest in science, research and reading.  Description of the proposal – The content of the project would be creation of 3 interactive spaces dedicated to the legacy of well-known figures coming from or living in the micro-region. The premises would focus mainly on children and youth. They would provide information in an interactive form but, at the same time, fill the program with various thematic activities.

• Firstly, there would be a room dedicated to the work of Jozef Murgaš. Being an important world-class inventor, a pioneer of radiotelegraphy, a painter and a Roman Catholic priest, he worked in the village of Podbrezová, namely its part called Lopej, in the years 1894 - 1896. • Secondly, Ivan Bella coming from the village of Dolná Lehota would be another important person. Ivan Bella was the first Slovak astronaut to take part in a mission on the Soyuz TM-29 in 1999. The visitors would learn interesting information about the mission, preparation for the spacecraft and the space itself. A useful interactive element would be created using the virtual reality to help visitors try walking in shoes of a cosmonaut. • Thirdly, there was a figure of Dominik Štubňa-Zámostský, who spent his life working as a teacher and writer for children and youth. His birthplace was the municipality Nemecká. The room dedicated to this person would be linked to a local library in the village. An active program e.g. in the form of reading from children'’s books or night-time events in the library on a variety of topics could be a reason for visitors to stay longer in the region, but could also please the locals.

 Implementer of the proposal – The Regional Tourism Organization HOREHRONIE in cooperation with municipalities Nemecká (Dominik Štubňa-Zámostský), Podbrezová (Jozef Murgaš) and Dolná Lehota (Ivan Bella).

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 Recipients of the proposal – Visitors and residents of the region.  Time range – Few weeks –or months, it depends on many factors.  Processing & Implementing of the proposal -– The first step of processing would be the selection of suitable rooms and their equipment. Equally important for the implementation of the project is human capital and, therefore, the person(s) who would take care of the rooms as well as the program to be carried out there.  Communication – Offline and online promotion by the Regional Tourism Organization and municipalities Nemecká, Podbrezová and Dolná Lehota.

Proposal 3 – Offers & Marketing Strategy

My third proposal deals with forms of offering and presenting the products of the Chopok- South micro-region. This proposal consists of two parts. One of them treats Offers as the last part of Strategic Product Development Process. In this part, I describe my point of view on two important suggestions, packaging and distibution. The other part of this proposal is dedicated to marketing strategy. All of my suggestions could help to increase the number of visitors and the lenght of their stay.

Packaging

 Need of the proposal – There are many activities in the micro-region that a potential visitor often does not even know about. The creation of attractive packages and their appropriate presentation could result in greater interest from visitors and thus increase in traffic heading to the area. At the same time, the arrival of visitors and the length of their stay could be influenced by appropriate pricing, which would help to fill the occupancy of the accommodation facilities during periods of low visitor numbers.  Description of the proposal – The goal of the project is to create service packages. The packages would include accommodation, meals and various excursions and additional services. The packages would primarily focus on the main products of the micro-region: o During winter: winter sports (e.g. a package of accommodation & meals & ski pass & wellness),

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o Outside of the winter season: hiking, golf, rafting and stay in the countryside (e.g. a package of accommodation & meals & rafting trip & farm visit & horse riding). At the same time, these packages would be created for families with children as the target group, which would ensure the possibility of visiting interactive rooms (e.g. Prdimucha’s room, rooms suggested in Proposal 2). Another type of package might be a trip on e-bikes, which would, in addition to accommodation and meals, automatically include the possibility of renting an e-bike. Generally, there are plenty of possible packages. Trips included in the packages do not have to be bound just to the Chopok-South micro-region. There are many interesting places near the micro-region, which may atract diferent visitor segments.  Implementer of the proposal – A travel agency.  Recipients of the proposal – Well-prepared packages could ensure a win-win scenario. There are benefits for visitors because they may buy a whole package for one reasonable price. At the same time, this plan can bring more customers to local enterpreneurs. Another beneficiary would also be the travel agency as a seller.  Time range – The time range depends in this case primarily on the travel agency. If the packaging would be done byan agency that already exists, it could be a question of a few weeks.  Processing & Implementing of the proposal – The creation and pricing of the packages would have to be based on an agreement with service providers in the field of tourism. In the first stage, it would be necessary to figure out and agree on conditions with enterpreneurs in tourism in the Chopok-South micro-region. In the second stage, the packaging should be implemented.  Communication – The processing of service packages presupposes an agreement with entrepreneurs in tourism in the Chopok-South micro-region. The best way to communicate in this case is to meet in person. The chosen way of communication towards potential customers can vary. Since the goal is to attract visitors from more distant cities, it is advisable to focus on online communication.

