Montenegros Tourism Satellite Account

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MontenegrosTourism Satellite Account

• Goranka Lazovic,
• Ministry of Tourism and Environment
• of Montenegro,
• Slovenia, Dolenjske Toplice
• 17-18th October 2007

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TSA Montenegro case

• Key results are
• - For the fourth consecutive year, Montenegro
  has been ranked by WTTC
• among the worlds top three destinations
  in terms of forecast travel
• tourism growth over the coming decade
• - The contribution to GDP has risen steeply over
  the past three years as the
• growth in the number of visitor, their
  spending and the investment
• spending to support them has exceeded
  expectations
• - Further rapid growth is expected over the
  coming decade, with the
• contribution of travel and tourism set to
  rise to over 27 of GDP while
• employment increases to more than 40,000
  persons (25 of total
• employment)
• - Near-term growth is driven by investment
  opportunities already in train,
• whilst foreign visitor numbers and
  spending will continue to expand at
• double-digit rates

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TSA Montenegro case

• The first TSA report was prepared for Montenegro
  in the period end of 2003 to the begging of 2004
  contented annual data for 1988 2002
• The TSA was based upon application of derived
  travel and tourism ratios or weights to detailed
  sectors breakdowns of the main items of the
  national income accounts consumption,
  investment, government spending, exports, imports
  and employment
• The TSA was updated in December 2004 to add
  information then available for 2003
• In February 2007, the TSA was again updated for
  information available for 2004, 2005 and for
  2006, in order to take into account the rapid
  development in Montenegro tourism over the past
  few years
• The forecast for the next ten years was then
  reviewed, in order to policymakers be better
  informed both in government and the private
  sector

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TSA Montenegro case

• Montenegro Travel Tourism Economy, 2006
• 
  Euro mn
• Personal consumption 86,6
  6,4 of total consumption
• Business travel 11,2
• Corporate 9,4
• Government 1,8
  0,3 of govt consumption
• Visitor exports 287,8
  68,0 of service exports
• Govt individual spending 1,1
  0,2 of govt consumption
• Tourism consumption 386,8
• Govt collective spending 19,0
  3,4 of govt consumption
• Investment 90,4
  20,0 of investment
• Merchandise TT exports 22,8
  4,3 of goods expors
• Total Tourism Demand 519,0
• less imports 190,0
  12,0 of imports
• Tourism economy GDP 329,0 18,0
  of GDP
• Memo
• Tourism Employment (000s) 24,5 16,0
  of total employment

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TSA Montenegro case

• Importance of travel tourism measuring
• (through the TSAs basic concepts)
• Objective is to measure the contribution of
  travel and tourism to economy activity
• The conventional figures underestimate the
  sectors overall importance
• This results in underinvestment in tourism and
  inadequate emphasis in policymaking
• The account is drawn up in an analogous way to
  the regular National Income Accounts

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TSA Montenegro case

• Towards
• for New Sustainable Tourism
• raising awareness of the importance of Travel
  Tourism
• promoting synergies between the public and
  private sector
• generating profit as well as protecting natural,
  social and cultural environment

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TSA Montenegro case

• INDUSTRY MEASUREMENT
• The need for an annual TSA
• Developing a TSA on an annual basis so that
  adequate data is available to factor Travel
  Tourism into economic and employment strategies

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TSA Montenegro case

• ENVIRONMENTAL SUSTAINABILITY
• National Parks and spatial planning
• - recommendations the introduction of a fee to
  enter National Parks to reinvest in the Parks
  upkeep and staff training
• - suggestions that training for the
  municipalities in terms of spatial planning is
  provided as a matter of urgency given that they
  are now in charge of deciding their own plans
• - supports the Ministry of Tourism and
  Environments framework of a home-built
  architectural brand for the north of the country
  to blend in with the existing environment and to
  incorporate energy efficient building
  technologies

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TSA Montenegro case

• MARKET AND PRODUCT DIVERSIFICATION
• Spreading the benefits of tourism
• Diversifying into niche products
• Developing central region tourism
• MICE market
• Gastronomic and Agro tourism
• Spa wellness and medical tourism
• Catering to the cruise and yachting market
• Using new technologies to market the product
  offer

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TSA Montenegro case

• TT Accounts as of National Accounts
• (Estimates for 2007 2017)
• - Personal TT
  7,08 7,82
• - Govt Expenditures
  3,48 3,58
• - Capital Investment
  25,80 23,40
• - Exports
  34,10 44,80
• - TT Imports
  13,10 19,50
• TT Industry Aggregates (Direct Impact Only)
• - Employment
  9,64 15,30
• - Gross Domestic Product 10,70
  16,60
• TT Economy Aggregates (Direct and Indirect
  Impacts )
• - Employment
  18,70 25,00
• - Gross Domestic Product 20,70
  27,10

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TSA Montenegro case

• Conclusions
• The Government of Montenegro recognize Travel
  Tourism as a top priority, ensuring adequate
  funding for the Ministry of Tourism and
  Environment
• Business must balance economics with people,
  culture and the environment and
• All stakeholders must share in the pursuit of
  long-term growth and prosperity.

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• THANK YOU
• for your attention!