Tourism in the Adrigov Area: Competitiveness, Internationalization and Sustainability

Tourism in the Adrigov Area: competitiveness, internationalization and sustainability.

volume V

The IPA Adriatic CBC Programme is co-financed by the Instrument of R Pre-Accession E E S G I Assistance (IPA) I L O O N E M

A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

This publication has been produced with the financial assistance of the IPA Adriatic Cross-Border Coopera- tion Programme. The contents of this document are the sole responsibility of Regione Puglia and can under no circumstances be regarded as reflecting the position of the IPA Adriatic Cross-Border Cooperation Programme Authorities.

The following study has been carried out by CERPEM (Research Centre for the Mediterranean Area) within the project Adrigov, sponsored by Regione Puglia (Mediterranean, Culture and Tourism Department) within the IPA Adriatic (Instrument for Pre-accession Assistance) 2007-2013. Technical coordination for Regione Puglia: Daniela Mazzucca.

Research team: Franco Chiarello (University of Bari) (scientific coordination), Silvia Gravili (University of Lecce), Mara Maggiore (Pugliapromozione, Regional Agency for tourism promotion), Vito Peragine (University of Bari), Pierfelice Rosato (University of Lecce).

1 Index

Introduction SECTION ONE: the analysis 1. The EU Strategy for the Adriatic and Ionian Region (EUSAIR): partners and objectives 1.1 Development pillars 2014 - 2020: sectors 1.2 Funding 2014 - 2020 2. Why to invest in the tourism sector: positive outlooks for 2020 of tourist flows and economic indicators 2.1 Adriatic and Ionian Region: Country Highlights 2.2 The dynamics of tourism receipts and expenditure 2.3 Demand side: some information about touristic flows 2.4 The main trends of Arrivals in the Region 2.5 The World tourism trends: demand side 3. The competitive position of the tourism sector in the Adriatic and Ionian Region 3.1 Various tourism segments with important contributions to sector turnover 3.2 Leisure and Business tourism in the Adriatic and Ionian Region: different levels of development 3.3 The cultural and natural heritage: performance evaluation 3.4 Nautical Tourism: the big resource of the Adriatic and Ionian Region 4. The most relevant barriers to competitiveness for the tourism sector 4.1 Adriatic and Ionian Heritage: a SWOT analysis 4.2 A multidimensional approach of tourism sector: a new way of network governance

SECTION TWO: the strategy 5. A joint strategy for a sustainable tourism development in the Eusair Area 5.1 Introduction 5.2 A shared strategy for cooperation in tourism. Priorities 6. Action framework 6.1 Line 1: Improve quality and innovation in tourism supply chain 6.2 Line 2: Create an integrated tourism offer 6.3 Line 3: Bring about a flexible interface management system 6.4 Line 4: Increase physical and informative accessibility to the Area 7. An overview of tourism in the Eusair Area: National Strategies 7.1 Introduction 7.2 Albania 7.3 Bosnia & Herzegovina 7.4 Croatia 7.5 Greece 7.6 Montenegro 7.7 Serbia 7.8 Slovenia Conclusions Appendix and methodological notes of the section one

2 “One’s destination is never a place, but a new way of seeing things” Henry Miller

Introduction

The success of a tourist destination is determined by its capacity to gather, analyze and use information regarding its actual and potential customers, to value its assets and to act rationally on the weaknesses that limit development. In this way, this study examines the socio-economic data gathered over the last decade both internationally and within the Adriatic and Ionian Region. The aims is to measure the factors and policies that have been successful in developing the travel and tourism sector in the different countries and across the Region as a whole, in addition to identifying the possible barriers to competitiveness for the tourism sector. In the last decade tourism has continued to be a main sector for economic development and for sustaining employment, in both advanced and developing economies. A strong travel and tourism sector contributes in many ways to development and the economy. According with the results of this study, in the Adriatic and Ionian Region, the quality of transport infrastructure, the formation of the human resources and price competitiveness are identified as the most relevant barriers to competitiveness for the tourism sector. A public infrastructure that supports Travel & Tourism expansion is identified to serve rural and regional development purposes and greatly aid employment generation, economic growth and foreign investment. In order to keep up with the increasing position of larger international countries it is necessary to initiate a common strategy for all partners in the Region to establish a clear vision, strategy and follow- on implementation. A more effective and more extensive industry engagement, reforms of an antiquated labor law and fiscal system, and active environmental protection. The value of this study is that it identifies the key trends over the last decade for what is beneficial and detrimental to the travel and tourism industry and it identifies the main priorities in order to keep the Adriatic and Ionian Region in the higher rankings in the world tourism competitive charts, namely the creation of a unified image, a unique brand will enable new foreign market shares and the ability to compete on a global level. These issues have recently begun to be addressed by some Government and the private sector jointly and will continue to require investment of funds, energy and time in order to succeed. It is also necessary to break down the markets into smaller groups to enhance the effectiveness of the marketing strategy. Given their differential characteristics, heterogeneous markets are difficult to manage. Through development of brand and touristic identity - that can be express from the brand VISIT. AIR (Adriatic and Ionian Region) - , brand positioning on national and international markets and a worldwide high value promotion of integrated tourist products and services, by 2025 the Adriatic and Ionian Region could become a unique, compact and homogeneous destination, able to offer the same quality and promote itself on the world market.

3 SECTION ONE: The analysis

1 - The EU Strategy for the Adriatic and Ionian Region (EUSAIR): partners and objectives

The Adriatic and Ionian Region is a functional area, primarily defined by the Adriatic and Ionian Seas basin. It is composed of 8 countries (four EU members and four non EU members) and 14 Italian regions represented, and it also covers an important terrestrial surface area of 555.000 km² and has 71 million inhabitants (around 14% of EU) – Table and Figure 1. It treats the marine, coastal and terrestrial areas as an interconnected system. After Croatia’s accession to the EU, trade and tourism intensified and increased rapidly. For this reason, along with the prospect of other countries accession to the EU, port hinterlands plays a prominent role in strengthening geographical continuity in Europe. The EUSAIR strategy builds upon the Adriatic-Ionian initiative, which concerns 8 countries. The strategy intends to consolidate the integration process, both between and within states, by improving cooperation and defining more concrete regional dimensions. It promotes the involvement of local authorities and civil society in the decision making process and also in the implementation of EU regional policy. In this way, the project - Adriatic and Ionian Governance Operational Plan - will contribute significantly to the improvement of cross-border cooperation by focusing on the following main objectives:

➢ Promote the adoption of a common, innovative and inclusive development plan, designed to constitute an effective governance model in the area; ➢ Implement skills share conferences, trainings and lectures for the representatives of the participating local and regional authorities in order to improve knowledge and awareness on European integration and EU accession;

➢ Improve local authorities planning capacity, structural fund management, fund- raising and networking activities;

➢ Define new cross-border cooperation agreements in the post-IPA planning; Set up a

pilot action on multilevel governance8¹.

This research focuses on pillar 4 “Sustainable Tourism”. The main aim of this research is to provide a platform and to put ‘words to actions’ by identifying concrete priorities and development plans for the Macro-region. Once an action or development plan is completed, the countries and the stakeholders concerned should implement it. The EUSAIR strategy was devised by a wide range of stakeholders from the Adriatic and Ionian Region in an extensive, bottom-up consultation process. These stakeholders included national, regional and local authorities and also representatives from the private sector, academic and civil societies. This approach allowed stakeholders at all levels to comment on and to endorse the selected four pillars, as well as to point to actions/projects under each pillar that appeared promising for responding to challenges and opportunities shared by participating countries. The first part of this study analyses the socio-economic data concerning tourism supply and demand, and also travel behavior within the participating regions. The following main factors and indices will be reconstructed and examined: GDP, employment, expenditure, arrivals, nights spent, internationalization

1 POSIZIONE DELLE REGIONI E DELLE PROVINCE AUTONOME SUL PIANO DI AZIONE PER LA STRATEGIA DELLA MACROREGIONE ADRIATICO-IONICA (EUSAIR), Roma, Giugno 2014 4

The first part of this study analyses the socio-economic data concerning tourism supply and demand, and also travel behavior within the participating regions. The following main factors and andindices low will season be reconstructedestimate, employment and examined: in the tourism GDP, employment, sector, air transport expenditure, and land arrivals, transport. nights It spent,aims to highlight the capacity and the importance of the social and economic developments that the participating regionsinternationalization have achieved and through low season the implementation estimate, employment of the strategy, in the tourismspecifically sector, concerning air transport the tourism and sector.land transport. It also intends It aims to measure to highlight and adapt the capacity future development and the importance dynamics of by the examining social and the economicresults and identifyingdevelopments key thatpoints the for participating improvement regions based on have the region’s achieved characteristics. through the implementation of the Tablestrategy, 1 - Adriatic specifically and Ionian concerning Region: thesome tourism data sector. It also intends to measure and adapt future development dynamics by examining the results and identifying key points for improvement based on the region’s characteristics. 4 EU Members States: Table 1 - Adriatic and Ionian Region: some data Croatia, Greece, Slovenia,

Italy (14 Regions: Lombardia, Provincia Autonoma di Trento, Provincia Autonoma di Bolzano, Veneto, Friuli Venezia Giulia, 4 EU Members States: Emilia Romagna, Marche, Umbria, Abruzzo, Molise, Puglia, Basilicata, Calabria, Sicilia). 8 Countries8 Countries 4 Not-EUCroatia, Greece, Countries: Slovenia, Italy (14 Regions: Lombardia, Provincia Autonoma di Trento, Provincia Autonoma di Bolzano, Veneto,Albania, Friuli Venezia Bosnia Giulia, and Emilia Herzegovina,4 Not Romagna,-EU Countries: Marche, Montenegro, Umbria, Abruzzo, Serbia Molise, Puglia, Basilicata, Calabria, Sicilia). Population More than 71 million (14% of the EU) Albania, Bosnia and Herzegovina, Montenegro, Serbia Area 555.000 km² TouristsPopulation (Arrivals) More than 110 million of tourist (about 13% of EU) Nights SpentArea in touristic More than 71 million (14% of the EU) 421 million accommodationsTourists (Arrivals) 555.000 km² Nights Spent in touristic accommodationsTourist About 313.000More (Hotels, than 110 millionB&B, ofCamping, tourist (about Villages 13% of EU) and similar) accommodations Tourist accommodations 421 million UNESCO Heritage 76 sites (21% of the EU) UNESCO Heritage About 313.000 (Hotels, B&B, Camping, Villages and similar)

NationalNational Parks Parks 65 parks76 sites (15% (21% of the the EU) EU)

65 parks (15% of the EU) AREA Population Surface (km²) AREA Population Surface (km²)

37.500.000 179.000 Italian ItalianAdriatic Adriatic and and Ionian Ionian Regions 37.500.000 179.000 RegionsGreece 10.903.000 131.000 GreeceCroatia 10.903.000 4.246.000 131.00056.000

CroatiaSlovenia 4.246.000 2.061.000 56.00020.000 SloveniaAlbania 2.061.000 2.895.000 20.00028.000 AlbaniaSerbia 2.895.000 9.146.000 28.00077.000 Bosnia & Herzegovina Serbia 9.146.000 3.830.000 77.00051.000

Montenegro 71.202.000621.000 555.00013.000 TotalBosnia Adriatic & Herzegovinaand Ionian regions 3.830.000 51.000 Source: EurostatMontenegro 621.000 13.000

Total Adriatic and Ioni- 71.202.000 555.000 an regions

Source: Eurostat

A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure 1 - Geographic Map

Source: http://www.adriatic-ionian.eu/

The currentThe state current of Adriatic state of and Adriatic Ionian and regional Ionian cooperation regional cooperation regarding management regarding management of sustainable of tourismsustainable is rather tourism limited. is This,rather in limited.turn, causes This, limitations in turn, causes in common limitations organizational in common structures, organizational human resources and even financial issues. structures, human resources and even financial issues. ItIt is is necessary necessary to to implement implement an an action action plan, plan, aimed aimed at at the the better better understanding understanding of of ‘sustainable ‘sustainable development amongst stakeholders’. This should include the establishment and promotion of generally development amongst stakeholders’. This should include the establishment and promotion of accepted standards and rules, and the improved cooperation between public and private tourism associations.generally accepted standards and rules, and the improved cooperation between public and private tourism associations. The net gains of such an approach would include an increase in tourist flow, access to new tourism markets,The net more gains business of such opportunitiesan approach wouldand diffusion include anof increasenew technologies in tourist and flow, know-how. access to Itnew would tourism also leadmarkets, to an increasemore business in employment opportunities by creating and diffusion positions of andnew enterprisetechnologies development and know -byhow. improving It would resourcealso lead efficiency. to an increase Finally, init employmentwould have positive by creating effects positions on the andpreservation enterprise of natural development capital by and cultural heritage9². improving resource efficiency.3 Finally, it would have positive effects on the preservation of natural capital and cultural heritage . 2 COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIALCOMMITTEE AND THE COMMITTEE OF THE REGIONS CONCERNING THE EUROPEAN UNION STRATEGY FOR THE ADRIATIC AND IONIAN (Brussels, 17.6.2014). 6

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS concerning the European Union Strategy for the Adriatic and Ionian (Brussels, 17.6.2014).

8 1.1- Development Pillars 2014 - 2020: sectors

The strategy for the economic, social and cultural development in the Adriatic and Ionian partners is based on four main Pillars, showed below:

A. BLUE GROWTH (Blue technologies, Fisheries and aquaculture, Maritime and marine governance and services)

The overall objective of Pillar 1 is about driving innovative maritime and marine growth in the Adriatic and Ionian Region by promoting sustainable economic growth and jobs as well as business opportunities in the blue economy sectors. This requires building on the regional diversity in the Adriatic and Ionian Region and taking into account that there are various pathways to innovative maritime and marine growth. At the same time, a number of challenges and development opportunities need to be approached through cooperation among the countries, regions and cities.

B. CONNECTING THE REGION (Maritime transport, Intermodal connections to the hinterland, Energy networks)

The overall objective of Pillar 2 is to improve connectivity within the Region and with the rest of Europe in terms of transport and energy networks. This requires thorough coordination of infrastructure works and the improved operation of transport and energy systems between the countries.

The Macro-region is facing huge infrastructure disparities, notably between ‘old’ EU member states and the other countries, following years of isolation and conflict. Better transport and energy connections are compelling needs for the macro-region and a precondition for its economic and social development. Infrastructure projects should be embedded in a wider sustainable transport plan linked to local and regional air quality plans.

Efficient and sustainable transport connections, capable of coping effectively with increased traffic flows, will create attractiveness for both foreign direct investments and for tourism, hence jobs and prosperity.

Better use of intermodal transport will reduce the costs of delivering goods in Central and Eastern Europe, improve the eco-balance and restore the competitive position of the North Adriatic ports as natural gateways to Central and Eastern Europe.

Better interconnected energy networks will benefit the whole South East Europe region,and beyond. A better working and interconnected energy market will reduce wholesale prices and attract investors.

C. ENVIRONMENTAL QUALITY (The marine environment, transnational terrestrial habitats and biodiversity)

The overall objective of this Pillar is to address the issue of environmental quality, with respect to marine, coastal and terrestrial ecosystems within the Region. Environmental quality is essential for promoting activities in the region and for ensuring economic and social well-being for the people. This Pillar deals with environmental issues that can only be adequately tackled through cooperation and planning at the level and scale of the Macro-region.

7 D. SUSTAINABLE TOURISM - Diversified tourism offer (products and services); Sustainable and responsible tourism management (innovation and quality)

The last Pillar, which is the focus of this article, proposes a strategy for developing the sustainable and responsible tourism potential of the Adriatic and Ionian Region through innovative and quality tourism products and services. It also aims to promote responsible tourism behavior on the part of all stakeholders (wider public, local, regional and national private and public actors, tourists/visitors) across the Region. Facilitating the socio-economic perspective, the processes of removing bureaucratic obstacles, creating business opportunities and enhancing competitiveness within the Area are essential for the development of tourism. In particular, the main objectives of this Pillar are: • Enhance value and exposure for the lesser represented artisanal sectors (rural environment, food farming, seafood production, handicraft); • Improve and distribute promotional material linked to the locations of The First and Second World War, with the aim of being recognized with the UNESCO heritage status; • Enhance cruise and nautical tourism in line with local sustainable development plans, in order to strengthen the themes and characters identified by the Adriatic and Ionian culture; • Create promotional programs concentrated on the Adriatic and Ionian selling point, by executing strategic actions for matchmaking on target areas through new technologies and social networking; • Improve the image and brand of the Adriatic and Ionian Region (#VisitA.I.R.) in order to consolidate an improved image of sustainable quality, which includes giving support to cooperation and intercultural dialogue forms; • Establish a balance between the systems and practices of environmental certification, with clear quality and performance measurement guidelines; • Increase youth employment rate, reduce long-term unemployment number and properly support people at risk of long-term unemployment by the creation of new job opportunities in agricultural areas; • Fulfillment of KICs (Knowledge and Innovation Communities) by structuring intermodal information systems for the Adriatic and Ionian Area; • Improve multi-level governance by observing and identifying better ways to implement and to manage the operational programs and tourism management; • Improve awareness and knowledge of index and common statistics creation, including the dissemination and appreciation of existing ETIS value (European Tourism Indicators System); • Establish and maintain a “Creative District” which supports cultural and creative enterprises. Support the Smart Specialization and the Smart Communities processes, by enhancing the existing innovative platforms (starting with access to credit process activation, continuative training and mobility workshops, creation of business and enterprise incubators and visual

& musical art grants and initiatives)10³.

3 CONFERENZA DELLE REGIONI E DELLE PROVINCE AUTONOME - 14/076/CR07/C3. POSIZIONE DELLE REGIONI E DELLE REGIONI E DELLE PROVINCE AUTONOME SUL PIANO DI AZIONE PER LA STRATEGIA DELLA MACRO- REGIONE ADRIATICO-IONICA (EUSAIR). Roma, 12 giugno 2014. 8

1.2 - Funding 2014-2020

Between 2014-2020, the new regulatory framework for European Structural and Investment Funds (ESIF) along with the Instrument for Pre-accession Assistance (IPA), for non-EU countries, provide significant financial resources, tools and technical opportunities (the summary is shown inable T 2). The Macro-regional approach has already been included in the new generation of regulations for the programming period of 2014-2020. In addition to the involvement of international financial institutions, the Western Balkan Investment Framework (W.B.I.F.) provides finance and technical assistance for strategic investments, particularly in infrastructure, energy efficiency and private sector development. By capitalizing on the work of two other macro regional strategies on innovative financing and implementation of projects, benefits from innovative options involving, among others, the WBIF become available. The European Investment Bank (EIB), for its part, stands ready to mobilize its financing tools and expertise in support of suitable projects under the topics included in the Action Plan. The EIB can extend support to both public and private sector activities in the form of lending, blending and technical advice. It offers a variety of financing instruments, ranging from investment loans for both direct and indirect financing to equity funds via the European Investment Fund. Relevant and appropriate funding for the other Pillars is also available. These include the European Maritime and Fisheries Fund, as well as Horizon 2020, which target Blue Growth as one of its focus areas for RTD. These examples can lend key support to the implementation of actions and projects under Pillar One. Subsequently, the Connecting Europe Facility (CEF) supports the development of high- performing, sustainable and efficiently interconnected trans-European networks in the field of transport, energy and digital services. The Facility focuses on projects with high added EU value, such as building missing cross-border links and removing bottlenecks along main trans- European transport corridors. This is beneficial and linked with Pillar 2 aims. As for Pillar Three, funding by the LIFE programme is available also to non-Member States. This programme explicitly mentions cross-border actions and includes mitigation as well as an adaptation Pillar. Pillar Four may, among others, benefit from the COSME programme, which is in line with the integrated approach encouraged by the EUSAIR strategy. This Pillar focused on ‘Sustainable Tourism’ is strongly linked and forms a connection to the other three pillars. Successful implementation of the Action Plan for Pillar Four could thus be reinforced thanks to increased and better intermodal connectivity, which is the focus of other Pillars, play an evident role in ensuring the integrated sutainability sought through the Pillar11⁴.

4 COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL AND THE COMMITTEE OF THE REGIONS CONCERNING THE EUROPEAN UNION STRATEGY FOR THE ADRIATIC AND IONIAN REGION (Brussels,.6.2014). 9 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

TableTable 2 - TheThe main European StructuralStructural andand InvestmentInvestment Funds Funds inin 2014-20202014-2020

5 European5 European Structural and GlobalGlobal Budget Budget StructuralInvestment and Funds Brief Description Brief Description (Billion(Billion - -Euro) Euro) Investment(ESIF) Funds (ESIF)

The ERDFThe aims ERDF to aims strengthen to strengthen economic economic and and social European Regional cohesion in the European Union by correcting imbal - cohesion in the European Union by correcting DevelopmentEuropean Regional Fund Development ances betweenimbalances its regions. between Sectors: its regions. Sectors: (ERDF)Fund (ERDF) -Innovation and research-Innovation and research -The digital agenda -The digital agenda 18 -Support for-Support small for and small medium-sized and medium-sized en enterprise terprisess (SMEs) (SMEs) 18 -The low-carbon economy-The low-carbon economy The ESF is Europe’s main instrument for supporting jobs, helping peopleThe ESF get is Europe’s better mainjobs instrumentand ensuring for fairer job opportunitiessupporting jobs, for helpingall EU peoplecitizens. get better jobs and It works by investing in Europe’s human capital - its ensuring fairer job opportunities for all EU citizens. 83 ESF (European Social workers, its youngIt works people by investing and all in thoseEurope’s seeking human a job. ESF financing of EUR 10 billion a year is improving Found capital – its workers, its young people and all those 83 ESF (European Social Found)job prospectsseeking for amillions job. ESF financing of Europeans, of EUR 10 in billion particu a - lar, those whoyear find is improving it difficult job prospects to get for work. millions of The EAFRDEuropeans, is financed in particular, under those Pillar who II find of itthe difficult Com- mon Agricultural Policy (CAP).to get work. It shall contribute to the Europe 2020The EAFRD Strategy is financed by promoting under Pillar sustainable II of the European rural developmentCommon throughout Agricultural Policythe Union (CAP). inIt shalla com - Agricultural Fund plementary mannercontribute to to the the otherEurope instruments 2020 Strategy ofby the for Rural common agriculturalpromoting policysustainable (hereinafter rural development “CAP”), to Development cohesion policy throughout and the to Union the common in a complementary fisheries manner policy. European Agricultural Fund for Rural (EAFRD) It shall contributeto the to other a more instruments territorially of the andcommon environ - 9595 Development (EAFRD)mentally balanced,agricultural climate-friendly policy (hereinafter and“CAP”), resilient to cohesion and innovativepolicy Union and agricultural to the common sector. fisheries policy. It shall contribute to a more territorially and It is one of environmentallythe five European balanced, Structural climate-friendly and Invest and - European Mari- resilient and innovative Union agricultural sector. time and Fisheries ment (ESI) Funds which complement each other and EuropeanFund Maritime and Fisheriesseek Fund to promoteIt is one a growth of the five and European job-based Structural recovery and in (EMFF)(EMFF) Europe. Investment (ESI) Funds which complement each 6,4 other and seek to promote a growth and job-based 6,4 • The Cohesion Fundrecovery is aimed in Europe.at Member States whose Gross National Income (GNI) per inhabitant is lessThe than Cohesion 90 % Fund of theis aimed EU average. at Member It States aims whose to reduce economicGross National and socialIncome disparities (GNI) per inhabitant and to ispro less- mote sustainablethan 90 development. % of the EU average. For Itthe aims 2014-2020 to reduce CohesionCohesion Fund Fund period, theeconomic Cohesion and Fund social concerns disparities Bulgaria, and to promote Cro- atia, Cyprus,sustainable the Czech development. Republic, For Estonia, the 2014- Greece,2020 period, 63,463,4 Hungary, Latvia,the Cohesion Lithuania, Fund concernsMalta, Poland, Bulgaria, Portugal, Croatia, Romania,Cyprus, Slovakia the Czech and Slovenia.Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. 10

11 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Global Budget Other Resources Brief Description Other Resources Brief Description Global(Billion Budget - Euro) (Billion - Euro) Current beneficiaries are- Albania, Bosnia IPA (Instrument for Pre- and Herzegovina,Current beneficiaries the former are- Albania, Yugoslav Bosnia Re and- 11,5 IPAaccession (Instrument Assistance) for Pre-accession publicHerzegovina, of Macedonia, the former Iceland, Yugoslav Kosovo, Republic Mon of- 11,5 Assistance) tenegro,Macedonia, Serbia, Iceland, and Turkey. Kosovo, Montenegro, Serbia, Competitiveness of En- COSME is the EU programand Turkey. for the Competi- terprises and Small and tiveness of Enterprises and Small and Medi- Competitiveness of Enterprises and COSME is the EU program for the Competitiveness 2,3 SmallMedium-sized and Medium Enterprises-sized Enterprises um-sized of Enterprises Enterprises and (SMEs). Small and Medium-sized 2,3 (COSME)(COSME) Enterprises (SMEs). CreativeCreative Europe Europe is isthe the EuropeanEuropean Commission’s Commis- CREATIVECREATIVE EUROPE EUROPE sion’sframework framework program program for support for to supportthe culture to and 1,41,4 the culture and audiovisualaudiovisual sectors. sectors. € HorizonHorizon 2020 2020 is theis the biggest biggest EU EU Research Research and Innovation program ever with nearly 80 billion and Innovation program ever with nearly €80 ofbillion funding of available funding over available 7 years (2014over 7to years 2020) – HORIZON 2020 (2014 in to addition 2020) –to inthe additionprivate investment to the privatethat this 8080 HORIZON 2020 investmentmoney that will this attract. money It promises will attract. more It promisesbreakthroughs, more breakthroughs, discoveries and world discoveries-firsts by taking great ideas from the lab to the market. and world-firsts by taking great ideas from the lab to the market. Under the Connecting Europe Facility (CEF), Under€26.25 the billionConnecting will be madeEurope available Facility from (CEF), the EU’s 2014-2020 budget to co-fund TEN-T projects in the €26.25 EU billion Member will States. Of be this made amount, € avail11 - able frombillion will the be EU’s available 2014-2020 only for projects budget in to co-fundMember States TEN-T eligible projects for the Cohesion in the Fund. EU The Connecting Europe Facility regulation sets out the Connecting Europe Facility(CEF) Member States. Of this amount, €11 26 billionrules will for be awarding available EU financial only for support, projects priority in Connecting Europe Member projects States and eligible the maximum for limits the of Cohe EU - Facility(CEF) sion co Fund.-financing The per type Connecting of project. It Europe also includes Fa- a 26 cility pre regulation-identified list sets of projects out the where rules most CEF for awarding EUinvestments financial will besupport, placed. priority projects and the maximum limits of EU co-financingIt is divided per intotype two of sub project.- program: It also includes• LIFE a pre-identifiedsub- program for listEnvironment, of projects including where as most CEF priorities investments areas environment will be placed. and resource efficiency, nature and biodiversity, LIFE It is dividedand governanceinto two and sub- information program: • LIFE sub- program for Environment, in- 3,2 cluding• LIFE as sub priorities- program areas for Climate environment Action, including as priorities areas adaptation, mitigation and- Source: European Commission; http://ec.europa.eu/ governance and information versity, and governance and information LIFE •and LIFE resource sub- program efficiency, for nature Climate and Action, biodi including as priorities areas adaptation, 3,2 mitigation and governance and information

Source: European Commission; http://ec.europa.eu/ 11

12 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

2 - Why to invest in the tourism sector: positive outlooks and economic indicators for 2020

2 - Why toThe invest number in theof international tourism sector: tourist positive arrivals outlooks within the and Adriatic economic and indicatorsIonian region for reached 2020 1.1 billion in 2014 (51 million more than in 2013). According to the latest UNWTO World Tourism The number of international tourist arrivals within the Adriatic and Ionian region reached 1.1 billion Barometer, this shows a 4,7% increase since the previous year. UNWTO forecasts a further growth in 2014 (51 million more than in 2013). According to the latest UNWTO World Tourism Barometer, this showsof international a 4,7% increase tourism since by 3%the previousto 4% in year.2015, UNWTO which contributes forecasts asignificantly further growth to global of international economic tourismrecovery. by 3% In to 2013, 4% ininternational 2015, which tourism contributes receipts significantly reached US$ to1.000 global billion, economic US$ 230 billionrecovery. more In 2013, internationalthan in 2008,tourism the receipts pre-crisis reached year. US$ Last 1.000 year, billion, the US$ expenditure 230 billion from more international than in 2008, tourism the pre-crisis and year.emerging Last year, source the expenditure markets, especially from international in China, tourism India and and South emerging-East Asia, source compensated markets, especially for the in China, India and South-East Asia, compensated for the slowdown of the larger traditional markets, whichslowdown had been ofdriving the larger tourism traditional expenditure markets, in previous which years had (Germany, been driving France, tourism Italy). expenditure in previous years (Germany, France, Italy). Observing Chart 2.1, it is possible to abide by a growth of the seven assets examined from 2004 to 2009, the year in which the effects of the financial crises rose. However, world tourism was able to revive itself in aObserving couple of Chartyears, 2.1, in spiteit is possible of investment to abide contraction by a growth and of theinternal seven consumption, assets examined by boostingfrom 2004 its aptitudeto 2009, to generate the year employment. in which the effectsTourism of thehas financialbeen the crisesmost resilientrose. However, sector worldagainst tourism the blows was of able the financialto revive crisis. itself in a couple of years, in spite of investment contraction and internal consumption, by boosting its aptitude to generate employment. Tourism has been the most resilient sector against FigureFigurethe 2 -blows Economy 2 - Economyof the and financial Travel and PerformanceTravel crisis. Performance of the world. of the % Valueworld. Growth % Value in 2003-2014Growth in (Index2003- 2014Numbers (Index 2003 = 100) Numbers 2003 = 100)

290

270 250 Direct contribution to GDP

230 Total contribution to GDP

210 Visitor Exports (Foreign spending) 190 Investment (Capital investment) 170 Direct contribution to employment 150 130 Domestic Tourism Spending

110 Government Individual Expenditures 90 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: WTTC (World Travel and Tourism Council). Units: Value in Thousands of people for Direct contribution to employment ; US$ in bn Source:(Nominal) WTTC for (World the other Travel values. and Tourism Council). Units: Value in Thousands of people for Direct contribution to employment ; US$ in bn (Nominal) for the other values.

According to World Travel & Tourism Council data, the direct contribution of Travel & Tourism sector to AccordingGDP was about to World US$ 2.100 Travel bn & (2,9% Tourism of total Council GDP) data,in 2015 the (Figure direct 3), contribution and was forecasted of Travel to rise & by 4,3%Tourism in 2015,sector growing to GDP was by 4,2%,about US$from 2.100 2014-2020 bn (2,9% the ofgrowth total GDP)will be in US$2015 3.000 (Figure bn (3,1%3), and of wastotal GDP). Travel & Tourism investment was US$ 754 bn or 4,4% of total investment. It rose by 5% in 2015, and shouldforecasted increase to rise by by5,1% 4,3% over in the 2015, next growingten years by to 4,2%,US$ 1.310 from bn 2014 in 2020-2020 (4,9% the ofgrowth total). will be US$ 3.000 bn (3,1% of total GDP). Travel & Tourism investment was US$ 754 bn or 4,4% of total Total global Travel & Tourism GDP is now expected to grow by 4% in 2015, according to WTTC’s investment. It rose by 5% in 2015, and should increase by 5,1% over the next ten years to US$ 1.310 latest analysis. With the global economy forecast to grow by 2,5%, the Travel & Tourism sector will continuebn in to 2020 outperform (4,9% of thetotal). wider economy, as it has done for three consecutive years. In 2015, it was estimated that the total contribution of the sector would be US$ 7.800 billion to world GDP (2013 prices and exchange rates) and that it would support 274 million jobs across the globe. These figures proved correct, and underline the economic significance of the tourism sector.

12 13 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Total global Travel & Tourism GDP is now expected to grow by 4% in 2015, according to Total global Travel & Tourism GDP is now expected to grow by 4% in 2015, according to WTTC’s latest analysis. With the global economy forecast to grow by 2,5%, the Travel & Tourism WTTC’s latest analysis. With the global economy forecast to grow by 2,5%, the Travel & Tourism sector will continue to outperform the wider economy, as it has done for three consecutive years. sector will continue to outperform the wider economy, as it has done for three consecutive years.

In 2015, it was estimated that the total contribution of the sector would be US$ 7.800 billion In 2015, it was estimated that the total contribution of the sector would be US$ 7.800 billion to world GDP (2013 prices and exchange rates) and that it would support 274 million jobs across the to world GDP (2013 prices and exchange rates) and that it would support 274 million jobs across the globe. These figures proved correct, and underline the economic significance of the tourism sector. Figureglobe. 3 These - World figures Travel proved & Tourism correct, Performance and underline - Forecast the economic of 2020 (Absolute significance Values of the in tourismUS$ bn) sector. Figure 3 - World Travel & Tourism Performance - Forecast of 2020 (Absolute Values in US$ bn)

Figure 3 - World Travel & Tourism Performance - Forecast of 2020 (Absolute Values in US$ bn)

10.000 10.000

8.000 Direct contribution to GDP 8.000 Direct contribution to GDP Total contribution to GDP Total contribution to GDP 6.000 6.000 Visitor Exports (Foreign spending) Visitor Exports (Foreign spending) Investment (Capital investment) 4.000 Investment (Capital investment) 4.000 Internal T&T Consumption Internal T&T Consumption 2.000 Domestic Tourism Spending 2.000 Domestic Tourism Spending

0 0 Source:Source: WTTCWTTC (World (World2015 Travel Travel and Tourismand2016 Tourism Council). Council).2017 2018 2019 2020 Source: WTTC (World2015 Travel and Tourism2016 Council).2017 2018 2019 2020

In 2020, in accordance with the increasingly conducive macroeconomic climate, it is expected that In 2020, in accordance with the increasingly conducive macroeconomic climate, it is Travel &In Tourism 2020, inactivity accordance will increase, with the with increasingly total Travel conducive & Tourism macroeconomic GDP growth of climate, 3,9%. However, it is expected that Travel & Tourism activity will increase, with total Travel & Tourism GDP growth of Europeexpected is seizing that Travel only part & Tourism of this opportunity, activity will increase,especially with visible total when Travel assessing & Tourism the performance GDP growth of of the Mediterranean3,9%. However, regions Europe (Figure is seizing 4) where only part Italy of is this still opportunity, in recession especialland Francey visible is also when stagnating, assessing and the even 3,9%. However, Europe is seizing only part of this opportunity, especially visible when assessing the Germanyperformance performing of the Mediterranean weaker than expected. regions (Figure 4) where Italy is still in recession and France is performance of the Mediterranean regions (Figure 4) where Italy is still in recession and France is Figurealso stagnating, 4 - Total Tourism and even Growth: Germany World, performing Europe and weaker Mediterra than neanexpected. countries in 2014 (%) Figurealso stagnating, 4 - Total Tourism and even Growth: Germany World, performing Europe and weaker Mediterra than neanexpected. countries in 2014 (%)

Figure 4 - Total Tourism Growth: World, Europe and Mediterranean countries in 2014 (%)

6,0 EUROPE 6,0 EUROPE 5,0 5,0 WORLD 4,0 WORLD 4,0 3,0 3,0 MEDITERRANEAN 2,0 AREAMEDITERRANEAN 2,0 AREA 1,0 1,0 0,0 0,0 Total Travel & Direct T&T GDP Domestic T&T Visitor Export T&T Investment -1,0 Total Travel & Direct T&T GDP Domestic T&T Visitor Export T&T Investment -1,0 Tourism (T&T) Spending Spending -2,0 TourismGDP (T&T) -2,0 GDP Source: WTTC (World Travel & Tourism Council).

14 14

13 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Source: WTTC (World Travel & Tourism Council).

A EuropeanOn strategy the forother the tourism side sectorof Adriatic in the Adriatic sea, and after Ionian a Regiondecade (EUSAIR): of war competitiveness, and subsequent internationalization political and crises, sustainability the East Adriatic Area is now rebuilding its Travel & Tourism economy. Yet its full potential as a tourist destination remains untapped. Reconciling its central location and abundant natural and cultural

Source:resources, WTTC (World together Travel & with Tourism a Council). supportive regulatory, legal and business framework, will help the East

Adriatic2.1 - Adriatic and Ionian Region: Country Regions to develop its tourism product Highlights into one with wide appeal for new target markets.