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Distribution

 Need of the proposal – Distribution follows the previous proposal of packaging. A well- established distribution system helps to increase sales.  Description of the proposal – The project would focus on the sale of the created packages. Selling through different channels helps to increase the number of sold packages. There are many different sales channels that could be used. One kind is the group of online sellers who do not focus just on tourism products. The customersin Slovakia often use discount portals, as for example Zľavomat, More zliav or Čertovské zľavy. These online sellers have enormous and regular organic traffic on their websites. Another possible sales channel is cooperation with other travel agencies. The selection of partners depends on segment of visitors that is meant to be addressed.  Implementer of the proposal –The creator of the packages should be responsible for their distribution – in this case the travel agency.  Recipients of the proposal – A well-established distribution would help to increase the number of packages sold what would, in fact, result in the same benefits as described above in relation to the packaging. The beneficiaries would be the enterpreneurs in the microre-gion, as well as the visitors and the sellers (partners who would actually sell the packages to the customers).  Time range – To agree on a distribution is not a complicated issue and it does not have to take a lot of time. However, it depends on the interest of travel agencies and their capacities, of course.  Processing & Implementing of the proposal consists of the following steps: o Finding the right potential sellers o Contacting the suitable potential sellers o Negotiating the terms with the dealers who are interested in collaboration o Starting the sale through the new partners  The communication needed to establish a functional distribution depends on an agreement with distribution partners. Usually, personal communication would be the best in case of creating packages where all the partners are situated in the same micro- region (however, cooperation with distribution partners from other countries would be more challenging).

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Marketing Strategy

The final aspect of the Strategic Product Development Process – Offers deals with issues that are connected to marketing. Marketing is a key element in the tourism industry because without it, the customerswould not know about the products. Every enterpreneur in tourism sector has their own ways to atract the potencial customers. Nevertheless, when we look at the micro- region as a unit it is necessary to have a common marketing strategy, too. There are many attractive places and interesting activities in the Chopok-South micro-region which have the potencial but do not use the right promotion. I will explain this using two of the examples, destinations Krpáčovo and Hradisko:

 Krpáčovo with its natural potential is a suitable place for visitors looking for relaxation in nature. During the summer the tourists are attracted by a water reservoir and in winter they appreciate the suitable conditions and infrastructure for skiing and cross-country skiing. However, the place as such is not uniformly linked to marketing. Unfortunately, it could be difficult for the visitors who do not know the region to even find information about this place.  Hradisko with its potencial for non-winter season stays is also, unfortunately, little- known and just little marketing by a few local entrepreneurs is done.

There are also many other places and activities that could be developed and the marketing would help with that. At the moment, there is no marketing strategy for the Chopok-South micro- region.

 Need of the proposal – In the Chopok-South micro-region there is a lack of marketing activities which present the micro-region as a unit. If the micro-region wants to function as a one and also wants to be seen as a unit, a marketing strategy is needed.  Description of the proposal – Creation of a marketing strategy.  Implementer of the proposal – From my point of view, it would be the best if the marketing stategy would be prepared by the Regional Tourism Organization HOREHRONIE. Therefore, every municipality in the Chopok-South micro-region should become a member of the Regional Tourism Organization.  Recipients of the proposal – The goal of the marketing strategy depends on the vision and athe strategy of the micro-region in question. The main beneficiaries are the enterpreneurs in toursim.

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 Time range needed to create a marketing strategy – A few weeks.  Processing & Implementing of the marketing strategy – The most important step is to create a good strategy that would reflect the vision and goals of the micro-region. Creation of a strategy contains the following tasks: o Market analysis o Setting the vision and goals of the marketing strategy, o Targeting – defining the target groups/markets, o Positioning – placing the product on the market, o Marketing mix (product, price, place, promotion, programming, people, partnership, politics).  Communication – The marketing strategy should be developed incollaboration with the recipients, in this case with the enterpreneurs in tourism.

Proposal 4 – Learning Region

The final and the most important proposal called the Learning Region represents a tourism region with the aim of sustainable development based on the development of the territory as a result of active cooperation and educational activities taking place within the region while taking into account current trends, external factors and global development. The Learning Region should not be an artificially-created territory. It would not only include the Chopok- South micro-region but also other municipalities of the Horehronie region, which are naturally in touch with the Chopok-South micro-region – such as the town of Brezno.

