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TOURISM VALUE CHAIN DIAGNOSIS Cross Border Area Elin Pelin Bulgaria and Leskovac Serbia

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TOURISM VALUE CHAIN DIAGNOSIS Cross Border Area Elin Pelin Bulgaria and Leskovac Serbia Interreg - IPA CBC Bulgaria – Serbia Programme CCI Number 2014TC16I5CB007 Project - The Magic of Synergies - Ref. No CB007.2.12.002 Study TOURISM VALUE CHAIN DIAGNOSIS cross border area Elin Pelin Bulgaria and Leskovac Serbia -Pathways to Prosperity- Place: Elin Pelin & Leskovac Data: February 2021 DISCLAIMER This document has been produced with the assistance of the European Union through the Interreg-IPA CBC Bulgaria-Serbia Programme, CCI No 2014TC16I5CB007. The contents of this document are the sole responsibility of The Centre for Development Jablanica and Pcinja Districts and can in no way be taken to reflect the views of the European Union or the Managing Authority of the Programme. ОБЩИНА ЕЛИН ПЕЛИН The project is co-funded by EU through the Interreg-IPA CBC Bulgaria–Serbia Programme. The project The Magic of Synergy (№ CB007.2.12.002) within the Interreg – IPA program for the cross-border collaboration Bulgaria- Serbia 2014-2020 e-publication: Tourism Value Chain Diagnosis-cross border area Elin Pelin Bulgaria and Leskovac Serbia Publication type: A study Publisher: The Centre for the Development of Jablanica and Pcinja Districts (Project partner 3) Authors: Project team members: • Dobrila Sudimac Martinović (Researcher) • Goran Milenković (Facilitator) The use and publication of the information and parts of the text for non-commercial, non-profit, or scientific purposes is allowed with accurate source citing. Elin Pelin and Leskovac February 2021 2 Contents Acronyms and Abbreviations .......................................................................................................................... 4 1. Introduction ................................................................................................................................... 5 2. Methodology .................................................................................................................................. 7 3. Tourism ........................................................................................................................................ 12 3.1. Tourism in the national economies ................................................................................................... 14 3.2. Tourism in cross border region .......................................................................................................... 23 3.3. Destination Elin Pelin ......................................................................................................................... 26 3.4. Destination Leskovac ......................................................................................................................... 36 4. Mapping of value chains ............................................................................................................... 49 4.1. Direct Value Chain Actors .................................................................................................................. 50 4.1.1. Travel organizers .......................................................................................................................... 51 4.1.2. Transportation .............................................................................................................................. 60 4.1.3. Accommodation ........................................................................................................................... 61 4.1.4. Food services ................................................................................................................................ 72 4.1.5. Tourists/Visitors ........................................................................................................................... 74 4.2. Indirect Value Chain Actors ................................................................................................................ 77 4.2.1. Suppliers ....................................................................................................................................... 77 4.2.1. Service providers .......................................................................................................................... 79 4.2.3. Support institutions ...................................................................................................................... 79 4.3. Value chains linkages ......................................................................................................................... 81 5. Market Trends in the Tourism ....................................................................................................... 95 5.1. Trends in the Tourism ........................................................................................................................ 95 5.2. Economic Impact from COVID-19 .................................................................................................... 100 6. Tourism Value Chain Diagnosis - Main findings ............................................................................. 105 7. Literature .................................................................................................................................... 109 3 Acronyms and Abbreviations SBRA The Serbian Business Registers Agency GDP Gross Domestic Product ЕU The European Union ICT Information and Communication Technologies IPA Instrument for Pre-Accession Assistance LGU Local Government Unit PPP Public Private Partnership SME Small and Medium-Sized Enterprises NGO Non-governmental Organization NSI National Statistical Institute CSO Civil Society Organization RDA Regional Development Agency SORS Statistical Office of the Republic of Serbia RA Regional Agencies RS Republic of Serbia TOS The Tourism Organization of Serbia COVID-19 Coronavirus Disease 2019 DG Directorate General of EU Commission German Agency for International Cooperation (Deutsche Gesellschaft für Internationale GIZ Zusammenarbeit) MICE Meetings, Incentives, Conferencing, Exhibitions OECD Organization for Economic Co-operation and Development CCIS The Chamber of Commerce and Industry of Serbia UNESCO United Nations Educational, Scientific and Cultural Organization UNWTO The World Tourism Organization WTTC World Travel and Tourism Council 4 1. Introduction Travel and Tourism is one of the world’s largest sectors, driving socio-economic development and job creation. It plays an important role in driving prosperity, empowering women, youth, and other groups of society. The benefits of Travel & Tourism spread far beyond its direct impacts in terms of GDP and employment. There are also indirect benefits through supply chain linkages to other sectors as well as its induced impacts. Considering the wider impacts of travel and tourism (direct, indirect and induced), the total contribution of this sector to the global economy in 2019 was 8,900 billion USD, representing a share of 10.3% of total GDP, or an increase of 3.6% compared to 2014. Sector generated 330 million jobs, 1 in 10 jobs around the world1.. Tourism is an important sector of the European Union's economy. It supports economic growth and employment. This economic impact is felt in employment, increased tax revenues, successful business growth, environmental conservation, and cultural heritage protection. The tourism sector's competitiveness is intricately linked to its sustainability, as the quality of tourist destinations is strongly influenced by their natural and cultural environment and their integration into a local community. The sustainability of tourism covers a number of aspects: the responsible use of natural resources, taking account of the environmental impact of activities (production of waste, pressure on water, land and biodiversity, etc.), the use of 'clean' energy, protection of the heritage and preservation of the natural and cultural integrity of destinations, the quality and sustainability of jobs created, local economic fallout or customer care2. Creating the right balance between the needs of tourists, host communities and the environment, reducing conflict and recognising mutual dependency, requires a special approach to the management of destinations. The place where tourists travel to and where they spend their holidays is called destination. However, basic tourist destination is more than a tourist place defined as a final destination of a tourist trip. It is a wider functional tourist space consisting of one or more tourist places that have direct influence on the quality of the entire tourist experience of these places. Base of a tourism destination is comprised of its existing and potential tourist attractions that can range from local to international significance. Environmental characteristics of a tourist destination are healthy environment, interesting landmark formations and quality spatial organisation of tourist places and its surroundings. Tourism is characterized as an industry with a strong competition. Therefore, it is crucial to create a competitive advantage in order to stay in the market. In case of the tourist industry, creating competitive advantage could be done by providing an extraordinary experience which is the ultimate goal for travel leading to customer satisfaction and customer loyalty. Therefore, it is necessary for a tourist destination to have its own tourist product. As defined by the United Nations World Tourism Organization (UNWTO), a Tourism Product is "a combination of tangible and intangible elements, such as natural, cultural attractions, facilities, services and activities around a specific
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