On the other side of Adriatic sea, after a decade of war and subsequent political crises, the East Adriatic Area is now rebuilding its Travel & Tourism economy. Yet its full potential as a tourist destination remains untapped. Reconciling its central location and abundant natural and cultural resources, According together with on WTTC, a supportive in 2014, regulatory, Italy, Bosnia legal and & Herzegovina business framework, and Montenegro will help were the East the Adriatic2.1countries - Adriatic and Ionian Region: Country Regions increasingly to develop investing its tourism in tourism product Highlights in into 2014 one (% with growth), wide ap morepeal forso newthan target any ofmarkets. the others

in the region (Chart 2.4). Since the boom between 2010-2011, Albania has been facing an investment and2.1 -financial Adriatic setback. and Ionian Similarly, Region: Italy Country steps offHighlights and stays behind in the queue to other Adriatic and Ionian CountriesAccording in terms on WTTC, of growth in 2014, (2013/201 Italy, 4) Bosnia of total & Contribution Herzegovina to and GDP, Montenegro internal consumption were the According on WTTC, in 2014, Italy, Bosnia & Herzegovina and Montenegro were the countries increasinglycountriesand domestic increasingly investing tourism investinginspending. tourism in This intourism performance2014 (%in 2014growth), is even(% moregrowth), worse so than than more that any so of than Greece.of the any others of th ine othersthe region (Chartin the region2.4). Since (Chart the 2.4). boom Since between the boom 2010-2011, between Albania2010-2011, has Albaniabeen facing has been an investment facing an investment and financial setback.and financial Similarly,Observing setback. Italy the Similarly, steps total off contribution Italyand stepsstays offbehind of tourismand in stays the to behindqueue the GDP to in other (Tablethe queueAdriatic 3), theto andother value Ionian Adriatic of Italy Countries (220and in termsIonian of Countries growth (2013/2014)in terms of growthof total (2013/201Contribution4) ofto total GDP, Contribution internal consumption to GDP, internal and domestic consumption tourism spending.billion in ThisUS$ performance- Real Price) is is even five worse times than higher that than of Greece. that of Greece (40 bn), and eighty times that and domestic tourism spending. This performance is even worse than that of Greece. ofObserving Albania (2,7 the bn).total However, contribution in Italy, of tourism the incidence to the GDP on total (Table GDP 3), has the declined value of byItaly 15% (220 compared billion in to US$ Observing the total contribution of tourism to the GDP (Table 3), the value of Italy (220 - 2003, Real whilePrice) it is grew five by times 75% in higher Albania, than 40% that in Bosniaof Greece & Herzegovina, (40 bn), and 16%eighty in timesCroatia, that 5% of in AlbaniaGreece, (2,7 bn).billion However, in US$ -in Real Italy, Price) the incidence is five timeson total higher GDP hasthan declined that of Greeceby 15% (40 compared bn), and to eighty 2003, times while that it grew byFigureof200% Albania75% 5 inin - % Montenegro, Albania,(2,7 Real bn). touristic 40%However, 135% in growth Bosnia in in Serbia Italy,in & 2013 Herzegovina, andthe-2014 incidence40% in in the Slovenia 16% Adriaticon totalin Croatia,(Table andGDP Ionian 3).has 5% declined Regionin Greece, by 15%200% compared in Montenegro, to 135% in Serbia and 40% in Slovenia (Table 3). 2003, while it grew by 75% in Albania, 40% in Bosnia & Herzegovina, 16% in Croatia, 5% in Greece, FigureFigure200% 5 5in - - %Montenegro, % Real Real touristic touristic 135% growth growth in Serbia inin 20132013-2014 and-2014 40% in in the Slovenia Adriatic (Table and Ionian 3). RegionRegion 16,0 Total Contribution to GDP 14,0 16,0 12,0 Total Contribution to GDP 14,0 Visit export (Foreingn spending) 12,010,0

10,0 Visit export (Foreingn spending) 8,0 8,0 6,0 Investment (Capital investment) 6,0 Investment (Capital investment)

4,04,0 2,0 2,0 InternalInternal T&T T&T Consumption Consumption 0,0 0,0 Albania Bosnia & Cr oa tia Italy Montenegro Serbia -2,0 Albania HerzegovinaBosnia & Cr oa tia Italy Montenegro Serbia -2,0 Herzegovina Domestic Tourism Spending -4,0 Domestic Tourism Spending Source:- 6,0WTTC-4,0 (World Travel & Tourism Council). Source: WTTC (World Travel & Tourism Council). Source: WTTC (World Travel & Tourism Council). -6,0 Table 3 - Total contribution to GDP, 2003 – 2014 (US$ in billion – Real price) TableTotal contribution 3 3 - - Total Total to contribution contribution to to GDP, GDP, 20032003 – – 2014 2014 (US$ (US$ in billion – Real price) GDP (US$ in bn - Real 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prices) TotalTotal contribution to Albania 1,6 1,6 1,9 2,2 2,5 2,6 2,9 2,9 2,7 2,7 2,6 2,8 2,7 2,7 2,9 3,1 3,2 3,3 contributionGDP (US$ in bn -2003 Real 20042003 2005 20042006 20072005 20082006 20092007 20082010 20092011 20102012 20112013 2012 20142013 20142015 20152016 20162017 20172018 2018 20192019 20202020 Bosniato GDP-Herzegovina (US$ 1,2 1,5 1,6 1,7 1,9 1,9 1,7 1,6 1,6 1,6 1,6 1,7 1,7 1,8 1,9 2,1 2,2 2,3 in bn - prices)Real prices)Croatia 12,3 12,4 13,8 14,7 15,1 15,8 13,2 13,9 13,5 13,9 13,8 14,1 14,4 14,9 15,5 16,2 16,7 17,3 GreeceAlbania 37,91,6 40,81,6 44,71,9 47,42,2 48,52,5 47,72,6 44,12,9 42,92,9 38,82,7 35,62,7 36,92,6 39,12,8 40,32,7 41,52,7 42,82,9 44,23,1 45,63,2 47,43,3 Albania 1,6 1,6 1,9 2,2 2,5 2,6 2,9 2,9 2,7 2,7 2,6 2,8 2,7 2,7 2,9 3,1 3,2 3,3 BosniaItaly-Herzegovina 256,61,2 257,31,5 249,51,6 258,41,7 260,51,9 241,21,9 218,91,7 221,21,6 221,91,6 217,41,6 212,91,6 216,71,7 220,31,7 224,01,8 227,01,9 231,12,1 235,22,2 239,82,3 Bosnia-Montenegro 0,3 0,4 0,5 0,8 1,0 1,1 0,8 0,8 0,8 0,8 0,9 1,0 1,1 1,1 1,2 1,3 1,4 1,6 HerzegovinaCroatia 1,2 1,512,3 1,6 12,41,7 1,913,8 1,914,7 1,715,1 15,81,6 13,21,6 13,91,6 13,5 1,613,9 1,713,8 14,11,7 14,41,8 14,91,9 15,52,1 16,2 2,216,7 17,32,3 Serbia 1,1 1,2 1,4 1,5 2,0 2,2 2,2 2,2 2,3 2,4 2,5 2,6 2,7 2,8 2,9 3,1 3,3 3,4 CroatiaSloveniaGreece 12,3 12,44,537,9 13,8 4,740,814,7 15,15,244,7 15,85,547,4 13,25,648,5 6,047,713,9 5,944,113,5 6,042,9 13,9 6,338,8 13,8 6,235,6 14,16,236,9 6,339,114,4 6,440,314,9 6,641,5 15,5 7,042,8 16,2 7,344,2 16,77,645,6 7,817,347,4 GreeceItaly 37,9 40,8256,6 44,7 257,347,4 48,5249,5 47,7258,4 44,1260,5 241,242,9 218,938,8 221,235,6 221,936,9 217,4 39,1212,9 216,740,3 220,341,5 224,042,8 227,044,2 231,1 45,6235,2 239,847,4 ItalyMontenegro256,6 257,30,3 249,5 0,4258,4 260,50,5 241,20,8 218,91,0 221,21,1 0,8221,9 0,8217,4 0,8 212,90,8 216,70,9 220,31,0 224,01,1 1,1227,0 1,2231,1 1,3 235,21,4 239,81,6 Source: WTTC (World Travel & Tourism Council). MontenegroSerbia 0,3 0,41,1 0,5 1,20,8 1,01,4 1,11,5 0,82,0 2,20,8 2,20,8 2,20,8 2,3 0,92,4 1,02,5 2,61,1 2,71,1 2,81,2 2,9 1,33,1 1,43,3 1,63,4 SerbiaSlovenia 1,1 1,24,5 1,4 4,71,5 2,05,2 2,25,5 2,25,6 6,02,2 5,92,3 6,02,4 6,3 2,56,2 2,66,2 6,32,7 6,42,8 6,62,9 7,0 3,17,3 3,37,6 3,47,8

Source: WTTC (World Travel & Tourism Council). Source: WTTC (World Travel & Tourism Council). 15

15 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

ForecastsA European for 2020 strategy (Figure for the tourism 6), indicatesector in the growthAdriatic and rates Ionian Region between (EUSAIR): 4% competitiveness, and 10% internationalization for the areas and of sustainability recent tourism development, in particular in Bosnia & Herzegovina and Montenegro. Slower the performance of Italy, Croatia and Greece. Figure 6 - Forecast of 2014-2020 (% growth) Forecasts for 2020 (Figure 6), indicate growth rates between 4% and 10% for the areas of recent tourism development,Forecasts for in 2020 particular (Figure in Bosnia 6), indicate & Herzegovina growth rates and between Montenegro. 4% and Slower 10% the for performance the areas of of recent Italy,

12,0Croatiatourism and development, Greece. in particular in Bosnia & Herzegovina and Montenegro. Slower Totalthe performance of Italy, Croatia and Greece. Contribution FigureFigure 6 - 6Forecast - Forecast of 2014-2020 of 2014-2020 (% growth) (% growth) to GDP 10,0 Visit export (Foreingn 12,0 Total 8,0 spending) Contribution to GDP 10,0 6,0 Investment (Capital Visit export (Foreingn 8,0 investment) spending) 4,0 Internal T&T 6,0 Investment Consumption(Capital investment) 2,0 4,0 Internal T&T Domestic Consumption 0,0 2,0 Tourism Albania Bosnia & Croatia Greece Italy Montenegro Serbia Slovenia Spending Herzegovina Domestic 0,0 Tourism Source: WTTC Albania(World TravelBosnia & Tourism & Council).Croatia Greece Italy Montenegro Serbia Slovenia Spending Herzegovina Source: WTTC (World Travel & Tourism Council). Source: WTTC (World Travel & Tourism Council).

In theIn future, the future, all EUSAIR all EUSAIR countries countries will will record, record, in thein thenext next years, years, an anincrease increase in employmentin employment (Direct Contribution)(Direct Contribution)In betweenthe future, between 2% all and EUSAIR 6% 2% for and countries 2014-2020, 6% for will 2014 with record,- 2020,a peak in with thegrowth next a peak foryears, the growth two-yearan increase for theperiod in two employment 2016-2018.-year In Montenegro,(Direct Contribution) the average between growth 2%for this and period 6% for is 2014forecast-2020, to exceed with a 5% peak (Table growth 4). for the two-year period 2016-2018. In Montenegro, the average growth for this period is forecast to exceed 5% (Table period 2016-2018. In Montenegro, the average growth for this period is forecast to exceed 5% (Table 4). TableTableTable 4).4 4 - - Direct Direct 4 - Direct contribution contribution contribution to to employment, employment, to employment, forecastforecast forecast of 2014-20202014 of 2014-2020- 2020(Thousands (Thousands (Thousands of of jobs) jobs) of jobs)

DirectDirect Directcon - contribution %% Average Average% Average tributioncontribution to 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Growth employmentto to 2014 2015 2016 2017 2018 2019 2020 GrowthGrowth employment 2014 - 2020 (Thousandsemployment 2014 - 2020 of(Thousands jobs) of 2014 - 2020 (Thousandsjobs) of jobs) AlbaniaAlbania 5151 5050 5050 5353 5555 57 57 57 57 2,1 2,1

AlbaniaBosnia -Herzegovina 51 50 50 53 55 57 57 2,1 Bosnia- 20 21 22 23 24 24 25 3,2 3,2 20 21 22 23 24 24 25 Bosnia-Herzegovina HerzegovinaCroatia 20 139 21 145 22 147 23 150 24 155 24 157 25 159 3,2 2,2 Croatia 139 145 147 150 155 157 159 2,2 CroatiaGreece 139 340 145 353 147 360 150 369 155 377 157 384 159 393 2,2 2,4 GreeceItaly 3401.082 1.100353 3601.122 3691.146 3771.173 3841.203 393 1.235 2,4 2,2 Greece 340 353 360 369 377 384 393 2,4 ItalyMontenegro 1.08215 1.10016 1.12216 1.14617 1.17319 1.20320 1.235 21 2,2 5,6 Italy 1.082 1.100 1.122 1.146 1.173 1.203 1.235 2,2 Serbia 35 36 36 37 38 39 39 1,9 Montenegro 15 16 16 17 19 20 21 5,6 Montenegro Slovenia 15 31 16 32 16 32 17 33 19 34 20 35 21 35 5,6 2,1 Source: WTTC (World Travel & Tourism Council). SerbiaSerbia 35 35 36 36 36 36 37 37 38 38 3939 39 1,91,9

SloveniaSlovenia 31 31 32 32 32 32 33 33 34 34 3535 35 2,12,1 Source: WTTC (World Travel & Tourism Council). Source: WTTC (World Travel & Tourism Council). 15

16 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability 2.2 - The dynamics of tourism receipts and expenditure

According to World Bank Data, tourism receipts from 2003 to 2012 have increased over the past 2.2 - The dynamics of tourism receipts and expenditure 2.2- The dynamics of tourismyears receipts (from 2003 and expendituruntil 2012) particularly in Serbia (46,3% of annual growth rate), Slovenia (14,8%) and Albania (13,1%) – Figure 7. According to World BankHowever, Data, tourism in absolute receipts values, from Italy2003 leadsto 2012 the have chart increased by 43billion over US$,the past while years Montenegro appears at the (from 2003According until 2012) to World particularly Bank Data, in Serbia tourism (46,3% receipts of annual from growth 2003 to rate), 2012 Slovenia have increased (14,8%) andover Albania the past bottom of the rank by 860million US$. Tourism receipts decreased in all Adriatic and Ionian countries (13,1%)years - (fromFigure 2003 7. until 2012) particularly in Serbia (46,3% of annual growth rate), Slovenia (14,8%) and Albania (13,1%) – Figurestarting 7. from 2009, partly due to the financial crisis, clearly seen in comparison to the high rates However, in absolute values,during Italy 2008 leads that the has chart produced by 43billion a drop US$, in to urismwhile consumptionMontenegro appearsby countries at the of the usual top spenders bottomHowever, of the in rankabsolute by 860million values, Italy US$. leads Tourism the chart receipts by 43billion decreased US$, in whileall Adriatic Montenegro and Ionian appe countriesars at the startingbottom from of the2009, rank partly by 860million duein tourism to the financialUS$. (US, TourismGermany, crisis, receipts France, clearly decreased Japan,seen in Italy, comparison in Spain). all Adriatic to the and high Ionian rates countries during Figure 7 - Receipts from international tourism (current USD $ - thousand) and CAGR6 (Compound 2008starting that has from produced 2009, a partly drop in due tourism to the consumption financial crisis, by countries clearly seen of the in usual comparison top spenders to the in high tourism rates (US,during Germany, 2008 France,that has Japan, producedannual Italy, growtha Spain). drop rate)in tourism consumption by countries of the usual top spenders in tourism (US, Germany, France, Japan, Italy, Spain). Figure 7 - Receipts from international tourism (current USD $ - thousand) and CAGR6 (Compound Figureannual 7 - Receipts growth from rate) international tourism (current USD $ - thousand) and CAGR 12⁵ (Compound annual growth rate) 50.000 45.000 40.000 50.000 35.000 45.000 30.000 40.000 25.000 35.000 30.000 20.000 25.000 15.000 20.000 10.000 15.000 5.000 10.000 0 5.000 0

2003 2008 2012 2003 2008 2012 Countries CAGR Compound annual CAGR Compound growth annual rate (2003 - 2012) CAGR CompoundCountries annual Countries growth rate (2003 - 2012) Albaniagrowth rate (2003 - 2012) 13,1

Bosnia and 5,7 Herzegovina Albania Albania13,1 13,1 Bosnia andGreece Bosnia and 2,3 5,7 5,7 HerzegovinaCroatia Herzegovina 3,5 Greece Greece2,3 2,3 Italy 3,1 Croatia Croatia3,5 3,5 ItalyMontenegro 3,1Italy 3,1 12,4* Montenegro 12,4* Serbia Montenegro 12,4* 46,3* Serbia 46,3* Slovenia Serbia 46,3* 14,8 Source:Slovenia World Bank Development Indicators.14,8 Source:* For World Montenegro Bank Development and Serbia CAGRS Indicators.Source: is 2008Slovenia World-2012. Bank Development Indicators.14,8 * For Montenegro and Serbia CAGRS* For is Montenegro 2008-2012. and Serbia CAGRS is 2008-2012.

5 The6 compound annual growth rate (CAGR) is a growth rate average over several years. It is a geometric average of annual The compound annual growth rate (CAGR) is a growth rate average over several years. It is a geometric average of annual growth rates growth rates 6 The compound annual growth rate (CAGR) is a growth rate average over several years. It is a geometric average of annual growth rates

16 17

17 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Furthermore, Serbia was the best performer in generating international tourism Furthermore, Serbia was the best performer in generating international tourism expenditure (about 26,2%), followed by Albania (11,7%), with Italy lower in the rank (only growing expenditure (about 26,2%), followed by Albania (11,7%), with Italy lower in the rank (only growing by 3,7%) - Figure 8. Furthermore, Serbia was theby best 3,7%) performer - Figure in8. generating international tourism expenditure (about 26,2%), followed by Albania (11,7%), with Italy lower in the rank (only growing by 3,7%) - Figure 8. Yet, in absolute values Italy is at the top of the chart, with 32 billion US$ in 2012, ranking Yet, in absolute values Italy is at theYet, top in of absolutethe chart, values with 32 Italy billion is at US$ the in top 2012, of rankingthe chart, much with better 32 billion US$ in 2012, ranking much better and highest out of all the other countries. The weight of the thirteen italian regions on and highest out of all the othermuch countries. better andThe highestweight ofout the of thirteen all the otheritalian countries. regions on The contribution weight of ofthe thirteen italian regions on contributionItaly in tourism of Italy expenditure in tourism is contributionexpenditure estimated tois of beestimated Italy one-third in tourism to ofbe theone expenditure total-third amount, of the is totalestimated about amount, 11 billion to aboutbe one US$. 11-third of the total amount, about 11 billion US$. billion US$. Figure 8 - Expenditure from international Figure 8 - tourismExpenditure (current from USD international $ - thousand) tourism and CAGR (current USD $ - thousand) and CAGR Figure 8 - Expenditure from international tourism (current USD $ - thousand) and CAGR

40.000 40.000

35.000 35.000 30.000 30.000

25.000 25.000

20.000 20.000

15.000 15.000

10.000 10.000

5.000 5.000

0 0 Albania Bosnia and Greece AlbaniaCroatia BosniaItaly and MontenegroGreece SerbiaCroatia SloveniaItaly Montenegro Serbia Slovenia Herzegovina Herzegovina

2003 2008 2012 2003 CAGR2008 Compound2012 annual growth rate

CAGR Compound annual CAGRCountries Compound annual (2003 - 2012) Countries growth rate Countries growth rate (2003 - 2012) Albania(2003 - 2012) 11,7 Bosnia and Albania 11,7 3,3 Albania Herzegovina11,7 Bosnia and Bosnia and Greece 3,3 -0,2 3,3 Herzegovina Herzegovina Croatia Greece -0,2 3,4 Greece -0,2 Italy Croatia 3,4 3,7 Croatia 3,4 Montenegro Italy 3,7 1,2* Italy 3,7 Montenegro 1,2* Montenegro Serbia1,2* 26,2* Serbia 26,2* Serbia Slovenia26,2* 3,3 Slovenia 3,3 Source: World Bank Development Indicators. Source:Slovenia World Bank Development3,3 Indicators. Source: World Bank Development Indicators. *For Montenegro CARGS is 2008-2012. *For*For Montenegro Montenegro CARGS CARGS is 2008-2012. is 2008-2012.

18 18 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Investing in international tourism is an effective strategy both medium and long term, especially Investing in international tourism is an effective strategy both medium and long term, given that the Adriatic andInvesting Ionian Region in international contains a tourism lot of the is antrade effective market strategy in which both spend medium most andon long term, tourism,especially according given that with the WorldAdriatic Bank and IonianData (Expenditure Region contains in a2012 lot of – theFigure trade 9). market However, in which in the spend future it especially given that the Adriatic and Ionian Region contains a lot of the trade market in which spend willmost be onimportant tourism, toaccording understand, with Worldmatch Bankand interceptData (Expenditure the demand in 20 for12 non-European – Figure 9). However, countries in the (China, most on tourism, according with World Bank Data (Expenditure in 2012 – Figure 9). However, in the Unitedfuture States, it will Brazil, be important Russian toFederation, understand, Canada, match Japan, and interceptAustralia), the where demand a clear for increase non-European in tourism future it will be important to understand, match and intercept the demand for non-European andcountries tourism (China, expenditure United hasStates, been Brazil, observed. Russian Federation, Canada, Japan, Australia), where a clear countries (China, United States, Brazil, Russian Federation, Canada, Japan, Australia), where a clear increase in tourism and tourism expenditure has been observed. FigureFigure 99 -Expenditure-Expenditureincrease on outbound in tourism tourism and in tourism 2012 and expenditure Changes % has 20112011-2012 been-2012 observed. - (current(current US$ billion) billion) Figure 9 -Expenditure on outbound tourism in 2012 and Changes % 2011-2012 - (current US$ billion)

UK: 66 CANADA: 43 UK: 66 RUSSIAN (+2,4%) RUSSIAN (+4,3%) CANADA: 43 GERMANY:(+2,4%) 96 FEDERATION: GERMANY: 96 FEDERATION: (+4,3%) FRANCE: 47 (-3,5%) 48 (+28,8%) (-3,5%) 48 (+28,8%) (-12,5%) FRANCE: 47 USA: 126 ITALY: 32 USA: 126 (-12,5%) (+7,8%) (-8,2%) ITALY: 32 (+7,8%) (-8,2%) CHINA: 109 JAPAN: 41 (+39,1%) (+3,1%)CHINA: 109 JAPAN: 41 (+39,1%) (+3,1%)

AUSTRALIA: 34 (+4,1%) AUSTRALIA: 34 Expenditure 2012 Change(+4,1%) (%) Other Countries (Rank) (million)

Expenditure ChangeExpenditure 11 Brazil 2012 26.202 Change 4,5 Other Countries (Rank) (%) 2012 (million) (%) 12 Belgium Other Countries (Rank) 23.784(million) -1,8 13 Singapore 22.412 4,5 11 Brazil 26.202 4,5 14 Rep. Korea,11 Brazil 22.38626.202 4,5 0,8 12 Belgium 23.784 -1,8 12 Belgium 23.784 -1,8 1315 SingaporeSpain 22.412 4,521.749 -7,8 13 Singapore 22.412 4,5 1416 Rep.Netherlands Korea, 22.386 0,820.346 -2,6 14 Rep. Korea, 22.386 0,8 15 Spain 21.749 -7,8 17 Hong Kong15 SAR, Spain China 20.24621.749 -7,8 5,6 16 Netherlands 20.346 -2,6 18 South Asia16 Netherlands 19.11120.346 -2,6 4,3 17 Hong Kong SAR, China 20.246 5,6 17 Hong Kong SAR, China 20.246 5,6 1819 SouthSaudi Asia Arabia 19.111 4,317.986 -1,2 18 South Asia 19.111 4,3 1920 SaudiSweden Arabia 17.986 -1,217.664 2,8 Source: World Bank data. 19 Saudi Arabia 17.986 -1,2 20 Sweden 17.664 2,8 Source: World Bank data. Source: World Bank data. 20 Sweden 17.664 2,8

19 19

A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Looking to the future and observing the spending trends of the main foreign tourist markets, China emerges Lookingas the highest to the futurecompetitor. and observing China is the on spendingtrack to achieve trends of this, the asm ainit plans foreign to increasetourist m itsarkets, tourism expenditureChina emerges by US$ as the55 billion highest by competitor. 2020 (Figure China 10). is A on leadership track to achievegained inthis, little as it moreplans than to increase a decade its at the expense of United States and Germany, which now rank respectively second and third. tourism expenditure by US$ 55 billion by 2020 (Figure 10). A leadership gained in little more than a FigureFiguredecade 1010 at– – ChangestheChanges expense 20152015 of – – United2020 2020 in in States Outbound Outbound and Germany, TravelTravel & & TourismTourismwhich now Expenditure rank respectively (absolute(absolute secondvalues values US$ andUS$ third.inin bn - Real prices)bn - Real and prices) the actual and thevalue actual of arrivals value byof arrivalsCountry by in Country the Adriatic in the - IonianAdriatic Region – Ionian Region

60,0

n CHINA s m b

in 50,0

$ Touri S

40,0

ues vel a s ) al v

c e

e t d UNITED STATES u pri 30,0

l l o a ou n tb Re abs GERMANY u

(

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t RUSSIAN FEDERATION

di FRANCE

n 10,0 SWITZERLAND an ges pe SOUTH COREAJAPAN h

x BRAZIL AUSTRALIA C E INDIA 0,0 UNITED KINGDOM SPAIN CANADA

The ball size expresses the % weight of tourist arrivals by country of origin in the Adriatic Ionian Region (2012/2013) The ball size expresses the % weight of tourist arrivals by country of origin in the Adriatic Ionian Region (2012/2013) Source: WTTC for Outbound T&T Expenditure data (Δ 2015 – 2020); EUROSTAT for arrivals by country data (years 2012/2013). Source:Arrivals WTTC includes forItaly, Outbound Greece, Croatia, T&T Slovenia, Expenditure Montenegro data and (Δ Serbia.2015 - 2020); EUROSTAT for arrivals by country data (years 2012/2013). Arrivals includes Italy, Greece, Croatia, Slovenia, Montenegro and Serbia.

China’s dominance as a destination country and as a tourism ‘’generator’’, is by far the most relevant data of touristChina’s statistics dominance (and as more)a destination in the lastcountry years. and In as 2013, a tourism China, ‘’generator’’, which gained is by top far position the most in the rankingrelevant of data top ofspenders tourist statist2012, icshas (andreinforced more) inits theleadership last years. by Inincreasing 2013, China, its expenditure which gained by t opUS$ 27 billion. All of this was made possible thanks to the increase of disposable income, fewer restrictions on position in the ranking of top spenders 2012, has reinforced its leadership by increasing its travelling abroad and currency appreciation. China’s tourism expenditure from year 2000 to date has increasedexpenditure ten bytimes US$ and 27 billion.now surpasses All of this that was of madeGermany possible and thanksthe United to the States increase by US$ of disposab 42 billion.le The Chartincome, 2.12illustrates fewer restrictions the spending on travelling power (Δ abroad2015 – 2020) and currencyand the current appreciation. percentage China’s weightΔ tourism (2013) of eachexpenditure foreign market from year per 2000number to dateof arrivals has increased into the Adriaticten times and and Ionian now surpasses Region. that of Germany aAnd future the United strategy States in choosingby US$ 42 the billion. target The markets Chart in2.12illustrates which to promote the spending tourist productspower ( of2015 the Macro- – region,2020) shouldand the becurrent directed percentage and oriented weight towards (2013) ofmarkets each foreign with highmarket spending per number potentials of arrivals and intoa greater touristthe Adriatic impact. and This Ionian means Region. giving priority to North European markets (Germany, France, Switzerland, Spain and United Kingdom), but also undertaking promo-marketing measures for seaside tourism, culture andA future nature strategy products, in choosing focusing the on target China, markets United in States, which Russia,to promote Japan tourist and Australia.products ofBrazil the and India are also markets with a high spending potential, even though they still have small market shares. Macro-region, should be directed and oriented towards markets with high spending potentials and a greater tourist impact. This means giving priority to North European markets (Germany, France, By measuring expenditure, destination stakeholders are able to analyze: Switzerland, Spain and United Kingdom), but also undertaking promo-marketing measures for seaside• tourism,the most culture profitable and nature origin products,markets that focusing should on be China, promoted; United States, Russia, Japan and Australia. Brazil and India are also markets with a high spending potential, even though they still have• smallthe market type of shares. product and service that should be developed, and how;

19 By measuring expenditure, destination stakeholders are able to analyze:

20 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

�

� the most profitable origin markets that should be promoted;

� the type of product and service that should be developed, and how;

� how to attract ‘high yield’ visitors;

• assesshow relative to attract importance ‘high yield’ of bothvisitors; ‘mature’ and ‘emerging’ source markets.

• assess relative importance of both ‘mature’ and ‘emerging’ source markets. On the other hand, measuring expenditure does not give help to identify the “ideal tourist” for �the On following the other reasons: hand, measuring expenditure does not give help to identify the “ideal tourist” for the following reasons: Expenditure measurements ignore the indirect and induced economic and social impact of • tourismExpenditure expenditure, measurements such as contributionignore the indirect to Gross and Domesticinduced economic (or regional) and social Product, impact Gross of � Valuetourism Added, expenditure, and employment; such as contribution to Gross Domestic (or regional) Product, Gross Value Added, and employment; � Expenditure does not provideper se information on the geographic spread of revenue; • Expenditure does not provide information on the geographic spread of revenue; Expenditure injections tell us nothing about the social or environmental costs and • Expenditure injections per se tell us nothing about the social or environmental costs and benefitsbenefits associated associated with differentwith different visitor visitor market market segments; segments;

ThanksThanks to global to global connectivity connectivity and consumer and consumer access accessto information, to information, power has power shifted has from shifted producer from producerto consumer, to consu and mer,the marketing and the marketing function has function turned upsidehas turned down. upside All tourism down. stakeholders All tourism canstakeholders combine canto combineattract the to attractkind of theguest kind who of guestwill most who value will mostwhat thevalue destination what the destinationhas to offer. has to offer. The challenge is to attract the right customer depending on what the region has to offer. This involves creating the type of destination that ‘ideal tourists’ will wish to visit in order to experience meaningful encountersThe challenge with hosts is to and attract destination the right features. customer For dependingthis reason, onit is what important the region to develop has to a offer.new way This involvesof thinking creating (Table the 5), typewhich of favorsdestination sustainability that ‘ideal of development tourists’ will choices wish to as visit well in as order an approach to experience to the promo-marketing of tourism products and features. meaningful encounters with hosts and destination features. For this reason, it is important to develop a new way of thinking (Table 5), which favors sustainability of development choices as well as an Table 5 - A change of the mindset: from an industrial to a sustainable model approachTable 5 - A to change the promo of the-marketing mindset: from of tourism an industrial products to a and sustainable features. model

Sustainability mindset Industrial MindsetIndustrial Mindset Sustainability mindset (target 2020) (target 2020)

Anthropocentric Ethic Environmental Ethic

ProfitAnthropocentric Ethic Environmental EthicBenefits Product Profit Benefits People Destination Product People Place Price Destination Place Value Price Value Promotion Pull Promotion Pull Exploitation Protection Source: “Who is the Ideal Tourist? - - and WhoExploitation Cares?”, Larry Dwyer- School of Marketing,Protection Australian School of Business University of New SouthSource: Wales “Who (Australia). is the Ideal Tourist? - and Who Cares?”, Larry Dwyer - School of Marketing, Australian School of Business University of New South Wales (Australia).

21 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

2.3 - Demand side: some information about touristic flows

ThreeThree Countries ofof thethe AdriaticAdriatic andand IonianIonian Region Region entered entered into into the the more more visited visited Top Top Ten Ten index index of European Destinations in 2014 (Table 6). Italy sits 5th in the 2013 ranking of World’s BestTravel of EuropeanDestinations Destinations and ranks 6thin 2014among (Table the best 6). incomes Italy sits generated 5th in bythe tourism 2013 ranking(43,9 billion of World’s dollars in BestTravel 2013). DestinationsOther information and ranks about 6th the among country the ranking best incomesis available generated on the table by 2 and tourism 3 in the (43,9 appendix billion of chapter dollars in two. 2013). Other information about the country ranking is available on the table 2 and 3 in the appendix of chapter two. TableTable 6 - International6 - International Tourist Tourist ArrivalsArrivals inin European European Countries Countries in 2014 in 2014 (Jan (Jan- Oct) - Oct)

ARRIVALSARRIVALS - - Change (%)Change (%) Rank Rank MillionMillion 2013-20142013-2014

1 Spain 47 4,7

2 Italy12 SpainItaly 474343 0,14,7 0,1 3 France 42 0,3

4 Germany3 France 4228 0,3 4,3 5 United4 KingdomGermany 2820 4,3 2,8 6 Austria5 United Kingdom 2019 2,8 1,9 7 Greece 13,4* - 7 Greece6 Austria 1913,4* 1,9 - 8 Netherlands 12 10,4 9 Croatia 11 5,9 9 Croatia8 Netherlands 1211 10,4 5,9 10 Portugal 8 10,8 Source: EUROSTAT. * For Greece touristic10 arrivals:Portugal data 2013. 8 10,8 Source: EUROSTAT. * For Greece touristic arrivals: data 2013.

By observing the international arrivals by country in each Adriatic and Ionian Region (Table 7), it is possible to highlight an important increase in the number of tourists travelling from the northern European regions (Germany, France, Netherlands, United Kingdom). These tourists are looking for a climacticBy observing escape, authenticity, the international and unspoiled arrivals nature. by country Germany in each is the Adriatic main marketand Ionian for Croatia, Region Italy, (Table 7), Greece, it is possible Montenegro, to highlight Croatia anwhereas important and Bosnia increase & Herzegovina in the number welcome of tourists tourists travelling from Russia from and the Eastern Europe. Within Greece and Bosnia-Herzegovina, Turkish tourism is a strong presence and northerncontributor. European regions (Germany, France, Netherlands, United Kingdom). These tourists are lookingWithin for athe climactic French market, escape, Croatia authenticity, is still an and undiscovered unspoiled gem. nature. Italy Germanygains most is arrivals the main from market a single for Croatia,market Italy, with Greece, Germany Montenegro, representing Croatia 30% of the whereas international and Bosnia influx. & Herzegovina welcome tourists from In Russia Albania, and 70% Eastern of international Europe. Within arrivals Greece comes fromand Bosnia the neighboring-Herzegovina, countries, Turkish especially tourism from is a strongKosovo, presence which and represents contributor. 49% of the influx. Slovenia,Within a the destination French market,renowned Croatia for wellness is still tourism an undiscovered and thermal gem. Spa, Italyis a privileged gains most destination arrivals for fromthe a singleneighbouring market regions with (Italy,Germany Austria, representing Germany and30% Russia) of the alsointernation a result alof moreinflux. affordable prices.

In Albania, 70% of international arrivals comes from the neighboring countries, especially from 21 Kosovo, which represents 49% of the influx.

Slovenia, a destination renowned for wellness tourism and thermal Spa, is a privileged destination for the neighbouring regions (Italy, Austria, Germany and Russia) also a result of more affordable prices. At present, with the exception of the Russian Federation and Turkey no other extra- EU market (also in the enlarged EU) ranks in the top ten per number of arrivals.

22 At present,A European with strategy the for exception the tourism sector of in the the Adriatic Russian and Ionian Federation Region (EUSAIR): and competitiveness, Turkey no internationalization other extra- and EU sustainability market (also in the enlarged EU) ranks in the top ten per number of arrivals.

TableTable 7 - Top 7 - Top10 of 10 foreign of foreign arrivals arrivals in thein the Adriatic Adriatic and and Ionian Ionian Region Region (2013)

Share of Share of Share of Share of

internationalShare of internationShare of internationalShare of internationalShare of MONTENEGRO international CROATIA ITALY GREECE international MONTENEGRO arrivals by CROATIA alinternational arrivals ITALY arrivals international by GREECE arrivals by arrivals by Country arrivals by Country arrivals by Country arrivals by Country Country by Country Country Country

Russia 24,6 Germany 24,1 Germany 29,6 Germany 12,6

Russia 24,6 Germany 24,1 Germany 29,6 GermanyUnited 12,6 Serbia 10,4 Slovenia 11,2 France 11,1 10,3 Kingdom United Bosnia & United Serbia 10,49,4 AustriaSlovenia 11,29,6 France 11,18,5 KingdomRussia 10,37,5 Herzegovina Kingdom Bosnia and United HerzegovinaUkraine 9,48,8 CzechAustria Republic 9,68,6 KingdomSwitzerland 6,68,5 RussiaFrance 6,47,5 Poland 8,4 Italy 8,4 Austria 6,1 Italy 5,3 Ukraine 8,8 Czech Republic 8,6 Switzerland 6,6 France 6,4 PolandFrance 8,44,1 PolandItaly 8,46,7 NetherlandsAustria 5,56,1 TurkeyItaly 4,65,3 FranceKosovo 4,13,9 NetherlandsPoland 6,75,5 NetherlandsRussia 5,55,5 TurkeySerbia 4,34,6 KosovoItaly 3,93,8 NetherlandsSlovakia 5,54,5 RussiaSpain 4,65,5 BulgariaSerbia 3,84,3

Italy 3,8 Slovakia 4,5 Spain 4,6 Bulgaria 3,8 Germany 3,5 Russia 3,3 Belgium 3,3 Netherlands 3,2 Netherland Germany 3,5 Russia 3,3 Belgium 3,3 s 3,2 Belarus 3,2 United Kingdom 2,1 Poland 2,8 Albania 2,8 Share of United Share of Share of Share of Belarus internationalShare3,2 of BOSNIAKingdom & internationShare2,1 of Poland internationalShare2,8 of SLOVENIAAlbania internationalShare2,8 of SERBIA BOSNIA & ALBANIA SERBIA international HERZEGOVINA international international international arrivals by HERZEGOVINA al arrivals ALBANIA arrivalsarrivals by Country by SLOVENIA arrivals by arrivalsCountry by Country arrivalsby Country by Country Country arrivalsCountry by Country

Bosnia & Herzegovina 7,7 Croatia 16,3 Kosovo 48.8 Italy 15,7 Bosnia & RussianHerzegovina Federation 7,7 Croatia 16,3 Kosovo 48.8 Italy 15,7 Macedonia Russian 7,1 Turkey 12,7 11.4 Austria 11,8 FederationMontenegro 7,16,3 PolandTurkey 12,77,8 MacedoniaItaly 11.45.2 AustriaGermany 11,811,2

Montenegro 6,3 Poland 7,8 Italy 5.2 GermanyRussian 11,2 FederationRussian Croatia 5,8 Slovenia 7,3 Montenegro 5.1 Federation 5,8 CroatiaGermany 5,85,1 SloveniaItaly 7,36,1 MontenegroGreece 4,75.1 Croatia 4,95,8

Germany 5,1 Italy 6,1 Greece 4,7 CroatiaUnited 4,9 Kingdom Slovenia 4,9 Serbia 4,9 ** - United 4 SloveniaItaly 4,94,7 GermanySerbia 4,94,1 **** - KingdomSerbia 3,74 Italy 4,7 Germany 4,1 ** - Serbia 3,7 Bulgaria 4,1 Austria 3,1 ** - Belgium 3,2 Bulgaria 4,1 Austria 3,1 ** - BelgiumCzech 3,2 Republic Romania 3,8 France 2,4 ** - Czech 3 Romania 3,8 France 2,4 ** - Republic 3 Greece 3,5 Netherlands 1,3 ** - Hungary 2,5 Source:Greece for Italy - ISTAT,3,5 for Bosnia & HerzegovinaNetherlands – FZS, for Montenegro1,3 - MONSTAT,** for Croatia - National- TourismHungary Board, for Greece 2,5 STATISTIC.GR. FOR Albania OECD data 2012 (** Data not available), for Serbia and Slovenia: Statistical National Tourism Source:http://webrzs.stat.gov.rs/WebSite/ for Italy - ISTAT, for Bosnia and &http://www.stat.si/. Herzegovina – FZS, for Montenegro - MONSTAT, for Croatia - National Tourism Board, for Greece STATISTIC.GR. FOR Albania OECD data 2012 (** Data not available), for Serbia and Slovenia: Statistical National Tourism http://webrzs.stat.gov.rs/WebSite/ and http://www.stat.si/.

23 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

2.4 - The main trends of Arrivals in the Region

2.4 - The mainThe Adriatic trends of and Arrivals Ionian inArea the accommodates Region about 13% of the arrivals and nights spent in the Thewhole Adriatic EU and 28 area.Ionian Beach Area accommodates resorts, by strong about tradition, 13% of the where arrivals a leisure and nights feature spent is promoted,in the whole are EU 28 area. Beach resorts, by strong tradition, where a leisure feature is promoted, are characterized by a long-termcharacterized stay, longer by a long than-term European stay, longer average than (3,8 European nights vs. average 3, shown (3,8 in nights the Table vs. 3,8). shown in the Table 8). TableTable 8 - Main 8 - Main touristic touristic indicators indicators in the in EUSAIR the EUSAIR Area Area (2013) (2013)

Arrivals International (% Nights Spent Arrivals Nights spent Arrivals (% Length of International RateArrivals Average (% Nights(% Average Spent International Country 2013 2013 Average Arrivals Nights spent stayLength (LOS) of International(Arrivals) Averageannual an- (%annual Average growth Arrivals (% Country (Million) (Million) annual growth 2013 2013 stay (LOS) Rate (Arrivals) nual growthgrowth annualrate) growth Average annual (Million) (Million) rate) rate)rate) rate) growth rate)

Italy 104 377 3,6 48,4 2,3 0,9 3,7 AdriaticItaly and 104 377 3,6 48,4 2,3 0,9 3,7 Ionian italian 66 238 2 46,2 2,4 -0,4 4,1 Adriatic and Ionianregions italian 66 238 2 46,2 2,4 -0,4 4,1 regions Croatia 12 64 5,3 88,3 5,9 7,3 6,8 BosniaCroatia & 12 64 5,3 88,3 5,9 7,3 6,8 Herzegovina 0,5 1 2,1 76,5 9,2 8,6 11,7 Bosnia & 0,5 1 2,1 76,5 9,2 8,6 11,7 HerzegovinaAlbania 3* 6,5* 2,1* 80,9* 14,5* 6,6* 13,2 AlbaniaGreece 3*22 6,5*92 2,1*4,2 63,280,9* 6,4 14,5* 5,96,6* 7,813,2 MontenegroGreece 221,5 929 4,26,3 88,863,2 6,7 6,4 9,25,9 5,47,8 MontenegroSerbia 1,52 96 6,33,1 41,588,8 8,1 6,7 7,8*9,2 9,3*5,4

SloveniaSerbia 2 3 69 3,12,8 66,641,5 4,5 8,1 5,47,8* 5,59,3* SloveniaEU 28 3876 2.6419 2,83 36,966,6 4,2 4,5 2,35,4 4,15,5

MacroregionEU 28 876110 2.641324 33,8 65,536,9 3,5 4,2 2,12,3 4,54,1

Macroregion 110 324 3,8 65,5 3,5 2,1 4,5 Source: Source:Eurostat. Eurostat. *Estimated *Estimated Value. Value.

