Ivanović Zoran - TOURISM AND HOSPITALITY MANAGEMENT PDF

UDC 338.48+640.
ISSN 1330-7533
TOURISM AND
HOSPITALITY MANAGEMENT
AN INTERNATIONAL JOURNAL
OF MULTIDISCIPLINARY RESEARCH
FOR SOUTH AND SOUTH-EASTERN EUROPE
Edited By Zoran Ivanovic
Alexandreion
TECHNOLOGICAL
EDUCATIONAL
INSTITUTION (T.E.I)
of Thessaloniki, Greece
Institut for Economic Promotion,

Austrian Economic Chamber
Vienna, Austria
Volume 14
Number 2
pp. 217-360
OPATIJA, VIENNA, THESSALONIKI
DEPARTMENT
OF TOURISM
MANAGEMENT
TEI Thessaloniki, Greece
December 2008
TOURISM AND HOSPITALITY MANAGEMENT

Website: http://www.fthm.hr/index.php?option=com_content&task=view&id=9&Itemid=18
EDITOR-IN-CHIEF
Prof. Zoran Ivanovic, Ph.D.
University of Rijeka, Faculty of Tourism and Hospitality Management, Opatija
Primorska 42, PO Box. 97, 51410 Opatija, Croatia; www.fthm.hr
Phone ++385/51/294-700, Fax. ++385/51/291-965, E-mail: thm@fthm.hr
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ISSN 1330-7533

Volume 14
Number 2
pp. 217-350
December 2008
CONTENTS
Research Papers
THE GDP IMPACT ON INTERNATIONAL TOURISM DEMAND: A SLOVENIA BASED CASE
Helena Nemec Rudez
217
ENVIROMENTAL PROTECTION KEY PREREQUISITE FOR SUSTAINABLE TOURISM ON

MEDITERRANEAN
Dobrica Jovicic, Vanja Ivanovic
229
USING THE LEARN MODEL TO RESOLVE GUSET COMPLAINTS

Vlado Galicic, Slobodan Ivanovic
241
ANALYSING THE USRES PERCEPTION OF WEB DESIGN QUALITY BY DATA MINING TOOLS
Vanja Bevanda, Jasmina Grzinic, Emanuel Cervar
251
RESTORABLE ENERGY SOURCES AS A FACTOR OF COMPETITIVE IMPROVEMENT ABILITY

OF A TOURIST DESTINATION
Danijela Gracan, Romina Alkier Radnic, Sinisa Bogdan
263
THE DEVELOPMNET DESING MODEL IN THE COMPETITIVNESS OF INTELLIGENTE BUSINESS

ORGANIZATIONS
Christian Stipanovic, Suzana Baresa
271
TOURISM AS A PATHWAY FOR RES UTILISATION

Biljana Kulisic, Margareta Zidar, Branka Jelavic, Julije Domac, Velimir Segon
281
ENERGY CONSUPTION IN HOTEL INDUSTRY CASE STUDY IN OHRID

Gordana Petroska Reckoska, Risto Reckoski, Angela Vasileska
291
ECONOMIC AND ENVIRONMENTAL ASPECTS OF INTRODUCING THE USE OF BIODISEL IN

THE HOSPITALITY AND TOURISM BUSINESS OF RURAL ISTRIA
Pavlo Ruzic, Ivan Ruzic, Marinela Dropulic
301
CHALLENGES BEFORE THE ACHIEVEMENT OF A SUSTAINABLE CULTURAL TOURISM

Milena Filipova
311
IMPORTANCE OF INTELLIGENT ROOMS FOR ENERGY SAVINGS IN THE HOTEL INDUSTRY

Marinela Krstinic Nizic, Goran Karanovic, Sasa Ivanovic
323
ENVIROMENTAL PROTECTION AS A FUNDAMENTAL PART IN TOURISM DEVELOPMENT AND

INSURANCE INDUSTRY COMMITMENT TO SUPPORTING IT
Larisa Vasileska, Katerina Angeleska-Nadjeska
337
GREEN MARKETING: A NEW CHALLENGE FOR ROMANIAN ORGANIZATIONS

Andreea Mutean, Filimon Stretman
343
ENERGY AUDIT METHOD FOR ENERGY CONSERVATION IN HOTELS

Zeljka Hrs Borkovic, Biljana Kulisic, Margareta Zidar
349
Reviewers

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Alexandreion Technological Educational Institution (T.E.I) of Thessaloniki, Department of Tourism Management,
Thessaloniki, Greece. Printed in Croatia. All rights reserved.
ISSN 1330-7533
II
Tourism and Hospitality Management, Vol. 14, No. 2, pp. 217-228, 2008
H. Nemec Rudez: THE GDP IMPACT ON INTERANTIONAL TOURISM DEMAND: A SLOVENIA
T.E.I. Thessaloniki
Greece
UDC 338.484(497.4)
Preliminary communication
Received: 18.06.2008
Institut for Economic
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Department of Tourism
Management
THE GDP IMPACT ON INTERNATIONAL

TOURISM DEMAND: A SLOVENIA
BASED CASE
Helena Nemec Rudez
Univerisity of Primorska, Portoroz, Slovenia1
Abstract: The paper empirically examines the relationship between Slovenian GDP and international
tourism expenditures of Slovenia in the period 1994-2006. For this purpose, regression analysis in different
functional forms was used to examine the impact of GDP on international tourism expenditures. The results
reveal positive and strong impact of GDP on international tourism expenditure in Slovenia in the given
period of time. Further, income elasticity of outbound tourism demand was calculated leading to the
conclusion that travelling in foreign destinations has characteristics of a luxury good for Slovenian people.
Keywords: tourism demand, income elasticity of tourism demand, international tourism expenditures,
outbound tourism.
INTRODUCTION
In the past 10 years Slovenia has successfully went out of the crisis that was
characterizing Slovenian tourism in the early 90s of the previous century. Indeed, the
number of tourists as well as their overnights in Slovenia has been continually growing
in the last decade. However, the structure of tourists and their overnights shows that
only the number of foreign tourists and their overnights has been growing the whole
decade, while the number of domestic tourists as well as their overnights is unceasing
in decline from 2000 to 2005, while it grew up in 2006.
1
Helena Nemec Rudez, Ph.D., Assistant Professor, Univerisity of Primorska, Turistica College of Tourism,
Portoroz, Slovenia.
217
According to Statistical office of the Republic of Slovenia (SURS, 2006;

SURS, 2007), there were 1.957 thousand tourists in total in 2000 in Slovenia, among
them 1.090 thousand foreigners and 867 thousand domestic tourists. They created
6.719 thousand overnights in total in 2000 in Slovenia, among them 3.404 thousand
overnights were created by foreign tourists and 3.315 thousand overnights were created
by domestic ones. Till then to 2005 the structure between foreign and domestic tourists
had changed in the benefit of the first. In 2006 there was a slight improvement in the
number of domestic tourists which rose to 867 thousand as well as the number of their
overnights rose to 3.231 thousands.
It was already found that domestic tourism expenditures competes relatively
strongly, but not exclusively, with international tourism expenditures (Crouch et al.,
2007, 255). Thus, the reason for a decline of domestic tourists and their overnights can
be found in orientation of Slovenian tourists towards foreign destinations. Accordingly,
international tourism expenditures of Slovenia are continuously rising. Outbound
tourism demand respectively international tourism demand or expenditures are defined
in our paper as expenditures for tourism import respectively outbound tourism. The
reason for the phenomenon of rising international tourism expenditures in the case of
Slovenia can be found in higher purchasing power of Slovenian people, usually defined
by gross domestic product (GDP) per capita, more competitive foreign destinations
with well-targeted marketing and, of course, development of low-cost airlines that have
made travelling more available. However, international tourism expenditures of
Slovenia form a negligible part of world and even European tourism expenditures since
they form just around 0,2% of world tourism expenditures.
The aim of this paper is in attempt to estimate the strength of the impact of
GDP on international tourism expenditures in the case of Slovenia. In this manner we
could found how strong are the impacts of economic development in Slovenia on
international tourism expenditures and how strong the impacts of other factors not
taken in the study might be. The implications of the findings will be discussed in
relation to losses of domestic tourism in Slovenia. The study also examines
international tourism expenditures in constant prices in the period between 1994 and
2006. Moreover, income elasticity of tourism demand, which measures the
responsiveness of outbound tourism demand to changes in income (such is GDP), is
calculated and discussed in the context of international tourism expenditures of
Slovenia in the given period of time.
The remainder of the paper proceeds as follows. The next chapter is devoted to
a presentation of literature related to the studies of income impact on international
tourism demand. The subsequent chapter introduces the research context. Following
this, data sources, definitions and methodology are presented. After that the study
results are shown. Finally, the paper provides the discussion and concluding remarks
how GDP in Slovenia influences international tourism expenditures of Slovenian
people.
218
1. RELATED LITERATURE
There are numerous research studies concerning the determinants of tourism
expenditures. Indeed, an overview of this large body of research has been analysed and
discussed in several studies, such as Crouch and Shaw (1992), Witt and Witt (1992),
Crouch (1994a, 1994b, 1994c, 1994d, 1995, 1996), Lim (1999). For instance, Lim
(1999) took under review 65 studies of international tourism demand that include
income variable. In addition, there are still several new studies emerging recently on
this body of research (for instance Smeral and Weber, 2000; Song and Witt, 2000;
Song and Wong, 2003; Smeral, 2004; Mangion, Durbarry and Sinclair, 2005; Han et
al., 2006). Following Crouch et al. (2007), the most commonly used method in
identifying explanatory variables of tourism demand has been regression analysis, the
most common model specification has been log-linear model and approach of timeseries analysis. Moreover, in these studies the most frequently used explanatory
variable was income. In fact, economic theory suggests that one of the major factors of
tourism demand is tourists income generated in the country of origin. According to
this, all these studies have important contribution to understanding income in relation
to international tourism demand.
Relation between income level and outbound tourism demand is measured by
income elasticity of outbound tourism demand which varies over time. Income
elasticity of tourism demand is defined as the relationship between the percentage
change in quantity of tourism demand and percentage change in income (Tribe, 2005,
78). Income elasticity of tourism demand was investigated in many of the existing
studies. Among them we should mention the study conducted by Smeral (2004) who
carried out income elasticity of tourism demand for Slovenia in the period 1975-1999.
He made a research on income elasticity of tourism demand across 25 different
countries, based on the real tourism exports as the function of GDP. Income elasticity
of outbound tourism demand was found to be 2,41 in Slovenia in the given period of
time. Values of income elasticity of outbound tourism demand in the 25 countries
ranged from 0,81 (Norway) to 9,23 (Czech Republic) in the same period in this study.
Income elasticity is one of the main outputs of tourism demand (Alegre, Pou,
2004, 139). It has been analysed across different countries lately in several studies
(namely Alegre, Pou, 2004; Smeral, 2004; Veloce, 2004; De Mello, Fortuna, 2005;
Han et al., 2006; Mervar, Payne, 2007). In line with the economic theory, tourism
demand is less income sensitive when income increases. The law of development of
tourism demand income elasticity says that income elasticity of tourism demand is
falling over time as a consequence of real income increase (Planina and Mihalic, 2002,
90). It can be explained by the fact that economic development causes real income
increase respectively higher purchasing power and, therefore, lowers sensitiveness of
tourism demand to income changes. Additionally, Song and Witt (2000, 125) and Song
and Wong (2003, 57) found out that income elasticity of international tourism demand
dropped from 1970s to 1990s. They pointed out that long-haul tourism was viewed as a
luxurious good because of strong budget constraints in 1970s inducing high income
elasticity of tourism demand. In addition, following Socher (in Planina and Mihalic,
2002, 90), income elasticity of tourism demand even increases when tourism in no
more a luxurious good and then begins to fall. In line with the theory, income elasticity
219
of tourism demand has a positive sign since it is not an inferior good and it falls with
the rise of GDP per capita and wellbeing. In fact, income or GDP increase in the
country of origins will increase the number of people travelling abroad and the level of
their expenditures.
2. RESEARCH CONTEXT
The research investigates GDP impact on international tourism expenditures in
the last period of time in the case of Slovenia. Therefore, our study begins with the
model of tourism demand function:
ITEi = f (Y i),
(1)
where ITEi is international tourism expenditures in year i and Yi is GDP in year i.

The research is oriented towards to the latest period of time including years
between 1994 and 2006. In this way the research tries to found the characteristics of the
studied relationship in the recent time. However, following the aim of the paper, other
demand factors of outbound tourism demand are not being taken under investigation. It
should be mentioned that this is the limitation of our study. Based on the literature
review respectively previous works and the aim of our research, the following
hypothesizes is proposed:
Hypothesis: GDP has a strong and positive impact on international tourism
expenditures in Slovenia.
2.1. Data sources, definitions and methods
Following to the World Tourism Organization (UNWTO, 2007), international
tourism expenditures are defined as the expenditures on tourism outside their country
of residence made by visitors (same-day visitors and tourists) from a given country of
origin. The definition is more extensive than that of the international travel
expenditures in the balance of payments where international passenger transport is not
included. Our study uses data on international travel expenditures from the Balance of
Payments and, consequently, does not include expenditures on transport passenger
services.
Our analysis is based on annual data. Data on international tourism
expenditures were obtained from different issues of Bank of Slovenia bulletin published
by Bank of Slovenia. Data were collected from the current account of balance of
payments where they include expenditures in private and business international travel.
Further, there are several measurement tools for income. Song and Wong (2003) stated
that personal disposable income should be used in the analysis when leisure and
holiday demand or visiting friends and relatives tourism is studied, whereas more
general income variables, such as GDP, should be used, if the combination of leisure
and business travel is considered. Therefore, GDP as income measure is used in the
study since we include private and business international travel. Data on GDP are
220
gathered from different issues of Statistical Yearbook of Republic of Slovenia published

by Statistical office of Republic of Slovenia. Data in the study cover the period
between 1994 and 2006, a total of 13 observations. The study assumes that
international tourism demand is immediately adjusted (i.e. in the same year) to the
changes in GDP not including lagged values of international tourism demand behind
GDP.
The first stage of the research involved gathering information on international
tourism expenditures and GDP in Slovenia between 1994 and 2006, while the second
stage of the research involved calculation of regression analysis and income elasticity
of outbound tourism demand. Just a partial model of international tourism expenditures
is conducted in the present study since we do not analyze price effects and other
possible dummy variables as already noted.
At this point we have to stress that the researcher faces himself or herself in
this kind of research with several deciding problems where he or she has to decide on
his or her judgment on which type of data or variables to use to measure income and
international tourism expenditures or which functional form to use. The choice can
always be a matter of debate. There exist several functional forms of regression
analysis which can be used to test the hypothesis. The problem is that theory does not
provide guidance to choose one functional form over the others and selection of
functional form is usually made on statistical grounds (Kerr and Sharp, 1985, 130). In
this study, we decided to estimate GDP impact on international tourism expenditures
by four different functional forms that are most commonly used in tourism demand
studies (Li, Song and Witt, 2005, 88). They are linear, log-linear, log-lin and lin-log
functional forms. Thus, the limitation of this research is the usage of these four
functional forms in investigating GDP effect on outbound tourism demand. However,
Crouch and Shaw (1992) stated that log-linear functional form is more efficient than
others because it yields direct elasticity estimates. On the contrary, Song and Wong
(2003) pointed out that averages of regression analysis in log-linear functional form
does not take into consideration the change in time which is important for demand
forecasting, too. Elasticity is variable in other functional forms, depending on the value
of dependent or independent variable or both (Gujarati, 2003, 190). Further limitation
of the study is the period of time used in the research. We should take a consideration
that each of these decisions can affect the final results.
2.2. Analysis of results
International tourism expenditures of Slovenia increased from 49,7 billion
Slovenian Tollars in 1994 to 203,7 billion Slovenian Tollars in 2006. There was a
constant increase of international tourism expenditures in current prices in Slovenian
Tollars between 1994 and 2006, resulting in 310% nominal increase in the given period
of time. However, there was only 81,5% of real increase of international tourism
expenditures between 1994 and 2006 with a slight decrease in 1997. Figure 1 shows the
movement of international tourism expenditures in the given period of time in constant
prices (1994 = 100). It indicates that Slovenian people are increasingly interested in
travelling abroad for either leisure or business purposes.
221
international tourism expenditure

(1994 = 100, billion Slovenian
Tollars)
Figure 1: International tourism expenditures of Slovenia in period 1994-2006

(constant prices, 1994 = 100)
100
80
60
40
20
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
years
International tourism expenditures were equivalent to 2,68 % of GDP in 1994

and to 2,86 % of GDP in 2006. As depicted in Figure 2, the portion of international
tourism expenditures in GDP in Slovenia has not changed substantially in the given
period of time. The ratio reached the highest value of 2,95% of GDP in 1996 because
the growth rate of international tourism expenditures exceeded substantially the GDP
growth rate. Contrary, in the next years the ratio was falling due to the higher growth
rate of GDP than that of international tourism expenditures. The lowest ratio value was
in 1999 when international tourism expenditures reached 2,53% of GDP. It was
probably partly connected with the introduction of VAT in Slovenia which substituted
sales tax in summer 1999 and led to purchases of some durable and more expensive
goods (i.e. cars) contributing to less tourism expenditures in this year.
% o f international touris m
ex penditures in GDP
Figure 2: International tourism expenditures as a percent of GDP in period 1994-2006

in Slovenia
3
2,9
2,8
2,7
2,6
2,5
2,4
2,3
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
years
222
The impact of GDP on international tourism expenditures between 1994 and

