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UDC 338.48+640.4 ISSN 1330-7533 TOURISM AND HOSPITALITY MANAGEMENT AN INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH University of Rijeka Institut for Economic Promotion, Austrian Economic Chamber Vienna, Austria Alexandreion TECHNOLOGICAL EDUCATIONAL INSTITUTION (T.E.I) of Thessaloniki, Greece DEPARTMENT OF TOURISM MANAGEMENT TEI Thessaloniki, Greece Volume 13 Number 2 pp. 437-530 June 2007 OPATIJA, VIENNA, THESSALONIKI

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UDC 338.48+640.4 ISSN 1330-7533

TOURISM AND HOSPITALITY MANAGEMENT

AN INTERNATIONAL JOURNAL

OF MULTIDISCIPLINARY RESEARCH

University of Rijeka

Institut for Economic Promotion,

Austrian Economic Chamber

Vienna, Austria

Alexandreion TECHNOLOGICAL EDUCATIONAL INSTITUTION (T.E.I) of Thessaloniki, Greece

DEPARTMENT OF TOURISM MANAGEMENT TEI Thessaloniki, Greece

Volume 13 Number 2 pp. 437-530 June 2007 OPATIJA, VIENNA, THESSALONIKI

TOURISM AND HOSPITALITY MANAGEMENT Website: http://www.fthm.hr/hrv/zs_rad/casopisi/casopisi.html

EDITOR-IN-CHIEF Prof. Zoran Ivanovic, Ph.D.

University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Primorska 42, PO Box. 97, 51410 Opatija, Croatia; www.fthm.hr

Phone ++385/51/294-700, Fax. ++385/51/291-965, E-mail: [email protected]

INTERNATIONAL SCIENTIFIC AND EDITORIAL BOARD

Prof. Amal Aboufayad, Ph.D., Lebanese University, Lebanon Prof. Ahmet Aktaş, Ph.D., Akdeniz University School of Tourism and Hotel Management, Arapsuyu, Turkey Prof. Theoman Alemdar, Ph.D., Bilkent University, Ankara, Turkey Prof. Frank Brück, Ph.D., Wirtschaftsuniversität Wien, Austria Prof. Mato Bartoluci, Ph.D., University of Zagreb, Faculty of Economics, Zagreb, Croatia Prof. Dimitrios Buhalis, Ph.D., University of Surrey, United Kingdom Prof. Kaye Chon, Ph.D., Hong Kong Polytechnic University, Hong Kong SAR, China Prof. Evangelos Christou, Ph.D., University of the Aegean, Greece Prof. Constantin A. Bob, Ph.D., Academy of Economics Studies, Bucharest, Romania Prof. Chris Cooper, Ph.D., University of Queensland, Australia Prof. Muris Cicic, Ph.D., Faculty of Economics, Sarajevo, Bosnia and Hercegovina Prof. Krzysztof Dobrowolski, Ph.D., University of Gdańsk, Institute of Maritime Transport and Seaborne Trade, Sopot, Poland Prof. Georgi Georgiev, Ph.D., Southwest University «Neofit Rilski», Faculty of Economics, Blagoevgrad, Bulgaria Prof. Marian Gúcik, Ph.D., University of Banska Bystrica, Faculty of Economics, Banksa Bystrica, Slovakia Prof. Dogan Gursoy, Ph.D., Washington State University, USA Prof. Antti Haahti, Ph.D., University of Lapland, Finland Prof. Michael Hall, Ph.D., University of Otago, New Zeland Prof. Ritva Hoykinpuro, Ph.D., Lahti Polytechnic, Fellmanni Institute for Hospitality & Tourism, Lahti, Finland Prof. Ivanka Avelini Holjevac, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Prof. Elizabeth M Ineson, Ph.D., Manchester Metropolitan University, United Kingdom Prof. Peter Jordan, Ph.D., Österreichisches Ost- und Südosteuropa Institut, Wien, Austria Prof. Dobrica Jovicic, Ph.D., Faculty of Mathematics and Natural Sciences, University of Nis, Serbia Prof. Jay Kandampully, Ph.D., Ohio State University, USA Prof. Pavlos Karakoltsidis, Ph.D., Technological Educational Institute of Thessaloniki, Greece Prof. Ioannis Karamanidis, Ph.D., Technological Educational Institution of Thessaloniki, Greece Prof. Hanan Kattara, Ph.D., Alexandria University, Faculty od Tourism and Hotels, Alexandria, Egypt Prof. Slavka Kavcic, Ph.D., Faculty of Economics, Ljubljana, Slovenia Prof. Saad Al-Deen Kharfan, Ph. D., Tishreen University, Syria Prof. Fotis Kilipiris, Ph.D., Technological Educational Institute of Thessaloniki, Greece Prof. Metin Kozak, Ph.D., University of Mugla, Turkey Prof. Lazar Lazic, University of Novi Sad, Faculty of Mathematics and Natural Sciences, Department of Geography, Tourism and Hotel Industry, Serbia Prof. Silio Rigatti Luchini, Ph.D., Universita degli studi di Padova, Padova, Italia Prof. Hartmut Luft, Ph.D., Fachhochschule Wilhelmshaven, Deutschland Prof. Slobodan Malinic, University of Kragujevac, Faculty of Economic, Serbia Prof. Josef Mazanec, Ph.D., Wirtschaftsuniversität Wien, Austria Prof. Sofronija Miladinoski, Ph.D., Faculty of Tourism and Hospitality, Ohrid, Macedonia Prof. Dieter Müller, Ph.D., University of Umeå, Department of Culture Geography, Umeå, Sweden

Prof. Chavdar Nikolov, Ph.D., Southwest University «Neofit Rilski», Faculty of Economics, Blagoevgrad, Bulgaria Prof. Ludmila Novacká, Ph.D., University of Economics, Bratislava, Slovakia Prof. Giovanni Panjek, Ph.D., Universita degli studi di Tireste, Facolta di Economia il Preside, Trieste, Italia Prof. Franc Pauko, Ph.D., Faculty of Economics & Business Maribor, Slovenia Prof. Harald Pechlaner, Ph.D., Universität Innsbruck, Austria Prof. Milena Persic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Prof. Stevan Popovic, Ph.D., Faculty of Tourism, Hospitality and Trade – Bar, Montenegro Prof. Rayka Presbury, Ph.D., University of Western Sydney, Penrith South, Australia Prof. Goran Radovic, Ph.D., Faculty of Tourism and Hopsitality, Kotor, Montenegro Prof. Mukesh Ranga, Ph.D., Bundelkhand University, India Prof. Gordana Rechkoska, Ph.D., University of Bitola «St. Kliment Ohridski», Ohrid, Macedonia Prof. Chris Roberts, Ph.D., University of Massachusetts, USA Prof. Ana-Isabel Rodrigues, Ph.D., Polytechnic Institute of Beja, Portugal Prof. Ilija Rosic, Ph.D., University of Kragujevac, Serbia Prof. Rudolf Ruzicka, Ph.D., WIFI Österreich, Austria Prof. Odysseas Sakellaridis, Ph.D., University of the Aegean, Greece Prof. Josef Sala, Ph.D., Akademia Ekonomiczna w Krakowie, Poland Prof. Ian Senior, Ph.D., Emirates Academy, United Arab Emirates Prof. Alexey Sesyolkin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia Prof. Marianna Sigala, Ph.D., University of the Aegean, Greece Otmar Sorgenfrei, Fondation Nestle pro Gastronomia, Vevey, Switzerland Prof. Barbara Sporn, Ph.D., Wirtschaftsuniversität Wien, Austria Prof. Anders Steene, Ph.D., National Institute for Working Life, Stockholm, Sweden Akademic Vladmir Stipetić, professor emeritus, University of Zagreb, Croatia Prof. Snesana Stetic, Ph.D., University of Novi Sad, Serbia Prof. Jan Telus, Ph.D., Wyzsza Szkola Zarzadzania Gospodarska Regionalna i Turystyka, Kielce, Poland Prof. Ada Mirela Tomescu, Ph.D., University of Oradea, Economics Faculty, Oradea, Romania Prof. Paris Tsarta, Ph.D., University of the Aegean, Chios, Greece Prof. Francois Vellas, Ph.D., University of Toulouse, France Prof. Vladimir Veselica, Ph.D., University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia Prof. Craig Webster, Ph.D., College of Tourism and Hotel Management, Cyprus Prof. Shapour Zafarpour, Ph.D., Wirtschaftsuniversität Wien, Austria Prof. Elfrida Zefi, Ph.D., University «Fan S. Noli», Korça Economic Faculty, Korçë, Albania Prof. Igor V. Zorin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia Prof. Rudolf O. Zucha, Ph.D., Universität Wien, Austria

I

ISSN 1330-7533

TOURISM AND HOSPITALITY MANAGEMENT

Volume 13 Number 2 pp. 437-530 June 2007

CONTENTS

Research Papers

CROATIAN TOURISM AND EU ACCESSION 437 Ivo Kunst RESEARCHING THE TOURIST ATTRACTIONS AND THE ATTRACTIVENESS OF THE VALLEY OF THE RIVER MREZNICA

459

Rade Knezevic POSSIBILITIES OF MUSIC HERITAGE TOURIST VALORIZATION – AN EXAMPLE OF ISTRIA

469

Aleksandra Krajnovic, Ivana Paula Gortan-Carlin PORTS IN DEVELOPMENT OF MARITIME TOURISM – PROBLEMS AND CHALLENGES. THE CASE OF THE POMERANIAN REGION

483

Joanna Miotke-Dzięgiel THE ROLE OF THE ONLINE ADVERTISEMENT FOR THE CONTEMPORARY ENTERPRISE

493

Adam Salomon BENCHMARKING HUMAN POTENTIAL 499 Vidoje Vujic, Slobodan Ivanovic DEVELOPMENT OF EUROPEAN UNION AND JOINING PERSPECTIVE OF CROATIA

507

Ivan Vukovic POSSIBILITIES FOR DEVELOPING CULTURAL TOURISM IN THE MUNICIPALITY OF MOSCENICKA DRAGA – THE CASE OF HISTORICAL TRAILS

515 Elena Rudan

Book Reviews 523 Forthcoming events 525 Reviewers 529

II

TOURISM AND HOSPITALITY MANAGEMENT Tourism and Hospitality Management is an international, multidisciplinary, refereed (peer-reviewed) journal aiming to promote and enhance research in all fields of tourism and hospitality including travel, leisure and event management. The journal has been published regularly since 1995, twice per year (in June and in December) by the Faculty of Tourism and Hospitality Management in Opatija, Croatia in cooperation with WIFI Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria and T.E.I. - Alexandreion Technological Educational Institution of Thessaloniki, Department of Tourism Management, Thessaloniki, Greece. THM is publishing original papers along with empirical research based on theoretical foundation, and theoretical articles that contribute to the conceptual development in the field of tourism, hospitality, travel, leisure and event management. The Journal is designed to encourage interest in all matters relating to tourism, hospitality, travel, leisure and event management and is intended to appeal to both the academic and professional community working in this area. Two anonymous referees review each article. We kindly invite any comments or suggestion readers may have to improve the quality of our journal. Instructions to authors are listed at the end of the journal. Subscription Information Annual subscription price for organizations and institutions in Croatia, Austria and Greece - € 40, for all other countries - € 90. Individual annual subscription price for Croatian, Austrian and Greece citizens - € 10, for citizens of all other countries - € 20. The price of a single copy - € 30. Account number: 2360000 – 1101496052 Address: University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Library, PO Box. 97, 51410 Opatija, Croatia, E-mail: [email protected] Printed in 1000 copies

PUBLISHERS

University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Primorska 42, PO Box. 97, 51410 Opatija, Croatia

WIFI Institut for Economic Promotion, Austrian Economic Chamber, Wiedner Hauptstraße 63, A-1045 Vienna, Austria

Alexandreion Technological Educational Institution (T.E.I) of Thessaloniki, Department of Tourism Management, P.O.Box 141, 57400 Sindos, Thessaloniki, Greece

Supported by the Ministry of Science, Education and Sports of the Republic of Croatia

ADDRESS OF THE EDITORIAL OFFICE University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija,

Primorska 42, PO Box. 97, 51410 Opatija, Croatia Phone:++385/51/294-700, Fax. ++385/51/291-965

E-mail: [email protected]; www.fthm.hr

Tourism and Hospitality Management is indexed in the following databases:

ECONLIT AND JOURNAL OF ECONOMIC LITERATURE, PITTSBURGH, PENNSYLVANIA, U.S.A. CAB INTERNATIONAL, WALLINGFORD, OXON, OX 10 8DE, UK

C.I.R.E.T. – Centre International de Researches et d'Etudes Touristiques, AIX-EN-PROVENCE, FRANCE EBSCOHost Resesrch Datebases, Hospitality & Tourism Complete, Ipswich, Massachusetts, U.S.A.

© 2007 University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia, WIFI Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria, Alexandreion Technological Educational Institution (T.E.I) of Thessaloniki, Department of Tourism Management, Thessaloniki, Greece.

Printed in Croatia. All rights reserved.

ISSN 1330-7533

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki Greece

Department of Tourism Management

UDC 338.48(4-67EU:497.5)

Original scientific paper Received: 20.01.2007

CROATIAN TOURISM AND EU ACCESSION

Ivo Kunst Institute for Tourism, Croatia1

Abstract: The aim of the article is to examine the implications of the EU integration process on Croatian tourism. Analysing the experience of the countries which took part in the two last EU accession rounds, and focusing especially on Malta, Cyprus and Slovenia as most interesting cases for Croatia, integration process impact areas relevant for tourism sector have been pointed out. On the basis of this analysis, numerous areas of potential benefits and costs have also been defined and classified. The emphasis in the selected countries’ case study analyses has been directed primarily to identify: (i) charasteristic features of the tourism sector before the commencement of the EU negotiation process, (ii) modifications and/or possible turnarounds in the tourism development strategy as a result of the EU negotiation process and/or adaptations of the legal framework, as well as (iii) increases/decreases in the pre-negotiation levels of tourism demand, supply and receipts during the EU accession period. The analyses for all three countries strongly indicate that new tourism strategies that have been adopted, as well as dynamic growth of tourism receipts, coincide with the EU accession process. The new tourism development strategies lean strongly towards environment friendly development, as well as towards more efficient usage and preservation of space. Key words: European union, Croatia, EU membership, tourism sector, expected benefits and costs.

APPROACH

As a result of the signed Stabilisation and Accession Agreement in year 2004, Croatia has become the official candidate for EU membership. However, Croatia is aiming to fully join the EU during the year 2009 and is, hence, conducting an intensive international campaign. Regardless of whether Croatia is going to join the EU within the planned time frame, or somewhat later, especially in context of recent problems with the EU constitution and some member states’ attitudes concerning the future EU enlargement speed, there is no doubt that EU membership iplies significant changes in all spheres of Croatian economy2, including the tourism sector3. 1 Ivo Kunst, Ph.D., Institute for Tourism, Zagreb, Croatia 2 Hall, Michael C. (2006.) Tourism and the New Europe: Views from Beyond Europe. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 44-51.

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Since the tourism sector represents a vital sector of the Croatian economy, especially due to its positive effects on the balance of payment and foreign trade balance (during the year 2006, international tourist receipts amounted to 6.0 billion EUR4), it is only logical to question how the EU accession process is going to affect the overall tourism sector performance and business environment. In particular, there is the need to understand and objectively analyse various, tourism sector related, direct and indirect benefits and costs associated with the EU accession process. Although it is, at this stage, almost impossible to acurately quantify various benefits and costs associated to this process, the recent experiences of the „last accession round“ countries should provide a multitude of useful insights.

Apart from many significant differences between and among the „last accession round“ countries during their EU candidacy stage (area and population size, geographical position, resource base, level of economic development, structure of GDP, history and relatedness to the former „iron curtain“ countries), all these countries have been characterised by economic, political and/or social transition processes. In other words, in comparison to other EU memer states, these were the countries with insufficiently competitive economies, not yet fully stabilised political systems, and insufficiently transparent legislative systems. Due to these reasons, in order to fulfil the complex EU membership requirments, and in order to prepare themselves best for the new, much more competitive, economic environment, all the countires of the last accession round had been simultaneously working on two levels: (i) the demanding process of EU legislation harmonization, and (ii) structural adjustments of their economies5. All this holds for the tourism sector as well.

Having all this in mind, and in order to contribute to a smooth and effective adjustment of Croatian tourism sector to the new market environment, characterized by more pronounced competitive terms, and EU related “rules of the game”, this article aims to:

point out key trends that have marked the tourism sector development in selected countries of the last accession round during their EU candidate status,

point out relevant areas of benefits and costs in the tourism sector, associated with the EU accession process,

analyse key implications that the EU membership is likely to have on the tourism sector in Croatia.

Based on the above goals, the article will rely on the following

methodological setup: • as a result of comprehensive desk research, insight will be gained and key

areas detected where EU accession process affects the tourism sector most;

3 Attard, M. and Hall, D. (2004) Transition for EU accession: the case of Malta's restructuring tourism and transport sectors. In: Hall, D. (editor) Tourism and Transition: Governance, Transformation and Development. Wallingford, UK, CAB International, pp. 119-132. 4 Croatian National Bank (2006), Statistical review. 5 Pace, R. (2002) A small state and the European Union: Malta's EU accession experience. South European Society and Politics 7(1), 24-42.

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• as a result of „benchmark“ analyses of the selected „last accession round“ countries (those that represent a natural competitive set for Croatian tourism), an objective analysis of the EU accession process on the tourism sector is going to be performed;

• based on the experiences of the selected „last EU accession round“ countries, key areas of potential benefits / cost on the tourism sector will be determined (associated with EU integration process), and their expected impact on Croatian tourism will be elaborated;

• based on all previous analyses, most relevant conclusions for the future tourism development in Croatia, in view of EU accession, will be elaborated.

EU ACCESSION AND THE TOURISM SECTOR - DESK RESEARCH

With regard to tourism, there is no particular sectoral policy within the EU

legislative framework that addresses this sector of the economy. Namely, the EU legislation that the new member states have to harmonize with (Acquis Communautaire), consists of 31 chapters. These, with the exception of the agriculture and fisheries, horizontally define the relevant framework for conducting business within the EU, regardless of the specific economic sector. Hence, the development policy, operational management and organizational structure of the tourism sector is under the sole competence and responsibility of each member state. Nevertheless, there is no doubt that the EU membership affects the tourism industry in various aspects, among which one should especially point out the following:

• EU membership represents a specific, free of charge, promotion of the new member states. In other words, by means of constant representation in all sorts of media throughout the world, the general image of the new member states improves considerably. This has positive direct effects on tourism demand, visitation interest, and international tourism receipts;

• EU membership implies opening of the national air corridors to various low cost airline companies, as well as the greater representation of „regular“ airlines. This translates into easier overall accessibility, and more pleasurable, more flexible and cheaper arrival to such countries6;

• EU membership opens up an increased level of competition for the legal entities in new member states. This, in itself, has numerous positive effects on the quality of service, with considerable implications on the formation of the prices as well;

• EU membership also implies new investment into public infrastructure (roads, ports, airports, environment protection related projects – solid

6 Puczko, L. and Ratz, T. (2006) Product Development and Diversification in Hunary. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 116-126.; Kiralova, A. (2006) Tourism in the Czech Republic. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 104-115; Konecnik, M. (2006) Slovenia: New Challenges is Enhancing the Value of the Tourism Destination Brand. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 81-91.

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waste and wastewater treatment etc.), which translates itself positively on private sector investment (especitally FDI) in the tourism superstructure (hotel development, golf courses, marinas etc);

• EU membership, finally, implies the application of new, much stringent operational standards, especially in the area of consumer protection, waste management and quality of foodstufs and construction materials. This has direct negative implications on the cost structure of the local legal entities already active in the tourism sector.

Therefore, although the EU legislation does not treat the tourism sector in

specific, the process of harmonization with the EU legislative framework in the tourism sector in most of the “last EU accession round” countries has been characterized by various adjustments in their respective (tourism) legislature. These adjustments were basically directed by the provisions of the following Acquis chapters7:

• Freedom to provide services – necessary adjustments should enable the residents of other EU member states to obtain various permits for offering / perfoming tourism related services on equal terms with candidate countries' residents;

• Free movement of persons – necessary adjustments reflect the need to enable the residents of other EU member states to obtain employment on equal terms with the residents of the candidate countries;

• Free movement of goods – adjustments refer predominantly to the removal of all (trade) barriers (import duties, quotas etc.) that might affect the free movement of goods from other EU member states;

• Transport policy – refers to adjustments in the area of land, sea and air transport;

• Consumers and health protection – as regards to tourism, adjustments refer mostly to (i) consumers' rights for compensation in case of not consuming the service, as well as for consuming the service of improper quality, and (ii) quality controls of the foodstuffs being used in specialised food and beverage outlets;

• Social policy and employment – necessary adjustments in the tourism sector refer predominantly to working conditions and provision of working equipment;

• Small and medium-sized enterprises – adjustments are related predominantly to the various means of SME encouragement and promotion,

• Competition policy – necessary adjustments are related mostly to the provision of equal market conditions for all legal entities doing business on the territory of an EU candidate country.

In order to increase the level of their competitiveness, prepare themselves

most effectively for a more even market battle in new competitive environment, and

7 Malta Tourism Authority (2006). Preparation for EU membership. Available at http:/www.mta.com.mt(index.pl/tourism_and_eu..

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lower the EU accession transaction cost8, all countries of the last EU accession round have tried to ensure the accessibailty and utilization of various EU preaccession funds9. With regards to the tourism sector, key areas in which the candidate countries most frequently applied for EU money, can be summarised as follows10:

• Increase in the competitive ability (stimulation and promotion of the SME businesses development, projects related to protection of and revitalization of cultural heritage, application of new technologies, regional cooperation, destination management, etc.);

• Improvoment in the existing public utilities’ standards (by means of modernization and/or removing of existing bottlenecks in existing capital infrastructure such as sewage systems improvement, installation of modern wastewater treatment plants), and transport infrastructure roads, airports, border crossings etc.);

• Environment protection and preservation of space so as to ensure long–term development based on natural resources’ sustainability (including the more even regional development);

• Increase in the effectiveness and transparency levels of the public sector institutions / organizations,

• Various “capacity building” programs related predominantly with education enhancement, vocational training and requalification on one side, and to the establishment of the new generation of managerial staff of international competitiveness.

EU ACCESSION EXPERIENCE OF THE COUNTRIES MOST RELEVANT FOR CROATIA

Croatia is one of the Mediterranean countries with high seasonality of tourism,

whereas the traditional “sun and sea” product still represents a dominant product for the international markets. With this in mind, and due to the similarity in the resource base and tourism development history, it is only natural to consider Malta and Cyprus in their pre-accession phase, as countires whose experience is most relevant for Croatia. The third country whose EU pre-accession experience should be of utmost interest to Croatia is Slovenia, a country with an exit to the Adriatic, and a country which, together with Croatia, for a relatively long time used to be a part of former Yugoslavia. Additionally, Slovenia’s experience is of particular interest as well since this country, according to a large number of analysts11, has been most effective in the EU

8Theuma, N. (2006) Malta: Re-imaging the Mediterranean Destination. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 213-223.; Puczko, L. and Ratz, T. (2006) Product Development and Diversification in Hunary. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 116-126. 9 See more in: Republic of Slovenia, Public Relations and Media Office (2004). Slovenia entering the EU. Dosupno na http:/www.uvi.gov.si/eng/slovenia/publications/facts/european-union. 10 See more in: Malta Tourism Authority (2006). Preparation for EU membership. Available at http:/www.mta.com.mt/index.pl/tourism_and_eu. 11 See more in: Republic of Slovenia, Public Relations and Media Office (2004). Slovenia entering the EU. Available at http:/www.uvi.gov.si/eng/slovenia/publications/facts/european-union.

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preparatory phase, which resulted in minimization of the EU accession transaction cost. Finally, according to the European Travel Commission, in year 2004 Slovenia represented one of the countries with the most dynamic growth of the tourism sector12.

Due to the above stated reasons, further analysis will focus on these three countries, with the intention to investigate in more depth the following three areas:

• What were the most relevant features of the tourism sector before obtaining the EU candidate status;

• Were there any changes / shifts in the tourism development strategy that took place during the pre-accession period, and as a result of the changes that the EU membership imply; and

• Providing there were shifts in the tourism development strategy, have these shifts affected (and how) the tourism sector.

MALTA

Tourism development on Malta13 is characterised by a „classical” development cycle. Namely, following modest results in the initiation phase and gradual growth in the 1960-ties, during which tourism had not been treated as a particularly important sector for the national economy, the 1970-ties and 1980-ties have been marked by dynamic growth in tourist arrivals and overnights. This growth has been associated mostly with mass attendance, high seasonality, orientation on one product – „sun and sea”, and competing through low prices14. Finally, the phase of dynamic growth rates, with all attributes of low quality “mass tourism” switched places with stagnation (1990-ties) and decreasing interest for Malta as a tourist destination. As a conclusion, it can be stated that the tourism sector development in Malta, prior to obtaining the EU candidate status, had been characterized by the following features:

• Dependance on only the “sun and sea” tourism product, • Pronounced dominance of big international (British) touroperators on the

demand side (share of allotments in total tourist overnights around 85%), • Low prices as means of a competing strategy, • Dynamic growth of accommodation capacity, • Undeveloped value chain at the destination level, • Low service quality.

12 Konecnik, M. (2006) Slovenia: New Challenges is Enhancing the Value of the Tourism Destination Brand. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 81-91. 13 Theuma, N. (2006) Malta: Re-imaging the Mediterranean Destination. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 213-223. 14 Brigulio, L. and Vella, L. (1995) The competitiveness of the Maltese islands in Mediterranean international tourism. In: Conlin, M. V. and Baum, T (editors) Island Tourism; Management, Principles and Pracites. Chicester, UK: John Wiley & Sons, pp. 133-147.

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The beginning of the EU accession process represented a kind of a catalyst of positive changes in the sector15. Namely, almost simultaneously with the beginning of the negotiation process (1999), the Malta Tourism Authority, a special state institution, has been established. Its aim was: (i) to repostition the Maltese tourism on the international market, and (ii) to make is more internationally competitive.

Further, in view of the ever increasing attacks on the scarce primary space, in which the newly built holiday homes had “swallowed” more space than hotels and other commercial properties16, ecological aspects and sustainable tourism development17 have become key building blocks of the new development strategy. The new strategy of the tourism sector relied heavily on active participation of all the key stakeholders (local population, private persons and legal entities directly involved in the tourism industry, touroperators, travel agents, as well as the end consumers of tourism related services).

Finally, with the intent to permanently depart from the image of a cheap summer destination for mass tourism, strategic emphasis has been thrust particularly on:

• Protection of the primary tourist space from uncontrolled construction, • Quality (as opposed to quantity) – fewer number of visitors, higher

propensity to consume, • New product development (provision of diversified tourist experiences), • New vision of the tourism sector, new positioning and new image of

Malta as a tourist destination, • New approach to destination marketing.

The adoption of the new tourism sector development strategy, which

coincided with the EU accession process, showed very encouraging results. Namely, despite of the gradual decline in the overall number of international tourist arrivals / overnights growth rate, and on some occasions even in their decline in absolute terms, tourism receipts have been growing steadily. As opposed to the 1995 – 1999 period, during which the number of international visitors grew at a rate of 4.1% per annum, with 1.4 million international arrivals in year 19999, the 2000 – 2004 period was characterized by a growth rate of only 1.1% per annum, with 1.5 million international arrivals in year 2004. Also, the number of international overnights in year 2004 did not differ by much in comparison to year 1999 (12.0 million as opposed to 11.7). (Table 1)

Further, total number of beds in hotels and similar establishments in year 2004 declined in comparison to year 1999, the same being the case in achieved occupancy (53% in 2004, as opposed to 55% in 1999). However, the most striking shift is reflected in tourism receipts department. Namely, in comparison to the 1995 – 1999 period, in which total tourism receipts stagnated at a yearly level of around 650 million

15 Alipour, H. and Hall, D. (2006) The Mediterranean Enlargement: an Overview. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 199-212. 16 Alipour, H. and Hall, D. (2006) The Mediterranean Enlargement: an Overview. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 199-212. 17 Markwick, M. C. (1999) Malta's tourism industry since 1985: diversification, cultural tourism and issues of sustainability. Scottisc Geographical Journal 115 (1), 53 -72.

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USD (average growth rate of 0.6% per annum), in year 2004 Maltese tourism receipts exceeded 960 million USD. In other words, during the 2000 – 2004 period, despite the stagnation in international tourism arrivals and overnights, and regardless of the decline in available commercial accommodation capacity, tourism receipts grew, on average, at a rate of 6.3% per annum. Table 1.

Malta 1995 1996 1997 1998 1999 Malta 2000 2001 2002 2003 20041. International visitors 1. International visitorsArrivals (in '000) 1.193 1.123 1.238 1.326 1.402 Arrivals (in '000) 1.387 1.439 1.483 1.516 1.450Overnights in all types of accommodation facilities ('in 000) 10.919 10.665 11.187 11.326 11.658

Overnights in all types of accommodation facilities ('in 000) 10.266 11.067 10.599 11.115 10.973

Overnights in hotels and similar establishments (in '000) 7.632 7.311 7.730 8.046 8.150

Overnights in hotels and similar establishments (in '000) 6.978 7.475 7.021 7.712 7.763

Overnights in complementary accommodation facilities (in '000) 3.287 3.354 3.457 3.280 3.508

Overnights in complementary accommodation facilities (in '000) 3.288 3.592 3.578 3.403 3.210

Tourist receipts (mil. US$) 660 635 648 661 675 Tourist receipts (mil. US$) 754 721 714 856 9632. Domestic visitors 2. Domestic visitorsOvernights in all types of accommodation facilities ('in 000) N/A N/A N/A N/A N/A

Overnights in all types of accommodation facilities ('in 000) N/A N/A N/A N/A N/A

Overnights in hotels and similar establishments (in '000) N/A N/A N/A N/A N/A

Overnights in hotels and similar establishments (in '000) N/A N/A N/A N/A N/A

Overnights in complementary accommodation facilities (in '000) N/A N/A N/A N/A N/A

Overnights in complementary accommodation facilities (in '000) N/A N/A N/A N/A N/A

3. Accommodation capacity 3. Accommodation capacityHotels & similar establishments Hotels & similar establishmentsRoom count N/A N/A N/A N/A N/A Room count N/A N/A N/A N/A N/A# of beds 37.308 38.152 39.183 38.932 40.890 # of beds 40.578 40.691 39.790 41.365 39.770Occupancy (in %) 56,04 54,72 54,05 56,62 55,00 Occupancy (in %) 46,99 52,73 48,30 53,73 52,82Average length of stay (# of overnights) N/A N/A N/A N/A N/A

Average length of stay (# of overnights) 8,30 9,00 8,80 9,00 9,50

Malta - Key tourism indicators, 1995-1999. Malta - Key tourism indicators, 1995-1999.

