REGIONAL ECONOMIC DEVELOPMENT STRATEGIES: INTEGRATED TOURIST DEVELOPMENT POLICIES

Transcription

1 REGIONAL ECONOMIC DEVELOPMENT STRATEGIES: INTEGRATED TOURIST DEVELOPMENT POLICIES Proceedings of the 33 rd Annual Conference Johns Hopkins International Fellows in Urban Studies Program Johns Hopkins Institute for Policy Studies Split and Dubrovnik, CROATIA June 2003

2 April 2004 Dear Reader: I am pleased to publish the proceedings of the Johns Hopkins International Urban Fellows conference held in Split and Dubrovnik, Croatia in June, These urban experts from 11 countries spent five days in Split, and two additional days elsewhere in the Split region and Dubrovnik, studying the Dalmatian region s potential for developing an economic development strategy based on tourism. They talked to experts, public officials, and academics, and toured a range of attractions that may be incorporated into the strategy. All of the authors of these proceedings are either experts gathered by the host of the conference, or individuals who have conducted urban research at Johns Hopkins University in Baltimore sometime over the past 30+ years. As you will see in Appendix A ( Background on the International Urban Fellows Program ), they spent four or eight months studying Baltimore and analyzing its similarities and differences from other cities around the world. Each year, the Fellows gather for a conference to tackle the problems of a particular city posed for them by their host, a former Fellow. The report that follows represents the Fellows attempt to grapple with the economic issues facing Croatia in the wake of the Balkan conflicts of the 1990s. Mindful of the variations in administrative structure and cultural context, they nevertheless felt that there were important crossnational lessons to be learned from the experience of their own cities and regions. Please contact me if you would like further information on this unique international program or on the Institute for Policy Studies. Sandra J. Newman, Ph.D. Professor, Policy Studies Director, Johns Hopkins Institute for Policy Studies 2

3 Acknowledgments The Johns Hopkins Institute for Policy Studies and the Johns Hopkins International Urban Fellows Association gratefully acknowledge the organization of the Croatia 2003 conference by Dr. Slobodan Bjelajac, University of Split, Faculty for Natural Sciences, Mathematics and Education. The conference would not have been possible without the tireless and dedicated work of the following persons: Slobodan Bjelajac Renata Relja Sanja Stanic Special thanks are due to the hosts of the reception at the Villa Dalmatia: Dr. sc. Slobodan Beroš, Mayor of the City of Split Dr. sc. Boris Anzulovic, Rector of the University of Split Special thanks are also due to former fellow: Anthony S. Travis, Emeritus Professor For the preparation of the final report, we thank: Conference Organizer: Slobodan Bjelajac, University of Split Rapporteurs and Editors: Marsha Schachtel (chief editor), Anthony Travis, Lueder Bach Production: Laura Vernon-Russell and Jeff Feeser, IPS 3

4 TABLE OF CONTENTS Introduction 5 Highlights of Presentations Introduction to Croatia, the Adriatic Region and Split 6 Three (Un)integrated Parts of Croatian Adriatic Tourism 12 Coast, Hinterland and Islands Integrated Adriatic Tourism Planning Yesterday, Today, 14 and Tomorrow Integrated Meaning of Tourism 18 Integrated Coastal Area Management and Tourist Development 19 Constraints and Possibilities of Rural Tourism Development 24 with Special Stress on the Case of Croatia Field Visits 28 Fellows Findings 30 Appendix A: Background on the Johns Hopkins International Fellows in 38 Urban Studies Program Appendix B: Conference program 40 Appendix C: List of speakers 43 Appendix D: List of participants 44 4

5 INTRODUCTION The 33rd annual conference of the Johns Hopkins Institute for Policy Studies International Fellows in Urban Studies program was held in Split and Dubrovnik, Croatia, from June 21 to June 27, The theme of the conference was Regional Economic Development Strategies: Integrated Tourist Development Policies. Each region of the world has unique assets on which to build strategies for economic growth. These strategies take into account both the ancient and recent history of the region in order to seize current opportunities even while other long-term investments in infrastructure and governance are underway. In the case of the Adriatic region of Croatia, the area has embarked on a program to promote tourism while the country is rebuilding. The Split conference gave the attendees an opportunity to focus and comment on the integration of tourism with other activities (economy, agriculture, infrastructure, transportation, cultural activities, historic preservation, and ecology). Speakers and participants looked at the history and future of Adriatic tourism planning, development of strategies for various geographies (coast, hinterlands, islands), and various types of tourism. Site visits were made to primary attractions, with optional visits at the end of the conference to other cities on Croatia's Adriatic coast. Fellows' working groups, speakers, respondents, and local experts focused on socio-economic issues, transportation and infrastructure, culture/historic preservation and ecology as they examined alternative economic development strategies and approaches to developing tourism. In formulating their findings and recommendations, the Fellows drew on their wide experience, both in their home countries and in Eastern Europe. 5

6 HIGHLIGHTS OF PRESENTATIONS Introduction to Croatia, the Adriatic Region and Split Dr. sc. Slobodan Bjelajac, University of Split The Position of Croatia in Europe Republic of Croatia 6

