28.

Mednarodna konferenca o razvoju organizacijskih znanosti

NOVE TEHNOLOGIJE, NOVI IZZIVI
25. - 27. marec 2009, Portoro, Slovenija

FACTORS INFLUENCING TOURIST SPENDING IN ISTRIA

Desimir Bokovi
Institute of Agriculture and Tourism Pore, Croatia
desimir@iptpo.hr

Jasmina Greni
Fakultet ekonomije i turizma Dr. Mijo Mirkovi Pula, Croatia
jasmina.@efpu.hr

Ana Teak
Institute of Agriculture and Tourism Pore, Croatia
tezak@iptpo.hr

ABSTRACT
Tourism is a major driver of economic development in Croatia. Either directly or
indirectly, tourism generates more than 25 percent of the countrys gross domestic
product and accounts for over 40 percent of all exports, placing this industry among
the key components of the national economy and foreign texchange. Croatia and
Istria possess a highly active tourism potential that needs to be valorised to a much
greater extent in order to create a distinctive identity of the tourism offering that will
lead to greater competitive ability, ensure a better position on the marketplace and
help to increase tourist spending. Average daily tourist spending per guest is a basic
indicator of tourism development for a country or destination.
In recent years, tourist spending generated in Istria, Croatias most developed
tourism destination, has been considerably lower than in other Mediterranean
destinations and some destinations in Croatia. There are number of reasons for this.
The hypothesis is that the factors impacting on the generation of such a level of
tourist spending include the existing structure and quality of basic and
complementary lower-category accommodation facilities; unsatisfactory quality and
range of services; seasonality of business and low occupancy rates; the condition of
the traffic infrastructure; dissatisfaction with the entertainment, experience and
adventure offerings; and a small number of facilities providing selective forms of the
tourism offering (theme tourism, adventure tourism, health tourism, congress and
incentive tourism, nautical and rural tourism). On the tourist market, there is an
obvious trend in the demand for specialised hotels (all-inclusive hotels, wellness, club
hotels, artistic and romantic hotels; hotels for gourmets, singles, tennis players, golf
players, etc.), with conventional hotels increasingly losing ground.
Based on research conducted, the aim of this paper is to establish and prove the
formulated hypotheses, their individual impact on the generation of low tourist
spending, and the measures and activities that can be taken to eliminate the
obstacles to achieving higher tourist spending.

Keywords: tourist spending, supply, demand, aims, measure and action
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1 INTRODUCTION
For more than a decade, Croatia, together with Istria, has been lagging in tourism industry
development and in adjusting to trends on the European and world tourist markets. This
stagnation and lagging behind in tourism is the result of the deterioration of our offering, in
terms of quality as well as quantity, relative to competitive European and, in particular,
Mediterranean countries. This negative trend in developing Croatian and Istrian tourism is the
outcome of the technological obsolescence of the tourism offering; the low quality of catering
and other services; the failure to apply European and world standards, principles and trends;
the failure to implement modern ways of organising work, management and adjustments to
the whims of tourist demand and its needs and wants; the inadequate level and quality of
managers; the failure to apply environmental norms and standards, etc. All this has combined
to cause poor tourist spending, low occupancy rates, marked seasonality of business, etc.
Market recovery, especially on the more sophisticated outbound tourism markets, will be a
very slow and difficult task if it is to be done with the existing tourism product. This is why it
is necessary to make a turnabout towards superior development solutions and to trigger a new
cycle of development. The new development concept would need to focus on how to
transform Istria from a two- and three-star destination into a four- and five-star destination. In
the twenty-first century, small countries, such as Croatia and Istria as its most developed
tourist region, that have little impact on global socio-economic trends, must seek to offer their
own specific features to whimsical tourist demand, features that are based on improved
quality and environmental, ethnical and domestic values that would make it distinctive in a
strongly competitive environment.
Therefore, the short-term and long-term policies of Istrian tourism must be viewed as visions
of a new system, visions of new relationships built not only on Istrias own values but also on
internationally transparent criteria and rules. The focus of tourism should already have shifted
from mass industry to quality. Service quality, throughout the entire tourism offering, is the
primary precondition to the further, successful development of Istrias tourism. This vision is
also contained in the paradigm of sustainable development in which development and
business efficiency hinge on designing product marketing.