Source: UNWTO, 2006, Compendium of Tourism Statistics Data 2000-2004, Madrid.Source: UNWTO, 2001, Compendium of Tourism Statistics Data 1995-1999, Madrid.

CYPRUS18

Following the division of Cyprus into two entities in year 1974, as opposed to the Turkish (northern) part of the island which became relatively isolated for international tourism, the demand for the Greek (southern) part of the island intensified dramatically, mostly due to global changes in international demand trends. As a result of such movements, tourism receipts amounted to 1.6 billion USD in year 1995. Moreover, more than 10% of local population had been directly employed in the hotel industry19.

However, such uncontrolled tourism development, dictated predominantly by

international demand, resulted in a situation very much similar to the Maltesian one in 18 Since Cyprus is still divided between Greece and Turkey, with only the Greek part of the island becoming the EU member, the analysis reflects only the situation within the Greek entity. 19 Ioannides, D. and Apostolopoulos, Y. (1999) Political instability, war, and tourism in Cyprus: effects, management, and prospects for recovery. Journal of Travel Research 38 (1), 51-56.

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the late 1990-ties. Namely, more than 20% of the tourism in the Greek part of the island had been controlled by a single touroperator (Thompson-Preussag)20, whereas the traditional “sun and sea” product became increasingly burdened by the problem of accommodation capacity overconstruction, which translated into declining average daily spending21.

Growing dissatisfaction with such unfavourable trends, nevertheless, initiated

awareness in the local community about the social cost of uncontrolled tourism expansion. Among the most pronounced problems, one should mention in particular the following:

• Irreversible “consumption” of the most valuable coastal strip as a result of uncontrolled construction of commercial and residential property,

• Shortages of potable water in the peak summer season, • Traffic congestion (collapse), and • Noise.

Due to the above stated problems and related loss of image in the eyes of the

international market, the number of international tourist arrivals to Cyprus from year 2000 onwards started to decline year after year. Namely, in year 2001, registered tourist arrivals were 2.5% lower than in year 2000; 12.2 % lower in year 2002 as compared to year 2001, whereas in year 2003, 3.2% lower than in year 2002. This negative trend has been finally stopped in year 2004.

Simultaneously with the process of legal harmonization in the EU pre-accession phase, and with intention to put an end to negative trends in international tourist arrivals and receipts, the Cyprus Tourism Organization (CTO), in line with the EU legislative framework, started to implement much stricter ecological standards and spatial planning guidelines. Also, in year 2003, the CTO formulated a new Tourism Development Strategy (up to year 2010) 22. Based on:

• Maximum adherence to and implementation of the sustainable development principles,

• Market repositioning, product diversification and product development, as well as

• A switch in the tourism image of Cyprus (into a destination which offers a preserved environment, numerous cultural attractions, and the highest quality service, predominantly to market segments of higher purchasing power),

the new strategic document targeted an increase in tourist arrivals at an average rate od 3.5% per annum, with the intention to double tourist receipts by year 201023. Such ambitious development goals should be accomplished by means of

20 Bianchi, R. (2001) Beyond the periphery: exploring the „new“ regional dynamics of tourism in Southern Europe. In: Toivonen, T. and Honkanen, A. (editors) North-South: Contrasts and Connections in Global Tourism. Tilburg: ATLAS, pp. 249-265. 21 Scott, J. and Topcan L. (2006) Building Bridges in Borderlands of the New Europe. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 224-236; 22 Scott, J. and Topcan L. (2006) Building Bridges in Borderlands of the New Europe. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 224-236; 23 CTO (2005) Strategic Plan for Tourism 2000 – 2010, Nicosia: Cyprus Tourism Organisation.

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development of a new generation of accommodation units in which small, cosy and individualized accommodation would prevail (boutique hotels; small, family owned hotels; villas and traditionally designed holiday homes).

Although the growth rates of accommodation capacity in hotels and similar establishments in the 1995 – 1999 period (2.1% per annum, on the average), in comparison to the 2000 – 2004 period (2.2% per annum, on the average) does not differ by much, it should be stressed that the growth had been rapidly deteriorating in the last years of the 2000 – 2004 period. This largely coincides with the adoption of the new Tourism Development Strategy. The same holds for the number of international overnights, since in the 2002 – 2004 period, these have been significantly reduced, as opposed to year 2001. Namely, in year 2001, in all means of accommodation facilities there were 18.1 million of international overnights recorded, whereas in year 2002 this figure dropped to 15.3 million. Finally, in year 2004 there were only 13.6 million international overnights. Table 2.

Cyprus 1995 1996 1997 1998 1999 Cyprus 2000 2001 2002 2003 20041. International visitors 1. International visitorsArrivals (in '000) 2.253 2.089 2.194 2.357 2.578 Arrivals (in '000) 2.912 2.841 2.495 2.416 2.478Overnights in all types of accommodation facilities ('in 000) 14.222 12.718 13.206 14.456 N/A

Overnights in all types of accommodation facilities ('in 000) 16.816 18.093 15.289 13.490 13.637

Overnights in hotels and similar establishments (in '000) 14.202 12.702 13.193 14.442 N/A

Overnights in hotels and similar establishments (in '000) 16.790 18.070 15.235 13.424 13.554

Overnights in complementary accommodation facilities (in '000) 20 16 13 14 N/A

Overnights in complementary accommodation facilities (in '000) 26 23 54 66 83

Tourist receipts (mil. US$) 1.788 1.669 1.639 1.696 1.878 Tourist receipts (mil. US$) 2.137 2.203 2.146 2.244 2.5502. Domestic visitors 2. Domestic visitorsOvernights in all types of accommodation facilities ('in 000) 374 511 554 594 N/A

Overnights in all types of accommodation facilities ('in 000) 603 739 870 968 1.081

Overnights in hotels and similar establishments (in '000) 354 486 529 575 N/A

Overnights in hotels and similar establishments (in '000) 597 729 868 957 1.069

Overnights in complementary accommodation facilities (in '000) 20 25 25 19 N/A

Overnights in complementary accommodation facilities (in '000) 6 10 2 11 12

3. Accommodation capacity 3. Accommodation capacityHotels & similar establishments Hotels & similar establishmentsRoom count 35.075 35.932 35.742 36.383 34.122 Room count 43.363 43.338 44.523 44.892 45.535# of beds 77.259 83.537 83.288 85.161 84.173 # of beds 84.479 87.834 90.112 91.139 92.239Occupancy (in %) 58,60 52,74 52,23 55,65 N/A Occupancy (in %) 65,10 73,92 63,04 57,48 57,61Average length of stay (# of overnights) 11,02 10,41 10,87 10,62 11,00

Average length of stay (# of overnights) 6,70 6,80 6,70 6,48 6,73

Cyprus - Key tourism indicators, 1995-1999. Cyprus - Key tourism indicators, 2000-2004.

Source: UNWTO, 2001, Compendium of Tourism Statistics Data 1995-1999, Madrid. Source: UNWTO, 2006, Compendium of Tourism Statistics Data 2000-2004, Madrid.

However, what needs to be specially emphasized in the case of Cyprus as well, is the fact that the growth rate of tourism receipts, as compared to the 1995 - 1999 period (1.2 per annum, on the average), enlarged severalfold during the 2000 – 2004 period (4,5% per annum, on the average). As a coincidence, the most dynamic increase in tourism receipts was recorded in years 2003 and 2004. Namely, as opposed to 1.9 billion USD in year 1999, the tourism receipts in year 2004 amounted to 2.6 billion USD. Athough such a dynamic increase in tourism receips cannot, with 100% certainy, be

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attributed only to the EU accession process and its consequences, it would, nevertheless, appear to be myopic not to mutually connect these two processes.

SLOVENIA

Unlike Malta and Cyprus, partly as a reflection of strictly defined roles of the Republics in former SFRY, Slovenia did not pay much attention to tourism sector development until its independence in 1990. That is why Slovenia never really faced the threat of mass tourism, uncontrolled building of (low quality) accommodation facilities, as well as of over construction in most valuable areas/zones/locations for tourism development.

On the other hand, however, and still as a part of former SFRY, Slovenia clearly identified several market niches of potential interest and, based on sustainable development principles, prudent utilization of its resource potential and favourable geography of the country, started to develop tourism focusing on the following, internationally marketable, products: (i) „sun and sea” summer holidays on the narrow coastal strip, (ii) „skiing holidays in winter, (iii) spa & wellness scattered around several thermal and health resorts. In the period after the gaining of independence, the country intensified its efforts not only to further develop the existing market niches, but to defferentiate them successfully from international competitors. The pivotal role in this process can be attributed to (i) a well designed development strategy, and (ii) an effective system of national tourism promotion before, during and after the accession into the EU24.

In this regard, strong promotion of the country as a brand in itself has always been the key strategic building block of the tourism sector development in Slovenia from its independence until the very day. On the other hand, key attributes of the country’s positioning have, more or less, remained unchanged throughout this period. Namely, the focal points in the long-term positioning of the Slovenian tourism have always been:

• Preservation of the environment, cleanliness, well kept landscape • Sustainable development, • Small is beautiful, • International service quality wrapped up in the Slovenian national expression, • Diverse tourist experiences available on a small territory.

Since the number of international tourism arrivals to Slovenia in the 1995 –

1999 period varies considerably, with the same trend valid for the preaccession 2000 – 2004 period (although the magnitude is much more moderate), positive effects related with the beginning of the EU accession process can best be illustrated by the number of international overnights, tourism receipts and accommodation occupancy figures.

24 Brezovec, A. (2001) Imidz drzave kot turisticne destinacije. Teorija i Praksa 38(4), 739-754.; Konecnik, M. (2002) The image as a possible source of competitive advantage of the destination – the case of Slovenia. Tourism Review 57(1/2), 6-12.; STB (Slovenian Tourist Board) (2004) Slovenia Invigorates – project. Ljubljana: STB. Available at http:/www.slovenia-tourism.si

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Namely, during the whole 1995 – 1999 period, international overnights have been increasing gradually at an average rate of 3.1% per annum, reaching 2.6 million in year 1999. On the other hand, during the 2000 – 2004 period, international overnights have been increasing at an average rate of 6.4% per annum, with 4.2 million overnights recorded in year 2004. Table 3.

Slovenia 1995 1996 1997 1998 1999 Slovenja 2000 2001 2002 2003 20041. International visitors 1. International visitorsArrivals (in '000) 63.674 71.876 76.568 65.587 60.009 Arrivals (in '000) 63.580 61.878 60.031 59.388 63.013Overnights in all types of accommodation facilities ('in 000) 2.322 2.437 2.945 2.934 2.627

Overnights in all types of accommodation facilities ('in 000) 3.277 3.653 3.847 4.009 4.198

Overnights in hotels and similar establishments (in '000) 2.059 2.167 2.500 2.478 2.267

Overnights in hotels and similar establishments (in '000) 2.758 2.879 3.049 3.166 3.258

Overnights in complementary accommodation facilities (in '000) 263 270 445 456 360

Overnights in complementary accommodation facilities (in '000) 519 774 798 843 940

Tourist receipts (mil. US$) 1.084 1.240 1.187 1.088 1.011 Tourist receipts (mil. US$) 1.016 1.059 1.152 1.427 1.7262. Domestic visitors 2. Domestic visitorsOvernights in all types of accommodation facilities ('in 000) 3.360 3.214 3.236 3.161 3.243

Overnights in all types of accommodation facilities ('in 000) 3.232 3.237 3.210 3.219 3.122

Overnights in hotels and similar establishments (in '000) 2.066 2.004 1.787 1.728 1.852

Overnights in hotels and similar establishments (in '000) 1.860 1.715 1.714 1.725 1.707

Overnights in complementary accommodation facilities (in '000) 1.294 1.210 1.449 1.433 1.391

Overnights in complementary accommodation facilities (in '000) 1.372 1.522 1.496 1.494 1.415

3. Accommodation capacity 3. Accommodation capacityHotels & similar establishments Hotels & similar establishmentsRoom count 16.213 16.847 16.350 16.195 15.753 Room count 16.265 14.970 15.056 15.534 15.785# of beds 33.878 36.028 33.714 33.771 32.272 # of beds 33.502 30.490 30.715 31.997 32.652Occupancy (in %) 33,36 34,92 34,71 38,26 38,95 Occupancy (in %) 39,40 46,39 47,39 47,60 47,98Average length of stay (# of overnights) 3,32 3,07 3,16 3,14 3,10

Average length of stay (# of overnights) 3,31 3,28 3,24 3,23 3,12

Slovenia - Key tourism indicators, 1995-1999. Slovenia - Key tourism indicators, 1995-1999.

Source: UNWTO, 2001, Compendium of Tourism Statistics Data 1995-1999, Madrid. Source: UNWTO, 2006, Compendium of Tourism Statistics Data 2000-2004, Madrid.

Further, due to the fact that the total accommodation capacity (measured either by means of total number of available beds, or by means of existing accommodation units), did not change significantly at all during the whole 1995 – 2004 period, the recorded increase in the number of international overnights contributed directly to a much better utilization of accommodation capacity (from 39% in year 1999, to 48% in year 2004).

Finally, and, most importantly, as opposed to the stagnating tourism receipts throughout the 1995 – 1999 period at the level of 1.0 billion USD (with negative growth at an average rate of 1.7% per annum), tourism receipts in the 2000 – 2004 period grew at an average rate of 14.2% per annum, reaching 1.7 billion USD in year 2004. As has been the case in the previous examples of Malta and Cyprus, it would be very difficult to argue that these trends are not strongly and positively correlated with the EU accession process.

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AREAS OF EXPECTED BENEFITS AND COSTS

Drawing on the experiences of the „last EU accession round” countries, especially in the access to and utilization of various EU preaccession and/or structural funds, and taking into account a general improvement of image of these countries after having gained the status of EU candidates as well, several areas of expected benefits and costs relevant for Croatian tourism industry can be defined. These can be grouped in the following way: Expected benefits

• As a result of the general improvement of Croatian image worldwide o An increase in tourist arrivals and overnights o An improvement in the present demand structre o Increased interest of FDI in Croatian tourism o A more pronounced interest of local population for SME start-

ups o Growth in employment o An improvement in tha accommodation supply structure o Improved transparency in the tourism sector (operational,

financial, legal) • As a result of increased business effectiveness of the tourism industry

operators o An increase in tourism receipts o Growing REVPAR (revenue per available accommodation unit) o Declining seasonality o Lower cost of capital o An increase in profitability o Better quality of service o More revenue for the state budget

• As a result of harmonization with EU legislation o Improved environmental protection (in adherence with EU

standards) o Efficient planning and protection of the most valuable space

from overconstruction and/or development projects of poor quality (as a combined result of improved spatial planning, more transparent process of construction permits issuance and effective supervision).

Expected costs

• As a result of harmonization with EU legislation o Higher operational costs for local business entities (branding,

promotion, usage of global distributional systems, communal taxes, education and training, costs of material etc.)

o Increased tax pressure (in order to provide financing for various projects related to higher communal infrastructure quality)

o Increased selection in the area of human resources (older, less adaptive age groups being most vulnerable)

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o Increased interest for construction of residential properties in prime areas not yet populated by the tourism industry operators (due to equal terms of acquiring property for locals and foreign physical persons)

• As a result of increased interest of foreign capital o More demanding business environment (intensified competition) o Insufficient capacity of existing capital infrastructure and

additional costs related with its expansion o Possible overcounstruction of tourism related facilities and/or

residential properties in most attractive tourism zones o Increase of real estate prices, especially in the prime tourist

areas/zones (related mostly to international demand for residential property)

o Accelerating social differentiation (young, educated and successful vs. old, unskilled and demotivated)

o Slow death of the old city centres in most attractive coastal cities such as Dubrovnik, Trogir, Primosten, Rovinj etc. (as a result of “indecent proposals” - selling houses to foreign owners of holiday residances)

o Partial loss of national identity.

Although there is no doubt that some of the previously defined areas of expected benefits and costs could be measured (such as the expected increase in tourist arrivals/overnights, additonal employment, improvement in the accommodation supply structure, decreasing seasonality, increase in the state revenues etc), it is not the intention of this article to provide rigorous quantifications of the magnitude in which the EU accession process will affect Croatian tourism.

On the other hand, however, the article will, in more detail, focus on those expected benefits and costs of the EU integration process that are not so easy to quantify, but which will, most likely, determine whether the tourism industry in Croatia will develop in a sustainable way over the long term. One could, hence, argue that these effects will be crucial for the long-term image of Croatia as a tourist destination. With this in mind, regardless of the long list of expected potential benefits associated with EU accession, it is of utmost interest to point out especially the indirect costs of the process in order not only to passively take notice of them, but to be able to control them and minimize their potentially negative impact.

EXPECTED BENEFITS ASSOCIATED WITH EU ACCESSION

There is no doubt that the expected improvement in the tourism demand structure should not be exclusively conditional upon Croatia's accession into the EU. However, there is strong evidence that the demand structure within a tourist destination is strongly positively correlated with its image in the international community25. In this

25 Konecnik, M. (2006) Slovenia: New Challenges is Enhancing the Value of the Tourism Destination Brand. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 81-91.

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regard, the following rule of thumb holds: the better a certain country is integrated into international economy and politics, the more it is attractive not only to an increased number of tourists, but to market segments of a higher propensity to spend as well. This is a direct consequence of a better accessability and perception of safety, which makes such a country more interesting for indivudual visitors, regardless of their primary visitation motives (business or pleasure). Having in mind a not so positive image of Croatia in the last fifteen years, despite the fact that it has improved considerably since year 2000, the mere status of a EU candidate, and especially the act of EU accession itself should multifold improve the international ranking of Croatia as a tourist destination. Apart from this „one time“ effect, the EU membership will, by means of various activities, initiatives, policies and EU presence worldwide (media), contribute actively to Croatian image over the long run. This, in turn, should translate into increased visitation, especially of the more wealthy market niches. As a result of the improvement of overall country image, hence, it is to expect that the market share of individual travellers (willing to pay more) will gradually grow, whereas the allotments' and groups' market shares should simultaneously decline.

Further, the EU accession implies harmonization in educational and skills enhancement programs, an increased interest of global hotel chains/brands, as well as the access to job openings and working experience in other EU member countries. As a combined result of the above, the total quality of service in all means of tourism establishments should gradually level with EU standards, which should, in turn, have additional positive impact on the tourist visitation and tourism receipts in Croatia26. Finally, a higher quality of service will additionally contribute to an increase of confidence in Croatia as a tourist destination that deserves to be repeatedly visited, which implicitly translates into increasing confidence and willingness to buy various Croatian tourist products / tourist experiences.

Since an increase in demand for visiting Croatia, as well as the improvement in the demand structure both ask for a pronounced diversification in the coutry's tourism offer, not only in the terms of new product development27, but in terms of value chain creation on the level of each microdestination, the relatively short tourist season should gradually extend. Hence, it is to be expected that the tourism demand will, in future, be much more evenly spread throughout the year.

Due to the legal harmonization with the EU, as well as to improved efficiency of the whole administative framework on the national and local levels, one can expect considerable improvements in the sphere of spatial planning, space utilization and space management over the long run (all according to sustainable development principles28). In view of the existing decentralized decision-making and high degree of local autonomy in the investment activity, coupled with expected improvements in the

26 Smith, M. and Hall, D. (2006) Enlargement Implications for European Tourism. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 32-43 27 van Woudenberg, G. (1999) Outbound Travel and Tourism Patterns Among Europeans: Trends and Forecasts until 2005. The Hague: Royal Dutch Touring Club ANWB. 28 See more in: Australian Government – Department of Environment and Heritage (2004) Steps to sustainable tourism. Canberra.

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spatial planning process, and a higher level of transparency in the project development and investment sphere, more adequate means for effective land preservation controls will be established. The same should hold for project evaluation yardsticks for various private sector's (aggressive) initiatives. All these improvements should, hence, guarantee the avoidance of further devastation („apartmanization“) of the most valuable tourism zones.

Simultaneously with the gradual materialization of the above stated processes, country risks related to doing business in Croatia will be diminishing through time as well. As a result of lower country risk, Croatia's overall credit rating should increase over time, with direct implications on the local cost of capital, which should drop to a level comparable with the EU average. Since a lower cost of capital implies an increased investment demand, such situation should translate into a multitude of local enterpreunial initiatives. Assuming an effective system of project development (starting from detailed masterplanning of zones designated for tourism development, followed by international tendering and project evaluation process, and ending with awarding the project to the owner of the best project conceptual design), new entrepreunial initiatives should in their own right contribute to the overall attractiveness of the Croatian tourism offer and the country's image on the world tourism market.

EXPECTED COSTS ASSOCIATED WITH EU ACCESSION

Despite the fact that most people, especially over the medium and long term, relate Croatia's process of EU accession mostly with numerous benefits, one should, nevertheless, be aware of a several direct and indirect costs which will not be possible to avoid. Having said that, and despite the fact that it is sometimes cumbersome to clearly delineate ones from the other, this article, as previously stated, differentiates between costs which can be attributed to the legal harmonization with the EU standards, from costs which will arise predominantly from increased interest of foreign private persons and legal entities to either acquire property or conduct business on Croatian territory.

With regard to the costs arising from the harmonization with the EU legislature, it can be said that their impact is directly associated with the EU accession. In this regard, one can treat them as direct costs of EU accession. However, it is somewhat doubtful whether their individual and/or combined impact represents a cost to Croatia at all. Namely, although these costs will negatively affect the performance of the Croatian tourism industry, and have an unfavourable impact on the standard of living in the short to medium term, these costs should, nevertheless, be regarded as investment into the future i.e. as investment into the long term related quality of life.

On the other hand, although costs related to increased foreign interest to invest in Croatia represent, to a certain extent, indirect costs associated with the EU accession, their potential negative impact could, by far, be more harmful for the country.

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Costs associated with harmonization to EU legislature

In terms of costs associated with the harmonization to the EU legislature, the first assocation that comes to mind is related to increased operational costs due to new, much stricter regulations in the area of consumer protection, workplace safety and environmental protection. Higher expected operational costs are only a logical consequence of inauguration of a series of additional controls of food hygiene and quality, as well as of food origin and tracebility (with direct negative impacts on material cost of tourist operators). Additionally, due to stricter consumer protection, workplace safety and security regulations, new mandatory investment, related neither to increases in revenue, nor to profitability improvements, will be required in order to remove various safety deficiencies and bottlenecks (with direct negative impacts on financial exposure). It is, therefore, to expect that a number of smaller tourism sector operators, especially those running family businesses will be negatively affected with these regulations, especially in the short and medium term.

On the other hand, increased operational costs of the tourism sector operators should be expected due to the need to invest increasingly in the communal infrastructure at the local level, especially in order to solve the still accute problem of solid waste, waste water and sewage systems. Regardless of the fact that all these investments in communal infrastructure modernization represent typical public sector investments, there should be no doubt that the local communities will find a way to transfer this costs to end consumers i.e. legal entities and population by means of increased and/or additional communal taxes.

Following the EU accession, with the abolition of all trade barriers, Croatian economy will be 100% exposed to the EU competition. This situation will reflect itself also in the sphere of human capital. Namely, with the entry of international legal entities into Croatia (production plants, trade representative offices, the service sector), the demand for young, qualified / skilled, mobile employees, with no objections to long working hours, will increase. As a consequence, the demand for elderly, less skilled, and less flexible (in terms of long working hours) members of the labour force, unable to meet the requirements of the international employers, will unavoidably decrease. This will create an additional differentiation within the labour force and cause an additional source of istability on the labour market, drawing it away from its short term equilibrium.

Despite the fact that equal terms regulating the acquisition of property for Croats and residents of other EU member countries should not, in itself, represent a significant social cost in the medium and long term, potential implications of this change in legislation must be viewed upon in the context of uneven economic power of Croats and residents of other EU countries. This fact, coupled with low population density, especially in areas most attractive not only for tourism development, but most suitable for construction of holiday homes as well, implies a possibility of enormously increased demand for buying property in Croatia. This situation is going to be even more pronounced after the EU accession, with the major improvement of the country's image, its accessability and communal infrastructure modernization. A similar trend

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has already been registered in all Mediterranean countries, with Malta and Cyprus representing the most recent examples29. In case of uneven economic development levels between Croatia and other EU member states, especially in the early years followign Croatia's EU accession, such an increase in demand, giving rise to a series of „indecent proposals“ to the local owners of land, might result in an insufficiently controlled consumption of high quality space and construction of uncommercial real estate beyond the level which could be justified in the context of long term sustainable development.

Costs associated with increased interest of foreign capital to invest in Croatia

An improvement in the overall image of Croatia after the EU accession in

completed will intensify the interest of global hotel chains and other hotel operators of regional significance to invest in Croatia. Despite a lot of positive aspects associated with this process, the increased competition, higher operational standards, brand recognition as well as the quality of (imported) management will, to a large extent, make life more difficult for the local operators. This will reflect itself not only in the additional investment needed for strategic market repositioning and product development, service quality enhancement and/or continuous upgrades of skills of employees and the management, but in the sphere of operational, day to day marketing, promotional activities and effective product commercialisation. In this regard, one should not exclude the need of local operators to enter into expensive franchise agreements and usage of global distribution systems.

Increasing interest of global hotel chains for establishing their presence on Croatian territory, especially in view of positive implications of this process on the overall desirability of Croatia as a tourist destination, should additionally spur the local investment demand (SME business). The declining cost of capital, together with a rapidly increasing variety of alternative sources of funding on the domestic market should help this process as well. Such additionally induced, locally generated, investment demand will further increase the threat of uncontrolled space consumption. Moreover, it will continously push the already existing infrastructure capacities to their limits, turning them into bottlenecks for further development30. Apart from the introduction of, already mentioned, additional communal taxes, the expected increase in local investment demand, if not channeled appropriately, might cause the effect of overconstruction in best infrastructurally equipped and/or most attractive tourism zones, which would, eventually, result in the permanent loss of exclusivity, and multitude of related negative implications for the Croatian tourist sector.

Another unavoidable concequence of the expected increase in investment demand, as well as in real estate demand, both associated with Croatia's EU accession,

29 Alipour, H. and Hall, D. (2006) The Mediterranean Enlargement: an Overview. Ini: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 199-212. 30 Smith, M. and Hall, D. (2006) Enlargement Implications for European Tourism. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 32-43.

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is the rapid growth of real estate prices throughout the country, with the most attractive coastal strip leading the way31.

Rapid growth in the real estate prices (contruction sites as well as already existing houses / apartments) will further intensify the propensity of present (local) owners to sell their properties and, in doing so, permanently solve own material needs. Based on the already existing price ranges and assuming the trend of increasing prices will proceed for some time in the future, the number of property involved transactions is about to increase progressively. One of the obvious results of this process is the emergence of a new class of unproductive Croatian rentiers. This would not be a reason for a major concern had the process not affected the most attractive costal cities (or their most valuable inner cores) such as Dubrovnik, Primosten, Trogir and/or Rovinj. Namely, the old city cores of these cities, not so long ago having the role of prime meeting / conversion points where life was most intense, have already started to depopulate and gradually die away throughout most of the year (when their new inhabitants are away). Providing such city core depopulation trend would continue according to this negative scenario, one could justifiably address the issue as a partial loss of extremely valuable element of national cultural heritage and, hence, of a partial loss of national identity.

CONCLUDING REMARKS

Croatian entry into the EU implies considerable changes in the economic environment of the country in which the tourism sector is no exception. Although the EU, apart from agriculture and fisheries, did not formulate specific, sector related, economic policies, there is no particular guideline how this sector should develop within the EU member countries. Nevertheles, the experiences of the „last EU accession round“ countries suggest that the EU accession process influences the tourism sector in more ways, out of which one shoud stress especially the following:

• EU membership has positive effects on general image of the member countries, which indirectly reflects itself through an increase in tourist visitation and tourism receipts in these countries;

• EU membership implies new investment in communal infrastructure (roads, ports, airports, projects related to environment – wastewater treatement, sewage systems, solid waste management etc.), which largely contributes not only to the preservation and long-term protection of space as a prime tourism resource, but to the attractiveness of the country for tourist visitation as well;

• Due to an improvement of the general image of the member countries, removal of „bottlenecks“ in communal standard and introduction of effective controls in preservation of valuable space from potential degradation, EU membership intensifies the interest of private capital investments (FDI) into commercial accommodation supply, as well as in uncommercial real estate property.

31 Smith, M. and Hall, D. (2006) Enlargement Implications for European Tourism. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 32-43.

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The analysis of tourism development process in Malta, Cyprus and Slovenia, last EU accession round countries which are especially relevant for Croatia, mostly due to their location and orientation towards the sea, importance of tourism for the national economy, and key features of the tourism sector before the initiation of the EU accession process, have brought additional insight into the above conclusions. Namely, it is indicative that new tourism development strategies in these countries, emphasizing environmental protection and effective utilization of space (not only as a prime tourism resource, but as a potential constraint for further development), which both can be subsumed under the common denominator of sustainable development, have coincided with the beginning of the accession process. The same holds for the dynamic acceleration in tourism receipts. Despite the fact that it would not be correct to conclude that these positive shifts are a result exclusively of different perception of these countries in terms of international tourism demand resulting from the EU accession process, it would, nevertheless, be even more difficult to argue against such a statement.

