Tourism Perspective

LEX LOCALIS - JOURNAL OF LOCAL SELF-GOVERNMENT
Vol. 13, No. 2, pp. 265 - 284, April 2015
Tourism Perspectives and Local Communities

Development within Two Different Countries
BOIDAR VELJKOVI, LUKRECIJA DJERI & JELICA JOVICA MARKOVI 7
ABSTRACT Paper discusses local municipality touristic development

and tourism strategies analysing achievements of national touristic
objectives regarding foreign and domestic tourists in two groups of
selected municipalities within two different countries. First group
includes three municipalities from Slovenia and the second group
includes three comparable municipalities from Serbia. Throughout
our analysis we carefully considered countries basic documents
Slovenian and Serbian tourism development strategy. After
analysing statistical data, we conclude, that it is of great signicifance
for each municipality the direction of tourism industry development,
investments into modern tourist capacities as well as professional
marketing, as is the case with municipality ob Breice.
KEYWORDS: municipality tourism impacts community-based

tourism local tourism awareness Slovenia Serbia
CORRESPONDENCE ADDRESS: Boidar Veljkovi, Ph.D., Assistant Professor, University

of Maribor, Faculty of Turism, Cesta prvih borcev 36, 8250 Breice, Slovenia, email:
bozidar.veljkovic@um.si. Lukrecija Djeri, Ph.D., Assistant Professor, University of
Novi Sad, Faculty of Science, Department of Geography, Tourism and Hotel
Management, Trg Dositeja Obradovia 3, 21000 Novi Sad, Serbia, email:
djerilukrecija@gmail.com. Jelica Jovica Markovi, Ph.D., University of Novi Sad,
Faculty of Science, Department of Geography, Tourism and Hotel Management, Trg
Dositeja Obradovia 3, 21000 Novi Sad, Serbia, email: jelica.markovic@uns.ac.rs.
DOI 10.4335/13.2.265-284(2015)
ISSN 1581-5374 Print/1855-363X Online 2015 Lex localis (Maribor, Graz, Trieste, Split)
Available online at http://journal.lex-localis.info.
266 LEX LOCALIS - JOURNAL OF LOCAL SELF-GOVERNMENT
B. Veljkovi, L. Djeri & J.J. Markovi: Tourism perspectives and Local communities
development within two different countries
1 Introduction
In this paper, we analyse achievement of national touristic objectives regarding

foreign and domestic tourists in two groups of selected municipalities in two
different countries. First group includes three municipalities from Slovenia that
accessed the European Union (EU) in 2004. This group includes municipalities
Krko, Breice and Sevnica. The second group includes three comparable
municipalities from Serbia yet hopefully to become the full member of the EU in
the future, these municipalities are Vrnjaka Banja, Velika Plana and Kladovo.
It is generally accepted fact, that environmental and social impacts, indicators and
responses are applied for the mainstream sector of tourism on the world basis and
in that matter positioned in five categories: pollution and protection, prosperity,
peace and population. According to the European Commission the tourist industry
represents one of the key sectors of the EU economy, directly or indirectly
generating over 10% of EU gross domestic product in which 9.7 million
inhabitants found their employment in 1.8 million enterprises of all forms.
Tourism plays important role at the shaping of the European identity, awareness of
the enhanced natural and cultural heritage, employment, sustainable and regional
development (Veljkovi and Ambro, 2010). European Commission is promoting
tourism to keep EU as a leading destination and thus maximizing its contribution
to economic growth and employment. Formal definitions and acknowledges about
the importance of tourism in the EU are stated in in Article 195 of The Lisbon
Treaty. European Union (EU), and in that matter European Commission, defined
Tourism as an important economic activity in the EU (European Commission,
1999 and 2001). Tourism involves vast number of products; destinations with a lot
of different, private and public, stakeholders with decentralised areas of
competence at regional and local levels. In the eyes of EU economic policy
Tourism represents huge potential in the sense of contribution to the major EU
objectives i.e. economic growth, employment, economic and social cohesion and
sustainable development. In the EU, most Community policies have a significant
effect on the activities in the tourism sector and thus EU political institutions in
the new millennium strengthened for new political attention.
There are several important milestones in the political and judicial statements
process regarding Tourism policy of the EU. In 1997 the Luxembourg European
Council on Employment and the Council of Tourism Ministers was held.
Mentioned EU Council recognised the benefits of sustainable and balanced
development of EU tourism and demanded for reaching action as a response to the
Luxembourg Conference. In 1998 a Group on Tourism and Employment was set
up by the Commission. As a result of widely approved directions proposed by a
High-level Group, the Enhancing tourism's potential for employment
Communication was submitted Commission. If one comes out of the end of the
millennium there is EU document Tourism and Employment for sure to be
LEX LOCALIS - JOURNAL OF LOCAL SELF-GOVERNMENT 267
mentioned (Conclusions of the EU Council, 1999). With a strong support from the
EU Parliament, Committee of the Regions and the Economic and Social
Committee mentioned communication resulted as the conclusions of the EU
Council in June 1999. Council called upon the Member States and the
Commission for closer cooperation to escalate the contribution of tourism to the
employment and growth, with a respect to sustainability, training, information and
quality.
Council results were also important for the creation of active working groups
recommending directions for EU tourism strategies i.e.: the fundamental role of
information, knowledge and its dissemination; the need for competent human
resources motivated by medium and long-term prospects; the integration of
environmental policy and the promotion of sustainable tourism; recognition of the
need for European harmonisation of the concept of quality of tourism services and
infrastructures, and its assessment and monitoring; the need to speed up the
integration of information society tools and services in all tourism activities and
businesses, in particular SMEs; the need for a network of the stakeholders
involved and a generalised partnership, particularly between those in the field to
ensure implementation of all the recommendations (EU Commission, 2001). In the
year 2003 the EU Commission launched a document Basic orientations for the
sustainability of European tourism (EU Commission, 2003) what can be
considered as the next milestone. In this document EU Commission stressed the
need about consistency regarding various EU measures and policies to affect the
competitiveness and sustainability of the EU tourist industry. Sustainability is in
that matter becoming the main focus of EU tourism policies in the way of
increasing economic, environmental and social component of the European
tourism. EU sees important challenges for sustainable tourism linked in the
consumption and production patterns and in that matter in seasonal spread and
also the travel of the tourism purpose. In particular we can see importance of the
value chain and the tourist destinations which means to rely on Community
tourism measures and policies.
A renewed EU Tourism Policy: Towards a stronger partnership for European