7 Croatia is a medium-sized Central European and Mediterranean, as well as Pannonian-Adriatic country Its constitutional tradition dates back from the medieval duchy (AD ) and kingdom (AD ) to the contemporary Republic of Croatia, proclaimed on 25th June, Population Characteristics % of 1991 Population 4,784,265 4,437, Percentage of Female Population 51.5% 51.8% Percentage of Croats Percentage of Serbs Percentage of all Other Ethnic Groups Density (inhabitants/km2) Average Age of Females Average Age of Males Percentage of University Educated People Percentage of Roman Catholics Physical Characteristics Area in sq km 56,538 mainland (slightly smaller than West Virginia) + 31,139 territorial sea Coastline Climate Terrain Very indented coast: 5,790 km mainland; 1,778 km islands 4,012 km with beautiful clean sea Mediterranean mild winters, dry summers and continental hot summers and cold winters Diverse: flat plains, low mountains and highlands. Highest point: Dinara 1,830 m Natural Features Rivers: 28 Lakes: 31 Pits and Caves: 20 Natural Hazards Frequent and destructive earthquakes National Parks 8 7

8 Croatian National Parks Islands: Brač Off the coast of Split, Brač is the third largest island in the Adriatic, and the source of the white limestone used to build the U.S. White House Beach resorts on both the northern and southern coasts 8

9 HISTORICAL and CULTURAL POINTS OF INTEREST Five places in Croatia are protected by UNESCO as World Cultural Heritage sites (photos from S. Bjelajac presentation unless otherwise noted): Dubrovnik Diocletian Palace, Split Trogir Šibenik Cathedral Euprasius Basilika, Poreć Dubrovnik Old City ain.htm Diocletian Palace, Split Trogir Šibenik Cathedral 9

10 GNP/capita: $ 4,200 (2000) $ 5,100 (2003) Basilica of Euprasius in Poreć Economic Characteristics Today Average netto salary: 3,500 kunas ( 470) o Highly educated 5,400 kn ( 720) o Skilled 2,600 kn ( 350) o Unskilled 2,050 kn ( 270) Agricultural population = 5.6% Active Agricultural Population = 67% Number of Employed = 1,048,500 Number of Unemployed 380,195 Unemployed = 36% of Employed (2.7 Employed : 1 Unemployed) Employed by ownership (2001): o State 44% o Private 39% o Mixed 17% Number of Retired = 1,147,546 (Proportion with Employed: 1 : 0.9) 10

11 Croatian Cities and Towns and Links Among Them (Current and Future) Green: In operation Red: In plan, to be constructed by 2005 Blue: To be constructed after 2005 Rank Main Cities Population Zagreb 779, Split Rijeka 188, ,043 4 Osijek 114,616 5 Zadar 72,718 6 Slavonski Brod 64, Karlovac Pula 59,395 58,594 9 Sisak 52, Šibenik 51, Varaždin Dubrovnik 49,075 43, Bjelovar 41, Vukovar 31, Koprivnica 30, Čakovec 30, Požega 28, Virovitica 22, Gospić 12, Krapina 12,950 Split Split is the biggest city on the Croatian Adriatic, and the second largest city in Croatia 11

12 Its history began with the Diocletian Palace which was built by the Emperor as a vacant residence in 305 AD; when he abdicated, he permanently moved to the Palace. The Palace is stil alive, and almost completely visible. It is the heart of the inner-city. Its importance far transcends local significance because of the level of preservation. It is the most famous architectural and cultural constructs and holds an outstanding place in the world s heritage. In 1979 UNESCO adopted a proposal that the historic Split inner city, built around the Palace, should be included in the register of the World Cultural Heritage. During the Medieval ages, two villages (agricultural and fishermen) were built on the east and west sides of the Palace; these villages still exist and with the Palace comprise the very attractive historic nucleus of the city Between the two world wars, the higher strata people from the Palace built new houses close to it. After World War II, increasing industrialization brought many people from villages to the city; the largest migrations occurred in the period Three Unintegrated Parts of Croatian Adriatic Tourism Coast, Hinterland and Islands Dr. sc. Slobodan Bjelajac, University of Split The Croatian Adriatic Region can be divided into three parts: Urbanized coast (58% of territory, 68% of population) Low urbanized hinterland (33% of territory, 26% of population) Islands (9% of territory, 6% of population) Population Growth Coast Cities and Communes Hinterland Cities and Communes Islands Cities and Communes

13 Relative to the hinterlands and the islands, the coastal areas have: Larger percentages of population in the age range Larger percentages of population with university degrees and secondary schooling Tourism capacity -- In 2000, the Adriatic coast had: 97% of Croatian tourism beds 97% of Croatian tourism bednights 91% of arrivals in Croatia Croatian tourists are mostly (84%) foreign. Hotels and restaurants generate three percent of Croatian gross national product. Nationally, three percent of the workforce is employed in hotels and restaurants, while on the Adriatic coast, these sectors employ 75 percent of workers. 13