2006 in the case of Slovenia was examined by four functional forms. The results of
regression analysis and autocorrelations detecting test are shown in Table 1.
Table 1: Regression statistics and Durbin-Watson d statistics for four functional forms
in period 1994-2006
Functional
form
Linear
Log-linear
Log-lin
Lin-log
Constant
(t-statistics)
Coefficient
(t-statistics)
-125,626
0,037
(-1,416)
(5,301)
-6,823
1,341
(-2,87180)
(5,327)
4,509
0,000105
(18,170)
(5,361)
-4127,942
473,512
(-4,854)
(5,259)
Test statistics
F
r2
(p-value)
0,719
0,721
0,723
0,037
(5,301)
1,341
(5,327)
0,000105
(5,361)
0,690
473,512
(5,259)
DurbinWatson d
statistics
1,533
1,512
1,552
1,492
The choice of functional forms should be based on economic theory and

statistical specification. Economic theory supposes that GDP and tourism demand are
positively correlated what can be seen from the coefficient positive sign. In our study,
all the four functional forms have positive coefficient; therefore, all of them were
accepted from the economic theory point of view.
Further, statistical specification concerns t-test of statistical parameters, r2 and
F test. All functional forms are theoretically consistent having statistically significant
coefficient for GDP variable. The constant (intercept) is not statistically significant
just in the linear functional form. Further, all functional forms are highly significant at
a 0,05 level as indicated by F-tests. Even determinant coefficients r2 are almost equal.
In addition, functional forms were tested for heteroskedasticity and
autocorrelation. The graphical method using scatterplot showed that heteroscedasticity
was not present in any of the functional forms. Furthemore, autocorelation was tested
using the Durbin-Watson d test which showed that the autocorrelation might be present
only in lin-log functional form because (see Table 1).
Thus, according to Gujarati (2003, 476), time or trend t variable was included
in the lin-log functional form to examine if the relationship between GDP and
international tourism expenditures exhibits trend. Table 2 shows the corrected
regression analysis and autocorrelation detecting test after the trend t was included into
lin-log functional form.
223
Table 2: Regression statistics and Durbin-Watson d statistics for lin-log functional

form in period 1994-2006 with added independent variable trend
Functional
form
Constant
(t-statistics)
Coefficient
GDP
(t-statistics)
Coefficient
trend
(t-statistics)
Lin-log
27699,972
(0,575)
6564,398
(5,076)
-26,689
(-1,161)
Test statistics
R2
F
(p-value)
0,756
15,499
(0,001)
DurbinWatson d
statistics
1,968
After including trend t variable in the lin-log functional form, Durbin-Watson

d test does not suggest autocorrelation in the residuals anymore, but the constant and
trend t coefficient are not statistically significant.
Therefore, after analysis and comparison among the four functional forms was
made, log-linear and log-lin functional forms were decided to be taken for further
discussion. They are appropriate to explain the relationship between GDP and
international tourism expenditures in the case of Slovenia in the given period of time.
At the same time the both functional forms can give us the explanation of income
elasticity of tourism demand which is interpreted in the sequel.
As a result, equations (2) and (3) respectively are given to explain the
relationship between Slovenian GDP and international tourism expenditures of
Slovenia in the period 1994-2006:
ln (ITE) = - 6,823 + 1,341 ln (Y),
(2)
ln (ITE) = 4,509 + 0,000105 * Y,
(3)
Thus, the empirical results show that there is a significant influence of GDP on
international tourism expenditures in the case of Slovenia that can be explained by two
different functional forms. In addition, log-linear functional form suggests that the
income elasticity of outbound tourism demand in period 1994-2006 was 1,34 revealing
that a 1% increase in GDP in the given period of time caused a 1,34% increase of
international tourism expenditures. It indicates that outbound tourism demand of
Slovenian tourists was income elastic. In other words, Slovenian tourists had an elastic
response of demand for travelling into foreign destinations to changes in income
respectively GDP in the given period of time.
Additionally, log-lin functional form is used to calculate income elasticity of
outbound tourism demand of Slovenian tourists for each year of the given period. The
results are given in Table 3.
224
Table 3: Income elasticity of international tourism demand in Slovenia in period 1994

2006 (according to log-lin functional form)
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Income elasticity
(log-lin functional form)
1,28
1,45
1,38
1,36
1,35
1,37
1,31
1,27
1,27
1,26
1,28
1,32
1,38
According to the log-lin functional form (Table 3), income elasticity of

outbound tourism demand was ranging from 1,28 in 1994 to 1,38 in 2006 reaching the
lowest value of 1,26 in 2003 and the highest one of 1,45 in 1995. There was large
fluctuation of income elasticity between 1994 and 1995, while it was relatively less
volatile after 1996. Unfortunately, the 13-year period is too short to make any
conclusion about income elasticity trend for outbound tourism demand. We can see just
some fluctuations across years in the given period of time.
3. DISCUSSION AND CONCLUSION

The paper contributes to the understanding how strong are GDP effects on
expenditures of outbound tourism in the case of Slovenia. International tourism
expenditures are increasingly rising in the last years, representing from 2,5% to almost
3% of GDP of Slovenia. Therefore, international tourism expenditures do not form a
negligible part of GDP spent for outbound tourism. At the same time it is worth being
researched also because there was a decrease in number of domestic tourists and their
overnights in several years after 2000 in Slovenia. It can be derived that domestic
tourism in Slovenia is at the decline stage of the product life cycle, while Slovenian
outbound tourism is at the growth stage of the product life cycle.
Impact of GDP on international tourism expenditures in the period 1994-2006
in the case of Slovenia was analysed by regression analysis. There was found r2 of
72,1% in log-linear functional form and r2 of 72,3% in log-lin functional form. The
value of r2 shows that GDP is in any case very important factor of outbound tourism
expenditures of Slovenian people. F-test of chosen functional forms shows that they
reflect the actual situation well. Thus, the proposed hypothesis is accepted. GDP had a
225
positive and strong impact on international tourism expenditure of Slovenia in the

period 1994-20006.
Additionally, 27,9% respectively 27,7% of international tourism expenditures
variation in the given period of time was due to variations of other variables. Mostly of
them can be attributed to exchange rates. Since there were used different exchange
rates in international tourism expenditures in the given period of time, many of which
were highly variable, they may represent the main variation not included in the
regression analysis. Further, other variables may be attributed to price changes in
foreign destinations since we know that price competition contributes to substation
price cuts. Variation of outbound tourism demand in the given period of time can be
attributed to the expansion of low-cost airlines and other transportation costs (such as
oil prices) as well. In conclusion, the increase of international tourism expenditures
indicates not only economic growth but also peoples desire to visit foreign
destinations.
The paper sheds further light on income elasticity of outbound tourism of
Slovenia. Hence, previous research on income elasticity of tourism demand pointed out
that it was 2,41 on average in the period between 1975 and 1999. Afterward, in our
study income elasticity of tourism demand in the period 1994-2006 was found to be
1,34 on average in accordance with log-linear functional form. Therefore, it is less than
it was found in the above-mentioned study in the previous period of time. It is quite
congruent with the economic theory of income elasticity of (tourism) demand.
Following it, income elasticity of (tourism) demand falls when income or
GDP increases. It can be explained by the fact that higher income or GDP leads to
minor change in tourism demand because of income or GDP change. Income elasticity
of outbound tourism demand above 1 indicates that foreign destinations on average are
considered as luxury destinations for Slovenian tourists. Following the results of the
above-mentioned studies, it is not expected that income elasticity of outbound tourism
demand in Slovenia will decline beyond 1 in the near future that would set outbound
tourism as a necessity good. Unfortunately, against our expectations, there was not
confirmed - using the log-lin functional form - that income elasticity of tourism
demand was falling in the given period of time.
A high income elasticity of outbound tourism demand in Slovenia implies that
demand for outbound tourism is relatively sensitive to GDP respectively economic
situation in Slovenia. Since Slovenia is currently experiencing a continuing growth in
GDP in 2007, we can forecast a continuing growth in outbound tourism expenditures
and a decreasing income elasticity of outbound tourism demand. The results of the
study are important for destination policy makers in Slovenia in providing useful
information about the sensitivity of tourism spending of residents to income changes
since Slovenia and foreign destinations are competing for the same pool of tourists.
Further Slovenian economic development will probably even more decrease
the number of domestic tourists in Slovenia. Therefore, Slovenian tourism industry
should pay attention to future economic activity in Slovenia. New ways of attracting
domestic tourists by creating new strategies and smarter and well-targeted marketing
226
programs are needed to stop the continuing decline of domestic tourism. Otherwise,
Slovenian tourism will probably depend even more on inbound tourism.
In summary, this paper contributes to the literature on tourism demand in
Slovenia by using recently data on Slovenian outbound tourism. At this point we have
to mention the main constraint of the study which is the 13-year old period of time.
Although the period is short it can give us better understanding of relationship between
GDP and outbound tourism demand in case of Slovenia.
The present work could be extended to study income elasticity of outbound
tourism demand across different income groups. Further work could also add new
variables and in this way allow studying exchange rate variations and the changing
global competition in the tourism market that causes price cuts. Furthermore, a research
of how international tourism expenditures compete with domestic tourism expenditures
and expenditures of other goods is required.
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D. Jovicic, V. Ivanovic: ENVIROMENTAL PROTECTIONKEY PREREQUISITE FOR
T.E.I. Thessaloniki
Greece
UDC 338.48:504.03
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
ENVIRONMENTAL PROTECTION KEY

PREREQUISITE FOR SUSTAINABLE
TOURISM ON THE MEDITERRANEAN
Dobrica Jovicic
Vanja Ivanovic
University of Belgrade, Serbia
University of Rijeka, Croatia1
Abstract: The Mediterranean is grown up as one of the most developed tourist regions on the Earth, but
development of mass tourism brought to the big saturation of space, causing environmental problems. As a
consequence, today the Mediterranean is faced with a great challenge: how to preserve natural and cultural
values as a basis for tourism industry and, in the same time, to keep high reputation on the globalized tourist
market. In this work are analyzed the environmental effects of tourism and problems aggravating the concept
of the sustainable development. There are also shown the key measures, that can enable development of
tourism on a sustainable basis. Particular attention is dedicated to institutional and organizational factors
having a crucial role in defining guidelines related to protection and sustainable usage of the Mediterranean
Sea with its coastal area.
Keywords: Mediterranean, environmental protection, sustainable tourism.
Dobrica Jovicic, Ph.D., Associate Professor, The Geographical Faculty, University of Belgrade, Serbia,
Vanja Ivanovic, M.Sc., Assistant, Faculty of Management in Tourism and Hospitality, University of Rijeka,
Croatia.
229
INTRODUCTION
Warm sea, long and warm summers and mild and short winters; quality sand
beaches; attractive island archipelagos; richness of plants; magnificent landscapes;
numerous historical monuments that testimony different cultural cycles through which
the Mediterranean was passing etc., offer excellent possibilities for tourism development.
The Mediterranean grew in one of the most developed geographical unities on
the Earth, where are registered 1/3 of total annual international international tourist
arrivals. Among the first 5 countries that are realized the greatest circulation of foreign
tourists in 2005, 3 are Mediterranean countries: France, Spain and Italy. The major part of
tourist circulation on the Mediterranean is realized in European countries, in relation to
Mediterranean African and Asian countries. In 2005 in European part of the
Mediterranean were registered 158 millions of foreign tourists (19,6% of participation in
the world tourism), whilst the realized incomes were about 140 billions US$ (20,6% of
total incomes in international tourism). The assessment of the WTO declare that the
positive development tendency of the Mediterranean tourism will continue till 2020. The
average annual growth rate of foreign circulation in mentioned period will be 3%, and
this would result over 340 millions of foreign tourists visiting the Mediterranean in 2020.2
1.
TOURISM EFFECTS ON THE MEDITERRANEAN ENVIRONMENT
Tourism in the Mediterranean area has emphasized seasonal and spatial

concentration: in the summer period it is realized over 40% of total annual circulation,
and the majority of facilities and of infrastructure is located in the narrow coastal belt
e.g. in the coastal part of Spain, France, Italy and Greece is realized over 2/3 of total
circulation in the Mediterranean.
Expansive growth of tourist circulation during last 3 decades is followed with
extensive construction of tourist facilities, infrastructural and recreative contents, caused
big saturation of the space and degradation of natural and cultural values of the
Mediterranean littoral, as the basic motives of tourist movements. Extensive construction
of tourist facilities in the narrow coastal belt, brought to the increasing of erosive
processes, changing of authentic appearance of littoral landscape and putting in danger of
biodiversity. For the needs of tourist building, in the period after 1960, about 2/3 of sand
dunes in the Mediterranean part were destroyed. The great numbers of Mediterranean
plants (about 500) are imperilled and there is a danger of their disappearing from this
macro region (EEA, 2003).
Construction of 300 thousands of hotels on the Balearic Islands resulted with
very serious saturation of the space and imperilling of natural environment. In danger is
island region with the greatest intensity of tourist development in Spain, emphasized
relation between number of beds and number of domicile inhabitants, that, according the
figures from 1998, was 373,3 beds on 1.000 of permanent inhabitants. This degree of
tourist development greatly overpasses ecological and social and cultural carrying
capacity of this region, what enables the tourism development on the sustainable basis.
Because of that, the regional and local authority bodies were forced to make more strict
2
available at: www.unwto.org
230
the conditions for the future tourist construction to preserve natural, cultural and
traditional particularities of this region as the basis of the future development.
The undeveloped mechanisms of the environment protection contributed to this
great tourist construction, because only 6% of Mediterranean littoral, including the
islands, are put under the state protection. Even on the surfaces which are declared as
protected, the protection measures are not performed in practice because the tourist
construction processes are intensive. This is quite common in Greece, southern Spain and
Cyprus (EEA, 2003).
Tourist circulation of Mediterranean littoral has emphasized seasonal
concentration, because in the summer period over 40% of total annual circulation is
realized. Season concentration of tourist circulation has economic and ecological
implications. Big concentration of tourists in the season needs great investments and
extensive construction works to build the capacities which will optimally satisfy tourist
needs. On the other hand, if those capacities are not used as they should out of the season,
and this represents the greater part of the year, we need to question about the economic
justifiability of their construction. Also, employment of local inhabitants out of season is
greatly decreased. Emphasized concentration of tourists in the period of the peak of the
season brings to higher pressures on tourist attractions and built facilities which are
conditioned by the space saturation and negative ecological consequences.
Traffic with accompanied infrastructure, as an element and a factor of tourist
movements, is highly responsible for damages that tourism produces in the environment
of Mediterranean littoral. The greatest danger causes motorized tourism because car is
using about 70% of tourist clients in Europe, where the participation of the road traffic in
the tourist circulation of the Mediterranean countries is even more emphasized. The
growth of motorized tourism represents economic welfare for the Mediterranean, but it
results with increasing air pollution, noise and traffic on the main roads and on the
shortcuts, which culminate in the period of maximal concentration of tourist demands.
Ensuring of adequate quantity of water in the summer period is a big problem of
many Mediterranean places because existing supplies of water in the peak of the season
are very often insufficient. The average consumption of water in the littoral centres of
Mediterranean is 400 litres on a tourist day. But in some regions the water consumption
during the summer season is bigger and as a consequence the water shortage is quite
often. However, this valuable resource has to be used in the more rational way.
Working of tourist objects produces great quantity of waste waters which very
often dont have adequate treatment of cleansing and pollute nearby rivers, beaches and
the sea. Cleansing of waste waters is maybe one of the most urgent problems on the
Mediterranean. The evaluation is that about 70% tourist centres of the Mediterranean
drain waste waters in the sea without previous filtering. According the researches made
several years ago, from 1500 of analyzed beaches on the French Mediterranean and
Atlantic coast, every fifth beach doesnt satisfy very strict ecological criteria which will
be obligatory on the EU level from 2015. The main problems are related to elision of
unfiltered waste waters and the great pollution of littoral.3
available at: www.europa.eu.int
231
The treatment and laying down the raw sludge in many Mediterranean centres
are not solved in the adequate way, where tourist staying contributes in making a big
quantity of sludge. The estimations of the World Tourism Organization say that the
tourists in the Mediterranean directly contribute to the production of 2,9 millions tones of
raw sludge annually whilst, according to estimations of future tourism growth on the
Mediterranean, in 2025, the quantity of raw sludge could increase to 12 tones annually as
a consequence of tourist circulation.
In summer the increased quantity of energy is being spent on the air conditioners
to make tourists stay more comfortable during high temperatures, but these devices
transmit phreons damaging the ozone layer, and spend more and more electrical energy.
Growing interest for summer recreative activities contributes to construction and
settlement of marines, yacht storage, aqua-parks, etc. Water skiing, surfing, yachting and
cruising, animate more and more guests and these kinds of activities increase pollution of
the Mediterranean Sea and grow a noise above the level of tolerance.
Cultural, environmental and historical values are also delicate on the exterior
pressures and because of that they have to be often restored which increases expenses of
their opening to the visits. Generally, ecological consequences that produce unbalanced
tourism development in the Mediterranean littoral are manifested on several levels.
Firstly, local inhabitants are faced with many pressures and challenges exhausting of limited natural resources, water pollution and air pollution, increased noise
level, possible ecological accidents.
Secondly, consequences of imperilling of biodiversity and over-pollution of air
and water resources are more and more manifested as well as regional character, which
have influence on the whole Mediterranean.
Thirdly, emissions of pollutants as the consequence of intensive development of
traffic, usage of air-conditioners, disappearance of wood, contribute to the effects of
greenhouse and exhausting of ozone layer, what is the ecological problem of global
character.
2.
THE KEY PROTECTION MEASURES OF ENVIRONMENT AND