A prerequisite for the establishment and proper functioning of the Learning Region is the motivation within the region across various subjects. At the same time, it also requires cooperation within the framework of companies that are seemingly competing against each other. Thinking in the long-term context and the general interest in public affairs as well as the state and development of the environment have a great significance.

 Need of the proposal – The creation of a functional Learning Region aims to enable a long-term positive development of the whole area. In general, it should contribute to improving the quality of life and increasing the satisfaction of local people, encouraging sustainable and responsible business and a better functioning public administration.

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 Description of the proposal – The goal is to create a Learning Region. An active Learning Region takes into account the overall state of the territory and does not look only at specific spheres or business areas. It is interested in the conditions of life of local people, the conditions for entrepreneurship and investment, the quality of educational and cultural facilities and it seeks to connect these different spheres and encourage their communication and cooperation. In terms of tourism, it takes into account the overall impression the visitor has and it seeks to examine the values of a visitor to present to people coming to the area.  Implementer of the proposal – Creating a Learning Region is a long-term activity that requires different actors in the region to be involved. The prerequisite for building and functioning of the Learning Region is, first and foremost, the interest of actors from the public (municipalities, educational establishments, cultural facilities, etc.), the private sector (entrepreneurs not only in tourism) and the third sector (NGOs, clusters, destination companies, etc.). At the same time, it is very important not to leave out the inhabitants and try to involve them in activities as much as possible.  Recipients of the proposal – A well-functioning learning region benefits all involved actors as well as the locals.  Time range – The duration ofcreating a Learning Region cannot be precisely determined. It is a long-term mission which depends on the current state and interest of the actors in the area.  Processing & Implementing of the proposal – This requieres open communication and motivation among all the actors in the micro-region.  Communication – The communication happens via discussions, workshops, events and other means.

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Conclusion

I have been working on this diploma thesis continuously for about 1.5 years. During this time, though gradual study of the literature and thanks to closer understanding of the real situation later, my opinion on the issue has changed. At first, I thought that my final proposals would be devoted more specifically to the design of products aimed at attracting guests outside the winter season. In the course of my work I found out that many activities that can be enjoyed outside the main season are underway or are being worked on. However, I was more surprised by the fact that I did not find a longer-term strategy that would show the direction the micro-region should follow. At the same time, I came across the issue of the division of various institutions, which have a great influence on the development of tourism in the area. Therefore, I focused most of my suggestions on recommending strategies in the end. From my point of view, the most important but also the most demanding component is the creation of a Learning Region. This requires cooperation of a large number of actors and, at the same time, a kind of overall mindset setting that is not focused on short-term goals but looks to the future.

No one knows how the tourism sector will develop in the future. Its functioning depends primarily on the ability to travel and move people. Nobody expected that even this basic premise could be taken away from us at this time. The coronavirus pandemic that significantly restricts the movement of people has and will only have a negative impact on overall sales and tourism development. I think, though, that in the given situation (despite the fact that it is very negative) it is necessary to look for positives and opportunities for improvement. I assume that the impossibility of traveling abroad will increase domestic tourism. This is a chance for the Chopok-South micro-region as well. Many people will look for opportunities to stay in the nature, which is also all the more recommended during the pandemic by experts not only from the environment of epidemiologists. The destination has a great offer in this regard but it will be important how it will handle the situation and how it will use marketing to reach potential clients. A marketing strategy, which is one of my suggestions for improvement, would certainly help.

In conclusion, I would like to point out that even perfectly designed strategies and plans will not help if they are just written and put away in a drawer. They need to be gradually carried out, continuously updated, adjusted if necessary, back-checked and evaluated. The most important

82 thing from my point of view is the overall motivation and desire to improve of the individual actors, whether in the business sector or among the responsible institutions and their employees.

I believe that tourism in the Chopok-South micro-region will become more and more important in the future. I also hope that its development will be generally beneficial for the whole area and will take a thoughtful and innovative path.