In this model, the future development of tourism in Istria should seek to encourage the
restructuring of the existing tourism offering and the development of new selective forms of
the tourism offering of the highest category, such as nautical tourism, congress tourism,
hunting tourism, sports and recreational tourism, entertainment, cultural tourism, rural
tourism, excursion tourism, spiritual tourism, gastronomic tourism and other selective forms
of tourism that will serve as a platform for repositioning Istrias tourism offering on the
international tourist market.
.
2 RESEARCH METHODOLOGY
In this paper, research is based on primary and secondary sources, as well as on proven
scientific methods of domestic and foreign authors. In researching tourist spending and
spending patterns, the authors have conducted several surveys on tourists vacationing in Istria.
For the needs of a study on the development of the Barbariga tourist complex within the
company Brijunske Rivijere Pula, research was focused on tourist spending and on the
assessment of multiplier effects and consumption on other participants in Istrias and
Croatias tourism offering.
For a number of years, the Institute for Tourism Zagreb has been engaged in an ongoing
study, entitled TOMAS, dealing with the opinions and spending of tourists in Croatia and its
regions. The latest survey was conducted in 2007, the results of which will be used in this
161

paper, together with a comparison of tourist spending realised in the Istrian County with
spending in other Croatian destinations. Guest satisfaction in 2007 is also presented and
compared to results of the 2004 survey. A qualitative analysis of Istrias tourism offering is
made from a number of perspectives to identify the reasons behind inadequately low tourist
spending.

3 RESEARCH RESULTS AND DISCUSSION
Based on research conducted and on an analysis of Istrias tourism offering and the tourist
spending it generates, the factors impacting on the level of tourist spending have been
identified and proposals put forward to improve the existing offering. The hypothesis has
been confirmed stating that the greatest influence on the current level of tourist spending is
exercised by the existing structure and quality of primary and complementary accommodation
facilities; the quality and range of services provided; the dissatisfaction of tourists with the
entertainment, experience and adventure offering and with the offering of various facilities of
the selective tourism offering; and the marked seasonality of business.

3.1 Timeline of tourism development in Istria and some quantitative
and qualitative indicators of tourism supply and demand
According to data of the Bureau of Statistics, Istria a fairly small area covering a mere 2,815
km2 and accounting for 4.97 percent of Croatias territory had a total of 246,311 beds in
2007. This represents more than 30 percent of the total number of Croatias accommodation
capacities, and in the peak of the season, Istria plays host to more tourists than it has residents.
No other region in Croatia has managed to create a material basis of such magnitude. The first
beginnings of tourism in Istria date back to the time of the rule of the Austro-Hungarian
Monarchy and the construction of a railroad to Rijeka (1873) and Pula (1876). As early as
1913, district and regional tourism organisations united under the Austrian Federation for
Improving Transportation already existed in these regions. At the onset of the twentieth
century, the number of tourist resorts continued to grow every year, and in 1914, eight tourist
resorts with 67 hospitality facilities were recorded in Istria. In the period that followed,
between the two World Wars, tourism development began to decline.
1
After the end of World
War II and the annexation to the motherland of Istria, which was then under Italian rule, the
existing accommodation facilities were used to accommodate the first tourists arrivals and to
generate the first results of tourism. The 1950s saw the formation of hospitality and tourism
enterprises, catering chambers and tourism associations. The 1961-1972 period witnessed the
further dynamic development of mass tourism and the expansion of tourism of unsurmised
proportions. Small maritime and fishing towns were transformed into dynamic economic
centres with new facilities and a new structure of professions. Many hotels, tourist complexes,
motor camps, sports grounds, amusement centres and marinas were built. The adverse
economic and social movements that shook the country from 1981 to 1990 hugely influenced
tourism development. With an annual inflation of upward of 50 percent, an energy crisis,
shortages of various types of goods, etc., the tourism industry was unable to ensure the
optimum utilisation of its capacities or secure greater tourism traffic and tourist spending.
With the onset of political crisis and war activities, only about 20 percent of tourism traffic
was realised in 1991 relative to 1990. In the years that followed, up until the time stabilisation
and peace were secured for the country, tourist traffic continued to increase in Istria, which
had not been exposed to war conflicts. In line with trends on the tourist market, increasingly
greater investment is made to raising the category of accommodation facilities and improving
the overall tourism product.