Further, regardless of the date on which Croatia will become a member of the EU, one can rightfully expect that the quality of the Croatian tourism product will considerably improve during the preaccession period. This improvement will be largely a result of the accommodation supply restructuring (an increase in the number of hotels and similar establishments, and a simultaneous decline of the complementary accommodation), improvement in the quality of service, new product development and improvements throughout the tourism value chain (as a result of the dynamic growth of the SME sector). All this, coupled with the implementation of new, much stricter spatial planning rules and environment protection standards, should contribute considerably to the positive shift in the prevailing image of Croatia as a cheap destination with limited offer of tourism experiences. Finally, such trends will bring about a positive shift in the demand structure and total tourism receipts. Namely, Croatia will be able to rely more on the upper-middle and upper market segments, willing to pay more not only during the peak summer season, but troughout the year as well.

Apart from expected growth in tourism arrivals, overnights and receipts within the country, one should also stress the fact that the EU membership implies gradual removal of some of the currently most accute development constraints, especially in view of long term sustainability of Croatian tourism. This refers in particular to the communal infrastructure modernization, effective blockage of the „wild construction“, as well as the irreversible destruction (opportunity cost) of high quality space through overconstruction of private apartments

On the other hand, and taking into consideration both, a significant discrepancy in wealth, as well as the continously growing interest of the residents of other EU member countries to acquire secondary (holiday) homes, predominantly along the Croatian coastal strip, it is almost certain that it will not be possible to protect in full the most valuable (coastal) zones from new residential construction. In this context, one should take notice of the threat of possible overconstruction. Finally, due to skyrocketing real estate prices in some of the most attractive coastal cities, there is a real threat of emergence of deserted „ghost“ towns throughout most of the year.

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Nevertheless, assuming that most of the specified socio-economic costs associated with Croatia's EU accession is effectively controlled, there should be no doubt that the EU integration process should considerably and permanently improve the image of Croatia on the international tourism market, and contribute significantly to the quality and diversification of the Croatian tourism product. In doing so, it is paramount to pay maximum attention to the preservation of the country's natural resources. Namely, the preservation of the environment and effective space utilization management will, over the long term, be crucial for Croatia's positioning on the international tourism market and safeguarding its „terms of trade“.

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Markwick, M. C. (1999) Malta's tourism industry since 1985: diversification, cultural tourism and issues of sustainability. Scottisc Geographical Journal 115 (1), 53 -72.

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Puczko, L. and Ratz, T. (2006) Product Development and Diversification in Hunary. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 116-126.

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Scott, J. and Topcan L. (2006) Building Bridges in Borderlands of the New Europe. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 224-236

STB (Slovenian Tourist Board) (2002) Strategija Trzenja Slovenskega Turizma 2003-2006. Ljubljana: STB STB (Slovenian Tourist Board) (2004) Slovenia Invigorates – project. Ljubljana: STB. Available at

http:/www.slovenia-tourism.si Smith, M. and Hall, D. (2006) Enlargement Implications for European Tourism. In: Hall, D., Smith, M. and

Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 32-43.

Theuma, N. (2006) Malta: Re-imaging the Mediterranean Destination. In: Hall, D., Smith, M. and Marciszweska B. (editors) Tourism in the new Europe – The Challenges and Opportunities of EU Enlargement, CAB International, pp. 213-223.

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Forecasts until 2005. The Hague: Royal dutch Touring Club ANWB. Weber, S., Horak, S. and Mikacic, V. (2001) Tourism Development in the Croatian Adriatic Islands. In:

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki Greece

Department of Tourism Management

UDC 91:338.48](497.5 Mreznica)

Preliminary communication Received: 21.03.2007

RESEARCHING THE TOURIST ATTRACTIONS AND THE ATTRACTIVENESS OF THE VALLEY

OF THE RIVER MREZNICA

Rade Knezevic

University of Rijeka, Croatia1

Abstract: The River Mreznica (64 km) is a watercourse in the region of Central Croatia. In the valley of the Mreznica, the forms of the relief created by erosion and deposits present an important basis for tourism development. This paper explores their appeal (attractiveness). In terms of tourism, about 10 per cent of the direct resources have already been valorised, while the remaining resources represent potential tourist attractions. The real tourist attractions are located in the lower valley, whereas the potential attractions are found in the middle and upper river valley. Access to potential attractions and their valorisation in tourism is impeded by the spreading of the underbrush, which has advanced considerably over the past twenty years, and by the fact that the upper valley is located in the zone of the “Eugen Kvaternik” Military Polygon. Travertine barriers, which have created a specific type of waterfalls and cascades, together with mills, bridges and ferries, characterise the tourist attractions in the valley of the River Mreznica. Key words: tourism, Mreznica, travertine, waterfalls, mill.

INTRODUCTION

The economic and geographic valorisation of the Mreznica valley is linked to the formation of settlements by immigrant cattle-raisers during the time of the Croatian Military Border in the sixteenth century.

With the end of the Turkish threat, the importance of the lower valley became

prominent in terms of traffic (transit). The Emperor Joseph Road, connecting the towns of Karlovac and Senj in the late eighteenth century, was built at that time as a part of efforts made to develop a transport system linking the Danube Basic and the north Adriatic.

1 Rade Knezevic, Ph.D., Assistant Professor, University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia.

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The lower valley of the River Mreznica continued to be important for transit traffic even after the construction of the Karlovac-Rijeka railway in 1878 and its branch-line from Ostarija to Split in 1926.

Unlike the longitudinal routes, the transversal routes established in this region

failed to be of any permanent significance to, or exert any impact on, the valley’s function as a traffic junction. Hence, the elongated layout of settlements is understandable, because they are tied to the geo-strategic importance of longitudinal traffic routes.

A crisis of the traditional economy and the growing level of emigration in the

second half of the twentieth century were the cause of spreading social decline, as well as change to the environment that held great potential for (tourism) development.

The importance of the valley as a tourism asset is pronounced in the region

stretching from Generalski Stol to Duga Resa. Rural tourism is developed in this area, with holiday homes and cottages overrunning the attractive parts of the valley.

In previous hydro-geographic research, the River Mreznica is described as a

river having high, rocky banks and a deeply incised channel. Two long, narrow alluvial deposits characterise the upper and middle part of the valley (Fras, 1835). Underground drainage in the river basin of the Mreznica was surveyed in the mid-nineteenth century (Palfy, a Border general, headed the research). Drainage was measured using staves that were thrown into pits (Pilar, 1876).

The basic hydrographic data on the cross-section and maximum width of the

river channel (49 metres), and the river’s mean (2.31 metres) and maximum depth (2.94 metres), as measured at Mostanja, were already known in the late nineteenth century (Senoa, 1895). The river’s left tributaries were also systematically researched because of their more important social role and their greater number. In particular, research focused on the flows of the Zagorska Mreznica and Dretulja, and on the connection between the Lake Blato and the River Mreznica (Poljak, 1922, 1925).

The Bannat Electricity Company carried out highly complex hydro-geological

research of the river basin (1939 – 1941). Later, Elektroprivreda Hrvatske, the Croatian electric-power supply company, sorted out and expanded the research initiated, and then went on to make a thorough survey of the River Zagorska Mreznica (1954). The results of these studies were put to use in establishing the Gojak hydroelectric power system, and in making Lake Sabljaci, an artificial lake (1957).

A number of authors (Malez, 1956, 1957; Herak, 1957; Bahun, 1970) have

looked into the erosive impact of drainage in the basin of the River Mreznica. These authors agree that drainage over the basin’s gentle terrain has endowed the basin with a particular diversity of relief (the V-shaped valley in the river’s upper regions, and meanders with stream and river deposits in the lowlands).

The travertine barriers found in the watercourse are a major attraction to

tourists. 93 have been counted, many of which are 1 – 2 metres in height (Pepeonik, 2000). Despite the fact that tourism represents a hope for revitalising the region’s

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economy, its development is not based on any particular spatial concepts, and as such, it poses a serious threat to the highly vulnerable karst eco-system (Maradin, 2007).

NOTES ON METHODOLOGY

In valorising a river valley, a crucial spatial aspect relates to the river channel, the riverbanks, and the valley plain. Composite valleys have played a positive role in the formation of settlements and in the construction of traffic routes. Composite valleys are valleys in which alternating wide valley plains (hollows) and narrow areas (sometimes in the form of gorges) appear. In spatial terms, valleys that are narrow, deep and impassable generally have a negative role, although in a specific period in human social and technological development, these same valleys might take on a particular role and gain special value (most often, in terms of tourism).

The valley of the River Mreznica has a simple morphology, meaning that it

becomes lower and wider as it progresses from the river’s source to its mouth. In relation to the surrounding relief, the valley is longitudinal (parallel with the global configuration). Because of its openness in the direction of the Sava drainage basin, the Mreznica valley (71.4 km) is considerably longer than the river channel (64 km).

This paper discusses the valley’s attractions and appeal, rather than its tourism

resources, primarily because the valley is not yet being managed as a destination. Rural tourism, together with several restaurants built near the falls, forms the basis of the tourist trade. Visitor arrivals (2,000 – 5,000 visitors annually) are arranged through tour-operators who possess no concessions for use of the river.

RESULTS AND DISCOURSE

The tourist-attraction base corresponds to the river’s flow mechanism. The majority of potential tourist attractions are located in the upper valley where fluvial effects are greater. The travertine barriers, creating waterfalls and cascades, are complex tourist attractions2. There are also chutes, places in the riverbed where the river tumbles over travertine barriers.

Travertine barriers are made of travertine rock formed in the river channel

during the post-Pleistocene era. Visual contact between tourists and various travertine formations is especially important. Travertine is a crucial factor in creating other tourist attractions as well (water level, temperature, water colour).

The travertine-based attraction is composed of 93 travertine barriers (Table 1). The total length of all the travertine barriers is 2,790 metres (this being a general

estimation that needs to be remeasured), considerably longer than the length of travertine barriers on other watercourses that have become well-known tourist attractions.

2 Waterfalls and cascades form over drops in the riverbed. Waterfalls differ from cascades in that they have a steep drop and generally greater height.

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Table 1: Waterfalls on the Mreznica According to Heigh (in meters)

Unknown Up to 0.5 0.5 to 1 1-2 2-3 3-4 4 and over TOTAL

No. 5 16 19 31 10 6 6 93 % 5,4 17,2 20,4 33,3 10,8 6,45 6,45 100

Source: Pepeonik, 2000.

The travertine barriers on the River Mreznica have not risen above the travertine threshold behind which the water of the river pools. Because of this, the channel does not have a step-like profile and its longitudinal cross-section is fairly regular. The indentedness of the falls coincides with their height, making the Susnjar Falls, Milkovic Falls, Klaric Falls and Rebic Falls the most indented falls of the river. The only problem is that travertine barriers are not always located close to one another, resulting in a low density of natural features in some sectors.3

In addition to viewing and experiencing the travertine formations, the

opportunity to learn more about them is also an element that can enhance tourist appeal. The travertine in the channel of the Mreznica clearly displays its petrographic composition and the conditions for the formation of travertine. In several places, sunken travertine thresholds are also visible.

In addition to the parent rock in the riverbed, the waters of the Mreznica, a

karst river, are also vital in the production of travertine. The partial pressure of carbon dioxide in these waters is high (in some sectors of the channel, about 15 times the pressure of atmospheric carbon dioxide). The ability of these waters to dissolve other substances can be expected to grow, given the fact that dissolved carbon dioxide is produced through the respiration of roots in the surrounding forests and that forestation is spreading and air temperatures, increasing.

Calcium hydrogen carbonate is generated as a result of the dissolving of limestone (calcium carbonate) in water. As carbon dioxide pressure decreases in the downstream channel, the chemical conditions for depositing calcium carbonate are boosted. Plants located on the falls or in the area of the water spray are the base on which it is deposited. The quantities of dissolved calcium carbonate diminish in the downstream direction, and at the 61st kilometre of the River Mreznica, travertinisation ceases.4

In some towns along the River Mreznica, the terms vodeni kamen and lahnjak

are used as synonyms for travertine (in international transcription, the terms sedra, bigar and travertin are often interchangeable).

Priority attractions also include canyons, essential to experiencing the beauty

of the landscape. The river’s channel is carved into the karst terrain in which two

3 The density of the travertine barriers is greatest between the seventh and thirty-first kilometre of the river, with an average of one barrier every 436 metres. On the thirteenth kilometre of the riverbed, there are 11 waterfalls/cascades, whereas on the last ten downstream kilometres of the channel, there are only seven travertine barriers. 4 Research on carbonate sedimentation was conducted at the Plitvice Lakes. In the first ten kilometres, the water loses 28 grams of calcium carbonate per cubic metre.

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different types of substrate meet, each with its own hydro-geological properties and resistance to wear. The lower valley rests on dolomite, and the middle and upper valley, on limestone. Although limestone is more resistant than dolomite, it is porous resulting in less erosion. This has caused the middle and upper course to be shaped as a narrow valley that in places expands from narrow passes (gorges, ravines) into canyons with almost sheer banks. The sides of these canyons are not particularly high, although they do rise above the surrounding terrain. The dominance of the high banks over the surrounding areas has made them into spots with panoramic views.

Many speleologic formations can be found on the limestone banks of the

middle and upper valley. However, only in the larger caves have the cave portals been explored. These caves should be rich in cave ornaments (stalactites and stalagmites), because, in the dark of the caves, these ornaments are formed from the same solution that produces travertine in the riverbed. Especially attractive are the portals of caves (hollowed out by the river), which can be entered only by boat. Some tourists, keen of underground rock climbing, might be attracted to untouched caves and deep pits.

Another geological tourist attraction is the islands, known locally as ade,

which are mainly the result of deposits. These islands are covered in the same underbrush that covers the surrounding land.

The appearance and incidence of geomorphologic attractions makes them the

most suitable starting point in exploring the complexity of the Mreznica valley in terms of tourism. They are not associated with any concrete tourist motivations or activities, because they merely serve to facilitate their identification. Over time, deviations are likely to occur in those activities that are connected to such attractions.

This is not the case, however, with hydrographic potentials, as physiological

criteria exist that determine their appeal. This pertains, in particular, to water in which tourists may bath or may use as a public utility. Bathing water is required to meet several basic criteria. These are:

− the purity criteria − a minimum depth of 80 cm of bathing water − a temperature higher than 18°C during the bathing season − the physical qualities of the banks and bank beds. The majority of rivers in Europe are polluted for bathing, especially during

low flows, when the proportion of contaminated water is unfavourable. Ecologically, the Mreznica is classified as a first category river in which only occasional pollution has been recorded. The purity of the river’s water is foremost the result of socio-economic conditions marked by low population density, the minimum use of chemicals in agriculture, and the structure of the local industry.5 It should be noted that the potential threat of contamination is heightened at the location of falls and cascades, because this is where water aeration is increased. When water aeration is high, this

5 Occasional pollution was registered during the operation of the kraft-liner paper plant in Plasko from 1965 to 1990. In several occasions, alkalis released from the plant entered the Mreznica through the River Dretulja causing the extermination of fish.

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increases the portion of oxygen in the water, which in turn increases the possibility of oxidising harmful substances that might be dissolved in the water.

Travertine barriers are especially important for bathing in the River Mreznica,

because of the effect they have in providing: − a constantly sufficient depth of water − a favourable water temperature.

Namely, data published by the Belavic Hydrological Station clearly show that

the river’s flow and water level in the summer are hydrological dimensions that are not fully aligned (Maradin, 2007). During the summer, flow values are lower than water levels (the opposite happens in winter), because the channel is, to some extent, lake-like, with water flowing only at the lowest drops of the travertine barriers.

The sluggish flow of the river enables the water to become warm faster than,

say, the water in a very energetic channel. In the summer, the water is too cold for bathing only in the source channel and at those parts of the river channel where marginal springs exist (12°C). From the twelfth kilometre of the river (Cicin Bridge) to its thirty-seventh (the village of Erdelj), the temperature of the water throughout the bathing season ranges 18 – 23°C, while further downstream it ranges 23 - 26°C.

The steep banks of the middle and upper channel make it difficult to enter the

water (sandbars are few). Also, the banks of the lower valley (and the middle valley, in places) are marshy in areas with silt deposits.

The asymmetry of the riverbed, a frequent criterion in selecting a river beach

(swimmers, non-swimmers, diving into the water, underwater swimming), is correspondent to the flow of a meandering river. The profile of the concave side of the meander is steep, whereas the convex side is a gentle slope. The water oscillates vertically in the channel on the concave side of the meander. Hence, this cross-section profile of the channel is constantly wet, while the convex side of the meander becomes very shallow or dries up in summer.

The bottom of the beaches, which are of the conventional type, are covered in

greyish silt, which most likely originates from waters rich in dissolved calcium carbonates. Downstream, the portion of silt declines. The crystals in this type of silt are small and make walking river bottom all the more pleasant. In the lower channel, sediments composed of alluvium created by the wear of dolomite rock provide safety to swimmers.

The fact that the microbiological purity of the waters is increasing (first-class

quality according to www.mzopu.hr/doc/Izvjesce 2006/07), together with pleasant water temperatures, leads to the conclusion that River Mreznica possesses the most favourable conditions for the development of bathing tourism in inland Croatia.

In this segment of the offering, receiving capacity can be improved through

the construction of heated swimming pools and by prolonging the bathing season. In similar circumstances in other countries, water is heated in a completely environment-friendly was using solar cells. Taken from the riverbed, the water is returned to the

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river after use. Because the water supply system is based on the gravitational flow of water, energy consumption is negligible.

Rafting and kayaking have especially developed on the River Mreznica. These

recreational activities are suitable for watercourses that have a steep channel with bends and a suitable quantity of fast-flowing water. Rivers with a nival regime have a great advantage, because their maximum water levels occur during the warm time of the year, which is more suitable for rafting and kayaking.

The channel of the River Mreznica is suitable for rafting and kayaking

(riverbed drop of 0.0027 per thousand, average speed of flow at 2.86 m/s) providing specific criteria are strictly adhered to. The most suitable section is the upper channel (this section of the channel is part of the “Eugen Kvaternik” Military Polygon under the administration of the Croatian Ministry of Defence.

The fundamental issue in terms of the environment is that users are neglecting the

principles of sustainable usage and are destroying the travertine. Their behaviour, in particular, the behaviour of kayakers, is based on personal criteria, because, at present, Croatia law does not regulate the use of inland waters for bathing and recreation. Also, concessions for specific tourism activities on whitewater (which has a strong flow, with rapids and cascades) are given to concessionaires who are not responsible businesspeople.

In such unregulated circumstances, kayaks are used (the most common being

the K-2 kayak, the longitudinal line of which is made of hard plastic) that scrape along the barriers when the water level is low, creating travertine detritus.

Kayakers are making the draught of the travertine barriers deeper, which

enables them to float from one basin into another, and eliminates the need of carrying the kayaks across low basins.

The erosion of travertine is likely to have unconceivable effects on the aquatic

environment, making it essential to ban kayaking and rafting during the hydrological period of low water level (Figure 1).

The River Mreznica is also a medium that is suited to other sports and

recreational activities, as well as to adventure activities for appropriately equipped and prepared tourists. The spatial and environmental conditions needed for such activities can be found in those locations of the river which are suitable to underwater orientation in fresh waters, sport fishing, rowing sports and sports involving vessels (according to the criteria applied in sports literature, there are 66 sub-types for the type of sport involving water-related recreation, fun and games). Especially important are the locations in which activities can be developed that attract a great number of competitors and spectators.

In a certain way, the vegetation, as an attraction, growing in or around the

channel is a limiting factor of tourism valorisation of the River Mreznica. Conditions for growth in the channel are favourable in places where the river mkes a bend (slower flow), and during the time of year when the amount of dissolved carbon dioxide

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(needed for photosynthesis) is sufficient and the water temperature is higher the 14°C. In order to prevent such spots from taking on the features of a swamp, the marsh vegetation needs to be uprooted (this is mainly carried out by environmental associations registered in Karlovac and Duga Resa).

Figure 1: Mean monthly water level (MW) on the River Mreznica (Mrzlo Polje Station 1976 – 1980)

0

20

40

60

80

100

120

140

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII.

month

Wat

er le

vel (

cm)

Source: Meteorological and Hydrological Service

The spreading of shrub-like vegetation on areas that were once used for agriculture makes it impossible to access the Mreznica from land (accessibility criteria). Changes are primarily caused by changes in the structure of settlements located along the Mreznica channel and by advanced depopulation (Table 2)

Over the past twenty years, the share of forests in populated areas has

increased from about 50 per cent to 75 per cent, while the existing forests have become even more dense and impenetrable.

At the same time, forests represent a vital element of the landscape and an

important factor in tourism planning. In such circumstances, the forest management and cultivation strategy needs to be based on promoting English-style parks (landscaped nature), as this is the only way the underbrush can be transformed into a tourist attraction.

Secular buildings, including commercial facilities (mills, bridges, ferries) and

residential buildings, constitute the most important elements of regional identity. Also important are movable cultural assets, most of which have been collected

and are preserved in native museums. There are 37 mills on the River Mreznica. Provided the appropriate conditions

are secured (reconstruction), these mills could attract tourists. Bridges (11) are attractive parts of the lower valley, as they were constructed

across the wide channel and have pronounced supports. The bridge at Zvecaj features creative architecture and it is the longest (208 m) wooden bridge in Croatia.

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Table 2: Demographic changes in settlements along the Mreznica channel

Source: Nejasmic, 2000.; Croatian Statistical Institute, 2005.

Ferries are used in places where crossing the river was rational or essential.

The best ferries are those made of connected boats and they are attractive for sailing. Of all anthropogenic resources, houses are the most important. The structure

of traditional houses was adapted to specific natural and historical circumstances. Some of the more isolated villages possess an ethnic quality (Ozanici and the

village of Mreznica) and with minimum changes could become tourism assets. A part of the tourist trade that evades precise statistics takes place in holiday

homes. The greatest density of holiday homes can be found along the channel between Belavici and Donji Zvecaj (in particular, in the vicinity of the waterfalls).

It is a general rule that, in the development of unorganised and unplanned

tourism, holiday homes irrevocably occupy the most value space. This is true of the Mreznica valley, as well. It is estimated that some 350 holiday-homes have been erected; this figure, however, constantly changes (usually for purposes of tax evasion, holiday homes are transformed into residential homes).

The economic effects of weekend, rural tourism are weak, and some holiday

homes, the construction of which does not comply with zoning criteria, have become dotted sources of pollution.

The holiday-home issue, together with other negative traits in tourism, became

obvious at an early stage, and it has persisted up to date. Foremost, this issue relates to the physiognomic and functional transformation of space, and to socio-cultural consequences, and environmental and spatial effects. Hence, the 1985 Spatial Plan for Croatia provided for the protection of the River Mreznica as a nature park. This plan was included in the subsequent Urban Development Strategy of Croatia (1997), and in the Urban Development Program of Croatia (1998).

Although the planned protection of the region has the support of businesses

and the tourism trade, there is little chance that the protection plan will be implemented any time soon because of the serious issues in this region that need to be previously resolved (landmines, military administration, municipal infrastructure).

Number of settlements Population River shore

1991. 2001. 1991. 2001. Left shore 19 19 3798 2708

Right shore 14 14 10920 9344 Total 33 33 14718 12052

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CONCLUSION

In the era of traditional traffic links, the River Mreznica played a divisional role; it failed to attract a large population and it was rather poorly exploited in commercial purposes. This spatial role was shaped by the river’s canyon-like channel, the scarcity of fertile alluvial deposits, and the irregular regime of the river’s flow.

The watercourse’s characteristic morphology, which was previously a limitation

to conventional development, began to attract tourists in the early 1970s. In the period that followed, the tourism industry continued to develop as an increasingly important spatial reality, until finally becoming a strategic branch of regional (county) development.

In this respect, natural attractions show great potential, together with small

number of anthropogenic attractions. The basic tourist attractions are the river’s water, which is clean and warm enough for the development of riverside tourism, and its travertine barriers, as major visitations sites.

Tourism in this region develops by tourists discovering and using the

attractions, which means that development is unorganised, with the state playing a role that is merely declarative.

Because of uncoordinated development and the devastation of tourism

potential, protection is to be provided to the valley of the River Mreznica by making it a nature park.

By proclaiming the Mreznica valley a nature park, it will be possible to

provide for better protection of the area’s assets and more efficient river management. It is well known that the development of tourism in such destinations has an impact on economic sustainability and on the weak demographic situation.

REFERENCES

Bahun, S. (1970): Geoloska osnova krske zavale Ogulin-Plaski, Krs Jugoslavije, Zagreb. Fras (1835): Topographie der Karlstadter-Militargrenze, Agram. Herak, M. (1957): Geoloska osnova nekih hidrogeoloških pojava u dinarskom krsu, II kongres geologa

Jugoslavije, Sarajevo. Institut za turizam (1996 a): Strateski marketinski plan turizma Karlovacke zupanije, Zagreb Institut za turizam (2002): Sustav obiljezavanja i interpretacije turistiskih atrakcija Karlovacke zupanije

(radna verzija), Zagreb Kusen, E.(2002): Turisticka atrakcijska osnova, Znanstvena edicija instituta za turizam, Zagreb Lopasic, R. (1895.): Oko Kupe i Korane. Naklada Matice Hrvatske, Zagreb. Maradin, M. (2007): Mreznica – vaznost rijeke u krcu, //Geografija.hr Nejasmic, I. (2000.): Demografske znacajke i procesi u naseljima uz rijeku Mreznicu. Geografski Horizont,

br. 1-2/2000, Zagreb. Pelivan, A. (2007): Slapovi rijeke Mreznice, www.avia.croadria.com/02 Pepeonik, Z. (2000.): Mreznica – biser hrvatskog krsa. Hrvatsko geografsko drustvo, Zagreb Pilar (1876): Die Regulirung des Saveflusses, Agram. Poljak, J. (1922): Periodicno jezero Blata, Glasnik Hrvatskog prirodoslovnog drustva, Zagreb Poljak, J. (1925): Geomorfologija i hidrografija okolisa Ogulina i Ogulinskog Zagorja, Spom. D. Gorjanovic-

Krambergeru, Zagreb Rijeke Hrvatskog krsa, http://www.crorivers.com/index.html Senoa, M. (1895): Rijeka Kupa i njezino porjecje, Dionicke tiskare, Zagreb. www.mzopu.hr/doc/Izvjesce 2006/07

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki

Department of Tourism

Greece

Management

UDC 338.48:78(497.5-3 Istra)

Preliminary communication Received: 12.02.2007

POSSIBILITIES OF MUSIC HERITAGE

TOURIST VALORIZATION – AN EXAMPLE OF ISTRIA

Aleksandra Krajnovic Ivana Paula Gortan-Carlin

University in Pula, Croatia1

Abstract: The classic concept of a tourist offer belongs to the past. Today, tourists are motivated by visiting interesting destinations, rich with offer founded on autochthonous elements valorization. Culture, being a basic offer element in cultural tourism, should become a part of a so called creative tourism as well, in which a tourist – visitor is not only a tourist attractions passive observer, but an active participant. Croatian tourist product indicates surfeiting and a certain «tiredness», so the classic forms of tourist offer, already behind us, have lost their key role of attracting tourist masses. On the other hand, Croatia overflows with valuable tourist resources, many of which bear a stamp of autochthtony. Such resources, allowing for some minor efforts, can be presented to tourists through adequate tourist valorization. However, the succesfull inclusion of those valuable resources in tourist offer is to be preceded by raising public awareness (and self-confidence) of our country culture wealth. Music heritage is just one of the elements in Croatian tourism resource richness. One of the Croatian music heritage basic characteristics is the fact that each Croatian region is distinguished by a specific, characteristic music heritage. That is applicable to Istria as well, while the Istrian music scale, unique in the world, suggested for inclusion in UNESCO List of World Heritage, deserves a «special treatment». In this work, the authors point to the necessity of tourist offer enrichment by the inclusion of cultural resources concerned with music, particularly in the case of Istrian region. That should be achieved through primarily organized offer of specific cultural itineraries, «Istrian music Paths», as a kind of «mix» of this cultural tourism form and other selective tourism types. Moreover, in work is stated that tourism, through self-resources valorization, will retroactively have an impact on this valuable cultural resource preserving. Key words: Folklore, music, music heritage, autochthtonous music heritage, Istrian music scale, tourist valorization of music heritage.

1 Aleksandra Krajnovic, Ph.D., Higher assistant, «Juraj Dobrila» University in Pula, Economy and tourism department, (subcontractor); City of Novigrad Tourist Board Tourist Office manager (Istrian Novigrad), Croatia; Ivana Paula Gortan – Carlin, M.Sc., «Rivarela» elementary school (Music school Sector), Novigrad, professor; Manager of a particular institiution concerned with music called «Katedra Cakavskog sabora za glazbu, Novigrad», Croatia

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INTRODUCTION This work is based on the concept that tourism core- product is tourist experience (Prentice, Witt and Hamer 1989). Tourist experience is derived from mythes, stories, imagination, history,especially the one that reflects the locality where tourists are situated, but also from the universal culture elements. Therefore, while traveling tourists search for lost authenticity through authentic experiences gaining (Mac Cannell 1989). Being the consequence of experience economy concept (Pine i Gilmore), urban and rural aeras are becoming important places where experiences for mass - consumption are being created and produced. Culture is arising as a basic experience economy raw material, and a culture tourism its particularly important part. Practice is the evidence of growing need for specific destinations or activities from packages offering total experience of a region or a particular culture. The necessity for activities including art and cultural heritage has been significantly increased (Richards 2002).