Tourism, is the next document launched by EU Commission in the year 2006
(EU Commission, 2006). It is agreed that after 1996 the potential of tourism to
generate employment and growth has been recognised at EU level on several
occasions. Decisive factors in driving economic growth of tourism are recognized
as evolution in transport, demographic changes and globalisation. At the time of
launching A renewed EU Tourism Policy, Commission claimed that EU with its
quality of tourism and its variety should be the world leading tourist destination,
thus tourism represents the activity playing a significant role in the fulfilment of
the Growth and Jobs Strategy goals. Since February 2005 EU Commission
presented a new beginning, also seen as a new start, of the Lisbon Strategy. Focus
was pointed on two main areas creation of more working places and permanent
economic growth. Awareness about the Tourism economic sector got even more
strength in the year 2007. Significant potential of the Tourism to generate future
employment and economic growth was also presented at that time structural
interpretations of the European economy i.e. contribution with approximately 4%
to EU GDP (from about 2% in some new EU members and up to 12% in Malta).
EU Commission even claimed that the indirect contribution of the tourism to the
GDP creation reaches more than 10% of EU GDP and secures approximately 12%
of all working places. Agenda for a sustainable and competitive European tourism
was launched in February 2007 (EU Commission, 2007). After recognizing a
significant role of tourism in the EU economy, the Commission adopted a
renewed Tourism Policy in March 2006 with the purpose of improving the
competitiveness of the European tourism industry and creating more and better
jobs through the sustainable growth of tourism in Europe and globally" (EU
Commission, 2006). At that time EU policy also recognised that "making growth
and jobs target goes hand in hand with promoting social or environmental
objectives" and launched the preparation of a European Agenda 21.
Mentioned policy implications are of significant importance for every country

economy (Vojinovi et.al., 2013 and Oplotnik et.al, 2011). In our case we took
into the consideration Slovenian and Serbian tourism industry. Slovenia got full
membership in the EU in 2004 and in 2007 adopted Euro as a single currency and
became a member of EMU. On the other hand, the start of accession negotiations
for Serbia with the EU is a step for Serbia toward European integration. From
2012, EU has recognized Serbia as accession candidate. Serbian negotiations with
European Commission started in January 2014.
After the first section, presenting EU regulation, some basic documents regarding
the EU tourism industry and some leading research experiences, second section
presents tourism as the comparative advantage of the Serbian and Slovenian
Economy. It is followed by section 3 presenting analysed municipalities and data
series used. Section 4 presents our empirical findings and concludes the paper.
1.1 Some of the leading experiences
Empirical research on tourism has witnessed an enormous interest during the last
30 years. Empirical analyses on tourism began to appear in the economic literature
from the beginning of the 1970s. One of these earlier studies was by Robert W.
McIntosh analysing Job market for tourism graduates: A case of Michigan State
University (McIntosh, 1976). At that time author discussed the four-year tourism
program of Michigan State University and describes the job market for the tourism
graduates. Further, he cites the types of employment opportunities presently
available and predicts their increased in the future. In the eighties Lickorish, with
his paper European tourism action group analysed The Industry Conference,
convened by the European Travel Commission (ETC) in Luxembourg in
November 1980 to consider the major ETC study European Tourism Prospects to
1990, was attended by almost every sector of the tourist trades, both public and
private (Lickorish, 1983). Author claims, that it was also strongly supported by
international organizations. One of the major findings of the Lickorish (Lickorish,
1983) study was weakness in technical liaison between the different sectors of the
industry, e.g., road, rail, air, and sea transport; accommodation and catering trades:
and municipal and resort facilities. Just as, at the national level, the state tourist
organizations and at the regional and local level, the appropriate tourist bodies or
confederations provide a co-operative basis for joint action the author claimed at
that time.
Blaine, Golam and Var (1993) in their explanatory study analysed demand for
rural tourism. From Koth, Kreag and Sem they recognized that an increasing
number of rural communities throughout the United States are seeking to
capitalize on tourism as a means of sustainable economic growth and development
(Koth, Kreag and Sem 1991). Blaine et.al. discovered that many rural community
leaders have successfully identified the advantages of tourism in enhancing their
economic conditions and that a system to provide information on the demand for
rural tourism and to monitor changes in tourist expenditure patterns in the rural
community was at that time lacking. Blaine et.al. also claim in their paper that
most of the previous work on the estimation of tourism demand has focused on
geographically aggregated areas, at the state or national level (Quayson and Var
1982; Var, Mohammad and Icoz 1990).
Perales (2002) determinates the features that characterize a new tourist class,
called modern rural tourism, and figures out the proportion of this market in one
specific Spanish region. The geographical territory under study was El Alto
Palancia, one of the best known rural resorts, within the Valencian region. In order
to fulfil these goals, Perales conducted an empirical study and afterward applied
an econometric model. A wide set of variables has been selected for the Logit
Binomial Model, which was shown to be useful in discriminating the modern from
traditional tourists.
Beerli and Martn (2004) developed and empirically validated a model which
explains the different factors which form the post-visit image of a destination.
Based on a literature review Beerli and Martin involved analyzing the relationship
between the different components of the perceived image and the factors which
influenced its formation (sources of information, primary and secondary) and
stimuli influencing the forming of perceptions and evaluations of destinations pre-
and post-visit, respectively, and motivation, accumulated touristic experiences and
sociodemographic characteristics.
Buckley analysed social and environmental impacts, responses and indicators for
the mainstream tourism sector worldwide, in five categories: population, peace,
prosperity, pollution and protection (Buckley, 2012). Author went through huge
literature review, relevant publications and claims that in the literature exists very
few attempts to evaluate the entire global tourism sector in terms which reflect
global research in sustainable development. Buckley also concluded that the
industry is not yet close to sustainability and that the main driver for improvement
is regulation rather than market measures.
Baloglu and McCleary proposed a model of destination image formation and