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List of Tables

Table 1 Primary Offer

Table 2 Secondary Offer

Table 3 Tourism Establishments and Facilities

Table 4 Geomorphological Conditions of the Chopok-South Micro-region

Table 5 Historic Places

Table 6 Accommodation Facilities

Table 7 Catering Facilities

Table 8 Medical Infrastructure, Police and Emergency Services and Other Infrastructure

Table 9 Distance from Lager Cities and Airports

List of Figures

Figure 1 A Conceptual Model of the Destination Product

Figure 2 The Generic Tourism Product

Figure 3 The Tourism Area Life Cycle

Figure 4 Sources of Innovation in Tourism Adapted from Porter’s Diamond Model

Figure 5 Division of innovations by Oslo Manual

Figure 6 Strategic Product Development Process

Figure 7 The Chopok-South Micro-region

Figure 8 The Chopok-South Micro-region (Satelite View)

Figure 9 Regionalization of Tourism Regions in Slovakia

Figure 10 Balance of Payments – Receipts and Expenditures in Tourism

Figure 11 Folk Museum in Nemecká

Figure 12 Horehronie FIT DAY & Krňačky

Figure 13 Hradisko and Lomnistá on the Map

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Figure 14 Tourist and Information Centre in Bystrá

Figure 15 STEY

Figure 16 Escape rooms Witches and Prdimuchova’s vampire room

Figure 17 Products and Services of Horehronie Regional Product and Logo on the Right Side

Figure 18 Logo OOCR Horehronie

Figure 19 Banskobystrický kraj Turizmu

Figure 20 Hotel Partizans facebook page

List of Abbreviations

OECD - Organisation for Economic Co-operation and Development

OOCR – Oblastná organizácia cestovného ruchu

KOCR – Krajská organizácia cestovného ruchu

SR – Slovak Republic

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List of Appendices

Appendix 1 Inhabitants & Area of Municipalities in Chopok-Souhth Micro-region

Appendix 2 Tourism Suprastructure – Accomodation Facilities

Appendix 3 Tourism Suprastructure – Catering Facilities

Appendix 4 Sports and Recreation Facilities

Appendix 5 Architectural Monuments

Appendix 6 Smaller Sporting Events and Competitions

Appendix 6 The Chopok-South Resort

Appendix 7 Ski, Golf & Hotel Resort Tále

Appendix 8 Mýto Ski & Bike

Appendix 9 Krpáčovo

Appendix 10 Hradisko and Lomnistá

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Appendix 1 Inhabitants & Area of Municipalities in Chopok-Souht Micro-region

Inhabitants Area of Municipality (2018) municipality (km2) Bystrá 186 15.80 Dolná Lehota 731 55.43 Horná Lehota 592 45.89 Jarabá 41 16.39 Jasenie 1170 86.29 Mýto pod Ďumbierom 533 10.39 Nemecká 1786 24.63 Podbrezová 3860 18.57 Predajná 1329 35.77 Ráztoka 285 8.073 10 513 306.91

Source: Statistical Office of the SR

Appendix 2 Tourism Suprastructure –Accomodation Facilities

Municipality Name of facility Category and class Capacity Bystrá Wellness hotel Bystrá Hotel, *** 90 Hotel Biela medvedica Hotel, ** 80 Penzión Dúhový pstruh Guest house, ** 75 Penzión EKA Guest house, *** 15 Penzión Grand Guest house, ** 40 Penzión Bystrinka Guest house, ** 45 Chata Limba Cottage, * 75 private accomodations private accomodation 85 Dolná Lehota Hotel Hydro Krpáčovo Hotel, ** 100 Penzión Jedlička Guest house,, - 15 Private cottages Cottage, - 150 Horná Lehota Hotel Biotika Mountain hotel, * 87 Hotel Polianka Mountain hotel, * 64 Hotel Partizán Hotel, **** 197 Hotel Kosodrevina Mountain hotel, * 132 Hotel Srdiečko Mountain hotel, ** 87 Hotel Stupka Mountain hotel, ** 80 Hotel Golf Mountain hotel, * 62 Penzión Grizzly Guest house, ** 20 Trangoška Tourist hostel, - 96 Apartmány PINUS 8 apartments houses, *** 90 Koliba RAJ Guest house, ** 16 Hostel Tourist hostel, - 39 Jarabá Hotel Totem Hotel, *** 40 Chata Jarabatá u Čika Tourist hostel, - 10 Chata Čertovica Cottage ? Jasenie RELAX hotel Lomnistá Hotel, * 70 Villa MIBA Guest house, * 36 Chata ANNA Cottage, * 4 Mýto pod Hotel Mýto Hotel, *** 65

