Slovenian tourism development strategy

Transcription

1 Slovenian tourism development strategy

2 SLOVENIAN TOURISM DEVELOPMENT STRATEGY Partnership for the sustainable development of Slovenian tourism In 2016, tourism in Slovenia will be based on sustainable development and will be, as a highly successful industry in the national economy, a major contribution to our country's social welfare and reputation in the world. June 2012

3 TABLE OF CONTENTS PARTNERSHIP FOR THE SUSTAINABLE DEVELOPMENT OF TOURISM 4 TO ACCOMPANY THE STRATEGY 6 INTRODUCTION 8 I. Tourism development in Slovenia in the period 9 II. Slovenian Tourism Strategy 10 III Slovenian Tourism Development Strategy (summary) INTRODUCTION Tourism as Slovenia's development opportunity The Brand of Slovenia 21 The Core of Slovenia's Brand Budget funds for tourism development The EU Roadmap The importance of tourism in the EU Important EU legal bases EU orientations Travel and tourism competitiveness index Challenges Identified obstacles in achieving greater competitiveness of Slovenian tourism Monitoring of tourism industry performance at national and entrepreneurial levels MISSION, VISION AND OBJECTIVES OF SLOVENIAN TOURISM DEVELOPMENT Mission, vision and objectives 36 Development areas (or activities) Principles of sustainability STRATEGIES Basic strategy Business strategy Levels of organisation, tourist destinations and basic policies of the tourism offer DESCRIPTION OF MEASURES AND ACTIVITIES Development area or activity 1: Encouraging competitiveness of Slovenian tourism Development area or activity 2: Ensuring a favourable business environment Development area or activity 3: Efficient and innovative marketing and promotion of Slovenia as an attractive tourist destination Objectives and Indicators FUNDS ENVISAGED FOR THE REALISATION OF THE SLOVENIAN TOURISM DEVELOPMENT STRATEGY 92 Enclosures 112 A. Slovenia's Development Strategies and B. The drawing up of the Slovenian Tourism Development Strategy 113 C. Justification for the proposal to increase budgetary funds for tourism development 116 2

4 LIST OF FIGURES Figure 1: Tourism inflow and outflow, Slovenia, , (in EUR 1 000) 17 Figure 2: Tourism flows by arrivals of foreign and domestic tourists, Slovenia, by years, Figure 3: Tourism flows by overnight stays of foreign and domestic tourists, Slovenia, by years, Figure 4: Domestic and foreign tourist overnight stays, Slovenia, Figure 5: The flows of the average periods of stays domestic and foreign tourists, Slovenia, Figure 6: The number of rooms and beds, Slovenia, (old and new methodology) 19 Figure 7: Brand of Slovenia 21 Figure 8: Budget and EU funds earmarked for tourism, Slovenia, (in EUR) 23 Figure 9: Data on actually realised municipality revenues obtained from tourist tax for the Figure 10: Data on actually realised municipality revenues obtained from concession fees and special games of chance in the period (in EUR) 25 Figure 11: Cover story of Slovenia as a tourist destination Slovenia. Green. Active. Healthy. 45 Figure 12: Objectives and development areas (priority areas marked green) 62 Figure 13: Interaction between measures and activities and long-term effects of investment in knowledge 67 Figure 14: Organisation of Slovenian tourism funding 76 LIST OF TABLES Table 1: Tourism data 16 Table 2: Objectives of the new EU tourism policy are the following 27 Table 3: Slovenia's ranking using different criteria 28 Table 4: The Slovenia's Travel and Tourism Competitiveness Index 29 Table 5: Competitive advantages 30 Table 6: Areas lacking competitiveness 30 Table 7: Presentation of physical and value indicators for the evaluation of performance effectiveness 32 Table 8: Development areas, measures and objectives 37 Table 9: General quantity and quality objectives and indicators 84 Table 10: Development areas (activities) and measures with objectives and indicators 85 Table 11: Framework financial plan by area (activity) during the period 99 Table 12: Review of the Slovenia's Development Strategy objectives 112 3

