Assessment of tourism development with respect to

territorial cohesion

Pál Szabó PhD. (Pannon.Elemző Kft.)

I. Objectives of assessment

II. Context of policy

III. Development on national level

IV. Development of Health Tourism in Eastern Hungary

V. Development of the Lake Balaton Resort Area (LBRA)

Content

Viewpoints of assessment (cohesion):1. Assessment of development objectives2. Assessment of developments3. Assessment of development actors Suggestions

7 Regional Operative Programme (ROP) Tourism development: touristic attractions, accomodation, touristic destination

management (TDM)

2724 applications, 983 successful applicationsfinancial framework: 300 billion HUF, demand: about 407 billion HUF,awarded amount: about 213 billion HUF (08.2012)

Three dimensions of assessment:- national level- health tourism in Eastern Hungary- Lake Balaton Resort Area

Objectives of Assesment

• Hungarian Tourism Act is not accepted yet• the new Hungarian tourism development strategy• the new National and Regional Development Plan: importance of

tourism development, priority for health tourism

Cohesion of objectives

Context of Policy

The objectives of ROP are identical with the tourism development objectives of Hungary

Seven ROP – toruism development objectives :- vertical and horizontal cohesion among the objectives- main sector preferences: cultural t., health t., etc.- quality accomodation, increasing the number of TDMs – common

objectives- weak regional / local preferences- various vertical and horizontal coordinations

important to clarify the national strategy need to strengthen the vertical partnership (planning, management) need for spatial aspects of tourism development objectives

National level – ROP touristic development 1

Share of resources for tourism development measures :- Attraction development (about 75%)- Accomodation development (about 20%)- TDM (about 5%)

Regional differences in the share of tourism support

National level – ROP touristic development 2

Fejlesztési forrásmegoszlás1,00000000e+010

5,00000000e+009

1,00000000e+009

Attrakció-fejleszésSzálláshely-fejlesztésTDM-ek fejlesztése

10 md Ft

500 millió Ft

100 millió Ft

Fejlesztésiforrásmegoszlás

Egy lakosra jutó kifizetések .

19 000 - 23 000 Ft (2)15 000 - 18 999 Ft (3)11 000 - 14 999 Ft (3)

7 000 - 10 999 Ft (4)3 000 - 6 999 Ft (8)

National level – ROP touristic development 3

Attraction development:

- dominance of cultural, health and (!) ecotourism

- few projects: territorially complex projects, complex experience

need to define, need for support

- there was no prominent attraction development

need for prominent attraction development

- less new developments, more further developments of existing

attractions

enhancing project generation, promoting innovations

- spatial aspects were not always applied

enforcing territorial cohesion (e.g. evaluation of applications -

spatial perspective)

Accomodation development:

- quality, in accordance with national objectives- one-sided, market tension- important: ex-ante evaluation

- territorial concentration is unchanged new developments: serious professional reasons; connected to

tourist attractions

- need for own resources

- territorial differences enforcing spatial aspects (regional, local) territorial cohesion: coordination of attraction and

accomodation development

National level – ROP touristic development 4

Touristic Destination Management (TDM):

- increasing the number of TDMs, according to national objectives

- some problems in the development process but the system became operational (registration etc.)

- little support but positive and perspective direction

- established: in traditional touristic areas, antecedents

- many questions: financing, the role of local authorities

need for legal clarification

enhancing: project generation

National level – ROP touristic development 5

- most support – enterprises (about half of the applications); local governments, state organizations: priority projects

- local governments – contractor or regulator?; profit or storing value?; local, territorial effects of developments

- 10% of project owners withdrew – effect of the crisis (?)

- weak horizontal partnership (lack of relationships, lack of confidence, individual interests, lack of organizing force etc.) – support motivates...