Furthermore, the internationalization quote (strangers compared to the total arrivals) is about 30 points over Furthermore, the EU average the (65,5%internationalization vs. 36,9%). This quote value (strangers is influenced compared by to thea totallow levelarrivals) of is domesticabout tourism30 points in regions over suchthe EU as averageCroatia, ( 65,5%Bosnia vs.& Herzegovina,36,9%). This value Serbia is andinfluenced Montenegro. by a low In levelthese of regions domestic inboundtourism tourism in regions represents such as only Croatia, 20% Bosnia of the & overall Herzegovina, tourism Serbia industry and (inMontenegro. Italy, for In instance, these regions the percentage ratio between national and international tourism is almost 50%). With 11,8 % of EU flow, inbound tourism represents only 20% of the overall tourism industry (in Italy, for instance, the Italy amounts to a total amount of 103 million arrivals and 376 million overnights in 2013. Despite Italy beingpercentage the country ratio with between the most national touristic and weight international inside thetourism Adriatic is almost and Ionian 50%). Macro-region,With 11,8 % of it EU only flow, grewItaly at a amountsdeveloping to aaverage total amount rate of of2,3%. 103 million arrivals and 376 million overnights in 2013. Despite Italy being the country with the most touristic weight inside the Adriatic and Ionian Macro-region, it From 2003 to 2013, in the Adriatic and Ionian Region the annual growth rate in arrivals was about 3,5%only compared grew at to a 4% developing in EU. International average rate arrivals of 2,3%. average growth was 4,5% in the Adriatic and Ionian Area and 4,1%From in EU. 2003 In toa decade,2013, in the the best Adriatic performance and Ionian in incomingRegion the growth annual average growth wasrate recordedin arrivals by was Bosniaabout & Herzegovina 3,5% compared (13,7%) to 4% and in EU. Albania International (11,2%). arrivals These averageare tourism growth developing was 4,5% countries in the Adriatic where and the incoming flow represents only 0,4% and 0,1% of the overall incoming flow for the EU (Chart 2.18). Ionian Area and 4,1% in EU. In a decade, the best performance in incoming growth average was recorded by Bosnia & Herzegovina (13,7%) and Albania (11,2%). These are tourism developing countries where the incoming flow represents only 0,4% and 0,1% of the overall incoming flow for the 23 EU (Chart 2.18).

24 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure Figure 11 11 - %- % of of arrivals arrivals by by Adriatic Adriatic and and Ionian Ionian partners partners on onthe the total total Europe Europe 28 28

14,0 12,7 11,8

12,0

10,0

7,5 8,0

6,0

4,0 2,5

2,0 1,4 0,4 0,4 0,2 0,2 0,1 0,0 Adriatic and Italy Italian Greece Croatia Albania Slovenia Montenegro Serbia Bosnia & Ionian Adriatic and Herzegovina Region Ionian Source: Source: Eurostat Eurostat 2013. 2013. For Albania AlbaniaRegions and and Bosnia Bosnia & Herzegovina & Herzegovina (http://www.instat.gov (http://www.instat.govandand http://www.fzs.ba/). http://www.fzs.ba/).

Italian Adriatic Regions take 63% of the total incomings in Italy, 56% of the nights spent and about 60% of visitorItalian flows Adriatic in the Regions Adriatic take and 63% Ionian of the Region. total incomings Yet, these innumbers Italy, 56% don’t of take the into nights account spent the wide world of tourism that does not appear - tourism generated bysecond homes and other unofficial and about 60% of visitor flows in the Adriatic and Ionian Region. Yet, these numbers don’t take forms of hospitality. into account the wide world of tourism that does not appear - tourism generated bysecond homes Inand Italy other it hasunofficial been estimatedforms of hospitality. that for the total number of arrivals and nights spent (including all forms of accommodation), the multiplier is equal to 2.8, and in the case of regions with a strong seasonal features multiplier exceeds 5.213⁶. In Italy it has been estimated that for the total number of arrivals and nights spent (including Observing the Chart 2.20, from 2004 to 2013, all countries of Adriatic and Ionian Region had a all forms of accommodation), the multiplier7 is equal to 2.8, and in the case of regions with a strong positiveseasonal trend features of incomings multiplier flow exceeds (arrivals). 5.2 . Only Albania’s flow in 2013 fell sharply downward by 21%, compared to previous years (the descent has been stable throughout 2013). This is after recording a big growth throughout the decade - 270% from 2003 to 2012.During the review period Albania was one of the fastest-growingObserving the travel Chart destinations 2.20, from 2004in Europe to 2013, (Figure all countries 12). of Adriatic and Ionian Region had a positiveThe year trend 2012 ofrepresents incomings a recordflow (arrivals). annual growth Only Albania’sfor Croatia flow of 35% in 2013 (11,5 fellmillion sharply arrivals). downward For Serbia by and21%, Bosnia compared & Herzegovina, to previous the yearscountry’s (the negative descent image has been as a war stable zone, throughout along with 2013). a publicized This is struggle after torecording hold onto a thebig autonomous growth throughout province the of decade Kosovo, - 270%has proved from a2003 difficult to 2012.During legacy to theshake review off. periAs aod result, Serbia has until now remained virtually off the radar for travel-hungry tourists of the 21st century. This Albania was one of the fastest-growing travel destinations in Europe (Figure 12). is in sharp contrast to its more fortunate neighbors, Croatia, Slovenia and – the most recent to re-emerge onto the tourism scene – Montenegro, which also declared its independence from Serbia in 2006. The year 2012 represents a record annual growth for Croatia of 35% (11,5 million arrivals). For Serbia and Bosnia & Herzegovina, the country’s negative image as a war zone, along with a publicized struggle to hold onto the autonomous province of Kosovo, has proved a difficult legacy to

shake off.st As a result, Serbia has until now remained virtually off the radar for travel-hungry tourists of the 21 century. This is in sharp contrast to its more fortunate neighbors, Croatia, Slovenia and – the most recent to re-emerge onto the tourism scene – Montenegro, which also declared its independence from Serbia in 2006. 6 XVII Rapporto sul Turismo Italiano, Mercury

7 XVII Rapporto sul Turismo Italiano, Mercury

25 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure 12 - Arrivals in the Adriatic and Ionian Area (Index numbers 2003=100)

Figure 12 - Arrivals in the Adriatic and Ionian Area (Index numbers 2003=100) Figure 12 - Arrivals in the Adriatic and Ionian Area (Index numbers 2003=100)

Greece

370 GreeceCroatia 370 Slovenia 330 Croatia SloveniaMontenegro 330 290 MontenegroSerbia 290 250 SerbiaAlbania

250 AlbaniaBosnia & Herzegovina 210 Bosnia & Herzegovina 210 Regioni italiane EUSAIR 170 Regioni italiane EUSAIR 170 130 130

90 90 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source:2003 Eurostat;2004 for Albania2005 the value2006 is estimated2007 on 2008Nights spent2009 of foreigners2010 and2011 Albanians2012 in hotel2013 accom modation and balanced Source: Eurostat; for Albania the value is estimated on Nights spent of foreigners and Albanians in hotel accommodation and balanced Source:on World Eurostat; Bank forData: Albania http://www.instat.gov.al/en/themes/tourism.aspx the value is estimated on Nights spent. For Serbia of foreigners and Montenegro: and Albanians from 3 June in hotel 2006, accommodation Montenegro on World Bank Data: http://www.instat.gov.al/en/themes/tourism.aspx. For Serbia and Montenegro: from 3 June 2006, Montenegro and and balanced Serbia became on World independent Bank States,Data: proclaimed http://www.instat.gov.al/en/themes/tourism.aspx. following a referendum on independence on 21 May For 2006. Serbia and Montenegro: from 3 and Serbia became independent States, proclaimed following a referendum on independence on 21 May 2006. June 2006, Montenegro and Serbia became independent States, proclaimed following a referendum on independence on 21

May 2006.

StartingStarting from from 2009, 2009, the the international international growth growth of offlow flow stopped stopped contraction contraction of ofdomestic domestic demands demands Starting from 2009, the international growth of flow stopped contraction of domestic demands in in inseveral several Adriatic Adriatic and and Ionian Ionian countries countries (Figure (Figure 13). 13). several Adriatic and Ionian countries (Figure 13).

FigureFigure 13 13 - Total, - Total, Domestic Domestic and and Foreign Foreign Arrivals Arrivals in inthe the Adriatic Adriatic and and Ionian Ionian Region Region (Index (Index numbersFigure numbers 13 2003 - 2003Total, = 100) = Domestic 100) and Foreign Arrivals in the Adriatic and Ionian Region (Index numbers 2003 = 100)

160 160

150 150

140 140

130 FOREIGN ARRIVALS 130 FOREIGN ARRIVALS TOTAL ARRIVALS 120 DOMESTICTOTAL ARRIVALS ARRIVALS 120 110 DOMESTIC ARRIVALS

110 100

100 90 Source: Eurostat.2003 For 2004 the years 2005 from 2003 2006 – 2008 2007 estimated 2008 value 2009 for Italian 2010 Adriatic 2011 Regions 2012 & Montenegro 2013 90 Source: Eurostat.2003 For2004 the years2005 from 20032006 – 20082007 estimated2008 value2009 for Italian2010 Adriatic2011 Regions2012 & Montenegro2013.

Source: Eurostat. For the years from 2003 – 2008 estimated value for Italian Adriatic Regions. & Montenegro.

26 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure 14 - Monthly Arrivals in the Adriatic and Ionian Area, 2013 Figure 14 - Monthly Arrivals in the Adriatic and Ionian Area, 2013 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

35,0 Figure 14 - Monthly Arrivals in the Adriatic and Ionian Area, 2013

30,0 European Union (28)

Greece 25,0 35,0

30,0 CroatiaEuropean Union (28) 20,0

25,0 MontenegroGreece

15,0 Bosnia Croatia& Herzegovina 20,0 Montenegro 10,0 Italian EUSAIR Regions 15,0 Bosnia & Herzegovina Slovenia 5,0 10,0 Italian EUSAIR Regions Serbia Slovenia

0,0 5,0 Serbia M01 M02 M03 M04 M05 M06 M07 M08 M09 M10 M11 M12 0,0 Source: Eurostat. For AlbaniaM01 data notM02 available.M03 M04 M05 M06 M07 M08 M09 M10 M11 M12 Source: Eurostat. For AlbaniaSource: Eurostat. data Fornot Albania available. data not available.

In the Adriatic and Ionian Area, the tourism sector is characterized by strong seasonal demand fluctuations. In 2013, about 65% of arrivals were concentrated in June to September and 32% in August. Arrivals areIn particularly the AdriaticIn high the and in Adriatic Ionian the summer and Area, Ionian the months Area, tourism thefor sectortourismCroatia is sectorand characterized Montenegro. is characterized by Serbia strong by strong and seasonal Bosnia seasonal & Herzegovinademand fluctuations. isdemand the most In fluctuations. 2013, seasonally about In 2013, adjusted65% about of arrivals (Figure 65% of were arrivals 14). concentrated The were tourist concentrated promotional in June in to June September toproduct September “Sea”and and is not32% enough in August. to 32% achieve Arrivals in August. good are Arrivals particularlylevels of are seasonal particularly high in theadjustment. high summer in the summermonths Only monthsthrough for Croatia for the Croatia and development Montenegro. and Montenegro. and Serbia and Bosnia & Herzegovina is the most seasonally adjusted (Figure 14). The tourist reorganizationSerbia and of Bosnia culture, & nature Herzegovina and food is and the wine most products seasonally will adjusted be possible (Figure to achieve 14). The in the tourist future good levels of seasonalpromotional adjustment. product "Sea" is not enough to achieve good levels of seasonal adjustment. Only promotional productthrough the "Sea" development is not enough and reorganization to achieve of good culture, levels nature of seasonaland food and adjustment. wine products Only will be through the developmentpossible to achieve and reorganization in the future good of levels culture, of seasonal nature adjustment. and food and wine products will be Figure 15 - MonthlyFigure Net 15Occupancy - Monthly Net Rates Occupancy of bed places, Rates of 2013 bed places, 2013 possible to achieve in the future good levels of seasonal adjustment. Figure 15 - Monthly Net Occupancy Rates of bed places, 2013

120,0

120,0 100,0

80,0 Greece 100,0 Croatia

60,0 Slovenia 80,0 Greece Montenegro

40,0 CroatiaSerbia Italian EUSAIR Regions 60,0 Slovenia 20,0 Montenegro

Serbia 40,0 0,0 M01 M02 M03 M04 M05 M06 M07 M08 M09 M10 M11 M12Italian EUSAIR Regions Source: Eurostat, for AlbaniaSource: Eurostat, and Bosnia for Albania & andHerzegovina Bosnia & Herzegovina data not data available. not available. 20,0 Observing the monthly Net Occupancy Rate, the possible months to achieve 50% rate of net occupation of beds are June, July and August (Figure 15). On the whole, a higher rate of annual occupationis reached by Croatia 0,0 (44%), followed byObserving Greece (35%), the monthly and in Net ex-aequo Occupancy by Rate, the Adriatic the possible Italian months regions to achieve and by 50 Montenegro% rate of net (34%). In theM01 winterM02occupation months,M03 the ofM04 bedsrateM05 of are net June,M06 occupation JulyM07 andM08 of August bedsM09 (Figurein theM10 hospitality 15).M11 On theM12 sector whole, reaches a higher just rate 20%. of annual Source: Eurostat, foroccupationis Albania and Bosnia reached & Herzegovina by Croatia data not(44%), available. followed by Greece (35%), and in ex-aequo by the Adriatic 26

27 Observing the monthly Net Occupancy Rate, the possible months to achieve 50% rate of net occupation of beds are June, July and August (Figure 15). On the whole, a higher rate of annual occupationis reached by Croatia (44%), followed by Greece (35%), and in ex-aequo by the Adriatic

27 In conclusion, the regions on the eastern shores of the Adriatic are going through a strong development phase, whereas Italy has been facing stagnation for more than three years now. It is a growth mainly brought about by seaside tourism, characterized by a high degree of seasonality. Consequently, little importance has been given to other types of tourism which could contribute to the increase of tourist inflows during spring and autumn months. Listed below are some universal trends which have characterized the demand over the last years. They must be taken into account when adopting a shared strategy for the sustainable development of the Macro-region.

2.5 – The World tourism trends: demand side

The last two years were characterized by some important trends which influenced worldwide consumer behavior:

● New touristic demand from the rising middle class of the RDEs (Rapidly Developing Economies), where there is an increasing and steady economy: China, India, East and Central Europe, Latin America;

● Growth in global economy and an increase in airline connections; creating routes and short- and long-haul flight frequencies, also low cost flights;

● The European population is getting old, it requires increasingly targeted, innovated and original touristic packages and offers;

● Polarization of tourist expenditure by trading-down and trading-up effects: the claim for flights and low cost travels will still grow and at the same time the high level accommodations’ demand will do;

● Fitness, health and the research on psychological well-being are constantly increasing;

● On-line and social network presence is essential for guiding the choice. More weekend breaks and a necessity for faster connections;

● Users’ feedback has become crucial to the success of a tourism product. The range insight towards smart phones (mobile first) amplified the possibility of accessing contents (being permanently connected);

● The Millennials, or Generation Y, is growing up. People born between the 80’s and2000’s in the western world, are part of a generation recording an increase in birth rates similar to the Baby Boomers in the 60’s. The Millennials are outpacing the Baby Boomer’s 76 million population and by 2030 the gap between the two groups will be even greater 78 million vs. 58 million. Constantly online and tech-savvy, the Millennials plan their trips by making the most of the new technologies. Booking on-the-go, from mobiles or tablets, they have a shorter booking window of 75 days, compared to 93 days, the rule for older

generations14⁷;

7 “Il turismo internazionale: comportamenti di consumo e scenari di sviluppo”. CISET (Centro internazionale di studi sull’e- conomia turistica, Università Ca’ Foscari di Venezia), Mara Manente. “Piano strategico nazionale del turismo - Turismo Italia 2020”, Presidenza del Consiglio dei Ministri: http://www.ontit 27

● More sharing economy also in the tourism sector: it increases the transactions C2C (Consumer to Consumer) and the new forms of hospitality founded upon the sharing of means and resources helped by the functionalities of the web 2.0 that it allow the tourists to use internet for the sale, the exchange, the sharing and the autonomous purchase of tourist services bypassing other forms of brokerage.

Understanding this trends can helps public operators to adopt strategic policies. Despite a pre- crisis decline, the growth of international tourism, along with a solid forecast for 2020, allow us to predict excellent opportunities of development for the future. In the following pages, a mapping of tourism supply (UNESCO heritage sites, natural resources in the Adriatic and Ionian Region) is presented. It provides a benchmarking analysis in order to identify the main oddities and issues in the area which actually present strong non homogeneous features. This discrepancy needs to be solved by mid to long term strategies and instruments; by starting a system of regional tourism that enables the guidance and government of all territorial policies, according to the system’s views and efficiency of services. For the future development of tourism in the Adriatic and Ionian Area it is necessary to identify the strategy of “destination marketing” (tourism promotion) inside a wide, clear and accurate strategy of “territorial marketing” in favor of investment attracting. The following chapter contains a recognition of the natural and cultural tourist offer, agreement as intrinsic endowment of every Area: from the sites Unesco to the natural resources. An operation of benchmarking among the interested territories has underlined, once more, unbalances and points of strength.

28 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

3 - The competitive position of the tourism sector in the Adriatic and Ionian Region

3.1 - Various tourism segments with important contributions to sector turnover

3 - The competitive position of the tourism sector in the Adriatic and Ionian Region

3.1 - Various tourism segments with important contributions to sector turnover Every tourist is different. Every tourist feels attracted to different tourist destinations likes to engageEvery in different tourist is activities different. while Every on vacation, tourist feels makes attracteduse of different to different entertainment tourist facilities destinations likesto and complainsengage in about different different activities aspects whileof their on vacation. vacation, While makesall tourists use are ofdifferent, different some are entertainment more facilities and complains about different aspects of their vacation. While all tourists are different, some are more similarsimilar to each to eachother other than thanothers: others: many many people people enjoy enjoy culture culture tourism, tourism, many many tourists tourists like like to toski ski during during their wintertheir winter holiday holiday and manyand many tourists tourists require require entertainment entertainment facilities facilities for for children children at atthe the destination. destination. AcknowledgingAcknowledging that every that every tourist tourist is different is different and thatand thethat tourismthe tourism industry industry cannot cannot possibly possibly cater cater for for each individual separately forms the basis of market segmentation. each individual separately forms the basis of market segmentation. Stephen Smith (1956) introduces the concept of market segmentation as a strategy. He states that “MarketStephen segmentation Smith (1956) […]… introducesconsists of viewing the concept a heterogeneous of market segmentation market (one characterized as a strategy. by He divergent states that “Marketdemand) segmentation as a number [ of ]smaller consists homogeneous of viewing a markets”. heterogeneous When marketsegmenting (one a characterized market, groups by of individuals are developed which are similar with respect to some personal characteristic. The particular divergentpersonal demand) characteristic as a number with respect of smaller to which homogeneous similarity is markets”. explored Whenis the segmentation segmenting a criterion market, or groupssegmentation of individuals base. are developed which are similar with respect to some personal characteristic. The particulFor thear personalStanford characteristicResearch International with respect Institute, to which leisure similarity tourism is can explored be shared is the in varioussegmentation tourism criterionsegments or segmentation with important base. contribution to sector turnover8:

For the Stanford Research International Institute, leisure tourism can be shared in various Figure 16 - Segmentation of the global tourism industry. Share in sector9 turnover, (Leisure - 2013) tourismFigure 16 segments - Segmentation with important of the global contrib tourismution industry. to sector Share turnover in sector: turnover, (Leisure - 2013)

4% 2% 1% 5%

Cultural/ Leisure / Other

33% Culinary tourism 11% Wellness tourism

Eco/ Sustainable tourism Sports tourism

Adventure tourism

14% Agri-tourism Medical tourism Spiritual tourism

15%

Source:Source: Stanford Stanford Research Research Institute InstituteInternational, International, 2013. www.oecd.org 2013. www.oecd.org..

8 Market Segmentation in Tourism “University of Wollongong, Australia”.

29 9 Market Segmentation in Tourism “University of Wollongong, Australia”.

30 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Culture/leisure and food & wine tourism make up about 50% of the entire tourism industry, reaching 70% if wellness tourismCulture/leisure is included. andAll touristfood & wineproducts tourism from make the up Adriatic about 50% and ofIonian the entire Regions tourism are industry,able to meet the demand of the entire world tourist market by focusing on and investing in each country’s reaching 70% if wellness tourism is included. All tourist products from the Adriatic and Ionian specificities. There are, however, top products which are more popular and able to meet a large part of the tourist offer.Regions These are should able to meetbe prioritized, the demand while of the the entireothers worldshould touristbe considered market bytransversal focusing onand and secondary, albeitinvesting with a inclear each growth country’s potential. specificities. There are, however, top products which are more popular and able to meet a large part of the tourist offer. These should be prioritized, while the others Figure 17 – Dominantshould andbe considered secondary transversalproducts in andthe Adriatic secondary, and albeit Ionian with Region a clear growth potential. Figure 17 – Dominant and secondary products in the Adriatic and Ionian Region Dominant products Dominant products

Sea

Business tourism & tourism M.I.C.E.

Nautical tourism Natural & Adventure /cruising) tourism

Products with visible potential growth Products with visible potential growth

Food & Wine Tourism Rural and Spiritual tourism tourism

Golf tourism Eco- tourism/ agro- tourism

Source: Cerpem

Source: Cerpem 30

31 The expression ‘tourism product’, in international literature, was taken over by Smith from the Anglo-Saxon marketing approach and represented by Philip Kotler. The concept has now become widely used. ‘Tourism product’ was seen as the primary category for the development of the tourism supply. It was considered as a set of services aimed at the full satisfaction and the needs of tourists. It was also focused on the attractions within the region. Within the latter aspect, factors considered included transport and access to the attraction, accommodation, catering, entertainment, health, security, banking, communication and other services. ‘Tourism product’ can most accurately described by four ‘A’s. Each tourism product has four basic constituents:

- Attraction - Access - Accommodation - Attitude

Aimed at the promotion of the four A’s, the development policies coordinated by the EU and implemented by partner countries, will also prompt the qualitative standardization of the tourist services offered9. According to Goeldner and Ritchie, the success of a tourist destination is determined by its capacity to gather, analyze and use information regarding its actual and potential customers. Without this information, the marketing of the tourist destination will be poorly supported, affecting its competitive performance. However, the demand of any one product is not homogeneous, comprising individuals with differential purchasing and consumption patterns, including different needs, expectations and behaviors. Given their differential characteristics, heterogeneous markets are difficult to manage. Thus, there is a need to break down the markets into smaller groups to enhance the effectiveness of the marketing strategy10.

9 “Design and development of touristic products”, Gábor Michalkó, Szilvia Boros, János Csapó – University of Peck, 2011. 10 “Multidimensional segmentation of gastronomic tourists based on motivation and satisfaction”, Antónia Correia, Miguel Moital, Nuno Oliveira, Carlos Ferreira da Costa, 2009. 31 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

3.2 - Leisure and Business Tourism in the Adriatic and Ionian Region 3.2 - Leisure and Business Tourism in the Adriatic and Ionian Region

3.2- Leisure and Business Tourism in the Adriatic and Ionian Region In the Adriatic and Ionian Area, leisure tourism covers more than 84% of the global tourismIn the expenditureAdriatic and with Ionian different Area, leisure dynamics tourism within covers each of more the eight than 84%partner of countries. the global During In the Adriatic and Ionian Area, leisure tourism covers more than 84% of the global tourism tourismthe expenditure last few years, with Montenegro, different dynamics Serbia and within Albania each have of the been eight the partner countries countries. that have During recorded expenditure with different dynamics within each of the eight partner countries. During the last few the last few years, Montenegro, Serbia and Albania have been the countries that have recorded years,the Montenegro, best performance Serbia (167 and Albania million ofhave $ in been 2003 the and countries 1 billio thatn $ have in 2014 recorded with a the growth best performance of about the(167 best600%).Figure million performance 18 of- Leisure $ in 2003 (167 & Business and million 1 billion Travel of $ in$ & in 2003Tourism 2014 and with Spending 1 a billio growthn in $ the inof EUSAIR 2014about with600%). Area a in growth 2014 of about

600%).Figure 18 - Leisure & Business Travel & Tourism Spending in the EUSAIR Area in 2014

Figure 18 - Leisure & Business Travel & Tourism Spending in the EUSAIR Area in 2014

33,9 33,9 Business Tourism Spending US$ Businessin bnTourism (Real prices)Spending US$ in bn (Real prices) Leisure Tourism Spending US$ in Leisurebn Tourism (Real prices) Spending US$ in bn (Real prices)

Source: Source: WTTCdata. WTTCdata. Source: WTTCdata.

Figure 19 - Leisure Travel & Tourism Spending in the Adriatic and Ionian Area: (Index numbers Figure 19 - Leisure Travel & Tourism Spending in the Adriatic and Ionian Area: (Index numbers 2003 = 100) Figure2003 19 - Leisure= 100) Travel & Tourism Spending in the Adriatic and Ionian Area: (Index numbers 2003 = 100)

Albania 350 Albania 350 Bosnia-Herzegovina

300 Bosnia-Herzegovina Croatia 300 Croatia Greece 250 Greece 250 Italy

Italy 200 Montenegro

200 Montenegro Serbia 150 Serbia 150 Slovenia

Slovenia 100 100

50 50

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: 2003 WTTCdata.2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: WTTCdata.

Source: WTTCdata.

33 33 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure 20 - Business Travel & Tourism Spending in the Adriatic and Ionian Area (Index Numbers 2003 = 100)

A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

410 Figure 20 - BusinessAlbania Travel & Tourism SpendingBosnia in the-Herzegovina Adriatic and Ionian Area (Index Numbers 2003

= 100) Croatia Greece 360 Italy Montenegro Figure 20 - Business Travel & SerbiaTourism Spending in the AdriaticSlovenia and Ionian Area (Index Numbers 2003= 100)

310

410 260 Albania Bosnia-Herzegovina Croatia Greece 360 Italy Montenegro Serbia Slovenia 210 310

160 260

110 210

60 160 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: WTTCdata.110

60 Source: WTTCdata.2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: WTTCdata. Concerning Concerning business business tourism, tourism,by looking by at looking the trends at inthe spending, trends in it spendiis possibleng, it observe is possible a large observe a increaselarge increase in Montenegro, in Montenegro, where a where large a number large number of business of business travelers travelers from Russia from are Russia welcomed. are welcomed. Overall, the negative trend of the expenditure, particularly from the business sector, is defined by the Overall, the negative trend of the expenditure, particularly from the business sector, is defined by performance of ItalyConcerning (Figure 21).Future business tourism, measures by are looking necessary at the in trendsorder to in recover spending, the it sector is possible which observecan a be achieved through initiatives targeted at M.I.C.E (Meeting, Incentive, Congress, Events). the performancelarge increase of inItaly Montenegro, (Figure 21). where a large number of business travelers from Russia are welcomed. Future measuresOverall, the are negative necessary trend in of order the expenditure, to recover theparticularly sector which from the can business be achieved sector, through is defined by Figureinitiatives 21 - Leisure targeted and business at M.I.C.E to comparison (Meeting, (Index Incentive, Numbers Congress, 2003 = 100) Events). Figure 21 - Leisurethe performance and business of Italy to comparison (Figure 21). (Index Numbers 2003 = 100) Future measures are necessary in order to recover the sector which can be achieved through initiatives targeted at M.I.C.E (Meeting, Incentive, Congress, Events). Figure 21 - Leisure and business to comparison (Index Numbers 2003 = 100)

115 111,2 111,7 110 105,4 115 111,2 105 103,8 111,7 110 105,4 103,5 103,1 99 ,2 102,1 100 100,4 97,1 96,3 105100,0 98,5 103,8 95,8 103,5 103,1 99,2 Business Tourism 102,1 99,9 91,3 96,4 97,1 95 100 100,0 100,4 95,8 96,3 Spending US$ in 98,5 92,3 Business Tourism 99,9 91,3 96,4 bn (Real prices) 90 95 90,8 90,0 Spending US$ in 92,3 bn (Real prices) 90 85 90,8 90,0 84,6 81,1 80,8 Leisure Tourism 80 85 84,6 81,1 80,8 LeisureSpending Tourism US$ in 80 Spendingbn (Real US$ prices)in 75 75 bn (Real prices) 70 70 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: WTTCdata.Source: WTTCdata. Source: WTTCdata.

34 34 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Finally, regarding the range of accommodation is possible to observe that Italian Adriatic Regions and Greece haveFinally, the greatest regarding accommodation the range of accommodationcapacity in the EUSAIR is possible Partners, to observe with the that highest Italian number Adriatic of hotels.Regions With and around Greece two have million the greatestof bed places, accommodation the Italian capacityregions drives in the the EUSAIR other partners, Partners, followed with the fromhighest Greece number (1.200.000 of hotels. places With bed) around and from two the million Croatia of bed(more places, than the800 Italianthousand). regions drives the other partners, followed from Greece (1.200.000 places bed) and from the Croatia (more than 800 Figurethousand). 22 - Number of beds by type of establishments, 2013 Figure 22 - Number of beds by type of establishments, 2013

Camping grounds, recreational vehicle 2.000.000 parks and trailer parks 1.800.000 Holiday and other short-stay 1.600.000 accommodation 1.400.000 Hotel and similar 1.200.000 1.000.000 800.000

600.000

400.000 200.000

0 Croatia Greece Montenegro Italian Albania Bosnia & Slovenia Serbia Adriatic and Herzegovina Ionian Source: Eurostat, for Albania and Bosnia & Herzegovina shortRegions holiday and camping bed-places estimated value. Source: Eurostat, for Albania and Bosnia & Herzegovina short holiday and camping bed-places estimated value.

35 3.3 - The cultural and natural heritage: performance evaluation

Heritage is a broad concept and includes the natural as well as the cultural environment. It encompasses landscapes, historic places, sites and built environments, as well as biodiversity, collections, the past and continuing cultural practices, knowledge and living experiences. It records and expresses the long processes of historic development, forming the essence of diverse national, regional, indigenous and local identities and is an integral part of modern life. It is a dynamic reference point and positive instrument for growth and change. The particular heritage and collective memory of each locality or community are irreplaceable and an important foundation for development, both now and into the future. Sustainable heritage management represents an approach for managing the resources of a property by integrating environmental, economic, and social issues. It aims to provide sustainable benefits for future generations while protect the property and minimize the possible adverse social, economic and environmental impacts. A natural link exists between tourism and cultural heritage management, yet little discourse and debate occurs between them on the sustainability of heritage tourism. What is missing is a process whereby elements of both areas can be included in the identification and actualization of the tourism potential of cultural and natural heritage places11. With 76 UNESCO sites, the Adriatic and Ionian Region hosts about 21% of European Heritage. The 13 italian regions partner of the Macro-region encompass 51% of the cultural heritage (39 sites), followed by Greece with 17 sites and Croatia with 7 sites. Besides the routes crossing Unesco sites, one of the priorities of the strategy is to promote the enhancement of itineraries linked to locations of The First and Second World War, in order to become included in the UNESCO list (the complete list of the heritage is in the appendix of this text). The creation of common routes throughout the Macro-region, capable of networking the vast resources available, is among the priority policies of this government. There are some international markets, such as Japan, which are particularly interested in the cultural routes and consider the UNESCO brand a synonym of quality assurance. Another precious resource for the development of sustainable tourism is the enhancement of natural heritage. For many nations, particularly in the developing world, protected area tourism either generates, or has the potential to constitute, a significant proportion of national GDP, foreign exchange earnings and employment figures. Quoting the International Cultural Tourism Charter (ICOMOS - International Council on Monuments and Sites 1999): “The natural and cultural heritage, diversities and living creatures are major tourism attractions. Excessive or poorly managed tourism and tourism related development threaten their physical nature, integrity and significant characteristics. The ecological setting, culture and lifestyles of host communities may also be degraded, along with the visitor’s experience of the place”. Therefore, it is necessary to preserve and enhance the natural and cultural heritage of the Adriatic and Ionian Region in accordance with its uniqueness. The Adriatic-Ionian Region includes over 65 National Parks (15% of EU parks) and an infinite variety of protected areas (marine and terrestrial).

Many of these areas have already implemented a process through which to reconcile preservation and development. Many protected areas of the Adriatic and Ionian Region have begun the run of adhesion at the European Charter for Sustainable Tourism in Protected Areas. It is a practical management tool for ensuring that tourism contributes to a balanced economic, social and environmental development of protected areas in Europe.

11 INTERNATIONAL CULTURAL TOURISM CHARTER (Managing Tourism at Places of Heritage Significance , 1999), Adopted by ICOMOS at the 12th General Assembly in Mexico, October 1999 35 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

natural and cultural heritage of the Adriatic and Ionian Region in accordance with its uniqueness. The Adriatic-Ionian Region includes over 65 National Parks (15% of EU parks) and an infinite variety of protected areas (marine and t errestrial).

Many of these areas have already implemented a process through which to reconcile preservation and development. Many protected areas of the Adriatic and Ionian Region have begun the run of adhesion at the European Charter for Sustainable Tourism in Protected Areas. It is a practical management tool for ensuring that tourism contributes to a balanced economic, social and Figure 23 - How much is nature worth? Some information about Natural & Adventure tourism environmentalFigure 23 - How development much is nature of worth?protected Some areas information in Europe. about Natural & Adventure tourism

The ecotourism in the World

209.000 protected areas in the world. 8 billion of visitors 15,4% of territory every year 3,4% of oceans

80% in North 600 billion $ of direct America and Europe expenditure

Source: «Walk onSource: the wild «Walk side: on estimating the wild side: the estimatingglobal number the global magnitude number of magnitude visits to protected of visits areas»,to protected Plos areas»,Biology. Plos Biology.

The Charter is a voluntary agreement and aims to encourage good practice by recognizing protected areas, which are meeting agreed requirements for the sustainable development and management of The Chartertourism. isSafeguarding a voluntary nature agreement and curbing and overbuilding aims to is encourage essential for goodthe strategy practice 2020. byAfter recognizing all, the protected areas,potential which of nature are and meeting cultural tourism agreed speaks requirements through statistics: for the in Italy, sustainable for each presence, development cultural and tourism generates € 105.4 of GDP 38% more than the figure for seaside tourism (€ 76.3). If it is linked to managementfood of and tourism. wine the Safeguarding value increases naturefurther12 .and curbing overbuilding is essential for the strategy 2020. After all,On the other potential hand, of the nature numbers and related cultural to ecotourism tourism speaksand visitors through of the statistics: protected areas in Italy, are for each presence,impressive. cultural The researchers tourism generates of “Walk on € the 105.4 wild side” of GDP estimate 38% the more global thannumber the magnitude figure forof visits seaside to protected areas - Plos Biology - has quantified in 8 billion visits per year13 in the protected areas of tourism (€ the76.3). planet. If it Of is linkedthese, approximately to food and wine80% is the related value to increases North America further and. Europe. According to this estimate, these visits generate about $ 600 billion of direct spending and $ 250 billion annually in consumer surplus. According to the “Adventure Tourism Market Study 2013”, the economic impact of On theNatural other & Adventurehand, the Tourismnumbers was related realized to inecotourism a study by and researchers visitors of of The the George protected Washington areas are impressive.University. The researchers of “Walk on the wild side” estimate the global number magnitude of visits to protectedThe study ar easprovided - Plos a viewBiology of the - adventurehas quantified travel market in 8 billion by looking visits at threeper keyyear regions: in the Europe, protected North America and South America. According to the United Nation World Tourism Organization areas of the(UNWTO), planet. these Of these,three regions approximately account for 69% 80% of overall is related international to North departures. America and Europe. According to this estimate, these visits generate about $ 600 billion of direct spending and $ 250 billion annually12 “Il turismo in consumer culturale e l’analisi surplus. dell’impatto According economico to thenelle “Adventureregioni meridionali”, Tourism Salvio Capasso Market – SRM, Study Gruppo 2013”, Intesa. the economic impact of Natural & Adventure Tourism was realized in a study by researchers of The 36

13 “Il turismo culturale e l’analisi dell’impatto economico nelle regioni meridionali”, Salvio Capasso – SRM, Gruppo Intesa.

37 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

George Washington University.

The study provided a view of the adventure travel market by looking at three key regions: Europe, North America and South America. According to the United Nation World Tourism Table 9 - Hard and Soft adventure and nature activities Organization (UNWTO), these three regions account for 69% of overall international departures. Table 9 - Hard and Soft adventure and nature activities Activity Activity TypeType of of Adventure Adventure Archeological expeditions Soft Birdwatching Soft CampingArcheological expeditions SoftSoft Birdwatching Soft Canoeing Soft Camping Soft Caving Hard Canoeing Soft Climbing (mountain, Cavingrock, ice) HardHard Cycling Soft Climbing (mountain, rock, ice) Hard Eco-tourism Soft Cycling Soft Fishing Soft Eco-tourism Soft Hiking Fishing SoftSoft Horseback ridingHiking SoftSoft

KayakHorseback riding SoftSoft Kite surfing Kayak SoftHard OrienteeringKite surfing HardSoft SailingOrienteering SoftSoft Scuba DivingSailing SoftSoft Surf Scuba Diving SoftSoft Snorkeling Surf SoftSoft TrekkingSnorkeling SoftHard Volunteer TourismTrekking HardSoft Skiing/SnowboardingVolunteer Tourism SoftSoft Skiing/Snowboarding Soft Source: «Adventure Tourism Market Study 2013», The George Washington University. Source: «Adventure Tourism Market Study 2013», The George Washington University.

The size and nature of this kind of travel market from these three regions were estimated using the resultThe of a size representative and nature survey of this of 838 kind international of travel marketravelers.t from In the these study threeeach activity regions was were categorized estimated usingas “hardthe result adventure” of a representative and “soft adventure”. survey of 838 international travelers. In the study each activity was categorizedAdventure traveler as “hard per adventure” trip spending and (excluding “soft adventure”. airfare and gear) increased from US$ 593 in 2009 to US$ 947 in 2012, a yearly increase of nearly 20%. The average length of an adventure trip was ten days.Adventure Spending per traveler trip increased per trip for spending both soft and(excluding hard adventure airfare tripsand acrossgear) allincreased regions. from US$ 593 in 2009 to US$ 947 in 2012, a yearly increase of nearly 20%. The average length of an adventure trip wasThe largest ten days. increases Spending in average per tripspending increased came from for both South soft American and hard travelers, adventure who increased trips across their all hard adventure trip spending by 85% per year, and soft adventure trip spending by 25% per year. regions.