5 PARTNERSHIP FOR THE SUSTAINABLE DEVELOPMENT OF TOURISM Ministry of Economic Development and Technology Marjan Hribar, Acting Director-General of the Tourism and Internationalisation Directorate Where there is a will, there is a way. A strong will and a clearly set goal will make the road shorter and easier, especially if we combine our strengths. The new Slovenian Tourism Development Strategy has a sound foundation for the future: the direction that has been chosen by the partners of Slovenian tourism. We have committed ourselves to ensuring sustainable development of tourism in the future and no one will be a mere observer. We shall cooperate and act in a more responsible way, each in accordance with own powers and competences. We have set ourselves ambitious goals because we believe that, together, we can achieve them. The activities planned are numerous as we are aware that many challenges lie ahead of us. We are also aware that road can be difficult in places; however, this will not keep us from our goal. Through bad and good times, tourism has proved to be strong. Now, let's bravely continue on our way! Slovenian Tourist Board Maja Pak, Director In cooperation with the tourism industry, the Slovenian Tourist Board has established an umbrella framework and defined the competitive advantages of Slovenian tourism, key tourism products and target groups. On this basis, the Slovenian Tourism Development Strategy has laid down five basic orientations for the marketing of Slovenian tourism in the next five-year term. These are the following: increasing the recognisability of Slovenia on key markets, development of new markets, clear positioning of tourism products, efficient digital marketing, and increasing the volume of coordinated promotional activities through partnerships. The guiding principle of all activities is a sustainable approach. We are convinced that partnerships and clear objectives are crucial for Slovenia's tourism offer to be successful on the global tourist market in the future. The commitment to implementing strategic measures in the fields of development and marketing has been confirmed by signing the Declaration on Partnership for the Sustainable Development of Slovenian Tourism. Tourism and Hospitality Chamber of Slovenia Zdravko Počivalšek, President The Slovenian Tourism Development Strategy has set quality objectives and appropriate measures to enable a rational and sustainable development of tourism over the medium-term period. We believe that we can ensure, primarily through higher sales in foreign markets, the development of the tourism industry, which is of particular importance for national economy, and thus contribute to the prosperity of Slovenia. The strategy is comprehensive and takes into account all sectors, with policies and activities enabling the successful development of tourism. The responsibility is on all of us: politicians, business and civil society sectors. Only with joint efforts can we achieve a faster increase in tourism turnover and exports, create thousands of new jobs, and generate a multiplication of development effects in a number of other activities: from traffic and agriculture, sport and culture, the construction sector and the production of goods for tourist facilities and tourists, to trade and other services. It is for this reason that we have to manage this sector and implement its strategy in a concerted manner. The new tourism development strategy is also important because, due to the global economic crisis, our actions must be well considered so as to enable the growth and development of tourism in the future. The strategy will be carried out with a positive approach and the cooperation of all who are engaged in tourism or influence it through our work. The tourism industry sector, united in the Tourism and Hospitality Chamber of Slovenia, congratulates the Tourism and Internationalisation Directorate for taking a new approach when preparing the 'bottom-up' strategy and for playing an active and constructive role in these activities. 4

6 Chamber of Craft and Small Business of Slovenia, Tourism and Hospitality Section Mate Matjaž-Tomi, President The practice of unity and interoperability between all organisations dealing with hospitality and tourism must also be transposed to the cooperation of all hospitality and tourism service providers. I am confident that this will then translate into positive financial indicators. Hospitality and tourism encourage other economic activities, small and large, and with good work they can significantly help the Slovenian economy to overcome the current crisis. Tourist Association of Slovenia Peter Misja, President The tourism organisation within the Tourist Association of Slovenia an association with a hundred and seven years of tradition has been cooperating, as a social sector, with the public and private sector for a number of years, while being an equal and creative co-shaper of all major tourism developments and following the principles of partnership at local, regional and national levels, which will also continue in the future. Our permanent and priority tasks are and will remain the raising of public awareness about tourism and coexistence with tourists, with emphasis on the green sustainable tourism, care for the order of places, work with youth and their education for living with tourism and for tourism, cooperation at local, regional, national and international levels with all relevant private and institutional partners on the co-shaping of strategic orientations of Slovenian tourism and, of course, in particular their implementation. Dunja Wedam 5