1
Blaevi, I. :Povijest turizma Istre i Kvarnera, Otokar Kerovani, Opatija, 1987, p. 152.
162


Table 1: Accommodation capacities in Istria
Type of facility 2001 2003 2005 2007
Hotels 35,701 31,530 30,760 27,610
Tourist
complexes
37,410 33,947 33,656 31,534
Holiday flats 3,150 4,504 1,355 5,593
Camps 105,801 106,497 111,954 113,144
Private
accommodation
36,004 42,502 55,370 57,716
Other 2,657 6,709 10,585 10,714
TOTAL: 220,723 225,689 243,680 246,311
Source: Croatian Chamber of Economy County Chamber of Pula

Table 2: Number of tourists and overnights in the Istria County in 2000-2007 (in 000s)
Year Number
of
domestic
tourists
Number
of foreign
tourists
Total Number
of
domestic
overnights
Number
of foreign
overnights
Total
2000 147 2,016 2,163 643 13,797 14,440
2003 161 2,276 2,430 699 15,515 16,214
2005 167 2,338 2,505 686 15,964 16,659
2007 190 2,529 2,719 704 16,909 17,613
Source: Croatian Chamber of Economy County Chamber of Pula

In the above data, an upward trend in tourist traffic can be observed, in both the number of
tourist and number of overnights. The number of guests increased by 19 percent and the
number of overnights, by 17.5 percent. In 2007, some 2.7 million tourists visited Istria and
realised 17.6 million overnights, about 32 percent of all overnight in Croatia.

Qualitative aspects of tourism development in Istria

In the structure of Istrias accommodation capacities (Table 1), primary capacities (hotels,
hotel complexes, holiday-flat complexes) account for 59,144 beds or 26 percent of the total
number of beds; motor camps, for 113,144 beds or 47 percent; and private accommodation,
for 57,716 beds or 23 percent. The remaining 4 percent of beds are located in company
vacation homes, youth hotels and hostels, and in non-categorised facilities.

163

Table 3: Qualitative structure of accommodation capacities in the Istria County
Type Category Number Capacity Number Capacity
Hotels **** 3 1.471 20 8.034
*** 42 16.286 50 17.330
** 32 9.437 14 3.884
Hotel
complexes

****

2

638

4

1.770
*** 1 2.20o 5 4.823
** 11 9.956 9 8.566
Holiday flats **** - - 3 939
*** 2 233 10 1.983
** 5 1.276 6 2.794
Source: Croatian Chamber of Economy County Chamber of Pula

Three-star facilities dominate in primary solid facilities and in camps. However, with new
investments, the number of beds in four-star facilities has increased by more than 6,000 beds
and in three-star hotels, by about 1,000. The number of beds in two-star and one-star hotels
has dropped by more than 7,000. A similar trend in increasing the quality of accommodation
is also present in camps.