14 Integrated Adriatic Tourism Planning Yesterday, Today, and Tomorrow Anthony S. Travis, Emeritus Professor, University of Birmingham Aims of the paper: From the perspective of an involved outsider who has been returning to Croatia and Slovenia for 30 years Summary overview of factors in Adriatic tourism planning, including its past, present, and issues that need to be faced now. Historical perspective The Adriatic Sea, and access to and from it, has been a crossroads for 3,200 years of successive influences from the south (Greeks), west (Romans), east (Turks), north (Venetians), and many others that can be appreciated in the physical heritage visible today. External Historic Influences Beginning in the 19 th Century with the Austro-Hungarian empire s Vienna- Trieste Railway, a north-south axis was reinforced, linking Croatia with the heart of Central Europe and opening up Croatian leisure destinations After Croatian independence in 1918, Adriatic resorts began to emerge, the most fashionable being Dubrovnik and its Imperial Hotel. Limits of accessibility and transport infrastructure have been critical constraints in tourism development. In 1954, Yugoslavia had 81,000 tourist beds (primarily in what is now Croatia). 14

15 Four phases of physical planning for tourism as economic development ( ): 1960s: Large-scale tourism development, grouped around existing settlements in Istria Emphasis was on coastal resort development (Porec) in contrast to continued inland (Motovun and hill towns) decline on the Istrian peninsula : Jadran I- South Adriatic Regional Plan was the first major physical development plan for a key coastal tourism region, and included new access by air, sea, and road, and international tourism development : Jadran II- Upper Adriatic Regional Plan covered the adjacent region, and foresaw intensified development of the coasts while raising economic and environmental issues 1974 onwards: Jadran III- Project for the Protection of the Human Environment elaborated the previous studies, and began to reconcile development with the protection and conservation of the natural and built environment. Jadran III moved from project planning to more integrated regional thinking that combined conservation management with social and economic development aims. By 1978, foreign tourists (primarily German, Austrian, Italian, and British) generated 34.8 million bednights and domestic tourists,48.6 million bednights on the Adriatic Coast. Eco-Planning and People Management ( ) Following the wave of mass packaged air travel of the 1960s and its destructive impacts in Spain, Greece, and Turkey, new market demands were for environmental purity, soft tourism, responsible tourism, or sustainable tourism. Professor Markovic and the team at Plitvice Lakes National Park provided an inland pacesetter, a world class model recognized by UNESCO. It embodied a sustainable sub-regional environment, with both environmental and wildlife conservation, balanced tourism development, and ecotransport systems in the national park. Plitvice Lakes National Park (Photo Croatia.com) The planning, architecture, and landscape standards of Croatia tourism became among the highest in the Mediterranean region. Other aspects of tourism, particularly inflexible visitor management (providerconvenience rather than user-orientation) and lack of incentives (financial and social) for service personnel led to poor service and disgruntled visitors. 15

16 War, Federal Dissolution, and Independence (1990s) War, invasion, death, large scale destruction, damage, migration, division, separation, and even isolation caused the implicit death of planning. Survival and reconstruction of essential infrastructure became priorities. Small experimental approaches to Mediterranean Coastal Zone Management Planning began to flower. New Starts: Grafting Onto New Stems (late 1990s) Rebuilding confidence for foreign visitors is beginning with festival tourism, event-tourism (especially sports-related), and animation. The Zagreb Fair, with other new initiatives in business tourism, conference tourism, and incentives tourism, opened new possibilities. However, global tourism is becoming increasingly competitive and the Adriatic is no longer a trendy destination. Slovenia, less affected by the war, started earlier on innovative planned changes, particularly in the area of rural tourism. CRPOV-Integrated Rural Community Development Projects linked planning and conservation to local economic opportunities for small-scale farmers. Food and wine production and sales, quality control, and marketing were linked, with a resulting high quality experience for the visitor. Example from CRPOV: Heritage Trail development, earlier done by an Anglo-Slovene team in Slovenia, is now proceeding in Croatia. Slovenian example seen below: 16

17 Challenges for the Future Improvements in site management and visitor management will be needed to regain markets. Strong environmental conservation planning will be required to achieve a sustainable economic future. New tourism products will need investment in order to optimize resource advantages. Major questions remain: In a time of Two Europes, will the Adriatic and Mediterranean regions be peripheral or central to the European Union? Can Croatian prosperity be extended inland? Can a multi-strand economy be built in which tourism is one of the catalysts? Can the talent drain of emigration of youth be stemmed? Can Croatian identity and tradition be strengthened while turning outward to new partnerships beyond the country s frontiers? Conclusion: High accessibility, environmental integrity and quality, climate, and retained identity remain the greatest assets. Croatia has the requisite natural, manmade, and human resources, if harnessed in innovative planning for sustainability. 17

