ISSN 1333-2422 UDK = 338.486 : 338 (479.5) REVIEW PAPER

Could rural tourism revitalize rural areas in Croatia?

Ivo Grgić1, Lari Hadelan1, Stjepan Krznar2, Magdalena Zrakić1

1 University of Zagreb Faculty of Agriculture, Department of Agricultural Economics and Rural Development, Svetošimunska 25, HR-10000 Zagreb, Croatia ([email protected]) 2 Master degree student, University of Zagreb Faculty of Agriculture, Svetošimunska 25, HR-10000 Zagreb, Croatia

ABSTRACT Trends in modern tourism are mainly oriented towards intangible aspects of tourism demand. Consumer experience at a destination is the focal point. Since rural areas in Croatia face significant demographic problems, rural tourism can be one of the answers to the question of how to revitalize rural areas. The aim of this paper is to describe the development of rural tourism in certain regions in the context of overall rural development in Croatia. For the purposes of this paper, methods of content analysis and compilation were used. Rural tourism can contribute to economic diversification and enable new jobs, especially for young people. Due to diversity of climatic, environmental and regional conditions, there are various types of rural tourism in Croatia. The overall diversity shouldn’t be perceived as on obstacle for potential development, but a comparative advantage.

Key words: rural tourism, regions, development, Croatia

INTRODUCTION available it means that it is becoming more and more difficult for tourism based exclusively on Croatia’s membership in the European "sea and sun" to satisfy the consumers. Union (EU) in 2013 encompassed changes in the Croatian economy, including rural Trends in tourism in general are focused development. In addition to coastal tourism, more on intangible dimensions of touristic which is extremely important for Croatian demand – experience. Consumer experience economy (the share of direct gross value added presents totality of supply (nature, food, (GVA) of tourism in the total GVA is about accommodation, environment, hospitality, 8.5%), diversification of tourism products and activities etc.). The concept of rural tourism development of new types of tourism such includes various forms of tourism in rural as rural, health, transit etc. began in the last areas (eco-tourism, agro-tourism, fishing and decades as well. According to Skuras et al. hunting, etc.). Rural tourism is a common term (2006) as other forms of tourism become more for activities and forms of tourism which exist in

Agroeconomia Croatica 7:2017 (1) 98-108 Could rural tourism revitalize rural areas in Croatia? 99 a rural area defined by the natural and cultural Human resources are needed for the further resources that are there (Svržnjak et al., 2014). development of rural tourism, while at the same According to WTO, rural tourism is a term time Croatian rural area faces the problem of used when "rural culture" is a key component rural depopulation. of the product or service in rural tourism supply (Mihailović and Morić, 2012). Universal Earlier, migrations in rural areas were definition of rural tourism is still the subject of caused by wars and natural disasters, but in discussions without consensus (Pearce, 1989; recent years rural exodus is caused by social Bramwell, 1994; Seaton et al., 1994). There and economic problems. According to Grgić et are several reasons. Firstly, rural areas are al. (2010) the greatest difficulties of life today in determined differently in different countries; the Croatian rural areas are economic; lack of all tourist activities in a rural area cannot be employment, poor choice of occupations and unconditionally determined as rural (depends lower wages versus jobs in the city. The biggest on context), there many types of rural tourism problem is that young people in particular leave in rural area without common denominator rural areas due to lack of opportunities. (Štros et al., 2015). McGehee and Kim The migration of the rural population can be (2004) define rural tourism as tourism which prevented primarily by increasing employment takes place in a rural area. Accommodation and income, and the creation of such physical (apartments, camps etc.) may be different, and social infrastructure in rural areas that as well as activities (hiking, walking, sports, will significantly improve the living conditions visiting cultural heritage, cultural events, etc.). of rural population. In fact, it can help the About 93% of Croatian land area is marked development of all forms of rural tourism as rural, and it is inhabited by one-fifth of the which will boost other economic activities in total population (Svržnjak et al., 2014). There rural areas considering that no activity is acting is a great potential for the development of this independently, but mutually complementary type of tourism, which can be strong back-up and reinforcing. for economic and social development of rural areas. The rural tourism capacity in Croatia has a short history since 1998 when first rural MATERIAL AND METHODS tourism family farms were registered – 32 of According to Petrić (1996) there are two them, and is currently at unduly low number – groups of rural tourism definitions. The first only 447 registered rural households which are group consists from definitions that defined very unequally distributed by counties. rural tourism on the basis of total touristic The importance of rural tourism is reflected income (e.g. rural tourism is one type of in the strong interaction between agricultural tourism in general, whereas agritourism is production, traditional products, presentation a type of rural tourism). The second group of tradition, traditional gastronomy and tourist defines tourism in rural area by different services, and the use of existing resources. supply elements. Depending on the primary Structural changes in agricultural production component of the product (e.g. rural culture, have led to the weakening of the rural economy, activity on farm etc.) a expression is used for what imposed seeking additional income definition, for example: agro-tourism, green sources for farmers (Grgić et al., 2015a). tourism, gastronomic tourism, social, nautical