4 FACTORS IMPACTING ON TOURIST SPENDING IN
ISTRIA

4.1 Structure of the accommodation offering
With its tourism development grounded largely on the concept of mass tourism, Croatia
today, with its 944,076 beds and places (including also 62,089 berths in ports of nautical
tourism) numbers among the moderately developed tourist countries of the Mediterranean
basin. With more than 240,000 beds, the tourist destination of Istria is the most developed
tourist region in Croatia. However, in comparison with the structure of accommodation
capacities of other Mediterranean countries and similar destinations, Croatia and Istria are at a
disadvantage, and this is one of the primary reasons why Croatia tourism is lagging behind
and achieving low tourist spending. Namely, complementary capacities account for more than
75 percent of Croatias accommodation capacities and for about 73 percent of Istrias
accommodation capacities, whereas Italy, Greece and Spain have a considerably greater share
of primary accommodation facilities (53, 64 and 62 percent, respectively). The hotel offering
of Croatia and Istria is also at a disadvantage with regard to numbers, size and categorisation
in comparison with competitive Mediterranean countries. For example, the average size of a
hotel in Croatia is 220 beds; in Spain, 177; in France, 150; in Italy, 50; and in Austria, only
35. The total number of hotels in Croatia is exceptionally small and amounts to only 551,
whereas Austria has over 20,000 hotels; Italy, 26,800; and Spain, about 4,000.
2
In recent
years, the structure and categorisation of hotels in Croatia and Istria has undergone
considerable change. Today, 55 percent of Croatias hotels are three-star hotels; 25 percent,
two-star hotels; 17 percent, four-star hotels; and about 3 percent, five-star hotels. In Istria,
most hotels have three stars (60 percent); 23 percent of Istrias hotels have four stars, and 17
percent, two stars. The situation is similar in other types of accommodation capacities. Most
tourist complexes have two stars (60 percent), as well as most camps (31 percent). Some 25

2
Bokovi, D., Milohani, A.: Razlozi dosadanjeg zaostajanja i prijedlog koncepcije dugoronog razvoja
turizma Istre, Proceedings of the Conference Kontinentalni resursi u funkciji razvitka turizma Republike
Hrvatske, Faculty of Economic Osijek, 2002, p. 224.
164

percent of camps have three stars, and only 6 percent, four stars. In the camp offering,
Croatia is also at a disadvantage pertaining to the number and size of camps in comparison
with Mediterranean tourist countries. For example, Italy has more than 2,000 camps; Spain,
about 850; and Croatia, 228. There are 70 camps in Istria. However, relative to other
Mediterranean countries, the camps in Croatia and Istria have a far greater average capacity.
The average capacity of a camp in Istria is 1,800 places; in Croatia, 1,100; and in other
Mediterranean countries, from 500 to 800 places. If we consider the fact that guests generally
show a preference for smaller accommodation facilities, then it becomes clear why such
facilities are in greater demand and have higher occupancy rates.

4.2 Average occupancy rates
Exceptionally low occupancy rates are characteristic of Croatian hotels, including hotels in
Istria. Their average annual occupancy rate amounts to 131.5 days. In 2007, the occupancy
rate of tourist complexes amounted to 79.6 days, while the occupancy rate for private
accommodation was a mere 41.2 days. The overall occupancy rate in Croatia comes to 59.3
days
3
; in Istria, 67 days; and in the Dubrovako-Neretvanska County, 68 days.
Such low occupancy rates are conditioned by the structure, categories and quality of
accommodation capacities. All this, in turn, reflects directly on the amount of tourist spending
realised.
Because of their low occupancy rates, the dominating share of complementary capacities in
the offering camps, in particular have a highly adverse effect on the amount of tourist
spending, on business performance, etc.

4.3 Lagging of Croatia and Istria in other elements of the tourism
offering
A diverse catering offering is a significant part of Croatia and Istrias overall tourism offering.
The structure of this offering underwent substantial change with the onset on the privatisation
process. Nevertheless, the catering offering still lacks top-quality, specialised facilities with
modern furnishing, quality services and pleasant environments. Most establishments provide a
conventional, outdated food-and-beverage offering, while neglecting to heed new trends and
change on the tourist market. Out of a total of more than 2,300 catering facilities in Istria,
about 40 percent are various types of mainly conventional restaurants, 50 percent are various
types of caf bars, while only about 10 percent are entertainment facilities, discotheques,
amusement centres, terraces, etc.
Relatively well-preserved environment and resources for organic food product are
important advantages of Croatia and its tourists regions. However, little has been done to
capitalise on and valorise these advantages in designing the tourism offering. Surveys of
tourists in Istria during 2007 and 2008 show that 49 percent of respondents were interested in
ecologically produced food and were willing to pay up to 30 percent more for this type of
food in comparison to conventionally produced food
4
.
Although the Croatian tourism and hotel industries have made a comeback on the
international tourist market, the consumption of domestic input continues to decline every
year due to the considerable greater input of imported products in Croatias tourism product.
In the current situation, cheaper importation is encouraged and is the basis of commercial
orientation at the expense of home production. The performance quality of Croatian tourism
lags behind the average performance of competitive hotels in Europe and worldwide, and the
industry is falling behind in the implementation of international hotel standards for quality