Ďumbierom Penzión Rojas Guest house,** 60 Penzión Adika Guest house, ** 37 Penzión V stráni Guest house, ** 12 Penzión Encián Guest house, * 8 Chata Berg Mountaincottage, * 19 Mýtnik Tourist hostel, * 26 private accomodations private accomodation, - 213 Nemecká Motorest Nemecká Motel, * 15 Penzión Hradisko Guest house, * 36 Horská chata Mirka Cottage, * 18 Kemping DRONTE Camping,- 150 Podbrezová Hotel sv. Juraj Hotel, * 55 Hotel Podbrezovan Hotel,* 30 Telocvičňa na Štiavničke Tourist hostel, - 20 Predajná - Ráztoka - Source: Agentúra európskych grantov a fondov, 2015

Appendix 3 Tourism Suprastructure – Catering Facilities

Municipality Name of facility Offered services Bystrá Pastierska kolibka restaurant services Dolná Lehota Pohostinstvo primoste hospitality services Pohostinstvo Kukučka, s.r.o. hospitality services Horná Lehota Pohostinstvo U NÁS hospitality services Jarabá Motorest Čertovica restaurant services Chata Jarabatá u Čika, s.r.o. restaurant services Jasenie Hostinec U Davčíkov hospitality services Kochuľa, s.r.o. hospitality services Nemecká Koliba Rusticana restaurant services Koncstek hospitality services Pohostinstvo Nemecká hospitality services Pohostinstvo Zámostie hospitality services Podbrezová Pizzeria u Furmana restaurant services Motorest Tomi restaurant services Pohostinstvo Kleskeňová hospitality services – FLORENCE restaurant services Predajná SANTA LUCIA hospitality services Pohostinstvo Michal Berčík hospitality services Ráztoka Pohostinstvo Krčmička – R&U Group hospitality services Source: Agentúra európskych grantov a fondov, 2015

Appendix 4 Sports and Recreation Facilities

Type of Sports and recreation Municipality and specification of facility facilities Playground Dolná Lehota – soccer playground Horná Lehota – soccer playground Jasenie – soccer and basketball playground Mýto pod Ďumbierom – soccer playground Nemecká -– soccer playground Podbrezová – 2 soccer playgrounds Predajná – soccer playground Ráztoka – soccer playground Tennis court Jasenie Podbrezová Mýto pod Ďumbierom – Hotel Mýto Predajná – v miestnej ZŠ Sport Hall Bystrá -– Hotel Partizán (Tále) – squash, badminton, volleyball, basketball Dolná Lehota – gym Jarabá – multifunctional room Jasenie – gym Nemecká – multifunctional playground Nemecká – gym Podbrezová – 2 multifunctional playgrounds Podbrezová – gym Predajná -– gym Swimming pool Jasenie -– uncovered swimming pool Podbrezová -– uncovered swimming pool Bystrá – Hotel Bystrá Water tanks Dolná Lehota – Krpáčovo Horná Lehota – Krpáčovo a Richtárovo Wellness Bystrá – Hotel Bystrá, Hotel Partizán (Tále) Mýto pod Ďumbierom – Hotel Mýto

Fitnescentrum Mýto pod Ďumbierom Podbrezová časť Štiavnička Nemecká Bowling Bystrá Podbrezová Cablecar Mýto pod Ďumbierom Ski-lift Dolná Lehota Horná Lehota Mýto pod Ďumbierom Rental and repair shop Mýto pod Ďumbierom – ski and e-bike rental sports equipment Nemecká – boat and kayak rental (camping Dronte) Cross-country ski trail Horná Lehota Mýto pod Ďumbierom Hiking trail Dolná Lehota – educational trail, Horná Lehota – marked hiking trail of Samo Chalupka Jarabá Jasenie

Mýto pod Ďumbierom – marked hiking trails (20 km) Ráztoka – educational trail „Ráztocké studničky“, 2marked hiking trails – trail No. 2622 and No. 0816 Cycling route Bystrá (10 km), Dolná Lehota – There are two marked cycling routes passing around the village – green no. 5552 and yellow no. 8551, which lead through the well-known resorts of Tále and Krpáčovo. Horná Lehota – A marked cycle path passes directly through the village – yellow No. 8551 and nearby there are two marked bike paths – green No. 5552 and yellow No.8554. Jarabá Jasenie Mýto pod Ďumbierom – marked cycle paths – green No. 5552 and yellow No. 8554 Predajná Ráztoka – 2 marked cyclo paths

