TSA FOR CROATIA Croatia’s up to date experiences

and future plans

institut za turizaminstitute for tourism

Neven Ivandić, Institute for TourismZrinka Marušić, Institute for Tourism

REPUBLIC OF CROATIAMinistry of sea, tourism, transport and development

CEI COOPERATION ACTIVITYDolenjske Toplice, 17th – 18th October, 2007

17th – 18th October, 20072 Neven Ivandić, Zrinka Marušić

Content

• Highlights of Croatian Tourism

• Goals of Implementing TSA in Croatia

• Approach to TSA Development

• Outcomes of TSA Feasibility Study for Croatia:– Diagnosis of System of Tourism Statistics– Scenario of TSA Development– Action Plan

• Current State of TSA Development

• Open Questions

17th – 18th October, 20073 Neven Ivandić, Zrinka Marušić

Highlights of Croatian Tourism

2006• 10 million arrivals in statistically registered

accommodation facilities

• 53 million overnights in statistically registered accommodation facilities; – 96% overnights on the Adriatic coast– 89% overnights by foreign tourists

• 200 thousand beds in hotels and similar; 400 thousand in camps; 400 thousand in households/private accommodation

• 50 marinas with more than 15 thousand moorings (mainly for tourism purpose)

• 4% compound annual growth rate in 2001-2006 period

17th – 18th October, 20074 Neven Ivandić, Zrinka Marušić

Foreign passengers, cross border traffic; 2005, in million (CBS) entry exit Total 45,5 43,9 Road 42,9 41,3 Railway 0,4 0,4 River 0,0 0,0 Maritime 0,9 0,9 Air 1,3 1,3

Structure of foreign passengers, border survey; 2005, in % (CNB)Same day visitors 54,6 Visitors 26,4 Visitors in transit 28,2 Tourist 45,4 Paid accommodations 25,4 Non paid accommodations 20,0

Accommodation 2004 2005

Paid 3.787 3.887

Non paid 1.422 1.740

Same day visitors 362 424

Total 5.571 6.051

Inbound tourism consumption by type of accommodation; in million EUR (CNB)

Highlights of Croatian Tourism

Domestic and outbound tourism consumption; 2004 (IT, survey on tourism activity of Croatian citizens) Domestic Outbound Total number of trips (million) 22 4

Same day trips 14 2 Overnight trips 9 2

Avg. length of stay (days) 2 3 Same day trips 1 1 Overnight trips 4 4

Avg. daily consumption (EUR) 30 72 Same day trips 39 91 Overnight trips 26 68

Total consumption (m EUR) 1,378 772 Same day trips 535 176 Overnight trips 844 596

17th – 18th October, 20075 Neven Ivandić, Zrinka Marušić

Highlights of Croatian Tourism• Inbound tourism consumption 5,6 billion EUR in 2004,

and 6,1 billion EUR in 2005

• Domestic tourism consumption (15+ citizens) 1,4 billion EUR in 2004

• Outbound tourism consumption (15+ citizens) 0,8 billion EUR in 2004

• Internal tourism consumption 7 billion EUR in 2004, approximately 7,5 billion EUR in 2005

• Unofficial economy in tourism is not estimated yet

• Unofficial economy in Hotel and restaurant sector in 2004 is estimated at approximately 35% of registered activity within the sector (CBS)

17th – 18th October, 20076 Neven Ivandić, Zrinka Marušić

Goals of TSA implementation

• Thorough analysis of tourism activity

• Monitoring of monetary indicators

• Determining inter-sectoral relationships of tourism

• Evaluating the importance of tourism

• Tourism policy formulation

17th – 18th October, 20077 Neven Ivandić, Zrinka Marušić

Approach to TSA development

• Basic methodological framework: – Tourism Satellite Account: Recommended Methodological

Framework; OECD, European Commission, United Nations, World Tourism Organization (2001)

– European Implementation Manual on Tourism Satellite Accounts; EUROSTAT (final draft, 2002)

– New developments

• Principles:– Inter-institutional but also inter-sectoral cooperation– Flexibility in usage of data and data-sources– Step by step approach

17th – 18th October, 20078 Neven Ivandić, Zrinka Marušić

Inter-institutional cooperation• Key success factor

• Inauguration of Inter-institutional committee for TSA development process which consists of representatives from:

– Ministry of Sea, Tourism, Transport and Development– Croatian National Bank– Central Bureau of Statistics– Institute for Tourism