found out that image has been shown to be an important influence in the selection
of vacation destinations (Baloglu and McCleary, 2012). Authors defined a model
that represents the important determinants of destination image formation and was
developed based on previous studies in a number of fields. Baloglu and
McCleary`s research presents the results of an empirical test of the model using
path analysis with a major finding that a destination image is formed by both
stimulus factors and tourists' characteristics. Results of their analysis can provide
important implications for strategic image management and implementing
marketing programs for creating and enhancing tourism destination images.
Walkera and Moscardob (2014) did research on the relationship between tourism
and sustainability with considerable attention paid to ecotourism's potential to
positively contribute to sustainability. They used tourist experiences, especially
those focusing on interpretation, to activate or change sustainability relevant
values, beliefs, attitudes and actions both at places visited and elsewhere. Their
paper reports on research conducted with passengers on expedition cruises that
explored links between aspects of the overall experience including the
interpretation provided tourist perceptions of the benefits of these experiences and
their awareness of sustainability values linked. The use an adapted mean-ends
analysis technique and found a consistent pattern of relationships between features
of interpretive experience, activation of values and intentions to adopt responsible
behaviours beyond the cruise. Responses highlighted the importance of staff
expertise and dedication, the ability of interpretive staff to provide security, to
assist people to make personal connections and to elicit participant trust. Walkera
and Moscardob (2014) developed a Value Model of Interpretation (VMI),
integrating theories of effective interpretive practice and connecting interpretation
to the activation of sustainability values. The VMI offers new areas for guides to
consider, shifting the focus from the transmission of information and towards the
facilitation of mindfulness and reflective engagement.
2 Tourism as the comparative advantage of the Serbian and Slovenian

Economy
Analysing two countries future intentions we first went through both countries
development strategies regarding countries intentions in general and in the
subsection reviewed tourism strategies for both countries. On the one hand,
discussing about Slovenia's development strategy 2014-2020 as core strategic
document of the Slovenian government defining directions and intentions of
development till 2020, we went through main points of the strategy (Institute of
Macroeconomic Analysis and Development, 2005). In the mentioned development

strategy Slovenia defined efficiency improvement in the frame of strategic
resources i.e. sharing of burdens and benefits with increased level of employment,
natural resources, technological recourses, human resources and financial
resources. Slovenia's development strategy by 2020 also defined targets and
objectives in the way of strengthening the GDP per capita up to 24,000 Euros,
productivity growth improvement by 3.5%, improvement of employment rate of
the work force between the age 20-64 to 75 percent, improvement of value-added
per employee to 50,000 Euros and improvement of defined Ecological footprint to
per capita 4.9.
There are some crucial areas of economic development defined in the Slovenia's
development strategy 2014-2020 and those are; Economic development as
research, development and innovation, start-up growth and development of
small and medium-sized enterprises (Svetilii et.al., 2007), employment,
education, training and competence (Ovin and Maek, 2010). Government also
defined that by 2020, halve of the development funds, is going to be used for the
next areas: Competitive economy (highly educated labour force, geo-strategic
position of Slovenia, internationalized economy, tradition of investing in research
and development, recognizable tourist attractions and electrical energy supply);
knowledge and employment (work as a value, knowledge as a potential,
creativity); green living environment (water resources, renewable energy, forest
and wood, biodiversity) and inclusive society high quality of healthcare,
intergenerational support (Institute of Macroeconomic Analysis and Development,
2005).
Table 1: Some general economic indicators
2005 2006 2007 2008 2009 2010 2111 2012 2013

Serbia 5,4 3,6 5,4 3,8 -3,5 1,0 1,6 -1,5 2,5
GDP growth rate
Slovenia 4,0 5,8 7,0 3,4 -7,9 1,3 0,7 -2,5 -1,1
Serbia 32,0 32,0 33,0 36,0 36,0 35,0 36,0 35,0 36,0
GDP per capita (PPS)*
Slovenia 87,0 88,0 88,0 91,0 86,0 84,0 84,0 84,0 83,0
Serbia 20,8 20,8 18,1 13,6 16,6 19,2 23,4 22,4 20,8
Unemployment rate
Slovenia 10,2 9,4 7,7 6,7 9,1 10,7 11,8 12,0 13,1
Notes: *GDP per capita in PPS, Index (EU28 = 100), Data from 1st of June 2014.
** Data sets for Slovenia (and Serbia in case of GDP per capita (PPS)) were compiled from
the Eurostat.
*** Other data sets for Serbia were compiled from the Statistical Office of the Republic of
Serbia database.
On the other hand Serbia defined her vision as anticipation that by 2017 Serbia
will have become an institutionally and economically developed country with
adequate infrastructure, compliant with EU standards, with an economy based on
knowledge, the efficient use of natural and man-made resources, greater efficiency
and productivity. Further on, Serbia will become rich in educated people, a
country with a well-preserved environment, and a historically and culturally rich
nation. Serbia strives for a partnership of public, private and civil sectors, and for
an environment that would provide equal opportunities for all citizens.
This vision stemmed from the strategic objectives of sustainable development,

