Slovak Republic

Slovak Republic

Tourism in the economy In both 2007 and 2008, tourism accounted for 2.7% of GDP and contributed 28.7% of the

country’s export revenue, a level that has remained steady over recent years. The tourism sector in 2005-07 employed just over 4% of the workforce.

In 2008, total international arrivals at hotels and similar establishments were

1 767 000, having risen by 26.1% from the 2004 level of 1 401 000, an average annual rate of 6.0%. The five leading markets (Czech Republic, Poland, Germany, Hungary and Austria) accounted for 66% of arrivals in 2008, and the value of tourism exports stood at USD 2 583.7 million (EUR 1 762.6 million) in 2008.

Outbound tourism has been growing more slowly, however, at an annual average rate of 3.8% over the same period to reach 4 079 000 in 2008. Tourism imports as represented by Slovakian residents travelling abroad amounted to USD 2 150.9 million (EUR 1 467.3 million), thus leaving a surplus on the tourism account of some USD 432.8 million (EUR 295.3 million) in 2008.

The number of tourists (accommodated visitors: domestic and foreign) increased by 8.1% in 2008 on the previous year, and rose to more than 4 million.

Tourism organisation Responsibility for tourism in the Slovak Republic rests with the Tourism Section of the

Ministry of Economy (Figure 4.25). The main tasks of the Tourism Section are to: ● determine national tourism policy;

● develop tourism strategies and concepts; ● draft legislative regulations in tourism; ● analyse and evaluate the conditions of the tourism industry; ● collect statistical data on tourism; ● provide small- and medium-sized enterprises in tourism with appropriate support; ● carry out tasks connected with the preparation of territorial plans and tourism projects; ● represent the interests of the Slovak Republic in international tourism organisations and

associations; ● carry out international and cross-border co-operation in the field of tourism; and

● take responsibility for the preparation and fulfilment of international bilateral and

multilateral agreements in tourism, and develop bilateral contacts. The promotion and marketing of the Slovak Republic as a tourism destination is the

core responsibility of the Slovak Tourist Board (STB). The STB was set up by the Ministry of Economy in 1995 as a non-commercial, state-funded organisation specialising in the

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The STB carries out the national marketing and promotion of the country as a tourism destination, provides information on tourism in the Slovak Republic, contributes to the positive image of the Slovak Republic abroad and implements the EU Structural Funds in the tourist industry.

The Tourism Council of the Ministry of Economy is an inter-departmental co-ordinating body dealing with issues that are outside the core competence of the Ministry of Economy, such as transport infrastructure, spa resorts, visa policy, the professional education system, preserved monuments, and protective measures adopted in preserved areas.

At the regional level and as a result of public service reform in 2001, tourism responsibilities were devolved from the local civil service (district and regional offices) to eight self-governing bodies in the regional governments (Bratislava, Trnava, Nitra, Trenčín, Ž ilina, Banská Bystrica, Prešov, Košice) and municipalities. Local government in municipalities and towns plays an important role in the development of tourism within their areas and in co-ordinating entities concerned with tourism development issues.

Tourism associations as professional entities also contribute to the development of tourism at local and regional level, mainly in the fields of quality improvement, expanding the range of tourism products and services, professional training, the application of quality standards and the communication of best practices.

Figure 4.25. Slovak Republic: Organisational chart of tourism bodies

Ministry of Economy

Tourism Council

Tourism Section

Department of Tourism Policy and Regional

Unit of Foreign Relations

Development

in Tourism

Board of Experts

Slovak Tourist Board

Source: OECD, adapted from Ministry of Economy, 2009.

Tourism budget Tourism budgets for 2007 and 2008 are set forth in Table 4.145. The Slovak Republic will be able to use EU funds throughout the duration of the

National Strategic Reference Framework until 2013. Within the Sectoral Operational Programme – Industry and Services, the European Commission approved approximately EUR 63 million for the period 2004-07 for tourism development and the promotion of Slovak tourism. Support from Structural Funds was centred on the improvement of infrastructure for tourism and the renovation of cultural and historical monuments, establishing educational trails and the development of bicycle tracks. Funds were also

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

Table 4.145. Slovak Republic: The financing of tourism, 2007-08

EU Structural funds Ministerial tourism budget

State budget

EU Structural funds

State budget

.. Slovak Tourist Board

Thousands SKK

59 391 Entrepreneurial support in tourism

Thousands SKK

Thousands SKK

300 195 Source: Ministry of Economy.