CREATION OF SUSTAINABLE TOURISM
Many international institutions and expert teams spent a lot of time, after UN
Conference about environment and development (Rio de Janeiro, 1992), to elaborate
the most important activities for gradual application of the concept of sustainable
tourism. The wide range of related measures and activities which are taken by state
bodies and organization, economy sector and scientific and educational institutions is
very wide and includes following activities: adequate planning, carrying out
legislation, using of economic instruments, performing exploring activities.
Coming from the specific influences of tourism on the environment of
Mediterranean coast, and respecting the fact that those influences very often penetrate in
the influences of other activities which are preformed on the same space, we will show
the most important instruments for successful control of the tourist influence on the
environment in the Mediterranean littoral.
232
The most important instrument represents integral approach to tourism

planning. Since the tourism has always been a complex system, with its planning it is
necessary to integrate the development of all its segments, offer and demand, physical
and institutional elements. Each system would be more functional and more efficient if
we approach to its planning in the integral way, with the coordination of development of
all its parts. Having in mind that tourism is an open system, with its planning its
necessary to integrate tourism in the context of general economic and socio-cultural
development of specific Mediterranean region, its particularities and material resources.
In this way the possibilities of conflicts among great number of subjects who claim to the
same resources in some area, are decreasing.
Benidorm is, for example, littoral community in the province of Alicante in Spain,
with 45.000 inhabitants, where the tourism influences on the environment are managed in
the efficient way. The basis of tourist potential represent quality beaches of the surface 37
ha, clean and warm sea and mild Mediterranean climate. In 1990, local bodies accepted
Strategy Plan of tourism development which was preceded by the design of complex study
of space capacity, environmental characteristics and necessary infrastructure that can follow
the tourist development. The basic objectives of this Plan are directed to the improvement
of infrastructure and to the functioning of public services, preserving of natural and cultural
values and enrichment of offer with new recreative and cultural contents and strengthening
of promotional activities. An integral approach of tourism planning contributes to the
harmonization of tourism and environment of a specific area.4
As regards standards having the objective to fit tourism to capacity of natural
and socio-cultural environment, the most important are:
standards of environment protection (standards of air quality, standards of
drinking water and water for bathing quality, standards of permitted noise level)
that are carried out by the national or international legal acts, and which can be
corrected and intensified depending on concrete situation and problems;
standards of surface to an user of the space and standards of density and of
appearance of constructed capacities, that should be specified by the space and
planned instruments on the regional and local level.
Standards of surface to an user, should be defined according geographical,
eco-systems, social and economic characteristics, number of domiciled inhabitants,
existing infrastructure and constructed buildings of specific part of the Mediterranean
where you can use experience of similar types of spaces in the world and it is necessary
to adapt them to the local and regional characteristics.
Standards of development and of appearances of tourist capacities should
regulated the problems concerning the location, density of construction, size and other
physical characteristics of these capacities, their balanced integration in the natural and
built environment, including even the control mechanisms of their application.
With the simple comparing of the number of disposable beds in hotels and the
space of some area in km2, as indicator of construction density, you cant get satisfactory
results of influences of this kind of construction on the space capacity and on the
available at: www.emeraldinsight.com/insight
233
environment in some Mediterranean region. This would mean, for example, that density of
hotel construction in the riviera of Budva is about 70 beds on km2 of the space. And this is
higher density than in Costa Brava or Mallorca in Spain, which shows that the space
saturation passed upper level of tolerance, with which we wouldnt agree. Because of that
even the standards of density of construction capacities cant be specified on the basis of
some precise mathematic formula but the space component that shows the number of beds
on km2 should be analyzed in the context of geographical and ecological characteristics of
Mediterranean area, tourist equipped objects, realized circulation and the number of
domiciled inhabitants.
Zoning is the most important segment of planning and organization of
Mediterranean tourist destination space, with which, basing on the valorization of
particularities of some space (vegetal, geomorphological, hydrographical, climatic, cultural
and landscape particularities, the state of infra and superstructure, traffic connections), are
established the zones with different purpose and level of usage. Particularly sensitive
surfaces are put in the higher degree of protection where the construction of buildings and
infrastructure is controlled and even excluded. On the other hand, development and
construction are directed to the areas with higher supporting capacity.
In the aim of repelling the negative effects of excessive tourist construction, on
Cyprus a big importance was given on the protection of environment in the last decades.
With the legal acts it is emphasized determination for tourist construction of less density
(not concentrated construction) and the measures for strict and more consistent protection
of coastal space are proposed. According to this, in the coastal space wide 3 km are
signed so called "white areas", as the areas where, because of high degree of space
saturation is temporary prohibited any kind of tourist construction.
The great importance for optimal space planning of tourist development has the
Environment Impact Assessment (EIA) that represents the complex process of
identification, predicting and interpretation of possible influences of some project on the
environment. In mid-80s of the 20th century, the tourist capacities with following
infrastructure had 4.400 km2, and according the long-term plans of tourism development
of the Mediterranean till 2025 the surface caught with tourist capacities would wide on
8.000 km2. It is clear enough that the realization of these projects cant be made without
previous detailed procedure of impacts analysis on the environment.5
Factor of seasoned tourist circulation of Mediterranean littoral cant be avoided
and it is conditioned by the natural advantages for development of summer recreative
tourism but there are some ways to make possible more balanced distribution of demand
during the year and to adapt tourism on the ecological and socio-cultural features of
specific area. It is necessary to choose, to develop and to promote those tourist contents
which will attract the visitors in different periods of year especially in the out seasonal
period. There are manifestations, conferences, etc, as well as addition of dominate
recreative contents of supply in the summer. Enrichment and unifying of supply of the
Mediterranean littoral with the supply and motives in the continental region, together
with adequate billing policy and media promotion, could attract more tourists in those
periods of the year that are not typical for tourist movements.
5
available at: www.eea.europa.eu
234
Ensuring of drinking water, cleansing of waste waters, treatment and delaying

of raw sludge are top problems of tourist centres of the Mediterranean littoral.
However, there are positive examples that show that the mentioned problems could be
positively resolved. In already mentioned Benidorm, drinking water is spent rationally
and water net is quality made. The waste waters are passing the process of purification
and then they are used for irrigation. About 30% of waste waters is purified primary and
70% is purified secondary. As a proof, there is a fact that the consumption of water in the
last years was 200 litres on a user per day. One part of raw sludge is recycled and the
other part is put on the deposit place and it is buried in the ground.
In the aim of better management of road traffic in the Mediterranean macro
region, it is necessary to put apart some practical measures with which all negative effects
on the environment could be minimized.
Prohibition of the new road constructions in the sensitive zones. Tourist place
should have good but controlled traffic access that means that main roads of high degree
of charge mustnt pass through the central parts of tourist places, their recreative areas
and the zones with accommodation facilities.
Prohibition of traffic in the attractive but sensitive spaces and their transformation
in the pedestrian areas. In some Mediterranean places, central tourist places, where are
situated cultural monuments and ambiental units of great value, exclude the traffic, except
bus traffic, whilst the space on the seaside is transformed in to the promenades.
Promotion of public transport and ecologically favourable aspects of traffic. In
order to decrease negative effects of great flow of motorized tourists, in some
Mediterranean destinations there are the actions of stimulation of public transport. If there
is a usage of cars with high technical performances in the public transport or if the cars on
the electrical power are present, the efficiency of those measures is even bigger.
The indicators of tourism impact on the environment are specially significant for
planners and making decisions bodies on the local level, helping them to carry out the
following activities: assessment of the quality of the environment, and estimation of the
level of harmonization between tourism and defined objectives of sustainable development;
monitoring of dynamics and degree of realization of the spatial planning tasks; and
determination of effectiveness and efficiency of the initiated measures and activities.
In order to create an adequate organizational and institutional frame for sustainable
development and environment protection on the Mediterranean, it is desirable to use the
model set by The European Environment Agency. The model, known as DPSIR-model, is
based on the relationship between different human activities (including tourism) and
environment, involving various groups of relevant indicators.
The set of indicators called Driving forces comprises human activities having
serious impacts on the environment (consumption of energy by various sectors and powersupply resources, passenger traffic, goods traffic, catering industry, etc.); The Pressures
are the direct consequences of human activities (use of land, drinking water, ozone
depletion substances, etc.); The Indicators called State imply the actual state of the
environment protection (diversity of flora and fauna species, exceeding the marginal level
of air-pollutants emission, temperature, consumption of oxygen in water flows, quality of
waters for swimming, the level of hygiene at beaches, etc.); Impact shows the effects of
235
pressures on the environment (e.g. imperilled and protected species of flora and fauna). The
Indicators called Response include measures, investments and other instruments showing
reaction on changes of the state of environment (proclamation of protected natural and cultural
areas, consumption of energy from renewable resources, cleansing of waste waters, etc.).
Figure 1.: DPSIR model of environmental indicators
Driving Forces
Pressures
State
Response
Impact
Source: available at: www.eea.europa.eu
3.
THE ENVIRONMENTAL MANAGEMENT SYSTEMS
The systems of environmental management or eco-management systems (EMS)

are part of the overall management systems, comprising organizational structure,
responsibilities, processes, procedures and resources for the development and
implementation of environmental protection policy in a company/enterprise. Their main
function is to provide conditions for consideration of environment-related issues in the
course of making business decisions at all levels of management.
The general properties of EMS include:

Identification of environment-related problems that are likely to occur as a result
of business activities (for e.g., waste water release or accumulation of solid
waste as a consequence of using hotel facilities);
Appointment of subjects responsible for solution of the once identified
problems;
Identification of the degree of availability of technical and financial resources
for problem solution;
Elaboration of the content of the environmental protection action plan;
Close formulation of procedures regulating submission of reports on the effects
of action plan implementation (environmental performance);
Definition of flows of information about the environment;
Specification of activities for monitoring, evaluation, data publishing.6
The introduction of EMS makes it possible for a company/enterprise to resolve

environmental problems in a systematic and economical manner, giving priority to
prevention measures without excluding necessary corrective measures. In such a way, an
organization improves control over environment-related expenditures while, at the same
6
available at: www.iso.org
236
time, reducing the environmental risk. In the past, environmental problems in enterprises
were solved mainly after a negative report of the authorized inspection team, followed by
a subsequent installation of protective devices, which considerably increased the costs of
environmental protection.
For successful implementation of the concept of sustainable tourism on the
Mediterranean, it is necessary to apply not only mandatory regulations prescribed by the
state authorities but also some relevant market instruments that are voluntary in nature.
The aim of the latter, including environmental management systems, is to provide selfregulation through the market, increased competition among environment-friendly
companies, i.e., keeping out the companies that do not show environment friendly
behaviour and are not concerned with the environmental protection.
The first known act of implementation of environmental management in tourism
on the Mediterranean area dates back to 1997, when the Regional Government of the
Balearic Islands initiated the ECOTUR programme, attempting to achieve a better
integration between tourism and environmental protection. It seems reasonable why this
step was first made in this tourist area, given that the development of mass tourism in the
1970s/80s caused a severe degradation to the environment, threatening to permanently
undermine the fundamental substance of its future development. At the same time, the
market battle was slowly being lost with the competing tourist destinations in the
Mediterranean and other regions7.
The implementation of the ECOTUR programme was jointly financed by the
Government of the Balearic Islands and the European Union, the resources of which were
used by 126 hotels previously registered for participation in the programme. The first
significant results were noticed at the end of 2001. By then, all the participating hotels
had already completed the internal evaluation, but more importantly, six of them had
obtained official certificates for their environmental management systems, issued by the
Spanish National Accreditation Team. This made the six hotels the leaders in the
implementation of the environmental management systems in tourism and catering
service business. They publicly expressed a clear dedication to sustainable improvement
of environmental performance of business activities.8
As for the environmental aspects of the business activities the EMS certified
Balearic hotels have so far undertaken, data concerning resource consumption and waste
accumulation are worth mentioning. Statistical data on the consumption of water,
electrical energy and gas per tourist night were made public by all six hotels. They were
highly significant for the estimation of the environmental performance of these hotels
activities. In addition, all certified hotels adopted several objectives for the improvement
of their business: reduced consumption of water and energy, improvement of waste
management, and control over noise level. With respect to other, also important,
objectives (improving the visual impact on the surroundings, decreased emission of
pollutants into the atmosphere, and promotion of natural-source energy), the hotels did
not express commitment to them nor did they declare themselves to be able to achieve
them in near future. Nevertheless, it should be taken into consideration that some of
7
Llobera, M., Rebassa, M., ECOTUR Instalaciones: Implantacion de un Sistema de Gestion y Auditorias
Ambientales en Istalaciones Turisticas, Societat dHistoria Natural de les Illes Balears, Palma de Mallorca,
2001, p.23.
8
available at: www.ukotcf.org
237
these objectives, primarily the visual impact, are difficult to quantify, so the hotels
could not express with certainty a dedication to their accomplishment9.
4.
INSTITUTIONAL FRAME OF SUSTAINABLE TOURISM AND

PROTECTION OF MEDITERRANEAN
Gradual maturation has to be reduced in forming of valid institutional frame for

coordinate operations of Mediterranean countries in the field of protection and
sustainable usage of the Mediterranean Sea and its coastal areas, met its first
concretization in 1975. Then the countries of this macro region concluded in Barcelona
The Convention of protection of Mediterranean Sea from the pollution, known as
Barcelona Convention, and which has, since today, 21 members. Immediately after that,
it is accepted also the Program of implementation of Barcelona Convention entitled
Mediterranean action plan, which include the most important problems concerning the
coastal areas management, pollution assessment and eco system protection. In 1995
starts 2nd phase of coordinated protection activities of the Mediterranean, when the
Barcelona Convention changes its name into The Convention of sea and protection of
Mediterranean coastal areas.
The Mediterranean action plan (MAP) and the Commission for sustainable
development of Mediterranean (MCSD), as a consulting body is formed for more
successful implementation of this plan, with its headquarters in Athens, representing key
institutional factors for performing sustainable development of the Mediterranean. Trying
to make possible an adequate implementation of principles and guidelines of sustainable
development, MCSD was maximally dedicated to the design of the Mediterranean
strategy of sustainable development after 1995. The strategy was adopted after many
years of work, on the meeting by the members of Barcelona convention in 200510.
Mediterranean strategy is frame strategy, which purpose was to adapt
international obligations to regional conditions, giving guidelines for national strategies
of sustainable development and to start dynamic partnership among the countries on the
different levels of development. In the Strategy is emphasized unavoidability of sustainable
development and the only way of surpassing following development challenges: a)
Challenge of preserving environment; b) Demographical, economical, social and cultural
challenges; c) Challenges of globalization, regional collaboration and management.
Starting from mentioned challenges, we define with the Strategy long-term vision
of the Mediterranean as politically stable and prosperous macro region and it emphasizes
importance of 4 objectives: Strengthening of economic development through the
improvement of resources specific for Mediterranean; Minimizing of social differences and
strengthening of cultural identities of local communities; Changing of unsustainable
patterns in the production and in spending; and Improving of management on the local,
national and regional level. In the Strategy are marked 7 priority operating regions,
among which there is sustainable tourism marked as one of the leader economic sector.
Having in mind actual effects of tourism development, the Strategy defines key
objectives which should be achieved in the following period:
9
Llull, G, Introduction to environmental management systems, in: Proceedings Advanced Seminar

Environmental Management of Tourism Activities, November 14-19, 2005, Universitat de les Illes Balears
10
available at: http://www.unepmap.org
238
Decreasing or alleviation of negative space-ecological effects of tourism,

particularly in already existing coastal tourist areas;
Promoting sustainable tourism which integrates social, cultural and economy aspects
of development and leads to successful market valorisation of differences and
particularities of the Mediterranean.
Increase economic effects of tourism on local community, through promotion of
regional pilot projects which shall contribute to better implementation of national and
sub national programs of sustainable tourism;
Improvement of techniques and assets for sustainable tourism management, through
better coordination of public sector activities and of big international tour operators.
5.
INTEGRAL MANAGEMENT OF THE MEDITERRANEAN COASTAL