CULTURE PLACE AND ROLE IN CONTEMPORARY TOURISM AND CULTURAL TOURISM

In the postmodern world dominated by pictures, culture is significantly

climbing on the scale of importance. That is applicable to tourism, too. Culture place and role cannot be any more viewed in terms of a narrow culture tourism concept. Cultural tissue of a receptive environment is spreading through all the tourist system pores, and consequently should be the basic tourist offer element. «Real» culture tourism means that culture is the basic traveling motivation. In other words, «real» culture tourism is constituted of tourists traveling for cultural motives - ones defined as cultural by tourists themselves (Richards 1998). However, culture in tourism can be considered relevant for tourists which mark it as a secondary, or tertiary motivation for visit, too. Secondary motivation is defined as a situation where tourist travels because of some other primary interest, but his or her touring includes cultural life, while tertiary motivation stands for a situation where tourist in principle has no intention of getting to know destination culture, but during his or her stay gets into a contact with local people, and maybe unwillingly gets acquainted with their way of life, that is, culture (Jelincic i Mesaric 2001). Cultural tourism promoting primarily derives from the fact that it contributes to the better tourism quality. Researches demonstrate that cultural tourism contributes towards tourist consumption increase (Jelincic 2005) which is again tourist offer enrichment and visitors structure changes consequence. Besides, cultural tourism development contributes to a tourist destination positive image creation. It is the image built on the local cultural diversity concept. Present-day cultural tourist searches for destination qualities which make it different from another locality. Culture takes over the role of elementary offer and thus sells the location, creating the tourist destination image on local / regional / national identity

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(Jenkins and Jones 2002). Cultural sector is essentially connected with the image projected by places, and positive image is in principle created by strong and open culture ( Jelincic 2005). As opposed to local people, tourists take a different view of cultural resources. While local people consider primarily particular tourist product aesthetic value, tourists, apart from aesthetic value, search for the additional one. That can be, for example a particular vessel, jewellery, a doll or some other object which illustrates the culture, and to which tourist attaches some symbolic or spiritual meaning, at the same time being a kind of a reminder to a different culture visit (Palmer 1999). Over the several past decads, except the appearing of the phenomenon of tourist cultural demand diversification, new tourism forms within the wider area of cultural tourism arised. Hughes (2000) emphasizes that within cultural tourism we can make a distinction between art tourism, heritage and historical tourism. Such a development indicates cultural concept broadening and interest specialization within that area. People that used to travel in search for a destination culture, today can look for a particular type of an art work, music or architecture. Regarding the fact that different tourist types have little in common, except predominantly belonging to the middle –class, talking about «tourist interested in culture» would be almost impossible in the future (Richards 2005). Areas trying to use cultural resources for tourism development meet the additional chalenge: the fact that most of the areas have specific culture is not sufficient any more. Contrary to this, those areas have to develop differentiated tourist product on the basis of their specific culture.

MUSIC HERITAGE – CLUTURAL HERITAGE PART AND TOURIST ATTRACTION

Inheritance attractions are the base of heritage tourism development.

According to Garrod and Fyal (2000) inheritance attraction should be «cheap, available, attractive to a visitor, physically and intellectually accessible», balancing between visitors needs and protection imperative, and at the same time being able to retain place authenticity and integrity and being worth the spent money».

Increasing relevance has been attached to the inheritance attractions component known as oral and impalpable properties which include music, languages, oral tradition elements and so called performing arts.

Kusen (2002) classifies folklore as a tourist attractions subgroup and he calls it Life and work culture. The group Folklore includes the following elements: folk music, folk dances, customs, legends, urban legends and «UFO legends», while the tourists motives/activities deriving form this gruop are, according to Kusen, professional, scientific and idle education, observing, listening, photographing and simmilar.

One of the most significant impalpable properties components, being an universal human inheritance part, is music tradition. In this connection it is stated that

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purpose of music and its tools – instruments – shouldn't be restricted only to sound production. Traditional music and musical instruments convey the deepest cultural, spiritual and aesthetic civilization values and pass them over to new generations.

Folk song melodies can be the strongest component of some area identity (Kusen 2002). From ancient times music has been passed over through oral tradition, what, as well as its interpretation didn't require formal education. Music was availible to the lowest classes and was created during their most important life moments. Consequently, it is one of the most «democratic» art, interwoven in every nation.

CULTURAL HERITAGE VALORIZATION THROUGH CREATIVE TOURISM

In recent years, cultural tourism has been developing more specifically,

gaining a creative component. Rojek (1993) points out the post-tourist appearance who can play with tourist consumption signs, and who considers tourist experience a game not to be taken too seriously.

Moreover, tourist search for authenticity represents his or her looking for meaning – sense, or something that is lacking in his or her everyday life. Tourists seek different reality and different context which also includes cultural capital they constructed at home (Richards 2001).

Tourism offer holders are faced with a question: Every culture is unique, so why would the tourist want to see yours in praticular? (Richards 2005). One of the possible solutions is identified by Richards and Raymond (2000) as «creative tourism», defined as tourism offering a possible visitor's creativity development thruogh active participation in schooling or in gaining an experience characteristic for a resting destination. Consequently, creative tourism is based on transmitting local skills and experience to tourists in an adequate setting.

That form of tourism is one of the best ways for tourists to find authenticity in destination and approach it more closely. It is an important factor of tourism development particularly in peripheral areas (for example in Istria), while the different creative tourism offer forms can be incorporated in total tourist offer. Actually, the creative tourism represents a step forward if compared to culture tourism.

Creative tourism is different from cultural, not only in the way of tourist activity taking place, but in values created for tourist consumers as well. Top-quality creative tourism teaches tourists permanent skills. Creative tourism result is more than a material souvenir. Experience gained in creative toruism changes tourist in many ways. It gives him or her a mental souvenir possibly useful in everyday life, but also an experience changing his or her thinking about surrounding world and his or her place in it. In oder words, it gives him or her an experience which contributes to his or her own identity construction.

So, the creative tourism main charcteristic is transformation from material to unmaterial tourism aspect, what involves sector focus transformation from completly economic view to one allowing for cultural, creative and aesthetic values (Garcia 2001).

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Creative tourism can cover a wide range of activities as for example music, drama, visual arts, gastronomy, sport, languages and spiritual activities. For the reason of its rarity, value is more easily created; it can be developed faster than other tourism forms. It is more sustainable because it can not be degraded, consequently, constantly renewable, markedly movable, cheap and not requiring built infrastructure as cultural tourism (Richards 2005).

CULTURAL TOURISM – CONDITIONS IN CROATIA AND ISTRIA

Croatia is situated at the intersection of different cultures, religions, ways of life, what is reflected in its clutural richness and variety which represents a significant developmental potential in tourism.

Croatian conditions concerning cultural tourism development are not satisfactory. For years its development has been based on massive tourism, except from few cities like Dubrovnik where cultural tourism has been highly developed. Cultural tourism has been generally neglected, particularly in Croatian inland and in the hinterland of the coastal «much-vaunted» destinations. Cultural and tourist policy should be more connected. There has been barely no tourist valorization of culture - Croatian customs, rituals and way of living haven't been identified, packed up and transformed into a product so far (Cvjeticanin and Katunaric 1998). The truth is that Croatia, instead of using its own cultural specifics as tourist resouce, is importing many cultural programmes.

Cultural tourism problems in Croatia are concerned with the lack of coordination between clutural and tourism policy, too.

Jelincic (2005) finds a relation between cultural and tourism policy as well as relation to other sector policies, providing that cultural policy is acceptable to local inhabitants,too. In this matter it has been pointed out that culture reflects national identity or at least helps in national identity construction. Krbec (2000) insists on the necessity of attaching more significance to spatial and ecological, cultural and traffic policy integration with global tourist policy. Krbec also states that tourism development strategies on all the levels (local and national in particular), acoording to world experts estimate, should define and support cultural destination identity maintainance, as an important overall tourist conutry development factor.

As a result of international obligations undertaking, the present Croatian Tourism Development Strategy (Republic of Croatia Ministry of Tourism being acquainted with it in 1993) is faced with obligations of priority activities integration in forming a so called direct tourism policy, what in fact a Valid Development Strategy stands for. Those obligations include, among others, designing a recognizable (autochthonous) tourist product (which form basically follows cultural heritage sustainability) as a tourist development process integral part.

Strategic guidelines determination of Croatian tourist development sustainability

additionally presuposes standardization of approach in «sustainability» common grounds defining (McIntyre, 1993; Rátz i Putczkó, 2000) while acheiving ecological, social and

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cultural specificities sustainability. The latter, viewed in tourism context, implies support to all the culture differences forms of individual destinations. That differences serve the purpose of «resisting» the so called tourist culture phenomenon or visitors prevalent culture. Tourist meeting, as a cultural values transmission phenomenon should be used for cultural differences decrease and intensification of (tourist) authenticity experience and destination attraction (Krbec, 2000).

That means, orientation towards sustainable tourism development which, among others implicitly includes clutural and natural inheritance protection, as well as cultural tourism development.

When comes to a cultural tourism development in regional particularities context, Istrian region can serve as a prime example.Today, Istria has the most developed cultural and tourist programmes in Croatia. The biggest problem is that most of the clutural programmes are primarily organized for local inhabitants and home tourists. Programmes, mainly covered by appropriations, are not primarily created with the intention of cultural tourism development.

The research conducted by D. A. Jelincic in 2002 in Istria indicated that clutural and tourist planning has been done unsystematically, without cooperation between cultural and tourist sector. Programmes are carried out without market research, and even if it exists, it is mainly without expertise (Jelincic 2005).

CASE STUDY: ISTRIAN MUSIC HERITAGE AND ITS TOURIST VALORIZATION

Istrian music heritage can be divided into the following types: one deriving from

classical music and the other coming from folk music of Croatian and Italian origin.

In classical music there are world-renowed persons that marked the part of Istria by living or being born there, as well as persons that in a particular time in their lives by their musical activity or work «indebted» the Istrian area. Behind this description are hiding music publisher and composer Andrea Antica (Motovun, Istria, cca 1470/80 – Venezia, after 1539), composer and organist Francesco Usper Sponga (Spongia or Sponza) (Porec, Istria, the second half of the 16th century – Venezia, 1641), ballerina Carlotta Grisi (Vizinada, Istria, 1819 – Saint-Jean, Geneva,1899), opera composer Antonio Smareglio (Pula, 1854 – Grado, 1929), composer Luigi Dallapiccola (Pazin, Istria, 3.2. 1904 – Florence, 19.2 1975) and an opera composer Franz Lehar, who was a naval orchestra conductor in Pula between 1894 and 1896, and during that time he composed his first opera «Kukuska» (more precisely in 1896).

Besides, an enormous richness has been found in Istrian folk music. From

original, Istrian scale which is found in Croatian Littoral folk music too, to instruments, songs and dance. According to Renato Pernic (1997), Istrian folk music can be divided into five music folklore types: specific Istrian singing named «pjevanje na tanko i debelo», singing simmilar to keening named «bugarenje», church ceremonial singing, folk music form island of Susak and Italian ethnic community folk music.

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What is the so called Istrian folk scale specific quality? Istrian scale, where half and the whole grade are exchanging, is in fact called «Istarska heksatonika», meaning six tones sequence. Istrian scale was at first registered by a composer and folk melodies writer Ivan Matetic-Ronjgov. During writing down the folk melodies and using folk music characteristics he turned to independent tone fixing, independent of scale, system and inflexible regulated music signs. «Every tone, every measure, stands for itself and corresponds just to its authentic sonud». This approach results form songs colour because while noting down the original untempered voice in note system the song colour shouldn't be changed so as to present a song as literal as possible, which, because of turning from untemperated into a temperated system, is already changed.

The existing forms of musical heritage inclusion in Istrian tourist offer are as follows: folklore evenings (where except Istrian folklore heritage other regions songs and dances are being performed), evenings of Istrian folk music songs and dances, and a more modern approach to folklore elements with Istrian ethno-music, the most explicit in Tamara Obrovac songs and artistic interpretations. Organization of the mentioned events depends on local clutural institutions, tourist boards and associations that organize cultural evenings, or on the affinity of a person who works and makes decisions in such institutions and associations. That results in an extensive but content and time uncoordinated cultural and entertaining offer of different programmes which are promoted only by local flyers, and just recently in a monthly programme form for the whole region, that is, promotive publication «Sonda – an informer for a deep entertainment research».

Allowing for the fact that every local community - cultural programme ogranizer works individually, programmes are made without plan and coordination. Consequently, you can find in one day more music programmes of quality in different Istrian places, followed by few calm days, in other words days with low quality programme offer. Obviously, there is a necessity for an adequate way of offering tourists Istrian music heritage programme and cultural programme in general, being preceded by planning and systematic coordination between all the cultural programmes organizators and promotors.

If observing «Sonda» during the three summer months in 2005 and 2006, one can notice that the Istrian music heritage programmes are under-represented (Table 1.) in relation to the total number of happenings in the Istrian area.2

Culutural programmes are lacking intra- regional promotion. They are promoted

by just one program- brochure distributed in all the Istrian places, with the print run of 22.000 copies, that is 20.000 in 2006. Besides, the upper illustration indicates that Pula, Rovinj and Umag (coastal developed tourist destinations) during the three summer months in the course of two years had neither one research genre programme. Contrary to that, it was once held in Barban, Dajla, Draguc, Kastelir, Pazin, Zminj, twice in Porec and Labin and three times in Novigrad in 2005. In 2006 several-days events »Nas kanat je lip» and «Zlatna sopela» were mainly represented in Porec, followed by Novigrad

2 Note „Sonda» informer covers programmes from Rijeka and Kastav as well, but they weren't observed in this work. In the mentioned period seven programmes of the Istrian and Croatian Littoral music heritage took place.

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with three programmes, Fazana with two and Dajla, Labin and Zminj with just one. It is supposed that some programmes, not mentioned here, were held in other places (hotels or as a part of some organized evenings), but those data could be obtained exclusively by fieldwork, what reults in more than obvious lack of coordination and information flow.

Table 1. An excerpt of programme from Istrian music heritage during tourist season

2005 and 2006.

Date Day The programme title Place

3/6/05 Friday Concert of folklore association Pazin Pazin 3/6/05 Friday 33th meeting of singing choruses “Nas kanat je lip»” Porec 4/6/05 Saturday 33th meeting of singing choruses “Nas kanat je lip” Porec 19/6/05 Sunday 16th international encounter of contrabass players Draguc 25/6/05 Saturday 3rd meeting of singing choruses called “klapa” and

vocal groups Dajla

2/7/05 Saturday 39th review of folk music and dance from area around Pula

Barban

10/7/05 Sunday Folk music and dance review Zminj 20/7/05 Wednesday Evening of folk and traditional music Novigrad 21/7/05 Thursday “RKUD Rudar” Rasa, home folklore Labin 22/7/05 Friday “Klapa Kastav”, a particular choruses singing called

“klapsko” singing Labin

24/7/05 Sunday Mediterranean folk music concert Novigrad 5/8/05 Friday “Zasvirajmo i zakantajmo po Istrijanski”- concert of

Istrian music Kastelir

17/8/05 Wednesday “KUD Uljanik” – folklore performance Novigrad 2/6/06 Friday 34th meeting of singing choruses “Nas kanat je lip” Porec 3/6/06 Saturday 34th meeting of singing choruses “Nas kanat je lip” Porec 17/6/06 Saturday “Fazanski tanac” – a review of students folklore from

the Istrian County elementary schools Fazana

24/6/06 Saturday 4th meeting of singing choruses called “klapa” and vocal groups

Dajla

29/6/06 Thursday “KUD Svetvincenat»- folklore performance Fazana 3/7/06 Monday “Zlatna sopela”– 6th Mediterranean folklore meetings Porec 4/7/06 Tuesday “Zlatna sopela”– 6th Mediterranean folklore meetings Porec 5/7/06 Wednesday “Zlatna sopela”– 6th Mediterranean folklore meetings Porec 5/7/06 Wednesday Folklore performance – Istrian and Croatian folk

dances Novigrad

6/7/06 Thursday “Zlatna sopela”– 6th Mediterranean folklore meetings Porec 7/7/06 Friday “Zlatna sopela”– 6th Mediterranean folklore meetings Porec 8/7/06 Saturday “Zlatna sopela”– 6th Mediterranean folklore meetings Porec 4/7/06 Tuesday “Zlatna sopela”– 6th Mediterranean folklore meetings Porec 14/7/06 Friday “Armonika zad Kastela” – the accordionist meeting Zminj 29/7/06 Saturday “Labinske konti”– traditional cultural event of

customs around town of Labin Labin

2/8/06 Wednesday “KUD Dajla” – Istrian folk dances Novigrad 16/8/06 Wednesday “KUD Uljanik” – folklore performance Novigrad

Source: Sonda, informer for deep entertainment research, Sonda, Porec, 2005, num 13 (June, 2005), num 14 (July, 2005), num 15 (August, 2005); Sonda informer for deep entertainment research, Sonda Porec, 2006, num 22 (June, 2006), num 23 (July, 2006), num 24 (August, 2006); http://www.istra.hr./hr/hr/kalendar_dogadjanja

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In «Povecalo», an appendix of »Sonda» which describes some programmes, just a few Istrian clutural heritage events are presented more closely, which are as follows: «Nas kanat je lip» (2005), Town of Hum Celebration (2005), «Dvigrad festival» - Festival of an early music (2005,2006), (from description is not clear if it is an Istrian early music festival or early music festival in general), Run on Prstenac and «Zlatna sopela» (2006.)

In terms of content and time and space performance schedule, tourist offer based on traditional music heritage in Istria is insufficient and uncoordinated. Moreover, its better promotion through right time and high quality tourist informing about cultural programmes is impossible because in the creation of the above mentioned offer there is barely no connection with hotel companies, tourist agencies and other tourist subjects. Obviously, this specific tourist product should be approached differently. Marketing-value of the specific cultural tourism product depends on design, combination of elements that it consists of and on selling this product specific experience content.

In this respect, the organization of such cultural tourist programmes in Istria started with renovating houses of famous Istrian people, and turning them into museums or memorial rooms. Such an attempt can be exemplified by Antonio Smareglije's renovated room in Pula or «Ivan Matetic- Ronjgov» Institution in Ronjgi. Neverthless, as after renovating and valorization follows marketing activity, we are faced with assignment of that programmes inclusion into tourist offer catalogues, as clutural offer elements. Moreover, as a part of music clutural offer, famous people compositions should be more often performed in their birth places. Thus, for example, in summer months Antonio Smareglije operas should be presented in nearneess of Pula or Vodnjan, in an open or closed space, Luigi Dallapiccola works in Pazin, Andrea Antice humorous songs called «frotola» in Motovun and «Giselle» ballet in Vizinada. In view of the fact that Istria is not so big an area, the need for composer and events advertising in all its parts is more than obvious.

Compatible with the before described creative tourism development, as a apecific tourism product of this type, there should exist an «Istrian music and dance school». That school should be held during organized Istrian folk atmosphere evenings (with Istrian cuisine, singing, music – following the example of Spain evenings with flamenco and sangria) where tourists would be educated, and then would also try to perform the special Istrian singing called «na tanko i debelo» on their own, dance a typical Istrian dance called «balun» (just the basic steps), and some, more knowledgeable tourists, could try to play special Istrian instruments like «sopela» (simmilar to flute), «mih» (an instrument belonging to a bagpipe family), tambouritza, «triestinka» or contrabass regionally called «bajs».

Moreover, the tourist offer could be enriched with «Istrian music pathes». That interesting itineraries would include the tour of important points where the distinguished Istrian musicians lived and worked, places characteristic for Istrian singing and music, followed by an additional offer of other selective tourism products (gastronomic Istrian offer, hikes and cycling paths and simmilar).

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This programmes offer, with list of attractions, should be published in all the tourist catalogues promoting Istria as a destination, followed by a calendar of «Istrian music heritage» events, which should be prepared in time and which would be distributed properly and in sufficient quantity. The latter would provide for informing tourists who are in Istrian destinations as well as ones just deciding on traveling. Those programmes should, consequently, become an element of agencies organized tourist packages. This task is to be carried out by local and county tourist board in cooperation with hotel houses marketing sectors.

The financing problem should be resolved in interaction between cultural and tourist department on all the levels. Cultural events shouldn't depend on individual will, but contrary to this, programmes should be created according to objectivity and competence principles, minding the idea of common good.

Cultural music tourism should be accompanied by high-quality souvenir offer which should be sold on the very place of the happening- programme performing, but also all over the Istria. That could be the souvenirs which would, after tourist returning home, provoke in him or her memory of an event, persons, performances and experience, such as picture postcards, posters, pens, pendants, T – shirts, ties with motives of the Istrian music heritage, folk instruments and simmilar.

PROJECT ORIENTED TOWARDS MUSIC HERITAGE PROTECTION AND TOURIST VALORIZATION – HOW TO PRESERVE AND VALORIZE MUSIC HERITAGE?

As early as 1935, while pondering upon ways to preserve music treasure, Ivan

Matetic – Ronjgov wrote an article «Kako da sacuvamo nas folklor», translated as «How to preserve our folklore», where he gave guidelines on music valorization in tourist purposes, accheiving the higher aim: to preserve folklore (music heritage) form the «threatening» oblivion:

«If only we would have at least one intellectual of a Mate Balota stamp in some of our regions. Then, writing the articles with the upper title undoubtely wouldn't be necessary. Tradition would continue to exsist centuries and centuries and our «rozenice» (special Istrian music instrument) would light-heartedly enjoy the famous Scottish bagpipes priviledge, which are shining at the most important royal ceremonies in England. (...) What should we do? Ronjgov wonders, aware of the necessity for an event arrangement where all the best and nicest from our area church and secular music would be presented, followed by every year competition of our best singers, players of «sopele» and dancers, every time in another place. The best period to realize that would be the «swimming season». Let the foreigners see, our appreciation of our antiquities. (...) On hearing the specific Istrian singing, they will, certainly, not scatter in all directions, as some of us may worry, rather the contrary, they will listen to the tones of an ancient tradition with interest. The more sophisticated man, the more interested in antiquity! (...) But, comfortingly, there are some recent attempts by society for Croatian Littoral tourism promotion regarding the issue. That association could as well help advertising our folklore maintenance. All the mentioned could be realized if ,at once, an organization for Croatian Littorate music folklore preserving is to be activated. That organization (with

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headquarters in Zagreb) would be obliged to have one or more persons in some regions, intensively tackling, this, for our musical culture, burning issue».

Consequently, the upper cited piece of a text is an evidence of the already exsisting idea about two disciplines coordination, that is, music and tourism, for the common good.

Interational level projects. The UNESCO organization is undertaking different activities aiming at cultural diversity promotion as well as promotion of multilingual societies and tolerance. They serve the purpose of diminuishing the culture standardization risk and represent a base for development of covnention which will protect this kind of heritage.

UNESCO Collection of Traditional Music of the World, is one of its most striking programmes for protection and revitalization of impalpable cultural heritage, aiming at mankind riches dissemination, such as traditional folk and classical music, sacred music, music of rural and urban origin as well as music from folk festivities and gatherings (festive or carnival music) which includes singing, playing and dance. In other words, that are recordings, many of which done in situ,with the aim of presenting live music tradition as a social act between a performer and audience, and at the same time presenting a valuable inspiration source for modern artists – musicians, musicologists and traditional music lovers. Project initiated Alain Danielou in cooperation with International Music Council in 1961, while today UNESCO continues with project cooperatating with Intenational Council for Traditional Music. So far, some 115 titles were published.

European level projects. One of the most important European projects oriented

towards cultural tourism development is creation and development of cultural itineraries as an important tourist offer segment. The project called European Cultural Itineraries was initiated in 1987 by European Council with the purpose of exploring the pathes leading to the unique European identity creation. Today, this project realization is in charge of European Institute for Cultural Routes which in 1997 got its permanent residence in Luxemburg.

When including the particular itinerary in the Project, the most important criterion, according to the rules applied by the Institute, is that the choosen theme, beside being common for a few countries, strenghtens the awareness of present-day Europe diversity. The theme must have its historical background, and should consider the common culutral heritage from the following three aspects: nation, migrations and important civilization movements.

Croatian and particularly Istrian conditions: One of the basic problems is

the nonexistence of the united archive – data base about Croatian music heritage. That problem, as Kusen points out, is present in other tourist attractions types as well, and is indicative of the necessity for cadastre and toursit attractions atlases. In the case of Istrian music heritage, this archive is discovered on the spot, by recording and then writing down songs of singers, players of «sopela» and others. The most numerous archive of the songs written so far has «HAZU», that is, Croatian Academy of Science and Art – Department for Music in Zagreb. Moreover, they are being kept in the Croatian state archive in Zagreb, in Institute for Ethnology and Folklore Study in Zagreb, in Insitution «Ivan Matetic – Ronjgov» in Ronjgi, in Radio Pula record and tape library, and probably in some smaller private collections. Obviously, there is no unique catalogue where the

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whole musical heritage would be systematically listed, defined, that is systematized. It is proposed to open an institution specialized for music, for example Istrian Music Institute – that is its counterpart for the whole Croatia and for its individual regions – where the region music heritage would be systematically recorded, written down and catalogued. That would represent a base for defining tourist offer founded on music heritage. Probably, in the upper mentioned article, Ivan Matetic –Ronjgov also alluded to such an institution.

There is another important problem, and that is a need for education. If a project is to be realized, people working with tourist offer as well as local people should be educated on music heritage. The problems don't end here. The fact is that there is an obvious creativity and enthusisam deficiency.

Moreover, this is a complex multidisciplined activity which realization requires more institutions working in close coordination. That institutions are regional and local tourist boards, local cultural institutions which follow and valorize Istrian cultural heritage, Institute for Tourism, Institute for Ethnology and Folklore Study, «HAZU» (Croatian Academy of Sciance and Art) and a particular institution concerned with music «Katedra Cakavskog sabora za glazbu Novigrad”. Besides, the connection with foreign organizations and institutions shouldn't be regarded less important. Actually, it is believed that the international connecting should be realized, when the project is already on the spot, and not after its introductory realization. In this respect it is possible to define an Istrian music itinerary as one of the traditional music itineraries of European regions.

This itinerary is particularly interesting to uneuropean nations: Chinese people, Russians, Americans, people from Autralia and others interested in folklore regions heritage.

And finally, the valorization of Istrian scale as unmaterial cultural treasure of UNESCO world heritage would be of paramount importance. In fact, that project was presented to the Ministry of Culture in 2002., but it wasn't nominated so the request should be reviewed.

The very inclusion of Istrian scale and Istrian song in World Cultural Heritage List, besides its cultural, traditional and artistic unquestionable value, would provide for its required institutional support which would, at the same time, become a base of its total valorization. That appreciation would ensure basic assumptions in rendering an atmosphere for that project revival.

The stated proposals should be The Office for Cultural Tourism activities

constituent part. The mentioned office, founded in 2004 as a part of Croatian Tourist Board, could play a role of a coordinator of music heritage regional valorization activities on the national level. Recently, the Istrian cultural agency has been founded. That agency aims at Istrian culture promotion, advisory services, sponsorship for cultural programmes, creating cultural itineraries which would be promoted in tourism and simmilar. One of this agency assignments should involve clutural valorization which certainly includes the music heritage valorization, too. Such itineraries would include different tourism forms as well and, combined with different activities – sport, science, ecology, whould offer the experience of life in Istra.

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The further steps would be of operative character, and the phases to be involved are as follows:

1. organizing the round-table talks about the exhibited project of music valorization with all the relevant region subjects,

2. appointment of a competent commitee of five or six people, with the aim of operative project designing,

3. defining the project operationalization, with the proposal of dynamics and holograms, as well as expenses and assignments distribution,

4. including simmilar foreigns experiences, 5. marketing activities: defining project visual identity, organization and

coordinaiton of clutural and tourist programmes with music heritage elements, defining marketing programme, including tourist subjects and tourist destinations in marketing programmes,

6. realization and control of project application, 7. integration into international projects.

The following are suggested as project holders: Tourist Board of Istrian County,

Management Board for Tourism and Trade and Management Board for Istrian County Culture, Popular open educational institutions, science and professional institutions and others.

CONCLUSION

Croatia is faced with a demanding assignment of its own image redefining and

using culture as a main resource in image creation. Resluting from cultural differences and specific qualities between individual Croatian regions, culture tourism in Croatia should be created through regional development as a total Croatian tourist offer development, a fan of different clutures in one conutry. The idea and the project of Istrian as well as other Croatian regions traditional music heritage integration in tourist offer brings many advantages such as: national (regional) cultural heritage promotion, creating our own identity awareness, richer tourist offer, employing possibilities, creating a destination image, a change in visitors strucutre and others. Besides, cultural heritage gives a tourist destination a stamp of authenticity and diversity.

This tourist offer forms benefit, as well as cultural tourism advantages in

general, would be applied to the whole society. Furthermore, the project should involve tourism and culture sectors, state, local people, tourist, cultural, science and educational institutions. If those activities are to be realized there are some problems to be solved such as: funding, the lack of coordination between culture sector and tourism sector, incoherence between economy and tourist policy holder on one and science institutions in the field of culture and tourism on the other side, inadequate marketing of cultural programmes and others.

Traditional cultural heritage is an unomittable tourist product element of all the Croatian regions. In connection to this the rich Istrian music heritage could be better exploited in tourist purposes, for one-day or several-days organized tourist stay, organized excursions or programmes, and all that aiming at clutural tourism strenghtening and the more and more searched creative tourism. Retroactively, cultural

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tourism development, particularly the active one, would have an impact on valuable Istrian music heritage preservation and on the tourist and local people education.

Some world destinations are already incorporating their «creative capital», primarily their culture – into their development policy. At the extremely competitive tourist market, the possibility of «creative tourist industry» development through inovative products development attracting visitors will be of paramount importance. Creative tourism can help destinations in creating, the so important at the postmodern tourist market, «their own story», what is ceartinly applicable to Croatia.

The presented project, as well as other simmilar cultural and creative tourism development projects in Croatia, is offering a variety of possibilities, among which the functional interaction between culture in tourism and tourism culture stands out in particular.

REFERENCES

Bronzan L. (2004) Europski tematski itinerari, Casopis Turizam, 52 (4), 399-405. Dann G. M. S. (1981) Tourist Motivation, An Appraisal. Annals of Tourism Research, 8 (2), 951-969. Dutton S. i Busby G. (2002) Antiques-based tourism: our common heritage?, Acta turistica, 14 (2), 97-119. Gortan-Carlin I. P. (2005) Fragmenti iz glazbenog zivota Pule. U: Prilog istrazivanju mornaricke glazbe u

Puli za vrijeme austrougarske vladavine, Mornaricka knjiznica i austrijska/austrougarska mornarica u Puli, zbornik radova, Pula: Sveucilisna knjiznica u Puli, 111-118.