• Institute for tourism in charge for developing feasibility study and experimental TSA

• Institute for tourism has formed inter-institutional and multi-discipline technical team for development of TSA. The team consists of the representatives from:

– Institute for Tourism– Ministry of Sea, Tourism, Transport and Development– Central Bureau of Statistics– Croatian National Bank– Economic Institute Zagreb– UNWTO expert

17th – 18th October, 20079 Neven Ivandić, Zrinka Marušić

Inter-institutional team

Tourism activityin Croatia

Description and diagnosis

of tourism statistics

Tourism products and activities

Analysis of possible scenarios

for TSA development

Inter-institutional committee

for TSA development process

Selection of optimalscenario

Development of Action Plan

Experimental TSA

Feasibility study approach

17th – 18th October, 200710 Neven Ivandić, Zrinka Marušić

Outcomes of Feasibility Study

Diagnosis of tourism statistics

• System of tourism statistics (STS) not fully compliant with TSA methodological framework

• The main shortcomings of STS from TSA perspective:

– absence of some of the required data (domestic tourism, structural statistics of important sectors),

– inappropriate methodology of some surveys (inbound tourism)

– partly non-updated data (I-O tables)

• STS, with appropriate adjustments, provides basis for development of experimental and provisional TSA in short term

• Development of I-O tables is one of the main prerequisite for final TSA tables

17th – 18th October, 200711 Neven Ivandić, Zrinka Marušić

Outcomes of Feasibility Study

Required improvements of STS:

• Establishing new research/surveys:

– Domestic and outbound tourism demand and consumption

– Survey of travel agencies and main passenger transport providers (Croatia Airlines, Jadrolinija, Croatian Railway)

• Adjustment of existing surveys:

– Inbound tourism consumption: (1) solving the problem of total population and (2) adjustment of questionnaire from TSA perspective

• Updating of existing research/surveys:

– Development of I-O tables on more detailed level

17th – 18th October, 200712 Neven Ivandić, Zrinka Marušić

Scenario for TSA development

Scenario A:Development of ExperimentalTSA Tables

Existing data sourcesNew surveys:• Domestic and outbound demand and consumption• Survey of few travel agencies and the most important passengers’ transport providersAdjustment:• Existing information from National Accounts

Scenario B:Development of Provisional TSA Tables

Existing data sources including surveys under scenario ANew surveys:• Survey of travel agencies and passengers’ transport providersAdjustment: • Inbound tourism consumption • Existing information from National Accounts

Scenario C:Development of Final/Optimal TSA Tables

Existing data sources including surveys under scenario A and BNew surveys:• I-O tables

Scenario D:Development ofFull set of TSA Tables

Existing data sources including surveys under scenario A, B and CNew surveys:• Tourism ratio by sectors• Employment, investment and collective consumption

17th – 18th October, 200713 Neven Ivandić, Zrinka Marušić

Action plan

Scenario A:Development of Experimental TSA Tables

2007 Tables for 2005Tables: 1, 2, 4, 5&6

Scenario B:Development of Provisional TSA Tables

2008 Tables for 2006/2007Tables: 1, 2, 3, 4, 5, 6, 10

Scenario C:Development of Final/Optimal TSA Tables

2009 – 2010 and further on

Periodical production in two-year intervalTables: 1, 2, 3, 4, 5, 6, 10

Scenario D:Development of Full set of TSA Tables

Not in foreseen period

All tables

17th – 18th October, 200714 Neven Ivandić, Zrinka Marušić

Current State of TSA Development

• Work on Experimental TSA tables started

• Two new surveys have been conducted:

– Domestic and outbound demand and consumption

– Survey of few travel agencies and the most important passengers’ transport providers

• Joint work on Tables 5&6 between Institute for Tourism and CBS – National Accounts

• Joint work with UNWTO expert

• Results expected by March 2008

17th – 18th October, 200715 Neven Ivandić, Zrinka Marušić

Open questions

• Unofficial economy within TSA methodological framework:

– Linking demand data (survey of visitors; non-registered flows included) and supply data (survey of tourism services providers; not all activities reported)

• Nautical tourism within TSA methodological framework:

– Character of accommodation services in nautical tourism, i.e. costs of mooring in marinas and renting costs as well as tourism flows related to overnights out of marinas and ports

17th – 18th October, 200716 Neven Ivandić, Zrinka Marušić

Thank your for your attention!