AREAS
Strengthening the awareness of necessity for integral management of coastal

areas met the complete verification in the Chapter 17, Agenda 21, adopted on the
mentioned Rio Conference. The mentioned chapter concerns the ocean protection, sea and
coastal areas protection and in it, it is explicitly defined a need to implement of integral
management of coastal areas, including the Mediterranean that is a subject of this work.
According the UN definition, Integrated Coastal Area Management is a
process of realization of objectives and tasks related to sustainable development of
coastal areas, adequate to related physical, social and economic conditions and founded
on legal, financial and administrative systems and institutions. Briefly, ICAM means
continuous and flexible process of resource management in the coastal areas because of
realization of sustainable development.
Integrated management of coastal areas is not an exchange for sector planning
(tourism planning or some other activities), but it primarily focuses the importance of
relations between different sector activities to realize more adequate, widen and more
comprehensive objectives. There are in question continuous, proactive and adaptable
management resources processes, directed towards the realization of sustainable
development in the coastal areas.
The coastal areas are areas of reciprocal penetrations, influences and exchanges
between different physical, biological, social, cultural and economic processes and
systems. No matter which, even the slightest change in some of mentioned systems can
initiate series of chain reactions and important changes in other systems, which seem not
be in direct relation with the place of beginnings and with the type of starting change.
The high degree of reciprocal dependent activities/resources explains why the
sector approach of coastal area management wasnt successful and it didnt give satisfactory
results. Each economic activity generates broad spectrum of influences on different
resources of coastal areas, which combination can produce acute problems for resource
basis from which the survival of these areas depends and it can bring to the conflicts of
sector interests. The experience shows that efficient and economic solution for one sector
(economic activities) can be, in economic and ecological sense, harmful for the needs of
some other sector/activity. These experiences are made conclusion that the management of
coastal areas should be based not only on the analysis of individual activities and their
239
influences, but also on the combined effects of sector activities and their influences on the
coast resources.
CONCL USION
The new experts predictions of the WTO predict that the further growth of
tourism on the coastal part of the Mediterranean wont be as intensive as it was during the
last decades of the 20th century, so it will decrease its participation in the total tourist
circulation in the world. On the one hand, it can be explained that damaging natural and
cultural values of the Mediterranean leads to the decreasing of its competitiveness on the
international market. Beside that, the changing of trends on the international tourist
circulation is more and more emphasized, because it decreases a part of mass coastal
tourism, and it itensifies development of tourist movements motivated with the desire for
knowing the specific natural and cultural characteristics of certain space areas.
The realization of mentioned predictions can be useful from the aspect of
environment protection, because with this alleviate the tourism pressures on the natural
characteristics of Mediterranean coast. However, there is still a fact that the growth of tourist
movements towards the Mediterranean, even with slower rhythm, will be continued in the
next period. As a consequence, in front of all participants of tourism process, and particularly
in front of subjects which make important decisions, there is an obligation to improve negative
consequences of former development and making future plans on the quality basis. In our
opinion, in the following period, it is necessary to emphasize following activities:
continuous monitoring and analysis of tourism effects on environment and sociocultural community;
putting the most important natural and cultural estates under more rigid regime of
protection;
initiation of complex programs of education intended to the participants of tourism
process;
intensifying international and regional collaboration, through strengthening of
existing institutional factors (Barcelona Convention, Mediterranean action plan,
Mediterranean commission for sustainable development, Strategy of
Mediterranean sustainable development).
REFERENCES
Apostolopoulos, J., Mediterranean Tourism: Facets of Socioeconomic Development and Cultural Change,
Routledge, London, 2001.
European Environment Agency, Europe's Environment 3rd Assessment, Copenhagen, 2003.
EuroStat, Statistics in focus, Bruxelles, 2006.
European Commmission, Studienkreis Fur Tourismus: Environment and Tourism in the Context of
Sustainable Development, Bruxelles, 1994.
Font, X., Environmental Certification in Tourism and Hospitality: Progress, Process and Prospects, Tourism
Management, Vol. 23 (2002), pp. 197205.
Jenner, P., Tourism in Mediterranean, EIU Research Report, London, 1993.
Jovicic, D., Ivanovic V., Torist regions, Plana-tours, Belgrade, 2004.
Mathieson, A, Wall, G., Tourism: Change, Impacts, Opportunities, Essex, Pearson, 2006.
WTO, Observations on International Tourism, Madrid, 1999.
WTO, Highlights (1995-2006), Madrid.
WTO, Tourism Recovery Committee for the Mediterranean Region (Special Report - Market Intelliegence
and Promotion Section), Madrid, 2002.
Weaver, D., Sustainable Tourism: Theory and Practice, Elsevier Butterworth-Heinemann, Oxford, 2006
240
V. Galicic, S. Ivanovic: USING THE LEARN MODEL TO RESOLVE GUEST COMPLAINTS
T.E.I. Thessaloniki
Greece
UDC 640.4:658.8
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
USING THE LEARN MODEL TO RESOLVE

GUEST COMPLAINTS
Vlado Galicic
Slobodan Ivanovic
Abstract: The demands of guest in the hospitality industry and their satisfaction with the services they have
consumed have become a prevailing competitive tool. Today, the guest as an individual is capable of
damaging the reputation of a hospitality service provider by telling others of his/her experiences of the
shortcoming of services rendered and consumed. Complaints against hospitality establishments are often
calls of attention to the need for improving not only the overall process of preparing and rendering service or
one of its parts but also the entire way operations are organised in a hospitality facility.
What guests really mind and what causes customer-defection is an indolent and negligent attitude of a
hospitality establishment towards guest complaints. In principle, complainants do not have a negative view of
a specific hospitality facility and most guests do not make formal complaints. Instead, they choose to simply
leave a facility when something is not to their liking, never to return, and turn to the competition.
The purpose of this paper is to explain how the objections and formally expressed complaints of guests can
be transformed into stronger loyalty towards a hospitality facility or specific type of service, because guests
who have seen their claims resolved in a satisfactory manner are very likely to tell others of their experience.
To this end, the paper focuses on the LEARN Model for resolving guest complaints against hospitality
services.
Keywords: guest, complaint, hospitality, LEARN Model.
INTRODUCTION
For a better understanding of this paper, the following section provides a brief
overview of the linguistic similarities and differences of the terms that are commonly
associated to the expression of a guests discontent with services rendered.
1
Vlado Galicic, Ph.D. Associate Professor, Slobodan Ivanovic, Ph.D., Associate Professor Faculty of
Management in Tourism and Hospitality, University of Rijeka, Croatia
241
The term claim refers to an appeal, protest, reproach to the quality and
quantity or delivery times of goods or services rendered.2
The term objection refers to an expression of discontent caused by someones
actions or mistake,3 while grievance refers to a written statement against an illegal or
irregular procedure or an expression of dissatisfaction with someones actions.4
Although the terms claim, objection, grievance and complaint almost always
refer to the same thing, the term complaint will be used in this paper as it implies
complaining against someone or something5, or expressing discontent6, and the
officially prescribed form in the Ordinance on the Form, Contents and Manner of
Keeping the Book of Complaints also contains this term.
The statement that guests will turn to the competition because of shortcomings
and problems linked to services does not stand. What makes guests really angry and
causes customer-defection is an indolent and negligent attitude toward their complaints.
No formula exists in the hospitality business that will produce a totally satisfied
guest, because this is simply impossible to do. Although there will always be
complaints, and guests will continuously find new reasons to complain, it should be
underlined that it is far more difficult to win a new client than retain an old one, and
certainly many times more expensive.
For as long as the hospitality industry has been around, guests have always
made various complaints and objections against hospitality staff and facilities.
Objections made to the staff most often relate to the quality of services in hospitality
facilities, the quality-price ratio, amenities, cleanliness, the staffs attitude towards
guests, and then to various other circumstances. Generally, verbal objections are made
more frequently than written objections, and they are more temperate. Written
objections can be found in books of complaint, in the letters of guests to hospitality
managers, and in surveys that hospitality establishments carry out among their guests.
Increasingly, written objections are also appearing in the letters of readers in newspaper
articles, magazines and, most recently, on Web pages (in Blogs).
The research and analysis of these sources of written objections of guests
generated over a longer period have led to a conclusion, that is almost a rule: Written
objections, in whatever form they may take, are almost never limited to only a single
reprimand, that is, the dissatisfied consumers of hospitality services never focus on
only one failing but always tend to lest a number of them. As a rule, dissatisfied guests
who are discontent with a specific segment of overall hospitality services will first
express their discontent verbally to the appropriate person in the hospitality facility.
Providing this verbal objection results in a positive effect for the guest, that is, the
reason for the objection has been removed, the guest will feel no need to write about
this to anyone or anywhere.
2
Anic, V., Goldstein I., Rjenik stranih rijeci, Novi liber, Zagreb, 2005, p. 491.
Anic V., Rjecnik hrvatskog jezika, Novi liber, Zagreb, 200., p. 429.
4
Anic V., op.cit., p. 439.
5
6
3
242
If, however, a verbal objection fails to eliminate the cause, in most cases it
will be followed up by a written objection, considerably more cutting and or of greater
breadth than the verbal one, because, in the large majority of cases, the guest is likely
not to keep only to the main reason of the objection, but will instead list other reasons
of discontent as well to support his written statement. Hence, in almost all written
objections a number of points or matters of objection can be found, although only one
was crucial in instigating the written statement.
The above leads to the conclusion that hospitality establishments must give
their full consideration to verbal objections, show attention and try to eliminate or
alleviate the reasons for the objection. This will help to avert grievances from being
made beyond the hospitality facility and prevent the dissemination of a negative image
of the hospitality facility, as guests are inclined to expound to the people of their milieu
in order to convince them in the rightness of their actions.
1.
NEW VIEWS ON GUEST SATISFACTION
Although most hospitality workers do not enjoy listening to the complaints of

their guests, they must realise that guests also do not enjoy in making complaints. Also,
they must be aware that guests who have not had the opportunity to express their
grievances are likely to tell their friends, relatives and even business partners of their bad
experience. The best technique for handling a misunderstanding with an unreasonable
guest is the explanation technique or fact-asserting technique.7 When a problem is
quickly resolved, it leaves the guest feeling that the staff is there to meet his needs. For
this reason, each complaint is welcome as an opportunity to improve guest relationships.
A psychological approach to resolving all kinds of complaints is an
exceptionally important pointer in dealing with guests, and it can go a long way to
enhancing the image of a hospitality facility. What is most important is that the
complaints of guests are handling by competent people, making the guest feel that his
objections will not be neglected but will be seriously looked into. Taking the
complaints of guests lightly has cost many hospitality establishments a lot of money,
which they have lost in court! Hence, attention should be called to the methods of
handling guest complaints in various cases:8
1. When the guest is in the right:
a) Do not try to skate over weaknesses or intentionally make them seem smaller
than they really are,
b) Specify the reasons that have led to a complaint,
c) Apologise to the guest and express your regret for what has happened,
d) Let the guest know that the hospitality establishment cares about him.
2. When rejecting groundless complaints:
a) Seek to be especially careful and give reasons to support why the complaint is
being rejected,
b) Show the guest the results of the inquest,
c) Give advice in avoiding similar situations in the future.
7
8
Iverson, K.M., Introduction to Hospitality Management, Van Nostrand Reinhold, New York, 1989, p. 151.
Iverson, K.M., op.cit., 87.
243
3. When accepting groundless complaints:

a) Do not keep this fact from the guest, whatever the reason for accepting a
groundless complaint may be (the guest should be made aware that his
objection has no grounds even though his complaint has been accepted),
b) Using tact, make it perfectly clear to the guest that the hospitality
establishment has gone out of its way to meet him halfway.
Complaints may have considerable and unpleasant consequences for all those
involved. Practise has shown that a guest making an objection is usually happier
receiving a sincere and reasoned apology than being offered a drink or some other form
of redress. When handling a complaint, it is imperative for the guest to receive the
impression that he is being taken seriously. In properly assessing a complaint, special
attention should be focused on the guests behaviour while he is lodging a complaint.
While guest complaints that have been made known to the hospitality staff
provide the staff with an opportunity to eliminate any weaknesses in their business,
unarticulated objections are not a good thing for service providers. Not knowing what a
complaint is all about makes it impossible to correct what is bothering a guest. Today,
the dictum Satisfy the guest has a completely different meaning, because guests are
now more educated, better informed, more discerning and aware of their options.
Expecting the appropriate value for their money, they expect more, complain more and
know they can change what they do not like. Not surprisingly then, hospitality
establishments are increasingly focusing on the fact that a timely reaction to guest
complaints plays a vital role in their guest retention scheme.
In this case, consumer satisfaction can be made into a potential marketing tool.
The benefits resulting from efficiently dealing with guest criticism need to be realised,
as the service staff will fall short of performing their role if they do not do their jobs in
a way that will satisfy the guest.9 Managing guest criticism can have a positive impact
on profits, in a number of ways:
Being responsible towards guests helps in maintaining control over guests,

because if their objections or complaints are not resolved to their favour they
are likely to turn to another service provider;
An appropriate policy for resolving complaints and objections can help to
reduce high costs of third-person relationships or demands for compensation
against defects, poor quality services, etc.
And what is most important, the efficient resolution of complaints and
objections can lead to considerable sales to other, new guests.
This process has dual economic effects:

By correcting the underlying causes of mistakes or problems, the quality of
products or services is improved, and each such improvement is, in turn,
reflected in increased sales.
b) There is a drop in the overall costs of resolving guest complaints and objections,
because of the decline in the number of complaints and objections made.
a)
Eiglier, P., Langeard, E., Marketing usluga, (translation), Vitagraf, Rijeka, 1999, p. 48.
244
In the case of frequent complaints, the management needs to develop a

strategy for all departments in which action is planned that will prevent guest
complaints before they happen. This is the way to ensure that guests will get the
product or and service they want, when they want it, against the standards they expect,
and at prices they find suitable and reasonable.10
2.
THE LEARN MODEL IN RESOLVING GUEST COMPLAINTS
To communicate successfully with guests, employees in the hospitality

industry must feel confident and be empowered to resolve the complaints of guests. In
this section of the paper, we will look at the process of resolving guest complaints
using the LEARN Model. This model calls for the following action:
1. Use the LEARN Model to accurately assess guest complaints and to rectify
shortcomings.
2. Act within the framework of guidelines set down by management for
resolving complaints made by guests.
3. Resolve all problems in a professional manner.
4. Inform management about all guest complaints and the manner in which they
have been resolved.
5. Create an atmosphere in the hospitality facility that will encourage guests to
express their complaints without hesitation.
6. Your behaviour should show guests how valuable and important they are to
you in particular, when they are reporting a problem.
When a guests reports about a certain problem or makes a complaint, the staff
generally wants to LEARN what has caused the guest to become upset and to rectify this.
The LEARN Model11 is an excellent way to achieve this, as it represents a specific
process, the application of which facilitates the resolution of guest complaints. LEARN
means:
L (Listen) Listen to the guest.
E (Empathise) Empathise with the guest.
A (Apologise) Apologise to the guest.
R (React) React to the guests situation.
N (Notify) Notify the manager responsible and monitor the process.
The methodology of using this useful tool in resolving guest complaints is
executed through the following steps.
Step 1: Listen
It is necessary to:
Show genuine interest in the guests problem.
Listen to the guest with a service frame-of-mind. Bear in mind that the staff is
there to help the guest.
Find out the facts and how the guest feels and what the guest needs.
10
Lashley, C., Lincoln, G., Business Development in Licensed Retailing (A unit manager's guide),
Butterworth Heinemann, Oxford, 2003, p. 243.
11
This model respresents a modfication of a document of the association Fairfield Inn, USA (June 2003).
245
Step 2: Empathise
It is necessary to:
Enable the guest to appropriately express himself concerning his problem.
Show that you understand the guests feelings.
Explain to the guest that you would feel the same way if you were in his
shoes.
Step 3: Apologise
It is necessary to:
Not take the guests complaint personally. Maintain a professional and calm
attitude.
Apologise to the guest for his displeasure (this can be done without accepting
blame!)
Be sincere.
Step 4: React
It is necessary to:
Pose open and close-ended question, if required, to fully comprehend the
problem.
Offer to help. Put forward options or alternatives, and state what can or will be
done.
Apply the method aimed at defining what kind of response is needed to resolve
the problem.
Let the guest know when the problem will be resolved.
Step 5: Notify
It is necessary to:
Convey all information to the manager in charge who is capable of resolving the
problem, if you cannot resolve the problem by yourself (and then follow-up on
the activities of that manager to ensure that the problem can be resolved!)
Ask the guest if he is satisfied with how the problem has been resolved.
Document and report the situation to avoid the problem from occuring again
The following section focuses on the Service Recovery Model as a logical
sequence of the fourth step of the LEARN Model on how to react to guest complaints.
3.
THE SERVICE RECOVERY MODEL IN RESOLVING COMPLAINTS
The Service Recovery Model will help in identifying the level of service
needed in resolving a specific problem or guest complaint. This model is applied in
Step 4 of the LEARN Model, that is, in the React step. The Service Recovery Model
(Fig. 1) is used to set straight the impaired relationships with guests who are
dissatisfied with services, and it provides an opportunity to transform a tragic moment
into a magic moment!
246
The horizontal axis presents the responsibility or fault of the hospitality

establishment. For example:
Low responsibility of a hospitality establishment would be bad, rainy and cold
weather that prevents guests from spending their day on a nature walk as they
had originally planned.
High responsibility of a hotel would be the staff forgetting to replace towels in
a hotel room.
The vertical axis illustrates the severity of a guests problem. For example:
1. Low severity would be a burned out light bulb in the bathroom of a hotel
room.
2. High severity would be not delivering a very important telefax message that
the guest was expecting.
Figure 1: Service Recovery Model
LOW
RESPONSIBILITY
HIGH
SEVERITY
HIGH
HERO
RED CARPET
EMPATHY
FIX THE PROBLEM
LOW
Source: by the author based on documents of the Fairfield Inn, USA (June 2003)
Based on the identified level of responsibility of a hospitality establishment

and the level of severity of a guests problems, it is possible to provide several potential
options as illustrated in the squares of Figure 1.
1.
Definition of Fix the Problem. This option is used for situations that belong to the
high responsibility/low severity square. The appropriate solution is to immediately
correct the problem at hand. When a guest is given a room but cannot take a
247
shower because the light bulb in the bathroom has burned out, the problem can be
resolved simply by replacing the light bulb.
2.
Definition of Empathy. This option is applied for situations belonging to the low
responsibility/low severity square. In such situations, the right solution is to
empathise with the guest. The guest wants to feel understood and for someone to
identify with the situation he is in. For example, if bad and cold weather is
preventing the guests from going to the beach as they had intended, they should be
told that their feelings are understood, and that it is terrible they cannot go to the
beach today. Then propose some indoor activities that they might enjoy.
3.
Definition of Hero. Situations that belong to the low responsibility/high severity

square call for a hero. The appropriate response is to become a hero in the eyes
of the guest. For example, when a guest forgets to book a table at a good restaurant
and all other locations are booked, use your connections to call the restaurant and
make the reservation for the guest.
4.
Definition of Red Carpet. This option should be used for situations that fall into
the high responsibility/high severity square. In other words, when the hospitality
establishment has really bungled it! The appropriate solution is to roll out the red
carpet and treat the guests like royalty. For example, when a room attendant
accidentally drops a diamond ring down the bathroom drain, immediately stop all
activities and focus exclusively on this problem! Call the Maintenance service at
once and offer to have the ring professionally cleaned after it has been retrieved.
In some situations, it is not the hospitality facility but the presence of other
guests that may be the cause for unpleasant guest experiences. For example, complaints
about noise coming from neighbouring rooms or about the uncivil behaviour of other
guests in the hotels public rooms may be reasons for guests to demand redress for
disagreeable experiences. In a hospitality establishment, three key situations may occur
in which it is vital to apply the smoothing and deduction process:12
1.
2.
3.
when the service provider has made a mistake,