- appreciation: TDMs

applications for specific groups support for multi-party projects

National level – development actors

Critical element

- faulty project planning (form, location, demand estimates) - the number of visitors is less than expected

- sometimes rigid appraisal rules of tenders, selection criteria (slippage of projects)

- effects of economic crisis!

required: more realistic estimation of demand need for a flexible, but rigorous application evaluation

system

National level - Financial Sustainability

Development of Health Tourism in Eastern Hungary

Health Tourism in Eastern Hungary:- 205 applications, 31 billion HUF- 45 attractions, 26 accomodation, 3 TDM- territorial concentrations- Health Tourism: along strategy, but differences, problems- synergy: transport, urban regeneration, health development

Nyertes pályázatok száma

10

5

1

kmo_telep_poly by nyertes_db

nyertes pályázattal rendelkezõ tel. (44)nyertes pályázattal nem rendelkezõ tel. (1209)

A leszerzõdött összeg nagysága

3 milliárd Ft

2 milliárd Ft

300 milliárd Ft

kmo_telep_poly by _32_Leszerzõdött_összeg

szezõdéssel rendelkezõ tel. (36)szerzõdéssel nem rendelkezõ tel. (1217)

300 millió Ft

MakóMórahalom

Nyíregyháza

Cserkeszőlő

Balmazújváros

Mezőkövesd

Berettyóújfalu

Bogács

Development of Health Tourism in Eastern Hungary- Spas

Spa development – local survey (8):

- about 8.5 billion HUF (EU support: 4.1 billion HUF)

- new spa (Makó), renovation, expansion, waterparks

- high quality development

- related developments in the settlements

(not qualified medical sites yet; further development related to local

destinations)

- failure of accomodation development

- variable number of visitors; time concentration slightly resolved

- competition for domestic guests; what about foreigners?

- project is considered a success locally: confidence

- return of investment?

Development of Health Tourism in Eastern Hungary- Results

health tourism means more than creating a spa

stronger cooperation with health development

clarification: private and public health care

quality assurance (therapeutic effect), accreditation!

development of the classification system

support of the therapy place (complex medical forms and

supporting units etc.)

territorial harmony (spatial dispersion /similar profiles/ -

concentration /other profiles/; related accommodation -

appropriate standard; fit in the environment etc.)

Development of Health Tourism in Eastern Hungary- Suggestions

Development of the Lake Balaton Resort Area- Characteristics

Lake Balaton Resort Area (touristic region)• 179 settlements• 274 000 inhabitants, 240 000 holiday

home owners• 20% of guest nights (4,3 million)

• priority in development planning (legislations)

But!• fragmented developments

(in 3 regions and 3 ROPs)• Lake Balaton Development Council

(LBDC) its role as a coordinator!

Objectives:- extension of the season- reducing territorial concentration- strengthening quality tourism- sustainable tourism

Development of the Lake Balaton Resort Area- Objectives, tools 1

Developments:• 381 applications• 153 successful applications• 18 billion HUF support

- little touristic support, fragmented, but emphasized in ROPs- successful applications, low-volume, results are small- complex developments are not typical- horizontal partnerships are not really enforced

Attractions:cultural, holiday, water tourism – extension of the season (as well)

Accomodation:quality development, but of low-volume, support is important,private accomodation left behind

TDM (28% of the total in Hungary):antecedents, varied output, successful

Related developments: transport infrastructure developed,but there are deficiencies

- extension of the season opening period is effective

- territorial concentration did not decrease- quality tourism became more significant

A leszerzõdött összeg nagysága

3 milliárd Ft

2 milliárd Ft

300 millió Ft

bku

szerzõdéssel rendelkezõ település (41)szerzõdéssel nem rendelkezõ település (138)

300 millió Ft

Development of the Lake Balaton Resort Area- Objectives, tools 2

éééé

Development of the Lake Balaton Resort Area- Projects

Eight attraction developments – local survey:• objective: extension of the season• good project ideas• new / further development• preliminary market survey (demand, competitors)• fit into strategy• usually good developments• new ones - visitors• varied communication• good accessibility• appropriate related infrastructure• varied connections with other developments• fit into environment• varied (bad) connections with competitors

Development of the Lake Balaton Resort Area- Projects, results

special status is to be taken into account support according to touristic importance support for featured attractions integrated tourism development in the region strenghten the coordination of developments (LBDC) project generation developments: seasonal and season extension reducing territorial concentration, complex projects

(connecting coastal and interior developments) quantity and quality tourism (e.g. private accomodation) transport development marketing

Development of the Lake Balaton Resort Area- Suggestions

Thank you for your attention!