38 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

The largest increases in average spending came from South American travelers, who increasedThe Table their below hard shows adventure the average trip trip spending spending by of 85% soft and per hard year, adventure and soft travelersadventure by region.trip spending by 25% per year. The Table below shows the average trip spending of soft and hard adventure TabletravelersTable 10 10 - Hard -by Hard region. and and SoftSoft Adventure Trip Trip Spending Spending

Soft Adventurer Average Trip Spending Soft Adventurer Average Trip 2012 Growth per year 2009-2012 Spending 2012 Growth per year 2009-2012

Europe $ 897 24% Europe $ 897 24% North America $ 1.152 9% North America $ 1.152 9% South America $ 1.501 25% South America $ 1.501 25%

Hard AdventurerHard Adventurer Average Trip Average Spending Trip 20122012 GrowthGrowth per peryear year 2009 2009-2012-2012 Spending

Europe $ 924 28% Europe $ 924 28%

North America $ 875 25% North America $ 875 25%

South America $ 1.333 85% South America $ 1.333 85% Source: «Adventure Tourism Market Study 2013», The George Washington University. Source: «Adventure Tourism Market Study 2013», The George Washington University.

The growth in the natural and adventure travel market can have a significant implication for destinations and travel businesses alike. Many travelers are no longer satisfied with sitting on a beach or shopping. They seek adventure experience that highlight the natural and cultural assets that make a place distinctThe growth from anyin the other. natural Destinations and adventure and business travel thatmarket can canbring have those a significantexperiences implication of life with afor destinationswide range of and unique travel activities businesses will see alike. the greatest Many travelers success in are capturing no longer this satisfiedlucrative market. with sitting on a beach or shopping. They seek adventure experience that highlight the natural and cultural assets 3.4 - Nautical Tourism: the big resource of the Adriatic and Ionian Region that make a place distinct from any other. Destinations and business that can bring those experiencesThe European of life Union with affirms a wide that range the generalof unique objective activities of the newwill strategy see the is greatestto promote success sustainable in capturing economic and social prosperity of the region through growth and the creation of jobs, by improving its attractiveness, thiscompetitiveness lucrative market. and connectivity, while preserving the environment and ensuring healthy and balanced marine and coastal ecosystems. Four main pillars have been identified, focusing on different topics, among them “Driving innovative maritime and marine growth” and “Increasing regional attractiveness (tourism). The Adriatic has experienced intense activity in all maritime tourism dimensions, which can clearly be seen in the following few pages. In 2013, more than 24 cruise ports recorded 6.3 million cruise passengers, a value that includes both cruisers in transit or embarking and disembarking operations.

39 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

3.4 - Nautical Tourism: the big resource of the Adriatic and Ionian Region

The European Union affirms that the general objective of the new strategy is to promote sustainable economic and social prosperity of the region through growth and the creation of jobs, by improving its attractiveness, competitiveness and connectivity, while preserving the environment and ensuring healthy and balanced marine and coastal ecosystems. Four main pillars have been identified, focusing on different topics, among them "Driving innovative maritime and marine growth" and "Increasing regional attractiveness (tourism). The Adriatic has experienced intense activity in all maritime tourism dimensions, which can clearly be seen in the following few pages. In 2013, more than 24 cruise ports recorded 6.3 million cruise passengers, a value that includes both cruisers in transit or embarking and disembarking operations. Table 11Table - The 11 main- The main cruise cruise ports ports of of the the AdriaticAdriatic and and overall overall traffic, traffic, absolute absolute values and values % (2013) and % (2013) CruiseCruise traffic traffic Share % on total Cruise Port Country PassengersPassengers PassengersPassengers Cruise Port Country movementmovement CallsCalls movementmovement CallsCalls 1 VENICE ITA 1.815.823 548 28,5 14,8 Share % on total 2 DUBROVNIK HR 1.086.925 692 17,1 18,6 1 VENICE ITA 1.815.823 548 28,5 14,8 3 CORFU GRE 744.651 480 11,7 12,9 2 DUBROVNIK HR 1.086.925 692 17,1 18,6 4 BARI ITA 604.781 171 9,5 4,6 3 CORFU GRE 744.651 480 11,7 12,9 5 MESSINA ITA 501.316 223 7,9 6,0 4 BARI ITA 604.781 171 9,5 4,6 6 PALERMO ITA 410.999 189 6,5 5,1 5 MESSINA ITA 501.316 223 7,9 6,0 7 KOTOR MON 317.746 387 5,0 10,4 6 PALERMO ITA 410.999 189 6,5 5,1 8 CATANIA ITA 231.765 102 3,6 2,7 7 KOTOR MON 317.746 387 5,0 10,4 9 SPLIT HR 189.107 225 3,0 6,1 8 CATANIA ITA 231.765 102 3,6 2,7 10 ANCONA ITA 109.492 68 1,7 1,8 9 SPLIT HR 189.107 225 3,0 6,1 11 RAVENNA ITA 97.041 74 1,5 2,0 10 ANCONA ITA 109.492 68 1,7 1,8 12 TRIESTE ITA 70.244 32 1,1 0,9 11 RAVENNA ITA 97.041 74 1,5 2,0 13 KOPER SLO 65.434 54 1,0 1,5 12 TRIESTE ITA 70.244 32 1,1 0,9 14 ZADAR HR 34.575 69 0,5 1,9 13 KOPER SLO 65.434 54 1,0 1,5 15 SIBENIK HR 29.784 100 0,5 2,7 14 ZADAR HR 34.575 69 0,5 1,9 16 KORCULA HR 24.786 151 0,4 4,1 15 SIBENIK HR 29.784 100 0,5 2,7 17 ROVINJI HR 8.889 59 0,1 1,6 16 KORCULA HR 24.786 151 0,4 4,1 REGGIO 17 ROVINJI HR 8.889 59 0,1 1,6 18 CALABRIA ITA 5.200 11 0,1 0,3 REGGIO 19 IGOUMENITSA GRE 4.650 14 0,1 0,4 18 CALABRIA ITA 5.200 11 0,1 0,3 20 BRINDISI ITA 4.628 15 0,1 0,4 19 IGOUMENITSA GRE 4.650 14 0,1 0,4 21 PULA HR 4.541 20 0,1 0,5 20 BRINDISI ITA 4.628 15 0,1 0,4 22 OPATIJA HR 2.280 15 0,0 0,4 21 PULA HR 4.541 20 0,1 0,5 23 PIRAN SLO 2.154 12 0,0 0,3 22 OPATIJA HR 2.280 15 0,0 0,4 24 OTRANTO ITA 780 4 0,0 0,1 TOTAL 23 PIRAN SLO 6.367.5912.154 3.71512 0,0100 0,3100 TOTAL 6.367.591 3.715 100 100 24 OTRANTO ITA 780 4 0,0 0,1 Source: Risposte Turismo (2014), Adriatic Sea Tourism Report. Note: the Albanian cruise ports (mainly Durres and Saranda) Source: Rispostedata for Turismo2013 were (2014), not available Adriatic at Sea the Tourismtime of the Report. publication. Note: the Albanian cruise ports (mainly Durres and Saranda) data for 2013 were not available at the time of the publication. Nearly 17 million sea travelers used a ferry, a hydrofoil or a fast catamaran in the Adriatic, with additional passengers crossing domestic channels and reaching islands by sea. Regarding nautical tourism, this latest update reveals more than 320 structures dedicated to this form of tourism that

40 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Nearly 17 million sea travelers used a ferry, a hydrofoil or a fast catamaran in the Adriatic, with additional passengers crossing domestic channels and reaching islands by sea. Regarding nautical tourism, this latest update reveals more than 320 structures dedicated to this form of tourismcould host that up could to 80.000 host boats. up to Venice 80.000 leads, boats. with Venice more leads,than 1.8 with million more passenger than 1.8 movements million passenger - Table 11 - which lists the main cruise ports of the Adriatic and Ionian Sea, and showing as being also in the movementsworld top 10.- Table Dubrovnik 11 - whichis second lists in termsthe main of passengers cruise ports and leadsof the for Adriatic cruise calls. and Ionian Sea, and showing as being also in the world top 10. Dubrovnik is second in terms of passengers and leads Tablefor cruise 12 - Densitycalls. of boat structures and berths per Adriatic region, 2014 Table 12 - Density of boat structures and berths per Adriatic region, 2014

KM PER KM PER COASTLIN E BERTH/KM COUNTRY REGION COASTLIN BERTH/KM STRUCTURESTRUCTURE COUNTRY REGION E(KM) (KM) * * * * ITALY Puglia (Adriatic and Ionian coast) 860 15 12 Puglia ITALY Molise(Adriatic and 35 23 18 ITALY Ionian coast) 860 15 12 ITALY 133 20 19 ITALY Abruzzo Molise 35 23 18 ITALY ITALY Marche Abruzzo 133180 20 32 19 14 ITALY ITALY Emilia Marche 180 32 14 130 51 5 ITALY Romagna Emilia ITALY Veneto Romagna 130170 51 66 5 4 ITALY ITALY Veneto 170 66 4 Friuli Venezia Giulia 130 89 3 ITALY CalabriaFriuli Venezia 725 24* - ITALY Giulia 130 89 3 ITALY ITALY Sicilia Calabria 1639725 24* 27* - - ITALY Istarska Sicilia 1639539 27* 7 - 45 CROATIA CROATIA 539 7 45 Primorsko-goIstarska CROATIA ranskaPrimorsko-go 1.065 3 89 CROATIA CROATIA Zadarska ranska 1.0651.082 3 5 89 18 CROATIA Zadarska 1.082 5 18 Šibensko-kni CROATIA nskaŠibensko-kni 806 6 40 CROATIA nska 806 6 40 Splitsko-dalm Splitsko-dalm CROATIA atinska 1.064 2 66 CROATIA Dubrovačko-atinska 1.064 2 66 CROATIA neretvanskaDubrovačko- 1.025 1 171 MONTENEGROCROATIA Montenegro*neretvanska 1.025 1 171 MONTENEGRO Montenegro* * 294 12 37 ALBANIA Vlorë * 294244 12 1 37 244

GREECE ALBANIA Corfù Vlorë 244200 1 9 244 100

GREECE Corfù 200 9 100 Source: Risposte Turismo (2014), Adriatic Sea Tourism Report. Notes: (*) the values have been rounded either up or down to whole numbers. (**) overall Montenegro coastline. Table does not include some regions without Source:structures Risposte as Turismo in Croatia (2014), AdriaticLičko-senjska Sea Tourism county Report. (200km Notes: of (*) coastline), the values havein Federation been rounded of eitherBosnia up and or Herzegovina down to whole numbers.(23.5km), (**) in overall Albania Montenegro Lezhë (38km) coastline. and Table Durrés does (62km),not include in Greecesome regions Epirus without (200km). structures * estimated as in Croatia values. Ličko-senjska county (200km of coastline), in Federation of Bosnia and Herzegovina (23.5km), in Albania Lezhë (38km) and Durrés (62km), in Greece Epirus (200km). * estimated values.

41 The first 10 positions remained the same as in 2012 with a total Adriatic traffic that overtakes the 5 million (5.22) achieved with nearly 3.200 cruise calls13. With regard to the number of berths per km of coast in Adriatic, the table shows that Friuli-Venezia Giulia could count on 89 berths per km, followed by Veneto (66) and Emilia Romagna (51). Croatia presents lower values, due to its numerous islands and coastline kilometers. Paying attention to the km per structure figures, it is possible to notice that apart from Albania which only hasone marina, Croatia shows high values and hopes, more so than if compared to Italy.

13 Risposte Turismo (2014), Adriatic Sea Tourism Report .

41 4 - The most relevant barriers to competitiveness for the tourism sector 4.1 - Adriatic and Ionian Heritage: a SWOT analysis The Travel & Tourism industry has managed to remain relatively resilient over the recent year despite the uncertain global economic outlook. This has been characterized by fragile global economic growth, macroeconomic tensions, and high unemployment in many countries. Indeed, the sector has benefitted from the continuing globalization process: travel has been increasing in mature markets and, particularly, has been driven by the rising purchasing power of the growing middle class in many developing economies. In such a context, Travel & Tourism has continued to be a main sector for economic development and for sustaining employment, in both advanced and developing economies. A strong T&T sector contributes in many ways to development and the economy. It makes both direct contributions, by raising the national income and improving the balance of payments, and indirect contributions, its multiplier effect and by providing the basis for connecting countries, through hard and soft infrastructure —attributes that are critical for a country’s more general economic competitiveness. In this regard, are listed below some evidence emerging from the study:

➢ The Adriatic and Ionian Region has a vast cultural and natural heritage: 76 Unesco sites and 65 National Parks; ➢ A rich set of ports and other coastal infrastructures: more than 20 cruise ports and 6.3 million passengers movement in the Adriatic Sea; ➢ A coastline of almost 11,000 km (Italy, Croatia, Slovenia, Bosnia and Herzegovina, Montenegro, Albania and Greece); ➢ More than 1.300 islands mostly along the Adriatic and Ionian coast; ➢ Some of the least-touched alpine regions on the continent; ➢ Mediterranean climate along the coast; ➢ Mild winters at the coast and in the Southern part of the region; ➢ Snowy winters in the mountains (ski-tourism); ➢ Excellent outlook concerning the growth of incoming arrivals in the East-bank Adriatic regions (Eastern coast Adriatic regions) - a growth rate of over 5% has been recorded in the last years; ➢ The weight of the Italian regions is actually excessive compared to other partners (more than 50% of the total amount); ➢ A rich natural heritage, food and wine cultural important drivers for facilitating the process of seasonal adjustment; ➢ Not only sea: besides the fabulous coastal landscapes, each of the eight Countries from the EUSAIR a r e a o ff e r s a g r e a t d e a l o f t o u r i s t i c d e v e l o p m e n t o p p o r t u n i t y e v e n i n t h e h i n t e r l a n d a r e a s (Medjugorje, Mountain of Ioannina & Meteora, Mostar, and so on) and beyond summer months; ➢ Improving the road infrastructures is particularly important since tourists tend to arrive by road in the East Adriatic (more than two-thirds of international tourists arrive by road).

The Adriatic and Ionian Region cohesion process has become more and more indispensable in order to face some evident issues: 1. Touristic receipts declined in all of the countries due to financial crises, it’s necessary an immediately reset the pre 2008 standards;

2. Countries which handle bigger number of incoming touristic flows and a wider receptive capacity (Italy, Greece e Croatia) are nowadays stagnating due to low investment, poor GDP and employment

42 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

The Adriatic and Ionian Region cohesion process has become more and more indispensable in order to face some evident issues: ’

1. Touristic receipts declined in all of the countries due to financial crises, it s necessary an immediately reset the pre 2008 standards;

2. Countries which handle bigger number of incoming touristic flows and a wider receptive growth, verycapacity low rate (Italy, of Greece accommodations e Croatia) are beyond nowadays the s tagnatingsummer months;due to low investment, poor GDP and employment growth, very low rate of accommodations beyond the summer months; 3. On the contrary, Montenegro, Albania, Serbia, Slovenia and Bosnia & Herzegovina are passing

through3. a periodOn the of contrary, fledged Montenegro, touristic development Albania, Serbia, and Sloveniathe 2020 and WTTC Bosnia outlooks & Herzegovina indicate area further growth. passing through a period of fledged touristic development and the 2020 WTTC outlooks indicate a further growth. Looking at the Global Travel & Tourism Competitiveness Index (TTCI) - Table 13 -, it is clear that it aims to measure the factors and policies that can attract and develop the T&T sector in different countries.Looking It is possibleat the Global to highlightTravel & Tourism that in Competitiveness the Adriatic and Index Ionian (TTCI) Area, - Table Transport 13 -, it is clear Infrastructure, that it Humanaims Resources to measure and the Price factors Competitiveness and policies that have can attract been identified and develop theas T&Tthe sector most inrelevant different barriers to competitivenesscountries. It for is possiblethe tourism to highlight sector. that in the Adriatic and Ionian Area, Transport Infrastructure, Human Resources and Price Competitiveness have been identified as the most relevant barriers to competitiveness for the tourism sector. Table 13Table - Top 13 10- Top most 10 mostproblematic problematic areas areas based based on average on average rank* rank* (Out (Out of 140 of 140Countries) Countries)

Adriatic and Bosnia & Pillars Albania Croatia Montenegro Italy Serbia Greece Slovenia IonianAdriatic Region and HerzegovinaBosnia & Pillars Albania Croatia Montenegro Italy Serbia Greece Slovenia IonianAverage Region Herzegovina Average Air and Ground Air and Ground 92 61 133 75 32 113 39 50 74 Transportation 92 61 133 75 32 113 39 50 74 Transportation Human Resources: Human Resources: Education 53 83 94 63 41 94 50 55 71 Education and Training 53 83 94 63 41 94 50 55 71 Price Competitivenessand Training 64 109 107 62 134 119 127 111 104 Natural and Cultural 98 44 93 61 31 98 33 57 64 PriceResources Competitiveness 64 109 107 62 134 119 127 111 104 Natural and Cultural 98 44 93 61 31 98 33 57 64 PrioritizationResources of Travel and Tourism (Marketing and 59 61 116 44 79 108 28 50 68 PrioritizationBranding) of Travel and Tourism (Marketing and 59 61 116 44 79 108 28 50 68 Policy Rules and Branding) 69 96 104 22 100 103 98 92 86 Regulations Environmental Policy Rules and Regulations 6269 4496 113104 3322 10053 103115 9872 9224 8665 Sustainability EnvironmentalICT Infrastructure Sustainability 9762 3044 64113 5133 5331 11549 7233 2429 6548

HealthICT and Infrastructure Hygiene 6997 3130 5964 5551 3129 4946 3313 2926 4841

TourismHealth Infrastructure and Hygiene 7669 531 6559 1955 291 4656 133 2614 4130

TourismCountry InfrastructureAverage 7776 565 9565 4919 531 5690 350 1451 3065

Source:Country World Average Economic Forum,77 Travel and56 Tourism Competitiveness95 Report49 2013. 53 90 50 51 65 Source: Worldhttp://www3.weforum.org/docs/WEF_TT_Competitiveness_Report_2013.pdf Economic Forum, Travel and Tourism Competitiveness . Formoredetailsabouttheindexdesign, Report 2013. http://www3.weforum.org/docs/WEF_TT_ check the appendix Competitiveness_Report_2013.pdf.on page 57. For more details about the index design, check the appendix on page 57.

As the Governments are already aware, access infrastructure especially remains a critical component in Travel & Tourism development, if its full potential is to be achieved. In most cases public infrastructure that supports Travel & Tourism expansion will also serve rural and regional development purposes44 and greatly aid employment generation, economic growth and foreign investment. Other peculiarities highlighted by the TTCI indexes include the following:

➢ Some rather expensive countries in international comparison and compared to neighboring countries (Croatia, Slovenia, Serbia, Bosnia & Herzegovina, Italy and Greece); ➢ Natural and Cultural Resources are not truly valued in Albania, Bosnia & Herzegovina and Serbia;

43 ➢ Low level attention to the development of tourism strategies and policies in Bosnia &Herzegovina, Italy and Greece; ➢ Italy, Croatia and Greece are in the world top-five Touristic Infrastructure Ranking (Hotel rooms, Number of hotel rooms per 100, Presence of major car rental companies, ATMs accepting Visa cards); ➢ Bosnia & Herzegovina and Serbia don’t give priority to tourism yet and pay little attention to creating an appropriate marketing and branding plan. Similarly, Italy is above the global average; ➢ Across all areas, the biggest challenges are identified: the development of Air and Ground Transportation, the improvement of Human Resources, Education and Training, and more awareness and control over Price Competitiveness and connect Policy Rules and Regulations;

Tourism is playing an increasingly important role in the future of the Adriatic and Ionian Region. The Adriatic and Ionian Region enjoys a great variety of landscapes and rich diversity of natural, cultural and social heritage. Therefore, it will become increasingly more appealing to the affluent, discerning traveler looking for an ‘authentic experience’. There are still challenges to overcome, including the need for a clear vision, strategy and follow-on implementation, more effective and more extensive industry engagement, reforms of an antiquated labor law and fiscal system, and active environmental protection. These issues have recently begun to be addressed by some governments and the private sector jointly, and it will continue to require the investment of funds, energy and time in order to succeed. An analysis of the strong and weak points, of the opportunities and threats that characterize tourism in the Macro-region in its totality, is summarized in the following SWOT matrix, derived from the analysis by OECD (Organization for Economic Co-operation and Development) laid down in the section «Overview of tourism sector in See». The matrix has been integrated with the main trends that have emerged from this study. The forecast analysis of policy makers and stakeholders for the period up to 2020A European can strategy therefore for the tourism be based sector in theon Adriatic these and benchmarks. Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

TableTable 14 - A14 SWOT - A SWOT (Strengths, (Strengths, Weaknesses, Weaknesses, Opportunities, Opportunities, Threats):Threats): an an analysis analysis of of tourism tourism sector sector in inthe the Adriatic Adriatic and Ionian Area and Ionian Area Strengths Weaknesses

Strengths Weaknesses • Lack of sufficient entrepreneurial and managerial skills • Location in (and proximity to) Europe as the highest- Lack of sufficient entrepreneurial and managerial • Labor market rigidities hampering in particular self- spending region on tourism skills employment • Location in (and proximity to) Europe as the • Large diversity in natural habitat/ natural resources • CountryLabor image market sometimes rigidities negatively hampering influenced in particularby previous highest- spending region on tourism (offer potential for different kinds of tourism) self-conflicts employment

• Rich cultural heritage • Lack of regionally integrated tourism strategy • Large diversity in natural habitat/ natural resources • PartiallyCountry outdated image touristsometimes infrastructure negatively (e.g. influenced museums, by • Some economies are price competitive in the tourism (offer potential for different kinds of tourism) transport, but also lackprevious of medium conflicts-sized hotels common in sector Western Europe) • Low share of business travel and stagnating growth rates in Rich cultural heritage Lack of regionallybusiness travel integrated spending tourism strategy • Increasing investments in the Eastern Adriatic Area • Full potential to attract tourists from WE not tapped (a majority

• MICE - Meetings, Incentives, Congresses and Events – tourism, etc.) • Increasing global competition among companies and regions • Higher environmental awareness of tourists (can be worldwide leveraged for ecotourism, and away from mass tourism) • Tourism selected as a priority sector by some economies • Declining price competitiveness (e.g. Croatia) in the region • Tourism as a cyclical activity (strong seasonal fluctuation, • Long-distance travel almost fully untapped economic recession, specific shocks)

• Rising purchasing power in emerging economies • Stagnating purchasing power in region • Technological change (Internet/ smart phones as major • Expensive air travel (low price competitiveness of airlines)

source of information and distribution) hampering growth in price-sensitive segments • Demographic change (aging population wanting closer • Lack of sustainable planning (e.g. construction boom in

and safe destinations) Montenegro) • Increasing demand for innovative and customized • Weak image of tourism industry as an employer products (potential to focus on specific target groups) • Mostly untapped high-value segments (e.g. adventure, • Environmental pollution and climate change culinary, medical/health tourism, music festivals, Source: OECD «Overview of tourism sector in See». Next Generation Competitiveness Initiative, First Meeting of the Tourism Expert Group, • DemandDubrovnik, for 28 e“authentic”, 29 April 2014. and “special” experience • Governance and brand positioning

46 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Table 14 - A SWOT (Strengths, Weaknesses, Opportunities, Threats): an analysis of tourism sector in the Adriatic and Ionian Area

Strengths Weaknesses

• Lack of sufficient entrepreneurial and managerial skills • Location in (and proximity to) Europe as the highest- spending region on tourism • Labor market rigidities hampering in particular self- employment • Large diversity in natural habitat/ natural resources • Country image sometimes negatively influenced by previous

(offer potential for different kinds of tourism) conflicts

• Rich cultural heritage • Lack of regionally integrated tourism strategy • Partially outdated tourist infrastructure (e.g. museums, • Some economies are price competitive in the tourism transport, but also lack of medium-sized hotels common in sector Western Europe) • Low share of business travel and stagnating growth rates in business travel spending • Increasing investments in the Eastern Adriatic Area • Full potential to attract tourists from WE not tapped (a majority

of tourists come from neighboring countries) • Fragmentation of and insufficient coordination across value chains due to dominance of micro-enterprises, potential for long- • Some economiesOpportunities are price competitive in the distance tourism limitedThreats due to rather a poor airport tourism sector Partially outdatedinfrastructure tourist infrastructure (e.g. museums, transport, but also lack of medium-sized

• MICE - Meetings, Incentives, Congresses and Events – hotels common in Western Europe) tourism, etc.) • Increasing Low global share competition of business among travel companies and stagnating and regions • Higher environmental awareness of tourists (can be worldwide leveraged for ecotourism, and away from mass tourism) growth rates in business travel spending • Tourism selected as a priority sector by some economies Increasing investments in the Eastern Adriatic Area • Declining price competitiveness (e.g. Croatia) in the region • Tourism as a cyclical activity (strong seasonal fluctuation, • Long-distance travel almost fully untapped economic recession, specific shocks) Full potential to attract tourists from WE not tapped • Rising purchasing power in emerging economies • Stagnating purchasing power in region (a majority of tourists come from neighboring • Technological change (Internet/ smart phones as major • Expensive air travel (low price competitiveness of airlines) countries) source of information and distribution) hampering growth in price-sensitive segments • Demographic change (aging population wanting closer • Lack of sustainable planning (e.g. construction boom in

and safe destinations) FragmentationMontenegro) of and insufficient coordination • Increasing demand for innovative and customized across value chains due to dominance of micro- • Weak image of tourism industry as an employer products (potential to focus on specific target groups) enterprises, potential for long-distance tourism • Mostly untapped high-value segments (e.g. adventure, limited due to rather a poor airport infrastructure • Environmental pollution and climate change culinary, medical/health tourism, music festivals, Source: OECD «Overview of tourism sector in See». Next Generation Competitiveness Initiative, First Meeting of the Tourism Expert Group, • Demand for “authentic”, and “special” experience • Governance and brand positioning Dubrovnik, 28 e 29 AprilOpportunities 2014. Threats

MICE - Meetings, Incentives, Congresses and Events – tourism, etc.) Increasing global competition among companies Higher environmental awareness of tourists (can be and regions worldwide leveraged for ecotourism, and away from mass tourism)

Tourism selected as a priority sector by some economies Declining price competitiveness (e.g. Croatia) in the region Long-distance travel almost fully untapped Tourism as a cyclical activity (strong seasonal fluctuation, economic recession, specific shocks) 46

Rising purchasing power in emerging economies Stagnating purchasing power in region Technological change (Internet/ smart phones as major Expensive air travel (low price competitiveness source of information and distribution) of airlines) hampering growth in price-sensitive segments Demographic change (aging population wanting closer Lack of sustainable planning (e.g. construction and safe destinations) boom in Montenegro)

Increasing demand for innovative and customized Weak image of tourism industry as an employer products (potential to focus on specific target groups)

Mostly untapped high-value segments (e.g. adventure, Environmental pollution and climate change culinary, medical/health tourism, music festivals,

Demand for “authentic”, and “special” experience Governance and brand positioning

Source: OECD «Overview of tourism sector in See». Next Generation Competitiveness Initiative, First Meeting of the Tourism Expert Group, Dubrovnik, 28 e 29 April 2014.

4.2 – A multidimensional approach of tourism sector: a new way of network governance

Governments of destination countries have a major role to play in the development, management, and promotion of international tourism. They take responsibility for developing, modernizing and managing the tourism infrastructure, such as airports, roads, and national parks, and establishing the regulatory systems that prevent uncontrollable growth that may damage the environment, historic sites and monuments.

In addition, governments are supposed to act to enable tourists to leave the destination countries with a favorable opinion. This can be achieved by forward planning in order to avoid the bottlenecks that disrupt the everyday tourists’ plans and schedules. For example, if airports, air flights, or roads are too inadequate to meet tourist demand, those affected would be stranded and may never consider repeat visits to such a destination. Governments also have a primary responsibility in ensuring fair treatment of tourists as well as protecting their and their property’s safety14.

On the other hand, tourism is also a collective phenomenon which is linked to other sectors such as politics, society, technology, the environment and the anthropological aspect of the territories.

CO-OPETITION - a model in which a network of stakeholders cooperate and compete to create maximum value. This is one of the most important business perspectives of recent years, especially in the tourist sector. Internet and mobile technologies have made it even more necessary for companies and government to both cooperate and compete, by enabling relationships through information sharing as well as integrating and streamlining processes. In today’s networked economy, co-opetition is a powerful means of identifying new market opportunities and developing business strategy15.

By 2025, with the cooperation of all the tourism operators, the Adriatic and Ionian Region could become a unique, compact and homogeneous destination, able to offer the same quality and promote itself on the world markets. Milan, Venice, Bologna, Palermo, Belgrade, Lubiana, Athens, Dubrovnik, Tirana, Podgorica, Sarajevo will become part of a unique tourist network called the Adriatic-Ionian Macro-region: A great, competitive and sustainable tourist destination committed creating a unified image, a unique brand will enable new foreign market shares and the ability to compete on a global level.

The idea of branding a destination is a relatively new one and the academic investigation of such a process is still in its infancy16. Although the words ‘brand’, ‘branding’ and ‘destination image’ have already appeared in many academic studies and industry conferences, no apparent effort has been made to distinguish between destination image and destination branding.

The most frequently cited definition for destination image is: ‘the sum of beliefs, ideas and impressions that a person has of a destination’¹⁷.

14 The Multi-Dimensional Impact Of International Tourism, Hany H. Makhlouf, University of the District of Columbia, USA (2012). 15 Strategic co-opetition: the value of relationships in the networked economy. Julie Bowser, IBM. Basic principles of co-ope- titive structures have been described in "Game theory", a scientific field that received more attention with the book Theory of Games and Economic Behavior in 1944 and the works of John Forbes Nash on non-cooperative games. It is also applied in the fields of political science and economics and even universally (works of V. Frank Asaro, J.D.: Universal Co-opetition - 2011), The Tortoise Shell Code, a novel (2012), and A Primal Wisdom, a non-fiction corollary to the novel (2014). 16 “The Structure of Destination Brands”, J. Gnoth, 1998. 17 Crompton, J. “Motivations of pleasure vacations. Annals of Tourism Research”, 1979 . 46 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure 24 - The multidimensional approach of tourism sector: an operating model The most frequently cited definition for destination image is: ‘the sum of beliefs, ideas and Figure 24 - The multidimensional approach of tourism18 sector: an operating model impressions that a person has of a destination’ .

Environmental Economical

Social Technological

Political

Adriatic and Ionian Region competitive and sustainable touristic destination in 2020

Phase 1 – year Phase 2 – year 2023 Phase 3 – year 2025 2020 Development of Brand positioning on Products Marketing. brand and national and Worldwide promotion of integrated tourist touristic identity international markets products and services with high added value

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47 SECTION ONE: The analysis SECTION TWO: The strategy

5 - A joint strategy for a sustainable tourism development in the Eusair Area

5.1 - Introduction

This section of the document presents a shared strategy for tourism development in the EUSAIR area. In fact, from previous analyses emerges how, despite a huge potential, the Adriatic and Ionian Region is still facing considerable disparities, in terms of infrastructure, perspectives, and business opportunities, which can jeopardize the integration process, both between and within the states of the Region, and reduce attractiveness for investments and tourists. All of these, with negative repercussions in terms of jobs and prosperity. On the other side, a number of challenges and development opportunities have been identified, which need to be addressed through innovative but sustainable approaches, based on the enhancement of awareness and information exchanges. With the aim to make tourism a leverage for strengthening territorial cooperation in the Adriatic and Ionian Region and to capitalize on the existing cooperation networks already set in the Area, the shared strategy here proposed intends to remove bureaucratic obstacles, create business opportunities and enhance the competitiveness of the Region, by building on its wide range of internal resources and attractors. In detail, the diversification of the EUSAIR Area’s tourism products and services along with tackling seasonality of inland, coastal and maritime tourism demand, and the improvement of the quality and innovation of the tourism offer across the Region are here suggested, through a greater involvement of local authorities and civil society in the decision-making process and in the implementation of the EU regional policy, then conferring to the cooperation and integration activities a concrete regional dimension. Moreover, horizontal interventions promoting establishment of generally accepted standards and rules are recommended, as well as an improved cooperation between public and private tourism associations. This is the reason why a multi-level governance model is here depicted and a series of pilot actions are set up, which may be able to enhance knowledge-transfer, in particular among the representatives of the involved local and regional authorities (this, even through a raised awareness on European integration and EU accession), and to improve the local authorities planning capacity, by making them able to implement specific sets of skill concerning European project cycle management, structural funds management, fund raising and networking activities, through training courses and experience exchanges. The net gains of this kind of joint approach are expected in terms of an increased tourist flows and access to new tourism markets, in the spread of peaks and troughs of demand so that Regional assets can be better utilized in time and space, in the diffusion of new technologies and know-how, in the preservation and valorization of EUSAIR Partners’ natural, cultural and social heritages, which could promote more business opportunities while increasing employment and fostering enterprise development. In order to reach these goals, the three mutually reinforcing priorities (smartness, inclusivity and sustainability in growth) the European Commission put forward within the Europe 2020 strategy have been taken in consideration, as well as the Communication from the European Commission to the other EU Institutions concerning the European Union Strategy for the Adriatic and Ionian Region (COM(2014) 357 final), and in the Action Plan which complements the Communication. The latter, in particular, identifies four pillars for the Adriatic and Ionian Region development to be reached: a) a blue growth (that is to say, an innovative approach to the maritime and marine ecosystems, which could promote sustainable business opportunities in the Blue Economy sectors, in line with the Barcelona Convention); b) an improved connectivity within the Region and with the rest of Europe, first of all in terms of infrastructure and energy networks; c) a focus on the environmental quality, due to

48 its ability to underpin human activities in the Region and to ensure economic and social well-being for its peoples; d) a sustainable and responsible development of the Regional tourism potential, through innovative and quality tourism products and services. These pillars are at the basis of the joint set of actions here proposed, which are grouped into a series of lines of intervention. Both strategy and actions result from the study of strategies, models of governance, best practices and initiatives adopted within the Area for the enhancement of tourism, as described in policy documents collected from EUSAIR Partners. Moreover, an analysis of EU documents has been carried on, with a particular regard to: the Treaty of Functioning of the European Union where, as laid down by Article 195, the promotion of competitiveness, the exchange of good practices, the development of an integrated approach to tourism are considered the main triggers for a smart, sustainable and inclusive growth; the Communication (COM(2010)352) Europe, the world’s No 1 tourist destination – a new political framework for tourism in Europe, in which the Commission focuses on the need to boost competitiveness in the European tourism sector with a sustainable approach; and the Communication (COM(2014)86) A European Strategy for more Growth and Jobs in Coastal and Maritime Tourism, that sets the framework for current challenges and proposes a collection of actions to unlock the full potential of this growing and promising sector. Finally, the strategy here proposed has been fine-tuned by a bottom-up consultation process, which involved a wide range of stakeholders from the Adriatic and Ionian Region representing national, regional and local authorities, but also the private sectors, academia and civil societies. This, with the aim to allow stakeholders at all levels to comment on and to endorse the selected priorities and lines of interventions as the most promising for responding to challenges and opportunities shared by the EUSAIR countries.

5.2- A shared strategy for cooperation in tourism. Priorities

The strategy here proposed aims at contributing to smart and sustainable growth in the EUSAIR Area, through the promotion of a more resource-efficient, responsible and high-quality tourism offer, while delivering social and territorial cohesion. Two are its general objectives: a. to boost competitiveness of tourism supply chain in the Region, while being aware that in the long term competitiveness itself is closely linked to the sustainable way in which it is developed;

b. to support the evolution and transformation of the EUSAIR Area into a proper tourism destination, whose integrated and coordinated activities provide customers with the experiences they expect.

With regard to point (a), it is perhaps not surprising that much of the interest in managing competitiveness in tourism from a sustainable perspective focuses on the ecological dimension, given the level of concern expressed globally about human pressure on the earth’s environment. In this sense, tourism industry is called to play an important role, by ensuring that any development in terms of arrivals or presences minimizes harm to the Regional habitats and ecosystems. However, with a view to dynamic growth, in addition to protecting the environment an effective tourism policy has to be capable of meeting the economic needs and aspirations of residents over the long term, by providing job security, attractive wages, salaries and benefits, and economic incentives that encourage preservation and protection. Finally, to be properly sustainable a tourism development strategy has to be addressed to its sociocultural impacts. In fact, when tourists travel, the desire to see, experience and learn something of the area’s sociocultural fabric is typically a central element of their motivation. However, if from the one side tourism contributes to border cultural understanding by creating awareness, respecting the diversity of culture and ways of life, from the other the presence and influence of tourists can create negative impacts on the host societies, for instance in terms of commodification of those things

49 that define their culture, crime or environmental deterioration, which can bring about irritation and stereotyping. This is the reason why a bottom-up approach is highly recommended, in which residents may be empowered, through consultation and participation, on the number of aspects covered by a strategy for sustained competitiveness in tourism, like: the responsible use of natural resources, taking account of the environmental impact of tourism-related activities (first of all, in terms of waste production, pressure on water, land and biodiversity) and the use of “clean” energy; the protection of integrity and the preservation of the full range of heritages in the area; the quality and durability of jobs created, as well as customer hospitality and care. Within this framework, the strategy here proposed is based on the assumption that what makes the EUSAIR Area truly competitive is its ability to increase tourism expenditure, to increasingly attract visitors while providing them with satisfying, memorable experiences, and to do so in a profitable way, while enhancing the well-being of residents and preserving the natural, social and cultural capitals of the Area for future generations. In order to achieve this goal, a meta-managerial action is required, by the development of an EUSAIR Destination Management Organization, making the Region to emerge as a geographical space in which exists, under the same brand name, a cluster of tourist resources and attractions, infrastructure, equipment, service providers, other support sectors and administrative organizations, whose integrated and coordinated activities provide customers with the experiences they expect. The Destination Management Organization (DMO) here defined should be both entangled with a better connection between the supply and demand aspects of tourism, through an integrated promotion of the Regional tourism offer, and with a maximized use of its cultural, natural, maritime and agri-food heritages towards tourism development. This, by encouraging a horizontal approach, which could highlight interdependence between the tourism industry and other complementary sectors along the value chain. Then, it follows that the focus of DMO activities lies in developing and leading collaborative practices that match internal (destination) resources with macro environment (market) opportunities. The remainder ofA Europeanthis proposal strategy for theis basedtourism sector on thein the structure Adriatic and Ionian depicted Region (EUSAIR): in Figure competitiveness, 1. internationalization and sustainability

Figure 1 – The proposed Destination Management Framework Figure 1 – The proposed Destination Management Framework

Source: Adapted from Pike, S., & Page, S.J. (2014). Destination Marketing Organizations and destination marketing: A Tourism Management narrative analysisSource: ofAdapted the literature. from Pike, S.,Tourism & Page, S.J. Management, (2014). Destination 41, 202Marketing – 227. Organizations and destination marketing: A narrative analysis of the literature. , 41, 202 – 227.