based on a thorough analysis of the potential of the Republic of Serbia, as well as
the conditions and limitations for achieving its development goals (the National
Strategy for Sustainable Development of the Republic of Serbia, 2008). According
to the Draft of the Development Concept of the Republic of Serbia (2010), the
main objectives of the development of the Republic of Serbia by 2020 are:
increasing employment, improving human capital, investing in knowledge and
technology, export-based growth and the rational use of energy, as well as social
inclusion and poverty reduction. In order to successfully achieve the goals and
objectives set in the concept of development called "Serbia 2020", the fulfillment
of two conditions is of great importance: 1) institutional reforms, including
constitutional and legal reforms, judicial reform, public administration and system
security reforms, by which Serbia would become an important factor of stability in
the region, and 2) the building of infrastructure and the forming the spatial
development strategy of Serbia.
According to the same Draft the projection for the year 2020 anticipates an
average of 5-6% annual growth rate (2011-2020) of GDP, so by the end of 2020 it
will reach about 55 billion EUR or around 8,000 EUR per capita. Two-thirds of
that GDP growth is a result of productivity growth, while one-third of its growth is
a consequence of increasing employment. The plan is also to double the
participation of export of goods and services in GDP during this period with a rise
from 33% to 65% (Serbia 2020, 2010). However, the current situation shows that
the growth rate of GDP is very low and with negative values in years 2009 and
2012. GDP per capita has, with slight oscillations, increased slightly since the year
2005, amounting to 4,464 EUR or $ 5,930 in 2013. Serbia has had a drop in the
unemployment rate in the years from 2005 to 2008. However, with the beginning
of the economic crisis in 2009, comes a rise of the unemployment rate, and it is
important to note a slight decline in unemployment over the last two years
(Statistical Office of the Republic of Serbia). The unemployment rate is based on
the National Employment Service records of the unemployed persons.
2.1 Two countries touristic development strategies
In the Tourism Development Strategy of Serbia from 2005 to 2015, several

strategic potentials of the Republic of Serbia have been pointed out as important
for the success of the tourism industry. One of the main potentials is a positive
attitude of Serbian people towards tourism, that is, their openness, hospitality and
a strong emotional relationship that the guest receives as a result of his stay in the
Republic of Serbia. We also recognize the strategic geographical position of the
Republic of Serbia on the border of several historical cultures, of course with
Belgrade, a city on two major rivers, which is a still undiscovered tourist capital of
South Eastern Europe. Ground and underground waters, from the wealth of
thermal springs and traditional spas, to the Danube, the Sava, the Tisa and the
Morava rivers and other streams, which form a special tourist offer in this part of
Europe, all represent a large unused potential. Still intact expanses of mountains,
forests, agricultural fields, vineyards and hunting-fishing zones, images of which
create a unique and recognizable image contrasts of rich landscapes are also listed
as a strategic potential, as well as the rich archaeological and architectural heritage
that testifies to the historical significance and the development of civilization in
the territory of the Republic of Serbia, and, especially, the highly valued historical
and artistic heritage of Serbian medieval monasteries and archaeological sites as a
source of inspiration and Serbian statehood.
Nine tourist products of the Republic of Serbia which are rated and ranked in the
context of the key success factors and priorities for development were identified
on this occasion. In this regard, a set of promising tourist products of the Republic
of Serbia are: city vacation, MICE (Meetings, Incentives, Conventions and
Exhibitions) and business tourism, touring, special interests, nautical tourism,
events, health tourism (spa & wellness), mountains and lakes, and rural tourism.
Based on the concentrations of different types of resources in some parts of the
country four tourist clusters were identified: Vojvodina, Belgrade, Western Serbia
with Kosovo and Metohija and Eastern Serbia.
Table 2: 20052015 growth projections for the Republic of Serbia
2005. 2015* 2015**

Tourist rooms 36.163 70.000 79.000
Tourist beds 85.867 150.000 170.000
Domestic 1,7 mio. 2,3 mio. 2,7 mio.
Tourist arrivals
Foreign O,3 mio. 3,1 mio. 3,7 mio.
Domestic 5,9 mio. 7,5 mio. 9,0 mio.
Tourists overnights
Foreign 0,8 mio. 7,0 mio. 8, 5 mio.
Total revenues*** 231 mio. 1,3 bn 1,7 bn
Registered 27.869 100.000 105.000
Number of employees
Unregistered 75.000 10.000 10.000
* Real growth forecast.
** Ambitious growth forecast.
*** Revenues from the export of travel.
Note: data sets were compiled from Tourism Development Strategy of Serbia 2005 2015.
The Strategys growth projection envisioned a redefined and internationally

generally accepted image of Serbia as an attractive and safe tourist destination and
a stable and growing international demand for the Republic of Serbia as a tourist
destination in the year 2015. Given that the number of foreign tourists has been
progressively increasing since the year 2008, and that in 2013 it was almost twice
higher than in 2005 it can be said that the predictions have been achieved.
However, due to the poor economic situation in the country, a stable and growing
domestic demand for various tourism products of the Republic of Serbia has not
been realized, moreover, the number of domestic tourists in 2013 was even lower
than in 2005. Growth projection for 2015 has predicted four significant tourist
clusters - Belgrade, Vojvodina, Eastern and Western Serbia. In this regard,
Belgrade is seen as a regional MICE center and a positioned European destination
for short city breaks and touring. Several attractive centers of rural tourism based
on ecological experience are envisioned in Western and Eastern Serbia, and in
Vojvodina we have a recognizable brand of tourism on farms (granges), with a
variety of activities offered. When it comes to other forms of tourism, a group of
regional centers of winter tourism that are in high demand (Kopaonik, Zlatibor
Goliath, Stara Planina, Tara) is envisioned, as well as a large number of programs
of special interest, such as rafting, hunting, fishing, horse sports, eco-hunting etc.,
several theme parks, a moderate number of golf courses around Belgrade and
several nautical centers - marinas on the Danube.
Within the hotel industry growth projection is in relation to the completed process
of privatization of all hotel companies, restructured, modernized hotel and tourist
offer (in accordance with international standards and categorization) that has been
repositioned on the market, with the presence of several global hotel chains as
well as a large number of hotel chains of regional importance and the use of
modern standard operating procedures and serving standards in all significant
(categorized) accommodation and catering facilities. According to the current state
in the year 2014, the goals of the Strategy are partly realized, and the growth
projection from Table 2 (taken from the Strategy) is set too ambitiously,
particularly in terms of arrivals and overnight stays by foreign tourists.
Slovenian sustainable tourism creates an important part of economic and socio-

cultural well-being, revenues and jobs and is an important contributor to
Slovenias international reputation; it is based on intensive marketing of tourist
products of internationally recognised brands and high added value. The 2012-
2016 development and marketing strategy for Slovenian tourism is built on the
foundations and realisation of goals written in the 2007-2011 Development Plan
and Policies of Slovenian Tourism and upgrades them in line with the bases of the
desired development of Slovenian tourism in this strategic period (Ministry of
Economic Development and Technology, 2011). Strategy is based on experiences
from the past 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 (STB) operations, the cooperation between the Ministry of