18 Integrated Meaning of Tourism Prof. dr. sc.ivo Šimunović, Faculty of Economics, University of Split Dilemmas of contemporary development theory Each development theory embodies a hypothesis about the agent of change the key variable or relationship that drives the development dynamic. In growth pole theory, it is assumed that the structural change of economic development occurs as a result of growth of new propulsive industries ( poles of growth ). More recently, generic strengths have often been found in places and times not explained by these theories. Newer theories of economic development, measured by economic growth, seek to take into account the effect of infrastructure investment, and have sought to characterize semi-growth poles. Tourism as a contemporary factor of development In the Mediterranean basin, transportation has always facilitated the circulation of people and goods. Tourism has evolved in a relatively short period of time, driven by human needs for recreation, cultural enrichment, and is occurring in countries other than those with natural advantages. In addition to economic impacts, tourism has cultural impacts as relationships among diverse people are established. Tourism s potential integrative function All other economic sectors contribute to tourism, which has not traditionally been thought of as a growth pole. Investment will flow to tourism if it is perceived to generate the highest returns. Tourism generates significant national income and employment. However, the security and sustainability of this sector are questionable. It is sensitive to the extraterritorial pressures of international relations, and may require greater investment than is justified by potential returns. 18

19 Integrated Coastal Area Management and Tourist Development: Carrying Capacity Assessment for Tourism as an Instrument of Integrated Coastal Area Management Mr. sc. Ivica Trumbić, United Nations Environment Programme/ Mediterranean Action Plan (UNEP/MAP) Priority Actions Programme/Regional Activity Centre (PAP/RAC) Split Countries and coastal regions Coastal areas are considered the most valuable parts of many countries territories, either with respect to their natural and environmental qualities, or their potential for national socio-economic development. Tourism is one way in which the economic potential of these areas is being exploited. The Mediterranean region is subject to several powerful pressures: o Population In 2000, seven percent of the world s population, 400 million inhabitants of 21 countries; in 2025, the population is projected to be 554 million, increasing by 4 million in the northern part of the region and 148 million in the south and east. The coastal population grew from 85 million in 1980 to 124 million in 2000 (46 percent increase) o Coastal urbanization In 2000, 64 percent of the coast was urbanized, projected to rise to 72 percent by The number of coastal settlements of more than 10,000 inhabitants has doubled since COASTAL SETTLEMENTS o Coastal tourism The region attracts 33 percent of international tourists, and has a pronounced seasonal character. In the mid-1990s, there were

20 million international arrivals, a total expected to grow to million by 2025, depending on which scenario is accepted. COASTAL TOURISM o Economic activity 16 percent of the world s industry is located in the region, and most in the south is based on the massive extraction of natural resources. More than 200 large tankers per day navigate the Mediterranean. Stress on the environment on which tourism depends There are more than 100 environmental hot spots identified by countries along the Mediterranean coast. MEDITERRANEAN HOT SPOTS 20

21 Irreversible physical impacts of development may cause damage to fragile ecosystems, vulnerable visual landscapes, and valuable historic and archaeological sites, the very resources that attract visitors. Integrated coastal area management (ICAM) ICAM is a continuous, proactive and adaptive process of resource management for environmentally sustainable development of coastal areas. It is based on comprehensive understanding of the relationships between coastal resources, their uses, and mutual impacts of development on the economy and the environment. It is widely acknowledged that ICAM is required to lay the foundation for sustainable development, which will reduce or eliminate pollution, rectify other impacts, and prevent these from occurring in the future. As a resource management process, ICAM requires that an early definition of priority issues be made, and expressed in land use planning. Sustainable tourism planning and management should fit into this framework, since tourism development largely depends on the protection and conservation of coastal ecosystems. Carrying capacity for tourism (CCA) is an invaluable instrument for defining the links between ICAM and tourism planning. CCA is defined by the World Tourism Organization as the maximum number of people that may visit a tourist destination at the same time, without causing destruction of the physical, economic, and socio-cultural environment and an unacceptable decrease in the quality of the visitors satisfaction. o Visitors satisfaction decreases as the level of use increases. o There is an optimum level (threshold) beyond which the degree of satisfaction begins to fall. CARRYING CAPACITY ASSESSMENT AS PART OF INTEGRATED COASTAL AREA MANAGEMENT PROCESS C C A Coastal Integrated Tourism Tourism Area Area Coastal development development Area Area plan Management plan Management Plan process Plan 21

22 Carrying Capacity Assessment experience Basic elements for a CCA assessment are eco-systems, attractive landscapes, water supply, waste water, solid waste, traffic, economy, cultural-historical heritage, and socio-cultural aspects. Integated interventions Tourism: sectoral interventions PLANNING INTEGRATION: CASE OF TOURISM National strategy of sustainable development development of tourism should be positioned within the framework of ecologically sustainable development - sustainable tourism National tourism development strategy objectives are based on development of tourism as a sustainable activity Strategic Environmental Assessment Regional physical plan tourism development possibilities; recommendations for tourism development in the space; identification of localities Municipality physical plan land use; detailed guidelines for construction CARRYING CAPACITY ASSESSMENT FOR TOURISM Regional Master plan for tourism (Istria, Dubrovnik) Local Master plan for tourism (Šolta) Geographic scale Coastal Area Management Plan CCA studies are still relatively rare in Mediterranean countries. Case studies of Vis, Rhodes, and Marsa Matrouh were presented. From the experience to date, the following recommendations for practitioners of CCA have been developed: o Involve as many partners as possible. o Organize the process of public consultations. o Secure the participation of planners and decisionmakers. o Use as many existing data as possible. o Secure good-quality technical expertise and local experts. o Identify and respect specific problems of the study area. o Secure the application of the results: monitoring, development guidelines. o Secure integration into development plans. 22

