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Former Yugoslav Republic of Macedonia (Fyrom) II. PARTNER COUNTRY PROFILES – FORMER YUGOSLAV REPUBLIC OF MACEDONIA (FYROM) Former Yugoslav Republic of Macedonia (FYROM) Tourism in the economy Tourism directly contributed MKD 6.4 billion or 1.3% of GDP in 2013, and accounted for 3.3% of total employment. Estimates for 2014 indicate the direct contribution to GDP to be MKD 7.3 billion (1.4% of GDP), rising to MKD 27.4 billion or 5.2% of GDP when the wider effects from investment, the supply chain and induced income impacts are taken into account. Tourism supported an estimated 33 000 jobs in 2014, equivalent to 4.7% of total employment (WTTC). International tourist arrivals rose to 425 314 in 2014, up 6.4% on the previous year. International travel receipts rose by 10.4% over the same period to USD 298 million. Turkey was the biggest source market, followed by Greece, Serbia, Bulgaria and the Netherlands. Tourism governance and funding The Ministry of Economy is charged with responsibility for tourism, with this work being undertaken by the Tourism Department and the Agency for Promotion and Support for Tourism. The Committee for Tourism is an overarching body led by the Prime Minister which is made up of stakeholders from the ministries of Economy, Transport and Communications, Culture, Agriculture and Finance, as well as the Agency for Promotion and Support for Tourism, the Agency for Promotion and Investment, tourism chambers and non- governmental organisations and other relevant institutions. The Ministry of Economy oversees the Agency for Promotion and Support of Tourism and its activities to raise awareness of and promote the FYROM as a destination internationally and to support sustainable tourism development. Municipalities are in charge of tourism development and promotion at a local level, including the formation of destination management organisations. Municipalities link the Agency for Promotion and Support of Tourism concerning promotion and marketing and the Tourism Department in the Ministry of Economy concerning law, policies, and the system of classification and categorisation as they relate to tourism. The budget of the Tourism Department of the Ministry of Economy is about EUR 250 000 and is drawn from the national budget. The budget for the Agency for Promotion and Support of Tourism is about EUR 3 million and is supported by the national budget and an accommodation tax. There are also some special funds for tourism development largely from European Union sources but also from other international donors. 336 OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 II. PARTNER COUNTRY PROFILES – FORMER YUGOSLAV REPUBLIC OF MACEDONIA (FYROM) Former Yugoslav Republic of Macedonia: Organisational chart of tourism bodies Committee for Tourism (Inter-Ministerial Body) Ministry of Economy Agency for Promotion Tourism Department and Support of Tourism Promotion, Analytics and Unit for Research, International Co-operation Classification and Analysis Department Unit for International Support, Project in Tourism Co-operation and Administration Department Source: OECD, adapted from Ministry of Economy, 2016. Tourism policies and programmes The Former Yugoslav Republic of Macedonia sees considerable potential for strong growth in tourism development and foreign investment. By branding the country under the slogan “Timeless”, the Republic is seeking to position itself as a destination that shows different perspectives on time and provides unique experiences, communicating diverse religions and ethnic groups. The country has developed market segments described through six products that communicate the six human senses. National laws covering catering and tourism have been harmonised with relevant European legislation. These govern the delivery of tourism in line with the overall National Development Strategy 2012-18. The vision for tourism is to establish the country’s image as a prime European destination for environmentally-enriched culture and nature-based tourism which intends to become recognised for its high quality and sustainable products and services developed in line with global best practice. The country has a programme for promoting the competitiveness of small and medium- sized enterprises, including those in the tourism sector. It is active in training tourism industry personnel in the hospitality sector and via special courses at hospitality colleges. A number of tourism development plans aim to create a vibrant tourism sector that can expand its contribution to the economy. These seek to support the sector through a variety of programmes and initiatives including the development of specific tourism subsectors such as cultural, lake-based, hunting, rural, archaeological, mountain and wine tourism, in