Economic Development and Technology, the STB and stakeholders from the
private and civil society sectors and, especially, on a very clear image of what the
government wish to achieve in the future (Ministry of Economic Development and
Technology, 2011). Government plans that in the year 2016; tourism in Slovenia
will be entirely based on sustainable development and will represent, as a
successful industry sector of the national economy, a major contribute to
Slovenias social welfare. Slovenias balance of payments shows us that Tourism
in Slovenia creates about 12.1% of GDP and represents one of the most important
countries export activities in the way that its share in countrys export is above 8%
of total export and over 40% of export in the segment of services export. Slovenia
defined the objectives for its development strategy in tourism industry The
objectives of the Development Strategy for Slovenian Tourism (Ministry of
Economic Development and Technology, 2011) in the period from 2012 to 2016
are: to increase the volume of tourist activity (tourist traffic: revenues and profits
from catering and tourist activities, number of tourists, number of overnight stays),
to increase the number of overnight stays: 2% (annual rate of growth), to increase
the number of tourists: 4% (annual rate of growth), to increase export revenues
from: 6 - 8% (annual rate of growth).
3 Analysed municipalities and data series used
In this paper, with selected time series data span from 2008 to 2013, we study
whether the three selected Slovenian and three Serbian municipalities are
achieving each countrys national touristic goals. Defined goals (or national
targets) come out of national Development Strategy for Slovenian Tourism and
Serbian strategy of tourism development from 20052015 and are so formally
recognized as national targets. In some way, we are also testing, if selected
municipalities in both countries are converging (Vojinovi et.al, 2013) towards
their national targets and criteria developing their tourism industry. For the
comparable sample of municipalities we took in account the criteria that the
municipalities population is under 50,000 inhabitants. In accordance to the
statistical criteria used we classified municipalities into the following categories:
health resorts (i.e., the municipalities in which the health and tourist centres,
which meet the conditions required to obtain the countrys status of thermal spa
health complex-resort and engage in the public health care network are present);
mountain communities (municipalities located predominantly in the range of
mountains); the seaside resorts (i.e., the municipalities along coast region); the
town municipalities; other municipalities (i.e. the remaining municipalities that
cannot be classified into any of the above groups).
Slovenia defined touristic goals in its 2012-2016 development and marketing

strategy for Slovenian tourism as increasing the degree of annual growth regarding
the number of overnight stays by 2% p.a. (growth rate), to increase the number of
tourists by 4% p.a. (growth rate) and to increase export revenues from by 68%
p.a. (growth rate). For Slovenia we selected municipalities from Spodnje Posavje
region i.e. Krko, Breice and Sevnica. Regarding Slovenian municipalities and
countries national goals we managed to collect the data for overnight stays and the
number of tourists and so tested time series for these two categories.
As mentioned, we also tested three selected Serbian municipalities regarding the

achievement of national goals defined in Serbian strategy of tourism development
from 20052015 (Table 2). Rregarding Serbia three smaller municipalities in the
central and western Serbia were chosen to analyse local tourism industry
development, therefore we analysed the data for municipalities Vrnjaka Banja,
Velika Plana and Kladovo on the Serbian side. Regarding the data complied there
is the same situation as with Slovenian municipalities, i.e. we managed to collect
the data for overnight stays and the number of tourists and so tested time series for
these two categories. In the next paragraphs we defined some fundamental
informations of six selected municipalities from two countries. In addition we
analysed statistical data compiled from national statistical bureaus.
Slovenian municipality Krko is the largest municipality in the selected Spodnje

Posavje region. It includes the population of 25.885 inhabitants. Municipality
economic pillars are manufacturing industries and the energy sector. The biggest
economic subject in the field of energy supply in the municipality is the Krko
Nuclear Power Plant and in that matter we have to mention also thermo power
plant Brestanica. In the municipality is rich heritage of the past and present: the
findings from the Stone Age in so called Ajdovska cave, from the Iron Age on
Libna above Krko, the remains of the Roman city and river port in Drnovo,
medieval castles and churches - Castle Rajhenburg above Brestanica is the first
written-mentioned medieval castle in Slovenia.
In comparition with municipality of Breice, Krko municipality is statisticaly

classified in the group of Other municipalities, these are the remaining
municipalities that cannot be classified into any of the specific statistical groups of
municipalities i.e. Mountain communities, Health resorts communities and The
seaside resorts communities. Regarding tourist arrivals in the municipality there
was most significant growth in 2010 with 11.102 tourist arrivals or 67,7% more
than in the previous year. For all the other years we took in account in our analysis
municipality recorded significant declines in category of tourist arrivals (table 3).
In the segment of tourist overnights situation is almost the same, negative trend is
present again, although one can notice that negative curve is not as steep as in the
case of tourist arrivals. In aggregate terms, as mentioned later in the text, there are
huge oscillations present in the whole 20082013 period.
Table 3: Municipality of Krko tourist arrivals and overnights 20082013

data
Tourist Arrivals Tourist overnights

Year
Total g.r.% Dome. g.r.% Fore. g.r.% Total g.r.% Dome. g.r.% Fore. g.r.%
2013 4.477 -18,23 1.986 -9,71 2.491 -23,94 12.907 -28,77 5.456 -19,62 7.451 -34,25
2012 5.475 -6,7 2.200 -15,22 3.275 0 18.121 3,07 6.788 -8,28 11.333 11,33
2011 5.868 -47,14 2.595 -24,25 3.273 -57,36 17.581 -22,69 7.401 3,76 10.180 -34,78
2010 11.102 67,7 3.426 59,85 7.676 71,61 22.742 21,86 7.133 18,89 15.609 23,26
2009 6.620 -26,03 2.147 -8,2 4.473 -32,34 18.663 -29,51 6.000 -8,48 12.663 -36,44
2008 8.950 - 2.339 - 6.611 - 26.478 - 6.556 - 19.922 -
Abbreviations: g.r. % growth rate in percentage; Dome. Domestic tourists; Fore.
Foreign tourists;
Note: data sets were compiled from the Slovenian statistic office database.
Slovenian municipality Breice, with the population of 24.473 inhabitants lies at