23 Constraints and Possibilities of Rural Tourism Development With Special Stress on the Case of Croatia Dr. sc. Lidija Petrić, Associate Professor, Faculty of Economics, University of Split Rural tourism - origins and definition Global economic restructuring has created a climate in which many local economies have had to adjust in order to maintain or enhance their socioeconomic viability. Rural manufacturing plants and jobs have been lost. Numbers of farmers have declined and farm ownership restructured, forcing some farm families to augment their incomes with off-farm jobs, to depart farming, or to leave rural communities. Rural tourism s entrepreneurial opportunities have become increasingly attractive. These changes, coupled with new ideas and approaches to leisure and recreation time are encouraging tourism development in rural areas at an ever-increasing pace. In many European countries rural residents have moved increasingly toward embracing the development of tourism and recreation as a strategy for sustainable development. Definitions depend on the perspective taken a focus on the percentage of revenue that benefits the rural community or a focus on the extent to which an aspect of rural culture is a key component of the product on offer (agri-tourism, green tourism, gastronomic, equestrian, nautical, hunting, etc). A rural tourist destination can be defined as a wider area dominated by the natural and/or farmed/forested environments where specific natural, economic and socio-cultural features, such as tradition, local co-operation, trust, and reciprocity are harmoniously embedded and as such create a unique tourist product that is predominantly small scaled, nature friendly, ethno-colored, in other words, sustainable. Arguments for and against tourism-based economic strategies for rural communities In favor: o Rural tourism can be developed locally with participation from local government and small businesses. o It requires relatively little investment credit, training, and capital. o It provides a base for those small businesses that might not otherwise be viable in rural communities because of their sparse population. o It provides an opportunity to support local employment, retain work-age population, diversify economic structure, stabilize income levels, and improve the local environment. o It also has a social role, bringing back pride and self-confidence to rural people. 23

24 Against: o Tourism development is inherently uneven and differentiates between regions and localities. o It may be subject to rapid decline because of uncertain demand and competition conditions. o The quality of small rural tourism firms is often questionable. o There is no growth orientation; most business owners are so-called lifestyle entrepreneurs who strive only for enough income to sustain their families. o There is frequently little cooperation among small businesses and between them and outside agencies. o Tourism industry employment remains among the lowest paid. o Possibly high social and environmental costs. o Economic costs such as house and land price inflation. The rural tourist destination product: Must be perceived as an integral tourist product Must possess basic tourist requirements such as catering and accommodation, boarding houses, camp sites or motels, and (most frequently) farm accommodation May have diverse heritage and cultural elements such as monuments, archaeological sites, festivals and celebrations, local traditions, etc. Should, if it is to be widely attractive, provide for the possibility of participating in different sports, such as trekking, fishing, climbing, biking, horseback riding, etc. Must feature clean and unspoiled nature, the conditio sine qua non, since many tourists perceive rural tourism and eco-tourism to be synonymous. Rural tourism in Europe Hard to quantify, since few countries collect statistics Number of agri-tourism accommodations in EU exceeds 600,000 Percentage of farms offering some kind of tourist accommodation: Sweden and Switzerland 20 percent; Great Britain 15 percent; Austria 10+ percent; Germany and Netherlands - 8 percent; France 4 percent; Italy 2 percent. The most frequently offered governmental measures aimed at rural/farm tourism development: o Administrative help o Better legislation and regulation o Availability of skills training institutions o Taxation and financial matters o Easier access to financing o Building the necessary infrastructure o Marketing OECD, EU and other institutions provide additional support 24

25 Essential elements based on best practices (from study of six US rural communities with important attractions and at least 10 years experience): A complete tourism package - including zoning, local government activities, and participation of all the businesses in the area Good community leadership opening minded and enthusiastic people from all groups of stakeholders Support and participation of local government funding for development and promotion, creation and maintenance of infrastructure and the community as a whole Sufficient funds for tourism development from local government, private funds, donations, other sources Strategic planning fundamental for the efficient use of resources and funds, integrated into the community s overall economic strategy Co-ordination and co-operation between business persons and local leadership Co-ordination and co-operation between rural tourism entrepreneurs through different forms of informal and formal networks Information and technical assistance for tourism development and promotion Good convention and visitors bureaus - to market local tourism, recruit persons to start tourism businesses, provide technical assistance, etc. Wide community support for tourism Rural tourism in Croatia Croatia is a predominantly rural country and its geographic regions vary widely in topography, climate, usual activities, social and cultural heritage. Only 5.5 percent of Croatians are engaged in agricultural occupations. Croatia s former government promoted deagrarisation. Tourism development was focused on maritime areas, beginning with rural households on the Dalmatian islands, coastline, and nearby hinterlands. More recently, support has been given to ethno-eco villages as a device for revitalization of rural settlements abandoned under earlier policies. In addition to rural areas that are part of packages sold by travel agencies, there are 177 farms in Croatia offering tourist accommodations. Only 45 of these are situated in the interior parts of the country. There is little official support (finance, training, promotion, strategic planning assistance) and significant regulation. Social capital that might include support networks for rural entrepreneurs -- is underdeveloped in the country. Conclusions Croatia has perfect opportunities to enhance rural tourism because of the abundance of rural areas with different features. There is now no appropriate strategy for rural tourism, although it has unofficially been promoted as a tool for rural area development. 25