7 TO ACCOMPANY THE STRATEGY Taleb Rifai, Secretary-General, United Nations World Tourism Organization (UNWTO) The impressive growth of tourism in Slovenia over the past decade is testimony not only to the country s breathtaking scenery, bustling towns and welcoming people, but also to the active and engaged approach of consecutive governments towards the sector. In Slovenia there exists a tangible recognition at all levels of the importance of tourism to the national economy, particularly in terms of job creation and regional development. The New Slovenia Tourism Strategy, , is further proof of this support and a key step towards consolidating Slovenia s image as a leading tourism destination in the heart of Europe. This new strategy represents more than simply a blueprint for growth. It is a commitment to a vision that by 2016, tourism in Slovenia will be entirely based on sustainable development. This is indeed a laudable goal. It is also the right one. Tourism strategies cannot afford to distance themselves from the principles of sustainability, both for the sake of the environment and if they are to achieve competiveness in the global tourism marketplace. It is ever more apparent that sustainability (in its three pillars; social, economic and environmental) and competitiveness are inseparable. Competitiveness can only be achieved by fully embracing sustainability. This new strategy touches on an impressive number of objectives and measures, yet sustainability underlines them all and represents the common thread running throughout this future vision of tourism in Slovenia. It is this focus that makes this the strongest possible tourism strategy. International tourism is an extremely competitive market, with new destinations continuously emerging and gaining market share. By placing sustainability at the heart of its strategy I have no doubt Slovenia will continue to protect and enhance its natural beauty, providing the country with its unique competitive edge for years to come. Leslie de Chernatony Professor of Brand Management Developing a strategic plan for a place brand represents one of the more daunting challenges for management. It is therefore commendable to see the Slovenian Tourism Development Strategy. The strategy is able to take advantage of the previous work to develop Slovenia as a well conceived brand. The respected branding gives Slovenia a competitive advantage, since with a clear vision for this brand, a focused cluster of benefits are being presented to the tourist market. It is easier to attract particular tourist segments when there is a well recognisable cluster of benefits. Furthermore those Slovenian groups that need to work together to deliver the Slovenia brand promise are better able to co-ordinate their coherent activities as they know which forms of behaviour reflect the desired Slovenia brand. Successful branding in the tourist market is not just about developing a brand but it s also about having a unified approach amongst different groups to deliver the brand promise. Pride and commitment enable locals to act in a natural manner when seeking to leave a lasting memory of the joys of being a tourist in Slovenia. The opportunities from Slovenia s growing number of tourist make this strategy document compelling reading. Maja Uran Maravić, Turistica Faculty of Tourism Studies, University of Primorska Maja Uran Maravić is an associate professor in the field of strategic management and quality management in tourism and a co-author of the previous tourism development strategy (Development Plan and Policies of Slovene Tourism ). 6 The essence of any good strategy for tourism development lies in the structure, the concepts of competitiveness, the inclusion of stakeholders and, especially, the willingness of all stake-holders to implement the set goals and activities. The term 'tourism strategy' is universally used in the public as a designation for the development of tourism and/or marketing plans for destinations, regions and countries. In other words, the tourism strategy is a fundamental long-term development plan of a destination, covering its further development in terms of competitiveness and/or its marketing. Therefore, it must have an adequate structure, which (according to the theory of strategic management) means that it has all basic phases: analysis of the situation, design, implementation and evaluation of the strategy.

8 In tourism planning, the sustainable and long-term competitiveness of a destination must be the top priority of the management at local and national levels. The competitiveness of a tourist destination is its ability that, despite the growing tourism offer (attractive destinations), it manages to provide an adequate level of tourist visits and, consequently, enhance the satisfaction of all stakeholders in the tourist system. Each tourist company should set the objective of establishing a system of a tourism offer that will attract and meet tourists' expectations of quality. Tourist visitors and their satisfaction with the destination will generate revenue, which are also a main goal. A good strategy should, above all, define how to compete on the market and how to remove the obstacles to increasing competitiveness. Tourism development falls under the responsibility of various stakeholders, from the government stakeholders (the Ministry of Economic Development and Technology, and the Tourism and Internationalisation Directorate), private ones (interests are pursued through the Slovenian Chamber of Commerce and Industry and interest groups) to public, civil or international organisations. Tourism is a service economic activity, its essential feature being that it markets national assets (i.e. mountains, beaches, sea, culture, history, etc.), which justifies its obligatory cooperation with the state administration as a trustee of a joint 'socially-owned property'. Hence, a successful development of tourism requires cooperation or an appropriate dialogue among all three stakeholders public, private and civil sectors. The Republic of Slovenia has already adopted its fifth national tourism development strategy. The implementation of each strategy has depended on the willingness of stakeholders. The new strategy has everything necessary to succeed; consequently, I only wish we would manage to implement it. Matevž Lenarčič 7