Jelincic D. A. (2005) Kultura kao pokretacka snaga redefiniranja imidza destinacije. Acta Turistica, 17 (1), 56-78. Kovacevic K. (1998) Glazbeniki. Leksikoni Cankarjeve Zalozbe, Ljubljana: Cankarjeva zalozba Krbec D. (2000) Agenda 21 za turizam, Prilog odredjenju pojmovnog okvira za Razvojnu strategiju

hrvatskog turizma, U: Cifric, I., Znanost i drustvene promjene, Zagreb: Hrvatsko malo sociolosko drustvo i Zavod za sociologiju Filozofskog fakulteta u Zagrebu, 285-303.

Kusen E. (2002) Turisticka atrakcijska osnova. Zagreb: Institut za turizam Pernic R. (1997). Mestri, Svirci i Kantaduri, Buzet: Reprezent Prentice R. C., Witt S. F. i Hamer C. (1998) Tourism as Experience, The Case of Heritage Parks. Annals of

Tourism Research, 25 (1), 1-24. Richards G. (2005) Creativity: A new strategic resource for tourism? U: Tourism, creativity and development, ATLAS

Reflections 2005, DA Arnhem: ATLAS (Association for Tourism and Leisure Education), 11-22. Richards G. (2002) Od kulturnog do kreativnog turizma: Europske perspektive. Casopis Turizam, 50 (3),

228-236. Sternber E. (1997) The Iconography of the Tourism Experience. Annals of Tourism Research, 24 (4), 951-969. A.A., Enciclopedia Garzanti della musica (1974), Milano: Aldo Garzati Ed. A.A., L’Enciclopedia della musica (1995), Novara: Istituto De Agostini Istra, Glasilo istrana u Jugoslaviji, 8 (1935), (50, 51 i 52), Zagreb Sonda, Informator za dubinsko istrazivanje zabave (2005), Porec: Sonda, Porec, 13 (lipanj), 14 (srpanj), 15 (kolovoz.). Sonda, Informator za dubinsko istrazivanje zabave (2006), Porec: Sonda, Porec, 22 (lipanj), 23 (srpanj), 24 (kolovoz.). www.portal.unesco.org/culture/en/ev.phphttp://www.istra.hr/hr/kalendar_dogadjanja, 5.1.2007.

Others sources: Internal documentation of the following institutions: Popular open educational institution «Novigrad – Cittanova», 1995- 1999 (co-author Gortan – Carlin held the

office as this institution manager) The City of Novigrad, 2001 – 2003 (co-author Gortan – Carlin held the office as City public services manager) Popular open educational institution Ante Babic» Umag, 2003 – 2006 (co-author Krajnovic held the office as

this institution manager) The City of Novigrad Torist Board, 2006 – (coauthor Krajnovic holds the office as Tourist Office of Tourist

Board manager) A particular institution concerned with music called «Katedra Cakavskog sabora za glazbu Novigrad

istarski» (co-author Gortan – Carlin holds the office as department manager)

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki

Department of Tourism

Greece

Management

UDC 338.48:338.47] (438) Preliminary communication

Received: 01.03.2007

PORTS IN DEVELOPMENT OF MARITIME TOURISM – PROBLEMS AND CHALLENGES. THE CASE OF THE POMERANIAN REGION

Joanna Miotke-Dzięgiel

University of Gdańsk, Poland1

Abstract: The paper investigates the question - provocative in some way – can Polish ports in the Pomeranian Region, especially Gdynia and Gdańsk, become centers of maritime tourism in the region? This question is worth to be asked, despite distinct disparency - arousing pessimism - between expectations and the real state. The significance of that question is grounded in ports’ role in development of passengers transportation – particularly tourist one, and the impact of ports services on regions’ economy in Europe. These problems are exposed at the beginning of the paper. Further parts of the paper – taking advantage of descriptive and statistical comparative analysis of the ports operation - successively present: (1) general condition of the Pomeranian ports regarding their tourist function. It particularly has been related to the location and transport accessibility requirements as well as to ports suprastructure and infrastructure requirements. The presented conditions are compared with standards effective worldwide; (2) passenger traffic in the Pomeranian ports – especially tourist traffic. General assessment of development conditions, present situation and position of the Pomeranian ports, which have been made on the grounds of the above analysis, lead to the conclusion that these ports, including the main ports of Gdańsk and Gdynia, are far behind a status of important maritime tourism centers. The last part of the paper – in connection to the former assessment – defines challenges facing the above ports and presents actions to be taken for strengthening their position. In search of ways enabling achievement of an advisable goal, the position of government administration and local authorities have been stressed, as well as the effects of Polish membership in the EU. Key words: sea ports, tourist traffic, maritime tourism centers.

1. INTRODUCTION

A statement that modern sea port, as an object of a compound technical and organization structure, fulfills different tasks, especially economic ones is a truism A sea port is also a complicated transport junction, converging different modes of transport. This is also a place of changing transport means in passengers conveyance. When taking into consideration basic ports’ functions, one can specify beside main commercial ports also ports of special purposes (such as passenger ports or yacht 1Joanna Miotke-Dzięgiel, Ph.D., University of Gdańsk, Institute of Maritime Transport and Seaborne Trade, Poland.

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harbours) but the second port’s type rarely exists as a separate entity. So it’s hard to manage the ports only from the point of view of the tourist needs.

Having in mind the above, it can be stated that: • first of all - sea ports services, irrespective of port’s character – include ship’s

services (pilotage, towing, mooring, bunkering, waste disposal, etc.), and • secondly, sea ports, either universal and the specialist ones, offer passenger

services, partly or totally (as an embarkation or disembarkation place, as well as a customs clearance and passport checking point in international traffic) – thus fulfilling an important tourist function. In other words, there are the ports (beside ships and their operators) which create material and organizational conditions for development of maritime tourist voyages.

2. PORTS IN DEVELOPMENT OF MARITIME TOURISM – INFLUENCE OF PORT SERVICES ON REGIONAL ECONOMY

A tourist function of ports is obviously more significant in base ports for

pleasure boats (including ports serving ferry traffic) than in the indirect ports. But the impact of the second ports on economic and social development in region still matters a lot. It applies particularly to the ports where passenger ships stay more than one day – and the so called “overnight” demand is observed.

The small ports worldwide also attach weight to passenger services: cruise

ships, ferries and yachts2. The smaller harbours’ benefit their clients, either tourist and the operators, likewise in case of the bigger ports. The ports themselves, deriving economic profits from serving the ships, develop not only the infrastructure of their own, but they additionally stimulate development of tourist infrastructure along the coast. Finally, the local population profits in a various way by passengers and crew of the ships calling at the port. Generally speaking, both ports and port’s cities profit by the presence of passenger and ferry lines. The ports make profit out of port dues. In the case of port’s cities, the growth of local demand and new jobs influence positively the region’s economy.

The above situations can happen only when the ports serving passengers meet few essential requirements. It’s usually right indicate on: convenient, attractive for tourists localization, transport accessibility as well as technical and organizational development. These requirements have been undoubtedly met by maritime tourist centers located in such European port’s towns as Copenhagen, London, Stockholm or Helsinki, not mentioning many ports in the USA.

In this context, having in mind however the proportion, a principal question arises: do the positive effects of ports and tourist industry are appreciated in such “tourist and maritime’ region as the Pomeranian one?

2 They have also some tourist purpose in view during the voyage: circuitous maritime trips, passenger ferry and coastal trips, as well as the tourist maritime yachting which become more and more popular.

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3. THE ADVISIBLE CHARACTERISTICS OF THE POMERANIAN

PORTS IN THE CONTEXT OF THEIR TOURIST FUNCTION ; PROBLEMS OF LOCALIZATION AND TRANSPORT ACCESSIBILITY IN PORTS

Four big sea ports, over 20 the so called small harbours and almost 50 single-

function maritime havens are located along Polish coast. Despite the fact that great majority of these harbours is placed in the Pomeranian Region, only two ports – Gdańsk and Gdynia – have a great significance for national economy (fig. 1).

Figure 1. The Pomeranian Region

And that’s not all, the macroeconomic reasons recommend further concentration of not only cargo turnover but also passenger traffic in these ports - as it’s not advisable to dissipate international traffic in many ports of local significance.

Geographic position of the Pomeranian ports seems to be a great trump –

especially localization along the north-south transport corridor (a significant factor in ferry traffic). Moreover, the localization in the region is attractive for tourism and leasure3. Furthermore, these ports are situated in the only developed east-west transport corridor – with Hungary, Austria, Czech and Slovak Republics as the potential hinterland for passenger traffic4. While emphasizing advantages of geographical position, some weak points should still be mentioned. These are peripheral ports in the EU, thus it’s more difficult for them to metter as important tourism centers – especially cruising centers.

3 Quite apart from not too favourable climate condition in the Pomeranian, alike in the whole Baltic Sea region. 4 These aspects are emphasized e.g. in D. Rucińska: Transport pasażerski w regionie gdańskim w warunkach gospodarki rynkowej Gdańsk 1994, p. 31-36.

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A convenient land-side access is a crucial factor in port’s development, also in case of port as a tourist center. Having in mind road, air and rail connections between the two above mentioned ports and their hinterlands, it should be stressed that rail infrastructure linking these ports with national and international hinterland have not principally differ from European parameters; it also refers to rather convenient transport connections between Gdańsk Airport and the Three City agglomeration. The road connections in turn leave a lot to be desired. It refers to: lake of highways to south of Poland and central Europe, “separation” from important national roads as well as low safety of traffic. Such situation do not favor development of passenger traffic, particularly ferry traffic. However, some hopes on improving the access to the ports could be connected with complete implementation of road connection between A1 highway and the Gdańsk city and port. The same requirement has to be met in the port of Gdynia. In that case the road connection between Gdynia and Gdańsk – as the main destinations in most tourist trips – still builds a barrier in increasing passenger trips.

Now, few words should be devoted to smaller ports and their position at the

map of tourist “flows” in the Pomeranian Region. There is no doubt that a localization becomes a factor mostly determining

dissimilarity and specific character of small ports and harbors. Localizations of such ports as Puck, Jastarnia and Hel are based on natural hinterland of the Puck and Gdańsk Bays. The other small ports as Łeba and Ustka also have a favorable in spite of slightly different conditions (eg. microclimate or sea shore configuration which makes construction of yacht harbors difficult).

Similarly to big ports, the land access to these ports is still a present-day

problem. It refers specially to roads’ quality and number of parking places. It is important that despite those unquestionable weak points, the localization’s trumps predestinate also the smaller ports in the region to become not only the centers of see-shore tourism (eg. yachting or the so called “white fleet”) but also a deep sea tourist centers.

4. PORTS’ INFRASTRUCTURE AND SUPRASTRUCTURE

Sea ports are not only a fixed element of national transport systems, they also should be treated as the elements of tourism’s technical infrastructure.

Although special infrastructure and suprastructure are not necessary for serving passenger trips in large ports, the competition forces them to improve conditions of passenger service, particularly to build passenger terminals – specialistic, functional and fulfilling high security requirements. Moreover, the existing berths are equipped with all devices and objects necessary for serving not only passengers of voyage ships; these ports have also ferry terminals, coastal shipping terminals and yacht havens (eg. port in Copenhagen and other Scandinavian

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ports)5. It should be strongly stressed, that nature of these ports is not stricte passenger – just opposite – these are the commercial ports differentiating their services thus attaching great importance to the tourist voyages.

An important feature of modern ports as maritime tourism centers is a strong pressure on connections with port’s city, through railways, roads, parking places, telecommunication, etc. Moreover, when it’s possible, the passenger terminals are located nearby city centers. Similarly, investigating smaller ports and marinas located in regions of maritime tourism, it should be stressed that the requirements putting on them, not as high as in large tourism centers, shouldn’t differ from the accepted standards of ports’ development.

The port in Gdańsk, with diverse infrastructure putting a universal nature on it, has two ferry terminals in operation6. The yacht haven seems to be a city trump card, especially in case of modern marina, located in the city center, which has been entered into operation in 1997.

The port in Gdynia, better adapted to serving large passenger ships (maximum drought up to 12,5 m) offers berths at the French Berth and at attractively located Skwer Kosciuszki. Services for ferry traffic are offered at Helskie Berth, where the Stena Line have its own terminal. Moreover, Gdynia has a very well prepared unit for yachting – a city yacht port of European standards, located in the neighborhood of the city center.

In the Pomeranian Region, the already mentioned numerous small ports, offering usually the yachts’ havens, serve also the tourist traffic7. Unfortunately, the nature of southern Baltic’s coast make the access for yachts difficult. Moreover, the construction and maintenance of port’s objects calls for large infrastructural costs8. Generally speaking, it should be stated that adaptation of the Pomeranian ports, either the large ones and the smaller havens, leaves a lot to be desired.

5. TOURIST TRAFFIC IN PORTS

The most important external factor of ports development as tourism centers is the demand on ports’ services, visible in the ships’ calls and passenger traffic. The number of ships and passengers profits by port services in Gdynia or Gdańsk is rather modest while compared with world “stars”9. The more so as the Polish statistics include not only number of cruise ships and their passengers but also ferry traffic and passenger service in other sea transport. The data in Table 1 presents international passenger traffic in main Pomeranian ports.

5 More information in: S. Szwankowski. Funkcjonowanie i rozwój portów morskich. Gdańsk 2000, p. 65. 6 A ferry ferminal at Westerplatte – favourable located, nearby the port’s entry and close to the city center ; well connected with the domestic and international road network, adapted for serving cruise ships. The second ferry terminal in a New Port – operated by the PŻB Polferries – of less favourable characteristics. 7 On the basis of: W .Liskiewicz: Porty i przystanie polskiego wybrzeża: przewodnik żeglarski. Gdańsk 2001, p. 49. 8 These ports are characterized by quite different type of sea yachting which calls for the back up facilities of shipyard, hotels and gastronomic. 9 More information in : J. Miotke – Dzięgiel. Turystyka morska. Gdańsk 2002, p.37.

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Table 1. International passenger traffic in selected Pomeranian ports in 2000-2004

A port Year No. of passengers

A port Year No. of passengers

A port Year No. of passengers

Gdańsk

2000 2001 2002 2003

141,881 139,651 175,729 273,663

Gdynia

2000 2001 2002 2003 2004

264,470 289,010 391,384 444,553 490,119

Ustka 2000 2001 2002 2003

3,700 3,700 6,423 3,288

Source: based at Rocznik statystyczny Gdańska 2003, tabl. 10(29); Rocznik statystyczny Woj. Pomorskiego, Gdańsk 2003 tabl. 8 (283); Porty morskie i żegluga morska w Polsce w latach 1999-2001, Szczecin 2002, p. 46; „Porty i Spedycja”, no. 1/2005, p. 3

However at the first sight these values are optimistic because of the growing

trend they show, Polish ports have lost a vast number of passengers who chose other European ports. It has also to be noted that passenger traffic in Gdynia was about twice as much as in Gdańsk, and also the dynamics of this traffic was relatively high, likewise in the small port in Ustka (until 2002).

In the last few years the growing trend in passenger traffic of excursion nature is visible, with a domination of the port in Gdynia. In 2000-2004, 55,355, 56,422, 26,666, 58,411 and 72,977 passengers came here by sea on the passenger ships. The number of calls was adequately: 68, 73, 53, 95 and 8210. Thus these numbers, particularly the ones in 2004, are promising. One also has to remember that only some excursion ships of a large fleet entering the Baltic Sea call at the Pomeranian seaports, and, statistically, only one third of them have in their schedules visits in Pomeranian ports (calls at the port of Gdynia or – much rarely – Gdańsk).

And now some words about the statistics of ferry traffic. Passenger traffic in Pomeranian ports reached as much as: over 355 thousands of passengers in 2002 (till Sept.) and over 344 thousands passengers in 2003 (till Oct.). The position of Polish ferry carrier (PŻB “Polferries”), whose vessels enter Gdańsk, also weakens in favor of foreign carriers11, first of all “Stena Line” in Gdynia. It is worth to be stressed that forecasts on passenger traffic, particularly to the ports of southern Sweden, indicate high growth dynamics.

Looking at passenger traffic statistics one cannot exclude short-sea traffic – by ships of Żegluga Gdańska (particularly in so-called the small trans-border traffic), Żegluga Gdyńska and other small operators, on sea yachts as well. And thus, ships of Żegluga Gdańska carried 247,955 passengers in domestic traffic and 90,191 passengers in international traffic in 2002. In turn, in the port o Gdynia app. 183 thousands passengers benefited from voyagers offered by Żegluga Gdańska and Żegluga Gdyńska, either inside the port, to Baltiysk (duty-free shopping) and to

10 Data of the port of Gdynia. 11 In 2003 also DFDS Seaways

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Hel12. To sum up there are a few numbers typical for traffic in yachting basins: 1,516 sailing and motor yachts, incl. 150 foreign in Gdynia in 2003, almost 1000 vessels in Gdańsk, incl. numerous foreign ships: German, Swedish and Finnish13.

It is important that during the last few years a boom in small ports was noted, particularly as far as such tourist services are concerned: various kinds of passenger transports, sea yachting, windsurfing and other water sports. And despite the fact that the most important role in tourist traffic services belongs with no doubts to large ports in Gdynia and Gdańsk, the other ports, at least some of them, also look for their chances in offering “fashionable” tourist services.

6. PERSPECTIVES OF POMERANIAN PORTS AS PASSENGER-TOURIST TRAFFIC CENTERS. DIRECTIONS OF ACTIVITIES

The time of economic, social and political changes, we are facing now, despite numerous threats, offers new chances and challenges. With no doubts one should account to the second group the geographic location of the Baltic Sea Region, which has became in practice an internal sea of the EU. There are also other “traditional” tourist values of the Pomeranian region, like: historical monuments in cities located in Hanseatic, amber or castle routes. At last there are effects of economic-political transformations in a form of not only many private and under privatization domestic shipping companies, but first of all in establishing strong foreign operators. It is important that despite rather bed state of some infrastructure objects (both port’s and access to ports and harbors), the overall situation in passenger-tourist traffic is improving and the directions of actions are included into development trends of contemporary maritime tourism. However new ways of economic operations of port activation have to be pursued, aimed to a larger extent at passenger traffic services, particularly tourist services. First of all one should expect that the demand for maritime travels will increase owing to:

1. utilization of niche markets, 2. enlarging a scope of maritime tourism products. In addition, considering numerous different premises of creating maritime

tourism centers on the Polish coast, one is able to indicate areas and main directions of operations. The Figure 1 presents a proposal of such.

Thinking about he future one cannot avoid fundamental issues of the EU

development. Integration processes of market structures with the Euromarket – also the tourist market of the Pomeranian Region – will be submitted to concepts of developing unified internal EU market. Among other things, the full liberalization of an access to the market of services will provide full competition among its participants.

12 Author’s own calculations based on data of Żegluga Gdyńska and Żegluga Gdańska; in 2003 the fleet of the second one carried 220,588 passenger in domestic traffic and 90,191 in international traffic. 13 Based on data of municipal sport and recreation centers in Gdynia and Gdańsk

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Figure 2. Spheres of impact at Polish ports position in servicing future passenger (tourist) traffic

SPHERES OF INFLUENCE

INTERNAL (a company level)

Main ports

Demand sphere

State Territorial units

Effects of EU

member-ship

Passenger terminals

Infrastructure (management)

Services for ships

Defining and collecting dues

Marketing of port services

Activities of private services providers

Small ports and harbour

Infrastructure (building, operation and management)

Connections, vessels, passengers

Other maritime tourism products

Prices of tickets, charters, etc.

Infrastructure (integration of port and transport infrastructure)

Infrastructure (large ports

A manage-ment model, a legal system

Development programs of communities and regions

Accessi-bility improve-ment

Infrastruc-ture (smal ports and harbours)

Opening the market - free compe-tition - proce-dures (eg. border)

Integra-tion of ports in multi-modal chains – with the aid of EU funds

Batlic and Euro-regional coope-ration – financed partially by the EU

The end of duty-free shopping

Promotion, information

Competition with other transport forms and ports

Imple-mentation of the SuPort-Net program

EXTERNAL

Source: prepared by the author

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In this context, it is significant that a nature of port economy, and a long-term impact of globalization processes, offer relatively good perspectives to large Pomeranian ports. In fact the existence of these ports in themeselves, even in a present form, should constitute an advantage as far as conditions necessary for maritime tourism development are concerned14.

Meeting this conditions is not in fact sufficient. Since a long time one knows that ports do not function without the State involvement (particularly in legislative and financial spheres)15. If large Pomeranian ports are to play an important role in the economy of not only the region but also the whole country, the authorities, particularly on the highest level, have to be aware of this important task. So much the more, they cannot ignore perspectives of ports becoming centers of maritime tourism.

Some hopes arise from a growing involvement of local authorities. It is a result of a growing awareness of the fact that the seaports have to be considered as important parts of port cities, and their authorities have to influence the development of ports located in them. Only well-prepared and coordinated administrative actions of authorities’ representatives may, facing a competition with the EU countries - and not only (Russian ports !!!), provide a flow of foreign investments and an acquisition of the EU support funds.

Generally speaking, in large Pomeranian ports, where the State Treasure still has a right to manage, a weaker influence of local authorities at development directions of seaports may make optimal investment decisions difficult. It concerns not only the ports themselves. Considering the EU markets, Polish ports are located peripherally, which means that without better access to the hinterland they will be also deprived of passenger flows16.

Some smaller ports and harbours are suited to a role of "lesser centers" of maritime tourism. However, their development to a large extent depends on domestic tourists. Because tourists’ preferences have changed a lot during the last few years17, it does not mean a stable trend. So much the more, one cannot ignore the growing interest of foreign tourists in the Polish coast, sailors in particular. Smaller ports are granted new development opportunities – in cooperation with community authorities – by the Act on seaports and harbors, many times novelized. It separates a property management from the port commercial sphere, available also, owing to a scope of operations and invested capitals, to domestic investors18. However, the question whether communities, as hosts of smaller seaports, owning their territories, will manage to develop maritime tourism and international sea sailing, remains open. A lack of own capital of

14 The efficient servicing of passenger traffic in seaports requires, among other things, large space. While planning the development of ports as prospective maritime tourism centers the authorities should enlarge borders both of land and water territories. 15 The state must be involved in economic processes in the infrastructure sector. 16 In ferry transports, particularly by ro-pax vessels, the large part of tasks would go also to passenger transport. Implementation of development policy of port and land infrastructure enables to hope for growing development of passenger traffic, also tourist, owing to investments and organizational solutions. 17 Many Polish sailors during the last few years go to the Croatian and Greek coasts. 18 These are also investments into floating equipment. A high cost of building and chartering yachts slow down the development of sailing.

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communities, very often poor, can constitute a barrier on the way to the EU funds that may turn out to be difficult to overcome.

An the last but not the least postulate – because of a significant values of Pomeranian tourist products, also as far as maritime tourism is concerned, it is necessary to promote the region among defined market segments and to create its image. It means that achieving the right position by Pomeranian seaports on the Baltic maritime tourism sub-market constitutes a serious challenge for numerous participants of economic life, and also for economic and tourist organizations.

7. CONCLUSIONS

The above analysis and comments on a development position and perspective of Polish Pomeranian seaports on the maritime tourism map of the country enable to formulate the following general conclusions:

− development trends in maritime tourism predestinate seaports to play a role of important tourist centers,

− the analyzed Pomeranian seaports are on a way to gain a role of such centers in the region; to a largest extent main ports of the region are suited to this role, particularly as far as ferry shipping and cruises are concerned; passenger traffic shows a growing trend;

− location of seaport is a main value of them, a lesser one – a state of infra-and suprastructure development;

− the land communication accessibility of seaports is the main development barrier;

− coordinated actions of port authorities and central administration on all levels, in particular local authorities is necessary to meet serious challenges facing the ports of Pomeranian Region. Thus, it will enable for ports and tourism taking benefits of the positive aspects of the EU membership.

REFERENCES

Dostosowanie gospodarki Pomorza do Unii Europejskiej (2002 ), ed. by D.Rucińska. Gdańsk (in Polish). Jarosiński J. Podsumowanie roku. „Ports and Forwarding”. No.1 /2005 (in Polish). Liskiewicz W., Warunki uprawiania i rozwoju turystyki morskiej w Polsce. „Czas Morza”, No.1(16)/2002 (in

Polish) Miotke-Dzięgiel J., (2002) .Turystyka morska .Gdańsk ( in Polish) Miotke-Dzięgiel J., (2004) Direction of Maritime Tourism Development in Poland – New Approaches in

Management, in.: Tourism and Hospitality Industry 2004 (17 th Int. Congress ) Opatija, Croatia (in English)

Misztal K., Szwankowski S., (1999) Organizacja i eksploatacja portów morskich. Gdańsk Miasta i gminy morskie w obliczu wyzwań XXI w (1999.), ed. by T.Parteka. Gdańsk (in Polish). Parteka T. (2000) Strategia Rozwoju Województwa Pomorskiego. Gdańsk Polska Żegluga Liniowa i Promowa 2003 (2003), ed. by H. Salmonowicz . Szczecin (in Polish) Szwankowski S., (2000) Funkcjonowanie i rozwój portów morskich. Gdańsk (in Polish) Turystyka szansą rozwoju społeczno-gospodarczego regionu nadmorskiego (2001), ed. by A.Szwichtenberg,

Gdańsk – Hel (in Polish)

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki

Department of Tourism

Greece

Management

UDC 004.738.5:658.8](438) Preliminary communication

Received: 11.03.2007

THE ROLE OF THE ONLINE ADVERTISEMENT FOR THE CONTEMPORARY ENTERPRISE

Adam Salomon University of Gdańsk, Poland1

Abstract: Many practitioners in the field of the Internet are regarding it a kind of art. Perhaps on that reason is it so hard to find the unequivocal answer to the question what the Internet is? From a technical point of view it is a global computer network making up from various, smaller and bigger, of the network and isolated computers. This net is connected with the help of telephone lines, radio, link satellite and fibre-optic. This web is winding almost entire contemporary world. An about 960 million of persons is using the Internet in entire world (2005). For this community an Internet is a new, fascinating medium, thanks him we have the unrestricted access to many pieces of information. A network is the biggest global market which so far existed where small-sized enterprises can compete with themselves with large corporations. And where the words “the market” and “the competition” are appearing, it must appear also the word “the advertisement”. The advertisement exists from beginnings of the mankind. In ancient times people already recommended their products wanting to sell them. They used the shout or simple posters mainly. Together with the development of the civilization an advertising developed. Great changes came in modern times when, a press, a radio and television arose. They started diverging from advertising products sold by oneself on their own initiative. In the today teams of people are working at so that while watching TV we keep an eye on advertising blocks. However such a model of the advertisement started stirring up controversy a lot. We understand the necessity for her but its importunity is annoying us because the advertisement is pushing into all areas of reality, even between stages shown on television of films. For this reason they started searching for running different centers in to the customer, all the way to the moment when an Internet appeared. The Internet offered the advertisement not only a mass audience and the possibility of the influence on him with the help of the text, sound and the image. Traditional mediums already earlier enabled it. Based on the one-way model of announcing, however they aren't able to draw for the recipient into interactions. The advertisement passed down behind their mediation usually gets through to potential customers then when for you they are entertained with something completely not bound with the subject of the commercial. Key words: Internet, online advertisement, network, banner, medium, “pull”-type, “push”-type.

1. INTRODUCTION The number of netizens in Poland constantly is increasing. They are already

making the 19.8% of the population of inhabitants of our country in the age of 15 years

1Adam Salomon, Ph.D., University of Gdańsk, Institute of Maritime Transport and Seaborne Trade, Poland.

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old and more.2 What is that fast height dictated with? Undoubtedly an interest in the Internet is growing thanks to the rapid development of the network. Thanks to that we can observe more and more connecting private persons and the institution from the village. In spite of it is still this group isn't too numerous, but is growing systematically and fast. Noticeable growth is distinct also amongst internet women. Also is changing a way of the access to network services - to date a place of employment or a place of abode were a predominating place, in which we used the Internet (with the help of modems). At present proportion the ones turned - a number of connecting users having at home constants connection to the Internet through cable or radio is still increasing. The large role of the Internet for the more and more people is becoming very important. It became the best and fastest way of getting and the interchange of the current information and communication.

The most out of Polish netizens are living in cities (higher up 500 thousands of

inhabitants, the 20.5%). The interest of using the net on villages is still so little (16.8% of all users of the network). What are the main reasons of the non-using the Internet? The main lack is not possibilities to access to the network (36.5% of recommendations). In the second order (33.4% of recommendations) as the cause respondents are giving the lack of the computer, which the costs of purchase often exceed financial possibilities of the average Polish family. A percentage of persons which aren't feeling the need to use this way of communication and obtaining information is over the 15%.

Most often, (54.5% of recommendations), Polish are connecting with the

Internet from the house, but also from the work (37.8%), from the school or the college (28.2%), in online cafés - 24.5%, at familiar, families - the 18.3%, the lack of the permanent location, the portable access - 0.7%, different - 3.3%. The majority of netizens uses the net every day - it declared the 35% of respondents. Little over the 23% examined only several times during the week. Cable nets gave the chance of the faster and cheaper access to the Internet therefore so there are still more users are using the net at home. It is possible to assume that the number of such users still will be rising. Sides of portals, offering the enormous dose to the information from every field are web pages most often frequented - messages, wire services, a weather or catalogues are only some of them.

The most well-known portals are Onet.pl which the 43.3% of respondents is

using and the wp.pl (Virtual Poland), with the 24.5% visiting netizens. Clearly rose a percentage of persons doing shopping in the web. In the period examining the shopping in the web caused six preceding months over the 15% examined. In the case the 30% was it is a single purchase. Every third person out of buying through the Internet did it 2 times and every fourth made a purchase at least fourfold (26.1%). They have most often spent for the shopping from 200 up to 500 zlotys (21.8% of recommendations). We have most often bought books (35.2%), CDs (21.4%), and accessories, the computer hardware and the software. Over the 90% examined which decided on the purchase of some good in the web was satisfied from this decision. As the best things of buying such a form respondents replaced the comfort of the purchase (delivery to the house), and its speed. If netizens aren't deciding on the shopping through the Internet, it therefore don't have

2 The examination was carried out in days from 5th October to 8th November 2005 with CATI method (computer assisted telephone interview) - the telephone intelligence service aided by a computer was carried out 6285 interviews. The full interview was being carried out exclusively with persons above 15 years which used from the Internet in the sequence of the last month. Including N=1373 of full interviews was carried (www.e-click.pl).