the confluence of the Sava and Krka rivers. Its geographical position is extremely
interesting regarding the placement of important road and rail links through the
municipality. The main economic activity in the municipality Breice represents a
trade, small businesses (crafts) and tourism. Thermal spa health complex-resort
Terme ate, belonging to the theritory of the municipality of Breice, is one of
the largest holiday resorts in Slovenia. Municipality possesses many sights and
monuments as well as four castles from the 14th and 15th centuries, namely
Breice, Piece, Bizeljsko and Mokrice castles, surrounded by a golf course. There
is a Posavski Museum in Brece Castle, which operates constantly offering its
Knight's Hall as an attraction to the tourists. Regarding the 20082013 data we
complied from Slovenian statistic office database one can notice much more stable
tourist arrivals and overnights growth rates (and absolute figures) than in other
two Slovenian municipalities Krko and Sevnica. Last is coming out of the fact
that Breice is the municipality with one of the largest thermal spa health
complex-resort Terme ate is in Slovenia where systematic tourism marketing is
present on the export as well as on the domestic marketing level. The total number
of tourist arrivals in the time period between 20082013 had only slight decline
much under 0,1% on the annual base with a significant recovery of trend in the
year 2013 compared to the 2010 and 2011 where a significant declining was seen
(Table 4). Mentioned positive trend result from significant positive growth rates in
foreign tourist arrivals almost in the whole time period, but on the other hand one
can notice significant declining in domestic tourists arrivals what all together
makes a slight infinitesimal negative trend in total. When one comes to tourists
overnights, growth rates of foreign tourist are absolutely positive in the whole
time period. Steep positive trend was a bit slowed down in the year 2011 but
shows increasing in the years 2012 and 2013. There is absolutely different
situation regarding domestic tourist overnights with significant negative trend and
absolute figures (please see table 5. growth rate of domestic overnights).
One has to notice that there were wast tourist industry investments (Oplotnik
et.al., 2012) in the past decades (thermal spa health complex-resort Terme ate)
in the municipality of Breice thus brings us to statisticaly significantely better
results regarding the domestic and foreign tourist arrivals and overnights in
comparison with other two selected Slovenian municipalities i.e. Krko and
Sevnica.
Table 4: Municipality of Breice tourist arrivals and overnights 20082013

data
Year Tourist Arrivals Tourist overnights

2013 171.138 3,993 91.121 7,367 80.017 0,4003 606.296 1,1174 314.497 -0,8375 291.799 3,3125
2012 164.567 -1,251 84.869 -1,9116 79.698 -0,5379 599.596 -2,0028 317.153 -6,2914 282.443 3,306
2011 166.652 -2,5985 86.523 -6,2163 80.129 1,635 611.850 -1,153 338.446 -4,0346 273.404 2,663
2010 171.098 -3,031 92.258 -9,1215 78.840 5,2196 618.987 -3,1816 352.675 -10,0323 266.312 7,6765
2009 176.447 2,756 101.518 1,2386 74.929 4,887 639.328 3,6782 392.002 2,2305 247.326 6,0584
2008 171.714 - 100.276 - 71.438 - 616.647 - 383.449 - 233.198 -
Foreign tourists;
Note: data sets were compiled from the Slovenian statistic office database.
Municipality of Sevnica (as well as other two selected Slovenian municipalities)

belongs to the Posavje region which lies in the south-eastern part of Slovenia
along the lower reaches of the river Sava and the border with Croatia. The region
in statistically treated as less developed region in the Republic of Slovenia.
Sevnica municipality, with the population of 17.560 inhabitants and belongs to the
12th place among all Slovenian municipalities. Regarding the tourism Sevnica
offers guided tours to its more than 700 year old castle. Castle represents a central
historical, cultural, protocol and tourist monument in the municipality. The whole
area of Sevnica municipality offers wonderful excursions and picnics possibilities,
hiking, biking and fishing. As is the case with Krko municipality In comparition
with municipality of Breice, municipality of Sevnica is also statisticaly classified
in the group of Other municipalities, these are the remaining municipalities that
cannot be classified into any of the specific statistical groups of municipalities i.e.
Mountain communities, Health resorts communities and The seaside resorts
communities. There are drastic ups and downs among growth rates of tourist
arrivals, domestic and foreign. In table 5 one can notice that since 2008 total
number of tourist arrivals in almost constantly falling, especially in the 2010 with
its down peak. Among domestic tourists arrivals it seem that the year 2010 also
had a most drastic fall regarding the growth rate. It is interesting to notice that
foreign tourists arrivals trends are optimistic especially in the year 2013 making
total tourist arrivals positive. Regarding analysed national goal to increase the
number of tourists by 4% p.a. (growth rate) one can notice that the municipality of
Sevnica is not achieving it in the segment of domestic, neither in the segment of
foreign tourist arrivals. Next national target is to increase the number of overnight
stays by 2% p.a. (growth rate). From data analysed in Table 5 one can easily
notice that, in the segment of overnights, neither domestic nor foreign tourists
overnights figures are not achieving selected national target, more the less,
domestic tourists are achieving more than 14% negative growth rate and foreign
more than 13% of negative growth rate.
Table 5: Municipality of Sevnica tourist arrivals and overnights 20082013