At the pinnacle is what is believed to be the quintessential goal of the EUSAIR Destination Management Organization, which is a sustained destination competitiveness. Any attempt to achieve

this requires two core elements, the19 first of which are resources that represent the most effective sources of comparative advantage and that are here identified in the intrinsic variety of cultural, natural (in terms of coastal, marine, and hinterland environment), and agri-food Regional heritages. The second requirement is effective destination management. Common to both elements is the need for organization and leadership of the amalgam of stakeholders associated with the tourism itself and the tourism-related industries, by the definition of an impartial coordinator, able to pool destination resources, to promote transnational synergies, and to create a bigger collective impact in the market, while ensuring a seamless, hassle-free interface among all elements of the total travel experience. With this regard, destination management organizational activity can be viewed from two perspectives: internal (through an appropriate and efficient use of resources) and external (as search for effectiveness, in order to establish and hold a leadership market position in both traditional and emerging source markets); both of them, involving the development of a brand identity and the coordination of brand positioning marketing communications, the success of which requires performance measurement and tracking.

19 For a resource to be considered a source of comparative advantage, the following criteria are identified: it should be “valuable”, in terms of either reducing costs or increasing revenues; it should be “rare”, relative to rivals in the competitive set for a given travel situation; it should not be “imitable” by competitors; it should be “organizable” by firms in order to maximize its marketplace impact.

53 At the pinnacle is what is believed to be the quintessential goal of the EUSAIR Destination Management Organization, which is a sustained destination competitiveness. Any attempt to achieve this requires two core elements, the first of which are resources that represent the most effective 18 sources of17 comparative advantage and that are here identified in the intrinsic variety of cultural, natural (in terms of coastal, marine, and hinterland environment), and agri-food Regional heritages. The second requirement is effective destination management. Common to both elements is the need for organization and leadership of the amalgam of stakeholders associated with the tourism itself and the tourism-related industries, by the definition of an impartial coordinator, able to pool destination resources, to promote transnational synergies, and to create a bigger collective impact in the market, while ensuring a seamless, hassle-free interface among all elements of the total travel experience. With this regard, destination management organizational activity can be viewed from two perspectives: internal (through an appropriate and efficient use of resources) and external (as search for effectiveness, in order to establish and hold a leadership market position in both traditional and emerging source markets); both of them, involving the development of a brand identity and the coordination of brand positioning marketing communications, the success of which requires performance measurement and tracking. In this perspective, tourism has not to be considered a sector on its own: a joint development of tourism and other industries is needed, through the activation of synergies with sectors like the Blue and the Green ones, as well as those of cultural and creative industries19 or typical productions. In this way the cultural, natural and agri-food heritages of the EUSAIR Area will be not only protected or valorized, but rather used as drivers for innovation and creativity, that is to say sustainable competitiveness. Then, a series of actions are here proposed, which are grouped under the following lines of intervention: • Line 1: Improve quality and innovation in tourism supply chain, by supporting an entrepreneurial approach whose goal is to reduce the sector’s dependence on the seasonal model;

• Line 2: Create an integrated tourism offer, by providing high value-added products and services; • Line 3: Bring about a flexible interface management system, able to promote responsibility, cooperation and exchange of good practices among the amalgam of stakeholders associated with the tourism itself and the tourism-related industries;

• Line 4: Increase physical and informative accessibility to the Area, as well as internal mobility, by adjusting tourism products and services to the needs of both residents and visitors.

These suggested lines of intervention are hoped to provide the skeleton for a new action framework for tourism, which the EUSAIR Partners may implement in close cooperation with principal operators in the industry, in order to promote tourism and strengthen territorial cooperation in the Region.

18 For a resource to be considered a source of comparative advantage, the following criteria are identified: it should be “valuable”, in terms of either reducing costs or increasing revenues; it should be “rare”, relative to rivals in the competitive set for a given travel situation; it should not be “imitable” by competitors; it should be “organizable” by firms in order to maximize its marketplace impact. 19 In defining the “cultural” and “creative” industries, this documents adopts the approach from the European Commission’s Green Paper Unlocking the potential of cultural and creative industries and the 2005 UNESCO Convention on the protection and promotion of the diversity of cultural expressions. On these premises, “cultural industries” are intended to be industries producing and distributing goods or services which at the time they are developed are considered to have a specific attribute, use or purpose which embodies or conveys cultural expressions, irrespective of the commercial value they may have. They may include film and video, television and radio, video games, new media, music, books and press, besides the traditional arts sectors like performing arts, visual arts, and cultural heritage, including the public sector. On the other side, “creative industries” are those industries which use culture as an input and have a cultural dimension, although their outputs are mainly functional; in these terms, they include architecture and design, which integrate creative elements into wider processes, as well as subsectors such as graphic design, fashion design or advertising. 51

6 - Action framework

In accordance with the analyses and objectives set out above, on the basis of the feedbacks emerged from the bottom-up consultation process, and taking full account of the institutional framework on tourism provided by the Communication (COM(2010)352) Europe, the world’s No 1 tourist destination – a new political framework for tourism in Europe, the Communication COM(2014)86) A European Strategy for more Growth and Jobs in Coastal and Maritime Tourism, the Europe 2020 Strategy and the EUSAIR Action Plan, a set of actions are now proposed that can be carried out within a sustainable and smart approach of tourism, in order to enhance and strengthen cooperation between and within the EUSAIR Region. 6.1 - Line 1: Improve quality and innovation in tourism supply chain It has been hitherto pointed out how tourism activities are already considered by EUSAIR Partners as an effective and profitable leverage for sustainable growth. However, they are not always managed soundly yet, and this can have negative effects on heritage valorization or environmental protection, as well as in terms of customer satisfaction, which in turn means employment and enterprise development. By integrating quality and innovation approaches into their activities, tourism supply chain operators may increase business by protecting the comparative advantages that make the EUSAIR Region an attractive tourist destination. Then, the objectives of this line of intervention are: a) fostering competitive and (eco) innovative tourist SMEs; b) tackling the seasonality issue; and c) improving intra-Regional cooperation. A series of actions promoting a better understanding of the concept of “sustainable development” among tourism stakeholders are therefore needed, including horizontal interventions that aim to: • Action 1.1 - Establish a harmonized set of standards and classification systems for the hospitality industry, which may act towards the definition of a joint destination offer, as well as an important benchmarking instrument. Classification may thus support both consumers in information seeking, giving them confidence before, during and after the stay, and tourism intermediaries, givinga reference they can use when preparing their catalogues, or negotiating wholesale deals, or putting together a customized product.

• Action 1.2 - Define a joint label for high-quality tourism accommodation products from the EUSAIR Region which, based on existing national experiences, may encourage continuous improvement within a coherent framework. The latter, in particular, could make it possible to evaluate in a consistent manner a sector that is characterized by an extreme diversity of accommodation units, the vast majority of which, in both number and volume, are managed by individual entrepreneurs or by enterprises with fewer than 10 employees. By rewarding rigorous efforts by tourism professionals whose aim is quality of tourism service for customer satisfaction, the high-quality label may thus increase consumer security and confidence in tourism products, acting as an instrument for marketing based on the “certification platform”. Moreover, it would support promotional efforts by hotel and non-hotel structures, which by featuring the label may be able to promote their specific characteristics, and their additional services. Finally, the high-quality label would be useful for improving cooperation between public and private tourism associations, and for fostering the development of a competitive tourism supply chain, showing the EUSAIR Partners desire to bring the quality of their products and services up to a higher level.

• Action 1.3 - Develop long-life training programs and e-learning platforms, in order to update and homogenize (even through a joint Sector Skills Alliance) competences in product/service design, accessibility, hospitality, marketing and promotion in the tourism and tourism-related industries supply chain, with a particular regard to SMEs. As tourism in the Area is experiencing a gap in qualified skills and strategic information on new market trends and new management concepts,

52 the development of vocational training and e-learning platforms is here supported. In detail, an open learning approach, which combines the principles of learner-centeredness, lifelong learning and flexibility of learning can be widely applied in the construction of educational programs where the learners are encouraged to develop professional skills for effective management. Moreover, the professional mobility of workers in the sectors of tourism, Green and Blues economies, cultural and creative industries, and agri-food is encouraged, by a joint promotion of opportunities offered alongside various EU programs such as COSME and ERASMUS +. This with the aim to allow the industry to adapt to social developments which will influence tourist demand, by fostering know-how transfer and good practices exchange on the themes of destination and hospitality management.

• Action 1.4 - Digitalize communication and available tourism offer data storage, by the development of an EUSAIR Area-wide B2B online platform working as a backbone for information audit and transfer. The main functionalities provided by the platform should be the following: a) a unified database, in order to identify and network the existing resources and attractions in the Area that represent potential sources of comparative and competitive advantage (using these concepts differently, when pondering whether Regional stars are made or born) in the various markets of interest to stakeholders, even providing suggestions for the development of advanced tourism products and thematic itineraries on an EUSAIR-Area scale, as described in Action 2.1; b) a facilitated dissemination of tourism knowledge and innovation, by linking the Region’s business actors among themselves, in order to promote the exchange of good practices among the Region, or allow the supply chains operators to respond to market demands and requests quickly, engineer experiences to match specific market expectations, and build long-term relationships with them by understanding their needs and preferences; c) an effective connection between travel businesses (such as providers of accommodation, transport and complementary services, as well as operators working in the field of cultural and creative industries, the Blue and Green sectors, or in that of typical products) with travel agents and tour operators, making them able to upload all available tourism offer; d) a joint database of support services, to be filled in cooperation withlocal Chambers of Commerce. Moreover, the integration of this platform with the ICT systems already in place in Partners’ regions, as well as the provision of a wider support towards the adoption of Information Technology in tourism providers’ operational, marketing and promotional activities are here proposed. This with the aim to make the EUSAIR-Area tourism supply chain operators understand that, with the maturity of Internet users, simply providing information about products and services is not sufficient; hence, a more sophisticated and interactive Web-based destination informative system is needed, in order to take full advantage of opportunities to grow their businesses in the digital market.

• Action 1.5 - Create a business friendly environment for innovative sustainable tourism start-ups and potential entrepreneurs, stressing on the development of programs, joint ventures and innovation incubators aiming to help start-ups, SMEs and university spin-offs in: a) bringing new products and services into the sector; b) accessing to market information or overcoming legal obstacles; c) taking advantage of opportunities offered by the Green and Blue economies, as well as those from creative industries and typical productions; d) identifying potential business, technology, or research partners across the Area. The aim of this action is, indeed, to reignite the Regional entrepreneurial spirit by educating people about creativity, innovation, risk taking, ability to plan and manage projects in order to achieve objectives, thus encouraging to set up their own businesses. Certain groups, such as female entrepreneurs, family businesses, liberal professions, migrants, seniors or social economy enterprises may be particularly targeted.

• Action 1.6 - Provide incentives, under the form of additional funds or tax reduction, to support investment in eco-efficiency improvements, in terms of sustainable construction, retrofitting, waste management 53 and recycling. It has been already underlined that the quality of the EUSAIR tourist destination is strongly influenced by its natural and cultural environment and its integration into the local community; moreover, the adoption of quality management and environmental management would permit the improvement of competitive advantage in terms of both costs and differentiation, with highly positive tourist responses to them. Then, initiatives which promote environmentally- friendly practices through a responsible management of such resources as energy, water, raw materials and guarantee optimum conditions for services and safety, particularly when catering for elderly people or those with reduced mobility, are here encouraged. In particular, incentives towards the average water use reduction are recommended: in fact, water demand from tourism- related hospitality is recognized as a major environmental challenge for the EUSAIR Area, as it may be responsible for significant impact via its contribution to the depletion of groundwater and associated problems such as salinization and subsidence, and demand for energy-intensive desalination and water importation, all problems which can lead towards social tensions within the Region.

6.2 - Line 2: Create an integrated tourism offer

In order to boost competitiveness and develop the potential of the tourism supply chain in the EUSAIR Area, sustainability needs to be strongly linked to commercial perspectives. This is the reason why an integrated tourism offer has to be created, here defined as that which is explicitly linked, through a participatory community, to the localities in which it takes place and which has clear connections with Regional resources, activities, products, production and service industries. By improving the existing and delivering new high value-added products and services, a “heritage economy” approach to integrated tourism is proposed, which emphasizes the importance of local identity, the strategic valorization of resources and place, and the importance of extra-local forces in enabling local activities. Then, a series of actions are here proposed, aiming to: • Action 2.1 - Develop advanced tourism products and thematic itineraries on an EUSAIR-Area scale, as key pull factors motivating tourists to visit it. The joint capitalization of cultural heritage, natural and maritime heritage, and agri-food heritage is here proposed as one of the main leverages for both encouraging intra-Regional flows, and motivating extra-Regional tourists to visit it, while differentiating the EUSAIR destination from competing places. On the basis of the EUSAIR Area-wide resource audit, as well as in coherence with the main trends in world-wide tourism previously discussed, the suggested tourism products and thematic itineraries should be particularly based on the: a) Establishment of a network that will direct visitors to the various UNESCO sites across the Region, in coherence with the Ljubljana Process; b) Establishment of a network that will direct visitors to the various Natural Parks and Reserves across the Region, in coherence with the EU 2020 biodiversity strategy and the Natura 2000 Network; c) Enhancement of the yachting sector, by defining common procedures for berth allocation, by delivering joint visas and nautical licenses within the EUSAIR Region, as well as by optimizing port interfaces, infrastructures and procedures/operations; d) Development of an EUSAIR destination Card, which should include a detailed Regional map, unlimited use of the public transport system, free entrance to best destination attractions, discounts for Intra-Regional mobility, and special offers for buying EUSAIR agri-foodproducts.

54 Such linkages, even on the base of the available tourism offer data storage as described in Action 1.4, could package destination attractions together, thereby enhancing competitiveness by offering varied experiences and activities, greater potential for customized products that meet tourists’ individual needs and interests, and enhanced flexibility in response to changing tourist tastes and demand. A parallel and integrative diversification of tourism products could also encourage “alternative” products that potentially are more socially and environmentally sustainable for the EUSAIR destination, such as because they encourage appreciation of its special character, or involve businesses that are locally owned, or because the products are small-scale in terms of tourist numbers and infrastructure requirements. With this regard, enhancement of itineraries linked to religious tourism, locations of the First and Second World War, as well as a tourism offer addressing specific targets, such as seniors, youth or people with disabilities, would be of interest. Moreover, with experiences seen as central to tourist choice and satisfaction, a higher profile for the EUSAIR Area tourism offer may be ensured by interconnecting, through synergistic relationships and cooperative arrangements, existing niches of excellence, in particular with regard to luxury, culture and the agri-food. The promotion of joint coastal and rural tourism packages is finally proposed, in order to make tourists experiencing the EUSAIR destination from the water and attract them to the hinterland. The development of tourism products and itineraries in the EUSAIR destination may be complex due to the amalgam of elements, such as physical plant (including natural features and weather), the input of services, hospitality, choices for tourists, tourist involvement in the delivery of services, and also experiences associated with them. Moreover, among these elements some are more tangible and others are more intangible, the latter of which include, for example, the representations and images of primary tourism products, which the tourism industry or other communication channels may promote, as well as the cultural and symbolic meanings tourists associate with these products. This is the reason why a broad conceptual framework identifying elements, connections and processes related to the proposed development of advanced tourism products and thematic itineraries is presented in Figure 2. An integrated tourism offer, and notably the balance between parallel and integrative diversification, are the key concern here, so they are at the diagram’s center. However, in order to be properly understood, the advanced tourism product features have to be considered in relation to other associated elements and processes,A European which strategy for are the tourism sector product in the Adriatic supply and Ionian as Region well (EUSAIR): as tourist competitiveness, demand internationalization and product and sustainability use. Figure 2 – The proposed framework for the development of advanced tourism products and thematic Figure itineraries2 – The proposed framework for the development of advanced tourism products and thematic itineraries

Source: TourismAdapted Management from Benur, A.M., & Bramwell, S.J. (2015). Tourism product development and product diversification in Source: Adapted from Benur, A.M., & Bramwell, S.J. (2015). Tourism product development and product diversification in destinations. destinations. Tourism Management,, 50, 213 – 224. 50, 213 – 224. 55

Tourism integrated product supply is described on the left side of Figure 2, with this substantially affected by the legacy of physical, environmental and socio-cultural characteristics or attributes of the Region. Market forces are also vitally important, notably through destination governance or businesses making commercial decisions about products based on current and potential future levels of demand. The character of that supply can also be influenced by Regional civil society and interest groups, according to their views about tourism's impacts and desirable forms of development, including affecting tourism.

Tourist demand for tourism products and the tourist uses of those products occupy the right side of Figure 2. Tourist demand reflects interactions with tourist needs and motivations, including tourists' desires to build their wellbeing in ways which may be consonant with their expectations, images, experiences and eventual previous level of satisfaction with the destination products. There are also important influences on tourism product processes from the ways in which tourists decide to use the products that destination offers, including how they combine the mix of products.

All meaning that what tourists are looking for is largely the experiences provided by destination attributes and infrastructure, rather than attributes and infrastructure in themselves. The two-way arrows linking integrated tourism offer, tourism product supply, and tourist demand and product use suggest that relationships described in Figure 2 are fluid, dialectically interrelated, and

59 Tourism integrated product supply is described on the left side of Figure 2, with this substantially affected by the legacy of physical, environmental and socio-cultural characteristics or attributes of the Region. Market forces are also vitally important, notably through destination governance or businesses making commercial decisions about products based on current and potential future levels of demand. The character of that supply can also be influenced by Regional civil society and interest groups, according to their views about tourism’s impacts and desirable forms of development, including affecting tourism. Tourist demand for tourism products and the tourist uses of those products occupy the right side of Figure 2. Tourist demand reflects interactions with tourist needs and motivations, including tourists’ desires to build their wellbeing in ways which may be consonant with their expectations, images, experiences and eventual previous level of satisfaction with the destination products. There are also important influences on tourism product processes from the ways in which tourists decide to use the products that destination offers, including how they combine the mix ofproducts. All meaning that what tourists are looking for is largely the experiences provided by destination attributes and infrastructure, rather than attributes and infrastructure in themselves. The two-way arrows linking integrated tourism offer, tourism product supply, and tourist demand and product use suggest that relationships described in Figure 2 are fluid, dialectically interrelated, and mutually constituted, so that each embodies its reciprocal relationships with the others, and they should not be seen as rigidly divided or as binaries. Tourist demand and consumption experiences, for example, are inseparable from tourism production and supply, as they are constantly feeding back on one another, thereby influencing the development of tourism products and their appeal to customers. In all parts of the framework, the elements and their interconnections also bring together the varied tangible and intangible elements of tourism products. For example, it is here argued that, while tourism products in the EUSAIR destination have to be based on a complex set of physical, environmental and socio-cultural attributes and infrastructure, the product images and their meanings are also highly important. This is the reason why key features and processes in EUSAIR destination offer include spatial synergies between the tourism products, and the presence and types of thematic synergies between the products. The latter emerge between diversified tourism products in the Region based on their thematic compatibility and complementarity, that is to say on the degree to which businesses may interchange customers, with that often based on the linkages of appeal and symbolic meanings between the attractions. Moreover, tourism products may form spatial clusters, and their co-located agglomeration may have an enhanced appeal for tourists, by assembling a narrative structure that will lead visitors through thematically interrelated sub-attractions and create business opportunities and extend length of stay. Then, the combination of spatial proximity among products and attractions, combined with synergies of appeal between them, can result in multiplier and externality effects, increasing likelihood that tourists who visit one attraction will visit others, and accelerating opportunities for new forms of economic wealth by creating a demand for a host of complementary activities which in turn generate their own growth effects.

• Action 2.2 - Develop a joint destination brand, based on the EUSAIR Region’s common values, core resources, and identity, which could be able to posit the Area as a whole and make it attractive in the eyes of visitors, residents and stakeholders. In particular, this Action supports the creation of a name, symbol, logo, word mark or other graphic that readily identifies and differentiates the Region as a proper and unified destination, while consistently conveying the expectation of a memorable travel experience and reinforcing the emotional connection between the visitor and the destination itself. In order to be effective, the joint destination branding process will have to comprise the assessment of three key elements: a) brand identity, which is the image aspired to in the marketplace for the destination itself (with preparatory steps requiring targeting global travel, as well as the portfolio analysis of value-added products and services); b) brand image, through

56 the measurement of all objective knowledge, impressions, prejudice, imaginations, and emotional thoughts an individual or group might have of the EUSAIR Area as a tourism destination; c) brand positioning, by identifying those attributes allowing the destination to maintain a favorably distinctive place in current and potential target markets, in comparison with close competitors.

• Action 2.3 - Define a coherent on-line and off line marketing and communication plan, for the promotion and commercialization of integrated tourism products and itineraries, in both established and emerging markets. Improving the attractiveness of the EUSAIR destination is needed for increased tourist flows, in order to allow tourists to discover its rich heritage, beyond the mainstream attractions of Europe. With this regard, preparatory steps require: a) the identification and selection of target tourist groups, both actual and potential; b) the identification and selection of the key messages to be conveyed, in order to ascertain and influence targets’ wishes, needs, motivations, likes and dislikes, on regional, national and international levels; c) the adaptation of EUSAIR integrated tourist products in view of achieving optimal tourist satisfaction thereby fulfilling tourism supply chain operators’ objectives.

The enhancement of awareness towards the Region as a whole destination and the joint promotion of its tourism products and itineraries should be particularly based on the participation, as a proper destination and under the same brand (see Action 2.2), at major international events or large-scale tourism fairs and exhibitions, as well as on the organization of edu-tour for writers, artists, journalist and opinion-leaders, led by expert EUSAIR ambassadors who know the Area and the nuances of its rich and diversified heritage. Moreover, the development of on-line and off-line international campaigns, both providing information about the tourist offer and promoting excellences in the Region is here suggested, coupling with the development of on-line and off-line intra-Regional campaigns, targeting both residents and operators in the field, in order to make citizens sensitive of potentialities related to tourism development, as well as to foster the exchange of good practices. With this regard, and in coherence with Action 4.3 and 4.4, the representation the EUSAIR Area’s cruise ports is highly recommended, even with the aim to make tourists experiencing the EUSAIR destination from the water and attract them to the hinterland. 6.3 - Line 3: Bring about a flexible interface management system Exchange of information, use of synergies and coordination of action are here supposed to positively affect the EUSAIR destination development, and are considered to be the building blocks for innovation and a versatile competitive base. In principle, however, one cannot assume that a-priori the EUSAIR destination’s actors are willing to work together: in fact, transaction costs and the existence or non- existence of social ties have to be taken in consideration. This is the reason why a flexible interface management system, able to foster responsibility, cooperation and exchange of good practices among the amalgam of stakeholders associated with tourism itself and tourism-related industries, is here proposed. This, in order to identify and articulate collective interests, establish links as well as coordinate negotiations, develop joint strategies and action, carry on a series of intervention relying on a form of self-governance. A proper shift from place management to destination management should result, from the accomplishment of the following actions aiming to: • Action 3.1 - Create an EUSAIR Destination Management Organization (DMO), which may act as organizer and facilitator for tourism marketing and development in the Region, while reflecting the expectations of all groups within the destination by developing, managing and promoting the EUSAIR destination in a manner that is sensitive to both the needs of quite often disparate tourism stakeholders and the future needs of the marketplace. However, representing stakeholders’ interests and promoting networking capability (i.e. the ability to interact and collaborate effectively with stakeholders in the destination, which includes developing and sustaining inter-organizational relationships) within the Region, are just two of the main functions the DMO should be enrolled in. In fact, to better serve the interests of the tourism industry in the destination, the EUSAIR DMO

57 should cover the following main areas of function: a) Information provider, making businesses aware of what opportunities are available, being a contact point for people who want to visit the Area and drawing residents’ attention to tourism; b) Community brand builder, with the aim to make the destination attractive and competitive, by performing the operational activities (marketing, service provision, product development, etc.) in a professional manner and by assisting external organizations to bring visitors to the destination. In these terms, the DMO should even act as the “marketing representative” of the Area, promoting and positioning the destination as one place for potential visitors over a larger geographical range as well as at a bigger business scale than an individual business can afford to do; c) Organizer of marketing campaigns, with a primary interest in understanding what marketing activities are viable for the local destination, how the constituents proceed with the marketing activities, which marketing activities should be at the decision-making table and, in particular, how to include as many partners as possible. Moreover, this role should include an ongoing search for good marketing and promotion ideas, and the welcoming and sustaining of participation by community-based, destination-based and constituency-based organizations and individuals; d) Convener and facilitator for collaborative community problem solving, acting as a source of fairness and encouragement, and a resource for all those who might need it in the collaborative process. The DMO will also be the liaison between national tourism industries and governments, advocating the establishment of a joint, stable and simplified legislative and fiscal framework in the industry, as well as between the visitor and the community, in order to convey information back and forth, with the aim to empower residents while keeping the visitors satisfied. e) Catalyst of collaborative initiative, by stimulating discussion with a long-term strategy in mind or eventually providing supporting and matching funds. In these terms, the EUSAIR DMO should be involved in an early and clear commitment to participate in community problem solving that begins with an initial discussion of issues, using its influence and resource base to make the collaborative initiative “real” in the minds of various other potential partners who may be waiting for leadership before creating commitment to an action agenda; f) Partner and team builder, by creating the interest for the tourism and tourism-related industries to work together, or making sure that the empowering partners share risks, responsibilities, resources and rewards in collaborative managerial efforts so that they establish mutually respectful, trusting relationships, take the time to understand each other’s motivations and expectations, and state problems in a manner that provides opportunities for all the others involved in the process, while guaranteeing the quality of the management activities and the likely outcomes of such activities; g) Network manager, by coordinating the diverse group of industry stakeholders in the EUSAIR Area. In fact, in the domain of management, it was widely agreed that networks in which individual businesses that consciously collaborate and cooperate with one another are more effective at providing a complex array of community-based services than the same organizations are able to do when they go their own ways. In other words, such networks are called to be vehicles that provide value to local community in ways that could not have been achieved through uncoordinated provision of services by fragmented and autonomous businesses; h) Human resource developer, which encourages and stimulates education and training programs designed to meet the specific needs of the tourism and hospitality industries. Although quality education systems are a fundamental element of the facilitating resources, education programs are

58 essential in order to specifically address the skills required by employers in tourism and hospitality, just as other industries or economic sectors have cooperated with educational institutions to develop graduate skills in other fields.

Through a clear understanding of its roles and functions in general and of its working relationship with the tourism and tourism-related industries, the EUSAIR DMO will finally act a proper resource steward. This, stressing the importance, indeed the obligation, that destination managers have to adopt a caring mentality with respect to the resources that make up the destination, involving effective maintenance of those resources and a careful nurturing of those that are particularly vulnerable to damage that may be caused by tourism. • Action 3.2 - Institute an EUSAIR Observatory on Tourism, focusing on joining forces among university departments, research centers, innovation and technology transfer networks in the Region, together with the business community, in order to provide policy makers, managers and operators with a framework for regular gathering, analysis and communication of information related to tourism in the Area. Then, a systematic application of evaluation and information management techniques is suggested, as the key supporting tool for the formulation and implementation of responsible tourism policies, strategies, plans and managerial processes.

In detail, the here proposed EUSAIR Observatory on Tourism main functions are identified in: a) regularly monitoring, analyzing, reporting and getting feedback from the sector stakeholders on key issues and latest trends, thus matching supply and demand in specific labor skills; b) harmonizing national statistics on tourism for more detailed, comparable and comprehensive data; c) measuring the impact of the sector on Regional economy, thus providing transparent evidence of performance (where a broader approach to performance is needed, considering financial indicators like profitability, non-financial operational indicators like product quality, and organizational effectiveness including conflicting goals and diverging stakeholder views); d) realizing new researches and studies about tourism in the Area, which should include (but not be limited to) studies on the carrying capacity of the call ports, for the application of sustainability criteria and the decongestion of cruise ports; e) organizing forum and seminars, as well as contribute to the update of the EUSAIR Area-wide online platform described at Action 1.4, in order to identify and disseminate good practices, while fostering information transfer. • Action 3.3 – Define a joint framework for performance measurement, tracking and reporting, which could allow to objectively define to what extent destination marketing and managerial activities, under the coordination of the suggested DMO, are actually working over the long-term. In fact, it is widely recognized that policy-makers need better access to high-quality information, to use as evidence for policies aiming to improve the quality of tourism offer and to reduce its potentially detrimental impacts, while the wider public – including citizens, business, and academia – needs regular, timely and credible information in order to make conscious decisions and to be empowered to make changes. Then, the provision of a joint framework, which may help each individual tourism operator defining what to measure and how to measure it is here suggested.

The aim is to promote the use of shared indicators to measure sustainable development at a destination level, to train tourism companies to evaluate and report their performances, to reduce unnecessary duplication of data, even for the sake of comparability and destination improvement, and to increase public access to information. To foster the development of global standards in tourism data collection and statistics, the WTO manual Tourism to the year 2000 and beyond may be a reference point, due to its ability to provide a comprehensive guide to a range of data issues, including: visitor surveys, measuring outbound tourism, measuring domestic tourism, describing tourism supply, and measuring economic costs and benefits of tourism. While length of stay may be another key performance metric for destination competitiveness,

59 research into market performance should be spread across other additional themes, besides those of arrivals and presences in the EUSAIR destination, like (but not limited to) those of: the ratio of DMO marketing spend and spending by visitors from target markets, visitor spending, tourism expenditure growth and employment growth, return on investment, DMO technical efficiency (even in terms of marketing communication effectiveness, and branding performance), social and environmental performance. With this regard, a strong cooperation with the EUSAIR Observatory on Tourism described in Action 3.2 is needed. Finally, Action 3.3 should include the establishment of an EUSAIR Charter to encourage responsible tourism practices in the Region, with a set of principles and guidelines to be easily taken up by the sector actors, and especially SMEs. This, even through the implementation of the European Tourism Indicator System - ETIS for Sustainable Management and the application of the EU Eco- Management and Audit Scheme (EMAS). In these terms, the joint framework here suggested will effectively relate the issue of accountability to that of sustainable competitiveness, even start assessing the synergies and critical relationships which may exist between businesses and the DMO. 6.4 - Line 4: Increase physical and informative accessibility to the Area Given the role, recognized by European Institutions, of tourism in strengthening the feeling of European citizenship by encouraging contacts and exchanges between people, regardless of differences in language, culture or traditions, line of intervention 4 is specifically focused on the freedom of movement and the right to travel. This, by adjusting tourism products and services in the EUSAIR Area to the needs of both residents and visitors (especially if senior groups, young people and schools, disabled people, families with low income), thus seeing tourism as a force for the common good. Under an informative point of view, a stronger engagement between the destination and the consumer is here proposed, built from a high-quality exchange of information and timely communication. Under a physical point of view, the willingness and ability of EUSAIR Partners to support destination attractiveness and foster participation in tourism is stressed. Then, for a joint increase of both physical and informative accessibility to the Area, as well as internal mobility, the following actions are suggested: • Action 4.1 - Develop a common destination web portal. The declining effectiveness of traditional media and the wider use by consumers of information and communication technologies has radically changed the relationship between the tourism industry and its customer base, by having a profound effect on information dissemination in the tourism domain. In particular, the shift from broad based marketing to well designed and highly targeted positioning is needed, in order to afford EUSAIR destination the opportunity to engage customers in active communication, to build a direct and meaningful dialogue with potential visitors in source markets and, through this dialogue, to build strong relationships and customer loyalty. Then, the development of a common destination web portal which should be able to overcome the clutter that is inherent in traditional mass- media communications and eliminate the need for multi- layer contacts between consumers and suppliers is here proposed. In particular, the destination portal here defined should act as: a) Virtual information space, that is to say as one major ubiquitous information resource about EUSAIR destination’s tourism attractions, products and services for tourists; b) Virtual communication space, thus allowing marketing efforts to be targeted, persuasive information to be transmitted, participative decision making to be fostered, and commitment and loyalty to be encouraged; c) Virtual transaction space, working as an electronic marketplace, while assisting potential visitors with hotel availability, providing transportation and other tourist services, with all the associated financial transactions being conducted through it.

60 • Action 4.2 - Set up a network of Tourist Information Centers (TICs). The advent of on-line and cloud access through mobile devices has led to a reconsideration of the traditional role of Tourist Information Centers; however, they can still respond to demands for travel information by the adoption of the O2O business model, according to which consumers are firstly attracted and make payments by way of online platform, and then visit real stores to gain the purchased products. In these terms, the aim of Action 4.2 is to provide a more realistic, personalized and destination-based travel information about the EUSAIR destination to visitors who previously obtained knowledge from a variety of online channels. In fact, if from one side a wealth of information is accessible anywhere and at any time these days, not everyone is able to find what desired. Moreover, scientific managerial literature20 has provided supportive evidence that a large proportion of tourists express significant dissatisfaction and confusion about travel information obtained from diverse Internet sources. With this regard, tourists are willing to use the classic knowledge brokers to check the quality and reliability of travel information they already obtained by using online sources. Then, the mission of the network of Tourist Information Centers here proposed is the direct and tailored provision of travel information about the EUSAIR destination and its specific attractions, which visitors may find helpful for making their optimaldecisions. These tourism facilities are also called to play a key role in tourism promotion, encouraging tourists to stay for a longer period of time and spend more money within the EUSAIR territories, in determining tourists’ first impressions of the destination, and ultimately in improving the quality of their experiences, by avoiding potential dissatisfaction and confusion about travel information obtained from diverse Internet sources.However, in order to provide a successful and cost-efficient travel information to tourists, as well as to increase TICs visit demand and user satisfaction, a better understanding of what types of travel information are searched by tourists is needed. This is the reason why an active interaction with the EUSAIR Observatory on Tourism described in Action 3.2, as well as the use of social network sites (where users effortlessly upload their travel experiences and photos, as well as broadcast real-time content) by tourist information centers operators are recommended.

• Action 4.3 - Make the destination easier to be reached. The aim of Action 4.3 is to boost competitiveness by improving the connectivity between the EUSAIR destination and the main international source markets. This, due to the emerge of new countries attracting increasing numbers of tourists and in coherence with the South East Europe 2020 Strategy, which sets ambitious targets, including decrease of the cost of transport, and improvement of transport infrastructure utilization rates. As the needs of senior groups and disable people, as well as those of young people and families with low income are here recognized of great interest for adjusting tourism products and services in the Area, two are the main topics the present Action should be focused on: a) the creation of accessible and safe marinas, mainly for people with reduced mobility, in particular in the field of leisure boating; and b) the definition of commercial agreements with low-cost air companies, in order to increase flight connections and airport activity. In terms of expected outcomes, as seniors and young people have been identified by the European Commission as groups that can travel easily during the low season, the reinforcement of their contribution to tourism by making the EUSAIR area a more accessible tourist destination may help overcome the challenge of seasonality, with a significant contribution to Regional growth and employment.

• Action 4.4 - Increase destination mobility. The aim of Action 4.4 is to improve intermodal connections within the EUSAIR Region, by combining the strengths of various transportation, reducing dependence on the automobile as the major mode of ground transport, and increasing use of public transport. In fact, this would hopefully allow to encourage intra-Regional tourism flows, thus increasing growth and jobs in the Area, while taking in consideration environmental impacts 20 See Wang, Y., Park, S., & Fesenmaier, D. R. (2012). The role of smartphones in mediating the touristic experience. Jour- nal of Travel Research, 51(4), 371-387. 61 of tourism mobility. In order to reach these goals, the implementation of intra-regional railway packages, even in coherence with the Trans-European Transport Network (TEN-T), and its integration with EuroVelo routes for the promotion of cycle-tourism, are here suggested.

Moreover, the design of possible alternative sea routes, even by boosting short-sea shipping capacity and cross-border ferry connectivity, is needed. This may happen through a network of innovative coastal facilities and ancient maritime routes, following the example of the Odyssea project, as well as through the creation of an accessible maritime transport database, matched with feasibility studies and market analyses. Finally, the establishment of a dialogue amongst stakeholders on charter flight connections, with the aim to propose a more flexible and customizable tourism offer is here suggested, and the development of a joint sustainable mobility plan, with a particular regard to air and water quality, are recommended.

62 7 - An overview of tourism in the Eusair Area: National Strategies

7.1 - Introduction

With the aim to propose a shared strategy for strengthening territorial cooperation in tourism, and to build the reference frame for tourism development in the EUSAIR Area, a preliminary analysis of national tourism strategies has been led for each of the Participating Countries. For this purpose, different kinds of document have been taken in consideration, including planning instruments like general and sectorial programs, development and environmental plans, and feasibility studies. The process followed a path divided into three phases: a) Summary of the main goals as emerged from the analysis of each national strategy, taking in consideration also the type of instruments suggested for their realization, as well as their field of interest;

b) Identification of shared goals in different strategies, in order to identify which objectives are the most common and which the less considered in the analyzed instruments;

c) Analysis of the compatibility among the various strategies and instruments, aimed to assess the overall consistence of the plans and programs involving the EUSAIR Region, and verify the possibility to create synergy among them, in order to suggest a shared strategic plan as a coordination tool for Regional tourism development.

At the end of this process, emerges how the leading role of tourism in the development of national economies and societies is widely recognized and encouraged to through direct and indirect forms of support. In particular, the activation of broad synergies with several sectors, such as culture, sports, education, and gastronomy is jointly called for in the analyzed documents, where common goals are focused on four main topics: “Environment protection and infrastructure network”, “Cultural heritage”, “Agro-food production and rural tourism” and “Social issues”. In terms of strategic approach, this choice is connected to the need for differentiation in product development, which is clearly stated by all Participating countries: the aim is to offer an all-year attractive range of products based on authenticity and emotions, through the creation of portfolios that go beyond the offer of sun and sand; the challenge is to improve and coordinate a rich national offer, and to carry different tourist products out all simultaneously, in a complementarymanner. In the same way, the development of integrated tourism territorial systems (which properly become tourism clusters in the case of Montenegro and Serbia), where different territories and sectors are interconnected in a coherent tourist offer, is a widely-recognized priority. In this process, interventions at a destination level are commonly called, as well as an on-going stakeholder engagement in long-term tourism planning and implementation. National DMOs, in particular, are seen as the most effective instruments for leading participatory process in tourism development strategies, as well as for defining a proper national positioning, on the basis of their knowledge of tourism and tourist spending. This, even if at the national level, tourism as an industry in the various Participating Countries falls under the jurisdiction of different ministries: for example, in Greece and Croatia there are separate Ministry of Tourism, while in Bosnia-Herzegovina, Albania and Montenegro tourism policy is created in ministries where the tourism industry is combined with other sectors such as culture, youth and sport, environment and sustainable development, while in Slovenia and Serbia tourism is managed by the Department of Tourism and Hospitality Management within the Ministry of Economy and Energy, Regional Development and Administration, Technology and Finance. In general, these institutions are engaged in performing activities such as: control and regulation of tourism sector, collecting relevant

63 sector information, preparation of national strategy for tourism development, developing a national tourism advertising campaign and defining all instruments of tourism policy (these, divided into four main groups: legal regulations, administrative instruments, economic instruments, contracts and agreements). All countries, with the exception and Albania - whose main goal is a leading position in the Balkans- are developing their marketing strategies in a global-market perspective, stressing on the experiential dimension. However, with this regard different nuances are registered, as Montenegro puts an accent on the “cleanness” of places, the Republic of Slovenia on recreational activities, Greece on a pleasant atmosphere, while the Republic of Serbia considers typical products as a representation of its “warm hospitality”. The presence of an unspoilt natural heritage is also widely recognized as an opportunity to pursue a tourism development model based on the enhancement of local resources. From one side, the need to protect the environmental uniqueness of each area is expressed, with the aim to keep and increase tourist attractiveness, while from the other a series of lines of interventions are designed, sharing the common goal to ensure a better quality of life to locals. The assumption being that quality of life is crucial to create the basic conditions for tourism development as well as to ensure safety, security and comfort to visitors. In fact, while promoting integrated tourist packages and itineraries under the umbrella of unified national images, EUSAIR partners are committed to assuring that tourism catalyzes and generates a smart, sustainable, and balanced growth and that the benefits of tourism development are not only maximized, but broadly distributed socially and geographically. In these terms, the issue of sustainability becomes the common denominator to integrate different typologies of tourism like ecotourism, cultural tourism, and rural tourism, if not a “state of mind” inextricably intertwined with all aspects of the strategy, as in the case of Montenegro, Serbia, Slovenia and Croatia. Then, tourism products to which EUSAIR countries dedicate special importance are the following: • Marine tourism, which includes activities such as swimming, sunbathing, water sports and more and where a developed tourist infrastructure is set in motion;

• Mountain tourism, covering winter sports, active holidays, and cycling;

• Cultural tourism, which includes visits to cultural and historic sites, attendance at events and festivals or visiting museums;

• MICE tourism, which covers journeys arising because of work responsibilities or

• activities related to work like corporate meetings and incentives trips;

• Rural tourism, involving visiting rural areas, tasting local gastronomy, or enjoying traditional crafts, hospitality and specific architecture of the villages;

• Health and spa tourism, which includes treatments to improve the health, stay spas, using various massage techniques and more, and which leverages the lower the costs of health services and the availability of thermal mineral waters.