26 Recommendations of the European Commission should be followed and the practice of European countries with experience should be respected. If rural tourism is developed in an unorganized and unplanned manner, many valuable natural and cultural resources would be lost forever. A rural tourism product could be a great competitive advantage for Croatian tourism in the ever growing and demanding international tourist market. 26

27 FIELD VISITS Solaris Holiday Resort A purpose-designed resort on the coast west of Split just outside Šibenik. The attendees drove through on the way to Krka. Krka National Park A 109 square km. hinterlands (Šibnik-Knin County) area of exceptional and multifaceted natural value along the Krka River, with numerous spectacular falls. It was made a national park in The attendees traveled by bus, enjoyed lunch at the entrance to the park, and hiked to the bottom of Krka Falls on carefully constructed wooden walkways over streams of clear clean water. Brač The third largest and the highest island of Croatia s Adriatic coast, Brač is known for its lovely beaches and mining of white limestone used for monumental construction, including the columns of the White House in Washington DC. The attendees traveled by car ferry to Supetar, and then by small tour boat to two other locations on the northern coast of the island. Supetar, an island town of 2568 inhabitants. Tourism is the major industry, but the area also produces cattle, olive oil, wine, figs, mandarins, kiwi and other fruit, and herbs. The attendees met with the mayor. Postira, an island town of 1287 inhabitants. In addition to tourists attracted by the beaches and coves, the area also boasts archaeological ruins from Roman and early Christian eras. The attendees met with the mayor and his economic advisor. Lovrečina Beach near Postira is the best-known of the northern coast beaches, shaded by pine trees and served by a small bistro. Split At the heart of inner city Split is the Diocletian Palace, built at the end of the third century and included today on UNESCO s registry of World Heritage sites. Built of two-meter-thick blocks of limestone shipped from Brač, the palace continues to house offices, retail, worship, and public spaces. It was the site of a release of a new book on old Split attended by the conference registrants. Attendees also toured the Museum of Croatian Archaeological Monuments, the Meštrović Palace, and the Split sports complex. Salona Just on the edge of the city of Split lie the ruins of Salona (now called Solin), which was the capital of the Roman province of Dalmatia from the 2 nd through the early 7 th centuries A.D. Attendees were able to walk among well-preserved ruins from a 27

28 2 nd century amphitheatre and baths, as well as an early Christian baptistery, cemetery, and basilica. Trogir West of Split along the coast, the island-town of Trogir floats in the canal, connected by short bridges to the mainland. Also a World Heritage site, Trogir was settled by the Greeks in the 3 rd -4 th centuries BC and made part of the Salona municipality by the Romans. Palaces, churches, towers, and fortresses are concentrated on this small island, which has become a center of upscale yachting tourism. Mostar (Bosnia and Herzegovina) On the road by bus eastward from Split through Bosnia and Herzegovina, the attendees saw the first evidence of the war of the early 1990s in bomb-damaged farmhouses and newly repaired buildings. These sights were everywhere in the City of Mostar, the second largest in the country. It was settled in antiquity, and references to a fortified bridge across the Neretva River can be found as early as the 15 th century. It was a place where Catholic, Orthodox, and Islamic cultures coexisted until the war, when the bridge, a World Heritage site, was destroyed by bombing. Its reconstruction, using the old mortar-less technique, is being financed by international aid and can be seen on 24-hour videocam. A temporary bridge allowed attendees to walk across to the old town and through the small shops and workshops of the Muslim quarter, pockmarked with bullet holes. Dubrovnik Croatia s pink-walled city of 46,000 was established in the 9 th century, the first port going up the Adriatic that was protected by islands. It was the center of an independent republic for 1000 years before 1808 and is a World Heritage site. International restoration efforts have largely erased the evidence of damage sustained from shelling during the war. Four thousand people live in the stillfunctioning old city within the walls that was once at the crossroads of trade routes from Venice to the Mediterranean and Rome to the Ottomans. 28