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confidence to such a way of getting the estate. Every third netizen read in the sequence of 6 last months online editions of magazines or daily newspapers (33%). Amongst persons reading newspapers on-line definitely it is most popular online spending the “Gazeta Wyborcza” (gazeta.pl).

2. PERSPECTIVES OF THE DEVELOPMENT OF THE INTERNET AND ITS INFLUENCE OVER THE ECONOMIC DEVELOPMENT

The Internet is the fastest developing and evolving medium of our times. The

next issue is an exchange of files - particularly music and video.3 Thanks to working out very effective algorithms of the compression of sound and the image (mp3, divx), sending the information of this type via the network became possible, and even income. It also largely influenced over the development of the illegal turnover with such data. At present, large record concerns, are trying at all costs to limit this practice.4

We are already only for the step from the situation, when instead of to turn on

the radio to listen to the favourite music or watch a film on TV, we will be starting the suitable program in order behind the little payment to choose the repertoire interesting us, rather than so for us traditional mediums are serving which. This situation will become even more probable in the moment of popularizing plug-in computers (Network Computer) which won't have own carriers of the memory mass and software will be taking the whole down from the Network.5

It is very hard to determine how the Internet will look after a few or a dozen

years. Probably there will be worked out a new technological, aspiring to the soil of standards answers, however they are being disregarded by the majority of providing producers of the equipment software what he is dressing that they are diverging into the oblivion. The network is marked by a ceaseless changeability, closely bound with its users and nothing is pointing at so that this situation has time to change in the most recent or even longer period.6 The mankind has always aspired and he is aspiring to getting like the best, freshest and fullest information. Without it, not only the Internet would stop existing, but also a lot of from traditional mediums.7

3. PERCEIVING THE ADVERTISING THROUGH THE PRISM OF THE INTERNET AS THE NEW MEDIUM

The Internet is a very universal medium. Its history more than once already

proved it. Also an advertisement widely comprehended is an one among many of applying it. However this medium enough considerably differs from traditional centers taken in the advertisement. Traditional it is medium is the type "push". With this name traditional advertising mediums are being determined, so as the press, the radio or television. Internet however, is recognised as the medium of the type "pull".8

3 Borowska/Salomon, 2000, pp.171-180. 4 Caples J., 2000, pp.167-169. 5 Maciejowski T., The company …, 2004, p.58. 6 Maciejowski T., The tool …, 2004, pp.89-93. 7 Salomon A., Chosen aspects …, 2001, p.79. 8 Salomon A., 2005, pp.123-128.

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So what does the difference consist in? Above all on it, that mediums of the type "push" (ang. to thrust) have the task of reporting, "to stuff" it, surrounding its recipient from everywhere are trying to attract the attention with diverse techniques and treatments - with sound, the moving image, controversial passwords or untypical printing techniques. Such an advertisement is trying also to have an influence on emotions of recipients. Very advertising forms at using the method "push" are distribute to their recipients so to speak without their participation - are being acquired in the passive way. Choosing the channel on television or we don't have a radio station after all of influence on it, whether and what advertisement will just turn up to the antenna.9

Differently the matter looks in the case of the online commercial. In order

fully to make oneself acquainted with the form a chosen website is presenting which watching must make the activity to which he is giving its assent setting about to it - alone is deciding what he will be examining. Behind itself a need to create every now and then is carrying it more aggressive forms of having an influence to the recipient, for so that he pays attention on proposals introduced to him.

On pages of websites an interactivity (i.e. a possibility of action) is a characteristic

feature of the printed advertisement requiring the reaction on the part of the user to presented content. It is about the rear important merit of this medium the process of the communication is happening far more active than it is taking place in the case of traditional mediums.10

What the advertisement would be, if it was no possibilities to measure its

effectiveness? It is necessary to rate the next advantage of the online advertisement. The WWW service permits an advertising campaign accurate tracing of the course, including with the number of persons which visited the given side, how long a commercial was shown, which areas they came from, how much of them ignored a commercial (banner etc.), and a lot of different information. All the most important data are accessible on the spot. A campaign doesn't need to be summarized.11

Very big advantage of the online advertisement for one, and with marginal

matter for another is its range. The network is a medium extending to entire world and so there is also a reach of advertisements printed in it theoretically. This fact can be important for large corporations which services have international character and they are being visited by netizens from different states, however the entrepreneur about the local range won't use rather such a convenience.

On-line advertising has even more limited access, than it is taking place in the

case of traditional medium. Step of the development technological of individual societies is diversified very much - some users are using the Internet in the limited way. It is also very hard to reach some social groups. New technologies are rather a domain of young, developed people which efficiently are managing with the operation of the computer or of different inventions enabling the access to the network (as for example mobile phones).

9 Salomon A., 2004, p.165. 10 Salomon A., The online advertisement …, 2002, p.98. 11 Salomon A., The role of the computer …, 2001, p.134.

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The Internet is still reaching a lot of narrower group of people than the radio, television or the press, however looking at his rapid development it is possible to prophesy that these differences will slowly be fading away. Everything is causes treating this new medium as supplementing an advertising campaigns carried with the help of traditional medium.

4. CONCLUDING REMARKS

Appearance of the new medium in the advertisement, fortunately didn't provoke the new way of creating advertising forms. However we should realize that the Internet is ruling oneself with one's laws and if the advertiser wants to achieve the purpose set for oneself (independently whether this impelling to the purchase, increasing the current sale or reminding of the being of the brand will be) must know the specificity of every medium used in the campaign. After the Internet has become known in the advertising business, it appears the necessity of refreshing the alteration of advertising strategies. Thanks to applying websites as the advertising medium we have new possibilities, which in the coincidence of applying traditional methods would pull expensivenesses behind themselves or would be simply unfeasible. Connecting the text with the image can be an example here (if is animated) and of sounds and interactive elements in one advertising form. Before we enter any action, describing its purpose is a basic step. We are not having to limit ourselves only on one subject, we can choose a few of them and use under lasting of advertising campaign. This stage is extremely important in preparation of an advertising campaign. Sometimes building the brand it is possible as part of one campaign to assign differing cells to different commercials, e.g. apart from creating the image of the company or the brand also promoting concrete products or services.

The first advertising banners put on web pages were treated exclusively as the

addition as supplementing traditional advertisements. At present advertisements on-line are an inseparable companion marking every information got from the network, but in campaigns is slowly and systematically growing. No advertisement can be dropped "into the vacuum". Advertiser dropping his form must be convinced of the fact that it will hit to right addressees - of target group closely selected, otherwise can take into account grave losses, causing even unpredictable situations bankruptcy of the company. No advertiser should start an advertising campaign without carrying the profound market research. It is possible to make it (in the limited rank) on one's own - by putting on company web pages the different kind of questionnaire, formulas, probes, dubious lists. People using these conveniences are exactly a target group, on the opinion for which for us he is depending.

In case of the online commercial far it is easier to selecting the right target

group, distinguishing the group of potential customers which will become interested with advertised stuff, reaching them and impelling to make a decision about the purchase. Here is a serious virtue of the online advertisement - it is enabling the accurate access to the group chosen by the advertiser of customers, e.g. thanks to putting advertisements on websites specializing in given field (vortals). Such sides are being visited mainly by regular readers, members of the selected target group, rather than through accidental netizens. For the person dealing usually with problems concerning the Internet and network communities choosing the right circle of addressees of printed advertisements WWW, won't be making the more considerable problem.

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Taking the advertising action in the Internet, first of all we should think whether generally speaking such action is making sense. I mean the subject of the commercial. For the example - with pointless idea for me e.g. advertising in the web the powdered milk is revealed. Or else whether it will be easy to find the right recipient of such a form and what's more to interest it for them and to impel to the purchase? It is a very important point in the planning which can spare for the advertiser of many expenses, if in time he decides on choice of the righter advertising medium. It is the most important question: does the Internet advertisement bring to the company the benefits.

REFERENCES

Białecki P., Tuchołka H., The dishonest or forbidden advertising: new statutory regulations, texts of legal documents, specimens of contracts, C. H. Beck, Warsaw 2002

Bogunia-Borowska M, The advertisement as creating social reality, the publishing company of the University of Jagielloński, Cracow 2004

Borowska A., Salomon A., Online advertising banners - the 21st medium of the age, [in:] Sea transport of Poland in integrated Europe. Scientific booklets of the Gdańsk University. The economics of the sea transport, Gdańsk 2000

Caples J., the Effective advertisement, the Publishing House the ABC, Warsaw 2000 Domański T., The effective advertisement and the promotion, Poltext, Warsaw 1993 Gregor B., Stawiszyński M., E-commerce, Brant, Łódź 2002 Jachnis A., Terelak J.F., Psychology of the consumer and the advertisement, Brant Bydgoszcz 1998 Kozielski R., The meaning of the advertisement for the rival ability of Polish enterprises, the publishing

company of the Łódź University, Łódź 2000 Łodziana-Grabowska J., The effectiveness of the advertisement, the Polish Economic publishing company,

Warsaw 1996 Maciejowski T., The company in the Internet. Building the rival majority, the Economical Annexe, Cracow 2004 Maciejowski T., The tool of the effective promotion in the Internet, the Economical Annexe, Cracow 2004 Nowacki R., Strużycki M., The advertisement in enterprise, Difin, Warsaw 2002 Nowińska E., Fighting with the dishonest advertisement: civilian-legal problems, Universitas, Cracow 1997 Przylipiak M., How an advertisement is acting, a Gdańsk Psychological publishing company, Gdańsk 2004 Rossiter J., Percy L., Advertising, Comminucations & Promotion Management, McGraw-Hill, New York 1997 Salomon A., Chosen aspects of getting the rival majority by the company basing on the Internet, [in:] The

competitiveness but challenges of the contemporary economy. Conference materials prepared by the Club of the Young Economist by the Polish Economic Company in Gdańsk, PTE in Gdańsk, Gdańsk 2001

Salomon A., Conditions and effects of functioning of the enterprise in the global web, [in:] Electronic business. Chosen problems, a joint publication under. the ed. of Dobrowolski K. and Kujawa J., The Foundation of the Development of the Gdańsk higher education, Gdańsk 2005

Salomon A., The B2B market - the present state and perspectives of the development, "Details on the Sea and the Trade", No. 17/568, September 2001

Salomon A., The development of information and computer technologies in the sea economy, [in:] International markets and the global management. Scientific booklets of the Gdańsk University. The economics of the sea transport, the publishing company of the Gdańsk University, Gdańsk 2004

Salomon A., The online advertisement as the way of seeking the identity of the company, [in:] The transport and the sea trade, ed. of Żurek J., the publishing company of the Gdańsk University, Gdańsk 2002

Salomon A., The role of the computer science in the freight forwarding, [in:] Globalization with challenging carriers for the environment, the 2nd materials of the Congress of Forwarders, Sopot 2001

Salomon A., The role of the home pages of enterprises on special offer, [in:] Sea transport in the global management. Scientific booklets of the Gdańsk University. The economics of the sea transport, the publishing company of the Gdańsk University, Gdańsk 2002

Szpringer W., The electronic trade - the competition or the adjustment?, Difin, Warsaw 2000 Vassos T., Marketing strategies in the Internet, the Emka Studio, Warsaw 1999 Wasilewski P., Pioneers and titans of the Polish advertisement, the Agency Wasilewski, Warsaw 1994 Wieszczyński D., The Polish criminal law vs. the Internet, Poland in the road to the global information society,

UNDP, 2002 Zamojski W., The Internet in the business activity, a publishing house of the Wrocław technical university, Wrocław

2004

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki

Department of Tourism

Greece

Management

UDC 658.8:658.3.012.4

Preliminary communication Received: 11.03.2007

BENCHMARKING HUMAN POTENTIAL

Vidoje Vujic Slobodan Ivanovic

University of Rijeka, Croatia1

Abstract: Basically benchmarking is comparing one’s own enterprise with those of the competitors that are the best in their fields of activity for the purpose of cognition on how they managed to become market leaders, as well as how to integrate such good business principles into one’s own system of business dealings. However, benchmarking does not represent straightforward copying of the method of work of others i.e., it isn’t a process of adopting ideas, but rather of adapting the effective solutions of others to one’s own needs. The strong point lies in the exchange of ideas that promote quality and encourage personnel creativity. The work considers the advantages and types of benchmarking, indicating the possibility of implementing benchmarking in the sphere of human potentials. The basic principle of this process is to perceive what exactly the market leaders are doing to improve their business, and to integrate everything from the accumulated data that might contribute to the advancement of business. Key words: benchmarking, human potnetials, benchmarking process, knowledge management.

INTRODUCTORY CONSIDERATIONS

In the Croatian language, the expression benchmark refers to a starting point or a standard of measurement.2 Basically, benchmarking is comparing one's company with other best competitors who are the in the same line of business. Benchmarking does not constitute mere copying of somebody else's methods of work. It is not a process of taking over ideas, but is instead an adapting of workable solutions of others to our own needs. Its strength is in an exchange of ideas that instigate creativeness. Benchmarking is a continuous process of identifying, understanding and adapting a

1 Vidoje Vujic, Ph.D., Associate Professor, Slobodan Ivanovic, Ph.D., Assistant Professor, University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia. 2 Renko, N., Delic, S., Skrtic, M., Benchmarking u strategiji marketinga, Mate, Zagreb,1999, p. 9.

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company's product, service, facility or procedures with the best practices, the goal being to enhance one's own business. This process embraces3:

comparing the company and its divisions with the best ones, comparing production and other company activities with competitive firms, comparing products and services with the results of leading competitors , comparing technical solutions for purpose of choosing the best equipment, implementation of best business performing processes, planning of development and active adaptation of new trends and

technologies, carrying out and surpassing the expectations of consumers.

From the mentioned it may be concluded that the essence of benchmarking is

the acquiring of cognition, which can be further developed, elaborated and adjusted to one's own needs.

1. TYPES OF BENCHMARKING

Empirics have developed several types of benchmark processes each of which is defined by its aim and by the object of investigation, and they can be separated into the: internal, competitive, functional, generic, strategic, combined internal and external benchmarking4.

Internal benchmarking enables analysis of running a business and its

enhancement in light of the organizational divisions of the enterprise that have asserted themselves as effective and profitable. Internal benchmarking includes two-way communication and exchange of opinions between sections within the same company or between several companies that make up a singular business system.5 Internal benchmarking is characterized by an easier access to necessary data, lesser expenses, etc., however a large number of experts think that the best solutions are to be found outside of the concrete enterprise(s).

External benchmarking is based on comparing the company's activities with

the activities of other companies, and is conducted at a much slower pace than internal benchmarking and its execution necessitates higher costs. Furthermore, it is necessary to take into consideration that all the solutions that are applied in a company are not of necessity applicable in all the other companies.

Competitive benchmarking implies comparing the activities of one

enterprise with the activities of other enterprises, the aim being to obtain important data on how competitive enterprises run their businesses, so as to compare such data with their own, hence to enable the positioning of their own products, services or market management in relation to the competition. 3 Vujic, V., Menadzment ljudskog kapitala, drugo izdanje, Fakultet za turisticki i hotelski menadzment, Opatija, 2005, p. 145. 4 Renko, N., Delic, S., Skrtic, M., Benchmarking u strategiji marketinga, Mate, Zagreb, p. 26. 5 Kozak, M., Nield, K., "An Overview of Benchmarking literature: Its strengths and weaknesses", Journal of Quality Assurance in Hospitality & Tourism, Volume 2, Number ¾, The Haworth Hospitality Press, An Inprint of Haworth Press, Inc., New York, 2001, p. 10.

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Functional benchmarking includes comparing of products, services and business processes performing the same activities as the best companies worldwide, regardless of the business that they do. The aim is to ascertain ideal handling of business, regardless of its location; thus this type of benchmarking offers possibilities to achieve excellent quality in running business.

Generic benchmarking includes the comparison of various activities in order to reveal similarities between business processes. In this way numerous innovative processes are discovered, such as business culture, communication, itemization and similar procedures that are used by business systems of excellence.

Combined internal and external benchmarking, as it is called, indicates that

enterprises start with internal benchmarking, and in the end they shift to external benchmarking. Each company combines these processes and activities to their own needs and preferences.

Strategic benchmarking is a search for successful strategies that leading

firms have worked out. It is used when the purpose is to bring business strategies into consonance once they become unsuitable due to technological changes or buyer demands. It should always be pointed toward processes of key interest for the success of the enterprise.

Each of the designated benchmarking processes has its advantages and

shortcomings. Every enterprise will decide which type of process is the most desirable. The best results are found by utilizing the combined internal and external benchmarking since all enterprises differ, hence each enterprise makes up its mind for the combination of different benchmarking processes with which it will accomplish the best business results. On basis of the mentioned, it is possible to name the joint positive effects of benchmarking: 6

it contributes to a better understanding of crucial processes, it is a means of learning and motivation, it teaches from the business practice of others, it develops a business system that teaches, the enterprise learns to manage and adapt to changes, focuses on the demands of users and of the market, quicker and better decision-making, increase of profit and efficiency, helps enterprises ascertain their own strong points and weak points, motivates employees to accept innovations within their own domain.

Benchmarking as a managerial technique and tool is founded on the idea that

it is possible to look into the best procedures of other companies and thereafter to apply the changes formed on basis of such observations. Benchmarking is a first-class source of business ideas, and one of the basic benefits of benchmarking is its opening of both the business system, as well as of every individual towards new ideas, products and business processes.

6 Fakultet organizacije i informatike, www.foi.hr (15.5.2003.)

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2. BENCHMARKING PROCESS OF HUMAN POTENTIAL All enterprises should be aware of the fact that the only way to survive on the

market and uphold successful business activity is by properly motivating their employees to attain new levels of skills, efficiency and creativity. It is more and more clear that successful enterprises on the market are precisely the ones that can offer more know-how and better quality on the global market.7 It is therefore very important for the department of human potential within every enterprise to be organized in the right manner. Human potential, as a constituent part of the intellectual capital of a company, must under the conditions of general globalization and accelerated development of new technologies, be capable of rapid change and adjustment to new demands. Outline 1 depicts the property structure of an enterprise. Outline 1: Property Structure of an Enterprise

Company's Property

MATERIAL CAPITAL HUMAN CAPITAL (Material property) (Immaterial property) ▪ Equipment & machines Intellectual capital (employee structure) ▪ Finished products Cultural capital (organized process & relations) ▪ Immovables, working assets Market capital (users & suppliers)

Source: Vujic, V., "Management of Knowledge and Personnel", Human Capital, Culture and Quality in Tourism and Hospitality Industry, Faculty of Tourism and Hospitality Management, Opatija, 2002, p. 243.

Benchmarking is a customary part of checking the work of the human potential department within an enterprise. Work checking is an internal study of the human potential department within the company, which also embraces an assessment of the work of the managers of every area. At the start it is necessary to ascertain the effectiveness of the various functional areas of the activity of human potential. Thereafter, benchmarking of the various activities of the human potential department is executed in order to assure a continuous progress. Benchmarking human potential enables the managers to have insight into the success of human capital management and to coordinate the personnel policy components with the company's strategic business plan. According to Jeannette Swist, designing the benchmarking process is comprised of the following four steps:8

Step 1.: Plan (What should be subjugated to the benchmarking process?) Step 2.: Investigate (Where to find benchmarking information?) Step 3.: Analyze (What should be done with the gathered data?) Step 4.: Implementation (Why is implementation essential?)

7 Vujic, V., “Management of Knowledge and Personnel”, Human Capital, Culture and Quality in Tourism and Hospitality Industry, Faculty of Tourism and Hospitality Management, Opatija, 2002, p. 238. 8 Human Resources Learning Center, www.human-resources.org. (15. 5. 2006.)

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The First Step calls for a survey and identification of all the processes of human potential, those that were successful, as well as the ones that were not. The only way to establish what functions in a company, and what does not, is by accumulating, measuring and analyzing data. By and large, this part of the benchmarking process includes checking up on:

procuring, selecting and deploying of personnel, job initiation and motivation of personnel, innovation of knowledge and personnel promotion, appraisal of workers' achievements and assessment of co-workers' satisfaction.

Checking of only one of the above mentioned areas would merely provide limited insight into the activities of human potential. Enterprises must link the benchmarking process with the strategic business plan as illustrated in outline 2.

Outline 2: Benchmarking Process

NO

Strategic guidelines of work

Is it necessary to conduct benchmarking?

Errors in one's own running of business

YES

Appraisal & identification of errors

Establishing steps for improvement

Plan of action

Duty to enhance business

Systematic application

Source: Pyo, S. "Benchmarking the Benchmarks", Journal of Quality Assurance in Hospitality & Tourism, Volume 2, Number ¾, The Haworth Hospitality Press, An Imprint of the Haworth Press, Inc. New York. 2001, p. 2

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When on the subject of strategic guidelines and initiatives it is necessary to establish in which way will the strategic plan have an impact on the human potential. The first thing to establish is to ascertain what is in concordance with the needs, and what is not. After that, interviews with managers are made to establish their views on how they think the plan will influence them. It is necessary to amass as many different ideas as possible, list them, and pick the best ones from that list. The benchmarking process provides various possibilities. One of them is a perspective „outside“ of the enterprise and an analysis of its activities. The planning process is also the focusing on specifics, target themes and working methods of our competitors. In this phase it is necessary to establish the areas that should be subjugated to the benchmarking process. Managers have to determine which problems need to be solved. This part of the process begins with concentration of analyzing the problem or analyzing specific possibilities.

The second step encompasses investigation of information required for the

benchmarking process. The sources of information can be: libraries, Internet and on-line services, professional associations, various publications, educational institutions, providers, experts and consultants, investigative studies, various opinion polls, et al. The investigation process should begin with finding a source that compares the data that the initiator-enterprise has amassed with the information that already exists, and which is linked to the problems under investigation. In the course of investigation databases can be used and doing so it is necessary to focus on a specific area of investigation in concordance with the key words. It is important to avoid excessive focusing on details so as not to overlook observing the big picture. In contrast, it's important not to get involved in investigations that are too broad and too comprehensive, since all the accumulated data must be useful. The investigative process will be easier if the problem is approached by searching for a possible solution, instead of making exertions to ensure support to some proposed solution. Data for investigation can also be acquired by establishing contacts with colleagues through professional associations and the like.

The third step of the benchmarking process is to analyze the consumers,

competitors, markets and the surroundings. The aim of this analysis is to identify and describe the consumers and understand their preferences and needs; assess the size of the market and establish the companies and products that compete on the market. One of the results of analysis of external factors is the identification and discovering of favorable opportunities and threats which the company encounters or will encounter. During the inspection of the amassed data it is necessary to look for concrete processes, used methods, standards for evaluation of results, as well as activities and technologies whose implementation brings about effective performances.

The fourth step of the benchmarking process is the implementation of new

solutions or changes in running the business. Their application is necessary in order to provide a continuous progress. This desire to upgrade the value of the enterprise is apparent in all four steps of the benchmarking process. The first step of planning calls for the establishment of the factual state and analysis of the assembled data regarding the activities of the human potential. The second step – investigating renders the opportunity to identify benchmarking sources. The third step – analysis, comprises the analyzing of existing practical solutions, work methods, methods of measuring results, activities, and the technology that brings about topnotch levels of performance. The

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fourth step, points to the fact that communication and action must follow all the hitherto undertaken activities within the benchmarking process. The advice and strategies for implementation are:9

presentation of facts and conclusions to the company management, to show the results in graphic form, to ascertain available possibilities for improvement of work, to establish the aims and gain the trust and support of the company

management, to establish the desired outcomes of activities.

The ASTD Benchmarking Forum has developed a set of standardized

measures for comparing data between different enterprises. ASTD Benchmarking Forum was founded in 1991, and by the end of 2005 it had 55 members.10 The basic aim of the ASTD Forum is to gather and analyze as much data as possible that would enable us to understand the various trends in the process of innovation of the knowledge of employees. Any company can become an ASTD member and utilize their services if they desire. Membership in the forum brings the following benefits:11

joint learning and exchange of information, joint analyzing of studies of cases and databases regarding trends that

have an impact on the advancement of business excellence, comparative reports on analytical investigations of specific data received

from all the other companies. In order for fellow members of the Benchmarking Forum to retain their

positions on the market they are obliged to maintain a continuous performance of the benchmarking process, looking for the best method of doing business and constantly networking with other companies for the purpose of accumulating data. The Benchmarking Forum is engaged worldwide and its structure enables members to learn from the best world-class companies and professionals who will teach us to better understand the internal problems of a company and the impact that they have on the development of the company's employees.

The set of measures and services of the Benchmarking Forum helps

companies control and enhance the efficiency of the learning process and see to it that the managers of human potential receive credible information for making comparisons with other companies. ASTD's Benchmarking services are accessible to everybody. Every company, big or small, can utilize the advantages of these services free of charge. With the use of the set of measuring instruments, every company can begin to participate in the benchmarking process whenever it wants to.

9 Human Resources Learning Center, www.human- resources.org (15.5.2006.) 10 Human Resources Learning Center, www.human-resources.org (15.5.2006) 11 Human Resources Learning Center, www.human-resources.org (15.5.2003.)

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CONCLUSION Quality is the backbone of today's world market and the sole creator of quality

is Man, who has to be motivated to permanently innovate his knowledge. The major assignment of a manager has become to render individuals of quality, motivate them, educate and develop them to achieve superior results and contribute to the accomplishment of the organization's goals. In absence of that, the best of plans or organizations will have no effect.

The global market does not recognize the inadequate or average anymore, but

only the excellent. Under contemporary conditions of business management, a company can no longer allow itself to be humdrum or „drowsy“ in a business sense. On the contrary, in order to survive a company must be on a constant level of alertness and readiness to react to the steadily ascending changes on the market. Benchmarking is one of the most successful methods of „maintaining“ our awareness of the company's position on the market, and of the necessity to introduce changes and innovations into the management of our own business.

REFERENCES

Kozak, M., Nield, K., "An Overview of Benchmarking Literature: Its strengths and weaknesses", Journal of

Quality Assurance in Hospitality & Tourism, Volume 2, Number ¾, The Haworth Hospitality Press, An Imprint of Haworth Press, Inc., New York, 2001.

Pyo,S., "Benchmarking the Benchmarks", Journal of Quality Assurance in Hospitality & Tourism, Volume 2, Number ¾, The Haworth Hospitality Press, An Imprint of the Haworth Press, Inc. New York. 2001

Renko, N., Delic, S., Skrtic, M., Benchmarking u strategiji marketinga, Mate, Zagreb,1999. Vujic, V., Menadzment ljudskog kapitala, drugo izdanje, Fakultet za turisticki i hotelski menadzment,

Opatija, 2005. Vujic,V., “Management of Knowledge and Personnel”, Human Capital, Culture and Quality in Tourism and

Hospitality Industry, Faculty of Tourism and Hospitality management, Opatija, 2002. Astd, www.astd.orgPSBS, www.benchmarking.gov.ukHuman Resources Learning Center, www.human-resources.orgFakultet organizacije i informatike, www.foi.hr Hrvatska gospodarska komora, www.hgk.hr

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki

Department of Tourism

Greece

Management

UDC 339.923(4-67EU:497.5)

Preliminary communication Received: 25.03.2007

DEVELOPMENT OF EUROPEAN UNION AND JOINING PERSPECTIVE OF CROATIA

Ivan Vukovic

University of Rijeka, Croatia1

Abstract: In this paper we researched European Union starting with the Agreement from Maastrich from year 1992, even though the European Union has a long traditional history and its origin is founded on regulations of economical integrations in Europe beginning from the 1950’s through the Roman treaty from year 1957 and the forming of the European Union Committee in year 1965. Further we follow her expansion and introduction of the European economic and monetary policy, to last, the joining perspective of Croatia. According to the Agreement from Maastrich, European Union lies on three posts: 1) Legal-political and regulative post, 2) Economical post, where the forming of European economical and monetary policy is in the first plan, especially the introducing of Euro as the unique European currency, 3) Post of Mutual foreign-security policy within European Union. In that context we need to highlight the research conducted here and in European Union, including the world, regarding development of European Union and its economical, legal, political and cultural, as well as foreign diplomatic results, which are all perspectives of European Union. All the scientists and researches which were involved in exploring the development of EU with its modern tendencies and development perspective, agree that extraordinary results are achieved regards to economical, legal, political, foreign-security and diplomatic views, even tough many repercussions exist in progress of some particular members and within the EU as a whole. The biggest controversy arises in the perspective and expanding of European Union regarding ratification of the Constitution of EU from particular country members, but especially after the referendum was refused from two European countries, France and Netherlands. According to some estimates, the Constitution of EU would have difficulty to be adopted in Switzerland and some other Scandinavian countries, but also in Great Britain and other very developed countries. However the European Community and European Union were developing and expanding towards third European countries, regardless of Constitutional non-existence, where we can assume that if and when the Constitution of EU will be ratified, the EU will further develop as one of the most modern communities. This will enable economical development, especially development of European business, unique European market and free trade of goods and services, market of financial capital and labour market in free movement of labour. Being that EU has become one of the most largest dominating markets in the world, it offers a possibility to all new members to divide labour by using modern knowledge and high technology which insure economical, social and political prosperity. This results to forming a society of European countries which will guarantee all rights and freedom of development for all nations and ethnic groups. As well as, all European countries with somewhat less sovereignty, but in international relations will be stronger and significant, not only in sense of economics, but also in politics and military diplomatic relations. Therefore, Croatia has no choice and perspective if she does not join the European Union till year 2010, but until than it needs to create its strategy of economical and scientific-technological development, including demographic development, which will insure equal progress of Croatia as an equal member of European Union. Key words: European Union, development, joining, perspective, Croatia.