64 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

EUSAIR Countries additionally create and develop other types of tourism such as: sports, golf,

active, eco, hunting, religious, wine, lake, river, where a review is provided in Table 1. EUSAIR Countries additionally create and develop other types of tourism such as: sports, golf, active, eco, hunting, religious, wine, lake, river, where a review is provided in Table 1. TableTable 1 –1– Review Review of of NationalNational tourism tourism products products of EUSAIR of EUSAIR Participating Participating Countries Countries

Albania Albania Cultural tourism; Rural tourism; Nature tourism; Sun, Sea and Sand tourism Bosnia-Herzegovina Cultural tourism; Rural tourism; Nature tourism; Sun, Sea and Sand tourism Health and Spa tourism; Ecotourism; Ski and Mountain tourism; Cultural and Bosnia-Herzegovina Health and Spa tourism; Ecotourism; Ski and Mountain tourism; Cultural and Religious tourism; Rural and Agro tourism; Adventure tourism Religious tourism; Rural and Agro tourism; Adventure tourism Croatia Nautical and Yacht tourism; Bike tourism; Agro tourism; Rural and Mountain Croatia tourism;Nautical Cultural and Yachttourism; tourism; Adventure Bike tourism; and Sport Agro tourism; tourism; RuralEcotourism; and Mountain Golf tourism; Cultural tourism;tourism, Adventure Health andtourism Sport tourism; Ecotourism; Golf Greece tourism, Health tourism Greece Nautical tourism; City break; Medical tourism; Cultural and Religious Nautical tourism; City break;tourism; Medical MICEtourism; Cultural and Religious tourism; Italy MICE Cultural and Religious tourism; Rural tourism; Agro-food tourism; Wellness Italy Cultural and Religious tourism;and Spa Rural tourism tourism; Agro-food tourism; Wellness

and Spa tourism Montenegro Nautical tourism and water sports; Mountain tourism; Golf tourism; Montenegro Wellness andNautical Spa tourism; tourism MICE; and water Agro sports; tourism; Mountain Wilderness tourism; tourism; Golf tourism; Cultural Wellness and Spa tourism;and MICE;Religious Agro tourism tourism; Wilderness tourism; Cultural Serbia and Religious tourism City breaks; Cruise tourism; MICE; Wellness and Spa tourism; Mountains and Serbia Citylakes breaks; tourism; Cruise Touring; tourism; Events; MICE; WellnessRural tourism; and Spa Special tourism; interests Mountains and Slovenia lakes tourism; Touring; Events; Rural tourism; Special interests Health tourism; Nature tourism; MICE; Agro tourism; Cultural tourism; Slovenia Health tourism; Nature tourism; MICE; Agro tourism; Cultural tourism; Entertainment tourism and Gaming; Cruise tourism Entertainment tourism and Gaming; Cruise tourism

Capacity building and a constant quality advancement, the development of a legal and institutional framework for transparency and simplification, introduction and certification of quality standards and infrastructure development (both in terms of accessibility and accommodation) are a common concernCapacity in order building to add and value a constant to the tourism quality value advancement, chain. Coupled the development to this, strong ofconsideration a legal and institutionalis paid frameworkto Information for andtransparency Communications and simplification, Technologies, introduction generally seen and as certificationthe backbones of of quality national standards tourist and marketing activities, with perspectives ranging from that of Albania – which considers ICTs as a proper infrastructureinfrastructure – development to that of Greece (both and in Serbia, terms where of accessibi they arelity mainly and seen accommodation) an instruments arefor online a common concernmarketing in andorder the to development add value to of thea more tourism efficient value banking chain. system.Coupled Finally, to this, some strong differences consideration among isthe paid EUSAIR Partners may be revealed in terms of transportation: in fact, if both Montenegro and Albania toprioritize Information road mobilityand Communications (combined with Technologies, low-cost flight generally connections seen in as the the first backbones case, and of with national railways tourist marketingin the second acti one),vities, all withthe other perspectives Participating ranging Countries from consider that of the Albania development – which of considersflight routes ICTs and as a propermarina infrastructurecapacity the most – toeffective that of Greeceways for andconnecting Serbia, their where regions. they are mainly seen an instruments for onlinePrivate marketing investors and are eventhe developmentcalled to play anof importanta more efficient role in tourism banking development. system. Finally, So, their some initiative differences is strongly encouraged, and placed in an overall reference framework which gives adequate financial amongsupport the with EUSAIR particular Partners regard may - for be what revealed is about in Albania, terms of Croatia transportation: and Montenegro in fact, in if particular both Montenegro - to andthe fieldAlbania of greenfieldprioritize roadinvestments mobility (mainly (combined in terms with of lowwastewater,-cost flight solid connections waste management, in the first as wellcase, as and energy efficiency and supply), and the development of Private-Public partnerships, as suggested in the withSerbian railways and Bosnian in the strategic second documents.one), all the other Participating Countries consider the development of flight routes and marina capacity the most effective ways for connecting their regions.

Private investors are even called to play an important role in tourism development. So, their initiative is strongly encouraged, and placed in an overall reference framework which gives adequate65 financial support with particular regard - for what is about Albania, Croatia and Montenegro in particular - to the field of greenfield investments (mainly in terms of wastewater, solid waste management, as well as energy efficiency and supply), and the development of Private-Public partnerships, as suggested in the Serbian and Bosnian strategic documents.

70 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

7.2 - Albania

Tourism development strategy in Albania relies on the principles of: a) sustainable growth, which is seen as the vehicle for national development and to future European accession; b) orientation toward the market, by quality improvement and focus on what is unique in the country; c) 7.2 - Albania diversification, by the development of an integrated tourist offer where nature, traditional and biologic Tourism development strategy in Albania relies on the principles of: a) sustainable growth, which is products, as well as cultural and sports activities are coordinated and improved. This, with the aim to seen as the vehicle for national development and to future European accession; b) orientation toward positionthe market, the cou byntry quality as distinct improvement from its neighbors and focus in on the what Balkans, is unique to entice in the tourist country; to spend c) diversification, more days in theby thearea development and to make of them an integrated fully experience tourist theoffer local where lifestyle, nature, by traditionaladequately andenhancing biologic all products, regional as potentialswell as culturalunder the and national sports brandactivities “Discover are coordinated Albania”, andas well improved. as by establishing This, with athe network aim to ofposition tourism the country as distinct from its neighbors in the Balkans, to entice tourist to spend more days in the area promotionand to make offices, them that fully could experience promote touristthe local values lifestyle, and byresources adequately in the enhancing targeted markets.all regional potentials under the national brand “Discover Albania”, as well as by establishing a network of tourism promotion offices,In particular, that could within promote the National tourist Strategy values andfor Developmentresources in the and targeted Integration markets. (2014 - 2020), an idea of tourismIn particular, that involve withins and the Nationalconnects Strategydifferent for territories Development (coast, and rural Integration areas, mountains) (2014 - 2020), and an sectors idea of (sport,tourism culture, that involves education and connects and production), different territories while acting (coast, as rural an instrumentareas, mountains) for and environmental sectors (sport, protection,culture, education is one of theand two production), pillars on while which acting the enhancement as an instrument of national for environmental competitiveness protection, relies is on, one of the two pillars on which the enhancement of national competitiveness relies on, where agriculture is wherethe other agriculture one. In isthese the terms,other one.typical In productsthese terms, are seentypical as ableproducts to add are value seen to astourist able experiences, to add value while to touristthe link experiences, between tourism, while the the link preservation between tourism,of natural the and preservation cultural heritages of natural and urbanand cultural requalification heritages are andconsidered urban requalification as an important are sourceconsidered for economic as an important growth. This source is the for reason economic why, growth.in terms Thisof marketing is the positioning21, Albania’s strategic goal is to both22 attract educated, independent travelers and specialized reason why, in terms of marketing positioning , Albania’s strategic goal is to both attract educated, group travelers, who wish to experience the cultural heritage of the countries they visit as part of their independentgrowing engagement travelers and with, specialized and desire group for, directtravelers, access who to allwish authentic to experience aspects the of thecult destinationural heritage - what of thethey countries define they “the visitgeotourist” as part (seeof their Figure growing 3). engagement with, and desire for, direct access to all authentic aspects of the destination - what they define “the geotourist” (see Figure 3). Figure 3 – The “geotourism” framework Figure 3 – The “geotourism” framework

Source: Albania Culture Marketing Strategy (2010). Source: Albania Culture Marketing Strategy (2010). 21 The whole national strategy is focused on two main kinds of target markets: first of all, those at a regional level (like Kosovo and Macedonia and, secondarily, Montenegro and Serbia); then, in an international perspective, the upper-middle 22 income individuals from Europe (namely, from Greece, Italy, Germany and the United Kingdom) and Russia. The whole national strategy is focused on two main kinds of target markets: first of all, those at a regional level (like Kosovo and Macedonia and, secondarily, Montenegro and Serbia); then, in an international perspective, the upper-middle income individuals from Europe (namely, from Greece, Italy, Germany and the United Kingdom) and Russia. 66

71 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

ThisThis is isalso also the the reason reason why, why, besides besides the Sun, the Sun,sea and sea sand and offer, sand offer,Albania Albania sets three sets additional three additional scenarios scenariosfor tourism for tourismdevelopment: development: Cultural Cultural tourism, tourism, Rural tourism, Rural tourism, and Nature and Nature tourism. tourism. In order In orderto create to a high quality, sustainable and environmentally friendly tourism all around the year, able to unlock the create a high quality, sustainable and environmentally friendly tourism all around the year, able to still largely unexploited national potential, the approach is to identify opportunities for integration and unlocksynergy the among still largely each scenario. unexploited Coherently, national the potential, core concepts the approach of the national is to identify tourism opportunities offer are related for to: integration and synergy among each scenario. Coherently, the core concepts of the national tourism � offer• areUNESCO related Worldto: Heritage Sites; � • historicalUNESCO places, World fortresses, Heritage and Sites; artworks; � • placeshistorical of worship places, and fortresses, pilgrimage, and thus artworks; straddling the border between Europe’s Roman Catholic West placesand the of Orthodox worship and East; pilgrimage, thus straddling the border between Europe’s Roman � • unspoiltCatholic mountain West terrainsand the Orthodoxand mountain East; lakes, where to rafting, fishing andhiking; � • folkloreunspoilt festivals mountain and traditional terrains andhospitality; mountain lakes, where to rafting, fishing and hiking; • � the creationfolklore of festivals new tourist and traditional routes and hospitality; circuits in rural areas rich in natural and cultural resources, where to taste typical cuisine (prepared with safe, high-quality, branded and certified typical food products)the creation or buy handicraftof new tourist objects. routes and circuits in rural areas rich in natural and cultural resources, where to taste typical cuisine (prepared with safe, high-quality, branded and An examplecertified of such typical integration food products) is provided or buyin Figure handicraft 4. objects.

Figure 4 – Integration among the scenarios for tourist development AnFigure example 4– Integration of such integration among the is scenarios provided for in touristFigure development4.

Source: Strategic plan for sustainable tourism in the Shkodra Region (2011). Source: Strategic plan for sustainable tourism in the Shkodra Region (2011). Being aware of the fact that there still are a large number of planning and programming instruments at municipal, inter-municipal, regional and interregional levels, where it is worth noticing the general consistencyBeing aware among of thethem, fact Albania that thereis also still carrying are aan large effort number in order of to planning design comprehensive and programming though instruments at municipal, inter-municipal, regional and interregional levels, where it is worth noticing the general consistency among them, Albania is also carrying an effort in order to design 67 comprehensive though integrated strategy and instruments, by contrasting fragmentation of interventions and concentration of investments in the main tourist destinations, thus neglecting other areas with tourist potentials. Then, while a structural reform towards inter-ministerial collaboration

72 integrated strategy and instruments, by contrasting fragmentation of interventions and concentration of investments in the main tourist destinations, thus neglecting other areas with tourist potentials. Then, while a structural reform towards inter-ministerial collaboration and the strengthening of both the Ministry of Tourism, Culture, Youth and Sports, and the National Tourism Agency are suggested, a complementary Law on Tourism has been depicted, which harmonizes the work of the government, first of all by providing a clear division of powers for institutions which are responsible in the domain of tourism, as well as that between the central and local government. This is also the reason why, besides product diversification and the defense of ecosystems biodiversity (where natural parks and reserves are considered as crucial) a highly participatory process in strategy development and implementation is recommended. In these terms, the creation of tourist destination management organizations is considered to be at the core of development, not only in order to promote inclusive mechanism for public stakeholders, business and tourism community, while encouraging democratic decision making by providing continuous information support, but also in order to increase awareness about the value of the relational capital while entering new markets. Moreover, the removal of any constraints in terms of infrastructure provision (with particular regard to accessibility, internal mobility and public utilities such as electricity and water supply) is considered a priority, in both areas of current and potentially high tourist demand: then, the improvement of roads and railways is planned, as well as the creation of a network for wastewater and solid waste disposal. Among this line of intervention, the development of a solid and extensive Information and Communication Technology (ICT) infrastructure is even included, through which increase overall economic efficiency thanks to a rapid and free flow of information. With the aim to achieve EU standards in public administration, ensure transparency in the public sector, as well as expand decentralization and local democracy, the definition of a stronger legal and regulatory framework for businesses and individuals is even planned, coupled with: a) the introduction of an accommodation registration scheme, able to enforce minimum standards for the different grades and types of commercial lodging facilities to be used by tourists; b) the establishment of a National Register of tourist resources, in order to carry on data collection or analysis at local, regional and national level according to international standards; and c) the securing of property rights, by completing the inventory of state immovable properties, properties for environmental protection, properties that could be used for generating income, properties to be transferred to the physical fund for expropriated owners, properties to be privatized, and properties for constructions for tourism promotion. The final pillar on which Albanian tourism development strategy is based on is the promotion of entrepreneurship and capacity building: with this regard, and with the aim to encourage private investors’ initiatives and to ensure that funded projects really satisfy territorial needs, the increase of microcredit funds is planned, as well the promotion of Public-Private partnerships and the certification of professional courses in colleges and universities, which could extend professional skills in line with EU practices. In particular, trains regarding the collection, processing and entry of tourism data, as well as awards of national prizes or success, are highly recommended.

68 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

7.3 – Bosnia7.3 – Bosnia & Herzegovina & Herzegovina

Due to a complex national internal structure22, in Bosnia-Herzegovina tourism is not dealt with at State level. However, an effort is being made to establish23 a State tourist association, able to coordinate the developmentDue of to the a complex tourist nationalindustry internal in both structure Federation, in Bosnia of Bosnia-Herzegovina-Herzegovina tourism is and not dealtRepublika with at Srpska. State level. However, an effort is being made to establish a State tourist association, able to coordinate This, because in the Strategy for developmentStrategy for of development tourism of Bosnia of tourism and ofHerzegovina Bosnia and Herzegovinafor the period for 2008 the – 2018, tourism isthe considered development an of asset the touristin the framework industry in both of the Federation economic, of Bosniamaterial-Herzegovina and human and territorial Republika capital, period 2008 – 2018, as well asSrpska. a branch This, becausewith an in enormous the potential for smart, inclusive and sustainable growth, playing as one of the top prioritiestourism of the is overall considered national an asset development in the framework policy of the thanks economic, to its material significant and share of knowledgehuman and territorial high capital,value added, as well aswhich a branch in turn with contributes an enormous to potential social forprosperity, smart, inclusive growth and of GDP, employmentsustainable and investments. growth, playing Moreover, as one of the tourism top priorities is recognized of the overall to have national a particular development developmental policy influencethanks through to its externalsignificant effects share of knowledgeon numerous and highactivities, value added,starting which from in turnfood contributes and beverage to social production, road, railprosperity, and air growth traffic, of GDP, infrastructure employment and development investments. Moreover,and investment tourism is recognizeddestination to have capacities, a through the adoptionparticular of moderndevelopmental hospitality influence management through external approaches, effects on numerous trade activities, and entertainment starting from food industry to start developingand beverage a series production, of financial, road, rail andmarketing air traffic, and infrastructure educational development services, and and investment changes in the rural, the environmental spatial development in the country, raising prosperity and living standards. Then, destination capacities, through the adoption of modern hospitality management approaches, trade and the aim is to fulfill, in some crucial sectors, a series of conditions necessary for the smooth and proper entertainment industry to start developing a series of financial, marketing and educational services, functioning of tourism as a system (see Figure 5). and changes in the rural, the environmental spatial development in the country, raising prosperity and living standards. Then, the aim is to fulfill, in some crucial sectors, a series of conditions necessary for Figure 5 –the Conditions smooth and and proper sectors functioning for tourist of tourism development as a system in Bosnia-Herzegovina (see Figure 5). Figure 5 – Conditions and sectors for tourist development in Bosnia-Herzegovina

Source: Adapted from the Strategy for development of tourism of Bosnia and Herzegovina for the period 2008 – 2018 (2007).

22 Bosnia-Herzegovina is composed by two highly independent entities (Federation of Bosnia-Herzegovina - FBiH and 23 Republika SrpskaBosnia-Herzegovina – RS), plus is composed one district by two city highly (Brcko). independent FBiH entities consists (Federation of 10 of cantons Bosnia-Herzegovina which are - FBiH further and Republika broken Srpskadown – into municipalities,RS), while plus onRSe districtconsists city of (Brcko). municipalities FBiH consists only, of 10 cantonswith no which middle are further level broken government. down into municipalities,Both FBiH and while RS RS consistshave their of own municipalities only, with no middle level government. Both FBiH and RS have their own respective authorities: the Federal Ministry of respective Environmentauthorities: and the Tourism Federal in FBiH Ministry and the Ministry of Environment of Trade and Tourism and Tourism in RS. The tourism in FBiH strategy and that the is Ministry being finalized of asTrade a contribution and Tourism in RS. The totourism the State’s strategy development that strategy is being is an effort finalized at State levelas ato contribution which the two competent tothe State’s ministries development in the entities are strategy contributing. is an effort at State level to which the two competent ministries in the entities are contributing.

74 69 Warranty of marketability, innovation in technologies, and the creation of a favorable legal, business and investment environment for potential private investors are considered the main line of interventions for future growth, while capacity building and the introduction of training programmes for people in the tourism sector, with a particular regard to environmental awareness and sustainable tourism, are recommended in supporting reforms on the way to EU membership. This, having as a starting point the Bosnia-Herzegovina geographic location in the center of Europe, which creates opportunity to attract large number of potential tourists within range of up to three hours flight, and its status as a still unknown tourism destination for major markets. In fact, after being awarded the leisure destination in the outside world by the National Geographic, Bosnia-Herzegovina has been defined by the World Tourism Organization as one of only three tourism destinations in the world with overall tourism market growth potential in excess of 10% annually through 2020. Its natural wealth and diversity, unique cultural and historical heritage including religious sights, rich gastronomy offerings, as well as warm hospitality of local people are considered the major opportunities for development of creative tourism offer, even by leveraging such internationally recognized and important event as the Sarajevo Film Festival, which already attracts significant number of tourists, as well as relatively low cost of services and good food and drink offer, which make Bosnia-Herzegovina a destination recognized as good value for money. For these reasons, being flanked by significant efforts for reconstruction after war, relevant strategies for attractiveness of investments (where individual private project, direct foreign investments, joint ventures, concession, privatization and long term loans are the most common investment modes and approaches) are developed on the topics of small and medium enterprises, agriculture, information technologies and energy, toward the opening of new tourism resorts, as well as the upgrading of accommodation, entertainment and recreation facilities of existing resorts, hotels privatization, and the development of tourism supporting infrastructure (with this regard, capital projects in improving highways are underway). The adjustment of national legislation with the European Union legal framework is even in progress: with this regard, the adoption by the Government of Republika Srpska of amendments to the law on consumer protection may be considered, in order to approximate with the acquis communautaire on timeshare and long-term holiday products. Moreover, the education and training of tourist guides and other tourism and hospitality workers with the aim of capacity- building, the raise of public awareness of sustainable development and tourism (where hotel managers, tourist agencies, tourists and municipal authorities are recognized as the main targets), the boost of infrastructure construction and accommodation facilities (which should be designed and offered a certain segment of tourists like children, athletes, etc.), are called to act as main lines of intervention, across the whole tourism offer. Finally, an effort is made to invest in promotional activities, with advertisements airing globally, in order to build a destination image that could be recognizable in the international tourism market, and to position Bosnia-Herzegovina as an interesting destination for travelers intrigued by a mix of adventure and culture, eastern and western influences, and traditional and modern lifestyles23. In detail, and with the aim of a better establishment of Bosnia-Herzegovina as a distinctive tourist destination, that is differentiated in the market by offering tradition, diversity and richness, the most promising tourism products are identified in: • Health and Spa Tourism, in relation to the general trend of increase in the number of elderly people seeking for health care facilities, the national richness in high-quality thermal and mineral springs, health resorts and spas, as well as in coherence with the Law on Health Protection of the Federation of Bosnia and Herzegovina (Official Gazette of Bosnia-Herzegovina, number: 46/10), which does not distinguish between the private and public sector, then allowing the domestic or foreign persons or companies to be founders of health institutions. With this regard, investments in upgrading

23 Target markets are identified both within Europe (Croatia, Serbia, Italy, Slovenia, Malta and Germany) and in such countries as Kuwait, the Russian Federation and India.

70 and modernization of existing facilities and programs, seeking for potential strategic partners to readjust their business models, management philosophy and marketing strategy are supported, with the aim to make resorts offer true rest and relaxation, in addition to healthcare.

• Ecotourism, leveraging the already established number of national and nature parks, natural reservations and bird habitats. In detail, the 2010 – 2020 Tourism Development Strategy of the Republika Srpska recognizes unexplored and untouched canyons, lakes, rivers, waterfalls, and springs, as the core resources on which a unique product can be created, with the double ratio of protection of ecological balance (“stability”) and care of the permanent preservation of origin of biological diversity (“diversity”). In these terms, the coordination of a State strategy for sustainable tourism as an integral part of the development strategy for tourism is recommended, with the aim to provide a cohesive framework and ensure that sustainability criteria are consistently applied in all laws and regulations affecting tourism development, even addressing the problem of unreliable statistics and the introduction of sustainable tourism indicators.

• Ski, Mountain and Sport Tourism, including fishing and hunting. With this regard, the aim is the promotion of Bosnia-Herzegovina as the country with some of the best-and cheapest-alpine skiing in all of Europe, like the Olympic Mountains Jahorina, Bjalasnica, Igman, Trebevic and Vlasic, as well as recreation centres of Kupres and Risovac, and ski resorts on Kozara, Busovaca, Ostrelj, Vlasenica, Vranica, Borje and others, which offer more than 60 kilometers of perfect ski slopes. Great emphasis is even posed on Sarajevo, the national capital hosting the 1984 Winter Olympics, which, at that time, were the largest Winter Games ever (in terms of athletes and media).

• Cultural Heritage and Religious Tourism, where a unique and mix of cultures and religions (Judaism, Roman Catholics, Christian Orthodox and Islam) existing in harmony can be experienced. An inventory of all sites of tourist interest (including sites with a potential for rural tourism, industrial heritage, nature tourism and spas, as well as those related to national cultural heritage in addiction to Medugorje, which has become one of the most popular pilgrimage sites for Catholics, and those included on UNESCO World Heritage List) is planned, on the basis of which a general master plan and a series of individual master plans for specific sites are expected to bedeveloped.

• Rural and Agro Tourism, in relation to the villages in mountain regions, where tourists are offered the possibility to enjoy the special rural ambient with traditional hospitality, and rich culinary offer of domestic products. With this regard, the development of local production related to the tourist sector such as locally grown and possibly organic food and crafts is widely mentioned.

• Adventure Tourism, including more equipment and more complex systems for the safety of tourists in the contents of experience, where excitement becomes the basis of demand. In detail, excellence is recognized in whitewater rafting on the Una and Neretva rivers, while promotional efforts are done by the ATA (Association of Adventure Tourism of Bosnia-Herzegovina), which represents the outdoor tourism in international fairs (i.e. 2011 Outdoor Retailer Summer Market (ORSM) - Salt lake City, Utah; Adventure World Travel Summit – Luzerne, Switzerland), offering diverse programs that include: hiking, rock climbing, mountain biking, kayaking, rafting, canyoning and fly-fishing. As the role of maritime area over the total national economy is very small (less than 1% of the total Bosnia-Herzegovina GDP, according to the Strategy for development of tourism of Bosnia and Herzegovina), coastal tourism, yachting and marinas tourism, and cruise tourism are not considered as strategic tourism products at a national level24, with even limited data available. However, in such UE documents

24 An exception is given by Neum municipality, whose strategy for local development covers tourism and marine aquaculture through space planning. 71 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

� Adventure Tourism,

including more equipment and more complex systems for the safety of tourists in the contents of experience, where excitement becomes the basis of demand. In detail, excellence is recognized in whitewater rafting on the Una and Neretva rivers, while promotional efforts are done by the ATA (Association of Adventure Tourism of Bosnia-Herzegovina), which represents the outdoor tourism in international fairs (i.e. 2011 Outdoor Retailer Summer Market (ORSM) - Salt lake City, Utah; Adventure World Travel Summit – Luzerne, Switzerland), offering diverse programs that include: hiking, rock climbing, mountain biking, kayaking, rafting, canyoning and fly-fishing.

Strategy for development of tourism of Bosnia and As the role of maritime area over the total national economy is very small (less than 1% of the total Herzegovina Bosnia-Herzegovina GDP, according to the ), coastal tourism, yachting and marinas tourism, and cruise tourism are not considered as Studies to support25 the development of sea basin cooperation in the strategic tourism products at a national level , with even limited data available. However, in such UE Mediterranean, Adriatic and Ionian, and Black Sea asdocuments EUNETMAR as StudiesEUNETMAR to support the development of sea basin cooperation in the Mediterranean, Adriatic and Ionian, and Black Sea (2014), coastal tourism is recognized to have a valuable growth potential, which could be exploited through a better organization of the (2014),sector and coastal cooperation tourism with is recognizedother tourism to areas have a (alsovaluable inland) growth in Bosnia potential, and Herzegovina which could or be Croatia, exploited in coherence through awith better the Blueorganization Growth objectivesof the sector and and the Smart Specialization strategies. cooperation with other tourism areas (also inland) in Bosnia and Herzegovina or Croatia, in coherence Tablewith 2the – Policies/interventions Blue Growth objectives towards and Coastal the Smart tourism Specialization development strategies. Table 2 – Policies/interventions towards Coastal tourism development Strategies Objectives Link to Blue Growth LinkLink to to Smart Smart Link toobjectives Blue Growth Specialization Strategies Objectives Specialization objectives Strategies Strategies - Economy growth, with focus on tourism and its compatible branches of the - Economy growth,economy; with focus on tourism Neum Development - andDevelopment its compatible of branches social services of the with - Healthy - Innovation friendly focus on education, health-care, social- business environments strategy economy; environment; care, veterans, sport, culture, etc; - Innovationfor SMEs friendly Neum - Development of social services with - Increase the growth - Cultural and (Level: local) - Infrastructure development, space -Healthypotential environment; of activities; business environments Development focusplanning on education, and environmental health-care, protection; social- creative industries - Increase- Increase the growth the for SMEs strategy -care, Strengthening veterans, sport, of local culture, authorities, etc; with attractiveness of focus on projects and activities that need potential of activities; - Cultural and creative - Infrastructure development, space coastal areas to provide their efficiency. - Increase the attractiveness industries (Level: local) planning and environmental protection; of coastal areas - Strengthening of local authorities, with National focus on projects and activities that need tourism Valorization of heritage and use for strategy conservationto provide and their protection efficiency. from the - Healthy - Innovation Chapter on tourism devastation; environment; friendly business Herzegovina- Valorization of heritage and use for National - Improvement of life quality at the local - Increase the growth environments for Neretva conservation and level;protection from the tourism strategy SMEs Canton - Open possibilities for stronger potential of - tourism devastation; -Healthyactivities; environment; - InnovationCultural friendlyand Chapter on development of entrepreneurship (direct - Improvement of life quality at the local - Increase- Increase the growth the businesscreative environments Herzegovina(Level: - or indirect in tourism function); attractiveness of industries national - Tourism as level;dominated economic potential of activities; for SMEs Neretva Canton coastal areas / regional) - Open possibilitiesactivity. for stronger - Increase the attractiveness - Cultural and creative development of entrepreneurship (direct of coastal areas industries (Level: national or indirect in tourism function); / regional) - Tourism as dominated economic activity. Source: Studies to support the development of sea basin cooperation in the Mediterranean, Adriatic and Ionian, and Black Sea (EUNETMAR,Source: Studies to 2014). support the development of sea basin cooperation in the Mediterranean, Adriatic and Ionian, and Black Sea (EUNETMAR, 2014).

25 An exception is given by Neum municipality, whose strategy for local development covers tourism and marine aquaculture through space planning.

78 72 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

7.4 - Croatia 7.4 - Croatia

In consideringIn considering the development the development of tourism, of tourism, the Croatian the Croatian strategic strategic plan plan starts starts from from the the observation observation that the demand isthat actually the dem focusedand is actually on the focused narrow on coastalthe narrow belt coastal and thebelt islands,and the islands, and the and predominating the predominating product is the “Sun productand sea” is one.the “Sun The and effect sea” ofone. which The effectis a short, of which but isintensive a short, buttourism intensive season tourism with season a series with of anegative consequences,series like of negative insufficient consequences, utilization like of insufficient existing capacities, utilization high of existing pressure capacities, on utility high infrastructure, pressure on and the problem ofutility workforce. infrastructure, and the problem of workforce. In order to increase its attractiveness and competitiveness, resulting in bringing Croatia into the In order20 to most increase competitive its attractiveness tourist destinations and competitiveness, in the world, a long resulting-term, persistent in bringing action Croatia at the destinationinto the 20 most competitivelevel tourist is identified, destinations on the in basis the ofworld, three a aspects: long-term, “conceptual”, persistent “operational” action at the and destination “manufacturing”. level is Theidentified, on the basis“conceptual” of three aspects: aspect gives“conceptual”, an answer “operational” to the question and of “manufacturing”. what Croatian tourism The “conceptual” should be like. aspect The gives an answer“operative to the question” aspect of answers what Croatian the question tourism of theshould key be prerequisites like. The “operative” for the development aspect answers of Croatian the question of the keytourism, prerequisites and identifies for the basic development goals of its ofoperating Croatian strategies. tourism, “Manufacturing” and identifies aspect basic gives goals an ofanswer its operating strategies.to “Manufacturing” a third question: what aspect will gives Croatian an answer tourism to do a tothird attract question: attention, what pointing will Croatian out key componentstourism do ofto attract the Croatian tourism product. attention,Figure pointing 6 - Value out systemkey components in the tourism of thenational Croatian development tourism strategy product. of Croatia

Figure 6 - Value system in the tourism national development strategy of Croatia

Source: Proposals for tourism development strategy of the Republic of Croatia until 2020 (The Government of the Republic of Croatia, 2013). Source: Proposals for tourism development strategy of the Republic of Croatia until 2020 (The Government of the Republic of Croatia, 2013).

Accordingly, marketing, development of the tourism offer, human resources development and a process managementAccordingly, able to guarantee marketing, a better development cooperation of the at tourismthe destination offer, human level, resources by rationalizing development and transforming and a the networkprocess of tourism management boards able into to properguarantee destination a better cooperation management at the organizations, destination level, are identifiedby rationalizing as the main operative andstrategies transforming for tourism the network development of tourism until boards 2020, into which proper are destination put into practice management on the basis organizations, of the following ten key directions.

• Deregulation , on the assumption that a significant simplification of existing legal and legislative frameworks79 is vital in order to create prerequisites for the development of entrepreneurship and to develop a positive investment climate. • Partnerships among the public governing bodies (including environmental protection institutions, culture, traffic, health, and security ones), the private sector (entrepreneurs) and the civil sector, as well as in terms of horizontal (inter-resource) and vertical (national-regional-local) cooperation. • Environmentally sound development, to be reached first and foremost by the implementation of technological solutions in construction and furnishing (e.g. heat waste reduction, energy-efficient cooling and heating systems, use of renewable energy sources), the rational usage of existing space and facilities which are not deployed for tourism yet or which are used inadequately (such as abandoned industrial facilities, abandoned military facilities, non-privatized companies of the tourism industry or companies which were 73 privatized, but not in function), and the offering of incentives for greenfield investments. Special care is also paid in promoting solutions that lead to low-carbon development of Croatia and the participation of the tourism sector in the implementation of proactive measures of the Strategy for the Preservation of the Sea Environment with the aim of its Conservation and Permanent Protection. • Besides the sun and the sea, by developing and commercializing a range of new, differentiated tourism products such as nautical tourism and yachting, cultural tourism, cycling tourism, adventure and sports tourism, eco-tourism, wine and food tourism, but also golf, health, rural and mountain tourism. Each of them are proposed as primary, secondary and tertiary products for the ten marketing regions Croatia has been divided into: six litoral (Istria, Kvarner, Dalmatia-Zadar, Šibenik, Split, Dubrovnik) and four continental (Lika-Karlovac, Slavonija, Continental, Zagreb-the capital). Such a diversified tourism offer is founded to allow Croatia to reach a wider visitor segment structure whose affinity to various types of travel, different price points and tourism activity, as well as all-year-round travel, opens new possibilities for a significant extension of tourist activity and tourist spending. Key segments on which Croatian tourism is targeted can be found in eight groups: Young (18-24), DINKS (Double Income, No-Kids couples), Families (with both smaller - up to 7 years old- and older children - from 7 to 14 years old), Empty-nesters (working population whose children have left home and live on their own: 50 to 65 year- olds), Golden age (pensioners without any significant health problems, 65+ years), and Specialized tourism travel organizers. • Innovative market appearance, by rebranding Croatia on the interpretation of its central identity as the “country of beauty and fulfillment”, thus emphasizing value characteristics such as diversity, substance, authenticity, preserved environment, abundance in water and good food and wine, hospitality and beauty. In these terms, branding and promotional activities (in particular the online ones, which are highly recommended) are called to move away from the slogan level and towards the level of emotional stories that describes the primary tourist experience. • Authenticity and creativity, that is to say nurturing a natural, socio-cultural, climate and production authentic experience, which requires a focus on traditional cuisine, local wines and different culturalattractions, as well as creativity in the development of products, destination positioning and market communication. • Production through a cluster approach, due to recognition of the “tourism product” as an aggregate category. In these terms, from an internal point of view trans-sectorial cooperation (for instance by making local products to be used to the greatest possible extent in the Croatian tourism industry) is encouraged as a way for gradually influencing the strength of the Croatian producers’ competitive ability, while cross-border cooperation (in particular in the field of nautical tourism) is promoted as an instrument for capitalizing on the maritime and sub-aquatic cultural heritage. • Culture of quality, by emphasizing the improvement of the existing tourism education system, and the introduction of compulsory programs in life-long education for various parts of the tourist industry. Moreover, the introduction of increased quality standards across all categories in the tourist offer is planned, with an emphasis on smaller family hotels, the introduction of certificates and signs of quality, and the publication of a lists of best service providers. • Support of the hotel trade as key initiator of the investment cycle, by fostering the privatization process and investments in the field, for both supporting the new construction of hotels and resorts, which includes individual but also so-called integrated mixed-use resorts, and the renovation or reconstruction of existing hotels. In these terms, the development of a high quality accommodation offer is intended above all in terms of themed and boutique hotels, owned by small and medium enterprises, as well as in terms of development of integrated resort projects, “diffuse hotels”, small family hotels and B&Bs, where to live a special “home” experience. Different facilities which are able to upgrade other elements of tourism offer and infrastructure, such as golf courses, theme parks and congress centers, as well as food and drinks facilities, fun, sport and recreation activities, trading, and public infrastructure standards are even objected in terms of the development of a proper investment strategy. With this regard, significant investments are also planned in nautical tourism ports, which involve the improvement of quality levels, primarily in attractive destinations that provide an all-year-round service, and the construction of berths in new and existing marinas and ports. Finally, in order to improve accessibility to the destination, the increase of technological and technical level of the international airports, the improvement of connections that airports have with their catchment area, and the improvement of tourist facilities in the ferry ports are recognized as more than enough room for investment. 74 7.5 - Greece

The new development model for Greek tourism economy is basically a policy proposal, which manages or even better imposes a major cultural change not only from the public sector - that is called to a shift towards a “technocratic” approach, characterized by continuity and consistency - but also from the perspective of the private entities, whose inter-sectoral introversion is called to be developed into an extrovert leading role. Thus, the utilization of private tourism business is just considered as a necessary tool for development, in coherence with a model that prioritizes the destination, with almost no exceptions. The goal is Greece to be included in the word’s top ten tourism destinations, first of all by improving high standards of living, that make it a pleasant country to live on a temporary or permanent basis. Three in particular are the main areas of intervention: • organizational and institutional reforms;

• tourism supply management;

• tourism demand management.

With reference to the first area, the design of one modern and unified regulatory framework is suggested, with the aim of boosting Greek tourism competitiveness and pushing towards the simplification of bureaucratic procedures, as well the shortening of the Schengen visas issuing procedure. Moreover, a number of institutional and non-institutional reforms are required, just like: an independent Ministry of Tourism; the establishment of a Tourism Secretariat in all co-competent Ministries; Secretary-Generals for Tourism who are permanent or at least serve for a five-year fixed term; the coordination of the co- competent Ministries and bipartisan consensus between an the Ministry of Tourism and the Office of the Prime Minister concerning the manner of administration and management of tourism. All of the aforementioned aiming at a smaller and more effective public sector, along with the assumption of more competences by the private sector, as well as the development of networks.

In these terms, a strengthened cooperation between the public and the private sector is required, to be realized through the creation of a Destination Management Organization in each of the seven Administrations (Attica; Thessaly and Central Greece; Epirus and West Macedonia; Peloponnese, West Greece and Ionian, Aegean; Crete; Macedonia and Thrace), the development of shared investments, with a particular regard to human resource training, the scale-up and change of mix of the country’s accommodation capacity, the upgrade of tourism sites infrastructure and border entrance points, in terms of both flight routes and marina capacity, and the creation of strategic alliances with airlines for the creation of new direct flights to the Greek tourist destinations.