29 FELLOWS FINDINGS The following report summarizes the results of the 33 rd annual conference and study tour of Split and Dubrovnik by Johns Hopkins International Fellows in Urban Studies in June, The Fellows from 11 countries were asked by their host to provide independent findings and recommendations on the integration of tourism on the Adriatic coast of Croatia. The Fellows were asked to focus on ways that tourism planning and strategies could be integrated with other priorities in the areas of employment, regional development, agriculture, infrastructure, transportation, education and social welfare, culture, historical preservation, and ecology. Mindful of the variations in administrative structure and cultural context, the Fellows felt that there were important cross-national lessons in the experience of Croatia and their own cities that could be usefully shared. While based on information received from Croatian academics, elected leaders, government officials, tour leaders, documents, and citizens, the following is the independent perspective of the assembled Fellows, for which they alone take responsibility. In each section below, the Fellows have tried to suggest principles and implications for practice, based on experience elsewhere, as well as ideas about initiatives that might be pursued. The way in which these initiatives might be undertaken will clearly vary from place to place and situation to situation. As in many of their past conference sites, the Fellows were once again struck by the special challenges of economic development in a transitional economy such as Croatia s. They have seen that coastal areas are particularly vulnerable in these transitional periods, for land use missteps may have long-term and far-reaching consequences. They were impressed by the significant rebuilding and infrastructure improvement planning now underway in the region and commend the local leaders and citizens for their efforts. The following findings are organized in six sections: 1. Goals of an integrated tourism strategy 2. Strategic planning and market targeting 3. Relationship of tourism to other public policy priorities 4. Tourism demand and supply 5. Management strategies 6. Conclusions 29

30 Section 1. Goals of an integrated tourism strategy 1.1 Sustainability and stability are the goals in a society that finds its culture, economy, and political structure in transition. The new country and the region have resources on which to build: a long history, rich traditions, and natural and manmade treasures. 1.2 Sustainability Resources used rationally so that they are not depleted for the future. 1.3 Stability Dynamic systems that adapt to changing competition. Section 2. Strategic planning and market targeting 2.1 Strategic planning involving all key stakeholders (see Section 5 below) will be required before significant investment takes place. 2.2 Sustainable tourism planning for Split and its environs can be most productively pursued in the context of wider planning for Dalmatia. The widest context of the nation is also relevant, but based on the Fellows direct practical experience and knowledge of international tourism generally, it is believed that it would be of maximum advantage to focus on the scale of Dalmatia During a time of national and international transition, the tourism development strategy can build on strengths, particularly the opportunity to see the Split region as part of the Dalmatian coast in the widest sense A marketing orientation will be needed that is more focused on developing an identity and image for this extended region. At the current time, the external image of the country and region are unclear With the collapse of the domestic market, a focus on developing and enhancing international markets is imperative. There is a need for development of a set of distinctive products fitted to targeted market segments abroad. 2.3 Regional planning in the past, such as the South Adriatic Plan, proposed Integrated Transportation Planning for the wider region. The plan linked air, sea, road, and rail systems of transport. This type of infrastructure planning is critical to the future of tourism development and is most logically addressed at the regional and national levels Additional infrastructure projects to be pursued may include sustainable sources of energy, such as solar, wind, or waves. 2.4 Tourism markets are highly differentiated with respect to market segments, generator countries, and the fit between market demand and products supplied. With regard to guiding the regional economy in general, and the tourism sector specifically, the overriding need to find a sustainable economic 30

31 base suggests that within the recommended regional approach, a complementary set of separate and distinct identities be developed and used for the tourism products of the three subregions of Dalmatia: the islands, the mainland coast, and the interior of the mainland. In each subregion, investment and development can be focused on capitalizing on high quality natural resource assets, ie. national parks, nature parks, water zones, and beaches Islands Inter-island hopping opportunities by ferry-steamer and by hydrofoils is already possible, but the component elements of travel, accommodation, and activities are yet to be assembled and packaged. Split to Solta and Vis, for example, awaits such treatment as a packaged offer Cabin-cruiser touring between the chain of marinas on the islands and the mainland coast needs product assembly by existing companies and targeted marketing Around-island and inter-island sailing, by individual hired craft and by sailing flotillas also can be developed. Linked accommodation stays need to be packaged and marketed with themes to year olds, using activities such as fishing, underwater archaeological exploration of ancient cities and sunken ships, singles-breaks, etc On the islands, distinctive packages for affluent year-olds could feature a choice of villa self-catering stays, farmhouse serviced stays, and special interest activity choices, including craft acquisition, eg. in painting, sculpture, pottery, culinary courses in regional cuisine, wine and cheese-making, etc Mainland coastal cities and towns and in purpose-designed resorts (eg. Split, Zadar, etc.) Conference and meeting-based hotel tourism (3-7 days) Educational course tourism, language schools, etc. (7-28 days} Holidays based on a single center, with themes such as art, history and architecture (cultural tourism offerings} Two-center holidays with a theme of well-being, rest, re-creation, stressrelief, Yoga, mediation, spiritual development (1-2 weeks) Three-center holidays with themes of painting and sketching, with optional tutors Sports holidays with coaching (tennis, swimming, diving etc.) Five-center holidays land touring holidays with food and wine theme 2.5 Across these geographical and thematic targets, marketing can also be targeted to selected age segments: Youth (18-30 year olds) Active early retirees (50-70 year olds), a growth market in Europe 31

