Sustai nable Tourism Development in the Western Balkans Yoojung Ahn, Humay Guliyeva, Scott Leo Alida Meghji, Yaninee Nachom, Reiko Okumura School of International and Public Affairs (SIPA) | Columbia University 1 Table of Contents Acknowledgement ............................................................................................................................... 1 Glossary ................................................................................................................................................... 2 Executive Summary ............................................................................................................................. 5 Section 1: Introduction Section1.1: Project Rationale ..................................................................................................... 6 Section1.2: Project Objectives ................................................................................................... 6 Section1.3: International Trade Centre ..................................................................................... 7 Section1.4: Bridging SME Development and Sustainable Tourism Development ................... 7 Section 2: Theoretical Framework Section2.1: Sustainable Tourism and Development ............................................................... 9 Section2.2: Global Case Studies ............................................................................................... 14 Section 3: Methodology ...................................................................................................................... 21 Section 4: Albania Section 4.1: Geographic, Historical and Political Context .................................................... 24 Section 4.2: Economic Context .............................................................................................. 25 Section 4.3: Tourism Sector Overview .................................................................................. 26 Section 4.4: Legal Context ...................................................................................................... 29 Section 4.5: Tourism Products ............................................................................................... 30 Section 4.6: Tourism Services .................................................................................................. 42 Section 4.7: Regional Tourism Integration .............................................................................. 44 Section 5.8: Overall Context Evaluation ................................................................................ 45 Section 5: Bosnia and Herzegovina (BiH) Section 5.1: Geographic, Historical and Political Context .................................................... 46 Section 5.2: Economic Context .............................................................................................. 48 Section 5.3: Tourism Sector Overview .................................................................................. 49 Section 5.4: Legal Context ...................................................................................................... 52 Section 5.5: Tourism Products ............................................................................................... 52 Section 5.6: Tourism Services ................................................................................................ 63 Section 5.7: Regional Tourism Integration ............................................................................ 66 Section 5.8: Overall Context Evaluation ................................................................................ 67 Section 6: Former Yugoslav Republic of Macedonia Section 6.1: Geographic, Historical and Political Context .................................................... 69 Section 6.2: Economic Context .............................................................................................. 70 Section 6.3: Tourism Sector Overview .................................................................................. 71 2 Section 6.4: Legal Context ........................................................................................................ 73 Section 6.5: Tourism Products ............................................................................................... 74 Section 6.6: Tourism Services ................................................................................................ 86 Section 6.7: Regional Tourism Integration ............................................................................ 89 Section 6.8: Overall Context Evaluation ................................................................................ 90 Section 7: Montenegro Section 7.1: Geographic, Historical and Political Context .................................................... 91 Section 7.2: Economic Context .............................................................................................. 92 Section 7.3: Tourism Sector Overview .................................................................................. 92 Section 7.4: Legal Context ...................................................................................................... 95 Section 7.5: Tourism Products ............................................................................................... 97 Section 7.6: Tourism Services .............................................................................................. 108 Section 7.7: Regional Tourism Integration ......................................................................... 111 Section 7.8: Overall Context Evaluation ............................................................................. 112 Section 8: Serbia Section 8.1: Geographic, Historical and Political Context .................................................. 113 Section 8.2: Economic Context ............................................................................................ 115 Section 8.3: Tourism Sector Overview .................................................................................. 116 Section 8.4: Legal Context .................................................................................................... 118 Section 8.5: Tourism Products ............................................................................................. 119 Section 8.6: Tourism Services .............................................................................................. 129 Section 8.7: Regional Tourism Integration ......................................................................... 132 Section 8.8: Overall Context Evaluation ............................................................................. 134 Section 9: Economic Development and Regional Integration in the Western Balkans Section 9.1: Regional Political Framework and Integration ............................................... 135 Section 9.2: EU Accession .................................................................................................... 138 Section 9.3: Regional Weaknesses ...................................................................................... 143 Annex 1: Comparative Table ............................................................................................................. 152 Annex 1: Comparative Table ............................................................................................................. 152 Annex 2: List of Interviewees .................................................................................................. 160 Annex 3: Bibliography .............................................................................................................. 170 3 Acknowledgments The SIPA team extends its gratitude to the numerous individuals and organizations that have supported this study and provided us with valuable resources and knowledge. In particular, we would like to thank Elena Boutrimova, Sabina Timco, and Emmanuel Barreto at the International Trade Centre, as well as Gustavo Olivares, Eugenia McGill, Melissa Giblock, Gordon Bardos, and Radmila Gorup at Columbia University. The ongoing support provided by Columbia University’s School of International and Public Affairs and the Economic and Political Development concentration made this endeavor possible. Our feasibility study could not have moved forward as it did without the depth and contextual richness provided by the diverse set of individuals the team met with during field visits in January and March, 2009. These individuals are, by country: Albania: Lauren Bohtaka, Marissa Bowersox, Luan Dervishej, Eva Dhima, Alma KospiriIna, Ols Lafe, David Milne, Laura Payne, Nevila Popa, Sonia Popa, Ervin Qafmolla, Elenita Roshi, Ina Vesju, and Emiljano Zhuleko. Bosnia and Herzegovina: Daria Antenucci, Viktor Bjelic, Emir Dervisevic, Maja Dosenovic, Nikola Drakovic, Rubeena Esmail‐Arndt, Mirza Ferhatbegovic, Biljana Josic‐Bajic, Milos Komljenovic, Kanao Itoh, Vladimir Milin, Natasa Olenjuk, Erkan Ozcelik, Dunja Pejic, Sanela Smajlovic, Jadranka Stojanovic, and Mladen Sukalo. The Former Yugoslav Republic of Macedonia: Chris Deliso, Arsenije Janevski, Goran Janevksi, Anita Kodzoman, Patrice Koerper, Iva Koreca, Zoran Nikolovski, Nehat Ramadani, Avraham Rosental, Doncho Tanevsky, and all those that took part in the Ohrid International Tourism Fair (January 17‐20, 2009). Montenegro: Ute Dannenmann, Kirsi Hyvaerinen, Milica Begovic Radojevic, and Slavica Vukcevic Serbia: Igor Bandovic, Namanja Ciric, Jasna