1. Tourism Development and its role in Local Economic Development (LED) Berman Group www.bermangroup.cz September 2011 www.bermangroup.cz

2. Tourism Development (TD) Tourism is one of the fastest growing industries worldwide in past two decades TD has multidisciplinary character and connecting different economical sectors TD has positive influence mainly to a traffic infrastructure, construction industry, banking etc. In terms of financial international trade turn over is located on the third place (after petroleum and cars industry) Economic contribution of tourism captures Tourism Satellite Account (TSA)

3. A Tourism Satellite Account Is a statistical accountant framework in the field of tourism and measures the goods and services according to international standards of concepts, classifications and definitions which allow valid comparisons from country to country in a consistent manner A complete TSA contains detailed production accounts of the tourism industry and their linkages to other industries, employment, capital formation and additional non-monetary information on tourism

4. Tourism Development (TD) Build infrastructure contributes to a LED and urban infrastructure recovery Creates new jobs TD can be considers as a polarize, induce or neutral sector in the region

5. Tourism Development (TD) Polarize (driving) effect – direct impact on social and regional economic development Induce effect – indirect impact on social and economic regional development (stimulation of regional development) Neutral effect - no direct impact on social and regional economic development (only important for the region supplement)

6. Main economic benefits of tourism Better balance of payment by state through incoming tourism (invisible export) Through taxes and fees increasing local and state budget Support of development of small and medium size enterprises Increasing of employment Stimulation area of investment in local infrastructure ( water supply, sewerage, electrification, road and rail network etc.)

7. Benefits of tourism Economic aspects (creation of new jobs, a source of capital, increasing competitiveness) Social aspect (improvement of facilities and level of public services, revival of the folklore and local tradition etc. ) Environmental aspect (ensuring of environmental stability)

8. Why Tourism in your region? The Economic contribution of tourism to the region - creation of added value of purchased goods and services in the region Services are: - at primary level (accommodation, catering, rental, transport etc.) - at secondary level (above standards and additional service)

9. Costs associated with TD Infrastructure costs Energy costs Cost of waste disposal

10. Tourism development (TD) Tourism – not only an opportunity for the region, but also a threat (especially in the sphere of social and environmental). Opportunity – chance you must use ! Threats – challenges to be avoided !

11. Investment opportunities in tourism Development of business possibilities in the area of basic infrastructure (accommodation and catering equipments ) Development of tourism services Building and operating of sports and cultural facilities Operating of leisure activities etc.

12. How to choose appropriate destination for investment? Attractiveness of the area / destination- proportion of offer and demand - primary viewpoint Preparedness of the area / destination – secondary viewpoint ( industrial zones, brownfields etc.)

13. Tourism trends Major Tourism mega trends by World Tourism Organization (WTO) 2007: globalization x localization polarization of tourist tastes (comfort-based demands versus the adventure or education oriented) the tourist’s “shrinking world” (various technological advances helps there will be no boundaries to tourism anywhere) electronic technology becoming all powerful fast track travel (passport replaced by the computer reading of hands, ticketless travel, use of smart cards etc.) customers will “can the shots” (increasingly travel and tourism will be a buyer’s market with the use of technology)

14. destination as “fashion accessory” (monitor the perceptions of destination in the market places to maximize advantage of this) targeted product market development oriented to the three E-s: entertainment, excitement, education (theme-based products) more destination focus on “image” everyone chasing the Asian tourist consumer led campaigns for sustainable tourism increased socio-environmental consciousness versus the urge for travel consumption

15. Key types of tourism Leisure tourism: describes tourism for the main purposes of recreation and leisure (residential vacation and also day trips) – adventure tourism, ecotourism, heritage tourism, wine tourism, packaged beach vacations. Health tourism: traveling for health reasons. This includes visits to spas and health and fitness centers, as well as traveling to receive treatments which require more specific medical intervention such as cosmetic or medical surgery. Educational/study tourism: traveling to attend an academic institution in order to gain qualifications or participation in a tour for the purposes of learning. Business tourism: traveling to attend an activity or event associated with business interests. A key component is the MICE sector: meetings, incentives, conventions and exhibitions.