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Focus Report on the Service Industry As a Growth Factor in Centrope Centrope Partners Centrope Agency

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Focus Report on the Service Industry As a Growth Factor in Centrope Centrope Partners Centrope Agency centrope Regional Development Monitoring. Focus Report on the Service Industry as a Growth Factor in centrope centrope partners centrope agency Austria centrope coordination office I thematic and operative • Federal Province of Burgenland co-ordination, communication & secretariat: • Federal Province of Lower Austria Europaforum Wien, Rahlgasse 3/2, A-1060 Wien, • Federal Province and City of Vienna [email protected] • City of Eisenstadt • City of St. Pölten centrope local offices I regional project management & co-operation nodes: Czech Republic • South Moravian Region Office Austria I focus responsibility ‘knowledge region’: • City of Brno Regionalmanagement Burgenland, • Vysočina Region (observer) [email protected] Regionalmanagement Niederösterreich, Hungary [email protected] • Győr-Moson-Sopron County Vienna Business Agency, [email protected] • Vas County Office Czech Republic I focus responsibility ‘human capital’: • City of Győr HOPE-E.S., v.o.s., [email protected] • City of Sopron Office Hungary I focus responsibility ‘spatial integration’: • City of Szombathely CEURINA NKft, [email protected] Slovakia Office Slovakia I focus responsibility ‘culture & tourism’: • Bratislava Self-Governing Region Slovenský Dom Centrope, [email protected] • Trnava Self-Governing Region The brochure presents key findings of the centrope Regional • City of Bratislava Development Focus Report on the Service Industry as a Growth • City of Trnava Factor in centrope.” Consortium of the centrope capacity pilot project “Regional Development Monitoring” Austrian Institute of Economic Research Mendel University in Brno, Faculty of Business and Economics Slovak Academy of Sciences, Institute of Economic Research Hungarian Academy of Sciences, West Hungarian Research Institute of the Centre for Regional Studies The Vienna Institute for International Economic Studies Imprint Published by the centrope agency on behalf of the centrope capacity partnership. Responsibility for the contents: Karol Frank (EU-SAV), Peter Huber (WIFO, Co-ordinator), Luděk Kouba (MENDELU), Mihaly Lados (WHRI), Roman Römisch (wiiw), Petr Rozmahel (MENDELU). Edited by: Johannes Lutter, Europaforum Wien October 2012 Layout and illustrations: The full report is available as download from www.centrope.com claramonti grafik, Vienna. www.claramonti.at Supported by funds of the European Union Pictures: CENTRAL EUROPE centrope agency – Clara Monti/Gerhard Feilmayr, Thinkstock Printed by: Simply More Printing, Vienna Content Introduction 2 The service sector in centrope: Growth and increasing specialisation 3 Tourism development in centrope: Steady recovery and diverse spectrum of offers 8 Policy conclusions: Towards high service-quality and international visibility 13 www.centrope.com © centrope 2012 01 ● Introduction The Focus Report “The Service Industry as a Growth region and moreover discusses aspects of tourism Factor in centrope” first of all deals with the struc- co-operation within centrope. ture of the service sector in centrope and secondly analyses the development of the tourism industry in The brochure at hand provides a summary of the this region. The first part looks at patterns of speciali- findings of the Focus Report “The Service Industry sation in different service sectors across centrope as as a Growth Factor in centrope, with Special Em- well as at investment data, with a view to identifying phasis on the Role of the Tourism Industry and Struc- the comparative advantages of individual regions in ture of the Business Service Industries”, compiled as service sector development. The second part pays part of the pilot action “centrope Regional Develop- special attention to the structure of both the supply ment Monitoring”. The full version of the report can and the demand side of the tourism industry in the be downloaded free of charge from the website www.centrope.com ● 02 The service sector in centrope: Growth and increasing specialisation capital cities of Vienna and Bratislava also have the The structure of the service highest shares of employment in knowledge-inten­ sector differs markedly be- sive services like information and communications, tween the urban centres and financial intermediation, real-estate activities and the other centrope regions. business services. In the case of business services (professional, scientific and technical activities1 as well as administrative and support service activities), This report firstly deals with the structure of the variation within centrope is equally pronounced: their service sector in centrope and secondly analyses shares in overall employment range