When dealing with tourism supply management, the adoption of an inter-sectoral approach is clearly described. In fact, tourism is considered as the part of a wider system which includes the social, cultural and natural environment, and that is integral to the development of society as a whole. Therefore, as tourism products are not only defined by the supply of services within the framework of sights, accommodation and dining, the creation of synergies and economies of scope in areas or sectors such as culture, sport, education, medical services and gastronomy are called to be created.

sectors such as culture, sport, education, medical services and gastronomy are called to be created.

Then, the strategy is that to maintain the “sea and sun” product and to develop other specialized types of tourism (nautical tourism, city break, medical tourism, cultural and religious tourism, and MICE), which are identified through a thorough segmentation of actual demand. In particular, two “enabling” (the “Agro-, Eco-, Gastro-” and the “Activities based”) and three “niche” (“Elderly”, in selected“Wellness/lifestyle” geographies and which “Visiting do not friends possess and strong family”) affiliation products are to defined, or proposition which can based alternatively on the core productsact as (seecore figureproducts 7). in selected geographies which do not possess strong affiliation to or proposition Forbased each on of the the core core products priority (see products, figure 7). the main lines of interventions aim to both improve quality (through the development of integrated standards, and the training of human resources, both on initial and ongoingFor each level of ofthe training core priority and specialization) products, the and main value lines for of moneyinterventions (through aim the to designboth improve of customized quality services,(through in line the withdevelopment the concept of integrated of luxury stand as selfards, actualization, and the training distinctive of human experiences resources, and both well on beinginitial feelings), while the development of a comprehensive event calendar, the definition of thematic walks integratingand ongoing and promoting level of training distinct andofferings specialization) and the leverage and value of the for coastline money (throughare identified the design as the ofkey prioritiescustomized when services, dealing inwith line the with enabling the concept products. of luxury as self actualization, distinctive experiences and well being feelings), while the development of a comprehensive event calendar, the definition of thematic walks integrating and promoting distinct offerings and the leverage of the coastline are Figure 7 – Core priority products in the Greek Tourism Strategic Plan identified as the key priorities when dealing with the enabling products. Figure 7 – Core priority products in the Greek Tourism Strategic Plan

Source: Greek Tourism Strategic Plan: 2021 Growth Roadmap (SETE, 2014).

Source: Greek Tourism Strategic Plan: 2021 Growth Roadmap (SETE, 2014). In terms of strategic choices, this is converted in a mix, whose aim is the maximization of demand. Then, for what is about the current market (like the German one), a strategy of further penetration is chosen,In while terms continuing of strategic thechoices, offer this of isthe converted existing in““sea a mix, and whose sun”” aimproduct; is the instead, maximization for those of demand. current marketsThen, withfor what a greater is about development the current market potential (like (like the the German Scandinavian), one), a strategy the supply of further is enrichedpenetration with is newchosen, products, while with continuing particular the regard offer ofto thesport existing tourism sea and and golf. sun Onproduct; the other instead, side, the for offer those related current to cultural tourism is founded to be eligible for penetration in such new markets like China, while new and differentiated products, based on the concept of “holiday home” experience, are planned to be designed for attracting new geographic markets like Russia. 82

76 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

markets with a greater development potential (like the Scandinavian), the supply is enriched with new products, with particular regard to sport tourism and golf. On the other side, the offer related to cultural tourism is founded to be eligible for penetration in such new markets like China, while new and differentiated products, based on the concept of “holiday home” experience, are planned to be Figure 8 – Product / Market matrix designed for attracting new geographic markets like Russia. Figure 8 – Product / Market matrix

Source: Greek Tourism 2020 - Proposals for the new development model (Association of Greek Tourism Enterprises, 2010). Source: Greek Tourism 2020 - Proposals for the new development model (Association of Greek Tourism Enterprises, 2010). Finally, the main aim in approaching demand in the Greek strategy for the development of tourism is to create structures and culture of marketing, as well as changes in attitude and in organization. The continuousFinally, the research main aim and in studyapproaching of markets demand is recognized in the Greek as strategythe minimum for the prerequisite development for of success,tourism whileis to the create establishment structures ofand a companyculture of focusingmarketing, on as the well online as changes marketing in attitude of Greek and tourism in organization. by adopting The a creative and aggressive orientation, as well as the adaptation of crisis management methods and continuous research and study of markets is recognized as the minimum prerequisite for success, techniques, are included among strategic priorities. The design of a digital strategy is even advanced, on thewhile assumption the establishment that digital of a strategiescompany focusingdo not focus on the on online technology marketing in itself: of Greek they tourismfocus on by humans adopting and a theircreati desireve to and be aggressive connected orientation,with the things as wellthey aslike. the adaptation of crisis management methods and techniques, are included among strategic priorities. The design of a digital strategy is even advanced, on the assumption that digital strategies do not focus on technology in itself: they focus on humans and their desire to be connected with the things they like.

77 83 7.6 - Montenegro

The strategy for tourism development points out the vision Montenegro has to become the market leader in the Mediterranean when it comes to tourism oriented in nature. In these terms, the “Wild Beauty” brand is strengthened and the integration of all regions into a single high-quality destination is called, in order to ensure permanent presence at major source markets. Priority objectives are:

• the retention of Montenegro current position in the price-sensitive segment (in particular with regard to the neighboring markets like Serbia, Bosnia and Albania), while shifting the focus to a vigorous development of the high-yield hotel sector and its specialization on a multifaceted, attractive leisure infrastructure and on staging scenic, cultural and historical highlights;

• the diversification of tourist offer (by developing village, agro-, eco-, mountain, cultural, and sports tourism and by nourishing national multi-ethnicity, landscapes and protected biodiversity) in support to the extension of the tourist season and attraction of guests from both Russia and Western and Northern Europe (Germans, Frenchmen, Britons, Dutchmen and Scandinavians in particular) with higher purchase power (the final aim being the increase of direct and indirect revenues from tourism);

• the integration of sustainability criteria in sanctioning tourism development projects (i.e. for the adoption and assessment of plans), especially when it comes to coastal and winter mountain tourism. Indeed, in coherence with The National Strategy of Sustainable Development of Montenegro, sustainability (which is intended not only for environmental characteristics and impact, but in terms of social, cultural and economic dimensions as well) is not properly a part of the strategy, but rather a guideline which is inextricably intertwined with all aspects of the strategy.

In detail, the goal of tourism development is attained through a set of objectives (see Figure 9, on next page), that respond to the requirements for the product “tourism” that needs to be improved in terms of high-quality infrastructures and services, unique selling proposition, and recognition of an all-year- round destination (objectives 1 to 3), but also the task that, seen from the long-term perspective, a strong and reliable base, in terms of institutional framework and involvement of the local population, is to be created (objectives 4 and 5). Aspiration to provide good accessibility (which is recognized as a general precondition for the development of priority economic sectors) is put into action by the improvements in cross-boarder roadways and the protection of road infrastructure from the damages caused by excess load of freight vehicles, the suggestion of a network of panoramic roads for visitors coming by cars, the request for low-cost flight connections and the development of a tighter flight network, which is expected due to the development of a large, diversified and marketable hotel capacity. The latter to be reached even by both the upgrade of existing accommodation facilities and the development of new high-quality ones, in particular in terms of sports, health, family and entertainment amenities networked at the coast and in the hinterland, while boutique hotels and wellness and congress facilities are in place or in planning.

78 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure Figure 9 – 9 Objectives – Objectives and and measures measures for forfurther further tourism tourism development development

Source: Montenegro Tourism Development Strategy to 2020 (Montenegro Ministry of Tourism and Environment, 2008). Source: Montenegro Tourism Development Strategy to 2020 (Montenegro Ministry of Tourism and Environment, 2008).

85 The harmony of the new or renovated buildings with the conditions in their wider context, and the respect for nature protection, are called to be considered with regards to ensuring sustainable development and preserving ecological balance; moreover, wastewater and solid waste management, energy efficiency, the use of renewable energy and the boost of greenfield investments, as well as the suitability for the disabled, are the main criteria for guaranteeing high quality capacities. A good example in these terms is provided by nautical tourism: a selective, favored type of tourism, which comprises all pleasure or recreational trips on water, with a cruise ship, sailing or motor yacht, and which is pushed for further development due to natural values, advantages of the sea and lakes’ shores, and the position of the Montenegrin coast. In fact, special attention is paid to transformation of former military and industrial facilities and devastated areas into marinas which show positive impacts to ecology (because the function of marina is less harmful for the environment than their current function and no additional land is used), to the image of the destination and to investment capital (because they already have solved communal infrastructure). Existing ports and marinas are even planned to be improved in terms of service quality: in particular, politeness, availability of information and ability to give advice to guests are decisive factors for attaining the specific goal of high-quality tourism, while another aspect is that of the qualifications and skills of the guide, for instance, in rafting. Then, in cooperation with the competent education ministry, the work on defining the standards of new occupations, training programs are going on. In terms of product diversification and development, the “product portfolio” approach is widely adopted, in which a diverse range of different products, both in terms of physical facilities and guest experience, is created, with each matching the circumstances, attractions, resources and sense of place of each area and region. Then, mountain skiing, hiking and biking, golf, wellness and health, MICE, wilderness camping, agro-tourism, national parks and UNESCO World Heritage Sites products are combined into the following six clusters, which are considered the main parts of the high-quality and all-year tourism development strategy, even thanks to their ability to provide generosity, quality and variety in the whole tourism offer, while meeting sustainability requirements:

• The Budva–Bar cluster for bathing tourism, to be repositioned as a high-quality all-year-round destination with a Mediterranean flair at a subtropical coast;

• The Ulcinj bathing and nature tourism cluster, a place with an oriental flair and the most expansive sandy beach on the eastern Adriatic with Ada Bojana and Valdanos. Velika Plaža, in particular, affords the greatest development prospects in the Montenegrin tourism sector with precise directions on sizes and protected areas based on an environmental impact assessment. The goal is to make the area a destination for international tourism with modern holiday facilities (600- 800 beds) for various target groups and other facilities with all-year appeal (marina, conference facilities, shopping, schools, kindergartens, theatre, etc).

• The Boka Kotorska cluster, especially designed for bathing, cultural, sports, health individual and package tourism. The focus is then on nautical – yachting tourism, health with light fitness activities, demanding but also challenging sports such as sailing, diving, rowing, mountain biking and hiking, cultural programmes, events and festivals. The main attraction being the Bay of Kotor, surrounded by steep rock faces rising sharply out of the sea and the heritage of Venetian culture, unique at the Mediterranean and eminently suited for developing a particularly high-yield and diversified product (nautical tourism, golf courses, etc).

• The capital Cetinje and Skadar Lake cluster, which is devoted to nature, sports and village tourism and MICE, thanks to its historical significance, the diversity of local species and the scenery at the Cetinje-

80 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

hiking, cultural programmes, events and festivals. The main attraction being the Bay of Kotor, surrounded by steep rock faces rising sharply out of the sea and the heritage of Venetian culture, unique at the Mediterranean and eminently suited for developing a particularly high-yield and diversified productcapital (nautical Cetinje and tourism, Skadar golf Lake courses, cluster etc).

• The , which is devoted to nature, sports and village Skadar Lake.tourism The andlatter MICE, in thanksparticular to its historicalis prospected significance, to become the diversity one of of the local mostspecies important and the sce showcasesnery at for the touristicthe Cetinje theme-Skadar of sustainability,Lake. The latter inprotection particular isand prospected care of tonature, become as one well of the as mostpreservation important of local identities:showcases in fact, for only the ecologically touristic theme compatible of sustainability, activities protection like solar and boats, care ofhiking nature, and as biking well as are planned topreservation be permitted, of local while identities: strict frameworkin fact, only ecologically conditions compatible (local style, activities traditional like solar architecture boats, hiking and materials) andfor all biking new are buildings planned toare be settled. permitted, while strict framework conditions (local style, traditional architecture Bjelasica and materials) & Komovi for allProkletij new buildingse–Plav, Rožaje are settled. cluster • The Bjelasica & Komovi Prokletije–Plav, Rožaje cluster, to be developed into a regional holiday area at medium to higher• The quality. Due to the Tara canyon, the Biogradska, to be Gora developed National into Park,a regional monasteries holiday and mosques,area its at main medium products to higher are quality. related Due to relaxation, to the Tara sport canyon, like the hiking Biogradska and biking, Gora National wellness Park, and cultural experiences,monasteries to and be mosques, provided its mainin a family products atmosphere. are related to relaxation, sport like hiking and biking, wellness andDurmitor cultural –experiences,Sinjajevina Žabljakto be provided–Plužine in–Šavnik a family cluster atmosphere.

• The Durmitor–Sinjajevina Žabljak–Plužine–Šavnik cluster. The strategy is to develop a new mountain product encompassing• The the whole cluster, building on active nature. Thetourism strategy for isfamilies, to develop nature a new and mountain-sportsmountain enthusiasts, product encompassing even by upgrading the whole cluster,the national building park on activethrough nature nature, tourism experience for families, and activity programmes.nature and mountain-sports enthusiasts, even by upgrading the national park through nature, experience and activity programmes. Figure 10 – Touristic clusters Figure 10 – Touristic clusters

Source: Montenegro Tourism Development Strategy to 2020 (Montenegro Ministry of Tourism and Environment (2008).

On account Source: of their Montenegro proximity, Tourism Development the coast Strategy and to 2020 the (Montenegro mountains Ministry blendof Touris m to and formEnvironment one (2008). single experience, where the distance is proposed to be bridged with the help of two tourism corridors: the one from the coast to the Durmitor (which is even defined “Cluster 7”), where specific development of panoramic roads and trails is proposed, and the corridor from the coast to Bjelasica and Komovi (“Cluster87 8”), to be devoted to the development of small and medium-sized initiatives on the trail grid as well as in the destination region. In these terms, the improvement of the legal framework and combat of the gray economy are even requested throughout the whole strategy, and described as indispensable tools towards the creation of a favorable private investment environment, as well as a closer cooperation of public sector at all levels.

81 7.7 - Serbia Expected results from the implementation of the Serbian tourism development model are to transform the Republic of Serbia into a competitive tourist destination, and to increase both foreign exchange earnings and domestic tourist traffic. This, by offering the world a variety of products, which combine attractive natural and historical elements, coupled with a distinctive Serbian lifestyle that can be best experienced in the cultural, spiritual and emotional environment of a friendly people. Competitiveness is designed to be built on the following strategic assets: • Human resources, to be valorized through the professionalization of hotel and tourism managers, as well as staff in the new tourist occupations (like animation, entertainment, events, and theme parks). This to be reached by developing vocational training, by encouraging partnerships with high quality and internationally recognized institutions able to support the transfer of innovation and know-how, and by increasing mobility and flexibility in the employmentsystem.

• Geo-strategic position, which provides the Republic of Serbia, and Belgrade in particular, a central place in European traffic flows and, in general, which constitutes a clear link with the European background.

• Natural resources, especially in terms of ground and surface waters, mountains and forests, as a source for creating new products and innovation. With this regard, Vojvodina, with Novi Sad as its center, which proudly emphasizes its central European urban tradition, is especially dedicated to the valorization of water flows, and to the accelerated development of rural tourism, hospitality- based gastronomic heritage and authentic culinary experience of many ethnic groups that inhabited the area. Moreover, a fully capitalization of the Danube river, in terms of infrastructure development for river cruisers and floating restaurants, is highly recommended by the World Travel & Tourism Council Development Potential Report.

• Rich archaeological and architectural heritage, with emphasis on monasteries, historic towns and traditional architecture, giving Serbia strong arguments for the recognition and presentation as a destination with a valuable historical and cultural heritage.

• Spiritual creativity and preferences festivals, celebrations and other events, providing residents the possibility of presenting its own style of living.

This is the reason why the strategy is not to arrange predominantly homogeneous tourism products, but to set up, as a proper portfolio, different products (“City breaks”; “Cruising”; “Business tourism and MICE”; “Spa and wellness tourism”; “Mountains and lakes”; “Touring”; “Events”; “Rural tourism”; and the “Special interests”), which are assessed and ranked in the context of the key success factors and priorities in development and commercialization. That is say, each product is labeled as a “priority product” (see Table 3, on the next page), which is almost ready for the international commercialization and that is recognized as the first step towards the development of the other tourism products, or as a “bottlenecks” product (see Table 4), which due to high initial investment in hardware and software can not be immediately commercialized in the international market and for which a development processes is needed. The approach is that to boost priority product and to remove constraints in bottlenecks products, in order to produce best results with the smallest effort and in the shortest possible timeframe.

82 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Table 3 3 – – “Priority” “Priority” Serbian touristtourist productsproducts

Priority tourismtourism Short-termShort-term strategy strategy Medium-termMedium- termstrategy strategy MainMain areas areas of ofintervention intervention products

- housing availability City breaks low-costs approach differentiation and specialization - level- housing of destination availability differentiation and management City breaks low-costs approach - level of destination specialization management

Business intensive penetration - competitive infrastructure tourism and of the international low-cost and specialization - accommodation facilities BusinessMICE marketintensive of congresses penetration and of the - - competitivepackages that infrastructure include tourism and low-cost and specialization conventionsinternational market of additional- accommodation activities and facilities facilities MICE congresses and conventions - packages that include additional activities and facilities

- entry- entry of low-cost of low-cost airlines airlines on on the the domestic market domestic market - facilities for charter air Touring low costs and specialization differentiation - facilities for charter air transport Touring low costs and specialization differentiation transport - investments in the tourism - investments in the tourism superstructuresuperstructure and and infrastructure infrastructure

differentiation (ranging - professional management from differentiationrafting, low cost with small investment - development- professional of infrastructures management Special hunting,(ranging fishing, from horse rafting, Specialinterests interests low andcost moderatewith small pricesinvestment and sports, and eco hunting) - development of infrastructures hunting, fishing, horse sports, - ease of accessibility moderate prices - ease of accessibility and eco hunting)

differentiation (segments: Nautical low cost river cruisesdifferentiation and development of marinas Nauticaltourism nautical charter) low cost (segments: river cruises and development of marinas tourism nautical charter)

- professional management - professional management Events maximization of the effects of differentiation - creation of other events that are maximization of the effects of existing - creation of other events that Events existing events of international differentiation attractive in the events ofsignificance international significance internationalare attractive context in the international context

90 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Table 4 – “Bottlenecks” Serbian tourist products Table 4 – “Bottlenecks” Serbian tourist products

Priority tourism products Medium-term strategy Main areas of intervention Priority tourism products Medium-term strategy Main areas of intervention

specialization - raise- raise of quality of quality standards standards specialization Health tourism (Medical Spa and Mineral Spa, - development- development of a of DMO, a DMO, which which Health tourism (Medical Spa and Mineral Spa, withshould take over the management with high quality but low cost) should take over the management high quality but low cost) resource base destinations resource base destinations

specialization - planning and project management specialization (cluster of a - planning and project management (cluster of a dozen integrated - international financing dozen integrated mountain - international financing Mountains and lakes mountain winter-summer - infrastructure and superstructure Mountains and lakes winter-summer destinations - infrastructure and superstructure in thedestinations areas of Westernin the areas and of Western - support to small and medium - support to small and medium Easternand Serbia)Eastern Serbia) entrepreneurship entrepreneurship

- environmental- environmental management management ofof tourism facilities, and especially specialization tourism facilities, and especially specialization hotels hotels (linkages with the food and Rural tourism agriculture(linkages withsectors, the food and - internalinternal control control standards standards Rural tourism (ethnic destinations) throughagriculture the development sectors, through the - introduction- introduction of of quality quality labels (ethnic destinations) or consolidationdevelopment or of consolidation formal of certifyingcertifying a product a product as as a agenuine genuine networks of destinations) Serbian artifact formal networks of destinations) - Serbiancommunity artifact engagement - community engagement

The 2005 tourism strategy divided the country into four main regional clusters for tourism purposes (namely; Vojvodina, Belgrade, West Serbia and Eastern Serbia), each of them enjoying a rich heritage, naturalThe and 2005 cultural tourism attractions, strategy in divided order to thespread country demand, into increase four main variety regional and bring clusters diversification for tourism into the tourism offer, implementing a positioning strategy that represents the Republic of Serbia as a countrypurposes able (namely; to offer Vojvodina, a diversity Belgrade,of authentic West experiences. Serbia and Today, Eastern is recognized Serbia), each as critical of them for enjoying the success a rich ofheritage, Serbian naturalTourism and that cultural clusters’ attractions,distinctiveness in orderand uniqueness to spread is demand, highlighted increase to visitors; variety however, and bring after a decade of war and subsequent political crises, in the international market a proper awareness of thediversification Republic of intoSerbia the as tourism a tourist offer, destination implementing is still lacking. a positioning This is thestrategy reason that why represents an overall thenational Republic brandingof Serbia policyas a country is highly able recommended, to offer a diversity in order of to authentic allow to both experiences. battle against Today, a negativeis recognized international as critical image, and to develop a unified tourist brand, whose benefits may be extended to individual regions of Serbia.for the The success following of Serbian three are Tourism the main that lines clusters’ of intervention distinctiveness in these terms: and uniqueness is highlighted to • visitors;investing however, in actionable after a decadeinitiatives of warsuch andas Belgrade2020 subsequent Europeanpolitical crises, City of in Culture the international Candidacy; market a proper awareness of the Republic of Serbia as a tourist destination is still lacking. This is the reason • developing ambassador-type programs and focusing on the Serbian Diaspora and Visiting Friends whyand an overallRelatives national tourism branding as a platform policy to is engage highly with recommended, important source-markets in order to allow and to to both extend battle againsttourism a negative to the regions;international image, and to develop a unified tourist brand, whose benefits may be extended to individual regions of Serbia. The following three are the main lines of intervention in these • �capitalizing on new technologies, social media in order to refresh the National Tourism Organization terms:website with more interactivity and links to direct bookings.

� investing in actionable initiatives such as Belgrade2020 European City of Culture Candidacy;84

developing ambassador-type programs and focusing on the Serbian Diaspora and Visiting Friends and Relatives tourism as a platform to engage with important source-markets and to extend tourism� to the regions;

capitalizing on new technologies, social media in order to refresh the National Tourism Organization website with more interactivity and links to direct bookings.

Starting a new era of cooperation and partnership among the private, the public sector and local communities, and working to create an open, inclusive, constructive and systematic dialogue where industry can input into the National Tourism Organizations’ and Government-driven initiatives, is

91 Starting a new era of cooperation and partnership among the private, the public sector and local communities, and working to create an open, inclusive, constructive and systematic dialogue where industry can input into the National Tourism Organizations’ and Government-driven initiatives, is another pillar defining Serbian policy framework for tourism development. High is the awareness that, is order to be successful, this partnership must be based on mutual interests and maximum transparency, trust and accountability on each side. The latter to be reached through the creation of a system of both core and optional, and quantitative and qualitative indicators for sustainable tourism development, to be monitored, measured and regularly communicated to all stakeholders, and the production of a register of tourism associations which may be regularly updated. Taking all this into account, a kind of “interventionist” model of development of competitive tourism products and tourism clusters is chosen, creating operational and professional state an interested party, and not only an initiator and partner to the public sector at destination. Moreover, in order to encourage and proactively plan on-going stakeholder engagement in long-term tourism implementation, as well as to generate (both domestic and foreign) investor confidence, government bureaucracy is aimed to be reduced, systemic reforms about labor law and the system for the collection and payment of taxes are fostered, interventions to bring those in the grey or unobserved market fully into the economy are planned, and an ethical business is encouraged, through a multifaceted approach including performance management and reviews and incentives on quality controls. As well as in the other EUSAIR Participating Countries, one of the main pillars of the tourism development strategy is that of infrastructure development, both in terms of maintenance and upgrade, to be achieved going hand in hand with quality and sustainability. In the case of Serbia, four are the critical components: • physical accessibility, with a particular regard to road and air access (both in terms of low-cost and charter connections), where the transformation of the military airports is recommended, as well the development of the enormous potential of the Danube river;

• visit and MICE accommodation, where the implementation of national standards among Serbia’s many small and privately owned hotels is suggested, as well the adoption of certification and online booking facilities, that would help to raise the quality of the tourism offering in the country;

• water and waste management, which appears to be a particularly sensitive issue in some areas such as mountain resorts;

• telecommunications for banking systems, in order to ensure that small business owners can sell their products freely online.

Finally, long term planning and research is recommended. It is meant as the collection and strategically use of accurate and relevant data to measure and monitor domestic travel (where now Serbian citizens appear to have regained a positive confidence and pride in their country, they want to stay inand explore) and international tourism arrivals (where the countries of the Balkans and Russia are the main travel markets) as well as tourism’s economic and employment impacts, even through the establishment of regular programs of seminars and workshops to share data and knowledge with the private industry.

85 7.8 - Slovenia Pursuant to Article 5 of the Promotion of Tourism Development Act (Official Gazette of the Republic of Slovenia, No. 2/04), the Ministry of Economic Development and Technology with the 2012-2016 Slovenian Tourism Development Strategy aims at the design of an efficient development model of Slovene tourism, that could even raise the culture of evaluation and competency, by means of providing measurement methods and indicators for supervising all key attributes and potentials of nationaltourism. In detail, Slovenia is planned to become a developed tourist destination with a modern, diverse and attractive tourist offer, based on innovative and quality products and high value-added services. All of these meaning an increase in the volume of tourism activity, in terms of traffic, revenues and profits from catering and tourist activities, number of tourists, and number of overnight stays. However, basing on the assumption that development is not only measured by quantitative indicators, the monitoring of tourism industry performance at national and entrepreneurial levels is accompanied by the basic orientation towards sustainable development, the concern for the economic, socio- cultural and natural environment, environmental impact management and quality, and transfer to a low-carbon society. In these terms, sustainable tourism is indeed considered the leverage that forms the strategic basis dictating steps and projects to be taken, and that is expected to become an important part of economic and socio- cultural well-being (with relevant outcomes in revenues and jobs), reinforcing cultural identity and allowing the international expert and wider community to identify Slovenia as an excellent, green, active, healthy and pleasurable destination to visit and do business with.In coherence to that, three main development areas are settled, whereby the task of the national tourism strategy is to achieve synergy between all of them:

• increase competitiveness, meaning improving innovativeness, quality, and safety in tourism products, towards tourist satisfaction and de-seasonalization. This, by facilitating research and development, both in the public and private sectors, which provides appropriate bases for business decision making, as well as by raising the qualifications of employees in hospitality and tourism and by encouraging innovations in the up-scaling and development of high value- added tourist products.

• ensure a favorable business and normative environment, with a stress on coordination and cooperation at an inter-ministerial level (in order to both eliminating obstacles for a more efficient development of tourism and exploiting all policies and financial instruments provided by the Republic of Slovenia and EU), as well as on developing strategic partnerships within the sector and external stakeholders, even in a public-private perspective, towards the raise of quality in tourist products and services. This, even by promoting the image of tourism as a priority in the eyes of other activities, able to guarantee the well-being of the local population and regional development.

• set up an intensive, efficient and innovative marketing and promotion (both in real and digital world) of Slovenia as an attractive, recognizable and highly positioned tourist destination at the targeted segments. Adequate resources for internationalization, integration of e-marketing and classic marketing, a more consistent use of the brand of Slovenia in the entire tourism industry and, at the same time, in cooperation with other implementation fields (such as agriculture and forestry, transport, health care, environment and spatial planning) are called as the main measures to be developed to achieve synergy effects. Moreover, a cover story of Slovenia as “green”, “active” and “healthy” destination to be experienced through the harmony of all senses has been designed, stressing on the fact that in national tourism offer the concept of “green” is more than acolor.

86 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

� set up an intensive, efficient and innovative marketing and promotion

(both in real and digital world) of Slovenia as an attractive, recognizable and highly positioned tourist destination at the targeted segments. Adequate resources for internationalization, integration of e-marketing and classic marketing, a more consistent use of the brand of Slovenia in the entire tourism industry and, at the same time, in cooperation with other implementation fields (such as agriculture and forestry, transport, health care, environment and spatial planning) are called as the main measures to be developed to achieve synergy effects. Moreover, a cover story of Slovenia as “green”, “active” and “healthy” destination to be experienced through the harmony of all senses has been designed, stressing on the fact that in national tourism offer the concept Figure 11 – Overallof “green” Slovene is more brand than design a color. as a tourism destination Figure 11 – Overall Slovene brand design as a tourism destination

Source: Slovenian Tourism Development Strategy 2012 - 2016 (2012).

PromotionSource: Slovenian is indeed Tourism Development one of the Strategy seven 2012 main- 2016 (2012). kinds of obstacles (together with Means for development Means for and marketingdevelopment of Slovenianand marketing tourism of Slovenian, Accessibility tourism, TouristAccessibility offer, HumanTourist Resources offer Human, Business Resources EnvironmentBusiness , and LegislationPromotion) the Government is indeed identified one of the for seven what mainis about kinds the ofprocess obstacles of attaining (together greater with competitiveness Environment Legislation (Table 5, on the next page). With this regard, besides, encouraging, cooperation, with EU and, international institutions such, and as UNWTO and) the OECD, Government Slovene identified strategy for what sets outis about the rolethe process and the of importance attaining of individualgreater stakeholders competitiveness in the (Table field 5,of ontourism, the next defining page). Withthem thisas true regard, bearers besides or participating encouraging parties in the implementation of particular tasks. cooperation with EU and international institutions such as UNWTO and OECD, Slovene strategy sets Then,out the an role enhancement and the importance of joint o planningf individual and stakeholders excellence in the in field all areas of tourism, and atdefining all levels them ofas true Slovenian 25 tourismbearersis clearlyor participating called as parties basic strategyin the implementation with the aim of to particular generate tasks. an additional tourist offer and enable a faster development of individual tourist destinations, while a great emphasis is placed, among other interventions, on green tourist infrastructure26 as well as on supporting the development of appropriate flight, rail and traffic connections, in order to make Slovenia more accessible (see Figure 12, on the next page).

25 Beside the Slovenian Tourist Board, which forms an integral tourist information structure at a national level, while also carrying out the facilitation of destination development as a whole, there are thirteen regional destination boards established at present, with the fourteenth being established. Both national and local boards perform the same four functions (promotions, distributions, development and operations, not disregarding a connective role between all stakeholders),94 in order to form top-quality and interesting tourist products and act jointly on foreign markets, both in the field of promotion and marketing as well as forming integral tourist products. 26 The objectives set in this period are planned be achieved by continuing the policies from the previous strategic period (2007 – 2011), when the majority of funds were intended to stimulate private sector investments, which had a major contribution to the rise in the level of tourist capabilities, both in light of quantity as well as quality. Incentives were primarily aimed at tourist infrastructure in the narrow sense and succeeded in lessening the bottlenecks in the field of accommodation capabilities, skiing capacities and the wellness and congress offer.

87 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Then,26 an enhancement of joint planning and excellence in all areas and at all levels of Slovenian tourism is clearly called as basic strategy with the aim to generate an additional tourist offer and enable a faster development of individual tourist destinations,27 while a great emphasis is placed, among other interventions, on green tourist infrastructure as well as on supporting the development of appropriate flight, rail and traffic connections, in order to make Slovenia more accessible (see Figure Table 5 – Identified obstacles in achieving greater competitiveness of Slovenian tourism 12, on the next page). Table 5 – Identified obstacles in achieving greater competitiveness of Slovenian tourism MeansMeans for development for and developmentmarketing of Slovenian limited amount of financial means intended for tourism in light of the and marketing significancelimited it amount has of on financial the Slovenianmeans intended economy for tourism (in in light the of the fields significance of it investments, tourism of Slovenian developmenthas on and the promotion)Slovenian economy (in the fields of investments, development and tourism promotion)

- small number of direct flight connection with the key markets of Slovenian tourism - small number of direct flight connection with the key markets of Slovenian tourism Accessibility - poor and outdated railway infrastructure - - poor and outdated railway infrastructure poor road connections from motorways to some most important tourist Accessibility centers; - poor road connections from motorways to some most important tourist centers; - the vignette system unfriendly to visitors and tourists - the vignette system unfriendly to visitors and tourists - unorganized visa policy on promising markets - unorganized visa policy on promising markets

Promotion - inconsistent- inconsistent use of use the of nationalthe national brand brand “I“I FEELFEEL SLOVENIA” SLOVENIA” within within the frame the of frame ofpromotionalpromotional activities activities on on foreign foreign markets markets (primarily (primarily by other by sectors other and sectors economy and Promotion economy aiming to achieve the synergy effects of Slovenia’s standing-out) aiming to achieve the synergy effects of Slovenia’s standing-out) - low level of recognition of Slovenia on target markets - low level of recognition of Slovenia on target markets

- lacking competitive tourist products

Tourist offer - lacking- lacking competitive added value tourist or attained products price of tourist products

- lacking- non added-cooperation value orof touristattained providers price and of unconnectedtourist products tourist offer - non-cooperation- unsatisfactory of situation tourist andproviders insufficient and action unconnected in the field oftourist green or offer sustainable Tourist offer - unsatisfactorydevelopment situation in tourist andand other insufficient sectors action in the field of green or sustainable development in tourist and other sectors - gaming poorly integrated in the tourist offer Human resources- gaming poorly integrated in the tourist offer

- lack of quality, qualified and motivated human resources in catering and tourism - lack of quality, qualified and motivated human resources in catering and tourism Human resources - rigid labour legislation - rigid labour legislation - discouraging investment environment for capital Business environment- discouraging- inadequate investment business environment environment that failsfor capital to facilitate innovations and

- inadequatecompetitiveness business environment that fails to facilitate innovations and

Business competitiveness- properly - properly environment - inefficient inter-ministerial coordination for the needs of faster development of - inefficient inter-ministerial coordinationGaming Actfor the needs of faster development of tourismtourism Legislation - inconsistent- inconsistent implementation implementation of of the the Gaming Actin in terms terms of ensuring of ensuring the earmarked the

earmarkeduse use of funds of funds from specialfrom special games of games chance concessionof chance fees concession fees Legislation - ministerial regulations important for tourism that do not follow the - ministerial regulations important for tourism that do not follow the interests and interests and needs of this area adequately needs of this area adequately

Source: Declaration on Partnership for the Sustainable Development of Slovenian Tourism (2011). Source: Declaration on Partnership for the Sustainable Development of Slovenian Tourism (2011).

26 88 Beside the Slovenian Tourist Board, which forms an integral tourist information structure at a national level, while also carrying out the facilitation of destination development as a whole, there are thirteen regional destination boards established at present, with the fourteenth being established. Both national and local boards perform the same four functions (promotions, distributions, development and operations, not disregarding a connective role between all stakeholders), in order to form top-quality and interesting tourist products and act jointly on foreign markets, both in the field of promotion and marketing as well as forming integral tourist products. 27 The objectives set in this period are planned be achieved by continuing the policies from the previous strategic period (2007 – 2011), when the majority of funds were intended to stimulate private sector investments, which had a major contribution to the rise in the level of tourist capabilities, both in light of quantity as well as quality. Incentives were primarily aimed at tourist infrastructure in the narrow sense and succeeded in lessening the bottlenecks in the field of accommodation capabilities, skiing capacities and the wellness and congress offer.

95 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Figure 12 – Development areas and measures or activities Figure 12 – Development areas and measures or activities

Source: Slovenian Tourism Development Strategy 2012 - 2016 (2012). In terms of business strategy, this is connected to a detailed market segmentation and action Source: Slovenian Tourism Development Strategy 2012 - 2016 (2012). planning within the following three clusters of foreign markets: key European markets (mainly B2C activities), other European markets (mainly B2B activities), and overseas markets (B2B activities). Core areas Inof the terms offer of businessare focused strategy, on the this sets is of connected leisure time, to a within detailed which market a number segmentation of specialized, and action niche tourismplanning products within arethe beingfollowing developed, three clusters marketed, of foreign and adapted markets: to key individual European target mark groupsets (mainly in view B2C of demographicactivities), other characteristics European (e.g. markets youth (mainly tourism, B2B senior activities), tourism, and families), overseas narrow markets market (B2B segments activities). for “nature lovers” (e.g. lovers of adrenaline adventures), market segments in view of the forms that are givenCore priority areas of (e.g. the loversoffer are of camps,focused vineyard on the sets cottages, of leisure farms) time, and within other which market a number segments. of specialized, niche tourism products are being developed, marketed, and adapted to individual target groups in view of demographic characteristics (e.g. youth tourism, senior tourism, families), narrow market segments for “nature lovers” (e.g. lovers of adrenaline adventures), market segments in view of the89 forms that are given priority (e.g. lovers of camps, vineyard cottages, farms) and other market segments.

96 Then, the following core tourist products are identified:

• Health and well-being (health resorts, wellness, medical tourism), where main objectives in the five- year planning period include the development of health maintenance and preventive programmes that are based on a holistic approach, the specialisation of individual health resorts and the development of new programmes for relaxation and entertainment. The aim is Slovenian natural spas to intertwine, in a well-balanced ratio, wisdom, experience, the natural environment and the distinct features of the country with the expertise and friendliness of hosts. • Active holidays (winter and summer activities, like hiking and biking, golf tourism, and fly fishing), with the aim to create a strong product association to make Slovenia visible on the map of Europe as a developed, active, green, and sustainable tourist destination, offering a variety of outdoor activities. • Adventures in nature (countryside tourism, tourist farms, natural parks and protected areas, ecotourism, camps), even through the participation in the EDEN – “European Destinations of ExcelleNce” project, in order to draw attention to the value and diversity of the most sustainable or green destinations that follow the principles of environmental, socially responsible, and cultural sustainability, thus stimulating their further development and integration in the whole national tourism offer. • Business tourism, leveraging the vicinity of primary markets, a favorable balance between the price and quality of services, as well as the reputation of the profession and science in international associations. • Gastronomy, where the emphasis on regionality and locality is connected to the integration of regional and local cuisine in the offers of hotels and restaurants, the valorization of protected foods and dishes in tourism offer and promotion, and the encouragement of Slovenian and European culinary trails, also in association with the EDEN project. • Culture, seen as an ideal way to extend the season through the improvement and better integration of heritage sites (churches, castles, palaces, monuments), various presentations of the living heritage (concerts, festivals, crafts, cuisine), and heritage events (exhibitions, museums). Moreover, leveraging the membership to the Europe of Tradition consortium, Slovene action plan envisages the preparation of adventure packages which will include the accommodation in traditional facilities, cuisine, learning about the nature and cultural heritage of the place and the immediate vicinity of the house and the integration of all the elements of the offer into the entire tourism product of houses of tradition. In this case, marketing is focused on the sales at information and reservation portals and the introduction of business systems to support operations, which would enable access to specialized travel agents. • Entertainment tourism and gambling industry, by promoting the development of strong capital concessionaires of special games of chance, which have a capacity to construct socially more acceptable gambling centers, and significantly invest in tourism infrastructure on certain local destinations. • Cruising, as Slovenia wishes to become known to ship owners as a new destination for cruise ships for its unique tourist offer found in no other passenger terminals in the Adriatic Seaor Mediterranean area, by developing the project in a base passenger terminal (with a possibility of passenger boarding/landing) and not merely a port of call.

Finally, Youth tourism is seen with a particular interest, through the design of a network of youth lodgings, together with other accommodation capacities and camps. Therefore, attention is placed on providing support to the Hostelling International Slovenia (which represents Slovenia in the International Youth Hostel Federation) in marketing and integration of its tourism products, as well as in offering other elements of youth tourism such as events, sports activities, cultural events, natural features and similar.