9 INTRODUCTION In 2011, we often looked back at the history of our young country. We were celebrating the twentieth anniversary of our independence; we were proud to do so, but this also drew attention to the fact that Slovenia is still far from the ideal of integration with the European and global political, economic and tourist spheres. Does the word 'ideal' even belong here at all? Does it not raise too many expectations too high? Yes, the word does actually belong here. We may never reach an ideal situation, but it is always best to strive for high goals, rather than being satisfied with grey mediocrity. Slovenia and Slovenian tourism, with rich endowments of natural and cultural heritage, deserve much more. With the development of the new tourism strategy being completed, we are already well into Although the country has a new government, this does not at all diminish our efforts towards sustainable development and the quality of national tourism. The objectives and values have remained the same. But so have the issues of national and international economies, only their resolutions seem to have significantly accelerated, albeit often in a painful way. Has this brought us closer to the end of the crisis? The awareness that tourism in all phases from development to marketing is part of the solution and not the problem will definitely help. By expanding the competences of the Tourism Directorate at the Ministry of Economy to internationalisation or international economic cooperation, our conviction about the importance of our sector in the overall national economy has been further confirmed. During the adoption of the new Slovenian tourism strategy, for at least four years the international economic situation has been facing daily news of company bankruptcies, growing unemployment, protests in front of financial institutions, concern for the future of the European currency and similar. In these precarious circumstances, the successful development of tourism and marketing undoubtedly provides a solution rather than presents part of the problem. According to the data provided by the World Tourist Organisation (UNWTO), 2011 saw remarkable trends in the development of tourism in all global regions, except for the so-called 'Arab Spring' in North Africa and the Middle East. The final data on Slovenian tourism show that Slovenia substantially exceeds the European average, and some foreign markets rank Slovenia among the 'stars' of this year's summer season, as international tourist arrivals have reached nearly a double-digit growth (nine per cent). Furthermore, in recent years, stakeholders and co-shapers of Slovenian tourism have reached a very broad consensus on the sustainable development of tourism. This means that tourism must be environmentally friendly, protective towards national and local culture, and focused on maintaining social balance in terms of prosperity for every individual, family, society, and thus our country. Last but not least, the Slovenian tourist community has accepted its share of responsibility for climate change and strengthened its sense of social responsibility. The change that was announced and substantiated by the Tourism and Internationalisation Directorate and the Slovenian Tourist Board with their partners at the Slovenian Tourism Forum at Radenci in 2009 is much more important than it seems. It is about the historical consensus of one of the important key activities of the Slovenian economy. Sustainable development may be, without reservations, approved by managers of large tourist systems, their marketing agents, promoters in regional and local tourism organisations, travel enthusiasts in the tourism associations and the Tourist Association of Slovenia, trainers, innkeepers, taxi drivers and airline cabin crews, and finally also Slovenian tourism partners outside the HoReCa sector (hotels, restaurants and catering), and politicians from the local level to the National Assembly and the Government of the Republic of Slovenia, and even the President of the Republic of Slovenia. 8 Even if the decision about sustainable development as the basis of Slovenian tourism, was quite obvious for the reason that such a policy was only to protect and enhance the quality of the largest competitive advantage of Slovenian tourism, i.e., the natural and cultural environment and hospitality of our nation we have to bear in mind that no broad national agreement or consensus can be taken for granted, in particular in small communities like ours. It is for this reason that the decision about sustainable development is of historical significance and provides the basis for the preparation and implementation of all documents and projects in the future.

10 I. Tourism development in Slovenia in the period The path towards the independence of Slovenia was quite rocky. Few expected that the proclamation of independence would automatically weaken a still vague international perception about Slovenia being a safe tourist destination. A ten-day war in June and July 1991 contributed significantly to this and, although followed by a consolidation period for Slovenia as a country, the decline in international tourism was so dramatic that it took almost two decades to recover the former number of foreign tourist arrivals and overnight stays. However, this was not merely the issue of security. The good, yet quite inexperienced, communication of a young state with the international public soon reinforced its conviction that Slovenia was a much safer tourist destination in comparison to other destinations, and, above all, a more established and well-recognised tourist goal. Key tasks were mainly focused on the restructuring of the tourism economy, the privatisation of the hotel industry, the reconstruction of accommodation capacities, the establishment of new tour operators, travel agencies and carriers, full access to foreign markets and, for a Slovenian tourist, also to destinations abroad, etc. We have addressed three strategic issues; firstly, how to open wide the door to foreign capital that would, through direct investment, become the co-owner of our tourism, then orientation towards the mass tourism or exclusivity and, finally, the painful issue of the recognisability and promotion of Slovenian tourism in the international public. With regard to the first issue, it was quickly established that a small country like Slovenia was not exactly on the priority list among foreign investors. We had to rely on our own resources and we soon realised that consequently Slovenian tourism is stronger and independent from the influence of powerful foreign owners. Realising this, we needed a small step to the conviction that Slovenia's smallness in size and tourist activity, in comparison with mighty neighbours of Austria, Italy and Croatia, does not allow our country to focus on mass tourism, nor to focus on exclusive tourism, but rather on designing a comprehensive tourism offer according to the tailor-made principle. Rather than receiving anonymous tourist crowds arriving with charter flights, our tourists were 'known by name', and offered products of active, cultural, convention, health and wellness tourism 1 and, above all recently, true gastronomic and wine indulgences. In this field, we determinedly discontinued the practice of tourism development until the dissolution of Yugoslavia in The decision not to encourage mass tourism was one of our first strategic steps and one that in fact enabled recent consensus on the sustainable development of tourism. The independent growth of Slovenian tourism has always been accompanied by the shadow of poor recognisability in the world. For some time this was attributed to poor promotion. However, even the last advocators of this cause realised that the promotion of Slovenian tourism had never been as good as that conducted since the establishment of the Slovenia Tourism Promotion Centre (1995) or, subsequently, the Slovenian Tourist Board, and that the reasons were rooted elsewhere. The main reason for Slovenia's poor recognisability abroad, as a country and tourist destination, is because the country is young, while every destination builds its reputation for decades and each country for centuries. Only in recent years has it been established that the main goal is not a worldwide recognisability of Slovenian tourism, but its good, rather excellent reputation among decision-makers and opinion leaders, who will spread their opinions to their countries and markets, among businessmen, tourists, travellers, target groups and market niches. After a few years of successful cooperation with EU institutions, a bold decision was made to take a more aggressive approach in more distant countries, in particular in the BRICS countries (Brazil, Russia, India, China and South Africa. The results were achieved faster than expected by many analysts; as early as in summer 2011, Ljubljana's streets, Bled Castle, Postojna Caves, and Tartini Square in Piran were visited by tourists who a few years ago had not been aware of the existence of Slovenia. 1 Well-being tourism. 9