data

Year
2013 642 7 204 -12,446 438 19,346 1.574 -3,019 494 -3,8911 1.080 -2,615
2012 600 -25,5583 233 -36,856 367 -16,018 1.623 8,4893 514 -14,7595 1.109 24,188
2011 806 6,192 369 1,010959 437 10,9137 1.496 -11,532 603 -9,7305 893 -12,708
2010 759 -39,1827 365 -41,693 394 -36,656 1.691 -33,997 668 -41,8118 1.023 -27,652
2009 1.248 -25,8467 626 14,2336 622 -45,198 2.562 -37,816 1.148 -2 1.414 -47,337
2008 1.683 - 548 - 1.135 - 4.120 - 1.435 - 2.685 -
Foreign tourists;
Note: data sets were compiled from the Slovenian statistics office database.
Vrnjaka Banja (population: 27,332 according to the census of 2011) is one of the
largest and most famous health spas in Serbia. It is located in central Serbia,
surrounded by high mountain peaks as well as by famous Serbian medieval
monasteries. Tourism industry is undoubtedly the backbone of economic life of
Vrnjaka Banja, and thanks to it some other branches of economy have
successfully developed. The number of arrivals and overnight stays of foreign
tourists is growing year after year (see Table 6). The growth rates of foreigners
arrivals were highest in years 2011 (24.2%) and 2013 (19.0%). As for domestic
tourists, the situation is slightly different. After reaching a growth rate of 3.0% in
the number of arrivals and 2.8% in the number of overnight stays in the year
2011, it seems that the year 2012 had a most drastic fall regarding the growth rate.
(a decline of 10.7% in the number of arrivals and 14.1% in the number of
overnight stays. In the year 2013 Vrnjaka Banja reached the maximum number of
domestic arrivals and overnight stays.
Table 6: Municipality of Vrnjaka Banja tourist arrivals and overnights

20082013 data

Year
2013 158.900 13,87987 137.822 13,13392 21.078 19,01078 611.699 20,9147 548.469 20,69835 63.230 22,8244
2012 139.533 -8,56471 121.822 -10,6739 17.711 2,82745 505.893 -12,6326 454.413 -14,0936 51.480 2,799633
2011 152.603 4,346786 136.379 3,020849 17.224 24,21751 579.041 3,48352 528.963 2,84626 50.078 10,73079
2010 146.246 -0,92473 132.380 -1,8404 13.866 8,761471 559.549 -8,12531 514.324 -9,41156 45.225 9,567303
2009 147.611 -0,26284 134.862 -0,83676 12.749 6,241667 609.035 5,551993 567.759 4,752583 41.276 17,93143
2008 148.000 - 136.000 - 12.000 - 577.000 - 542.000 - 35.000 -
Foreign tourists;
Note: data sets were compiled from the Serbian statistics office database.
The municipality of Velika Plana (population: 40,578 according to the census of

2011) is located in central Serbia in the Danubian county. It is a predominantly
agricultural area, with developed food and construction industries. Important
cultural and historical monuments make conditions for tourism development, of
which the most notable one is monastery Koporin, the first burial place of
Karaore Petrovi and the Zahvalnica Church (the Church of Gratitude), as well
as old wooden churches from the XVIII and XIX centuries (The Penitent, the old
churches in Krnjevo and Lozovik). The tourist traffic in the municipality of Velika
Plana (Table 7) indicates that this municipality meets a decline year after year
(2008-2012) when it comes to total arrivals and overnight stays. This is mostly
caused by the domestic tourists, who in 2012 recorded a drop of 65% compared to
the previous year. When it comes to the foreign tourists the situation is somewhat
better. Since 2008, alternating fluctuations have occurred from year to year, where
the growth rate oscillates from negative to positive.
Unlike Kladovo on the issue of foreign tourists the least favorable was the year
2011, when there was a decline of 52.9% in the number of arrivals, and a decline
of 49.1% in overnight stays. The situation in the year 2013 has dramatically
improved, when recorded the maximum number of foreigners with growth rates of
67.1%.
Table 7: Municipality of Velika Plana tourist arrivals and overnights 2008

2013 data

Year
2013 15.101 97,99397 8.044 136,2408 7.057 67,14827 17.320 25,27123 9.429 8,254879 7.891 54,24159
2012 7.627 -41,6003 3.405 -65,3999 4.222 31,15874 13.826 -1,99887 8.710 -15,4287 5.116 34,31347
2011 13.060 -32,2157 9.841 -20,8159 3.219 -52,9317 14.108 -30,2689 10.299 -19,1918 3.809 -49,1252
2010 19.267 -21,9991 12.428 -36,8688 6.839 36,37089 20.232 -24,1594 12.745 -35,8387 7.487 9,892852
2009 24.701 -11,7821 19.686 -10,5182 5.015 -16,4167 26.677 -4,725 19.864 -5,40952 6.813 -2,67143
2008 28.000 - 22.000 - 6.000 - 28.000 - 21.000 - 7.000 -
Abbreviations: g.r.% growth rate in percentage; Dome. Domestic tourists; Fore.
Foreign tourists;
Kladovo (population: 20,635 according to the census of 2011) is a municipality in

Eastern Serbia. It was built on the right bank of the Danube near the border with
Romania. It belongs to the Bor district. The tourism development is based on the
remains of the Roman buildings from the I century AD during the reign of the
Emperor Trajan. Data for Kladovo are analysed in table 8. The year 2009 had a
drop in the visit rate of both domestic and foreign tourists. On the other hand, the
year 2011 was significant for tourism development of the municipality of
Kladovo, when maximum arrivals and overnight stays by domestic and foreign
tourists was recorded in this municipality. Afterwards Kladovo meets a decline in
2012 in all the observed parameters. High growth rates in all the observed
parameters were recorded in 2013, especially when it comes to the arrivals and
overnight stays by foreign tourists, the growth rate of which reached 34.2%
(arrivals) and 48.0% (overnight stays.
Table 8: Municipality of Kladovo tourist arrivals and overnights 20082013