from 15.8% in and compares the supply and demand side of the Vienna to 4.4% in the Trnava Region. tourism industry and its structure, in addition to looking at issues of tourism co-operation within the A mapping of the respective concentrations of differ­ region. With respect to the structure of the service ent service sectors illustrates this evident heteroge­ industry, the report finds an evident discrepancy neousness. In particular (see Table 1): between the strongly service-oriented urban regions on the one hand and the less urbanised rest of • In South Moravia, there are three primary service centrope on the other hand in terms of specialisation branches: accommodation and food services, in service industries, specifically advanced know- financial and insurance activities, and arts, enter- ledge-intensive business services (see Figure 1). tainment and recreation. The highest level of tertiarisation is attained in urban • Burgenland specialises strongly in non-market services. regions. Vienna has a share of service sector em­ Among service sectors, higher employment concen- ployment of over 85% and the Bratislava Region of trations are only found in public administration and – around 80%. By contrast, Vas and Trnava have a to a lesser degree – in defence, compulsory social service sector employment share of less than 60%, security, and accommodation and food services. while in all other centrope regions the service sector • In Lower Austria, transportation and storage services accounts for 60% to 70% of total employment. The as well as public administration and defence are 1 This includes legal and accounting activities, management consultancy activities, architectural and engineering activities, scientific research and development, advertising and market research, veterinary and other activities. 03 ● The service sector in centrope: Growth and increasing specialisation highly concentrated; in general though, this region localisation. Among these industries, only accom- focuses more on manufacturing. modation and food services present a concentra­ • As a typical urban region, Vienna presents a high tion above the national average. concentration of the service sector, specifically information and communications, real estate and The analysis shows that only Vienna, Bratislava and business services. Brno have a high concentration of knowledge-inten­ • Győr-Moson-Sopron concentrates moderately on sive service activities. Since co-operation in these accommodation and food services as well as in the activities requires a critical mass of service provid­ field of arts, entertainment and recreation. ers, this suggests that co-operation in the develop­ • Vas has a rather diverse sector structure in services, ment of knowledge-intensive service industries is with a moderate concentration on accommodation primarily interesting for the large cities of the region and food services. (Bratislava, Brno and Vienna), while in most of the • In the Bratislava Region, the financial sector as other centrope regions the main objective should be well as business services evidence a particularly to attract more such services to their own territory, strong concentration. since the scarce development of these service indus­ • The Trnava Region specialises in the primary tries represents a weak point of these regions. and secondary sectors, with low service industry Share of employment in services in centrope (2009; in %). (Figure 1) CZ Jižní Morava Trnava Niederösterreich Bratislava Wien SK A Gyor-Moson-Sopron H Burgenland Vas Source: national statistics offices. ● 04 The service sector in centrope: Growth and increasing specialisation Concentration of different service sectors in centrope (localisation coefficient) (Table 1) Vas South Lower Trnava Trnava Vienna Austria Sopron Moravia Bratislava Burgenland Győr-Moson- Wholesale and retail trade1) 0.94 0.89 0.78 1.00 1.14 0.95 1.17 0.95 Transportation and storage 1.02 1.08 1.06 0.77 1.24 0.97 1.15 0.96 Accommodation and food services 1.21 1.10 1.15 1.08 0.75 0.86 0.78 1.31 Information and communications 1.11 0.44 0.28 0.58 0.59 2.25 1.51 0.96 Financial and insurance activities 1.26 0.82 0.6 0.89 0.79 1.42 2.33 0.58 Real-estate activities 0.55 1.03 0.87 0.81 0.66 1.84 2.20 0.87 Consultancy, research2) 1.07 0.89 0.63 0.56 0.80 1.55 1.97 0.87 Public administration, defence; 0.96 0.66 0.76 1.29 1.13 1.23 1.44 0.81 compulsory social security Education 0.87 0.96 0.79 1.01 0.87 1.18 0.82 0.89 Human health and social work 0.99 0.81 0.92 0.81 0.86 1.14 0.84 0.89 Arts, entertainment and recreation3) 1.72 1.13 0.98 0.92 0.87 1.43 1.22 0.92 Source: national statistics offices. Localisation coefficient = share of sector employment in regional economy in % of sector employment in the national economy, dark-highlighted cells = sectors concentrated in the region with high localisation (localisation
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