3
2007 Report of the Ministry of Tourism of Croatia
4
2007 and 2008 Tourist Survey, Institute of Agriculture and Tourism Pore
165

and performance management in sales and purchasing, making it difficult to measure and
assess competitiveness
5
. Considered to be the greatest competitive advantages of Croatian
tourism, natural resources and the preserved environment should be used more effectively in
organic food product and should become a distinctive marketing brand of this destination.
The sports and recreational offering, together with the entertainment offering, plays a vital
role in the overall tourism offering and in spending. Istria was quick to recognise the
importance of these segments of the offering, which it has been developing hand in hand with
the accommodation offering
6
. Until recently, the wide range of services and facilities in the
sports and recreational offering was successful in meeting guest requirements. Today,
however, there is a feeling that certain, more sophisticated facilities and services are missing,
such as golf courses, sports halls, wellness centres, fitness centres, and active holidays and
sports animation.
As far as culture and cultural and historical heritage is concerned, Istria as a tourism
destination is rich in cultural resources. Some world-famous resources under UNESCO
patronage are located in the coastal area. However, because of the rapid development of mass
tourism since the 1970s, various selective forms of tourism, including cultural tourism, have
failed to develop to any significant degree. Culture is symbolically included as an element of
the excursion tourism offering, but only to a small extent because the sun and the sea continue
to be the primary motivation for tourist arrivals to Istria. Now when the concept of mass
tourism is changing to include various activities and experiences other than those linked to the
sun and sea, the time has finally come for cultural tourism to assume its rightful place in the
overall tourism offering and in the strategy of the future development of Croatian and Istrian
tourism.
This cultural capital, which has up until now been idle, should be capitalised on through
tourist spending. Promotional activities in coastal and rural tourism should seek to include
cultural heritage into the tourism offering and make it a travel motivation that will entice
tourists to visit and stay in Istria.
Nautical tourism and rural tourism are two other selective forms of tourism that can be further
developed in Croatia and Istria to help increase tourist spending.
Although nautical tourism has, in recent years, experienced rapid development, it is still
lagging behind with regard to the resources available and to demand on the market. Because
of its comparative advantages for developing nautical tourism, the European part of the
Mediterranean, as a place to stay and sail, is becoming more and more attractive to a growing
number of boaters
7
. The County of Istria has 11 marinas, four of which are a part of ACI,
while the others are independent or operate within hospitality and tourism companies.
Staying in the countryside and enjoying nature has become an absolute hit in tourism around
the world, and the number of people wanting to escape from urban environments is steadily
growing. In Croatia and Istria, this segment of the tourism offering has evolved into a special
product and is no longer a supplementary segment linked to maritime tourism. This segment
has ideal conditions for further development: the proximity of markets and the vicinity of the
sea, good transportation links, preserved nature, an abundance of natural attractions, many
cultural and historical monuments, a good eno-gastronomic offering, and peace and quiet. The
current capacities of rural tourism include 184 domestic establishments with 1,430 beds (in
various categories of true agritourism), located in rural holiday homes, rural family-run hotels,