11 II. Slovenian Tourism Strategy Why is a tourism development strategy necessary? Because this strategic economic activity, which has a strong and positive impact on natural, cultural and social development of the natural and social environment, concerns a considerable number of various stakeholders governed by private and public law, and civil and social organisations, all having a wide variety of individual interests. These are to be brought forward and identified. All options should be discussed and, as much as possible, based on an overview of the current situation in this sector, these interests should be brought into line at the international level and implemented. The term 'strategy' implies that activity is focused on the future and development, which is why we have to set high, but realistic and achievable goals. When the economic system of the socialist self-management changed into a market economy at the beginning of the 1990s, economic entities took the initiative. They have primarily dealt with the privatisation of the former socially-owned property, the reconstruction of worn-out facilities and the development of new economic factors; among them, small and medium-sized enterprises still prevail. In 1995, the state became more actively engaged in tourism. In January 1995, the National Assembly of the Republic of Slovenia adopted a resolution on strategic aims in the field of tourism development in Republic Slovenia with a programme of activities and measures, imposing on the government the establishment of a public institution for the promotion of tourism and the drafting of the law governing the promotion of tourism. When in place and fully operational, this institution the Slovenia Tourism Promotion Centre broke new grounds in spring 1996 and prepared a document entitled Index 356, which is considered to be the first true marketing strategy of Slovenian tourism. A number of documents were prepared that outlined the direction of tourism development. The first tourism development strategy was adopted and the organised marketing of Slovenia as a tourist destination began under the auspices of the Slovenia Tourism Promotion Centre (the STPB: in 1999, it was renamed as the Slovenian Tourist Board); the first college of tourism was established. The primary goal of the resolution was to develop recognisable and market-oriented tourism offers based on domestic knowledge and cultural heritage. They were to offer quality, to be tailored to the needs of tourists with higher purchasing power and to make Slovenia a recognised destination on the tourist market. The offer was to be developed in delineated geographical units (mountains, sea, including the Karst, health resorts, towns and rural country). This strategic document also set quantitative objectives that were to be achieved in the period from 1995 to The tourism sector was expected to attract 6 million tourists and offer 12 million overnight stays, while foreign currency inflow would amount to 3.5 billion USD. The investment in infrastructure was to increase the quality of accommodation facilities and other infrastructure, while the accommodation facilities should be increased by additional beds. One of the most important measures put forward by the resolution was to draft a law governing tourism. 10 In 1995, the Gaming Act and the Hospitality Industry Act entered into force; furthermore, general practices and customs were adopted in the hospitality industry. The classification of accommodation facilities was introduced in 1997, when the government established the Ministry of Small Business and Tourism that was headquartered in Maribor; a year later, the Tourism Development Act was adopted. The law was drafted with a view to fostering an environment which would facilitate the development of tourism. In terms of contents, the law consisted of two parts. The first part identified the activities, forms, financing and organisation of tourism at the local and national levels, while its second part specified trading conditions in selected tourism activities. In terms of the organisation in tourism, the law envisaged the setting up of local tourism organisations (LTO) to promote tourism at the