32 2.6 Croatians have a widespread knowledge of a range of languages, and this gives the region advantages in targeting: The Italian market The German-speaking market in Austria and Germany The English-speaking market in North America, the United Kingdom, and Australasia The Slav-speaking markets in eastern and southeastern Europe Section 3. Relationship of tourism to other public policy priorities 3.1 With high unemployment, problems of underdevelopment, and the challenges of rebuilding, the region urgently needs economic development in a range of complementary sectors. 3.2 Tourism is one, but not the only, catalyst of economic growth and well-being. Tourism generates activity in other sectors, but cannot support the whole economy, and in general does not supply high quality jobs. It cannot stem the exodus of highly qualified people who leave in search of higher quality jobs. 3.3 The development of physical, human, legal/regulatory, and institutional infrastructure is critical, both to support tourism and to achieve other social goals. A careful alignment of development strategies will ensure that overdevelopment of infrastructure will not lead to an undesirable and insupportable level of tourism or have perverse effects, such as making it possible for tourists to make day trips when they formerly stayed overnight In a post-war phase of social adjustment, community building, the integration of migrant groups, and the adaptation of education and health and social services are important Realization of the motorway improvement plan (see Bjelajac presentation) will be critical to linking the Dalmatian region to the rest of Croatia and its key markets Continuous upgrading of rail service is also important More rapid water transportation among islands and between the mainland and the islands will be a key to expanding the tourism potential of the islands Waste water treatment and water quality improvements are a high priority to preserve the natural beauty that is essential to the health of Croatian citizens and one of the primary attractions for tourists. The Fellows have seen graphic reminders of the dangers of unregulated municipal waste disposal in the region of Mersin, Turkey during their annual conference in (See report at 32

33 3.3.6 Water supply to the islands, for both tourism and agriculture, is an important infrastructure challenge to sustainability that may be addressed by exploring desalinization Land use planning and control are critical to the sustainability of tourism. Coastal experiences in Ireland, Israel, Turkey, and Wales have made it painfully clear that this planning and regulation (as well as taxation in some cases) must apply to the actions of local governments (adequate waste water treatment required before development can be permitted) and to citizens desiring to build second homes, as well as to tourism destination developers High quality urban and landscape design can produce sensitive waterfront development respectful of indigenous design that both enhances the environment and proves attractive to tourists. Section 4. Tourism demand and supply 4.1 Within the region, there are already traditions of both large scale and niche tourism. Some already-existing products are targeted at distinct market segments. Further development is now required to seize these opportunities. 4.2 Section 2 describes likely targets for Dalmatia in relation to its existing towns and cities, existing and proposed resort settlements on the mainland coast, and island and inter-island possibilities. Matching of target markets and tourist product is required for example, the northern Europeans may be interested in sea and sun, but southern European tourists may be more interested in mountains, history, or other themes. 4.3 In addition to large scale resort tourism, the region has the potential, with proper infrastructure development, to expand special interest tourism cultural, agriculture, outdoors exploration, educational, historical, touring with food/wine, intellectual-themed holidays, and nautical/sports-related tourism, including sailing schools or a long bicycling route from Rijeka to Dubrovnik. 4.4 These special interests can be extended across regions to construct holiday itineraries that include Dalmatia, for example from karst tours north and south of the region to rock climbing on the limestone-rich island of Brač off the coast from Split. 4.5 Special interest tourism is also more likely to provide opportunities for smaller tourism services operated by local entrepreneurs, following a model of economic development pursued in Northern Italy. These entrepreneurs will need support through management training and collaborative promotion. 4.6 The current extreme seasonality of Dalmatian tourism suggests a need to promote exhibitions and other special events that attract visitors year round. Conference center development may be usefully explored. Again, the infrastructure (facilities and accommodation, etc.) will be critical. 33

34 Section 5. Management strategies 5.1 Structure and means The local role -- local forces, local administration, local empowerment are central to the implementation and realization of desirable change. This is a particular challenge in a region that is physically fractured and remote from central state power However, wider collection and allocation of resources by the national government will be required. The structure of tourism promotion finance, in which revenues from taxes on room nights are shared 60 percent to the local tourism board, and 40 percent to the county and national promotion entities, provides a model worth examining. 5.2 Actors and their roles Public sector: While the public sector s role is diminishing, it is a key player in supplying the preconditions for private investment: financing and planning for physical infrastructure, a legal and regulatory framework that builds confidence among investors and allows the tourism economy to flourish, and sincere partners for private parties in promotional collaborations. It also has a strong role in assuring that the benefits of tourism development are widespread by providing training for tourism entrepreneurs and workers Multi-national: While not immediately relevant to Croatia, the European Union s interest in tourism represents a special opportunity. Its funding policies, particularly with regard to the connection between agriculture and open space preservation, also bear watching National: The national government s enabling roles are critical: planning, infrastructure investment, promotional collaborations, dependable and flexible regulations, promotion of entrepreneurship, education, and empowerment. The national government can also promote good practices among private tourism service providers, both by setting standards and providing technical assistance. The national government has the potential to ensure that an appropriate share of the financial benefits of tourism, particularly when organized by national and international tour operators, be realized by Croatia and shared with localities. Preservation of heritage (using some of the fiscal returns from tourism) is also an important national government role Regional: Collaboration in planning, packaging of tourism products, and marketing around themes will bolster local efforts. Stimulation of collaborations among private providers may also be productively undertaken at the regional level Local: Local forces -- local administration, local empowerment are central to the planning and implementation of tourism strategies that stimulate private investment and are integrated with other local public 34