Agroeconomia Croatica 7:2017 (1) 98-108 100 Ivo Grgić, Lari Hadelan, Stjepan Krznar, Magdalena Zrakić tourism, hunting, adventure, historical/cultural areas and should remain in accordance with tourism and so on. the environment. It should also put the existing facilities into use; engage local population and The aim is to describe the development adapt rural tourism to the available space. of rural tourism in past few years and to indicate the limitations and possibilities of its Visitors are mostly attracted to rural areas development in the context of the overall rural because of their natural environment and development in Croatia. For the purposes of cultural and historical heritage. Considering the this article, secondary information research was total area, Croatia stands out with a large number made, including the information available on of protected and tourist attractive natural areas, the Internet and in the contemporary literature and by environmental biodiversity it is in the about rural areas. The method of qualitative European top. According to the Register of analysis of secondary data and descriptive Protected Areas of the State Institute for Nature (reproductive) synthesis was applied. Protection in Croatia there are 409 protected areas in different categories. Protected areas now cover 8.56% of the Croatian area, or RESULTS AND DISCUSSION 12.24% of the continental territory and 1.94% Sustainable development and rural of the territorial sea. tourism value Culture which takes place in a rural area is the base of development of rural tourism and The terms "rural development" anddifferentiates one rural place from another. "sustainable development" are complementary Farmers’ culture is based on local creation terms (Krznar, 2016). The concept of sustainable and social control, traditions and forms of development was born out of need to emphasize collective action, and is influenced by various the necessity of conservation and protection, local environmental and other local cultures especially of non-renewable resources, and to (Cifrić, 2012). Rural tourism based on culture coordinate development with the environment. and cultural attractions includes various Croatian rural area developed slowly throughout aspects: cultural monuments, folk culture, history and thus left preserved environment habitation and food, ethnic folk practices, folk and economic basis for future generations. material culture of the old crafts, products, Three key points determinate the concept of souvenirs, cultural institutions and events and sustainable development: the protection of the entertainment, sports and commercial events. ecosphere, stable economic development and The cultural monuments are important factor the fair distribution of social opportunities. In in every attractive tourist destination (movable recent times the tourists’ interest is increasingly and immovable objects preserved from focused on natural and cultural heritage, life in past that point to a specific period of social the countryside, and spending time in the wild development). Folk culture plays an important and unspoiled nature. Local population often role in rural area, especially folk culture focuses on tourism for economic reasons and which is preserved in the folklore of the rural easier earnings and becomes dependent on population, and includes dressing, dancing, tourist demands, to such a degree as to even singing, music, ancient traditions, crafts, and endanger local identity. Rural tourism should the way of living. be developed in such a way that it develops rural

Agroeconomia Croatica 7:2017 (1) 98-108 Could rural tourism revitalize rural areas in Croatia? 101