when the shortcomings are linked to the hospitality establishment (ambience,
technology, equipment and devices),
when the problem is linked to the guests the service users.
Here the term smoothing and deduction is used to refer to a drop in sales
revenues as a result of discounts granted to guest because of: 13
1.
2.
mistakes made in registering the turnover realised, or

indemnification made to guests because of a hospitality establishments
shortcomings.
12
After Hayes, D.K., Ninemeier, J.D., Hotel Operations Management (Upravljanje hotelskim poslovanjem prijevod), M plus, Zagreb, 2005, p. 181.
13
Hayes, D.K., Ninemeier, J.D., op.cit., p. 558.
248
For example, the total amount of smoothing and deduction relative to the
overall revenue from sales of food and beverages can be calculated for a specific period
using the following formula:
Total monthly amount of smoothing and deductions
---------------------------------------------------------------- = % of smoothing and deductions
Total revenue from food and beverages
1.
2.
3.
This amount will depend upon a number of factors, the most important being:
the age of a hospitality establishment and how well it is equipped and furnished,
the expertise of a hospitality establishments management and its production and
service staff,
the properties and characteristics of a hospitality establishments guest.
The person in charge of a hospitality establishment must know, at all times, how
high this percentage of smoothing and deduction is, although it would be preferable if
he/she were able to uncover the reasons behind any increase in this amount in the
observed period.
CONCLUSION
When guest complaints are handled in a timely and proper manner, they can
become an important source of information concerning the level of service quality in a
hospitality facility. Complaints that are resolved in a constructive way can be
transformed into a positive experience, tying a guest even closer to the facility in
question. However, total quality is impossible to implement without an appropriate
process in place that will make all employees aware of the positive aspects of guest
complaints. In other words, every hospitality worker needs to acquire such a level of
education that will enable him to see guest complaints as a valuable source of
information about quality achieved rather than as a skirmish between a guest and a
hospitality facility or any of its parts.
These forms of education, which need to take into account staff incentive, will
help workers to resolve or prevent potential problems. From the guest perspective, good
service increases the market value of services of equal quality, and it enables hospitality
facilities to stand out from their rivals by providing good and better services.
As a result, many opportunities and temptations will arise, because as soon as
someone comes up with a product or service to attract customers, their rivals begin to
compete in trying to do it better.14 The outcome of this will be an increase in the
standards of preparing and providing services, and in this increase, what will
distinguish one hospitality establishment from another is the attention attributed to the
timely and appropriate resolution of guest complaints. This is the arena in which
hospitality establishments will wage war with their rivals in the future. In this battle,
the LEARN Model in resolving guest complaints can prove to be of great assistance.
14
Cetron, M., Changing customers, changing strategies, IH&RA 36. Congress Report, Paris., 1998, p. 5.
249
REFERENCES
Anic V., Rjecnik hrvatskog jezika, Novi liber, Zagreb, 2007.
Anic, V., Goldstein I., Rjecnik stranih rijeci, Novi liber, Zagreb, 2005.
Cetron, M., Changing customers, changing strategies, in 36th IH&RA Congress, Proceedings, Paris, 1998.
Eiglier, P., Langeard, E., Marketing usluga, (prijevod), Vitagraf, Rijeka, 1999.
Hayes, D.K., Ninemeier, J.D., Hotel Operations Management, M plus, Zagreb, 2005.
Iverson, K.M., Introduction to hospitality management, Van Nostrand Reinhold, New York, 1989.
Lashley, C., Lincoln, G., Business Development in Licensed Retailing (A unit manager's guide), Butterworth
Heinemann, Oxford, 2003.
250
V. Bevanda, J. Grzinic, E. Cervar: ANALYSING THE USERS` PERCEPTION OF WEB
T.E.I. Thessaloniki
Greece
UDC 658.8:004.738.52
Prelimminary communication
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
ANALYSING THE USERS` PERCEPTION OF

WEB DESIGN QUALITY BY DATA MINING
TOOLS
Vanja Bevanda
Jasmina Grzinic
Emanuel Cervar
Juraj Dobrila University of Pula, Croatia1
Abstract: Several authors indicated the existence of different relative importance of each web site quality
factor across e-business domains and between stakeholders. They also found the correlation between web site
quality and e-business performance . The website with the highest quality produced the highest business
performance. Therefore there is a need to constantly monitor users behavior and their requirements in
different e-business sector towards better web site design.
The aim of this research is to explore possibilities of classification data mining tools to support and automate
process of discovering users` perception of web site design quality factors. In order to do that we collected 81
cases that serve as an input for inductive reasoning. We applied modified ID3 algorithm and induced the
most informative attributes and rules describing users` perception of web design quality for online travel
agency. The findings can provide the management and web designers with useful insights to enhance and
refine their business performance.
Keywords: Web design quality, Evaluation, Online travel agency, Inductive reasoning, Data mining
technique, Classification.
1
Vanja Bevanda, Ph.D., Assistant Professor, Jasmina Grzinic, Ph.D., Assistant Professor, Emanuel
Cervar, Graduate student, Juraj Dobrila University of Pula, Department of Economics and Tourism Dr.
Mijo Mirkovic, Pula, Croatia.
251
INTRODUCTION
Past development of network technology and Internet itself resulted in
numerous changes not only in business, entertainment, education and society in
general, but also in the process of software development. The World Wide Web is one
of the most relevant driving forces in the commercial usage of the Internet. It is an
important factor among the Internet applications although it still has a relatively small
quantitative importance compared with the traditional transactions. The number of web
sites and their size are increasing2 but the web sites developments are undertaken with
only limited resources (time and money) As a result, many sites are poorly designed
and do not meet customers requirements.
The field of design in new media promotes interdisciplinarity and
multidisciplinarity and requires research and processing of recent scientific discoveries
in several connected areas (technical sciences, humanities and design). Owing to the
Internet, tourist portals and networks for information exchange, individuals, agencies
and tour operators have a real time control over free capacities anywhere in the world.
Airlines, rent-a-car services, trip organizers and animators also take part in all that.
Planning destinations has never been easier. In the modern world the web design of a
tourist organization has become one of the key factors for its successful business
Much has been written about the design of websites from the human
engineering, user interface, training, business, and usability perspectives. Many works
are available, as well as extensive online sites with the guidelines covering design
aspects such as readability, appearance, ease of navigation and searching, accuracy and
reliability, etc. Existing Web page design guidelines often offer the same advice for all
types of websites, regardless of their purpose (Susser& Ariga: 2006). There is no doubt
that the site must be designed to fit the audience. The Web site development requires a
user centered design process with permanent evaluation the evolving design against
user requirements.
Another complicating factor is the fact that the WWW is an extremely
dynamic environment. Site design options change very fast and must be redesign with
each technological wave. We try to facilitate these activities with extensive use of data
mining tools that extracts meaningful patterns and behavior models for small segment
of users and do that very quickly and easy. We applied modified ID3 algorithm and
induced the most informative attributes and rules describing users` perception of web
design quality for online travel agency. The findings can provide the management and
web designers with useful insights to enhance and refine their business performance.
1. METHODOLOGY
Besides the importance and accessibility of Internet, web design is crucial to
all tourism companies. As opposed to companies operating in other activities, tourist
2
In 1994, there were only 3000 web sites on Internet, and a few years later, the number was increased to 4.27
millions and 1.5 million web pages were born daily (Gonzales& Palacios: 2004).
252
organizations depend on seasons, having peaks in the number of users during high
seasons, whether summer or winter, and significant drops after the season. In tourism
users expect the locations to meet their needs and be consistent, reacting well to the
geographical location, their language, technology and wishes. It is therefore
differentiated through attractive flash animations, tailored web programs: system for an
independent control of destinations, accommodation, arrangements and last minute
offer. The design is most frequently adapted through logotypes, basic photos and
number of pages and languages.
The web design quality research on tourism industry-specific issues have not
reached a consensus on what makes a tourism site effective (Susser& Ariga, 2006).
Survey of previous research in this field has shown that Web sites evaluation studies
tend to rely on expert assessments or predetermined benchmarks and on the tangible
aspects of a web sites rather than on consumers options (Park & Gretzel: 2007). Owing
to communication and information technology, it is possible today to make bookings,
orders and check capacities almost automatically, as well as keep track of it all through
Internet. Smaller businesses (for example tourist agencies) use services of other
companies designing web pages for them, while larger businesses (tourist companies,
tour operators) have their own IT department, including a web designer. Statistics
say that almost 50% of tourist services users use Internet to get information or book
and pay for their trip or vacation.
Web designers, especially in a tourism field, have a difficult job which
requires a lot of effort, creativity, originality and which, above all, has to result in a
catchy page that will attract the user of tourist services more than a page from
competition. The importance of a simple but attractive look of a web page is one of the
key factors to a successful business of a tourist organization (Kaplanidou& Vogt,
2006).
Unfortunately, it is not enough to simply offer a quality presentation on web
pages or prepare online booking in hotels. Modern tourists want everything in a
package, from all inclusive hotels, to included trips, sports and recreational contents,
entertainment and night life. It all has to be united in one package and presented to the
market using modern communication technologies.
In our research we consider the application of another approach from the
previously done in this field. The aim is to facilitate the process of describing users'
behavior using data mining tools. This tool extracts meaningful patterns and builds
predictive customer-behavior models that can serve as an aid in decision making. It is a
largely automated process sifting through data sets to detect useful, non-obvious, and
previously unknown patterns or data trends. The emphasis is on the computer-based
exploration of previously uncharted relationships (i.e., using machine learning
methods that typically require only limited human involvement). This technology
offers enormous gains in terms of performance, speed of use, and user friendliness
(Magnini et all.: 2003). We performed analysis of customer behaviors when evaluating
the web site design of online travel agency. Discovered findings can help managers and
designers to spot trends quickly that can be applied to future web design development
and adjustment.
253
In order to accomplish the above mentioned goal we developed a

questionnaire where we identified the main factors considered as determinates of web
site design quality found in previous studies. After that we performed a field study with
two small groups of students who had a task to evaluate tree web sites of Croatian
online travel agencies. The resulting survey serves as an input for knowledge-based
system applying case based reasoning in order to find pattern in users` behaviors.
2.
WEB SITE DESIGN

COLLECTION
EVALUATION
FACTORS
AND
DATA
Research of tourist demand on the international tourist market proves that it

has become more important for tourists how to spend an unforgettable holiday than
where to spend it. Special events have to become a tourist product designed especially
for tourists, which is already the case in successful tourist destinations in order to
appear different on the market and create or strengthen their image and create a
recognizable brand. In such cases the support of web design becomes crucial.
There are different ways in which clients reach the web page of a tourist
facility, like direct access to a certain page, after which one reaches the web page
through various advertisements or banners on portals. There is a high probability that
some of the surfers will be interested in tourist services because of reached popularity.
One of the most popular and simplest ways to reach a certain page are the search
engines among which Google is the most popular. Naturally, tourist businesses have to
pay a fee to have a banner on a portal, while Google charges for some key words which
will make the searched web page appear among the first in the search results.
Several evaluation studies have been conducted related to tourism Web sites
(Park& Gretzel, 2007) using a multitude of approaches that range from expert
judgments to consumer surveys to automated evaluations by crawler technology. These
studies have identified a myriad of possible factors. The past research seems to have in
common a general agreement that assessing a Web sites effectiveness requires
multidimensional instead of one-dimensional evaluation approaches and measures.
The number, labels, and definitions for these dimensions differ across the
various studies, making it difficult to compare findings and identify factors that have
consistently been used for evaluation. This situation has led to little progress in our
understanding of key factors that should be included in evaluation frameworks.
Park and Gretzel, 2007, presented web sites evaluation measures from 53
tourism papers published in journals and proceedings from 1997 to 2006. They
identified nine common factors that appear to form the basis of the majority of studies
related to tourism sector. These factors are: Ease to use, Responsiveness, Fulfillment,
Security/ Privacy, Personalization, Visual Appearance, Information quality, Trust and
Interactivities.
Booking and payments for tourist arrangements on-line is an established
practice abroad, while in Croatia it is all relatively new. It is predictable that the
254
number of services available on-line will continue to grow every year, not only in order
to provide clients with more services but also to keep up with the competition.
Nevertheless, the most important tourist agencies and tour operators in the
Republic of Croatia have been offering these services for a couple of years. It is still a
usual practice that the on-line system enables users to book and pay for accommodation
and food in tourist facilities, group and individual travels, traveling tickets for all kinds
of means of transport, outings and renting of cars or boats.
Since the aim of this paper was supporting web design evaluation in sector of
online travel agencies, not their web effectiveness, it was reasonable to restrict the
analysis to several factors related to design. Students who were asked to evaluate
selected web sites do not have any or had modest previous online shopping experience,
and they visited selected sites in one session. It was not possible for them to evaluate
two factors from the previous list: Security/Privacy and Trust.
Instead of these two indicators, server availability and speed of downloading
appeared as very important limitation in Croatian environment. We included that in our
consideration by adding a factor named "Accessibility". The final list of key web
design evaluation factors with their description are given in Table 1.
Table 1. Web design evaluation factors with their description
Key Factors
Description
Visual Appearance
Site attractiveness, Aesthetics
Ease of Use
Logical structure
Fulfillment
Noticeable of special offerings
Navigability
Ease of navigation
Accessibility
Server availability and downloading speed
Personalization
Existing of advanced search function and customization
Interactivity
Use of multimedia in representing offering details
Information quality
Content presentation and currency
The subject of the study was a small group of students` population (30
students from Juraj Dobrila University in Pula) comprised of an equal number of males
and females with an age range of 1921. Each student was asked to compare three
websites considering the site as a whole. The sites selected represent three commonly
used Croatian online travel agencies.
Data collection took place in a controlled setting. University computer labs
with one computer per subject were utilized. All subjects were given instructions and
began the survey at the same time. The students were instructed to wander through
each site as if they were searching for information using their regular surfing behavior.
They were instructed not to complete the evaluation of the site until they had navigated
255
through the home page and at least three sub pages of the site. Students were
supervised to minimize any discussion.
The web sites were measured using a three-point rating scale from 3 to 1,
where number 1 means the best solution. An initial draft of the questionnaire was
pretested. In their refinement, we restricted the number of initial factors and we added
the factor "Accessibility" that appeared as very important. To avoid possible confusion
with number meaning, we offer their "soft" measures description in scale from worst to
the best attribute for each factor in the questionnaire. The list of factors with their
values is given in table 2.
Table 2. Evaluation factors and their values
Name
Value 1
Value 2
Value 3
Web design quality

(on line travel agency)
poor
average
Very well
Visual Appearance
(Attractiveness)
unattractive
Like others
Strong eye appeal
Ease of use (Logical

structure)
unclear
Table of content
Clear structure
Fulfillment
Navigability
Accessibility
Personalization
Interactivity
unobservable
hard
slow
Non-existing
Not exist
available
With effort
With patience
unhelpful
Only few
noticeable
easy
fast
Easy to find
Too many
Information quality
poor
adequate
rich
After removal of 2 incomplete surveys, we got evaluations from 27 students

for three web sites. They showed us which web sites are perceived as prestigious and of
quality, but we still do not know why they reached that conclusion.
3. DATA MINING WITH INDUCTION ALGORITHMS

The original ID3 algorithm was introduced by Quinlan (Quinlan: 1992). It is a
type of machine learning in the form of decision trees. Non-incremental unsupervised
learning is used. In unsupervised learning each observation within a set is described
by the same set of attributes, and this forms the nature of the input information. In the
non-incremental, the system deals with finite set of observations () it is possible to
determine the complexity of the algorithms, and this is useful in resolving real
applications. However, if the authors want to consider a new observation within the
256
system, it is necessary to process the whole set of observations again. (MartnezEnrkez and Eschalada-Imaz: 1998).
The following modified ID3 algorithm is used to build a decision tree, given a
set of non-categorical attributes C1, C2, .., Cm, the categorical attribute Ci, and a
training set C of records. Functioning of ID3 algorithm can be described as the
following pseudocode (Quinlan: 1992): Function ID3 (: a set of non-categorical
attributes, Ci: the categorical attribute, C: a training set); begin If C is empty, return a
single node with value "Failure"; If C consists of records all with the same value for the
categorical attribute, return a single node with that value;
If is empty, then return a single node with as value the most frequent of the
values of the categorical attribute that is found in records of C; Let Ci be the attribute
with largest Informativity Ib(Ci,C) among attributes in ; Let {wi| i=1,2, .., m} be the
values of attribute Ci; Let {Ci| i=1,2, .., m} be the subsets of C consisting respectively
of records with value wi for attribute Ci; Return a tree with root labeled Ci and arcs
labeled a1, a2, .., am going respectively to the trees ID3( -{ Ci }, Ci, C1), ID3( -{ Ci
}, Ci, C2), .., ID3( -{ Ci }, Ci, Cm); end Determining informativity (Ib) of attribute b
is as follows: Let C the set of cases in node, a the benchmark, a1an its values, and
wa1wan (i wai = 1) their rates in set C. Then entropy of benchmark in set C can be
written: EC = i wai logn wai. Let b1bn the values of attribute b, is a set of them.
Disjoint into not empty susbsets called 1m. Then i i = . Disjoint C into subsets
called C1Cm being attribute b of all elements of Ci in i for each i. Let wi the weight
of Ci in C. (i wi = 1). Then Ib = EC i wi ECi, in words informativity is an increment
of entropy resulted from disjoining 1m. Real output of computing is Ibmax of
optimal selection.
4.
THE USERS` PERCEPTION OF WEB DESIGN QUALITY BY