5
Karamarko, N.: Izgradnja hrvatskih turistikih brendova u funkciji razvoja opskrbe i izvoza, Poslovni forum
Hrvatske- Roundtable Proceedings, Pore, 2008, p. 1.
6
Bokovi, D., erovi, S.: Restrukturiranje i prilagodba turistike ponude Hrvatske Europskim i svjetskim
trendovima, Turizam no. 2, CTB, Institute for Tourism Zagreb, 2000, p.159.
7
Vukevi, M., Dovear, R.: Izgradnja nautikog turizma kao sustava u Istri, Proceeding of the Conference
Turizam u Hrvatskoj na prijelazu stoljea, Faculty of Tourism and Foreign Trade Dubrovnik, 2000, p. 137.
166

private rooms and holiday flats in village households, where traditional dishes can be enjoyed
that are prepared in an authentic, home-made way using home-grown products
The research of the authors of this paper shows that rural Istria has a great number of
abandoned village houses, tancija (typical Istrian country-houses), etc. that could be
remodelled and refurnished to provide more than 10,000 beds under the condition that this
development neither puts the environment at any risk nor evolves into the mass tourism of the
coast.

TOURIST SPENDING
Background on tourist spending and assessment methodology
In the part of his book Tourism in the Economic System that deals with the effects of tourist
spending on aggregate consumption and economic equilibrium, Prof. B. Blaevi raises the
question: What needs to be done for tourism to actually become a pull activity that will be
distinctive as a Croatian strategic export product?
8
. This question requires not only practical
and pragmatic answers, but theoretical explanations and new insight as well. If the answers to
this question were simple and easy, there would be no conflicts between the stated opinions of
the Government and the actual policy that it applies to tourism.
The amount of spending realised is important to tourism, because tourists spend money that
they earned in places other than the place where they are temporarily staying. Calculating
tourist spending as a part of personal spending is neither an easy or simple matter. This is
because tourism is not merely a branch of industry, and tourism-related inflows do not occur
and are not recorded at a single point, but rather are dispersed over a number of points of
domestic consumption. Hence, the best way to acquire the data needed is by surveying
tourists. For the purpose of improving and developing the tourism offering of Istria, the
authors of this paper have conducted a number of surveys that provide information on how
much tourists spend on catering and tourism services
9
. However, because these surveys do not
include all tourist expenses (total spending), the data of the Institute for Tourism Zagreb
TOMAS are used.
Data on tourist spending in Croatia is also obtained through one-on-one interviews with
tourists in all counties.
The aim of research is to spot change in tourist-spending attributes, help meet new needs,
monitor trends, make comparisons with rival countries, identify activities in the destination
and travel motivations, and measure spending in the destination. The following section
presents some of the attributes of respondents and changes that have occurred relative to 2004
research results.
The socio-demographic profile of tourists to Istria: Average age 41; with 21 percent of
tourists being up to the age of 29; 52 percent in the 30-49 age group; and 27 percent in the
+50 age group. Prevalent is the middle-age group with family members. With regard to
educational background, more than 60 percent of tourists to Istria have college or higher-
education qualifications, 37 percent have secondary school qualifications, and 2.5 percent
have elementary school qualifications. In comparison to 2004 surveys, an increase in
educational levels can be observed, indicating a change in the demands of tourists who
increasingly show a preference for art, culture, experience, history, learning, etc. Family
members accompany more than 48 percent of tourists travelling to Istria, while spouses or
significant others accompany 31 percent. Family arrivals have increased by 8 percent relative
to 2004. For tourism providers, repeat visits are a crucial attribute of tourists. Results obtained
show that 31 percent of the tourists surveyed have made 3-5 visits; 23 percent, 6 and more

8
Blaevi, B. : Turizam u gospodarskom sustavu, Faculty of Tourism and Hospitality Management, Opatija,
2007, p. 328.
9
Institute of Agriculture and Tourism Pore, 2004 and 2007 Tourist Survey
167