Products and services supply in rural ratio of tourism products bidders to tourists, tourism tourism activities, content and timetable of tourism residence object, direct contact The goal of successful management of with nature, additional services with basic a rural destination is to apply marketing tourist service, ease of attractions availability, principles and techniques in such a way as architectural (traditional) characteristics of to enhance attractiveness of destinations in tourist facilities, sports activities etc. According terms of increasing competition. The process to Grgić et al. (2011) at the Zagreb County of successful destination management is , agritourism services providers have to be grouped into three areas: products, markets ambitious (37.3% of respondents think so), and consumers/users, and consists of kind (19.3%), hardworking (13.3%), resourceful resources, products, marketing strategies and (8.4%), educated (6.0%) and other (15.7%). measures, consumer/user and segmentation (Rainisto, 2003). Destination reputation According to the same research, the main (perception) is also important for successful reason for doing agritourism is better sale of destination management. It is quite difficult agricultural products (57.1%), while other for a destination to develop an image and it is a reasons are better sales of non-agricultural long-term process but once it does, it gets huge products and a love for countryside and competitive advantage over other destinations. agriculture. Consequently it comes to The image of a tourist destination is the totality agricultural production and rural areas of impressions, beliefs, ideas, expectations and preservation (products are sold at minimum feelings about the place collected over time cost and maximum sales prices). The diverse (Kesić and Jakeljić, 2012). rural tourism supply certainly contributes to the development of the local community. Some counties, regions, places or cities It includes preservation and sufficiently use their prominent urban historical symbols pure landscape, rich natural and cultural (fortress in Đurđevac city) because they serve heritage (churches, fortresses, and castles), as the easiest and quickest association with environmentally preserved area with numerous a place and are a powerful visual symbol, natural resources, environmentally friendly which symbolizes and reinforces the image production, indigenous and traditional of a particular place (Svržnjak et al., 2014). products, many natural, cultural and historical Environment which includes social, cultural, attractions and traditional production. In economic and political features with the usual similar research (Grgić et al., 2015c) potential characteristics such as soil, climate and food rural-tourism farmers in one micro-region supply is considered to be an important supply. in Croatia showed positive attitude towards From the perspective of potential tourists, rural tourism activity in rural area, but only 3.3% of tourism product is perceived and consumed them were interested in agritourism. The need as a compound or combination of attributes for major investments and administration are that will satisfy their desire and need (Kotler, the biggest problem they emphasized. 2001). When assessing rural tourism attributes the following is essential (Canoves et al., 2005): direct connection of nature and landscape, peace and tranquillity, price-quality ratio, the

Agroeconomia Croatica 7:2017 (1) 98-108 102 Ivo Grgić, Lari Hadelan, Stjepan Krznar, Magdalena Zrakić

Products and services demand in excitement and enogastronomic experience. rural tourism Majority of rural tourists come from urban areas; belong to middle and upper middle class Consumers themselves (tourists) have and despite the economic crisis have increasing the greatest influence on the development of disposable income. Rural tourism presents not tourism activities. They are motivated with only an opportunity for greater returns, but it new priorities, environmentally conscious also encourages the revitalization of agriculture and looking for new experiences and activities and repopulation of rural areas and keeps young during the trip. They also require more people in the area. One of the most important attention, better services quality and interesting factors of demand is seasonality, and the most stories about the place they are visiting and the attractive period for consumers is spring food consumed. Recently, interesting stories or because it is time when nature is awakening legends (linked to total experience) about the and becoming more attractive. Other similar place kept increasing demand in rural areas. research (Grgić et al, 2015b) in another part of A distinctive characteristic of tourist demand country showed that major part of respondents is its elasticity, which may be primary and would spend holidays on touristic family farms secondary. In the primary elasticity, the focus during summer or spring. is on income sensitivity or prices, and in the secondary on the volatility of tourism demand Seasonality of tourism combines temporal to changes in supply (Dobre, 2005). and spatial variations in tourism demand, since the ultimate manifestation of the seasonality Tourist demand can be influenced by of tourism palpable and visible in time and in numerous factors: prices, consumer attitudes, space (Kožić, 2013). political environment, etc., but mainly disposable income and prices play a decisive Rural tourism in Croatia role in defining the tourism demand (Song et Rural tourism in Croatia began to develop al., 2010). According to Grgić et al. (2011) in after the War for Independence (1991- Zagreb County, the majority of respondents 1995); firstly in the context of promoting the answered that nature/environment, hospitality development of continental tourism, and and food supplied had the biggest impact in later as an essential factor in the development agritourism services. Sporting events supply, of rural areas and village renovation. It cultural events and other interesting content developed unevenly, depending on the goals are essential for younger population. Also, and programs of individual country regions. according to the same survey, respondents It started to develop in Istria as an integral expect improvement of agro-tourism supplies part of the destination product of coastal through advertising, services quality increasing tourist destinations and in other regions in and lower prices. order to raise the quality of life in rural areas Demand for rural tourism in Croatia and acquire additional income. Various is recently characterized by a significant institutions have undertaken great actions increase due to tourists’ greater awareness, for tourism development on family farms environmental concerns, availability of cultural (Croatian Chamber of Economy, Ministry of heritage, and the need for rest, adventure, Tourism, different associations of producers and consumers etc.), but the effects of those

