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Proposal for Tourism Development Strategy of the Republic of Croatia

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Proposal for Tourism Development Strategy of the Republic of Croatia THE GOVERNMENT OF THE REPUBLIC OF CROATIA ____________________________________________________________________________________ PROPOSAL FOR TOURISM DEVELOPMENT STRATEGY OF THE REPUBLIC OF CROATIA UNTIL 2020 ___________________________________________________________________________________ Zagreb, February 2013 Tourism Development Strategy of the Republic of Croatia until 2020 Contents 1. Starting point .............................................................................................................................. 3 2. Croatian Tourism Today .............................................................................................................. 5 2.1 Tourism offer .................................................................................................................................... 5 2.1.1 Attractions ................................................................................................................................... 5 2.1.2 Tourist infrastructure .................................................................................................................. 5 2.1.3 Existing accommodation capacities ............................................................................................. 5 2.1.4 General infrastructure and accessibility ...................................................................................... 7 2.1.5 Products ....................................................................................................................................... 8 2.1.6 Human resources ....................................................................................................................... 10 2.2 Demand .......................................................................................................................................... 10 2.3 Effects ............................................................................................................................................. 14 2.4 Competitiveness Analysis ............................................................................................................... 15 2.5 Key questions and limitations of Croatian tourism ........................................................................ 19 3. Global development context and opportunities for Croatia ........................................................ 25 3.1. Global qualitative megatrends ...................................................................................................... 25 3.2 Tourism product development trends ........................................................................................... 25 3.3 Market opportunities for Croatia ................................................................................................... 27 4. Croatian tourism in 2020 ........................................................................................................... 28 4.1. Development principles ................................................................................................................. 28 4.2. The vision for Croatian tourism development............................................................................... 30 4.3. Strategic goals and tasks of Croatia's tourism development ........................................................ 31 5. Operative strategies .................................................................................................................. 31 5.1 Marketing ....................................................................................................................................... 31 5.1.1. Target market strategies .......................................................................................................... 32 5.1.2 Market segmentation strategy .................................................................................................. 32 5.1.3 Tourist products system in Croatia ............................................................................................ 33 5.1.4 Image and promotion ................................................................................................................ 36 5.2. Development of the Tourism Offer ............................................................................................... 36 5.2.1 Product development ................................................................................................................ 36 5.2.2 Privatisation and the activation of state property in tourism ................................................... 47 5.2.3 Improving accommodation ....................................................................................................... 48 5.2.4 Improving the remaining tourism offer ..................................................................................... 51 5.3 Investments .................................................................................................................................... 53 5.3.1 Investment strategy ................................................................................................................... 53 5.3.2 Investment environment ........................................................................................................... 55 5.3.3 Using EU funds ........................................................................................................................... 56 5.4. Human resources development .................................................................................................... 57 5.5 Process management ..................................................................................................................... 59 6. Economic effects ....................................................................................................................... 62 6.1 Period between 2013 and 2020 ..................................................................................................... 62 6.2 The period between 2021 and 2025 .............................................................................................. 64 6.3 Total effects from 2013 to 2025 ..................................................................................................... 65 7. Action plan ............................................................................................................................... 65 Appendix ...................................................................................................................................... 70 Appendix 1 Detailed description of tourism policy measures.............................................................. 71 Appendix 2 Investment project locations with high potential ............................................................. 95 2 Tourism Development Strategy of the Republic of Croatia until 2020 1. Starting point Since the formation of the independent nation state, Croatian tourism has gone through a twenty-year transition process burdened with all the problems and contradictions of the economic and social development of the country. Carrying the burden of inherited and fairly ineffective business structure, and faced with the consequences of the war and the effects of different and often below par privatisation models, Croatian tourism still managed to show its vitality thanks to the strength and interest of the international market, the attractiveness of the country, and most of all the resilience of tourism as a reaction to occasional global events. Despite all the troubles that Croatia faced in the recent past, tourism has had significantly better business results, especially since 2000, and in the Global Financial Crisis it has shown good resilience over several years, which has been confirmed in higher growth rates from those achieved in its competitive environment (the Mediterranean). It is likely, however, that with joining the EU Croatia will be facing new challenges, as well as new opportunities in tourism. The European Union recognizes Croatia as a tourism destination with great potential, and our task therefore is fully to use that potential in the interest of our own prosperity, and to use the sustainable development value system and EU competitive strategy in the field of tourism. In this context, the main development document of Croatian tourism, "Tourism Development Strategy of the Republic of Croatia until 2020", created in the anticipation of Croatia's imminent accession to the European Union, should provide direction and open new areas for the development of tourism in the coming period. Pronounced economic and political instability at global level and in the European Union, new conditions of Croatia's micro-environment as well as dynamic changes to consumer expectations in the global tourist market all point to the necessity of re-examining the current tourism development model in Croatia with the aim of implementing developmental guidelines and operative strategies for the coming period. Thus, Tourism Development Strategy of the Republic of Croatia until 2020 both answers the question what type of tourism does Croatia wish and need to develop, and determines key activities of tourism policy aimed at ensuring production, institutional, organisational and human preconditions for the improvement of competitive capacities of Croatian tourism, while using resources based on the principles of responsible and sustainable development. Finally, since this is a document which should ensure Croatia's integration into a consolidated
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