INDUCTION ALGORITHM
For exploring possibilities to support analyzing the user's perception of web

design quality, we use a questionnaire as an input into knowledge-based system shell
called Doctus. For induction Doctus uses a ID3 algorithm described above.
Doctus uses symbolic artificial intelligence for three types of reasoning:
deduction, induction and reduction. It is able to cope with tacit and implicit rules at the
same time, so decision makers can clearly see, using if then rules, the satisfactory
solution (then and there). It reasons both deductively and inductively, so it enables the
user to check on the model graph why the chosen solution is in the given case most
appropriate.
With Doctus it is possible to recognize the relations between the data and
selection only the needed rules to the decision maker (Baracskai et all,: 2002.)
The collected answers served as an input for case-based reasoning (induction
algorithm). The following pictures are an excerpt from knowledge-based that consists
of 81 cases (Figure 1and 2.).
257
Figure 1.: Doctus`s screen with Cases
258
Figure 2.: Cases excerpt from knowledge base

1a
1b
1c
2a
2b
2c
3a
3b
3c
4a
4b
4c
5a
5b
5c
6a
6b
6c
7a
7b
7c
8a
8b
8c
9a
9b
9c
10a
10b
10c
Web design qVisual AppeaEase of use (LFulfillment Navigability

easy
very well
strong eye aptable of contenoticable
easy
average
like others
clear structur available
poorly
like others
table of conteunobservableeasy
poorly
inattractive table of conteavailable
hard
average
like others
table of conteavailable
hard
very well
strong eye apclear structur available
with effort
poorly
inattractive table of conteavailable
hard
average
like others
with effort
easy
very well
strong eye aptable of conteavailable
poorly
inattractive unclear
unobservablehard
average
inattractive table of conteunobservablewith effort
very well
like others
unclear
available
with effort
with effort
very well
average
unobservableeasy
poorly
like others
table of conteunobservableeasy
poorly
unobservablehard
very well
like others
table of contenoticable
hard
average
like others
hard
average
available
hard
poorly
like others
with effort
poorly
unobservablehard
easy
average
like others
poorly
available
with effort
very well
strong eye apclear structur unobservablehard
very well
strong eye apclear structur unobservablewith effort
easy
average
like others
poorly
noticable
hard
very well
easy
poorly
unobservablehard
average
like others
with effort
AccessibilityPersonalizatiInteractivity
fast
easy to find to many
slow
unhelpful
to many
slow
nonexisting only few
slow
unhelpful
not exist
with patient unhelpful
only few
fast
easy to find only few
slow
unhelpful
not exist
slow
unhelpful
not exist
with patient easy to find to many
only few
only few
fast
fast
with patient nonexisting only few
slow
slow
nonexisting not exist
slow
unhelpful
only few
with patient easy to find only few
only few
not exist
not exist
fast
not exist
with patient nonexisting to many
not exist
fast
easy to find only few
slow
nonexisting to many
with patient easy to find to many
fast
unhelpful
not exist
slow
Information q
rich
adequate
adequate
poor
adequate
adequate
poor
poor
poor
adequate
adequate
adequate
rich
poor
adequate
poor
poor
poor
rich
poor
poor
adequate
adequate
rich
poor
adequate
rich
adequate
259
rich
poor
After inductive reasoning we got the resulting decision tree. Figure 3 presents
the decision tree describing the users` (students`) perception of web design quality
factors. It can be described by the rules as follow: "If "Visual Appearance
(Attractivness) has value "strong eye appeal" in surveys, than Quality of web site
design has value "very well" or "If "Visual Appearance (Attractivness) is "like others"
and "Fulfilment" is "unobservable", than Quality of web site design is "poorly".
Figure 3.: Decision tree describing users` perception of web design quality factors for
three online travel agencies
For practitioners, the implications of these results reinforce what many site
designers have tried to articulate: make it simple. Adopting a minimalistic approach to
the design of the home page with eye-catching but appropriate graphics and categories
that draw the web surfer further into the site appears to be more effective.
Web design should not result in information overload. The goal, rather, should
be to give access to the information web surfers desire in the most expedient way
possible. Hence, the design goal should be access not abundance. Simplicity of design
should be a major consideration as it not only makes the site more appealing, but also
makes it far faster to load. Web surfers are not a patient group. It is not, therefore,
surprising that slow loading sites are a major frustration and turnoff for web surfers.
Another prerequisite is to make the website attractive. A website with an identity will
appeal to web surfers, differentiate the company and make the site more memorable.
RESULTS AND DISCUSSION

One of the constant themes of site development guides is that the site must be
designed to fit the audience. This means that the design fitting the user will continue to
260
be the main prerequisite for tourist agencies to be working online. In an environment

offering wide choice, the users will not remain at sites that do not meet their needs. The
user simply abandons a site with a confusing interface or a site which is too slow.
Many sites have multiple segments to which they cater. If preferences are
distinctly different among different segments, different options might be made
available to different groups. What must be determined is how much flexibility must be
built into website content to satisfy the increasing diversity of users.
A major complicating factor to all of this is the fact that the web is an
extremely dynamic environment. Site design options change with each technological
wave. By providing site designers with a better idea of how to facilitate interacting
through the cognitive landscape of the web, simplicity may be more effectively
accomplished.
Research results confirm that the Web will not satisfy all the needs of its users
it will be enough for a site to gather a good number of visitors or offer content no
other site is offering. From the web designers perspective, one of the early activities in
web site development process are to define the business objectives, the intended
context of use and key scenarios of use. This helps prioritize design and provides a
focus for evaluation. Web site development requires a user centered design process
with permanent evaluation of the evolving design against user requirements.
One of the greatest advantages of the kind of business described in the paper is
the huge amount of content. The key factor in web designing is marking safe pathways
through information so that such an amount of content does not represent a problem.
Guides professionals will filter the information, evaluate the content, act as
guides and even guide groups on tours. We facilitate these activities with extensive use
of data mining tools that extract meaningful patterns and behavior models for a small
segment of users and do that very quickly and easily.
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Quinlan, J. R. (1992) C 4.5: Programs for Machine Learning. Morgan Kauffman, ISBN 1558602380.
R. Law and J. Wong, J. & R. Law (2003) Successful Factors For A Travel Web Site: Perceptions Of On
Line Purchasers In Hong Kong, Journal of Hospitality & Tourism Research, 27(1): 118 - 124.
Tania C. Lang, T. C.0 (2000) The effect of the Internet on travel consumer purchasing behaviour and
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Tourism and Hospitality Management, Vol. 14, No. 2, 263-270, 2008

D. Gracan, R. Alkier Radnic, S. Bogdan: RESTORABLE ENERGY SOURCES AS A FACTOR .
T.E.I. Thessaloniki
Greece
UDC 338.48:620.91](4975)
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
RESTORABLE ENERGY SOURCES

AS A FACTOR OF THE COMPETITIVE
IMPROVEMENT ABILITY OF A TOURIST
DESTINATION
Danijela Gracan
Romina Alkier Radnic
Sinisa Bogdan
Abstract: Energy supply represents not only the energetic and ecological undertaking factor of tourist
economy bearers, but the factor of profitability and competitiveness within the foreign tourist market as well.
Lower energy costs form the prerequisites for higher profit accomplishments, as well as better market price
competitiveness.
Instead of exploiting natural resources, tourism should make the most of them, which brings into relief the
directing of tourist economy subjects towards the use of restorable energy sources, particularly solar and
wind energy. In spite of favourable climate features of Croatia, expressed in terms of insulation and windstrength, the restorable energy sources are still used rather insignificantly. Some positive moves in such a
trend are noticeable on the island of Pag and in the town of Sibenik, where the electric energy is obtained in
wind power-plants. In accordance with the concept of sustainable development of tourism, both solar energy
and wind-mill energy should represent the skeleton for the energetic supply of the Croatian tourist coastline
in the future. And only then, with the right amount of energy and without dependence on the world energetic
markets, Croatia can develop its own healthy economic and tourist future.
Keywords: restorable sources, passive energetic standard, competition.
1
Danijela Gracan, Ph.D., Assistant Professor, Romina Alkier Radnic Ph.D., Assistant Professor, Sinisa
Bogdan, B.Sc., Assistant, Faculty of Tourism and Hospitality Management, University of Rijeka, Croatia.
263

INTRODUCTION
The contemporary approach to the tourism development is characterized by
the rational energetic and ecological consideration, as the part of the sustainable
development concept. This includes the implicit application of differential restorable
energy sources (bio-mass, geo-thermal energy, sun energy, wind), as well as the
implementation of specific energetic and ecological methods of projection and building
technologies, when, subsequently, due to the contemporary drafting solutions, energetic
effective materials, and the equipment elements, the energy is economized and the
considerable ecological contribution (passive houses) is obtained.
By making good use of natural resources rather than taking advantage of it,
along with the highly developed senses of their significance among all those included
in the tourist events, the contribution is made to the concurrency of the tourist
destination, with its development based on the naturally preserved surroundings and
therefore purposefully using the appropriate energy sources. The energy economizing
is nowadays oriented towards the application and promotion of clean technologies,
energetic efficacy and the use of restorable energy sources, consequently aiming at
surroundings protection. Simultaneously, this should be the orientation of the tourist
destination as the energy consumer. Therefore, the implementation of the contemporary
measures of the energetic efficacy as well as the use of the restorable energy sources
should be one of the developing lines of direction of any tourist destination.
1.
RESTORABLE ENERGY SOURCES IN CROATIA AND IN THE

WORLD
The more and more pronounced raise in value of fossil combustible as well as
the exploiting of their sources both indicate the necessity of replacing the restorable
energy sources for the conventional energy sources.
The worldwide energy consumption for the period from 1995 through 2005
shows the average annual growth of 2.4%. The world energy production grew from
34.5 trillion kWh to 43.6 trillion kWh in 2005. Oil and oil derivates remained the most
important energy sources in 2005, participating with 36.8% in the total amount of the
primary energy sources, although this represents somewhat lower part than the one in
1995 (39.0%).2 Simultaneously, a big step forward was obtained in use of the restorable
energy sources, particularly in wind energy. Harnessing of geothermal, solar and wind
energies, as well as the bio-mass for the period from 1995 through 2005 obtained
considerable growth from 172 billion to 370 billion kWh, i.e. a growth of 115.1%,
participating with a share of 0.93% in the total world energy production for the year
2005 (the 1995 participating share was of 0.6%).
Aggressive promotion in building and use of sustainable energy sources
brought to different significant results. Wind use in energy production is becoming
energetic reality, followed by the required capacity construction. The correlation of the
2
International Enery Annual 2005, http://www.eia.doe.gov/iea/overview.html (2007-09-12)
264

technological development and the possibilities of commercial use bring to the growth
in installed energy, noise reducing, and lower costs of wind power-plants, as well as to
the better application of sun energy (consumer water heating, obtaining of electric
energy, internal space heating, ). If particular restorable energy sources are
contemplated, the following effects can be observed:3
wind: increase of windmill construction brings to the growth in power

units and decrease in investment costs,
bio-mass: applicable in electric energy production, heating, and traffic,

with achievements in the technological progress,
sun: increase in in-built collectors with the average annual growth of

13%, and in solar cells of 27%. The dominant construction technology of
solar cells consists of use of silicon, with constant grow of new ideas, as,
for instance, the utilization of amorphous rather than crystal silicon, cells
in copper-indiumgallium-selenium (CIGS), dye-sensitized solar cells,
and flexible solar cells,
geo-thermal energy: growth in capacity of 44% for the passed period, in

electric energy production of 48%, in thermal capacities of 76%, in space
heating production of 70%,
small hydropower plants: constant growth in production with minimal

changes in technological development.
The Strategy of Energetic Development defines the goals of using the stated
restorable energy sources in Croatia. In accordance with the general trend in the
countries within the European Union the overall produced energy from the restorable
sources is predicted to grow from 75 PJ in 2000 to 100-160 PJ (depending on the
suggested scenario) in 2030.4
Researches show that only the smaller amount of the disposable bio-mass is
used in Croatia, although it disposes of conspicuous bio-mass potential for the
production of energy. With production of energy from bio-mass and waste up to the
15% of the total consumption of the primary energy could be provided for until 2020,
for which real potential exist in Croatia.
Solar energy is considerably less used in Croatia than its natural and technical
possibilities allow. Researches show that the solar energy use in combination with the
liquefied natural gas and/or natural gas represents technically and ecologically
acceptable solution for the Croatian coastline. In accordance with this, hybrid
combination of solar energy, wind energy, and the liquefied natural gas can not only
contribute considerably to the solution of energetic infrastructure on islands, but start
the development of traditional island activities in accordance with the strategic trend of
the Croatian islands development.
Granic, G. i dr.: Energetski sektor u razdoblju od 1990.2005.: analiza i posljedice, Zbornik radova
Energetske perspektive danas i sutra: svijet Europa Hrvatska, Hrvatsko energetsko drustvo, Zagreb,
2005., p. 18.
4
Strategija energetskog razvitka, http://www.eihp.hr (20070914)
265

The wind energy represents an ecologically acceptable and available energy

source in Croatia. When analyzing the technical potential of wind energy in 29
different micro-locations (19 of them on Adriatic islands and on the peninsula of
Peljesac, and 10 on the Adriatic coastline), the possibility of building the wind powerplants of 400MW power (with use of wind-turbines of 750 KW power) is estimated,
which could produce annually approx. 800 GW of electric energy. The use of windenergy can contribute considerably to the partial sufficient supply of the energetic
needs in Croatia. The positive trends are noticeable on the island of Pag and in the town
of Sibenik, where the electric energy is produced in wind power-plants.
The total geo-thermal potential of the located deposits in Croatia amount to
839MW of thermal energy and 47.9 MW of electric energy. The harnessing of geothermal energy implies the forming of adequate conditions for the growth in its use in
the existing plants as well as in the education and in the marketing campaigns in order
to obtain interest among undertakers and within the local community.
Local resources for energy production in small water power-plants are underutilized. There are approx. 350 technically useful circuits in Croatia, with their
energetic potential evaluated at 570 GWh. Their greater use understands the
elimination of all legislative barriers and the forming of stipulations for the increased
construction.
One of the reasons for the low level of restorable energy sources within the
energetic system of Croatia is without doubt the high consumption price of this sort of
energy. Therefore their implementation depends primarily on administrative support
and stimulating measures. Nevertheless, the utilization price of energy obtained from
restorable sources does not include the real environmental protection price, which
should be calculated as an objective expenditure within all the production technologies,
transformations and energy use, which would reduce considerably utilisation price of
energy obtained from restorable sources in relation to the conventional energy sources.
In order to obtain increase in energy from restorable sources production, Croatia must
develop a system of economic, financial, fiscal, legal, administrative, technical, and
organizational measures. The necessity to develop legislative and trade frames is
essential, as well as the comprehension of industry and economy, education, research
stimulation and international collaboration. By active energetic policy the increased use
of every particular restorable energy source is enabled with additional positive effects
achievements.
2.
PASSIVE ENERGETIC STANDARD AS

SUSTAINABLE TOURISM DEVELOPMENT
THE
FACTOR
OF
The increase in personal standard of population, accompanied by the tourist

growth standard, particularly in construction and equipment of tourist objects, by space
heating and cooling of all premises, leads to the growing need in energy. Such a trend
is clearly going to continue in the future. The impact possibilities on energy
consumption level in tourism are great, and can comprehensively be divided into two
main groups. The first group consists of material and technology consumption in
266

construction which reduces the energy consumption, while the second group consists of
the restorable energy sources and their use.
Statistical data show that approx. 83% of buildings in Croatia have no
adequate heating insulation, while 50% have none at all. As a rule, it is possible to
decrease the amount of internal heating energy up to 60-70% if adequate heating
insulation is applied to already existing buildings, as well as to decrease the cooling
needs significantly in the summer months.
With energy loss reduction in heating and cooling, the increase in energetic
efficacy is obtained.
When constructing new buildings for the use of tourism, particularly on
islands or in the function of rural tourism, the induction of passive energetic building
standard in construction business seems interesting. This means complying the energy
consumption criteria in space heating according to the definition of a passive house, at
or bellow 15 kWh/m2 (with the assumption of the adequate highly valuable heating
insulation, use of a heating pump and the ventilation system which brings fresh air
continually into the internal space), and use of obtainable restorable energy sources in a
passive active way for water heating (low-temperature systems sun thermal
transformers) and for electric energy production (photo-voltage cells).5 This popularly
called house without heating has no active conventional (fossil) energy source
heating system, but uses internal heat sources (a person, a heat releasing device, the
accumulated heat within a construction, etc.), including sun energy radiating gains, and
earth heat (or coolness). Consequently, it forms an energetically independent house,
which means it acquires heating, cooling, hot water and light from sun energy alone.
The research project the European Union programme: Cost Efficient Passive
Houses as European Standards (CEPHEUS) has confirmed the energetic and economic
efficiency of such architecture and construction in more than 250 exemplars in
Germany, France, Austria and Switzerland, and the passive house model (a house
without heating) has been proposed as a building standard for the housing architecture
and for all functional object models in general. The first passive house in Croatia was
erected in 2005 in the town called Bestovje (Rakitje) near Zagreb. If the energetic
consumption of a passive house of only 30 kWh/m2 of total annual needs (electric
energy for lighting and devices need, water and internal space heating, internal heating
up to 15 kWh/m2 annually) is compared to the existing old buildings with the overall
annual consume of 250 to 300 kWh/m2, more that 220 kWh/m2 of which on internal
heating alone, the very low energetic consumption of the passive house must be
acknowledged, together with the possibilities of its application in tourism, especially
having in mind the energetic problems of the Croatian islands and Croatia as a whole.
The perception of great energy economizing possibilities and the even greater
ecology awareness of all the participants in the building process is confirmed by the
trend of passive houses construction in developed countries throughout Europe.
Nevertheless, such a trend has not yet been observed in Croatia, which can be attributed
5
Prva pasivna kuca u Hrvatskoj, http://www.gradimo.hr/4536.aspx (2007-09-09)
267

to the pre-war standard decline, to the war, as well as to the current lower post-war
standard, and, on the other hand, to the lack of knowledge, awareness and
responsibility of both institutions and individuals. This results in poor quality
construction, both energetically and ecologically. Such kind of construction is present
in the segment of tourist construction as well. The hotel objects, mainly designed for
seasonal undertaking, have no adequate heating insulation, therefore the energy
consumption for heating being up to ten times greater than in the standard passive
house, accompanied with inadequate heating comfort and by greenhouse gas emission.
The implementation of the passive energetic standard in the tourist industry
construction requires the state subsidy, as well as the change in the energetic strategy
concept. The ecologically acceptable construction, with small additional initial
investments (10% of the classic construction costs), and its profitability with regard to
the technology development, irrepressible growth in conventional source energy price,
as well as the stimulating financing and promoting of such a constructing standard (tax
exemptions), would enable quicker tourist objects investment reimbursement and their
profitability.
With passive energetic standard the suppositions are formed for the tourism
development in accordance to the sustainable concept development. With use of
restorable energy sources the preferences of the passive house are obtained not only for
their users tourists, but for the surrounding as well. Considering it does not use fossil
energy sources, there is no CO2 emission, which, consequently, contributes to the
tourist resource preservation. With biological and landscape diversity, and with quality
of environment, the competitive preferences are obtained on a global tourist market.
3.
RESTORABLE ENERGY SOURCES AS THE FUNCTION OF