addition to promoting the congress sector. Work continues on the categorisation of tourism facilities, through the adoption of the universal Rulebook on Categorisation by the Hotelstars Union. This is being extended through the adoption of special rulebooks for national restaurants and for accommodation facilities in rural areas. A number of topics have been the subject of tourism policy reforms, including: ● Reduction of VAT on tourism from 18% to 5%, ● Attraction of foreign investment for construction of hotels and tourist facilities, OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 337 II. PARTNER COUNTRY PROFILES – FORMER YUGOSLAV REPUBLIC OF MACEDONIA (FYROM) ● Tourism Development Zones, ● One image - one brand for Macedonia as a tourist destination, ● Macedonia Timeless Campaign, ● Tour operator and airline subsidies. The Tourism Development Zones aim to attract investors by offering an initial bidding price for zoned land at EUR 1/m2, personal income tax of 0% for the first 10 years, Value Added Tax for construction matters and construction services of 0%, training and job creation grants, and connection to utilities, with complete infrastructure outside the boundaries of the Tourism Development Zones provided by the Government. In order to stimulate the organised international tourism market, the Government decided to provide subsidies towards the costs of travel and tourism programmes developed and sold by tour operators and airlines bringing international visitors to the country. These subsidies range from EUR 25 for European countries to EUR 65 for some special tourism markets, with EUR 45 for intercontinental flights. 338 OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 II. PARTNER COUNTRY PROFILES – FORMER YUGOSLAV REPUBLIC OF MACEDONIA (FYROM) Statistical profile Table 1. Former Yugoslav Republic of Macedonia: Domestic, inbound and outbound tourism 2010 2011 2012 2013 2014 TOURISM FLOWS, THOUSAND Domestic tourism Total domestic trips .. .. .. .. .. Overnight visitors (tourists) 325 320 312 302 310 Same-day visitors (excursionists) .. .. .. .. .. Nights in all types of accommodation 1 461 1 418 1 340 1 276 1 273 Hotels and similar establishments 236 236 238 241 257 Specialised establishments 194 198 195 200 202 Other collective establishments 288 261 240 200 162 Private accommodation 744 723 667 635 652 Inbound tourism Total international arrivals .. .. .. .. .. Overnight visitors (tourists) 262 327 351 400 425 Same-day visitors (excursionists) .. .. .. .. .. Top markets Turkey 20 39 50 68 64 Greece 27 46 44 46 43 Serbia 36 36 37 38 41 Bulgaria 16 19 20 21 26 Netherlands 722272626 Nights in all types of accommodation 559 755 812 881 923 Hotels and similar establishments 469 667 727 796 827 Specialised establishments .. .. .. .. .. Other collective establishments 50 45 43 44 49 Private accommodation 10 15 15 13 16 Outbound tourism Total international departures .. .. .. .. .. Overnight visitors (tourists) .. .. .. .. .. Same-day visitors (excursionists) .. .. .. .. .. Top destinations .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. TOURISM RECEIPTS AND EXPENDITURE, MILLION USD Inbound tourism Total international receipts 199 243 236 270 298 International travel receipts 197 240 234 267 295 International passenger transport receipts 2 2 3 3 3 Outbound tourism Total international expenditure 131 159 153 168 186 International travel expenditure 92 113 111 131 149 International passenger transport expenditure 39 46 42 37 37 .. Not available Disclaimer: http://oe.cd/disclaimer Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933320885 OECD TOURISM TRENDS AND POLICIES 2016 © OECD 2016 339 II. PARTNER COUNTRY PROFILES – FORMER YUGOSLAV REPUBLIC OF MACEDONIA (FYROM) Table 2. Former Yugoslav Republic of Macedonia: Enterprises and employment in tourism Number of Number of persons employed establishments 2014 2010 2011 2012 2013 2014 Total 4 493 20 425 20 445 21 909 24 741 .. Tourism industries .. .. .. .. .. .. Accommodation services for visitors .. .. .. .. .. .. Hotels and similar establishments .. .. .. .. .. .. Food and beverage serving industry .. .. .. .. .. .. Passenger transport .. .. .. .. .. .. Air passenger transport .. .. .. .. .. .. Railways passenger transport .. .. .. .. .. .. Road passenger transport .. .. .. .. .. .. Water passenger transport .. .. .. .. .. .. Passenger transport supporting services .. .. .. .. .. .. Transport equipment rental .. .. .. .. .. .. Travel agencies and other reservation services .. .. .. .. .. .. industry Cultural industry .. .. .. .. .. .. Sports and recreation industry .. .. .. .. .. .. Retail trade of country-specific tourism .. .. .. .. .. .. characteristic goods Other country-specific tourism industries .. .. .. .. .. .. Other industries
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