Thousands SKK

12 http://dx.doi.org/10.1787/770772050348

available for the support of business activities in tourism, and are used for constructing facilities such as accommodation and catering establishments and swimming pools.

During the programme period 2008-13, the Slovak Republic may use European funds totalling EUR 172.6 million for the support of business activities in tourism, the development of tourism information services, and the presentation of the regions and the country as a whole within the Operational Programme – Competitiveness and Economic Growth.

Tourism-related policies and programmes Legislative and regulatory environment

National tourism legislation is harmonised with EU legislation. The main laws in force govern package tours and the conditions of doing business by travel offices and travel agencies. A decree of the Ministry of Economy regulates the categorisation and grading of accommodation facilities, while other important legislation includes a new Act on Investment Aid (2008). This allows for the provision of regional investment and employment aid for investment or expansion projects in industrial production, technology centres, strategic service centres, and tourism complexes.

Market trends Visitors to the country come predominantly for winter sports, mountain vacations at

lakeside resorts, spa vacations, wellness stays, and guided tours. In terms of tourist entities, in 2007, there were 3 182 facilities providing accommodation services (2 490 in 2006), offering in total 56 525 rooms with 146 655 beds. The total number of tourism enterprises in 2007 was 19 801, an increase of 1.5% on the previous year.

In 2008, 3 434 facilities provided accommodation services in the Slovak Republic, in total offering 58 182 rooms with 151 991 beds.

The number of employees in tourism (accommodation establishments, restaurants and catering) was 152 800 in 2007, representing 7.1% of the total workforce.

In 2008, foreign tourism receipts continued to grow, and were EUR 1 762.6 million, 19.7% (28.3%) higher than in previous year 2007. Slovak citizens’ foreign exchange expenditure on travel abroad for the same period amounted to EUR 1 467.3 million, 31.4% (40.9%) higher than in the previous year. The balance on the tourism account thus remained some EUR 295.3 million in surplus, a drop of 17.1% (11.1%) on the previous year.

According to the preliminary statistics released by the National Bank of Slovakia, foreign exchange receipts from inbound tourism reached EUR 329.3 million for the first

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

Foreign exchange expenditures of Slovak citizens recorded in the same period (January-March 2009) were EUR 328.1 million, an increase of 17.1% compared to the previous year (EUR 280.3 in 2008). The balance of international tourism is still positive (EUR 1.1 million) but decreased by 98.5% compared to the previous year (EUR 76.9 million in 2008).

Competitiveness and sustainability The New Tourism Development Strategy to 2013 (Box 4.32) aims to create a supporting

environment for environmentally friendly forms of tourism, such as establishing cycle tracks (local, regional and international) and basic cycling infrastructure, supporting the development of tourism in rural areas, eco-tourism, mountain sports, agrotourism, support of water-sports and sailing, horseback riding and golf, increasing the standards of campsites, renewing the network of marked tourist paths and creating more resting places and shelters.

The Ministry of Economy has also started to prepare “regional tourism development centres” which are focused on building the capacities of regional tourism management structures. The aim of this project is to improve destination management, create regional products, establish an expert team within each self-governing region, improve the management and co-ordination of tourism on a regional level, and connect the private and public sectors more effectively.

The State Nature Protection Agency is developing a project of six programmes to complete the zoning of natural parks in the Slovak Republic as well as determining the principles of further utilisation of protected areas. Additionally, the Agency has built up or renovated 13 information centres for nature protection with the aim of improving information systems in protected areas and ensuring that visitors do not adversely affect the natural environment. Five additional information centres are planned, together with the expansion of another 22 centres.

Human resources The Ministry of Education is currently working on a bill on professional education. The aim of the bill is to co-ordinate professional education and to create appropriate conditions

for both employers and unions to participate in professional education. Transport

A programme for the modernisation of the railway system has been drawn up covering the period 2007-10, with a particular emphasis on decreasing the negative environmental impact of the transport system.

In recent years, air traffic has grown strongly in the Slovak Republic, with passenger traffic at Bratislava airport exceeding two million in 2007 (compared with 293 000 in 2001). Growth continued in 2008, and the airport is now preparing a new terminal that will increase its annual capacity to 5 million passengers. The airport intends to start using the new terminal in 2012, with further development planned for 2014.

