Former Yugoslav Republic of Macedonia (FYROM)

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1 Former Yugoslav Republic of Macedonia (FYROM) Tourism in the economy Tourism directly contributed MKD 6.4 billion or 1.3% of GDP in 2013, and accounted for 3.3% of total employment. Estimates for 2014 indicate the direct contribution to GDP to be MKD 7.3 billion (1.4% of GDP), rising to MKD 27.4 billion or 5.2% of GDP when the wider effects from investment, the supply chain and induced income impacts are taken into account. Tourism supported an estimated jobs in 2014, equivalent to 4.7% of total employment (WTTC). International tourist arrivals rose to in 2014, up 6.4% on the previous year. International travel receipts rose by 10.4% over the same period to USD 298 million. Turkey was the biggest source market, followed by Greece, Serbia, Bulgaria and the Netherlands. Tourism governance and funding The Ministry of Economy is charged with responsibility for tourism, with this work being undertaken by the Tourism Department and the Agency for Promotion and Support for Tourism. The Committee for Tourism is an overarching body led by the Prime Minister which is made up of stakeholders from the ministries of Economy, Transport and Communications, Culture, Agriculture and Finance, as well as the Agency for Promotion and Support for Tourism, the Agency for Promotion and Investment, tourism chambers and nongovernmental organisations and other relevant institutions. The Ministry of Economy oversees the Agency for Promotion and Support of Tourism and its activities to raise awareness of and promote the FYROM as a destination internationally and to support sustainable tourism development. Municipalities are in charge of tourism development and promotion at a local level, including the formation of destination management organisations. Municipalities link the Agency for Promotion and Support of Tourism concerning promotion and marketing and the Tourism Department in the Ministry of Economy concerning law, policies, and the system of classification and categorisation as they relate to tourism. The budget of the Tourism Department of the Ministry of Economy is about EUR and is drawn from the national budget. The budget for the Agency for Promotion and Support of Tourism is about EUR 3 million and is supported by the national budget and an accommodation tax. There are also some special funds for tourism development largely from European Union sources but also from other international donors. 336

2 Former Yugoslav Republic of Macedonia: Organisational chart of tourism bodies Committee for Tourism (Inter-Ministerial Body) Ministry of Economy Tourism Department Agency for Promotion and Support of Tourism Unit for Research, Classification and Analysis Promotion, Analytics and International Co-operation Department Unit for International Co-operation Support, Project in Tourism and Administration Department Source: OECD, adapted from Ministry of Economy, Tourism policies and programmes The Former Yugoslav Republic of Macedonia sees considerable potential for strong growth in tourism development and foreign investment. By branding the country under the slogan Timeless, the Republic is seeking to position itself as a destination that shows different perspectives on time and provides unique experiences, communicating diverse religions and ethnic groups. The country has developed market segments described through six products that communicate the six human senses. National laws covering catering and tourism have been harmonised with relevant European legislation. These govern the delivery of tourism in line with the overall National Development Strategy The vision for tourism is to establish the country s image as a prime European destination for environmentally-enriched culture and nature-based tourism which intends to become recognised for its high quality and sustainable products and services developed in line with global best practice. The country has a programme for promoting the competitiveness of small and mediumsized enterprises, including those in the tourism sector. It is active in training tourism industry personnel in the hospitality sector and via special courses at hospitality colleges. A number of tourism development plans aim to create a vibrant tourism sector that can expand its contribution to the economy. These seek to support the sector through a variety of programmes and initiatives including the development of specific tourism subsectors such as cultural, lake-based, hunting, rural, archaeological, mountain and wine tourism, in addition to promoting the congress sector. Work continues on the categorisation of tourism facilities, through the adoption of the universal Rulebook on Categorisation by the Hotelstars Union. This is being extended through the adoption of special rulebooks for national restaurants and for accommodation facilities in rural areas. A number of topics have been the subject of tourism policy reforms, including: Reduction of VAT on tourism from 18% to 5%, Attraction of foreign investment for construction of hotels and tourist facilities, 337

3 Tourism Development Zones, One image - one brand for Macedonia as a tourist destination, Macedonia Timeless Campaign, Tour operator and airline subsidies. The Tourism Development Zones aim to attract investors by offering an initial bidding price for zoned land at EUR 1/m 2, personal income tax of 0% for the first 10 years, Value Added Tax for construction matters and construction services of 0%, training and job creation grants, and connection to utilities, with complete infrastructure outside the boundaries of the Tourism Development Zones provided by the Government. In order to stimulate the organised international tourism market, the Government decided to provide subsidies towards the costs of travel and tourism programmes developed and sold by tour operators and airlines bringing international visitors to the country. These subsidies range from EUR 25 for European countries to EUR 65 for some special tourism markets, with EUR 45 for intercontinental flights. 338

4 Statistical profile Table 1. Former Yugoslav Republic of Macedonia: Domestic, inbound and outbound tourism TOURISM FLOWS, THOUSAND Domestic tourism Total domestic trips Overnight visitors (tourists) Same-day visitors (excursionists) Nights in all types of accommodation Hotels and similar establishments Specialised establishments Other collective establishments Private accommodation Inbound tourism Total international arrivals Overnight visitors (tourists) Same-day visitors (excursionists) Top markets Turkey Greece Serbia Bulgaria Netherlands Nights in all types of accommodation Hotels and similar establishments Specialised establishments Other collective establishments Private accommodation Outbound tourism Total international departures Overnight visitors (tourists) Same-day visitors (excursionists) Top destinations TOURISM RECEIPTS AND EXPENDITURE, MILLION USD Inbound tourism Total international receipts International travel receipts International passenger transport receipts Outbound tourism Total international expenditure International travel expenditure International passenger transport expenditure Not available Disclaimer: Source: OECD Tourism Statistics (Database)

5 Table 2. Former Yugoslav Republic of Macedonia: Enterprises and employment in tourism Number of establishments Number of persons employed Total Tourism industries Accommodation services for visitors Hotels and similar establishments Food and beverage serving industry Passenger transport Air passenger transport Railways passenger transport Road passenger transport Water passenger transport Passenger transport supporting services Transport equipment rental Travel agencies and other reservation services industry Cultural industry Sports and recreation industry Retail trade of country-specific tourism characteristic goods Other country-specific tourism industries Other industries.. Not available Disclaimer: Source: OECD Tourism Statistics (Database)

6 From: OECD Tourism Trends and Policies 2016 Access the complete publication at: Please cite this chapter as: OECD (2016), Former Yugoslav Republic of Macedonia (FYROM), in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris. DOI: This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at or the Centre français d exploitation du droit de copie (CFC) at contact@cfcopies.com.

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