COMPETITIVE PREFERENCE IMPROVEMENT OF THE
TOURISM DESTINATION
In spite of all positive tourist results, accentuated by a number of tourist

arrivals and tourist overnight stays, and by the tourism income that shows a growing
tendency every year, Croatian hoteliers (as key bearers of the tourist development) are
confronted with non-profitable management, with as many as 10% of tourist firms
registering losses. Such business results offer no possibility for crucial quality
improvements within the hotel industry, with negative influence on the Croatian
tourism competitiveness within the tourist market. Natural resources, local culture,
assortment, and offer quality, as well as the cultural and the historical inheritance
represent the adequate resources needed by the tourist destination in order to build and
establish its recognizability and competitiveness.
Environmental preservation and protection represent the most important forms
of commitment in all the present-day tourist development segments, which represent
the assumption of the competitiveness as well. The competitiveness of a tourist
destination is obtained by offering the high quality to the market, and, simultaneously,
neutralizing the ever present negative concurrency pressure. In such context similar but
improved activities must be developed, as well as the activities that distinguish the
268

destination from its concurrency. The concurrency represents the only way of
maintaining the long-term progress. Nevertheless, the tourism development creates the
costs that must be minimized, particularly the ones that decrease the physical and
psychical perception of prosperity of local inhabitants. Therefore it is essential to avoid
the quality interruption of the physical surrounding and of the local identity.
Environmental devastation, as the result of a long-term uncontrolled
valorisation of tourist resources has a recurring effect on the tourist development. One
of the reasons for the environmental devastation is clearly represented by the use of the
conventional energy sources (the CO2 emission, etc.).
The image of the ecologically illuminated destination enables its posing on a
tourist market and forming the clear picture of a certain destination with the concept of
a generational tolerance within the potential guest groups. This is possible if the tourist
destination takes care of its surroundings, which is obtainable with lower nonrestorable natural resources investments and even lower surroundings burdening.
Subsequently, the use of the restorable energy sources in tourism means the
increase in energetic efficacy and the decrease in managing cost of the tourist company,
which consequently brings to the profit increase.
The Croatian coastline and islands, where the most of the tourist
accommodation capacity is concentrated, has good solar potential, as well as good
wind potential for the application of both wind and solar energy. Two wind powerplants were erected on the island of Pag (the first wind power-plant in Croatia was
erected in the Ravne region above the city of Pag) and in the town of Sibenik (the wind
power-plant Velika Glava, with planned annual production of 40-50 GWh, enough to
cover the consumption of 10.000 average households). The construction of wind
power-plants usually has very good ecological performances, and, as the consumption
of fossil fuel within the energetic system of Croatia is decreased with their erection,
their noxious influence on surroundings is diminished. Nevertheless, it must be taken
into account that, apart from their positive impact, they have the harmful influence on
surroundings, markedly in changes in the landscape value, impact on flora and fauna,
and in noise impact.
Besides large wind power-plants, the application of smaller wind power-plants
for irrigation in river deltas and lakes (exp. the Neretva river delta), or for the pump
energy supply in irrigation and water desalinization (the example of the wind-park
Stupisce on the island of Pag) is possible
In spite of good solar potential it could be taken for granted that due to the
high construction costs no solar formation is going to be built in the forthcoming years.
Nevertheless, solar heating collectors for hot water production can find intensive use,
whether in different tourist objects, or in insulated regions and in various specific
appliances (for instance, in basic telecommunication stations, light-houses, traffic
signs, lightening, different monitor systems, etc.).
269

As preserving the natural potentials of a tourist destination forms its

competitive preferences, the future development of a tourist destination must be
oriented towards it, with the use of restorable energy sources forming the irreplaceable
segment of the same process.
CONCLUSION
The energy supply is one of the managing factors of the tourist economy
bearers, its profitability and concurrency on the foreign tourist market. With use of
restorable energy sources the energy costs are decreased, the prerequisites formed for
larger profit achievement and for possibilities to achieve better price competitiveness
on the market.
With introducing of the passive energetic standard in the tourist object
construction the energetic cost are minimized, and, at the same time, the prerequisites
are formed for a comfortable stay within tourist objects. The tourist objects being
considerable energy consumers, such an innovative construction enables the increase in
economic effect with management cost decrease, as well as improving of a position of
a tourist destination on the market when its image of an ecologically illuminated
destination is presented. Nevertheless, for such a construction to obtain better results,
the simulative legislative regulations and various different stimulating measures must
be acquired. With active energetic policy the increased use of every single restorable
energy source is enabled, and thus the additional positive effects obtained.
With support of the Environmental Protection and Energetic Efficacy Fund in
2005 the stimulation of the energetically efficacious construction became established,
which brought to the new, stimulating era of energetic efficacy in ecological and
sustainable construction.
REFERENCES
Granic, G. i dr.: Energetski sektor u razdoblju od 1990.2005.: analiza i posljedice, Zbornik radova
Energetske perspektive danas i sutra: svijet Europa Hrvatska, Hrvatsko energetsko drustvo,
Zagreb, 2005.
International Enery Annual 2005, http://www.eia.doe.gov/iea/overview.html (2007-09-2007.)
Miscevic, Lj.: Pasivni energetski standard u graditeljstvu kao perspektiva odrzivog razvitka prve pasivne
kuce u Hrvatskoj, Zbornik radova Energetske perspektive danas i sutra: svijet Europa
Hrvatska, Hrvatsko energetsko drustvo, Zagreb, 2005.
Mller, H.: Turizam i ekologija: Povezanost podrucja djelovanja, Masmedia, Zagreb, 2004.
Prva pasivna kuca u Hrvatskoj, http://www.gradimo.hr/4539.aspx (2007-09-09)
Strategija energetskog razvitka, http://www.eihp.hr (20070914)
Studija o utjecaju na okolis vjetroparka Velika Glava Sibenik, sazetak za javni uvid, Tehno ing d.o.o.,
Zagreb, 2005.
Suncana kuca, http://www.eihp.hr (20070817)
270
C. Stipanovic, S. Baresa: THE DEVELOPMENT DESIGN MODEL IN THE COMPETITIVENESS ...
T.E.I. Thessaloniki
Greece
UDC 338.486:658](497.5)
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
THE DEVELOPMENT DESIGN MODEL IN THE

COMPETITIVENESS OF INTELLIGENT
BUSINESS ORGANISATIONS
Christian Stipanovic
Suzana Baresa
Abstract: Croatian hotel and tourism companies are failing to keep abreast of modern tourism trends in the
globalised marketplace of the twenty-first century. The imperative is to innovate the development design
model based on a new value system. A precondition to success is transforming sluggish, inert companies that
live according to the mindset of the past century into high-growth intelligent organisations capable of
actively creating the future.The intelligent business organisation, founded on a new generation of managers,
employee empowerment, software solutions and expert systems, needs to manage data and information to
generate new development trends. The aim is to valorise intellectual capital and information in making
innovations and creating new solutions in order to be able to stand up to rivals and more fully meet the needs
of clients.
Keywords: development concept, intelligent business organisation, information, intellectual capital, hotel and
tourism companies.
INTRODUCTION
An awareness of the necessity of change must become prevalent in Croatias
hotel and tourism companies. Success cannot be achieved with a level of knowledge,
awareness, mindsets and actions dating from the last century. A precondition to
1
Christian Stipanovic, Ph.D., Associate Professor, Suzana Baresa, B.Sc., Faculty of Tourism and
Hospitality Management, University of Rijeka, Croatia.
271
development is the affirmation of intelligent business organisations and learning

organisations in gaining greater competitive advantages (response time innovation).
Only propulsive, innovative and intelligent organisations that are actively engaged in
creating new values for tourists can do well in a turbulent marketplace.
In conditions of growing risk and uncertainty, intelligent organisations put
knowledge and information technologies to use in anticipating and creating the future.
The only way to bridge the gap between the limitations of the offering of Croatian
hotel and tourism companies and the preferences of tourists of the twenty-first century
is to put intellectual capital to work, while valorising technological and IT trends.
1.
DEVELOPMENT DESIGN MODEL OF HOTEL AND TOURISM

COMPANIES
The development design model represents a qualitative response of hotel and

tourism companies to challenges present in a turbulent and dynamic marketplace. It is a
view into the future that analyses the present situation and the expected future situation,
and determines the course and the means to reach the desired targets within a new
value system in the marketplace. Companies must undergo change (being idle means
stagnating and withering away) to keep abreast of the increasingly sophisticated needs
of demand. The only constancy in the marketplace is change that is becoming
increasingly more dramatic and drastic. I shall be able to perceive the future that I want
only after I have created it (Gerken, G.). Two levels can be distinguished in the
behaviour of companies in the twenty-first century. The company that wants to become
a leader must be a driver of change; it must innovate and tear down all barriers, instead
of waiting for change to happen or, even worse, failing to respond to change. The
emphasis is on drastic redesign on discarding that which is obsolete and creating
something entirely new. While theoretical and declarative talk about innovation is very
simple, in reality it is extremely difficult be bring down resistance and barriers to
change and to seek out new ideas, shades of difference and original solutions. The
greatest danger in times of turbulence is not the turbulence; it is to act with yesterdays
logic.2
Today, merely keeping abreast of change is no longer enough; instead, it is
necessary to fuel change and seek to actively create the future. The action time and
response time of rivals is steadily decreasing, making them compete faster and
resulting in greater quality and faster response time. Not only is it important to stay
ahead of rivals, it is also important to stay ahead of demand, create original products
and use proactive marketing to attract potential clients in conditions of ever-faster
change on the market. The company that wants to survive must come up with the right
response to changes in the environment. There is no third scenario the company that
does not change is sure to disappear from the contemporary marketplace.
The development design model is based on knowledge, intellectual capital and
information implemented in practise to solve existing situations and, in particular,
2
Drucker, P. F.: Inovacije i poduzetnistvo, Globus, Zagreb, 1992, p. 123.
272
future situations and challenges with the aim of achieving growth and development. It
is created for increasingly shorter periods, given that the time for adapting, innovating,
taking over and duplicating original contents and solutions is also becoming ever
shorter. It stands for continuous activities in modelling and innovating for the purpose
of improving performance in response to market changes. At any given moment, a
company must know where and in which direction it wants to go and how to
accomplish the goals it has set in the conditions of a dynamic marketplace.
A development design model consists of:3
A concept represents a set of rules and principles upon which depends the
selection of a strategy as a dynamic discipline and the choice of a system and
business policy to accomplish an enterprises goals and mission. That
comprises an analysis of the current situation, the setting of goals, the
formulation of alternative strategies, the selection of optimum courses of
actions, and the allocation of resources with which to accomplish the goals set.
A strategy represents the activities a business undertakes in carrying out its

development concept to achieve corporate goals. That employs a dynamic and
stringent discipline of overcoming the undesirable, while accomplishing the
desirable by prevailing over reality and stepping out into the surreal.
Business development system represents the totality of activities,

interactions and links needed to realise the development strategy with the
intention of accomplishing business objectives.
A business policy represents an activity (development policy) that

endeavours, now and in the future, to accomplish lower-level business goals
and to reach the desired state, in the conditions of a changing environment.
There are two fundamental targets in innovating the development design

model of Croatian hotel and tourism companies: innovating an offering adjusted to the
needs of twenty-first-century tourists and building a distinctive identity that will be
associated with the advantages of the offering and reposition it in the minds of
potential tourists. The model must keep abreast of contemporary tourism trends:
increasingly, the individual is the focus of tourism; quantity is steadily being
substituted with quality, and mass tourism, with personalised and differentiated
tourism; tourists are more focused on experiencing, than on visiting. Priority is given to
designing an original and indigenous offering to gain competitive advantages based on
innovations.
2. COMPETITIVENESS MODEL IN TOURISM

Competitiveness represents a qualitative determinant of strategic management,
that is, a dominant success factor. On the dynamic tourist market, competitive
advantage is gained by the company that possesses the special features that tourists
want and appreciate and that distinguish it from its rivals, for the purpose of
3
Stipanovic, C.: Koncepcija i strategija razvoja u turizmu Sustav i poslovna politika, Fakultet za turisticki i
hotelski menadzment u Opatiji, 2006, p. 13.
273
multiplying profits. Market changes drive changes in tourism companies and result in
the continuous generation of new competitive advantages in this cyclic model
(advantages sources positional advantage output performance).
The sources of advantages are rooted in the ability to effectively perceive
market change, in the efficiency and speed of adjusting to tourists, as well as in
creativity, innovativeness, and the generation of new ideas and solutions. Intellectual
capital and information are the fundamental resources of twenty-first-century economy
and tourism. Intellectual capital represents a dynamic concept, a strategic orientation
and an imperative in generating new knowledge, understanding and activities in
asserting knowledge. Represents the totality of knowledge, information, technology,
intellectual rights, experience, organisational learning, competencies, client
relationships, and brands within a company or the totality of intangibles that create
value and competitive advantage.4 Information implies a change in the perception of
the mind, and it influences the behaviour and judgement of its recipient. Today,
technology is no longer the biggest challenge. The challenge is how to use information
in an intelligent way. Having information provides for greater business opportunities
and ensures that a company can respond more effectively in a development concept.
Given the plethora of data, it is crucial to be able to identify key data and transform
then into information and knowledge to serve as a basis for decision-making.
These sources result in competitive advantages that are gained at three levels:
Cost strategy with a broad range of applications across all levels of business
functions, resulting in cost leadership;
Leadership based on differentiation and quality this rests on using

uniqueness and exceptionality to generate qualitative differences in ones
products, services and the entire company, relative to the competition;
Leadership based on response time and innovations (It is not the big fish that
eat the small fish, but the fast fish that eat the slow fish).
The results of competitive advantages are reflected in the extent to which the
objectives of business activities have been accomplished. The basic indicators of
business performance are the volume of profits, the volume of revenue, the degree of
tourist satisfaction, market share, and the degree of tourist loyalty. The model for
generating competitive advantages is perpetual, dynamic and evolves in cycles. It is
grounded on a feedback loop by which a part of the profits are reinvested in gaining
and enabling new competitive advantages. The key issue regarding the competitiveness
model of Croatian hotel and tourism companies is how to go about transforming
resources (crucial intangible resources: intellectual capital and information) at the
highest level of competitive advantages (innovation response time) with the aim of
multiplying profits. These companies must transform into intelligent business
organisations to generate development alternatives that have the greatest possibility of
succeeding in future business.
4
Stewart, T. A.: Intellectual Capital: The New Wealth of Organisations, Doubleday/Currency, New York,
1997., p. 23.
274
3.
FUNDAMENTAL
ORGANISATIONS
DETERMINANTS
OF
INTELLIGENT
An intelligent business organisation is a modern organisation that valorises

intangible resources and information technology in generating innovative and original
solutions. It encourages qualitative change, is faster in making the right decisions and
can outsmart its rivals while fulfilling the preferences of demand in conditions of an
increasingly dynamic marketplace. At its heart is the synergy of all intellectual and
creative forces of a company and its software solutions in managing change in the
environment and bridging the gap between reality and the companys business
potential. It is all about transforming knowledge-based companies from a lesser profityielding area into a greater profit-yielding area. The attributes of an intelligent
organisation include:
The capability of actively seeking opportunities and endowing them with

additional value;
The ability to reconstruct (make sense of) early faint, vague and ambiguous
signals in the process of making business decisions;
The ability to refresh the usability of data through multidimensional

networking;
The ability to take action towards building a specific, rare and valuable
company resource that cannot be easily transferred or copied, thus creating the
preconditions for the company to gain competitive advantages.
An intelligent organisation (a knowledge-intensive organisation) is a company

that is faster in making better decisions and outdoes its rivals; it has the capability of
excelling and satisfying its natural winners instinct. Increasingly, being an intelligent
organisation is a precondition not only to winning, but also, more importantly, to being
able to compete5. In such a company, most of the work involved in creating
products and services is done outside of the actual production area in seeking ways to
respond to market stimuli (clients, rivals, suppliers) while creating a new value system.
Primarily, it is based on the knowledge, capabilities, skills and competencies
of workers and on information management. The key to success are people and their
innovativeness and ability to anticipate change and design the future. This makes it
imperative to provide life-long learning for all workers, invest in research and
development, and establish knowledge-based management and a learning-organisation
model, together with worker empowerment. It is characterised by systems, mechanisms
and processes that are built into the organisation and help to enhance its ability to gain
sustainable competitive advantages based on learning. An intelligent organisation puts
to use all advantages provided by information technologies: improved communication,
data and information management, access to information that can be transformed into
knowledge as a foundation for business decision-making, prediction and forecasting
models, simulation models, sensitivity analyses in minimising risks Information
technology and new software solutions help towards managing business systems and
they make it possible to:
5
Liautaud, B., Hammond, M.: e-poslovna inteligencija, Prudens consilimu, Varazdin, 2006., p. 127.
275
Continuously track evermore frequent internal and external change;
Manage data and information;
Increase work productivity;
Implement new strategic directions focused on rivals and clients;
Establish a knowledge economy based on intellectual capital.