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

International and inter-regional activities The Czech-Slovak Working Group for Tourism was established in 2008, based on the

recommendations of the Inter-governmental Commission for Cross-Border Co-operation between the Czech Republic and the Slovak Republic. This represents an initiative of both ministries in charge of tourism – the Ministry for Regional Development of the Czech Republic and the Ministry of Economy of the Slovak Republic. The main objectives of the working group are: ● to increase the attraction of cross-border regions for domestic and foreign tourism;

● to increase the quality of services rendered and the competitiveness of tourism; and ● to create conditions for the exchange of information, experience, knowledge, know-how

and tools for the development of tourism in cross-border regions. Statistics and economic evaluation of tourism

The Slovak government states in its manifesto its intention to establish a Tourism Satellite Account in order to quantify tourism’s results and its contribution to GDP.

The current situation in the development of the TSA in the Slovak Republic is that demand-side tables for the years 2003 to 2006 are available, supply-side data for 2005 have been prepared, employment data in 2005 and 2006 are available and gross fixed capital formation for 2005 have been compiled. An estimate of the service fees of tour operators has also been prepared.

Box 4.32. National tourism strategy On 9 May 2007, the government of the Slovak Republic adopted a resolution that outlines

the New Strategy for Development of Tourism in the Slovak Republic until 2013. The strategic objectives of the tourism industry are to use the potential of the Slovak Republic to a greater extent, eliminate regional disparities, and create new jobs.

The development of tourism in the Slovak Republic needs to be aimed at summer tourism, waterside activities, spa and health tourism, winter tourism and winter sports, urban and cultural tourism, rural tourism, and agrotourism.

The second important tourism development document in the Slovak Republic is the State Tourism Policy, which received government approval on 19 September 2007. The fundamental aim of the Policy is to win new markets and satisfy the needs of domestic and foreign visitors through the tourism industry in a sustainable environment, so that the quality of life of the local population improves and the national economy benefits as much as possible.

The Ministry of Economy has also drawn up a Handout on Investment in Tourism, the aim of which is to inform and attract foreign investors to the tourism sector.

On 1 January 2009 , the Slovak Republic adopted the euro, thereby becoming the 16th country in the euro area.

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

Statistical profile Table 4.146. Slovak Republic: Domestic overnight tourism

6 810 6 687 Number of nights spent

Number of overnight stays 1 Thousands

29 326 29 242 1. Same-day visitors excluded.

Source: Statistical Office of the Slovak Republic, 2009. 12 http://dx.doi.org/10.1787/770776320508

Table 4.147. Slovak Republic: Inbound tourism – International arrivals and receipts

Number of arrivals at border 1 Thousands

Number of visitors (TSA) 2 Thousands

1 684 1 767 Top 5 markets Czech Republic

Number of tourists in hotels and similar establishments 3 Thousands

56 56 61 63 62 Number of same-day visitors

Thousands

5 740 6 186 International travel receipts

49 751 55 153 International passenger transport receipts

Million SKK

8 112 8 927 1. Only until 2007.

Million SKK

2. Including transit and same-day visitors (TSA). 3. Accommodation statistics.

Sources: Statistical Office of the Slovak Republic, National Bank of Slovakia, 2009. 12 http://dx.doi.org/10.1787/770777352651

Table 4.148. Slovak Republic: Outbound tourism – International departures and

3 937 4 079 International travel expenditure

Number of tourism trips 1 Thousands

37 721 45 913 International passenger transport

Million SKK

7 351 9 230 1. Excluding same-day visitors.

Million SKK

Sources: Statistical Office of the Slovak Republic, National Bank of Slovakia, 2009. 12 http://dx.doi.org/10.1787/770808124315

Table 4.149. Slovak Republic: Enterprises in tourism

.. Tour operators

794 Travel agencies

.. Sources: Statistical Office of the Slovak Republic, National Bank of Slovakia, 2009.

12 http://dx.doi.org/10.1787/770808640445

OECD TOURISM TRENDS AND POLICIES 2010 © OECD 2010

Table 4.150. Slovak Republic: Employment in tourism 1

FTE, Thousands

FTE, Thousands

44.4 43.8 42.9 Tour operators and travel agencies

FTE, Thousands

4.0 4.4 4.4 Others

FTE, Thousands

46.1 47.4 47.2 Tourism employment in percentage of total employment

FTE, Thousands

5.5 5.5 5.3 1. Number of full-time equivalent jobs in tourism characteristic enterprises (TSA).

Percentage

Sources: Statistical Office of the Slovak Republic, National Bank of Slovakia, 2009. 12 http://dx.doi.org/10.1787/770844703661

Table 4.151. Slovak Republic: Tourism in the national economy – Tourism consumption

Units

Domestic tourism