Agroeconomia Croatica 7:2017 (1) 98-108 Could rural tourism revitalize rural areas in Croatia? 103 actions were not consistent with their efforts. international competitiveness, desirability The biggest problem was the size of rural farms and recognition. in Croatia, which was in average 2.8 hectares of agricultural land per farm in 1991 (then Regions with the most developed further fragmented, usually in 5 particles). It is rural tourism in Croatia quite hard to organize the tourism supply on Rural area of Slavonia and Baranja (Figure such small farms. Systematic development of 1) is rich in tourist attractions that have the rural tourism in Croatia can be divided into potential for tourism development, such as two important periods (Šarić, 2016): thermal, healing waters, rivers, sanctuaries, • From 1995 to 1999 – the Croatian wine routes, natural parks, cultural heritage, government adopted the National program etc. for development of small and medium enterprises in the tourism industry with an emphasis on sustainable tourism development in rural areas. • In 2004 – when the new Croatian government began to seriously care about rural areas and economic activities in the rural areas. According to the Institute for Tourism (2015), Figure 1: Slavonia and Baranja (Eastern part of the vision for the rural tourism development Croatia) in Croatia until 2020 is as follows: in Source: https://hr.wikipedia.org/wiki/ 2020, rural tourism will be a competitive, Slavonija_i_Baranja (10.1.2017.) commercially established and increasingly popular export product in Croatia. Taking into consideration the ambience feeling and This special rural area with unpolluted ecological preservation of the environment, environment and sustainable development is rural tourism in Croatia will attract at the same time is rich in tradition, cuisine, domestic and international tourist demand famous Slavonian hospitality and what is very mostly due to its authentic atmosphere, important with low prices of goods and services. "the warmth of home" and distinctive Slavonia and Baranja are poor with newly "custom-made" supply tailored experiences created tourist attractions, and the problems customized to different consumer segments. of rural tourism development are reflected in The dynamic development of rural tourism a lack of entrepreneurial knowledge and skills, in Croatia will be the result of a stimulating legislation, promotional activities etc. As a least business environment, responsible developed tourist region of continental Croatia, destination management and high level of Slavonia should use its tourist potentials, involvement and commitment of all holders natural beauty, tradition and culture that have of tourism policy at national and regional been neglected for long time in a better and level. The goal of rural tourism development more efficient way and brand itself to market in Croatia till 2020 is to enhance its as a tourist destination that supplies something

Agroeconomia Croatica 7:2017 (1) 98-108 104 Ivo Grgić, Lari Hadelan, Stjepan Krznar, Magdalena Zrakić new and distinctive. People live in a traditional croatia---medimurje (10.1.2017.) way, but in a modern spirit. The development of rural tourism in Starting points that give preference to this region was prompted by the possibility Slavonia as a tourist destination according of creating an extra income, and thus to Bolfek, Jakičić and Lončarić (2012) are: increasing the quality of life and mitigating preserved nature of the Pannonian Plain, quiet the depopulation of rural areas in Međimurje and peaceful refuge from the urban lifestyle, County. Rural tourism is beginning to be used richness in history, architecture and unique in a planned way for the purpose of revitalizing urban complex, respect of traditional values the rural areas. Additional motivation for this and proud tradition known for the hospitality kind of investment and entrepreneurship, both of local people who make the stay enjoyable, with individuals and the County, are specific romantic atmosphere provided by authentic rural farms in the area, tradition presentation towns and castles known for numerous through the folk customs and traditional crafts, legends, and rich cuisine with the sounds of traditional products production and the fact autochthonous music instruments. that the preservation of natural environment is at a high level. Folk customs are visible in It is necessary to include the "economy the way they built "hiže" (traditional name experiences" in Slavonia and Baranja, and for house), in national costumes, wedding expand the supply through innovative ceremonies, Međimurje County traditional adventure-sport tourism which allows further songs, music and dance. Međimurje County diversification of the product with other is an area with a healthy climate, excellent socially useful activities. conditions for recreation, leisure, good road The development of rural tourism in connections to the rest of Croatia and the Međimurje County (Figure 2) was positively nearby neighbour countries – all important affected by the neighbouring Republicelements for the further development of rural of Slovenia, but also with the ideas and tourism in the area of Međimurje County experiences of emigrants returning from (Mesarić-Žabčić, 2008). Austria, Switzerland and Germany, where this Historical monuments, national heritage form of tourism was developed many years ago (costumes, masks, customs, feasts and food), (Mesarić-Žabčić, 2008). watercourses, vineyards and specific farms attract more and more tourists year after year. Tourists are delighted with the landscape beauty, the quality of wine, rich local cuisine, unique food specialties and hospitality. Local music, songs and dance have an important role in the promotion of rural tourism in Međimurje County. Renovation of old houses for rural tourism is a recent phenomenon in Međimurje County, and it is related to the return of former residents from abroad. The Figure 2: Međimurje (North part of Croatia) advantages of rural tourism development in the Source: http://www.murkovic.org/05---places/