1 Ivan Vukovic, Ph.D., Full Professor, University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia

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1. INTRODUCTION In this paper we researched development of European Union and the perspective

of Croatia joining the EU as an equal member with the basic intention to provide a short retrospective of EU development, to learn today’s tendencies in economical, social, political and scientific-technological views. Further, to also examine and concept real possibilities of the dynamics and tempo for Croatia joining the European Union. In the paper we firstly view the development, that is, the retrospective of European Union development since the Agreement from Maastrich. We then analysed the most important trends of economical, social and political development of European Union in the present situation, especially regarding the introduction and implementation of the Constitution of EU.

Furthermore, we consider the building of mutual strategies of scientific-technological and economical development and the building of EU as a knowledge society and informational society which needs to insure that EU becomes one of the most developing regions of the world and one of the most competitive economical regions in the world. Simultaneously, we researched the joining perspectives of Republic of Croatia to European Union, thus considering that the dynamics and tempo of joining will depend on political, economical, legal and diplomatic conditions. In that context, we need to consider the need to build long-term development conceptions in Croatia till year 2020, as the Mediterranean country which based on her comparative advantages can develop into the European California.

2. HISTORIC RETROSPECTIVE OF DEVELOPMENT OF THE EUROPEAN UNION

The European Union is formed by the Agreement from Maastrich in year 1992

and since than, de facto, the European Community has grown into a European monetary and economic union, where special significance is the forming of a unique European market in free movement of goods, services, capital and labour.2 However, the forming of European Union did not stop only at economical aspects as regards to forming a unique market, since the Agreement from Maastrich it has a wider concept of development and impact on the European Union.3 It is foreseen that the EU as a society of modern European countries will base its progress and overall functioning on the three posts.4

Firstly, the EU members have agreed to form a unique EU and to introduce a

unique European currency – the euro, from 1st of January 1999. Simultaneously, it is determined by the Agreement from Maastrich that the European Union also has a mutual foreign policy and security policy (CESP). Furthermore, the EU members have agreed to form a regulation for legal and internal policy (JUH), which provides all citizens with equal rights, promotes political co-operation among countries and co-ordinates political relations about immigrants and granting asylum throughout the EU. They have also agreed upon expansion of EU, firstly onto Sweden, Finland and Austria till 1st of January 1995 and that they will open the joining process for Middle and Eastern European countries. Thereby, Austria, Sweden and Finland have become equal members of EU on 1st of January 1995, while Middle and Eastern European countries,

2 Vukovic, I., European economy, Dalmatina, Zagreb, 2003. 3 Rifkin, Jermy, European dream, Skolska knjiga, Zagreb, 2006. 4 Calleo, David, Rething Europe, Future Princeton, Princeton University Press, 2001.

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10 of them, Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia and Slovakia, have joined the EU on 1st of May 2004.5

Herewith a European Union is formed, as the strongest economical and

political regional community in the world with the population of more than 455 million people. However, the expanding and developing of EU did not stop on that being that the joining process is further open for countries of Middle and Eastern Europe with the condition to fulfil the economical and political criteria that are determined with the special Copenhagen Resolution from year 1993. On 1st of January 2007 out of the countries on the Middle and Eastern Europe, first to join EU were Bulgaria and Romania thus expanding the EU onto 27 members with an increase of the population to more than 500 million people. It is estimated that Croatia shall become a member till end of year 2010, becoming the 28th member of the EU based on the Resolution of the European parliament from the 25th of April 2007 which relates to speeding up the process of Croatia joining the EU.

The contract from Amsterdam from year 1997 additionally explains and

specifies the defining of human rights within the EU, since by this contract it is determined that the country candidates for EU membership need to respect the regulations about the European Convention of human rights as the basic term of entering the EU. The Contract from Amsterdam regulates within the EU laws against discrimination based on gender, race, religion, ethnic origin, physical and mental disadvantages.6 At the Ministry conference held in Nice, in December of year 2000, the members of EU defined the future structure of European Parliament, the structure of the European Comity and the new procedure of decision making within the European Council. In that context, of great importance is the procedure of decision making, the fact being that the votes of large countries have tripled, while the votes of small countries have only doubled. To vote for a proposition from the Council it is necessary to gather 73,29% of votes which is two-thirds of majority country members and majority of 62,0 % of total population of EU.7

However, this did not stop at reforms and development of EU, the Constitution

of EU is initiated from the side of European Comity, whose plan has been accepted within the European Parliament in year 2003 and the procedure of ratification is in process, even though it has created confusion in ratification and accepting the Constitution which France and Netherlands have refused. According to the proposition of the Constitution, the EU would be constituted as a trans-national parliamentary democratic country, which includes the EU document about basic human rights, where the EU can independently sign treaties with third countries, but which will be compulsory for all EU country members. It is foreseen that the Constitution in EU will have a representative in the Security Council of United Nations, thereby to amends the position of France and Great Britain. Also, by the Constitution it is foreseen that the EU will have its president, which shall be chosen every four years as well as a premier of external affairs.

The question of financing the EU and its bodies of authority, as well as mutual

projects, is left open as one of the biggest issues for functioning of the EU. Even

5 Kandzija, V., Economic system of EU, Faculty of Economics Rijeka, 2003. 6 Rifkin, Jermy, European dream, Skolska knjiga, Zagreb, 2006. 7 The Economist, 16th December, 2000, London, 2000.

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though the financial and taxation policy is in empowerment by national countries, a big problem arises regarding participation of particular countries within European budget. This happened in year 2005 when there was a big crisis of introducing the EU budget which was determined till year 2013 thus creating a special debate between developing countries of EU, like France and Great Britain. Regardless of the problems which the EU faced, we need to point out the extraordinary results which it achieved in the period from year 1993 till year 2005, in the field of economics, law and politics what can be seen, regardless of the economical recession, through the stable overall GNP growing on average 2,5 % annually, thus achieving the level of gross GNP per capita more than 23.000 EUR.8

Simultaneously, legal acquirements which are the basis for development of

human and civil rights, freedom of all citizens of EU have been realised even though certain problems existed regarding legal and equal rights, especially asylums and immigrants within the EU. An example, are civil rivals which arise mainly from persons of Arabic origin, which occurred last fall in France when they were deprived of rights compared to other citizens of France. In political point of view the EU in the past period from the Agreement from Maastrich has shown a relatively great stability since there were no conflicts between particular members. Even the so-called Constitution crisis, when the Constitution of EU was not accepted from France and Netherlands, did not affect the diplomatic agreement achieved to delay the introducing and verifying the Constitution of EU until certain misunderstandings of issues are solved.

Regarding foreign and security policy, the EU has in the last period achieved

starting results since every country member must lead and create its external policy even if the EU members follow mutual activities concerning pressing issues. This was especially expressed during the process of determining mutual politics towards South-eastern European countries and the functioning of the International Court in Den Haag. Furthermore, the European Council has introduced the Agenda about development of Social knowledge in Europe in year 2000 know as the Lisbon Agenda. In this Agenda the strategy of scientific and technological progress is determined, especially the development of informational society within the EU till year 2010 with the basic goal that the European Union becomes one of the strongest economic forces and most competitive country on the world market in order to compete with most developed countries in the world such as USA, Japan and similarly.9 However, this was not accomplished and certain problems exist for its realisation what has determined that the European Comity in March 2006 determines additional measures and activities, regarding the achievement of this concept about scientific-technological and economical development of European Union.10

3. MODERN TENDENCIES IN DEVELOPMENT OF EUROPEAN UNION European Union and its country members, regardless of specific problems in the

field of economics, politics or in society, in the past period, has continually developed as a modern society, combined with European countries, which have the largest market in

8 Vukovic, I., European economy, Dalmatina, Zagreb, 2003. 9 European Council, The Lisbon Strategy also known as the Lisbon Agenda or Lisbon Press is a comprehensive action and development for the European Union, Lisbon, March, 2000. 10 European commission, EU Sustainable Development Strategy, Guthenburg Strategy, Luxemburg, 2001

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the world and which dominate in foreign exchange, being that they participate over 45 % in the world trade of goods and services.11 Moreover, we need to point out the economical meaning of internal European markets within the European Union where an economic frame exists for free fluctuation of goods, services, capital and labour. In that view it is estimated that the trading transactions within the EU, the so-called internal trade exceeds 3.0 billion euros thus showing a constant tendency of growth of valued services and financial transactions. The market of financial capital on the European market is a place where one trades with different financial instruments from money, credit, foreign currencies, securities, to euro bonds.12

According to estimates, the biggest transactions take place on the European

market, more than 70 %, where a great deal is carried out in securities, especially stock and bonds, as well as their derivatives, what results with extraordinary impulses in the whole economy development of EU.13 Therefore, it is estimated the on the unique European market, during year 2005, an exchange of over 150 billion euros was realised, where the ratio of valued transactions of securities was over 60% of total value. The banking and financial sector, especially the different types of financial and investment fonts are very developed within the European Union and they hold a dominant position in world measures, where the European financial sector is dominant above the financial sector of other developed countries in the world such as USA, Japan, China and similarly. These tendencies will further continue since the European market in its potentials, as well as, on stock markets, have become the most developed capital market in the world.14

Furthermore, the EU has continued its race with USA, Japan, China and other

Asian countries regarding scientific-technological development and determined the strategy till year 2015, where priority is given to development of informational technology and its implementation within economic progress.15 Priority is given to development of scientific-technological progress of modern high technologies, especially informational technology, development of electronics, micro-electronics, nano-technology, development of alternative sources of energy and similarly.16 In that context, special meaning is given to development of innovative technology, especially through application of Microsoft Windows, through development of operative informational networks of open code. Special significance is given to development and application of the Linex informational network of open operative code which seeks insignificant costs in use and has special benefits in economical and social development of European Union.17

Simultaneously, the race against robotisation of European economy continues,

as well as the general application of robots in economical and social progress where high financial resources are being invested for its development and expansion in order to insure prestige of most developed countries in the world and so to insure high productivity of labour and competitiveness of European economy on the European and

11 WTO and UNCTAD, Trends about development of world trading, Geneva and New York, 2006 and 2005. 12 Vukovic, I., European economy, Dalmatina, Zagreb, 2003 and Kandzija, V., Economic system of EU, Faculty of Economics Rijeka, 2003. 13 Vukovic, I., European economy, Dalmatina, Zagreb, 2003. 14 Ibidem. 15European commission, EU Sustainable Development Strategy, Guthenburg Strategy, Luxemburg, 2001. 16 Dragicevic, A. and D., Period of cibercomunism – High technology and social changes, Gold Marketing, Zagreb, 2003. 17 Ibidem.

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world markets.18 The biggest problem in economical development of European Union can be energetics through especially high increases on the world market in oil prices, including the problems regarding sources of gas, especially Russian gas and its transactions through Eastern European countries what can result to an economic and energetic crisis in EU. In that context of great importance is the up-dating and realisation of long-term projects, insuring mutual European sources of energy on one side, while on the other side mutual projects regarding investments into projects of alternative sources of energy and its usage in European economy and in European households.

4. JOINING PERSPECTIVE OF CROATIA INTO EUROPEAN UNION The joining of the Republic of Croatia into the European Union as a legally

equal member will in future depend on several circumstances. Firstly upon political, economical and diplomatic security, including the evaluation of most developed countries of EU and USA about the strategic role that Croatia should have, mostly as a Mediterranean European country. In that context, at this historic moment it is necessary to play an extraordinary role in scientific functions and creative activities of Croatian intelligence, within Croatia and wider, in order to strategically create and provide answers to important questions of social-economical, political and diplomatic-security character. Also it is necessary to create a development strategy of Croatia for the next ten years or till year 2020. The European Comity already has a study about development of EU till year 2020, therefore, it is in order for Croatia to have a scientific and political strategy as well.19

It is difficult to estimate when Croatia shall be accepted as an equal member into

EU, but when I was working on one project regarding progress of European Comity and joining of Croatia, it seemed real that Croatia can become a legal member in year 2010, also based on the Resolution of the European Parliament about Croatia entering the EU.20

At this moment, it seems to me that this will be possible to achieve only under

the condition to develop a strategy of social-economical progress of Croatia till year 2020-2030, where we need to first observe, from the scientific view, which comparative advantages Croatia has as a Mediterranean country and Central European country. In that context I believe the Mediterranean sea, especially the Adriatic coast and islands, where Croatia has great potentials with thousands of small islands and few large islands, can be the centre of economical development in Croatia and on the whole Mediterranean. It is of great significance to connect our islands into the European and world marine and land corridors, and to further develop those connections with main road European corridors which will enable new investments into various types of economies. Particularly into development of different forms of tourism services which by its features are connected to the Mediterranean how it used to be in the past, what is the main slogan of our newest tourism development strategy in Croatia.21

According to a certain concept, the long-term conception of Croatia needs to be

to develop into the European California.22 Within the long-term conception of

18 Vukovic, I., European economy, Dalmatina, Zagreb, 2003. 19 European commission, EU Sustainable Development Strategy, Guthenburg Strategy, Luxemburg, 2001. 20 Vukovic, I., European economy, Dalmatina, Zagreb, 2003. 21 Ministry of Tourism of the Republic of Croatia, Tourism development strategy in Croatia till year 2010, Zagreb, 1994. 22 Srica, V., Innovative manager, Coroman – Consult, Zagreb, 1995.

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development in Croatia as the European California, it is estimated that Croatia has similar performances and conditions for development within the European Union the same as California has within USA as one of the most developed American countries. This demands to research the structure of the economy and concept for the strategic development of California, to also view development of Croatia as a European California, where only from tourism, more than tenths of millions of US $ can be realised annually. For that reason, the question is whether to allow Europeans to buy real estates in Croatia, particularly land, hotels, apartments and cultural wealth, where within these projects it should be possible to buy real estates, but with the obligation to additionally invest into those real estates and that their further selling should be restricted and prioritised for strategic development of Croatia as the Mediterranean country.

The newest research conducted till year 2030 estimates that the Mediterranean

countries will become most attractive regions of development in Europe, and not only for the Mediterranean but for its natural richness which offers possibilities of an alternative and healthy way of life in Europe and in the world. Further, it is estimated that by year 2030 the Mediterranean population will increase from 400 million to more than 450 million people in year 2055, while in other parts of Europe it is estimated to stagnate.23 The Mediterranean also offers the possibility to use natural resources what will in future be crucial for life which refers to enormous riches which the Adriatic sea has available. Moreover, the energetic resources, especially gas and oil, and their alternative energetic sources such as usage of sun energy, wind and richness of biological sources, can be transformed into different sources of energy just by using modern technology.24

Additionally the Mediterranean provides affirmation and development of

tradition, also development of industry, which was in the past characteristic for progress of Mediterranean cities. Today by implementing modern technology, projecting, organisation, communication and informational technology it offers possibilities for developing a new Mediterranean economy based on small and middle large entrepreneurship. This can be expressed in all economic fields, from agriculture, olive cultures, vinery and other different Mediterranean cultures. Also it has special meaning in the field of boat construction sites and nautical sites, particularly in development of boat sites and marinas in order to prosper growth in nautical tourism.

Simultaneously, large projects for investing into the economy should be allowed

along with selling of real estates, so to create obligation and free right of people living from various parts of Europe within Croatia, what can have certain benefits in the view of not only increasing natural growth, but also developing creativity and knowledge. In the political point of view, an important assumption of Croatia joining the EU as a legal equal member is definitely adopting the European regulations about human rights from Amsterdam in year 1997, and its application in various legal rights and freedom of citizens, along with all ethnic groups in Croatia.

Another important issue is connected to participation of Ante Gotovina along

with other generals in Den Haag, whose process and dynamics of solving will depend on the European Unions decision to accept Croatia. This law process on Croatian generals in Den Haag will probably have political implications on relations between Croatia and EU, as well as on USA. The final reasonable decision from the Den Haag Court should be 23 ILO, Economical and social development of the Mediterranean till 2030, Rome, 2007. 24 Ibidem, pg. 103-110.

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based on authentic facts, only then it is possible to make a correct decision which will not disturb the dynamics and tempo of Croatia joining the EU. However, we need to point out that legally equal acceptance of Croatia into the EU till year 2010 opens democratic processes in Croatia which will enable it to long-term develop on the political pluralism, market pluralism and pluralism of different types of ownerships. In these new social-economic and political conditions Croatia can develop on European social-technological and civilisations accomplishments as well as it can develop as a society of knowledge as part of the main progress of knowledge society in Europe.

5. CONCLUSION In the paper we researched and interpreted most important research results of

development of European Union and the perspective of Croatia joining into the EU. According to our evaluations, Croatia can be accepted into the EU as a legally equal member only under certain social-economical, political and diplomatic-security conditions till year 2010, by which not all problems will be solved since it is necessary to work on long-term projects and strategies of development of Croatia in order to enable equality with other EU country members.

In that context, within the paper we especially highlight the importance of long-

term development of Croatia as a Mediterranean country since the Mediterranean, that is the Adriatic Sea, manages with great natural and human potentials which are crucial for progress of Croatia in need to use these potentials, whereby they present comparative advantages against other country members of the EU. Scientific research has shown that Croatia should in long-term develop as the European California and that it should research progress of California as one of the most developed American States. All of which is based on progress and economical structure in order to create a long-term projection and development strategy of Croatia as the European California.

REFERENCES Calleo, David, Rething Europe, Future Princeton, Princeton University Press, 2001. Dragicevic, A. and D., Period of cibercomunism – High technology and social changes, Gold Marketing, Zagreb,

2003. European commission, EU Sustainable Development Strategy, Guthenburg Strategy, Luxemburg, 2001. European commission, Annual Progress Report, European Commissions Annual Progress Report on Growth and

Jobs, Lusemburg, 1997. European Council, The Lisbon Strategy also known as the Lisbon Agenda or Lisbon Press is a comprehensive

action and development for the European Union, Lisbon, March, 2000. European Parlament, Resolution about progress of Croatia in negotiations for membership in European Union,

25th of April, 2007, Strasbourg. Kandzija, V., Economic system of EU, Faculty of Economics Rijeka, 2003. ILO, Economical and social development of the Mediterranean till 2030, Rome, 2007. Ministry of Tourism of the Republic of Croatia, Tourism development strategy in Croatia till year 2010, Zagreb,

1994. Rifkin, Jermy, European dream, Skolska knjiga, Zagreb, 2006. Samardzija, V. and co-operators, Reforms in Lisbon Strategy implementation, Economic and social dimension,

IMO, Zagreb, 2006. Srica, V., Innovative manager, Coroman – Consult, Zagreb, 1995. Vukovic, I., European economy, Dalmatina, Zagreb, 2003. Vukovic, I., Concepts and development strategy of Croatia as a European California, Nase more, no. 3, 2002. The Economist, 16th December, 2000, London, 2000. WTO and UNCTAD, Trends about development of world trading, Geneva and New York, 2006 and 2005.

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Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

T.E.I. Thessaloniki

Department of Tourism

Greece

Management

UDC 338.486(497.5)

Subject review Received: 15.02.2007

POSSIBILITIES FOR DEVELOPING

CULTURAL TOURISM IN THE MUNICIPALITY OF MOSCENICKA DRAGA

– the case of historical trails

Elena Rudan

University of Rijeka, Croatia1

Abstract: This paper investigates whether it is possible to impact on the competitiveness of a destination through new dimensions of cultural tourism and by improving the existing forms of cultural tourism. The paper deals with the possibility of upgrading the development of cultural tourism through historical trails. The historical trails from Moscenicka Draga and Moscenice to Trebisce and Perun could supplement the creation of an image for this destination, which in itself has a strong seasonal character, as well as a strong orientation of tourists towards sea- and-sun motivated holidaymaking. According to the latest research, Trebisce was a place where the old Slavs used to make their offerings to Perun, the Slavic god of thunder. In other words, this is a sacred site of early Croatian mythology.The historical trails can help to differentiate, improve and enrich the tourism offerig of Moscenicka Draga as a tourist destination. The initiator and coordinator of this project is the Chair of the Chakavian Council (an organization dedicated to the preservation of the local culture and the chakavian dialect) of the Municipality of Moscenicka Draga. Key words: cultural tourism, historical trails, heritage, Moscenicka Draga.

1. INTRODUCTION

In the Municipality of Moscenicka Draga, located at the foot of Mount Ucka and boasting a well-known pebble beach, tourism began to develop at a very early date. Developing since the beginning of the last century, today tourism in this region remains a major platform for economic development. Initially, Moscenicka Draga was an excursion site for the rich gentry arriving in carriages from fashionable Opatija to enjoy 1 Elena Rudan, M.Sc., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia

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the beautiful beach and pristine nature. “Armanda”, the region's first hotel, opened its doors early in the last century. All along the coastline of Moscenicka Draga splendid villas began to sprout, and their wealthy owners brought about the region’s first tourist overnights by inviting friends to visit. Today, accommodation facilities comprise two hotels, the “Marina” and the “Mediteran”, one motor-camp “I”, and an exceptionally large and steadily growing number of rooms and holiday flats in private homes (a total of 2,500 beds).

2. ANALYSIS OF THE CURRENT STATE OF TOURISM

Over the past three years, the accommodation facilities of Moscenicka Draga have realised an annual average of 41,000 tourist arrivals and about 174,000 overnights. The distribution of overnights by month indicates that the majority of overnights are realised in the summer months. Seasonality is a very pronounced attribute of overnights in the Moscenicka Draga Municipality.

Tourist arrivals to Moscenicka Draga are mostly motivated by the sea, sun,

bathing and sports activities. Efforts are being made to enhance the existing offering with cultural attractions, such as:

1. CULTURAL SUMMER FESTIVAL – a program consisting of various events, festivities, and exhibitions held in the period from 15 June to 1 September. The Tourism Board of the Moscenicka Draga Municipality is the Festival’s organiser.

2. VISITS TO THE OLD TOWNS OF MOSCENICE AND BRSES - individual sightseeing of the old town centres. A project entitled MOSCENICE – A LIVING MUSEUM-TOWN is currently underway. It aims to revitalise the town centre (architectural mapping of the town), create a heritage exhibition, carry out landscape development, renovate the bell-tower and other facilities, and place the town as a whole, with its past, present and future, in the service of tourism. The founder and initiator of this project is the Moscenicka Draga Chair of the Chakavian Council, an organisation dedicated to the preservation of the local culture and the chakavian dialect.

3. VISIT TO THE MUSEUM COLLECTION AND OLD OLIVE PRESS IN MOSENICE – open year-round; visit accompanied by a professional guide

4. VISIT TO THE CHURCHES OF THE MOSCENICE AND BRSES PARISHES – open during services; viewings can be arranged with the pastor.

The cultural tourism offering presented in these programs has changed little

over the past two decades, and in repeat visits to this destination, tourists are looking for other, new services and facilities. The present range of possibilities that cultural tourism provides is sure to prove adequate to those tourists whose primary objective of holiday-making involves swimming in the sea, sunbathing and leisure, or those visiting the destination for the first time. The more discerning tourists, however, require more and want to experience other forms of entertainment and do some exploring, especially

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during the months when the concentration of cultural events declines with the number of tourists. To enhance the offering, every strategically well-planned and designed offering that meets tourist needs can contribute to increasing the satisfaction of tourists and prolonging the duration of their stay in the destination.

Up to date, there have been no projects that focus on meeting the other

interests of tourists. Development efforts have, in particular, neglected those territorial parts of the municipality that are less attractive, in terms of tourism. Lacking a proper strategic plan and action and without concrete support from component institutions, the efforts of individuals are doomed to failure after a few years (for example, the horse farm). Notwithstanding the existing activities relating to water sports, local festivities, cultural events including concerts, performances, etc. and visits to museums, the need to upgrade the tourism offering in Moscenicka Draga is evident.

3. TRENDS IN CULTURAL TOURISM

The needs of modern tourists are changing, growing or being upgraded, to be more precise. Improved living standards and globalisation processes on the tourism market exert a crucial impact on change in the behaviour of tourism consumers. (Vrtiprah, 2006: 280) Over the past two decades or so, a higher educational level and increased interest in cultural attractions, the need for acquiring new knowledge, and even the affirmation of modern tourists through this new knowledge in the society to which they belong have given rise to a greater need of identifying new cultural resources. Cultural resources associated to a destination can be offered as a supplement to the destination’s existing holiday offering, or they can be used to create a particular type of cultural-heritage-related tourism attraction that could, through strategic development, become a primary reason for tourist arrivals. To satisfy their interests and needs, tourists travelling for reasons of culture, tradition and history are also willing to spend money in restaurants and hotels, and on auxiliary services and facilities. Growing interest for cultural tourism is also evident in travel agency catalogues, which are increasingly offering travels combined with cultural attractions (for example, 2006 – the Year of Mozart – trip to Austria).

Specific local features should be emphasised as an important element in differentiating the tourism product, as they are an indication of the continuation of history through creation. (Pancic Kombol, 2000: 206) Cultural tourism in Moscenicka Draga is poorly developed, and the wealth of cultural resources existing in the entire area of the Municipality of Moscenicka Draga should be capitalised on and shaped to form one of the basic elements of the destination’s tourism product.

The cultural image of a town leaves a lasting memory and generates an

element of competitive advantage over other destinations To create a cultural image, the knowledge and practises of culture management are required, which as a “complex system of specific and interdisciplinary knowledge and skills has asserted itself as a requisite to sound and successful cultural practise and as an compelling factor in promoting overall cultural development”. (Hrvatska u 21. stoljecu, 2003: 127) The

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most important bodies of knowledge for those engaged in managing the cultural image involve the areas of management, marketing, history, culture and art.

Tourism is about selling an image and an identity. The more distinct an image

is from the images of other destinations, the greater the benefit it will have for the destination. Urry asserts that, almost everywhere, identity is derived partially from the image that is generated or reproduced for tourists, including the image of the location itself…located on a global tourism map.(Jelincic, 2005: 61)

Up to date, the primary resources of the destination include the beach and the centre of Moscenicka Draga, together with the old town of Moscenice and its museum. The other 80 percent of the area has remained untouched and unknown. A part of the hinterland overlooking the cove of Moscenicka Draga belongs to the Nature Park Ucka. Established in 1999, the park covers an area of 160 km2, encompassing the protected region of the Ucka range and a part of the Cicarija range. Notably, the area of the Moscenicka Draga Municipality has not been devastated by the construction of concrete buildings that have sprouted all along the Croatian coastline.

The role of cultural tourism in prolonging the tourist seasoning and the participation of new geographical areas in the tourism offering are vital to the further development of tourism in the Moscenicka Draga Municipality. Cultural resources could be used as a basis for generating the destination’s image or “identity card”. By aligning cultural activities with the tourism offering, it would be possible to differentiate the destination, expand the existing offering, extend the tourist season, and ensure a highly enjoyable stay for tourists.

4. THE PROJECT OF HISTORICAL TRAILS FROM MOSCENICKA DRAGA AND MOSCENICE TO TREBISC AND PERUN

The recent discoveries made on the hills overlooking Moscenicka Draga will

definitely contribute to the development of cultural tourism in the municipality. This area encompasses the Nature Park Ucka. During the past few years, scientific research (involving groups of scholars, professors and doctors of science, linguists, indologists, ethnologists and archaeologists), conducted through the Moscenicka Draga Chair of the Chakavian Council, has given rise to sound and irrefutable views backed by scientific evidence of the existence of a Slavic/Croatian sacred site located on Perun Hill (881 metres) at the village of Trebisce (where sacrifices were made to the god Perun). Perun was a Slavic thunder-god, and the word itself means “thunder”. That Trebisce was one of the sacred areas of the Old Slavs is evident in the distinct form of toponyms, which have been preserved in this region up to the present day (Perun, Trebisce, Petehova pec, Volovski kuk).

Spreading between Moscenice, Trebisce and Perun, these grounds, sacred to

the Croatian people, should be conserved and properly valorised and presented to domestic and foreign visitors as part of our inalienable ethnic spirituality. The past, using the present as a conduit, is infused into the future; thus, the unfamiliar past

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becomes a part of the present. Our past is here, all around us, but we need to notice and recognise it. (Vinscak, 2006: 138)

Field research has shown that there were five traditional trails leading from Moscenicka Draga and Moscenice to the Old Slavic sacred area at the top of Perun. These trails were in use at a time when there were no other known means of transportation, and today the rare chance traveller treads these paths that were once the only communication link between the environs and the towns and villages of the coast. All trails led to the shrine in Trebisce, where until some 40 years ago a watermill was in operation, and to Perun Hill, as the central sacred area of the Old Slavs.

Pursuant to regulations on the protection of cultural assets, Trebisce has been registered as an immovable cultural asset – our ethnological heritage. In the spatial plan of the Nature Park Ucka, this region is classified as a highly protected area (run-off area of torrent courses). (Grgurev, 2006: 166)

At present, preliminary work is underway, and documentation is being

prepared for the creation of a Museum collection in Trebisce, which would use state-of-the-art technology to present a part of the history of the Croatian people who lived in this region (traces of pre-Christian religion). Trebisce, the central spot, can only be reached on foot. These historical trails would once again be walked upon, as in the time of our ancestors, making tourists a living part of history. This region should be presented through an explorative experience, with tourists becoming the “explorers”.

The historical trails branch out in the following directions: 1. Moscenicka Draga – Sv. Petar – Trebisca (right bank of the stream) 2. Moscenicka Draga – Potoki – Trebisca (left bank of the stream) 3. Moscenice – Pod Matici – Malinski put – Trebisca 4. Grabrova – Potoki – Trebisca 5. Petrebisca – Perun - Trebisca

Realising the historical trail project requires taking advantage of the existing

strengths, while minimising and overcoming weaknesses and drawbacks and transforming them into strengths. It calls for exploiting external opportunities, and identifying the risks existing in the environment and their impact on the overall process of strategic development. (Table 1.) The development of historical trails as a strategically set and prepared project has great opportunities, which could lead it to become a successful example of managing cultural, as well as natural, assets.

