WTTC report 2007 - Ada Bojana

The technique of satellite accounting is designed to measure the new service sectors, andthe Tourism Satellite Account (TSA) model, developed by WTTC/Oxford Economics forMontenegro in 2004, has been successfully adopted by the government. It is frequently quotedand has served its purpose of informing all levels of government, industry and other stakeholdersof the full economic and social impact of Travel & Tourism.WTTC urges the Government of Montenegro to assume responsibility for developing a TSAon an annual basis to help ensure that adequate data is available to factor Travel & Tourism intoeconomic and employment strategies.Importance of demand- and supply-side researchThanks in large part to the financial and technical support of donor agencies and NGOs, anumber of different studies and surveys have been carried out over the past few years. Theseinclude the recent assessment of human resource needs in Travel & Tourism, undertaken by theGerman Organization for Technical Cooperation (GTZ), and a study on the country’s cruise/yachting potential, also conducted by GTZ. The main objective of these studies is to identifyopportunities for, and threats to, tourism growth, as well as to develop guidelines on the bestway of tapping the potential.Apart from these supply-side studies, little research has been carried out by the Ministry ofTourism and Environmental Protection to determine actual market needs.In order to optimize forward planning and anticipate necessary changes to tourism supply,both government and the industry need to monitor trends in past and current Travel & Tourismdemand from key source markets and market segments. This will also help identify threats togrowth, as well as new growth opportunities.INFRASTRUCTUREAn infrastructure capable of sustaining the projected growthThe huge investments in Travel & Tourism since the beginning of the decade have stimulatedrapid growth in demand, with the result that infrastructure and utilities have become strained indifferent parts of the country, and especially in the coastal zone. The inadequacy of the existinginfrastructure is of course in no small part due to the sustained period of neglect and starvationof investment during the years of the Balkan conflict.Furthermore, given the sharp increase in arrivals in the region, transport infrastructure– roads, the railway network and airports – are stretched and struggling to keep up with the paceof development of hotel capacity. This poses a very real challenge, as infrastructure is integral tothe overall tourist experience and could therefore have a major impact on return visits.It is also possible that some of the Greenfield sites that have been put out to tender alongthe coast would impose a further strain on infrastructure, given the additional planned capacitythe related hotel/resort developments would bring to the coastal region.It is critical for the future of Montenegro’s Travel & Tourism industry that no furtherdevelopment is allowed to go ahead – particularly the construction of low economic impact secondaryresidences/holiday apartments – without the necessary infrastructure being put in place beforehand.WTTC would therefore endorse the initiative of the Ministry of Tourism and EnvironmentalProtection to consider a construction moratorium on such developments in order to allow for theinfrastructure to ‘catch up’ with the development of accommodation and other tourist facilities.The government should give priority in terms of project approvals to hotel resorts which havethe greatest potential for year-round occupancy, thereby generating the best economic potential. Inview of the fact that the government accounts are currently so healthy, and its level of debt is solow, now is an opportune time to make nfrastructure investments and to support the private sectorinvestments taking place. Travel & Tourism will not be the only industry or sector to benefit.Infrastructure improvements and modernization will provide a fillip for all regional development,as well as enhancing the quality of life and well-being of the Montenegrin people.It is critical for the futureof Montenegro’s Travel& Tourism industry thatno further developmentis allowed to go aheadwithout the necessaryinfrastructure being putin place beforehand.39