12 local level. The law also regulated the operation of agencies and tourist guides; in 1999, the Chamber of Commerce and Industry of Slovenia began licensing procedures for tour operators and tourist guides. In the first decade of the 21st century, attention was paid to the strengthening of tourist demand and supply, and the restructuring and increasing of the quality of tourism offer in view of the increasingly clear orientation towards sustainable development. There were also mergers of larger enterprises, investment in new tourist infrastructure and reconstruction of existing infrastructure. The legislation governing tourism underwent major revisions. A new umbrella law was adopted in 2004 and 2008 saw the adoption of new rules on the classification of accommodation facilities. The strategic document replaced the administrative model of management with a business approach, taking into account the principles of sustainable development, comprehensive spatial development of the state, life quality, market niches and the quality of offer, service clusters and development centres and social capital, and business partnership. In tourism development, business entities were to market individual destinations by means of products, programmes and in delineated tourist areas. The strategy also envisaged the introduction of annual policies by means of which the state would define the targeted programmes, financial means and implementing instruments for achieving programme objectives. It highlighted the importance of integrating national, regional, local and entrepreneurial interests and services in the fields that improved Slovenia's competitive advantage. Basic orientations of tourism development were to be derived from competitive advantages, mainly the geographical position and the variety of offer. The strategy envisaged that tourism offer in Slovenia be divided into ten basic tourist areas (the Coast, Goriško, Karst, Ljubljana, the Julian Alps, Pohorje-Maribor, Pomurje-Obsotelje, Dolenjska, the Slovenian countryside and towns with hinterland). Based on these delineated areas, the development of integral tourism offer was discussed within the products (gambling, health and spa, and business tourism), geographical areas (the Julian Alps, Maribor, Karst and the Coast) and programme areas directed into countryside (3E: ecological, ethnological and oenological), recreational (3A: active, action and adrenaline), and experience tourism (3D: doživljajski, dediščinski in domišljijski (experience, heritage and fantasy)). The quantitative and qualitative objectives of the strategy also included the increase in the annual tourism turnover to EUR 1.6 billion, the number of night overstays by seven per cent per annum, average daily individual tourist consumption of EUR 80 per day, occupancy rate of facilities to at least 50 per cent, the upgrading of at least hotel beds, the development of a minimum of 38 new tourist farms and the improvement of the beds on offer in mountain huts, youth hostels and camps. Furthermore, this would increase the recognisability of Slovenia, improve the educational structure in tourism, preserve the nature and increase the integration of cultural heritage in tourism. The Promotion of Tourism Development Act (ZSRT) was replaced by the Tourism Development Act in The new law did not define the method for tourism organisation at the local level or the compulsory membership, which was disputable in the old law. In terms of contents, the new law was also divided into two parts: the first part defined the planning, financing and encouragement of tourism development at the national and local levels, while the second part contained the conditions for the implementation of certain activities relating to tourism. It primarily sets the conditions to be met by tourist agents, tourist guides and escorts, tour operators or organisers of sport events. With the Development Plan and Policies of Slovene Tourism (DPPST, 2006), the Ministry of the Economy aimed to set up a development model of tourism in the period that would best evaluate key development potentials in tourism. The document defined the role and tasks of individual stakeholders involved in tourism development. It proposed a model of destination organisation resulting in a simple organisation and increased efficiency of Slovenian tourism, which was to be simpler and more effective. Furthermore, the document included guidance for the marketing and promotion of Slovenian tourism. Such an introduction was important because the review of twenty years of Slovenian tourism challenged us to look into the future. We cannot continue to congratulate ourselves for our successor or to dwell on the past. Let's walk forward into the future! 11

13 III Slovenian Tourism Development Strategy (summary) The Partnership for the Sustainable Development of Slovenian Tourism (the working title of the new tourism strategy) is based on experience of the previous two decades and discoveries from at least a century before that, on the theoretical knowledge and findings from the fifteen years of the Slovenian Tourist Board's operations, cooperation between the Ministry of Economic Development and Technology, the Slovenian Tourist Board and stakeholders from the private and civil society sectors and, especially, on a very clear image of what we wish to achieve in the future 2. Emphasis is placed on the sustainable concept of tourism development in all areas and levels. In general, there are three development areas, but the main goal of the national tourism strategy is actually to achieve synergy among all of them: increasing competitiveness, favourable business environment, effective and innovative marketing. These development areas definitely include investments in quality and innovation, 'climbing' the international ladders of competitiveness in both tourism in general as well as its components and areas, the development of strategic partnerships within the sector and with external stakeholders, the elimination of obstacles for effective tourism development, the development of measurement methods for various statistics and indicators, including tourist satellite accounts, and increasing the cultural level of evaluation and competence, etc. Summarised in other words, the main content-related objectives of the new strategy include: competitiveness (innovation, quality, success, knowledge, safety, added value, traffic, inflows, tourist satisfaction, destination management, consumption per visitor, de-seasonalisation, etc.), quality of life and welfare (the well-being of the local population, balanced regional development, participation in tourism development, satisfaction of employees, quality of life, etc.), reputation and development of Slovenian tourism (the priority of tourism, partnership for development, publicprivate partnership, tourism as viewed by other activities, etc.), Slovenia's recognisability and reputation in the world (recognisability on foreign markets, market brand, image of Slovenia, internationalisation, etc.). All these objectives are accompanied by the basic orientation towards sustainable development, the concern for economic, socio-cultural and natural environment, management of the environmental impacts and quality of the environment, transition to a low-carbon society, etc. As already pointed out, it is sustainable development that forms the strategic basis dictating steps and projects to be taken next, and that will allow the international expert and wider community to identify Slovenia as an excellent, green, active, healthy and pleasurable destination to visit and do business with The strategy is based on the premises of two research papers: The Analysis of Slovenian Tourism from 1991 to 2010 (Turistica, 2011), and The Expert Groundwork for the Development and Marketing Strategy of Slovenian Tourism (The Institute for Tourism of the Faculty of Economics, Slovenian Tourist Board, 2011).