visits; 24 percent, two visits; while 21.8 percent were visiting for the first time. The major
travel motivations of tourists surveyed include landscapes and scenery, the proximity of the
destination, favourable prices, and sports and recreation. These are also the main competitive
advantages of Croatian and Istrian tourism, which is not enough with regard to the
competition and numerous other facilities and services provided by the offering. Changes
have also taken place in the segment of pre-arrival information. The main sources of
information regarding the destination are the media (46 percent), the Internet (23 percent), and
previous visits (19 percent). The proximity of the destination determines the transportation
mode of tourists to Istria. More than 80 percent arrive by passenger car, 7.2 percent by bus,
and only 6.7 percent by air. The length of stay also underwent substantial change in 2007: it
shortened from 11.7 overnights to 9.8 overnights. Because of the prevailing beachside and
family tourism offering, the main activities for more than 70 percent of guests involve
swimming and bathing, going to caf bars and restaurants, shopping, and going on excursions.
A trend can also be observed in increased interest in health care, active holidays, engaging in
various hobbies, etc.
An assessment of guest satisfaction shows that in 2007 guests were more satisfied with most
elements of the offering than in 2004. However, the greater dissatisfaction of tourists with the
offering of the destination is linked to an inadequate supply of entertainment, culture and
shopping opportunities.

4.4 Tourist spending in the destination
This section of the paper presents data on tourist spending in the Istria destination compared
with the amount of spending realised in Croatia and other maritime counties. Data are
provided for tourist spending as per type of accommodation facility and for tourist spending
per country of origin of tourists.

Table 4: Average daily spending per person in EUR
In Croatia % In Istria %
Total spending 55.48 100 59.59 100
Accommodation 23.02 23.03
Eating in accom.
facility
4.65 5.55
Eating in
restaurants
6.98 7.19
Beverages 3.29 3.27
Shopping 9.51 17.1 10.54 17.7
Sport and
recreation
2.94 3.39
Culture 1.14 1.84
Excursions 2.97 3.88
Other 0.08 0.89
Source: Institute for Tourism Zagreb, TOMAS 2007, p. 35.

Data obtained show that total average daily tourist spending is larger in Istria by about EUR
4.0. Average daily spending is also larger per individual elements of the offering.


168

Table 5: Average daily spending per person in destinations

Destination Amount in
EUR
1. Croatia 55
2. Istria 60
3. Primorsko-Goranska County 46
4. Liko-Senjska County 44
5. Zadarska County 43
6. ibensko-Kninska County 47
7. Splitsko-Dalmatinska County 59
8. Dubrovako-Neretvanska County 88
Source: Institute for Tourism Zagreb, TOMAS 2007, p. 34.

The above data show that, apart from the Dubrovako-Neretvanska County, the greatest
average daily spending is realised in the County of Istria. There are a number of reasons for
this, the most important being the structure and quality of the accommodation offering and
other tourism offerings, the duration of the tourist season, the proximity of the market, the
accessibility of the destination, etc. It should be noted that in 2007 average daily spending in
Istria went up by 25 percent relative to spending in 2004. Viewed individually per elements of
the offering, catering services account for the greatest increase in tourist expenditure (39
percent), followed by other services (35 percent), whereas shopping expenditure dropped by
15 percent.
Table 6: Ranking of spenders in the County of Istria per
nationality
Rank Nationality Amount in
EUR
1. British 112
2. Russians 105
3. Italians 62
4. Dutch 60
5. Czechs 60
6. Hungarians 58
7. Austrians 53
8. Germans 53
Source: Institute for Tourism Zagreb, TOMAS 2007, p. 36.

The decline in the purchasing power of guests from the traditionally strongest German
market, and from the Italian and Austrian market has had a great impact on tourist spending in
the Istria destination. In recent years, the number of tourists from Great Britain and Russia has
increased, especially tourists staying in 4- and 5-star hotels and spending almost twice as
much, in all segments of the offering, as tourists from other markets.


169

Table 7.: Average daily tourist spending in Istria per type of
accommodation facility
Type of accommodation
facility
Daily spending in
EUR
1. Hotels 100
2. Tourist complexes 64
3. Private accommodation 56
4. Camps 44
Source: Institute for Tourism Zagreb, TOMAS 2007, p. 36.

The above data confirm the hypothesis that the structure and quality of the accommodation
offering has the greatest impact on realising tourist spending in the County of Istria. The fact
that hotels account for only 11 percent of Istrias total accommodation capacities, while
tourist complexes account for 13 percent; camps, for 47 percent; and private accommodation,
for 23 percent, serves to confirm the hypothesis. It is also the reason behind the current level
of tourist spending.

