Start of project in the field of tourism – “Technical Assistance to Support the Tourism Industry in Bosnia and Herzegovina"

 

The official start of the project "Technical Assistance to Support the Tourism Industry in Bosnia and Herzegovina", funded by the EU, was solemnly marked in Sarajevo today. The ceremony was attended by representatives from the Ministry of Foreign Trade and Economic Relations of BiH, representatives of the competent entity ministries of tourism , the EU representatives , directors of tourist organizations and communities and the consulting team in charge for the implementation of this project.

"Technical Assistance to Support the Tourism Industry in Bosnia and Herzegovina" is the first such project in the Tourism Industry, and its goal is to strengthen the capacity of BiH structures that provide support for tourism at the state, entity and Brcko District level. The project will seek to resolve the challenges that stronger and stronger tourism industry faces and set the foundations for sustainable development of BiH tourism during the country’s preparations for EU membership. Realization of this project, whose planned activities relate to sustainable tourism policy, establishing a strategic framework for the development, strengthening institutions and legal basis for sustainable tourism development, strategy marketing and promotion and development of human resources, will contribute to strengthening the competitiveness of the tourism sector of BiH.

Delegation of the European Union to Bosnia and Herzegovina has signed a contract with GDSI Limited from Ireland. This consulting company, in cooperation with Dikic Consulting Services, Horwath HTL from Croatia and Shannon Development from Ireland, will implement this project. The total value of the project is 2,000,000 KM.

“This is an opportunity to stress the importance of this sector, which is an important force for development of the entire economy of Bosnia and Herzegovina. In support of this, I will give details of the World Tourism Organization where it is stated that the tourist economy generates 5% of world’s GDP, while the tourism sector employs 6-7% of the total number of employees. International tourism is ranked fourth in global exports (after fuel, chemicals and car products). In over 150 countries, tourism is one of the top 5 export sectors in earnings, and in 60 countries, first in terms of export volume. Tourism is one of the main sources of foreign resources in developing and underdeveloped countries", said Mr. Reuf Hadzibegic, Assistant Minister of Foreign Trade and Economic Relations, in his speech today.

In Bosnia and Herzegovina the situation is somewhat different so that (according to the Global Report on competitiveness in tourism by the World Economic Forum in 2011) the share of the tourism industry in the GDP of Bosnia and Herzegovina is about 2.8%, while the participation of employees in tourism, according to the same sources, is 2.3% of the total number of employees.

If we look at tourism as an industry that involves a broader approach to tourism that includes indirect effects of activities connected with tourism (trade, banking, financial services, entertainment, construction, real estate, sports, culture, etc.), then the data are somewhat more favorable, so that the share of tourism in GDP is 10.2% and the share in employment is 8.3%.

"We believe that BiH has the prerequisites to rectify this situation and ensure that the tourism sector occupy a significant place in the BiH economy. Despite all the adverse events in the previous decade (countless natural disasters, global pandemic influenza and the worst economic crisis after the Great Depression), we can say that the tourism sector in the last decade marked a growth, so that the number of tourist arrivals in 2010 amounted to 935 million, which means close to 250 million more tourists than in 2000. I would like to mention another trend in the tourism sector on a global scale, and that is the demand for new unexplored destinations, which represents a great opportunity for the tourist sector in BiH. Today, the total number of tourist arrivals in the world, nearly half belongs to developing countries", said Mr. Hadzibegic.

The tourism sector has the potential to create new jobs and it is a driving force of the local economic development. It is estimated that one post in the main tourism industry creates an additional one and a place in related tourist activities. Realization of this project should contribute to strengthening the sector and create a good basis for further development of BiH tourism.