Riding club Nemecká – Riding club EQUUS SPORT (horse riding / horse riding lessons) Mýto pod Ďumbierom – Ajax farm Horná Lehota – Slobodné bačovstvo Hrádok v Hornej Lehote Fishing Bystrá – brooks Štiavnička a Bystrianka (trout fishes) Dolná Lehota – brook of Vajskova, Krpáčovo Horná Lehota – Krpáčovo a Richtárovo Jarabá - – brook Štiavnička (trout fishes) Jasenie – brook of Jasenie (trout fishes) Mýto pod Ďumbierom – Štiavnička (trout fishes) Nemecká – river Hron (trout fishes) Predajná – brook of Jasenie, river Hron (trout fishes) Hunting Horná Lehota – hunting association Ráztoka – hunting association Source: Agentúra európskych grantov a fondov, 2015

Appendix 5 Architectural Monuments

Secular Architectural Monuments Municipality Name and Description of Monument Mýto pod Ďumbierom Blacksmith workshop, school, rectory, garden -– national cultural monuments Predajná National cultural monument – Water Mill Sacral Architectural Monuments Bystrá Roman of St. Florian, Belfry Dolná Lehota Church of St. John the Baptist from 1914 with murals by Joseph Hanula, Chapel of the Holy Trinity from 1818, Statue of St. Barbara Horná Lehota Roman Catholic Church of St. Michal from the 2nd half of the 17th century, Evangelical Church The bell tower of the Evangelical Church from 1789 Jarabá The bell tower with a bell Jasenie Roman Catholic Church of St. Catherine of Alexandria Chapel of the Exaltation of St. Cross, Baroque bell tower Mýto pod Ďumbierom Evangelical Church from 1822 - 1828, Roman Catholic Church of St. Matthew from 1840, Chapel of the Virgin Mary of the Seven Sorrows from 1946 Nemecká Roman Catholic Church of St. Mikuláš, Roman Catholic Church of St. Joseph, Statue of St. Ján Nepomucký Podbrezová Roman Catholic Church of St. Juraj from 1650 with an altar painting by the Slovak inventor of wireless radiotelegraphy Jozef Murgaš, who was also a visual artist, Roman Catholic Church of St. Štefan Uhorský Predajná Calvary with 14 stops on the Stations of the Cross, Roman Catholic Church of the Revelation of the Lord from 1606, Parish Building

Ráztoka Roman Catholic Church dedicated to the Feast of the Visitation of the Blessed Virgin Mary from 1840, Chapel of the Virgin Mary of the Seven Sorrows from 1942, Cross with Jesus Christ Technical Works Jasenie Hydroelectric power plant under the hill Rígeľ Mýto pod Ďumbierom Blacksmith workshop from 1920 Nemecká Technical monument – hydroelectric power plant Podbrezová Protected technical monument in Chvatimech – railway bridge of the narrow-gauge Čiernohronská railway Predajná Technical monument Tunnel of Kelemen Source: Agentúra európskych grantov a fondov, 2015

Appendix 6 Smaller Sporting Events and Competitions

Smaller Sporting Events and Competitions Municipality Name of the event / competition Bystrá Bowling competition Dolná Lehota Running of the liberation of the village and the 1st Slovak cosmonaut Ivan Bella Horná Lehota Crossing the village Running through the village Jasenie Running through the streets of the village Ascent to Chabenec Memorial of J. Cibuľa Anti-drug sports Mýto pod Ďumbierom The tournament for the mayor'’s cup in low football Nemecká Volleyball tournament Table tennis tournament Predajná Table tennis tournament for the traveling cup Aerobics marathon Star ascent to the top of Hrb Volleyball tournament Slovak Weismann Summer Biathlon Championships Table tennis tournament Memorial of SNP heroes in summer biathlon Source: Agentúra európskych grantov a fondov, 2015

Appendix 6 The Chopok-South Resort

Source: jasna.sk, 2020

Appendix 7 Ski, Golf & Hotel Resort Tále

Source: tale.sk, 2020

Appendix 8 Mýto Ski & Bike

Source: kopeczabavy.sk, 2020

Appendix 9 Krpáčovo

Source: google.sk/maps, 2020

Source: onthesnow.sk, 2020

Appendix 10 Hradisko and Lomnistá

Source: google.sk/maps, 2020