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Table 1. SWOT analysis of historical trails

Strengths - Cultural and historical heritage - Scenic spots and landscapes - The existence of trails - Friendly and hospitable approach of

residents - Visits possible year-round - Creation of a cultural image - Trebisca and Perun as the central sites

Weaknesses - Poor road infrastructure - Lack of parking space for large

numbers of visitors - Neglected and unmarked trails - Mill and forge in poor condition - Pronounced seasonality

Opportunities

- Growing interest in cultural tourism - Convergence to guest preferences - Differentiating, improving and enriching

the tourism offering - Heritage protection and restoration - Increase in educational level - Convergence to the EU

Threats - Growing competition - Emergence of new service and

facilities - Changes to legislation - Lack of understanding on the part of

compotent institutions - Degradation of the site - Failure of residents to embrace the idea

Source: Author’s analysis

5. DEVELOPING CULTURAL TOURISM THROUGH HISTORICAL TRAILS

The Municipality of Moscenicka Draga possesses beautiful beaches and the

old towns of Moscenice and Brsec, but it is also capable of expanding its offering to include other examples of natural and cultural heritage.

The realisation of the historical trails project is an opportunity to enrich the

destination’s cultural tourism offering. To walk along all the trails requires several hours, and the presentation of the trails will need to be dealt with appropriately.

The cooperation of organisations and individuals at the local, regional and

national level can lead to the realisation of cultural tourism attractions. A particular role in creating tourism attractions is played by tourism boards, in conjunction with municipalities and associations at a local level, as the management that will create and develop an appropriate offering. All permits for realising the project will need to be obtained. It will also be necessary to locate sources of funding, in the form of either private or public entities that see their interests in this project (funding from the budget, private sector sponsorships, by attracting visitors, etc.)

The target segment consists of tourists vacationing in Moscenicka Draga,

visitors from the immediate and extended area, and a certain number of tourists who will intentionally come to visit this unique open-air museum of the Old Slavs. The

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manner in which visitors will experience this cultural attraction is of great importance – will they be active participants or merely passive observers. The walk along the historical trails furnished with signposts and promotional material and the museum display should conjure up the way of life in the past and Slavic mythology.

The latest discoveries in the field should be made known to the local

population, and their attention should be drawn to the previously unexplored cultural assets that surround them. Without the involvement of residents, neither the interpretation of new research nor the potential development concepts can be expected to bring the anticipated results. It is important to note that creating a sense of identity helps to promote natural and cultural heritage.

In developing and implementing the historical trails project in the Moscenicka

Draga region, it will be necessary to 1. Identify, restore and equip historical trails with appropriate signposts. 2. Design promotional material pursuant to the project’s marketing plan. 3. Develop a narrative about the arrival of the Old Slavs to this site (based on

scientific research up to date). 4. Equip and restore the building that houses the museum collection, as well

as the Information Point at the Museum Collection in Trebisce 5. Restore the other buildings in Trebisce (the mill, bridge, blacksmith shop) 6. Transform cultural resources into properly managed cultural attractions,

possessing the entire infrastructure required to receive a specified number of visitors

7. Put in place culture management = train the staff needed for project realisation.

Often the presentation, as well as the design, of cultural resources can lead to unexpected and intensive tourist flows. Prior to implementing this project, it will be necessary to make an appropriate economic assessment of the region’s carrying capacity, that is, what it the optimum number of daily visitors that the destination can absorb without disrupting its natural and historical harmony.

The entire project should be strategically developed to focus not only on

attracting visitors, but also on the coexistence of the domestic population, which present an integral part of the project. This is important especially for the residents living in the target area, that is, in villages along the trails. These residents would also be encouraged to make special efforts in maintaining their gardens and the area around their houses. Cultural tourism needs to become a component of life in a specific area, and not an isolated product.

When considering successful projects and initiatives for developing cultural

tourism, it becomes obvious that further development is not possible without initiatives at the local level where the basic cultural and tourism product is generated. (Tomljenovic, 2006: 143)

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6. CONCLUSION Historical and educational trails, featuring elements of Old-Slavic mythology

and leading to the sacrificial site at the village of Trebisce and the sacred area of the Perun Hill, are one of the possibilities for developing cultural tourism in the Municipality of Moscenicka Draga. The proper development and interpretation of this project to visitors requires the organised action of all organisational factors at the local, county and national level. The realisation of this project will help to enrich the tourism offering of Moscenicka Draga. It will also provide a better understanding of this region to tourists, whose arrivals are primarily motivated by swimming and sunbathing, and it will encourage the small circle of people, who wish to become explorers of history, to embark upon new explorations. There is no Old-Slavic museum in this region, and this fact presents a primary competitive advantage in realising the project. The realisation of this project will help to improve the quality of the destination, provide it with a richer cultural image, and enhance its position in the competitive environment.

REFERENCES

Belaj, V. (2006) Mit u prostoru. Mosceniski zbornik, 3(3), 5-38. Feifan, X. P. (2001) Iskustva kulturnog turizma na Hainanau: prostorni prerazmjestaj etnosela. Turizam,

49(4), 375-382. Grgurev, M. (2006) Park prirode Ucka. Moscenicki zbornik, 3(3), 163-171. Hrvatska u 21. stoljecu: strategija kulturnog razvitka (2003) Zagreb: Ministarstvo kulture Republike

Hrvatske. Jadresic, V. (1996) Zadar-grad kulture i turizma. Turizam, 44(3-4), 71-75. Jelincic, A. D. (2005) Kultura kao pokretacka snaga redefiniranja imidza destinacije. Acta turistica,17(1), 56-78. Katicic, R. (2006) Perunovo svetište nad Mošćenicama u svijetlu toponomije i topografije. Moscenicki

zbornik 3(3), 41-51. Kusen, E. (1994) Mogucnosti razvitka kulturnog turizma u Varazdinu. Turizam, 42(9-10), 164-167. Lebe S. S. (2001) Kulturtourismus: Herausforderung an den Tourismus in Slowenien.Tourism and hospitality

management, 5(1-2), 119-126. Magas, D. (2000) Razvoj hrvatskog turizma: koncepcija dugorocnog razvoja. Rijeka: Adamic. Makek, A. (2006) Sveti prostor slavenske mitologije. Novi list, 16. 10. 2006., 42. McKerchner, B., du Cros, H. (2002) Cultural tourism: the partnership between tourism and cultural heritage

management. New York: Haworth Hospitality Press. Moscenicka Draga: izvjestaj Turističkog drustva o desetogodisnjem radu (1952-1962) (1963) Moscenicka

Draga: Turisticko drustvo. Pancic Kombol, T. (2000) Selektivni turizam: uvod u menadzment prirodnih i kulturnih resursa. Matulji:

TMCP Sagena. Rutar, E. (2006) Povijesne staze Moscenicka Draga – Trebisca. Moscenički zbornik, 3(3), 159-160. Rudan, F. (2006) Povijesna staza Moscenice – pod Matici – Malinski put – Trebisca. Moscenicki zbornik,

3(3), 161. Strategija razvoja kulturnog turizma (2003) Zagreb: Vlada Republike Hrvatske, Ministarstvo turizma. Tomljenovic, R. (2006) Kulturni turizam. In Hrvatski turizam: plavo, bijelo, zeleno, Zagreb: Institut za

turizam, 119-147. Vrtiprah, V. (2006) Kulturni resursi kao cinitelj turisticke ponude u 21. stoljecu. Ekonomska misao i praksa,

15(2), 279-295. Vinscak, T. (2006) Perun i Trebisca nad Moscenicama, recentna etnoloska istrazivanja. Moscenicki zbornik,

3(3), 129-139.

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Institut for Economic Promotion,

Austrian Economic Chamber,

Vienna, Austria

T.E.I. Thessaloniki Greece

Department of Tourism Management

BOOK REVIEWS

Fox, R. and Fox, J. Organizational Discourse: A Language-Ideology-Power Perspective (2004), Westport, Conn.: Praeger,

ISBN 1-56720-605-0, 221 pp.

Prof. Milica Gacic, Ph.D. Faculty of Teacher Education, University of Zagreb, 10000 Zagreb, Savska 77

The book Organizational Discourse: A Language-Ideology-Power Perspective is an exploration into what the authors refer to as corporate public discourse (CPD); which is a predominantly written communication of corporations addressing stakeholders. The most typical examples of CPD are corporation mission statements which are, in fact, statements of business principles, corporate media advertisements (revealing a corporation’s media literacy) and corporation annual reports. Organisation, the authors explain, implies order and order implies the practise of power. In contemporary society the only acceptable practise of power is through consent which has to be attained through forms of legitimisation founded on cultural processes such as language. The fundamental question Fox and Fox aspire to answer is: how does corporate management use CPD strategically to gain legitimacy and to practise power through consent? Possible answers lie in the book which is divided into seven parts (Introduction, The corporation, Corporate management, Media of CPD, Quantitative Analysis, Specific Research Perspectives, Postscript), which are further subdivided into nineteen chapters. Each chapter is built upon attested examples of CPD taken from leading corporations such as, for instance, Wal-Mart, IBM and Patek Philippe. The Introduction outlines the notion of CPD and explains what is meant by a language-ideology-power perspective. It sets out too the book’s aim: to describe CPD, to contribute to the creation of a theory of CPD, and to establish a path for the future research into CPD. Part two defines CPD, its nomenclature and its value to a corporation. In part three, CPD is related to corporate management and the idea of a “corporate management discourse community” is introduced. The medium of writing and what it means to CPD is discussed in part four. This part also includes a discussion on mass media. An interesting turn in the book is offered in part five which presents a quantitative analysis of some CPD genres. Under Specific Research Perspectives, in part six, the authors offer research into the corporate metaphor, globalisation, gender, the CEO’s media interview and the promotionalisation of CPD. Finally, in the conclusion, the authors consolidate their views on CPD and call for a true interdisciplinary research into the language of organisations as social action. The book is written in a clear expository style, making appropriate reference to relevant studies. The description of real-life experiences of a number of CEOs, for example, Craig Weatherup, Jack Welch and

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Carleton Fiorina, smoothes the reader’s progress through the book. The glossary of key terms is a welcome addition. What we have in his book is an interdisciplinary approach, par excellence, drawing from several fields of study. In order to describe the structures and functions of CPD, the authors borrow from theoretical linguistics, as the basic discipline dealing with “the power of words”. To analyse CPD as social action, or more specifically, as a means by which corporations and corporate management establish social relations (for example, solidarity and power), social networks and social identity, the authors borrow from sociolinguistics. Methods of critical interpretation of CPD the authors borrow from the methodology of critical discourse analysis. To understand culture-related patterns of CPD, the authors borrow from the ethnography of communication. To provide theoretical access to the relationship between a corporation’s social representation and its CPD, the authors borrow from the theory of ideology. To explain the nature of CPD’s publicness, the authors borrow from media theory. Finally, to relate a corporation as an organisation to CPD, the authors borrow from a number of theories within organisational studies. Central to this book is the concept of CPD which is analysed as both a linguistic system and a sociolinguistic system. As a linguistic system CPD is determined by its components (the corporate communicative event, the corporate genre). As a sociolinguistic system CPD is determined by its social meanings in the context of use. Treating CPD as both a linguistic and a sociolinguistic entity, the book attempts to realise the sociolinguistic enterprise through, to use Stubbs’ (1996: 58) formulation of many years back, “finding explanations for human behaviour and formulating a theory of social action”. In this vein the book describes a landscape of multiple structured social relationships (among others, patterns of belief systems and social statuses) between corporations/management and society, corporations/management and CPD, and CPD and society. Structured social relations, as the authors explain, are important because they are largely non-individualistic and non-subjective and, in this sense, give the social world an independence. Thus, the authors argue, structured social relations represent social, symbolic, cultural and economic capital through which corporations and corporate management can use to secure “positions of possibility”. Although decidedly academic, the book is not tiring. On the contrary, through the many well-worked examples of CPD presented in each chapter one might find oneself “caught” in the “text-world model” of corporations and corporate managers, since it is possible to experience the import of the “need for power and achievement . . . to obtain and exercise control over others . . . to translate intention into reality” (p. 167). What is happening here of course, as the authors make clear, is that as a linguistic artefact CPD is the product of the engagement of corporate management with language. As text, however, CPD is irreducible to these elements (corporate management, language): it possesses traits which have a life of their own and becomes a force “that organises both social practices and people’s perceptions of those practices” (p. 32). Perhaps, as rather dramatically put by the authors, “Eventually it is CPD, not the corporation or the corporate management discourse community, that defines stakeholders’ understandings of a corporation and the corporate management discourse community. With time corporate management – the creator of the corporate world – is made an epiphenomenon of that world” (49).

Sections of the book which particularly caught my attention were chapter four (CPD’s Nomenclature), chapter six (The Corporate Management Discourse Community) and part five (Quantitative Analysis). Eventually, I see the material offered in the quantitative analysis as having a potential for teaching corporate communicative intentions in general and in the English language in management courses. CPD’s nomenclature, founded on the corporate communicative event and corporate genre, would provide a very neat framework for this purpose. In conclusion, I commend this book as a work of sound scholarship and synthesis. It enables us to see the most important elements of, and interrelationship between, corporate visibility and corporate vision. It offers new insights into the lastingly relevant issues of the relation between language and society interesting to the corporate managing professionals, linguists and other scholars and students of management and organisational studies. References Stubbs, M. (1996) Text and Corpus Analysis. Oxford: Blackwell Prof. Milica Gacic, Ph.D. Faculty of Teacher Education, University of Zagreb, 10000 Zagreb, Savska 77, Croatia. Email <[email protected]>

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Institut for Economic Promotion,

Austrian Economic Chamber,

Vienna, Austria

T.E.I. Thessaloniki Greece

Department of Tourism Management

FORTHCOMING EVENTS

University of Rijeka Faculty of Tourism and Hospitality Management Opatija, Croatia

Announcement and Call for Papers

19th Biennial International Congress

TOURISM & HOSPITALITY INDUSTRY 2008 New Trends in Tourism and Hospitality Management

May 07–09, 2008 Opatija, Croatia

For more information contact Congress Organizing Committee or Vlado Galicic, Ph.D.,

University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Phone: ++385 51 294 682, telefax: ++385 51 291 965, e-mail: [email protected].

www.fhtm.hr/thi2008

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INVITATION

Faculty of Tourism and Hospitality Management in Opatija has pleasure to announce the 19th Biennial International Congress: TOURISM & HOSPITALITY INDUSTRI 2008: New Trends in Tourism and Hospitality Management. The main objective of the Congress is to bring together scientists and practitioners from Croatia and abroad to exchange their knowledge and present latest achievements in the field of tourism and hospitality management.

CONGRESS PROGRAMME AND TOPICS

The Congress will be organized in plenary sessions with the addresses of invited speakers and in several parallel sessions, including a special one for students.

The topics of the Congress are:

Process of Bologna and lifelong learning in the hotel and tourism industry: Theoretical framework. World trends and experience of developed tourist countries. Specific qualities of the education for tourism and hotel industry. Implementation of the “Bologna process” in the area of management in the hotel and tourism industry. Implementation of the concept of longlife learning in the hotel and tourism industry. New methods and techniques improving the education system. Management of the product life cycle and competitiveness on the tourist market: Trends in the hotel product design and supply (promotion, organization, gastronomy supply, information and communication technologies). Trends in the design of the destination tourist product (specific qualities, organization structure, management, partnership, eco-approach). Quality and competitiveness of the tourist product. Concept, assessment and evaluation of the structural components in the tourist productlife cycle. Value chain in the design of the tourist product. Public-private partnership in achievement of competitiveness. Renewable energy sources in the development of the hotel and tourism industry: Legislation, standards and conventions in the area of renewable energy sources. World experience in the implementation of renewable energy sources. Energy in the concept of environmental protection and improvement. Types and forms of renewable energy sources. Energy in the hotel and economy in the energy consumption. Energy on the level of tourist destination and potential of consumption of renewable energy sources. Economic effects in implementation of renewable energy sources.

CALL FOR PAPERS

You are cordially invited to submit abstracts (not more than 250 words na 1-6 key words), written in English on e-mail

[email protected].

In case of a multiple author abstract, please indicate which author will be the correspondent. Submissions will be refereed through a double-blind review process. The accepted papers will be published in the Congress Proceedings available at the Congress. The students are also encouraged to submit an abstract on any aspect including the Congress topics. The Organizing Committee has also a pleasure to announce the awards for the best Ph.D. and M.Sc. theses defended in the period between the two conferences, as well as the best student’s work presented at the Congress. Candidates are invited to submit their on-line applications, not later than October 1, 2007. The applications will be reviewed. The awarded theses will be presented at the Congress within a special session. The awards will be handed in form an important teaching and especially scientific contribution and also for professional activities performed in the field of tourism and hospitality industry. Faculty of Tourism and Hospitality Management in Opatija is in charge of the criteria definition referring to the mentioned awards. The official languages of the Congress will be English and Croatian.

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INTERNATIONAL PROGRAM COMMITTEE

Zoran Ivanovic, Chair (Croatia); Ahmet Aktas (Turkey); Theoman Alemdar (Turkey); Ivo Ban (Croatia); Mato Bartoluci (Croatia); Constantin A. Bob (Romania); Frank Brück (Austria); Carlos Cândido (Portugal); Evangelos Christou (Greece); Muris Cicic (Bosnia and Hercegovina); Sanda Corak (Croatia); Ante Dulcic (Croatia); Georgi Georgiev (Bulgaria); Marian Gúcik (Slovakia); Ivanka Avelini Holjevac (Croatia); Elizabeth M. Ineson (UK); Peter Jordan (Austria); Dobrica Jovicic (Serbia); Ioannis Karamanidis (Greece); Fotis Kilipiris (Greece); Lazar Lazic (Serbia); Hartmut Luft (Germany); Slobodan Malinic (Serbia); Marcel Meler (Croatia); Sofronija Miladinovski (Macedonia); Konrad Misztal (Poland); Chavdar Nikolov (Bulgaria); L'udmila Novacká (Slovakia); Franc Pauko (Slovenia); Harald Pechlaner (Austria); Milena Persic (Croatia); Stevan Popovic (Serbia); Darko Prebezec (Croatia); Gordana Rechoska (Macedonia); Ilija Rosic (Serbia); Gabriella Schoier (Italia); Marianna Sigala (Greece); Werner Sperling (Germany); Graham Stone (UK); Nadia Theuma (Malta); Paris Tsarta (Greece); Ada Mirela Tomescu (Romania); Zeljko Turkalj (Croatia); Vesna Vrtiprah (Croatia); Schapour Zafarpour (Austria); Elfrida Zefi (Albania).

ORGANIZING COMMITTEE

Branko Blazevic, Chair; Zoran Ivanovic, Congress Proceedings Editor; Branka Berc Radišić, Zdenko Cerović; Vlado Galičić, Congress Secretary.

IMPORTANT DATES

October 1, 2007 – Abstract submission deadline October 15, 2007 – Abstract acceptance notification December 1, 2007 – Full paper submission deadline January 15, 2008 – Paper acceptance notification March 1, 2008 – Deadline for early payments

REGISTRATION FEES

Early (before March 1, 2008) – 150,00 € Standard (after March 1, 2008) – 200,00 € Students may attend free of change Congress registration fee covers: admission to all Congress sessions, full set of Congress materials and Congress Proceedings, welcome party, lunch and refreshments during the breaks. Payment from Croatia should be made in Croatian kuna to the Faculty of Tourism and Hospitality Management in Opatija on account number: 2360000-1101496052 (ref.: 2921164). Payments for foreign participants should be made on account number: 702000-9150-132344-1891, PRIVREDNA BANKA ZAGREB d.d.

CONGRESS VENUE

The Congress will take place at the five star hotel “AMBASADOR” in Opatija. The nearest airports: Rijeka (41 km), Pula (90 km), Ljubljana (135 km), Zagreb (200 km) and Trieste (105 km).

CONTACT INFORMATION

For questions or additional information, please contact Congress Organizing Committee: - University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija

Vlado Galicic, Congress Secretary Primorska 42, P.P. 97, 51410 Opatija, CROATIA

- Phone: ++385 51 294 682 - Telefax: ++385 51 291 965 - E-mail: [email protected] - www. fthm.hr/thi2008

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REVIEWERS Ahmet Aktaş, Ph.D., School of Tourism and Hotel Management, Akdeniz University, Antalya, Turkey Branko Aslimoski, Ph.D., University Of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia Theoman Alemdar, Ph.D., Bilkent University, Ankara, Turkey Alina Bădulescu, Ph.D., University of Oradea, Faculty of Economics, Romania Branko Blazevic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Đuro Benic, Ph.D., University of Dubrovnik, Croatia Zeljko Bjeljac, Ph.D., Geographical Institute Jovan Cvijić, Novi Sad, Serbia Constantin A. Bob, Ph.D., Academy of Economics Studies, Bucharest, Romania Igor Brajdic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Evangelos Christou, Ph.D., University of the Aegean, Greece Zdenko Cerovic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Dolores Miskulin Cubric, B.Sc., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Renata Fox, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Milica Gacic, Ph.D., University of Zagreb, Faculty of Teacher Education, Croatia Risto Gogoski, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia Georgi Georgiev, Ph.D., Southwest University «Neofit Rilski», Faculty of Economics, Blagoevgrad, Bulgaria Marian Gúcik, Ph.D., University of Banska Bystrica, Faculty of Economics, Banksa Bystrica, Slovakia Dogan Gursoy, Ph.D., Washington State University, USA Ivanka Avelini Holjevac, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Ritva Hoykinpuro, Ph.D., Lahti Polytechnic, Fellmanni Institute for Hospitality & Tourism, Lahti, Finland Zoran Ivanovic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Cvjetan Jardas, Ph.D., University of Rijeka, Faculty of Economic, Croatia Peter Jordan, Ph.D., Austrian Institute of East and Southeast European Studies, Wien, Austria Dobrica Jovicic, Ph.D., Faculty of Mathematics and Natural Sciences, University of Nis, Serbia Rade Knezevic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Ioannis Karamanidis, Ph.D., Technological Educational Institution of Thessaloniki, Greece Hanan Kattara, Ph.D., Alexandria University, Faculty od Tourism and Hotels, Alexandria, Egypt Slavka Kavcic, Ph.D., Faculty of Economics, Ljubljana, Slovenia Fotis Kilipiris, Ph.D., Technological Educational Institute of Thessaloniki, Greece Michael Koniordos, Ph.D., Greek Open University, Athens, Greece Lazar Lazic, University of Novi Sad, Faculty of Mathematics and Natural Sciences, Department of Geography, Tourism and Hotel Industry, Serbia Silio Rigatti Luchini, Ph.D., Universita degli studi di Padova, Padova, Italia Hartmut Luft, Ph.D., Fachhochschule Wilhelmshaven, Deutschland Slobodan Malinic, University of Kragujevac, Faculty of Economic, Serbia Dragan Magas, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Josef Mazanec, Ph.D., Wirtschaftsuniversität Wien, Austria Sofronija Miladinoski, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia Konrad Misztal, Ph.D., University of Gdańsk, Institute of Maritime Transport and Seaborne Trade, Sopot, Poland Edna Mrnjavec, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia

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Dieter Müller, Ph.D., University of Umeå, Department of Culture Geography, Umeå, Sweden Marin Neshkov, Ph.D., Varna University of Economics, Bulgaria Chavdar Nikolov, Ph.D., Southwest University «Neofit Rilski», Faculty of Economics, Blagoevgrad, Bulgaria Ľudmila Novacká, Ph.D., University of Economics in Bratislava, Faculty of Commerce, Slovakia Giovanni Panjek, Ph.D., Universita degli studi di Tireste, Facolta di Economia il Preside, Trieste, Italia Franc Pauko, Ph.D., Faculty of Economics & Business Maribor, Slovenia Harald Pechlaner, Ph.D., Universität Innsbruck, Austria Milena Persic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Boris Pirjavec, Ph.D., University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia Stevan Popovic, Ph.D., Faculty of Tourism, Hospitality and Trade - Bar, Montenegro Ljiljana Prangoska, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia Rayka Presbury, Ph.D., University of Western Sydney, Penrith South, Australia Branka Berc Radisic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Franjo Radisic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Goran Radovic, Ph.D., Faculty of Tourism and Hopsitality, Kotor, Montenegro Gordana Reckoska, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia Dragan Roller, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Ilija Rosic, Ph.D., University of Kragujevac, Serbia Rudolf Ruzicka, Ph.D., WIFI Österreich, Austria Odysseas Sakellaridis, Ph.D., University of the Aegean, Greece Józef Sala, Ph.D., Cracow University Of Economics, Faculty of Management, Poland Alexey Sesyolkin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia Marianna Sigala, Ph.D., University of the Aegean, Greece Lidija Simonceska, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia Barbara Sporn, Ph.D., Wirtschaftsuniversität Wien, Austria Vladimir Stipetic, Ph.D., HAZU, Zagreb, Croatia Snezana Stetic, Ph.D., University of Novi Sad, Serbia Jan Telus, Ph.D., Wyzsza Szkola Zarzadzania Gospodarska Regionalna i Turystyka, Kielce, Poland Ada Mirela Tomescu, Ph.D., University of Orade, Economics Faculty, Oradea, Romania Paris Tsarta, Ph.D., University of the Aegean, Chios, Greece Vladimir Veselica, Ph.D., University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia Milota Vetráková, Ph.D., Faculty of Economics, Matej Bel, Banská Bystrica, Slovakia Vesna Vrtiprah, Ph.D., University of Dubrovnik, Croatia Vidoje Vujic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Ivan Vukovic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Irena Zavrl, Ph.D., Faculty of Economic Ljubljana, Slovenija Shapour Zafarpour, Ph.D., Wirtschaftsuniversität Wien, Austria

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Josef Zelenka, Ph.D., University of Education Hradec Kralove, Faculty of Management and Information Technology, Czech Republic Elfrida Zefi, Ph.D., University «Fan S. Noli», Korça Economic Faculty, Korçë, Albania Igor V. Zorin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia Rudolf O. Zucha, Ph.D., Universität Wien, Austria

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NOTES FOR AUTHORS

Manuscripts should be sent to the Editor, Professor Zoran Ivanovic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Primorska 42, PO Box 97, 51410 Opatija, Croatia; e-mail: [email protected] Papers are subject to the anonymous judgement of and classification in one of the following categories by two independent referees: Original scientific papers, Preliminary communications, Subject reviews, Conference papers, Technical papers. Papers without positive classification of the referees will not be published in the journal Tourism and Hospitality Management. Manuscripts (text with all supplements) should be written in the English, German or Croatian language using Microsoft Word, and submitted on floppy disc or by e-mail (plus one printed version). English language article titles, abstracts, and keywords are essential. English language cited references are also recommended. The scope of submitted text should not exceed more than 30 000 characters (15 pages), which are typed according to the below instructions. Text should be written in neuter gender, concisely and in correct orthography. The author is responsible for language-edit. Emphasis should be on results, their interpretations and conclusions, and for already known data, experimental methods and apparatus, sources should be mentioned. Text: Font: Times New Roman, size 10; Line spacing: single; Use A4 Format (297x210 mm); Page Setup: Margins: top 5 cm, bottom 5 cm, left 4.4 cm, right 4.2 cm, gutter 0 cm (Layout: header 4 cm, footer 4 cm). Manuscript should be arranged in the following order of presentation. First sheet: Author’s name (the name and surname of all authors), their titles, name and full addresses of their institutions, full postal address, telephone and fax numbers, e-mail address. Title of the paper should be concise and informative and written in English language. Abstract and keywords: Abstract written in English language (between 110 and 150 words with 4-6 keywords pertinent to the central theme). Second sheet: Title, Abstract and keywords, main body of text, list of references should be written in the language of the manuscript. Footnotes In text, footnotes are marked with superscripted numbers at the end of the sentence after full stop. At the bottom of the page books and magazines are quoted as follows; Examples: Books: 1. Michael C. Hall, Tourism Planning: Processes and Relationships, Longman, New York, 1999, p. 25. Magazines: 2. Howard Hughes and Danielle Allen, “Cultural tourism in Central and Eastern Europe: the views of

‘induced image formation agents’”, Tourism Management, Vol. 26, No. 2, (2005), pp. 173-183. References: The Reference list, placed at the end of the text, in alphabetical order of authors. Examples: Books: 1. Hall, C. M., Tourism Planning: Processes and Relationships, Longman, New York, 1999. Magazines: 2. Hughes, H. and D. Allen, “Cultural tourism in Central and Eastern Europe: the views of ‘induced image

formation agents’”, Tourism Management, Vol. 26, No. 2, (2005), pp. 173-183. Figures, graphs, tables: Enclosures to the text (figures, graphs, tables) should be prepared in this page set-up. Figures, graphs and tables should be numbered consecutively in Arabic numerals and given a suitable caption.

Volume 13 Number 2 June 2007

TOURISM AND HOSPITALITY MANAGEMENT Contents

Research Papers

CROATIAN TOURISM AND EU ACCESSION 437 Ivo Kunst

RESEARCHING THE TOURIST ATTRACTIONS AND THE ATTRACTIVENESS OF THE VALLEY OF THE RIVER MREZNICA 459 Rade Knezevic

POSSIBILITIES OF MUSIC HERITAGE TOURIST VALORIZATION – AN EXAMPLE OF ISTRIA 469 Aleksandra Krajnovic, Ivana Paula Gortan-Carlin

PORTS IN DEVELOPMENT OF MARITIME TOURISM – PROBLEMS AND CHALLENGES. THE CASE OF THE POMERANIAN REGION

483

Joanna Miotke-Dzięgiel

THE ROLE OF THE ONLINE ADVERTISEMENT FOR THE CONTEMPORARY ENTERPRISE 493 Adam Salomon

BENCHMARKING HUMAN POTENTIAL 499 Vidoje Vujic, Slobodan Ivanovic

DEVELOPMENT OF EUROPEAN UNION AND JOINING PERSPECTIVE OF CROATIA 507 Ivan Vukovic

POSSIBILITIES FOR DEVELOPING CULTURAL TOURISM IN THE MUNICIPALITY OF MOSCENICKA DRAGA – THE CASE OF HISTORICAL TRAILS

515

Elena Rudan

Book Reviews 523

Forthcoming events 525

Reviewers 529

Institut for Economic Promotion,

Austrian Economic Chamber,

Vienna, Austria

T.E.I. Thessaloniki Greece

Department of Tourism Management