METHODS AND IMPLICATIONS OF TOURISM EXPENDITURE ASSESSMENT IN CITY TOURISM: ZAGREB CASE

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1 11th Global Forum on Tourism Statistics November Reykjavik, Iceland Zrinka Marušić and Neven Ivandić Institute for Tourism Zagreb, Croatia

2 Content Setting a scene: Tourism in Zagreb Research goal and challanges Assessment of tourist expenditure within an open area Research problem Methodological framework Findings: Tourism in Zagreb in 2009 Conclusions 2

3 Zagreb the capital of Croatia ZAGREB Croatia: Area: 56,594 km 2 Population: 4.29 mio CROATIA Zagreb: Area: 641 km 2 Population: 0.8 mio 3

4 Tourism in Zagreb in ,000 arrivals in commercial accommodation 992,000 overnights (2% of total overnights in commercial accommodation in Croatia) International demand: 73% arrivals & 74% overnights Hotels the main type of accommodation: 6,581 beds (64% total beds in Zagreb; 6% total hotel beds in Croatia) 503,000 arrivals (87%) 845,000 overnights (85% total overnights in Zagreb; 6% hotel overnights in Croatia) 300 mio EUR turnover of hospitality services, of which 60% in restaurants and bars and 30% in hotels 4

5 Research goal To estimate the total tourist expenditures within the city of Zagreb taking into account: All segments of tourism demand (tourists and same-day visitors) Existing estimates of tourism expenditures for Croatia Challenge Assessment of tourist expenditure within an open area To further broaden the information base required for strategic decision-making in the tourism sector To recommend policy measures for increase of tourism expenditures in city of Zagreb 5

6 Assessment of tourist expenditure within an open area Complex issue: underestimated due to the focus on accommodation statistics only not compatible with macro estimates if bottom up approach is used Best practice: Development of standardize questionnaire (Eurocity Survey) designed by ECT to collect data on characteristics of tourism demand in cities (one day visitors and VFR not covered) Region of Veneto: research focused exclusively on the consumption of foreign visitors in commercial facilities (Manente and Minghetti, 1998) City of Dallas: estimates based on survey and model approach (IMPLAN) covering both overnight and day visitors City of Vienna (regional TSA for Viennna): official statistics, household survey, visitor survey, mirror statistics, national TSA City of Ljubljana: estimation of average daily spending 6

7 Methodological framework Definitions of main categories of tourism demand/expenditures for a city in line with UNWTO concepts (TSA approach) Tourism activity of Zagreb citizens ( domestic tourism): usual environment second homes expenditures on outbound trips realized in Zagreb 7

8 Methodological framework TOTAL TOURISM DEMAND IN ZAGREB INBOUND INTERNATIONAL TOURISM DEMAND COMMERCIAL ACCOMMODA TION TOURISTS NON COMMERCIAL ACCOMMODA TION SAME DAY VISITORS COMMERCIAL ACCOMMODA TION INBOUND NATIONAL TOURISM DEMAND TOURISTS NON COMMERCIAL ACCOMMODA TION SAME DAY VISITORS Domestic tourism not considered in the assessment of total tourism expenditures (in the line with the EUROSTAT Methodological Manual for Tourism Statistics, 2011) Demand driven top-down approach Secondary data sources 8

9 Methodological framework: Data sources Monthly data on number of tourist arrivals and overnights in commercial accommodation facilities in 2009 (Central Bureau of Statistics) Border survey The expenditure of foreign tourists in Croatia for 2009 (Croatian National Bank) Travel survey Tourist activity of Croatian population for 2009 (Institute of Tourism) Visitor survey Attitudes and expenditures of tourists and visitors in Zagreb TOMAS Zagreb conducted in 2008 (Institute of Tourism) Interviews with stake-holders Volume of international and national inbound demand in commercial facilities Structure of international inbound demand by segments and average daily expenditures Structure of national inbound demand by segments and average daily expenditures Structure of average daily expenditures tourist and sameday visitors by type of services Deeper insights and logical control of findings 9

10 Methodological framework: Output Physical volume of inbound demand visitors origin (international/national) type of visitors (tourists/same-day visitors) main type of accommodation (commercial/non-commercial) Total inbound tourist expenditure visitors origin (international/national) type of visitors (tourists/same-day visitors) main type of accommodation (commercial/non-commercial) type of products and services 10

11 Total tourism demand and expenditures in Zagreb in 2009 by visitors origin TOTAL TOURISM DEMAND AND EXPENDITURES IN ZAGREB IN mio trips 307 mio EUR INBOUND INTERNATIONAL 1.8 mio trips (51%) 207 mio EUR (68%) INBOUND NATIONAL 1.8 mio trips (49%) 100 mio EUR (32%) 11

12 Total tourism demand and expenditures in Zagreb in 2009 by type of visitors and type of accommodation TOTAL TRIPS IN 2009 TOTAL TOURISM EXPENDITURES IN 2009 Non-commercial accommodation 29% Non-commercial accommodation 39% Same-day trips 20% Commercial accommodation 17% Same-day trips 54% VFR: 31% Commercial accommodation 41% Hotel guests: 38% 12

13 Average daily expenditures in Zagreb in 2009 Demand segment Average daily expenditures in EUR Same-day trips 31 Overnight trips 47 Commercial 114 Hotels and similar 139 Households 36 Non-commercial 29 Own house/appt. 27 VFR 30 Entertainment, culture, sport and other services: Zagreb: 13 EUR Ljubljana: 27 EUR Vienna: 45 EUR Products and services Expenditures in % Accommodation 25 Food and beverage 23 Shopping 27 Entertainment, culture, sport, other services 25 13

14 Conclusions and recommendations Methodological framework developed: top-down demand-driven approach based on additional processing of available secondary data sources (harmonized with international standards); and applied to the city of Zagreb Internationally comparable estimates obtained Constraints revealed related to: (1) process of monitoring tourism impacts in Zagreb and (2) characteristics of Zagreb tourism product Recommendations for: (1) improving the system for monitoring tourism expenditure (2) development of a system for monitoring the impacts of tourism on the city s economy (TSA for Zagreb) (3) increasing tourism expenditures (destination management, product development, education) 14

15 Thank you! Vrhovec 5, Zagreb 15

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