90 Conclusions As far as the EU Policy is concerned, tourism has been widely considered one of the major economic activities with a positive impact in Europe, even providing a textbook example of the need to reconcile economic growth and sustainable development, including an ethical dimension. This is the reason why, in coherence with the Europe 2020 Strategy, the aim of this document is to both propose a shared strategy, which may capitalize on the existing cooperation networks already set in the EUSAIR Area, and a joint set of actions, grouped into four lines of intervention, EUSAIR Partners may adopt in order to promote tourism. Both strategy and actions reflect the Lisbon Treaty and the Madrid Declaration, which both establish a series of recommendations concerning the implementation of a consolidated European tourism policy, as well as the Communication (COM(2010)352) Europe, the world’s No 1 tourist destination – a new political framework for tourism in Europe, in which the Commission focuses on the need for a sustainable approach in order to boost the competitiveness of the European tourism sector. In addition, they take good note of the Communication (COM(2014)86) A European Strategy for more Growth and Jobs in Coastal and Maritime Tourism that sets the framework for current challenges and proposes a sets of actions to unlock the full potential of this growing and promising sector. Furthermore, the strategy and actions here proposed are in line with the EUSAIR Action Plan, by highlighting cross-cutting issues related to Research and Innovation, with a particular attention to SMEs development, and life-long learning, vocational training, and development of skills (the Capacity Building process), both for private actors and public bodies who need to engage in a much closer cooperation. The stimulation of competitiveness and the promotion of a more resource-efficient, responsible and high-quality tourism offer are here suggested to be two of the main triggers that could make a significant contribution to re-launch the tourism market, while responding to concerns related to social matters, employment, territorial cohesion, as well as the capitalization on natural, cultural, maritime and agri- food heritages in the Area as drivers for innovation and growth. Finally, in order to face the challenge of bundling a fragmented supply into a consistent tourism product, as well as to reduce the sector’s dependence on the seasonal model, a support for an entrepreneurial approach is here suggested, thus linking sustainability principles (referring to the environmental, economic and socio-cultural aspects of tourism development, and the establishment of a suitable balance between these three dimensions in the long-term) to a strong commercial and business- oriented dynamic, based on destination management activities, best practices (mainly at transnational and/or interregional level) exchanges and integrated territorial development action plans, where the local population as well as tourists/visitors, is seen as a part of a sustainable tourism concept.

91 Methodological notes and appendix of section one Methodological notes The difficulties in analyzing the tourist sector in the eight Countries members of the Adriatic and Ionian Region derive from the different methods of data harvest used by each of the National Institutes of Statistic. For the countries partner of the European Union, that has also picked up the data of Montenegro and Serbia since 2011, the homogeneity and quality control of the data is directly realized by Eurostat http://ec.europa.eu/eurostat (primary source of this document). For the other Countries (Albania and Bosnia and Herzegovina) and for Montenegro and Serbia (for the preceding years at 2011) the data on the international arrivals have been used furnished by the UNWTO (International tourism trends in EU-28 member states. Current situation and forecasts for 2020-2025-2030), from the World Bank (http://data.worldbank.org) and from the WTTC (World Travel and Tourism Council -http://www.wttc.org/). Other macroeconomic indicators, and the forecasts to 2020, have been measured with the data of the WTTC. They bring following the contents:

Direct contribution to GDP – GDP generated by industries that deal directly with tourists, including hotels, travel agents, airlines and other passenger transport services, as well as the activities of restaurant and leisure industries that deal directly with tourists. It is equivalent to total internal Travel & Tourism spending within a country less the purchases made by those industries (including imports).

Total contribution to GDP – GDP generated directly by the Travel & Tourism sector plus its indirect and induced impacts.

Visitor exports – spending within the country by international tourists for both business and leisure trips, including spending on transport, but excluding international spending on education.

Domestic Travel & Tourism spending – spending within a country by that country’s residents for both business and leisure trips. Multi-use consumer durables are not included since they are not purchased solely for tourism purposes.

Government individual spending – spending by government on Travel & Tourism services directly linked to visitors, such as cultural services (eg museums) or recreational services (eg national parks).

Business Travel & Tourism spending – spending on business travel within a country by residents and international visitors.

Leisure Travel & Tourism spending – spending on leisure travel within a country by residents and international visitors.

Capital investment – includes capital investment spending by all industries directly involved in Travel & Tourism. This also constitutes investment spending by other industries on specific tourism assets such as new visitor accommodation and passenger transport equipment, as well as restaurants and leisure facilities for specific tourism use.

Government collective spending –government spending in support of general tourism activity. This can include national as well as regional and local government spending. For example, it includes tourism promotion, visitor information services, administrative services and other public services.

92 Other World Bank Data:

International tourism, number of arrivals - International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead.

International tourism, receipts (current US$) - International tourism receipts are expenditures by international inbound visitors, including payments to national carriers for international transport. These receipts include any other prepayment made for goods or services received in the destination country. They also may include receipts from same-day visitors, except when these are important enough to justify separate classification.

International tourism, expenditures (current US$) - International tourism expenditures are expenditures of international outbound visitors in other countries, including payments toforeign carriers for international transport. These expenditures may include those by residents traveling abroad as same- day visitors, except in cases where these are important enough to justify separate classification.

93 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

CHAPTER 2

Table 1 –CHAPTER Country Highlights 2 Table 1 – Country Highlights ALBANIAALBANIA BOSNIABOSNIA & & HERZEGOVINAHERZEGOVINA GDP:GDP: DIRECT DIRECT CONTRIBUTION CONTRIBUTION GDP:GDP: DIRECT DIRECT CONTRIBUTION CONTRIBUTION

68 bn LEK (Albanian Lek; 1ALL=0,01EUR) (4,8% of total GDP) in 2013, 670 mn BAM (Bosnian Mark; 1BAM=0,51EUR) (2,5% of total and68 bn is LEKforecast (Albanian to rise Lek;by 5,5% 1ALL=0,01EUR) in 2014, and to(4,8% rise byof total5, 6%, GDP) from in 2014- 2013, GDP)670 mn in 2013,BAM and(Bosnian is forecast Mark; to 1BAM=0,51EUR) rise by 2,3% in 2014, (2,5% and of tototal and is forecast2020, to to rise ALL by 123 5,5% bn in (6,1% 2014, of and total to GDP) rise by in 5, 2024. 6%, from 2014- riseGDP) by in 5,3%, 2013, from and 2014-2024, is forecast to to BAM rise 1.149by 2,3% mn in(3,0% 2014, of totaland to 2020, to ALL 123 bn (6,1% of total GDP) in 2024. rise by 5,3%, from 2014GDP)-2024, in to 2024. BAM 1.149 mn (3,0% of total GDP: TOTAL CONTRIBUTION GDP: TOTAL CONTRIBUTION GDP) in 2024. GDP: TOTAL CONTRIBUTION GDP: TOTAL CONTRIBUTION 2.465 mn BAM (9,3% of GDP) in 2013, and is forecastto rise by 239 bnbn LEKLEK (16,7%(16,7% of of GDP) GDP) in 2013, and and isis forecastforecast to to rise rise by by 4 4,6%,6% in in 2.465 mn BAM (9,3% of GDP) in 2013, and is forecastto rise 3,3% in 2014, and to rise by 5,4% to BAM 2014, andand to rise byby 5,4% pa pa toto ALL ALL 424 bnbn (20,9%(20,9% of of GDP) GDP) inin 2024.2024. by 3,3% in 2014, and to rise by 5,4% to BAM 4.297 mn (11,4% of GDP) in 2024. EMPLOYMENT: TOTAL CONTRIBUTION 4.297EMPLOYMENT: mn (11,4% TOTAL of GDP) CONTRIBUTION in 2024. 114.000 jobs EMPLOYMENT:146.500 TOTAL jobsCONTRIBUTION EMPLOYMENT: TOTAL CONTRIBUTION 10,7% of total employment ( ). This is expected 15,2%15,2% of total employment (146.500 jobs). ).This This is is expected expected to to rise rise by by 10,7% of total employment (114.000 jobs). This is expected to rise by 3,9% in 2014 to 118.500 jobs and rise by 2,2% pa 4,1%4,1% in in 2014 2014 toto 153.000153.000 jobs jobs and and rise rise by by 3,2% 3,2% to to 210,000 210,000 jobs jobs in in 2024 2024 to rise by 3,9% in 2014 to 118.500 jobs and rise by 2,2% pa to to 147.000 jobs in 2024 (13,5% of total). VISITOR(19,5%(19,5% of of EXPORT total). total). 147.000 jobsVISITOR in 2024 EXPORT (13,5% of total). VISITOR EXPORT VISITOR EXPORT Visitor exports generated ALL 154 bn (23,2% of total exports) in 2013. Visitor exports generated BAMBAM 1.071 mn (10,1% of of total total Visitor exports generated ALL 154 bn (23,2% of total exports) in 2013. This is forecast to grow by 6,3% in 2014, and grow by 5,6% pa, from exports)exports) in in2013. 2013. This This is forecast is forecast to growto grow by by2,8% 2,8% in 2014, in 2014, and This is forecast to grow by 6,3% in 2014, and grow by 5,6% pa, from 2014-2024, to ALL 282.5bn in 2024 (22,2% of total). andgrow grow by by 6,5%, 6,5%, from from 2014-2024, 2014-2024, to to 2014-2024, to ALL 282.5bnINVESTMENT in 2024 (22,2% of total). INVESTMENT BAMBAM 2.076 MN inin 20242024 (11, 8% 8% of of total). total). INVESTMENT INVESTMENT Travel & Tourism investment in 2013 was ALL 15,4bn or 4, 3% of total Travel & Tourism investment in 2013 was BAM 232 MN or 4, Travelinvestment. & Tourism It should investment fall by 2,2% in 2013 in 2014, was ALLand rise15,4bn by 4,1%or 4, 3% pa overof total the Travel & Tourism investment in 2013 was BAM 232 MN or 4, 2% of total investment. It should rise by 14, 6% in 2014, and investment.next It shouldten years fall to by ALL 2,2% 22 inban 2014, in 2024 and rise(4,4% by of4,1% total). pa over the 2% of total investment. It should rise by 14, 6% in 2014, and rise by 5, 9% over the next ten years to BAM 474 MN in 2024 next ten years to ALLCROATIA 22 ban in 2024 (4,4% of total). rise by 5, 9% over the next GREECEten years to BAM 474 MN in 2024 (5,(5, 8%8% ofof total).total). GDP: DIRECT CONTRIBUTION GDP: DIRECT CONTRIBUTION CROATIA GREECE GDP: DIRECT CONTRIBUTION 35.077 MN HRK (CroatianGDP: DIRECT Kuna; 1HRK=0,13EUR)CONTRIBUTION (12, 1% of total GDP) EUR 11 ban (6, 5% of total GDP) in 2013, and is forecast to in 2013, and is forecast to rise by 6, 0% in 2014, and to rise by 5, 4%, rise by 3, 1% in 2014, and to rise by 3, 4% pa, from 2014- EUR 11 ban (6, 5% of total GDP) in 2013, and is forecast to rise 35.077from MN 2014 HRK-2024, (Croatian to HRK Kuna;63.051 1HRK=0,13EUR) MN (17, 1% of total (12, GDP)1% of in total 2024. GD P) 2024, to EUR 16 ban (7, 4% of total GDP) in 2024. in 2013, and is forecastGDP: to rise TOTAL by 6, 0%CONTRIBUTION in 2014, and to rise by 5, 4%, from by 3, 1% in 2014,GDP: andTOTAL to rise CONTRIBUTION by 3, 4% pa, from 2014- 2014-2024, to HRK 63.051 MN (17, 1% of total GDP) in 2024. 2024, to EUR 16 ban (7, 4% of total GDP) in 2024.

HRK 80.332 MN (27,GDP: 8% ofTOTAL GDP) inCONTRIBUTION 2013, and is forecast to rise by 5, 2% EUR 28 ban GDP:(16, 3% TOTAL of GDP) CONTRIBUTION in 2013, and is forecast to rise inHRK 2014, 80.332 and toMN rise (27, by 8% 5, 1%of GDP) to HRK in 139.0122013, and MN is forecast(37, 6% toof riseGDP) by in 5, 2024. 2% EURby 3, 28 0% ban in (16, 2014, 3% and of GDP) to rise in by 2013, 3, 7% and pa is to forecast EUR 41.8bn to rise (19, by EMPLOYMENT: TOTAL CONTRIBUTION EMPLOYMENT: TOTAL CONTRIBUTION in 2014, and to rise by 5, 1% to HRK 139.012 MN (37, 6% of GDP) in 2024. 3, 0% in 2014, and 1%to rise of GDP)by 3, in7% 2024. pa to EUR 41.8bn (19, 311.500 jobs 1% of GDP)657.000 in 2024. jobs 29, 9% of totalEMPLOYMENT: employment ( TOTAL CONTRIBUTION). This is expected to rise by 18, 2%EMPLOYMENT: of total employment TOTAL ( CONTRIBUTION). This is 4,2% in 2014 to 324.500 jobs and rise by 2,3% pa to 406.000 jobs in expected to rise by 2, 7% in 2014 to 675.000 jobs andrise by 29, 9% of total employment (311.500 jobs). This is expected to rise by 18, 2% of total employment (657.000 jobs). This is 2024VISITOR (36,9% EXPORT of total). 2, and 3% to 846.000 jobsVISITOR in 2024 EXPORT (21, 4% of total). 4,2% in 2014 to 324.500 jobs and rise by 2,3% pa to 406.000 jobs in expected to rise by 2, 7% in 2014 to 675.000 jobs andrise by 2024 (36,9% of total). 2, and 3% to 846.000 jobs in 2024 (21, 4% of total). Visitor exports generatedVISITOR HRK 63.983 EXPORT MN (45, 1% of total exports) in Visitor exports generatedVISITOR EUR EXPORT 11 ban (24, 0% of total 2013.Visitor This exports is forecast generated to grow HRK by 63.9836, 7% inMN 2014, (45, and1% ofgrow total by exports) 5, 3%, from in Visitorexports) exports in 2013. generated This is EUR forecast 11 ban to grow(24, 0% by of 6, total 6% exports)in 2014, 2013. This2014 is forecast-2024 to to HRK growINVESTMENT 114.610 by 6, 7% MN in in 2014, 2024 and (46, grow 8% of by total). 5, 3%, from inand 2013. grow This by is 3, forecast 8%, INVESTMENTfrom to 2014grow- 2024,by 6, 6% to EURin 2014, 17 ban and in grow 2024 by 2014-2024 to HRK 114.610 MN in 2024 (46, 8% of total). 3, 8%, from 2014-2024, to EUR 17 ban in 2024 INVESTMENT INVESTMENT Travel & Tourism investment in 2013 was HRK 6.606 MN or Travel & Tourism investment in 2013 was EUR 2 ban or 13, 7% of 10, 3% of total investment. It should riseby 1, 7% in 2014, and total investment. It should rise by 0, 9% in2014, and rise by 5, 4% over rise by 2, 6% over the nextMONTENEGRO ten years to HRK 8.660 MN in 2024 the next ten years to EUR ITALY4 ban in 2024 (14,2% of total). (10, 5% of total). 94

102 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

MONTENEGRO ITALY GDP: DIRECT CONTRIBUTION GDP: DIRECT CONTRIBUTION

EUR 348.mn (9,8% of total GDP) in 2013, and is forecast to rise EUR 64 bn (4,2% of total GDP) in 2013, and is forecast to rise by 2,6% by 12,6% in 2014, and to rise by 8,6% pa, from 2014-2024, to in 2014, and to rise by 2,3%, from 2014-2024, to EUR 83 bn (4,7% of EUR 892 mn (17,7% of total GDP) in 2024. GDP: TOTAL CONTRIBUTION GDP: totalTOTAL GDP) CONTRIBUTION in 2024.

EUR 714 mn (20,0% of GDP) in 2013, and is forecast to rise by EUR 159 bn (10,3% of GDP) in 2013, and is forecast to rise by 2,1% in 13,2% in 2014, and to rise by 8,8% pa to EUR 1.877 mn (37,2% 2014, and to rise by 2,0% pa to EUR 198 bn (11,3% of GDP) in 2024. EMPLOYMENT:of GDP) TOTAL in 2024 CONTRIBUTION EMPLOYMENT: TOTAL CONTRIBUTION 30.500 jobs 2.619.000 jobs

18,3% of total employment ( ). This is expected to 11,6% of total employment ( ). This is expected to rise rise by 14,4% in 2014 to 35.000 jobs and rise by 6,2% pa to by 1,3% in 2014 to 2.652.500 jobs and rise by 1,6% to 3.094.000 jobs 64.000 jobs in 2024 (34,5% of total). in 2024 (13,4% of total). VISITOR EXPORT VISITOR EXPORT

Visitor exports generated EUR 699 mn (51,4% of total exports) Visitor exports generated EUR 33 bn (7,0% of total exports) in 2013. in 2013. This is forecast to grow by 10,0% in 2014, and grow by This is forecast to grow by 3,6% in 2014, and grow by 1,6%, from 7,9%, from 2014-2024, to EUR 1.641 mn in 2024 (50,9% of 2014-2024, to EUR 40 bn in 2024 (6,0% of total). INVESTMENTtotal). INVESTMENT

Travel & Tourism investment in 2013 was EUR 208 mn or 28,0% Travel & Tourism investment in 2013 was EUR 8 bn or 3,2% of total of total investment. It should rise by 14,3% in 2014, and rise by investment. It should rise by 4,3% in 2014, and rise by 2,3% over the 8,7% pa over the next ten years to EUR 549 mn in 2024 (52,3% next ten years to EUR 11 bn in 2024 (3,5% of total). ofSERBIA total). SLOVENIA GDP: DIRECT CONTRIBUTION GDP: DIRECT CONTRIBUTION

78 bn RSD (1 Euro = 120.4 RSD) (2.1% of total GDP) in 2013, EUR1.296 mn (3.5% of total GDP) in 2013, and is forecast to rise by and is forecast to rise by 1,1% in 2015, and to rise by 5,2% pa, 2,9% in 2015, and to rise by 3,7% pa, from 2015-2025, to EUR 1.910 from 2015-2025,GDP: to RSD TOTAL 131 bnCONTRIBUTION (2,5% of total GDP) in 2024. mnGDP: (3,8% TOTAL of total CONTRIBUTION GDP) in 2024.

RSD 231 bn (6.1% of GDP) in 2014, and is forecast to rise by EUR 4.707 mn (12,7% of GDP) in 2013, and is forecastto rise by 2,5% 1,1% in 2015, and to rise by 4,8% pa to RSD373 bn (7,2% of in 2015, and to rise by 3,8% pa to EUR EMPLOYMENT:GDP) TOTAL in 2024. CONTRIBUTION 7.027EMPLOYMENT: mn (13,8% of GDP) TOTAL in 2024 CONTRIBUTION 87.500 jobs 103.500 jobs

6,4% of total employment ( ). This is expected to 13,0% of total employment ( ). This is expected to rise rise by 0,7% in 2015 to 88.000 jobs and rise by 1,3% pa to by 0,9% in 2015 to 104.500 jobs and rise by 1,6% pa to 122.000 jobs 100.000 jobsVISITOR in 2024 EXPORT (7,5% of total). in 2025VISITOR (14,6% EXPORT of total)

Visitor exports generated RSD 117 bn (6,5% of total exports) in Visitor exports generated EUR2,240.7mn (8.0% of total exports) in 2014. This is forecast to grow by 2,1% in 2015, and grow by 2013. This is forecast to grow by 5.0% in 2015, and grow by 3.7% pa, 5,7% pa, from 2015-2024, to RSD 208 bn in 2024 (7,0% of total). from 2015-2025, to EUR3,378.3mn in 2024 (8.8% of total). INVESTMENT INVESTMENT

Travel & Tourism investment in 2014 was RSD 28 bn, or 4,4% 9,4% of total investment. It should rise by 4,3% in 2014, and rise by of total investment. It should rise by 2,9% in 2014, and rise by 4,4% pa over the next ten years to EUR1.137 mn in 2024 (10,0% of 2,6% pa over the next ten years to RSD 37 bn in 2024 (4,2% of Source: WTTC (World Travel & Tourism Council), Country Reports total). total). Source: WTTC (World Travel & Tourism Council), Country Reports 95

103 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Table 2 - International Tourist Arrivals in the World in 2013, Change (%) 2012-2013

Table 2 -Table International 2 - International Tourist Tourist Arrivals Arrivals in in thethe World World in in2013, 2013, Change Change (%) 2012-2013 (%) 2012-2013 Change Rank ARRIVALS (%) Change Rank ARRIVALS Rank ARRIVALS (%)Change (%) 1 France1 France 83 83 2,2 2,2 2 United2 StatesUnited States 70 70 4,7 4,7 1 France 83 2,2 3 Spain3 Spain 61 61 5,6 5,6 2 United States 70 4,7 4 China4 China 56 56 -3,5 -3,5 3 Spain 61 5,6 5 Italy5 Italy 48 48 2,9 2,9 4 China 56 -3,5 6 Turkey6 Turkey 38 38 5,9 5,9 5 Italy 48 2,9 7 Germany7 Germany 32 32 3,7 3,7 6 Turkey 38 5,9 8 United8 KingdomUnited Kingdom 31 31 6,4 6,4 7 Germany 32 3,7 9 Russian9 Russian Federation Federation 28 28 10,210,2 8 United Kingdom 31 6,4 10 Thailand10 Thailand 26,5 26,5 18,818,8 Source: UNWTO – Tourism Monitor Highlights9 Russian 2015. Federation 28 10,2

10 Thailand 26,5 18,8 Source: UNWTOSource: – UNWTO Tourism Monitor– Tourism Highlights Monitor Highlights 2015. 2015.

Table 3 - International Tourism Receipts in the World in 2013, Change (%) 2012-2013 Table 3 - International Tourism Receipts in the World in 2013, Change (%) 2012-2013

Table 3 - International Tourism Receipts in the World in 2013, Change (%) 2012-2013 RECEIPTS - Change (%) Rank RECEIPTS - Change (%) Rank BillionBillion 2013 2013-2014-2014 RECEIPTS - Change (%) Rank 1 United States 140 Billion 2013-201410,6 2 Spain 60 3,9 1 United States 140 10,6 3 France 56 1,3 2 Spain 60 3,9 4 China1 United States 52 140 10,61,4 3 France 56 1,3 5 Macao2 Spain (China) 52 60 3,918,1 4 China 52 1,4 3 France 56 1,3 6 Italy6 Italy 44 44 3,1 3,1 5 Macao (China) 52 18,1 7 Thailand4 China 42 52 1,423,1 6 Italy 44 3,1 8 Germany5 Macao (China) 41 52 18,14,5 7 Thailand 42 23,1 9 United Kingdom 41 13,2 8 Germany 41 4,5 10 Hong7 Thailand Kong (China) 39 42 23,117,7 9 United Kingdom 41 13,2 8 Germany 41 4,5 Source: UNWTO – Tourism10 Monitor Hong Highlights Kong (China) 2015. 39 17,7 Source: UNWTO – Tourism Monitor Highlights9 United 2015. Kingdom 41 13,2

10 Hong Kong (China) 39 17,7 Source: UNWTO – Tourism Monitor Highlights 2015.

104 104 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

CHAPTERCHAPTER 3 3

TableTable 4 – 4 List – List of ofUnesco Unesco heritage heritage

CountriesCountries SITESSITES HERITAGE

Lombardia (9 - Incisioni rupestri della Val Camonica, Chiesa e Convento Domenicano di Santa Maria delle Grazie con “L’Ultima Cena” di Leonardo da Vinci (Milano), Crespi d’Adda, Sacri LombardiaMonti del Piemonte(9 - Incisioni e della rupestri Lombardia, della Val Monte Camonica, San Giorgio, Chiesa e Mantova Convento e DomenicanoSabbioneta, Ferrovia di Santa reticaMaria

neldelle paesaggio Grazie con dell’Albula "L'Ultima e Cenadel Bernina," di Leonardo Longobardi da Vinci in (Milano),Italia: i luoghi Crespi del d'Adda, potere, Sacri Siti palafitticoliMonti del Piemonte e della Lombardia, Monte Sanpreistorici Giorgio, attorno Mantova alle e Sabbioneta,Alpi) Ferrovia retica nel paesaggio dell'Albula e del Bernina, Longobardi in Italia: i luoghi del potere, Siti palafitticoli preistorici attorno Eusair Italian regions Trentino Alto Adige (2 – Dolomiti;alle Siti Alpi) palafitticolipreistorici attorno alle Alpi )

39 Trentino Alto Adige (2 – Dolomiti; Siti palafitticolipreistorici attorno alle Alpi ) Eusair Italian regions Friuli Venezia Giulia (4 - Zona archeologica e Basilica patriarcale di Aquileia, Dolomiti, Longobardi in Italia: i luoghi del potere, Siti palafitticoli preistorici attorno alle Alpi), Friuli Venezia Giulia (4 - Zona archeologica e Basilica patriarcale di Aquileia, Dolomiti, Longobardi in Italia: i luoghi del potere, Siti palafitticoli preistorici attorno alle Alpi), 39 Veneto (6 - Venezia e la Laguna, Città di Vicenza e le ville palladiane del Veneto, Orto botanico di Padova, Città di Verona, Dolomiti, Siti preistorici attorno alle Alpi) Veneto (6 - Venezia e la Laguna, Città di Vicenza e leville palladiane del Veneto, Orto botanico di Padova, Cittàdi Verona, Dolomiti, Siti preistorici attorno alle Alpi) Emilia Romagna (3 -Ferrara città del Rinascimento e ildelta del Po, Monumenti paleocristiani di Emilia RomagnaRavenna, (3 -Ferrara Cattedrale, città del TorreRinascimento Civica e Piazzae il delta Grande del Po, di Monumenti Modena), paleocristiani di Ravenna, Cattedrale, Torre Civica e Piazza Grande di Modena),

UmbriaUmbria (2 (2 - -Assisi, Assisi, la la basilica basilica di di San San Francesco, Francesco, Basilica Basilica di di Santa Santa Maria Maria degli degli Angeli Angeli e Palazzodele Palazzo del Capitano) Capitano) Marche (1- Centro storico di Urbino)

MarcheAbruzzo (1- Centro (0); storico Molise di (0) Urbino)

Puglia (3 - Monte Sant’Angelo,Abruzzo (0); Castel Molise del (0)Monte, Trulli di Alberobello)

Puglia (3 - MonteCalabria Sant'Angelo, (1 - Celebrazione Castel del delleMonte, grandi Trullidi strutture Alberobello) processionali a spalla)

Sicilia (8 - VillaCalabria romana (1 del - CelebrazioneCasale, Area dellearcheologica grandi strutture di Agrigento, processionali Isole Eolie, a spalla) Città tardo barocche Siciliadel Val(8 - di Villa Noto, romana Siracusa del eCasale la necropoli, Area archeologicadi rupestre di Pantalica Agrigento, Teatro Isole dei Eolie, Pupi Cittàsiciliani, tardo Etna, barocche Pratica del agricola tradizionale di coltivare la ‘vite ad alberello’ della comunità di Pantelleria Val di Noto, Siracusa e la necropoli rupestre di Pantalica Teatro dei Pupi siciliani, Etna, Pratica agricola tradizionale di coltivarela 'vite ad alberello' della comunità di Pantelleria Bosnia & Herzegovina 2 Old Bridge Area of the Old City of Mostar & Mehmed,Paša Sokolovic Bridge in Višegrad š š Bosnia &Albania Herzegovina 22 Old Bridge Area of the OldButrint City of & Mostar Historic & Mehmed,PaCentres of Berata Sokolovic and Gjirokastra Bridge in Vi egrad

Temple of Apollo Epicurius at Bassae, Acropolis, Athens, Archaeological Site of Delphi, Medieval Albania 2 City of Rhodes, Meteora,Butrint Mount & Athos, Historic Paleochristian Centres of Berat and Byzantineand Gjirokastra Monuments of Thessalonika, Sanctuary of Asklepios at Epidaurus, Archaeological Site of Mystras, Archaeological Site of Olympia, Delos, Monasteries of Daphni, Hosios Loukasand Nea Moni of Chios, Pythagoreion and Heraion of TempleSamos, of Archaeological Apollo Epicurius Site at of Bassae, Aigai Acropolis,(modern name Athens, Vergina), Archaeological Archaeological Site of Delphi,Sites of Medieval Mycenae City and of Tiryns, The Historic Centre (Chorá) with the Monastery of Saint-John the Theologian and the Cave of Greece 17 Rhodes, Meteora, Mount Athos, Paleochristian and Byzantine Monuments of Thessalonika, Sanctuary of the Apocalypse on the Islandof Pátmos, Old Town of Corfu Asklepios at Epidaurus, Archaeological Site of Mystras, Archaeological Site of Olympia, Delos, Monasteries of Daphni, Hosios Loukasand Nea Moni of Chios, Pythagoreion and Heraion of Samos, Greece Archaeological Site of Aigai (modern name Vergina), Archaeological Sites of Mycenae and Tiryns, The Montenegro 2 Natural and Culturo-Historical Region of Kotor, Durmitor National Park 17 Historic Centre (Chorá) with the Monastery of Saint-John the Theologian and the Cave of the Apocalypse on the Islandof Pátmos, Old Town of Corfu Serbia 4 Gamzigrad-Romuliana, Palace of Galerius, Medieval Monuments in Kosovo, Stari Ras and Sopoćani, Montenegro 2 Natural and Culturo-HistoricalStudenica Region Monastery of Kotor, Durmitor National Park ć (Historical Complex of Split with the Palace of Diocletian, Old City of Dubrovnik, Plitvice Lakes Gamzigrad-Romuliana, Palace of Galerius, Medieval Monuments in Kosovo, Stari Ras and Sopo ani, National Park, Episcopal Complex of the Euphrasian Basilica in the Historic, Centreof Poreč, Historic CroatiaSerbia 74 City of Trogir,Studenica The Cathedral Monastery of St Jamesin Šibenik Stari Grad Plain č (Historical Complex of Split with the Palace of Diocletian, Old City of Dubrovnik, Plitvice Lakes National Park, Episcopal Complex of the Euphrasian Basilica in the Historic, Centreof Pore , Historic City of Croatia 7 Heritage of Mercury. Almadén andTrogir, Idrija ThePrehistoric Cathedral Pile of dwellings St Jamesin around the Alps Natural: Slovenia Š 3 Škocjan Caves ibenik Stari Grad Plain EU 28 326 Heritage of Mercury. Almadén and IdrijaŠ Prehistoric Pile dwellings around the SloveniaEU 28 3263 Alps Natural: kocjan Caves Adriatic-Ionian Region Adriatic-Ionian Region 76 76

105 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

TableTable 5 5 – – List List of of national national Parks Parks

ItalianItalian Adriatic Adriatic and and AlbaniaAlbania (15) CroatiaCroatia (8) (8) GreeceGreece (13) (13) MontenegroMontenegro (5) (5) IonianIonian Regions Regions (15) (15)

Bredhi i Drenoves Brijuni Lake Mikri Prespa Scadar Lake Alta Murgia (Skadarsko Lake) Bredhi i Brijuni Lake Mikri Prespa Scadar Lake Alta Murgia BredhiDrenoves i Hotoves Kornati Mount Olympus (SkadarskoLovcen Lake) Gargano

Bredhi i Hotoves Kornati Mount Olympus Lovcen Gargano Butrinti Krka Vikos-Aoos / Biogradska Gora Abruzzo, Lazio e Zagorohoria Molise Butrinti Krka Vikos-Aoos / Biogradska Gora Abruzzo, Lazio e Molise Zagorohoria Durmitor (with 2 Gran Sasso e Monti Llogara Mljet Valia Calda / Pindos Durmitorgreat rivers(with 2 -great Tara Gran Sassodella e Monti Laga della Llogara Mljet Valia Calda / Pindos rivers - andTara Piva)and Piva) Laga Vikos-Aoos / Lugina e Valbone Paklenica Zagorohoria Prokletije Majella Lugina e Valbone Vikos-Aoos / Paklenica Prokletije Majella Zagorohoria Lumi Buna dhe BosniaBosnia & & Lumi Buna dhe Plitvice Valia Calda / Pindos Monti Sibillini territoret ligatinore HerzegovinaHerzegovina (3) (3) territoret ligatinore Plitvice Valia Calda / Pindos Monti Sibillini perrethperreth tij Kozara National Marine Lura Risnjak KozaraSutjeska Appennino Park of Alonissos, Tosco-Emiliano NationalNorth Marine Sporades Park of Lura Risnjak Alonissos, North Sutjeska Appennino

Sporades Tosco-Emiliano

Foreste Casentinesi, Mali i Dajtit Sjeverni Velebit Mt Parnassos Una Monte Falterona, Foreste Casentinesi, Campigna Mali i Dajtit Sjeverni Velebit Mt Parnassos Una Monte Falterona, Campigna Serbia (5) Slovenia (1) Mali i Tomorrit Serbia (5) Mt Oiti Slovenia (1) Dolomiti Bellunesi Mali i Tomorrit Mt Oiti Dolomiti Bellunesi Pisha e Divjakes Đerdap Mt Parnitha Triglav National Dolomiti Friulane

Pisha e Divjakes Đerdap Mt Parnitha Triglav NationalPark Park Dolomiti Friulane Pjesa shqiptare e Pjesa shqiptare e Kopaonik Sounion Prealpi Giulie LiqenitLiqenit te Shkodres te Kopaonik Sounion Prealpi Giulie Shkodres Prespa Tara Ainos (Cefalonia) Stelvio – Stilfserjoch Prespa Tara Ainos (Cefalonia) Stelvio – Stilfserjoch

Š Appennino Lucano - Val d’Agri – Qafe-Shtame Šarar Mountain Gole di Samaria Appennino Lucano - Val Qafe-Shtame Gole di Samaria d'AgriLagonegrese – Lagonegrese

š Thethi Fru ka Gora Aspromonte Zall-Gjocaj Pollino 98

106 A European strategy for the tourism sector in the Adriatic and Ionian Region (EUSAIR): competitiveness, internationalization and sustainability

Table 6 – Details of Index of Global Travel & Tourism Competitiveness Index (TTCI), Table 6 – Details of Index of Global Travel & Tourism Competitiveness Index (TTCI),

PolicyPolicy rules and and regulations regulations ICTICT infrastructure infrastructure Prevalence of foreign ownership ICT use for B-to-B transactions

PropertyPrevalence rights of foreign ownership ICT use use for forB-to B-to-C-B transactions transactions BusinessProperty impactrights of rules on FDI ICTIndividuals use for B-to -usingC transactions the Internet, % Visa requirements Fixed telephone lines/ pop Business impact of rules on FDI Individuals using the Internet, % Openness bilateral ASAs Visa requirements FixedBroadband telephone Internet lines/ pop subscribers/ pop Transparency of government policymaking Mobile telephone subscriptions/ pop Openness bilateral ASAs Broadband Internet subscribers/ pop N° of days to start a business Mobile broadband subscriptions/ pop Transparency of government policymaking Mobile telephone subscriptions/ pop CostN° of to days start to starta business, a business % GNI/capita PriceMobilePrice competitiveness broadbandcompetitiveness subscriptions/ in T&T in ind T&T pop ind GATS commitment restrictiveness (–)* Cost to start a business, % GNI/capita Ticket taxes and airport charges ( – ) Purchasing power parity EnvironmentalEnvironmentalGATS commitment sustainability sustainability restrictiveness (–)* Ticket taxes and airport charges ( – ) Stringency of environmental regulation FuelPurchasing price, power US$ parity cents/liter Enforcement of environmental regulation Extent and effect of taxation Stringency of environmental regulation Fuel price, US$ cents/liter Sustainability of T&T industry development Hotel price index, US$ Enforcement of environmental regulation Extent and effect of taxation Carbon dioxide emission, million tons/capita HumanHuman resources resources ParticulateSustainability matter of T&T industryconcentration, development µg/m³ EducationHotel price index, and US$ training Carbon dioxide emission, million tons/capita Primary education enrollment, net % ThreatenedParticulate matter species, concentration, % µg/m³ Education and training Secondary education enrollment, gross % EnvironmThreatened treaty species, ratification % ( – ) Primary education enrollment, net % Health and hygiene Quality of the educational system HealthEnvironm and treaty hygiene ratification ( – ) Secondary education enrollment, gross % Local availability specialized research & training Physician density/ , pop Quality of the educational system Access to improved sanitation, % pop Extent of staff training Physician density/ , pop Local availability specialized research & training Access to improved drinking water, % pop Availability of qualified labor Access to improved sanitation, % pop Extent of staff training Hospital beds/ , pop Hiring and firing practices Access to improved drinking water, % pop Availability of qualified labor PrioritizationPrioritization of of Travel Travel & Tourism & Tourism Ease of hiring foreign labor GovernmentHospital beds/ prioritization , pop of the T&T industry HIVHiring prevalence, and firing practices % adult pop Ease of hiring foreign labor T&T gov’t expenditure, % gov’t budget Business impact of HIV/AIDS Government prioritization of the T&T industry HIV prevalence, % adult pop Effectiveness of marketing to attract tourists Life expectancy, years T&T gov’t expenditure, % gov’t budget Business impact of HIV/AIDS Comprehensiveness of T&T data ( – ) NaturalNatural resources resources Effectiveness of marketing to attract tourists Life expectancy, years Timeliness of T&T data ( – ) N° of World Heritage natural sites Comprehensiveness of T&T data ( – ) Air transport infrastructure Quality of the natural environment AirTimeliness transport of infrastructureT&T data ( – ) N° of World Heritage natural sites Quality of air transport infrastructure Total known species Quality of the natural environment Airline seat kms/week, dom , millions Terrestrial biome protection ( – %) Quality of air transport infrastructure Total known species Airline seat kms/week, int’l, million Marine protected areas, % n/a n/a Departures/Airline seat kms/week, , pop dom , millions CulturalCulturalTerrestrial resources biomeresources protection ( – %) AirportAirline seatdensity/million kms/week, int’l, popmillion N°Marine of Worldprotected Heritage areas, % culturaln/a n/a sites Departures/ , pop N° of operating airlines Sports stadiums, seats/million pop , Airport density/million pop N° of World Heritage cultural sites International air transport network N° of int’l fairs and exhibitions N° of operating airlines Sports stadiums, seats/million pop , GroundGround transport transport infrastructure infrastructure Creative industries exports, % of world total* QualityInternational of roads air transport network TourismTourismN° of int’l infrastructure fairs infrastructure and exhibitions Quality of railroad infrastructure HotelCreative rooms/ industries pop exports, % of world total* QualityQuality of roads port infrastructure Presence of major car rental co ( – ) QualityQuality of railroad ground infrastructure transport network HotelATMs rooms/ accepting pop Visa cards/million pop RoadQuality density/million of port infrastructure pop Presence of major car rental co ( – ) Quality of ground transport network ATMs accepting Visa cards/million pop Source:Road Worlddensity/million Economic pop Forum, Travel and Tourism Competitiveness Report 2013.

Source: World Economic Forum, Travel and Tourism Competitiveness Report 2013. 99

107 100

This publication has been produced with the financial assistance of the IPA Adriatic Cross-Border Cooperation Programme. The contents of the documents and the publication are the sole responsibility of Molise Region and can under no circumstances be regarded as reflecting the position of the IPA Adriatic CBC Programme Authorities as well as the European Union.