Agroeconomia Croatica 7:2017 (1) 98-108 Could rural tourism revitalize rural areas in Croatia? 105 area of Međimurje County are reflected in the accommodation to different activities, tradition expansion of the existing tourism, expansion and specific nature). Istria generates the highest of tourist business in the spring and autumn income from rural tourism in Croatia and is a months, and the ability to generate higher good example for other regions. Rural tourism revenues from tourism. At the same time this is also developed in the southern part of type of tourism is encouraging the preservation country (rural parts of Dalmatia, Dubrovnik of native customs, traditional crafts, socio- city region etc.). cultural features of the Međimurje region, and the traditional primary production and It is quite interesting that despite the small processing of agricultural products (Mesarić- total area or a relatively small number of total Žabčić, 2008). population in Croatia (4.2 mil inhabitants), there is such heterogeneity in nature, cultural or This type of tourism is present in Istria from historical heritage, way of life and way of rural 1996 (Figure 3). Istria was the first region in tourism. It is quite hard to find some common Croatia to begin with this type of tourism. In the denominator for rural tourism in different beginning rural tourism was the supplementary Croatian regions. If we should do this it would activity to the main coastal tourism. Nowadays be the wealth in heterogeneity and differences. Istria is branded as the most developed rural Such type of national rural tourism could be touristic region and also it has a specific type the comparative advantage of domestic tourism of rural tourism if we compare it with other as a whole. Due to natural and cultural heritage, regions with rural tourism in Croatia. rural tourism can have a very good perspective in Croatia but demographic and financial/ economic problems in rural areas are the main obstacle.

CONCLUSION Geographical position of Croatia makes the country very heterogenic in climate conditions, nature and cultural heritage. Croatian tourism sector is primarily known as coastal tourism with its peak and supply in summer (sun and Figure 3: Istria (Western part of Croatia) sea). The share of tourism activity in total Source: http://www.realestateistria.com/default. GDP is about 8%. Thanks to continental part aspx?p=39 (10.1.2017.) and significant rural areas (about 93% of the total area) rural tourism is also becoming Rural-touristic goods and services extended an important part of touristic supply in the the main touristic season from two months to country. Rural tourism can be perceived as almost a whole year season. Istria is known for one part of solution for rural areas which are the production of cheese, ham, olives, olive facing depopulation (deagrarisation) and low oil, asparagus, truffles, fine wine spirits and income problems. Agricultural producers can liqueurs. There is a very rich supply in every sell their products through rural tourism and segment of touristic demand (from food to reuse unused infrastructural and intangible

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Agroeconomia Croatica 7:2017 (1) 98-108 108 Ivo Grgić, Lari Hadelan, Stjepan Krznar, Magdalena Zrakić

Može li ruralni turizam revitalizirati ruralna područja u Hrvatskoj?

SAŽETAK Trendovi u modernom turizmu usmjereni su u većoj mjeri na nematerijalne dimenzije turističke potražnje - iskustvo. Iskustvo potrošača u nekoj destinaciji predstavlja ukupnost ponude. Budući da se ruralna područja u Hrvatskoj suočavaju sa značajnim demografskim problemima, ruralni turizam može biti jedan od odgovora na pitanje kako revitalizirati ruralna područja. Cilj rada je opisati razvoj ruralnog turizma u pojedinim regijama u kontekstu ukupnog ruralnog razvoja u Hrvatskoj. Za potrebe ovog rada korištene su metode analize sadržaja i kompilacije. Ruralni turizam može pridonijeti ekonomskoj raznolikosti i omogućiti nova radna mjesta, posebno mladima. Zbog raznolikosti klimatskih, okolišnih i regionalnih uvjeta postoji raznolika ponuda ruralnog turizma u Hrvatskoj. Takove značajke svakako ne trebaju biti prepreka potencijalnom razvoju, već prilika koja bi bila komparativna prednost.

Key words: ruralni turizam, regije, razvoj, Hrvatska

Agroeconomia Croatica 7:2017 (1) 98-108