14 The main quantitative objectives are: increase the volume of tourist activity (tourism turnover: revenues and profit from the hospitality and tourism sector, number of tourists, number of overnight stays): number of overnight stays: 2 % (annual growth rate), number of tourists: 4 % (annual growth rate), inflow from the export of travel: 6 %-8 % (annual growth rate). In order to reach the above objective, it is necessary that: the principles of sustainable development of tourism be effectively enforced, a favourable business environment be ensured, higher quality be achieved and conditions be established that will lead to greater competitiveness of Slovenian tourism, efficient and innovative marketing and promotion of Slovenia as an attractive tourist destination be planned and implemented. Strategic measures for competitive and sustainable Slovenian tourism 3 : 1. Encouragement to increase competitiveness The strategy proposes that all stakeholders in Slovenian tourism should promote the further development of tourist destinations (regional tourism organisations, local tourism organisations, tourist societies). The strategy promotes research and development, both in the public and private sectors, to provide appropriate bases for business decision making. In cooperation with educational institutions, this will raise the qualifications of employees in the hospitality and tourism sectors, and encourage innovations in the upgrading and development of high-value added tourism products. Those responsible for international integration will monitor and represent the interests of Slovenia in the creation of development orientations at the level of the EU, UNWTO, OECD and in other international organisations. The state promotes investments in green tourist infrastructure in broader terms and supports the development and establishment of suitable flight, rail and road connections in order to make Slovenia more accessible. Slovenia is developing a tourism offer that will also be interesting for tourists outside the main tourist season, thus affecting the de-seasonalisation and ensuring on-going visits of tourist destinations. 2. Ensuring a favourable business environment Slovenian tourism requires efficient coordination and cooperation at the inter-ministerial level with a view to exploiting all policies and financial instruments of the Republic of Slovenia and the EU in the development of sustainable tourism as well as possible. The government has to provide a favourable business and regulatory framework, thus ensuring faster development and increase in the competitiveness of Slovenian tourism. The organisation of Slovenian tourism has to enable the efficient implementation of tasks at the national, regional and local levels, promote entrepreneurial development, increase competitiveness as well as ensure appropriate financial frameworks for the development of sustainable tourism at the national level. It is essential that the system of multi-term winter school holidays be re-established. 3. Efficient marketing and promotion of Slovenia Slovenia has to become a recognisable and highly-positioned destination for target segments. In order to increase the recognisability and reach the desired ranking as a tourist destination on selected sending markets for Slovenian tourism and among the selected target groups, the consistent use of the brand of Slovenia is to be provided in the entire tourism economy and, at the same time, cooperation with other targeted fields of the brand of Slovenia is to be intensified. Adequate resources for better promotion and internationalisation of tourism must be provided. Tourism products need to be clearly positioned, and intensively and efficiently marketed on individual markets. Slovenia is to be innovatively and efficiently marketed through activities of digital marketing and the integration of e-marketing and classic marketing. It is essential that Slovenia also be innovatively and efficiently marketed in the virtual world using modern marketing tools and the integration of e-marketing and classic marketing. The tourist sector is to have a key role in the management of Unique Selling Proposition (a.k.a. USP) of Slovenian tourism. It is essential that partnerships of all public, private and civil entities of tourism be established, and the activities harmonised and implemented with the aim of achieving synergistic effects at all levels of operation. 3 The measures listed are briefly summarised from Chapter 4. 13

15 1. INTRODUCTION In the years to come and given the present level of development of Slovenian tourism and the existing development potential, tourism will become one of the leading industries of the Slovenian economy and will thus make a significant contribution to the attainment of Slovenia's development goals, in particular to the attainment of its economic objectives, such as competitiveness, GDP growth, employment growth, sustainable development, harmonised regional development, the greater quality of life and well-being of its population, the reinforcement of its cultural identity and increase of Slovenia's recognition in the world. Matej Vranič

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17 1.1 Tourism as Slovenia's development opportunity Pursuant to Article 2 of the Promotion of Tourism Development Act (Uradni list RS (Official Gazette of the Republic of Slovenia), no. 2/04), the Government of the Republic of Slovenia at its 81 st regular session on 11 May 2010, under item 1, adopted the following decision: The Government of the Republic of Slovenia defines tourism as one of the most important economic or strategic sectors that generates new jobs and has an extremely positive impact on balanced regional development. In the previous decade, Slovenian tourism has shown extremely positive growth trends, both regarding the growth of the number of tourists and overnight stays as well as the growth of receipts from tourism. The economic recession in 2010 did influence the growth of turnover in tourism, but the situation is already nearing that of the record-breaking year of The number of tourist arrivals increased in 2011 by 7 % with respect to 2010 ( arrivals in 2011), whereas the number of overnight stays increased by 5.4 % compared to 2010 ( overnight stays in 2011) 4. Compared to 2010, 2011 saw 0.5 % (EUR billion) more receipts from the export of travel. 5 Table 1: Tourism data 2011 Estimates for 2022 Slovenia Worldwide Slovenia Worldwide GDP (direct contribution) 3,5 % 2,8 % 3,3 % 3,0 % GDP (total contribution) 12,9 % 9,1 % 12,4 % 9,8 % Number of jobs(direct) (3,9 % of total employment) (3,3 % of total employment) (3,9 % of total employment) (3,6 % of total employment) Number of jobs(total) (13,2 % of total employment) (8,7 % of total employment) (13,0 % of total employment) (9,8 % of total employment) Visitor exports (% of total) 8,8 % 5,3 % 7,0 % 4,3 % Capital investment (% of total) 9,9 % 4,9 % 10,7 % 5,1 % Source: World Travel & Tourism Council, 2012 Therefore, tourism is a stimulator of the quality of life and welfare in Slovenia Source: Statistical Office of the Republic of Slovenia (hereinafter: the SORS), Tourist arrivals and overnight stays by countries, December Source: Bank of Slovenia, Financial Statistics, Travels in the period