data

Year
2013 23.746 18,39848 20.610 16,30926 3.136 34,24658 63.577 26,75851 55.715 24,23905 7.862 48,03239
2012 20.056 -15,8937 17.720 -16,8426 2.336 -7,92274 50.156 -23,9669 44.845 -25,9005 5.311 -2,47888
2011 23.846 4,226583 21.309 1,728171 2.537 31,3147 65.966 9,650931 60.520 8,179608 5.446 29,17457
2010 22.879 7,858759 20.947 8,471855 1.932 1,630721 60.160 12,87902 55.944 11,60007 4.216 33,12283
2009 21.212 -3,58182 19.311 -3,445 1.901 -4,95 53.296 -6,49825 50.129 -1,70784 3.167 -47,2167
2008 22.000 - 20.000 - 2.000 - 57.000 - 51.000 - 6.000 -
Abbreviations: g,r,% growth rate in percentage; Dome, Domestic tourists; Fore,
Foreign tourists;
4 Conclusion
This paper estimates and analyses achieving two countries National tourism
development strategies at the local level in six selected municipalities, three from
each of the states. Comparing the projected growth in Serbia (with regards to
Tourism Development Strategy of the Republic of Serbia) for arrivals of domestic
and foreign tourists and their overnight stays for the period from 2005 to 2015
with the actual growth rates in observed municipalities by 2013, we found out that
two municipalities, i.e. Vrnjaka Banja and Kladovo, reach the goals set in the
Strategy when it comes to domestic tourism, and the third municipality, Velika
Plana, pursues the objectives set out in the Strategy for foreign tourism, while in
terms of domestic tourism it is at a great disadvantage and adversely affects the
overall tourism statistics of the Republic of Serbia. We also found out some
directions for analysed municipalities for the future. To intensify the increasing
number of foreign tourists, municipality of Vrnjaka Banja needs to look up to
other competing destinations (for example like Karlovy Vary in the Czech
Republic) and conducts external benchmarking. In order to increase the number of
foreign tourists Kladovo should attract investors to build a marina on the Danube
in order to "stop" and attract cruise ships that sail along the Danube. Velika Plana
is using its geographical position and without a lot of investment, mainly due to
the opening of Serbia and transit tourism, achieves a high positive growth rate of
foreign tourists from 2005 to the present.
It is already generally excepted fact that, in order to achoeve the growth of

domestic and foreign tourists, local municipalities should have more engagement
in marketing, participation in tourism fairs, advertising in the print and electronic
media and other type of promotional activity. This case in Slovenia represents
Breice municipality belonging to the group of municipalities, i.e. health resorts
(the municipalities where the health and tourist centers, meeting the conditions
required to obtain the countrys status of thermal spa health complex-resort and
engage in the public health care network are present) where in the pasta decades
wast investments into the tourism industry was derived. The municipality of
Breice is the only municipality, in our selected sample, getting near defined goals
of 2012-2016 development and marketing strategy for Slovenian tourism. This
fact also comes out as the result of professional marketing strategies carried out in
health resort Terme ate for both, foreign and domestic tourists. We have to add
that in the past a significant tourism industry investment were carried out in Terme
ate, resulting in the long run positive trend results focusing on foreign and
domestic tourists arrivals and overnights. Other two selected Slovenian
municipalities (Krko and Sevnica) marked significant data oscillations with
negative trends regarding foreign and domestic tourists arrivals and overnights.
This fact can most probably be a consequence of lack of tourism investments in
the past and not a high level of tourism marketing activities, as is the case in
municipality of Breice. After analysing six selected municipalities in two
different countries, we conclude that it is of great signicifance for each

municipality the direction of tourism industry development, investments into
modern tourist capacities as well as professional marketing, as is the case with
municipality ob Breice.
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LEX LOCALIS - JOURNAL OF LOCAL SELF-GOVERNMENT

Vol. 13, No. 2, pp. 265 - 284, April 2015

Tourism Perspectives and Local Communities

ABSTRACT Paper discusses local municipality touristic development

KEYWORDS: municipality tourism impacts community-based

CORRESPONDENCE ADDRESS: Boidar Veljkovi, Ph.D., Assistant Professor, University

In this paper, we analyse achievement of national touristic objectives regarding

A renewed EU Tourism Policy: Towards a stronger partnership for European

Mentioned policy implications are of significant importance for every country

1.1 Some of the leading experiences

Baloglu and McCleary proposed a model of destination image formation and

2 Tourism as the comparative advantage of the Serbian and Slovenian

Macroeconomic Analysis and Development, 2005). In the mentioned development

Table 1: Some general economic indicators

2005 2006 2007 2008 2009 2010 2111 2012 2013

This vision stemmed from the strategic objectives of sustainable development,

2.1 Two countries touristic development strategies

In the Tourism Development Strategy of Serbia from 2005 to 2015, several

Table 2: 20052015 growth projections for the Republic of Serbia

2005. 2015* 2015**

The Strategys growth projection envisioned a redefined and internationally

Slovenian sustainable tourism creates an important part of economic and socio-

Tourist Board (STB) operations, the cooperation between the Ministry of

3 Analysed municipalities and data series used

Slovenia defined touristic goals in its 2012-2016 development and marketing

As mentioned, we also tested three selected Serbian municipalities regarding the

Slovenian municipality Krko is the largest municipality in the selected Spodnje

In comparition with municipality of Breice, Krko municipality is statisticaly

Table 3: Municipality of Krko tourist arrivals and overnights 20082013

Tourist Arrivals Tourist overnights

Slovenian municipality Breice, with the population of 24.473 inhabitants lies at

Table 4: Municipality of Breice tourist arrivals and overnights 20082013

Year Tourist Arrivals Tourist overnights

Municipality of Sevnica (as well as other two selected Slovenian municipalities)

Table 5: Municipality of Sevnica tourist arrivals and overnights 20082013

Tourist Arrivals Tourist overnights

Table 6: Municipality of Vrnjaka Banja tourist arrivals and overnights

Tourist Arrivals Tourist overnights

The municipality of Velika Plana (population: 40,578 according to the census of

Table 7: Municipality of Velika Plana tourist arrivals and overnights 2008

Tourist Arrivals Tourist overnights

Kladovo (population: 20,635 according to the census of 2011) is a municipality in

Table 8: Municipality of Kladovo tourist arrivals and overnights 20082013

Tourist Arrivals Tourist overnights

It is already generally excepted fact that, in order to achoeve the growth of

different countries, we conclude that it is of great signicifance for each

Baloglu, S. & McCleary, K. W. (2012) A model of destination image formation, Annals of

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