4.5 Suggestions for improving tourism in Istria and increasing
tourism spending
The vision of long-term tourism development in Croatia recognises the Croatian tourist space
as a destination product in response to globalisation processes
10
and implicates a
destination-focused policy. Namely, a destination, viewed in both localised and broader terms,
has a far better chance on the international tourist market, because, among other things, the
destination tourism-product makes it possible to reach target market segments and to
specialise the elements of the offering. In this model, the development of selective forms of
tourism should especially be encouraged, as the basis on which the Istrian and Croatian
tourism offerings will be positioned on the international tourist market. In addition to
eliminating weaknesses, the vision of future tourism development in Istria must seek to:

Change and improve, through restructuring, the existing structure of hotel
accommodations to increase the number of three- and four-star hotels. The
number of hotels and other types of accommodation in the two-star category
should be reduced to a minimum, that is, only one or two such facilities per
micro destination,
Restructure and reduce the size of complementary capacities (camps) in
keeping with market demand. Recommendations include reducing the size of
camps by about 30 percent, and to use this area for building 10 15 top-
category hotels,
Encourage the construction of family-run mini hotels in Istrias coastal and
rural areas
To improve the sports, entertainment and recreation offering, in particular by
building golf courses, wellness centres, sports halls, by providing sports
animation, etc.
Increase the number of marinas and berths in marinas,

10
Bokovi, D., Milohani, A. ; Razlozi dosadanjeg zaostajanja i prijedlog koncepcije dugoronog razvoja
turizma Istre, Proceedings of the Conference Kontinentalni resursi u funkciji razvitka turizma Republike
Hrvatske, Faculty of Economic Osijek, 2002, p. 224.

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Encourage the development of various forms of rural tourism, starting with
agritourism, eno-gastronomic tourism, excursion tourism, hunting tourism, etc,
Encourage the development of theme facilities and clubs within hotel facilities
and tourist complexes,
Foster and encourage the development of culture and experiences in the
destination,
Improve the catering offering, in terms of quantity and quality,
Place emphasis in future development on environmental values and
environmental protection that foreign tourists highly appreciate. Well-
preserved natural resources should be used in organic food production, thus
creating a competitive advantage on the market,
Adopt and implement all European and world-class standards in catering and
tourism, etc.

If the above measures, lines of development and new strategies are not implemented
immediately and for the long run, it is not likely that the interest of guests in coming to Istria
and Croatia will grow. It is even less likely that tourist spending and multiplier effects from
tourism can be increased, occupancy rates and employment rates, raised, or the living
standard of the population, improved.

5 CONCLUSION
For Croatia, the last decade of the twentieth century was a time of great economic and
social turmoil and crisis, brought about by warfare and resulting in a rise of unemployment
and a drop in social and personal standards. All this impacted on the decline of tourism
development, that is, a decline of tourism in physical and financial terms and in terms of
quality. Having gradually recovered in recent years, tourism in Croatia and, in particular, in
Istria as the countrys most developed tourist region, again holds a high position. Notable are
new lines of tourism development, the introduction of high levels of quality, the
implementation of environmental, production, service and other standards valid in Europe
and worldwide.
Croatia began to lag behind in tourism development during the 1980s and this became
increasingly obvious in the decade that followed. Mass tourism, marked seasonality of
tourism operations, price increases that were not matched with an increase in the quality of
the tourism product, and other factors influenced the decline of quality in Croatias tourism
industry, and this was aggravated by the general economic and social crisis Croatia
experienced as a transition country .At the same time, other Mediterranean and European
countries were pushing far ahead of Croatia in tourism development and in adjusting to new
socio-economic trends and quality-related demands of tourists.
Modern tourists no longer wish to be a segment of mass tourism of lesser quality.
They wish to experience a special tourism product and consume selective forms of the
offering in which it will be obvious that tourists are respected and appreciated guests. The
tourism offering of Croatia and, in particular, of Istria, must gradually do away with the
concept of lesser-quality mass tourism and transform into a special, top-quality offering
geared to high-category tourists

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