18 Figure 1: Tourism inflow and outflow, Slovenia, , (in EUR 1 000) Source: Bank of Slovenia (Travels in the period ) The export of travel services in the entire period increased, except in 1998 and 1999, when it decreased due to political unrest in the region. Since 1994, the export of tourism services has grown by 2.3 times to stand at EUR billion in 2010, which is the highest amount recorded so far. The balance of tourism turnover by individual years amounted to 45 % and 55 % of the total inflow from tourism. According to the data provided by the Statistical Office of the Republic of Slovenia (hereinafter: SORS), the total number of tourist arrivals in increased by 7 % compared to the year before, consisting of a 9 % rise in the number of foreign and a 3.9 % rise in the number of domestic tourists. The total number of overnight stays in 2011 rose by 5.4 % compared to the year before; a 9.3 % increase in the number of overnight stays by foreign tourists and a 0.4 % rise in the number of overnight stays by domestic tourists was noted. Figure 2: Tourism flows by arrivals of foreign and domestic tourists, Slovenia, by years, Note: In 2008, the methodology of data collection was changed (break in the time series). Source: SORS (Tourist arrivals and overnight stays, by years) 6 Source: SORS, Tourist arrivals and overnight stays by countries, December 2011, final data. 17

19 The number of overnight stays in 2011 rose by 5.4 % compared to the year before, whereby a 9.3 % increase in the number of overnight stays by foreign tourists and a 0.5 % rise in the number of overnight stays by domestic tourists was noted. Figure 3: Tourism flows by overnight stays of foreign and domestic tourists, Slovenia, by years, Note: In 2008, the methodology of data collection was changed (break in the time series). Source: SORS (Tourist arrivals and overnight stays, by years) In 2011, 58% of overnight stays were by foreign tourists. Figure 4: Domestic and foreign tourist overnight stays, Slovenia, Source: SORS The average period of stay by foreign and domestic tourists is becoming shorter. Tomo Jeseničnik

20 Figure 5: The flows of the average periods of stays domestic and foreign tourists, Slovenia, by years, Note: In 2008, the methodology of data collection was changed (break in the time series). Source: SORS (Tourist arrivals and overnight stays, by years) Figure 6 shows the trends in the number of rooms and beds since Figure 6: The number of rooms and beds, Slovenia, (old and new methodology) Note: The capacity levels as per 31 August are indicated according to the old methodology, whereas the maximum capacities available by individual years are stated according to the new methodology. Source: SORS Tourism is and will be an important economic activity with a number of multiplicative effects. 19

21 According to the estimate of the World Tourism and Travel Council (WTTC), tourism in Slovenia creates as much as 12 % of GDP. At the same time, tourism is a very important export activity that represents a good 8 % of total export and over 40 % of services export in Slovenia's balance of payments (source: Bank of Slovenia). According to the data provided by the Bank of Slovenia, the receipts from the export of travel in 2011 increased by 0.5 % compared to The growth trend, however, was slightly more moderate than the growth of the number of arrivals by foreign tourists, which indicates that the crisis still affects the results in tourism and is also reflected in the new guidelines of tourist demand. Anja 20 Čop Tourists plan their holidays more thoroughly, searching for the most suitable ratios between price and quality. Spending outside bedand-breakfasts (pensions) has also decreased.

22 1.2 The Brand of Slovenia Slovenia's brand, 'I feel Slovenia', has been in use since Compared to other brands that were used in Slovenia in the past, this is a systematic and modern attempt to establish a brand involving all areas, not only tourism. Some of the stated elements of Slovenia's brand identity (Figure 7) are similar to characteristics of other nations and countries, while others are unique to Slovenia. What makes Slovenia special is a combination of the above elements. This combination creates countless harmonised stories and builds a Slovenian experience. A part of the Slovenian story can already be experienced, while the other part represents our common desires regarding the development of Slovenia. Below only one story is presented. Each user will derive his or her own variation but they will all have the same core. Figure 7: Brand of Slovenia Source: Overall Slovenia brand design 21