6
The features of IT implementation in hotel and tourism operations include:

the elimination of work, the elimination of superfluous communication chains,
automatic checks built into processes, synergy established between people and
technology, the simplification of tasks, concurrently evolving processes, changes to job
descriptions, integrated functions, centralised auditing with decentralised decisionmaking, innovative systematic analysis, advantages created out of weaknesses,
innovations as active holidays, competitive advantages. In terms of context, IT
implementation based on information systems as a platform for the development
concept must extend across a companys entire business operations; in terms of time, it
must encompass all information regarding the past, present and future, while in spatial
terms, it must enable a company to analyse its current situation and its outlooks within
the environment. At the heart of the matter is managing data for the purpose of creating
information and new knowledge through the following processes:
Data warehousing storing data in a relational or dimensional model, and data

visualisation that demonstrates how data are linked and interact to make
business decision-making more efficient;
OLAP systems software solutions for creating maximum value from

business data via multidimensionality. These analytical processing systems are
used to ensure that business decisions are made that provide a company with
the greatest opportunities for its future business. OLAP is a rapid analysis of
common multidimensional data;
Data mining this is a process of finding links and interaction between data
based on mathematical, statistical and logical postulates to ensure that
information of the highest quality is obtained. It involves delving into data to
gain a broader understanding of business, using the following methods: data
clustering, REFII models, Bayesian networks, self-organising maps, survival
models, associative classification algorithms, and neural networks.
IT reality in the operations of an intelligent organisation is made up of expert

systems that are based on artificial intelligence and knowledge bases, the purpose of
which is to provide answers to structural what-if questions for needs of the companys
development concept, as well as on components enabling communication with experts
in various domains. It is a program that solves problems using reasoning mechanisms
specific to a given domain. It consists of knowledge bases, a working memory, a
reasoning mechanism and user interface. Expert systems for intelligent organisations
actively employ new strategic orientations.
6
Galicic, V, Simunic, M.: Informacijski sustavi i elektronicko poslovanje u turizmu i hotelijerstvu, Fakultet
za turisticki i hotelski menadzment u Opatiji, Opatija, 2006, p. 100.
276
Table 1: New strategic orientations

BPR
Business Process Reengineering
BSC
Balanced Scorecard
EFQM
European Foundation for Quality Management
EPS
European Production System
ISO
International Organization for Standardization
JIT
Just-In-Time-Production
CIP
Continual Improvement Process
SMED
Single Minute Exchange of Dies
TPM
Total Production Maintenance
TQM
Total Quality Management
Source: Author
They need to continuously undergo change and develop new IT-related

solutions because of the speed at which IT markets are evolving. Change can take place
almost overnight (Microsoft is six months away from dieing out even if Microsoft is
a leader, if it does not invest and put money into R&D, it will only be a matter of days
before its rivals catch up and surpass it Gates, B.). At the same time, they should seek
to develop the learning organisation concept by recognising the importance of
intellectual capital.
4.
TRANSFORMING
CROATIAN
HOTEL
AND
TOURISM
COMPANIES INTO INTELLIGENT LEARNING ORGANISATIONS
The preconditions to the development of Croatian hotel and tourism

companies involve doing away with the remnants of the past system and adjusting to a
new value system through privatisation, restructuring, standardisation, IT
implementation and by building a new generation of managers and providing life-long
training for employees. The primary course of development should focus on
innovating, diversifying and improving the offering to achieve excellence and
distinctiveness. Intelligent organisations embrace new strategic directions that focus on
interfacing with competitors (benchmarking, business intelligence) and meeting the
needs of demand (CRM, TQM) through the affirmation of intellectual capital. They
actively monitor rivals and changes in client behaviour.
Twenty-first century knowledge must let go of obsolete paradigms and
embrace new intelligence; it must surpass the phase of out-dated knowledge and enter a
phase of intelligent and applicable knowledge. Receiving its recognition in the learning
organisation, intelligent knowledge needs to be applied in practise to generate new
trends and solve actual situations.
277
The learning organisation (Sveiby, K. E.) is an intelligent company that

consistently invests in conducting research, acquiring new knowledge, generating new
trends, implementing original solutions and innovations, providing life-long education
for its employees, asserting new methods to manage development, establishing a new
business culture, and creating horizontal organisational structures, in order to adjust to
the knowledge society and knowledge era.
This type of company is trained to create, gather and transfer knowledge and
to modify behaviour and culture. It is based on the concept of learning as an on-going,
cyclic activity that establishes life-long learning and knowledge management together
with a new knowledge-based value system in response to stimuli from the globalised,
dynamic marketplace.
The learning organisation calls for leaders at every position leaders who are
capable of guiding the company through momentous change. This means that all
employees need to be open to acquiring new knowledge and skills and ready to change
their old habits. In the learning organisation, a business culture of learning is
established, based on knowledge management and innovation, that is, on knowledge as
a precondition to gaining competitiveness and augmenting quality.
The basic feature of a learning organisation is its ability to adjust to new
conditions emerging in business operations or in any other environment in which the
system operates. It is characterised by systems, mechanisms and processes that are built
into the organisation and help to enhance its ability to gain sustainable competitive
advantages based on learning. This type of company is adaptive to change in its
environment, it continuously increases its ability to change and adapt, it develops group
and individual learning, and it uses the results of learning to achieve its objectives of
creating values and sustainable competitive advantages.7 The objective of a learning
organisation differs from conventional learning, while its basic intentions are as
follows:8
Developing original ideas and solutions to a companys problems;
Not being satisfied with the existing situation, constantly experimenting, and
seeking new solutions;
Encouraging each employee to take initiatives and become self-assertive.
The ability to learn faster than your rivals may be the only sustainable
competitive advantage there is. There are no limits to creativity or to seeking efficient
models that can improve business decision-making and data management.
Croatian hotel and tourism companies have not yet recognised the importance
of new strategic orientations and the learning organisation without which they cannot
expect to qualitatively transform into intelligent organisations. Thorough changes need
to be made to their value system, mindset and operations with emphasis on business
7
Rupcic, N.: Poduzece koje uci nova menadzerska moda ili recept za uspjeh?, Poslovni magazin, Zagreb,
Vol. 4, No. 11, (2006), pp. 44-51.
8
Vukovic, I.: Ekonomika poduzetnistva u hotelijerstvu, Dalmatina, Zagreb, 1999, p. 112.
278
reengineering and a new business culture. They must no longer live in the past, but
rather begin to create the future based on proactive and predictive action, setting new
business trends. A new attitude is required towards knowledge and research as a major
criterion in recruiting, evaluating, promoting and motivating employees. It is crucial to
bring about the synergy of the knowledge of individuals and the knowledge a company
possesses.
The individual with his/her unique knowledge is the greatest asset of any
company that must capitalised on to the fullest extent. The most cost-effective
investment is the investment made to knowledge. What assets a company possesses is
not as important as how the company uses them and how business intelligent it is.
The contemporary tourist market does not recognise improvisations and
success on this market can only be achieved by continuously innovating the
development concept based on innovative and intelligent solutions. The only
companies capable of setting the foundations for a new phase in Croatias tourist
industry are modern, intelligent hotel and tourism organisations interacting with
innovations to the development concept of a destination.
CONCLUSION
In what regards the collaboration between the employees and the personnel in
the HR department, the employees see this as generally positive. The employees who
took part in this study think that the attitude of the HR department Croatian tourism is
lagging behind leading European competitors, because of its inability to tranform its
limited offering in the fairly short time that it has been oriented towards and operating
within a market economy. Intelligent hotel and tourism companies based on a learning
organisation concenpt and lead by a new generation of manages provide the possibility
of qualitatively transforming the stereotype
Croatian tourism offering into a new concept of tourism as an industry of
entertainment, active holidays and events geared to the needs of modern tourists.
Innovativeness and creativity coupled with information technology and new strategic
orientations are capable of bringing down all barriers to creating a distinctive offering
and creating variations that will differentiate Croatia from its increasingly advanced
rivals. Business opportunities emerge quickly but dissapear just as quickly. The future
belongs to those who are able to spot opportunities before they become evident.
279
REFERENCES
Galicic, V, Simunic, M.: Informacijski sustavi i elektronicko poslovanje u turizmu i hotelijerstvu, Fakultet za
turisticki i hotelski menadzment u Opatiji, Opatija, 2006.
Drucker, P. F.: Inovacije i poduzetnistvo, Globus, Zagreb, 1992.
Lautaud, B., Hammond, M: e-poslovna inteligencija, Prudens consilium, Varazdin, 2006.
Rupcic, N.: Poduzece koje uci Nova menadzerska moda ili recept za uspjeh?, Poslovni magazin, Zagreb,
Vol. 4, No. 11, (2006), pp. 44-51.
Stewart, T. A.: Intellectual Capital: The New Wealth of Organisations, Doubleday/Currency, New York,
1997.
Stipanovic, C.: Koncepcija i strategija razvoja u turizmu Sustav i poslovna politika, Fakultet za turisticki i
hotelski menadzment u Opatiji, Opatija, 2006.
Vracic, T.: Razvoj informacijskog drustva Usporedna analiza Hrvatska i zemlje EU 2005. godine, ICT
forum, Zagreb, 2006.
Vukovic, I.: Ekonomika poduzetnistva u hotelijerstvu, Dalmatina, Zagreb, 1999.
280
B. Kulisic, M. Zidar, B. Jelavic, J. Domac, V. Segon: TOURISM AS A PATHWAY FOR RES
T.E.I. Thessaloniki
Greece
UDC 338.48:620.91](497.5)
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
TOURISM AS A PATHWAY FOR RES

UTILISATION
Biljana Kulisic
Margareta Zidar
Branka Jelavic
Julije Domac
Velimir Segon
Energy Institute, Croatia1
Abstract: Tourism, due its property of being an invisible export sector, has a strong multiplier effect over
the economy. Tourists boost demand for numerous goods and services, one of them being energy.
Unfortunately, energy sources are scarce for most of the countries in the region. Thus, one could think of
another solution to the excess demand for energy than import. Namely, for more than a decade, renewable
energy sources are in the central focus of the EU energy policy with an aim to ensure security, price stability,
availably and affordability of energy to its citizens together with reduction of GHG emissions and making the
EU economy more competitive. Combining tourism with renewable energy sources utilisation helps reducing
the spill over effect from energy import.
In this paper, the cross-section analysis based on environmental determination of tourism and renewable
energy sources potentials is performed in order to indicate a pathway for implementation of renewable
energy sources utilisation in the tourism and hotel industry.
Keywords: tourism, renewable energy sources, energy demand.
INTRODUCTION
Harmonisation to the aquis communautaire has brought many changes in
Croatian legislation where intersectoral effects are difficult to grasp. Energy sector has
1
Biljana Kulisic, MSc., Margareta Zidar, BA, Branka Jelavic, Ph.D., Julije Domac, Ph.D., Velimir
Segon, MSc., Department for Renewable Energy Sources and Energy Efficiency, Energy Institute, Croatia.
281
been under the process of liberalisation2, local governments are becoming responsible for
its energy planning and supply, renewable energy sources and cogeneration became of a
strategic interest to the Republic of Croatia3, to number only the few. In 2007, Kyoto
protocol has been ratified which brings additional obligations in respect of environmental
protection. In avis of European Commission, waste management in Croatia has been
reported as a largest single problem of environmental protection in Croatia4.
Tourism, due its property of being an invisible export sector, has a strong
multiplier effect over the economy. Tourists boost demand for numerous goods and
services, one of them being energy. Unfortunately, energy sources are scarce for most of
the countries in the region. Thus, one could think of another solution to the excess
demand for energy than import. Namely, for more than a decade, renewable energy
sources are in the central focus of the EU energy policy with an aim to ensure security,
price stability, availably and affordability of energy to its citizens together with reduction
of GHG emissions and making the EU economy more competitive. Combining tourism
with renewable energy sources utilisation helps reducing the spill over effect from energy
import. If combined with municipal waste utilisation, it could also contribute to
obligations signed with Kyoto Protocol. Given the high concentration of hotel industry
along the Adriatic coast, this paper will investigate a possibility of hotel industry to help
local community in energy planning by producing bioenergy from organic kitchen waste.
This paper tries to assess the technical potential of organic waste utilisation
coming from tourism and hotel industry.
1.
TOURISM IN RELATION TO ENERGY AND WASTE
Most of the energy consumption related to tourism industry, about 90%, falls
on energy needed for travel to and from destination5 while the rest of the energy
consumption occurs in the destination itself. If looking closely to the energy
consumption of destination, the largest share of energy demand is related to
accommodations hotel industry. Hotels are dominantly using electricity as energy
form (heating/cooling, lighting, refrigerators and coolers, lifts, escalators etc.) followed
by significantly smaller share of energy forms needed for cooking and water heating
such as liquid fuels and natural gas or coal6. Croatian hotel industry follows that pattern
where service sector is second largest consumer of electric energy in total electric
energy demand7. Occupancy rate varies from 25 to 29 percent8 indicating the
seasonality of maritime tourism and its dominance as tourist profile. In that period,
tourist-resident ratio is 8.4 meaning that, in average; one coastal inhabitant and 8
2
Energy Community Treaty, OJ 06/06

Energy Law, OJ 68/01, 177/04
4
Waste Management Strategy for the Republic of Croatia, OJ 130/05
5
EEA, Europe's environment; the fourth assessment, Office for Official Publications of the European
Communities, 2007.
6
Deng, S., Energy and water uses and their performance explanatory indicators in hotels in Hong Kong,
Energy and Buildings, Vol. 35, 2000, 775-784
7
Vuk, B. et al., Energy in Croatia 2006, Ministry of Economy, Labour and Entrepreneurship of Republic of
Croatia, 2007.
8
EUROSTAT, Tourism Statistics 2007 edition, European Communities, 2007.
3
282
tourists are staying in the same destination at the same time. Given the international
forecasts, Croatia has been described as a very large, most intensive and fast growing
travel and tourism economy with estimated growth of 7.9 percent total tourism demand
in next 10 years and current tourism industry and economy contribution of 8.5 percent
and 19 percent, respectively9. This growth should be facilitated with planning the
carrying capacity of a destination not only in number of beds but also in other issues
such as water, energy supply and waste management, too. The table below shows the
number of overnights stay in Croatia for year 2000 and period 2003 to 2005.
Table 1.: Characteristics of tourism demand in Croatia (domestic and inbound)
Nights spend in collective accommodation
Year
Total
By residents
By non-residents
Occupancy
rate of bed
places
in 1000
in 1000
as % of
total
in 1000
as % of total
Annual
average
2000
30 858
4 224
13,7
26 634
86,3
25%
2003
35 246
4 263
12,1
30 983
87,9
28%
2004
35 991
4 240
11,8
31 751
88,2
28%
2005
37 292
4 172
11,2
33 120
88,8
29%
2015*
40 238
4 507
11,2
35 731
88,8
29%
*estimated growth of 7.9%10 and same rate of occupancy as well as distribution of residents and nonresidents
Source: EUROSTAT, Tourism Statistics 2007 edition, European Communities, 2007.
The data from Table 1, especially years 2005 and 2015 will be used as basis
for the further calculations.
If assuming that residential tourist will consume the same amount of
electricity as in their home, additional electric energy demand generated by foreign
tourist could be estimated at 828 and 893 GWh for the years 2005 and 2015,
respectively (Table 2) which is 19 and 20 percent of total electricity consumption by
service sector in 200511.
9
WTTC, TSA Country Reports: Croatia the 2007 Travel and Tourism Economic Research, World Travel
and Tourism Council, 2007. available at: http://www.wttc.travel/bin/pdf/original_pdf_file/1croatia.pdf
10
and Tourism Council, 2007. available at: http://www.wttc.travel/bin/pdf/original_pdf_file/1croatia.pdf
11
Croatia, 2007.
283
Table 2.: Electricity consumption related to foreign tourist
Year
2000
2003
2004
2005
2015*
Nights spent in collective

accommodation12
Total tourists
By non-residents
as % of
in 1000
in 1000
total
30 858
35 246
35 991
37 292
40 238
26 634
30 983
31 751
33 120
35 731
86
88
88
89
89
Electricity consumed
(25 kWh/day/guest13)
Total tourists
By non-residents
GWh
771
881
900
932
1006
666
775
794
828
893
*estimated growth of 7.9%

Source: EIHP
In 2006, about half of Croatian demand for energy was supplied from imports
and another half from own energy sources. The structure of the total primary energy
supply is shown in the Figure1. Some 63 percent are import dependent (crude oil and
natural gas) while hydro power depends on the annual precipitation level. The smallest
share represents emerging renewable energy sources (RES).
Figure 1.: Shares of energy forms in total primary energy supply (2006)
Hydro power
27.79%
Renewables
0.11%
Fuel wood
8.50%
Crude oil
18.58%
Natural gas
45.02%
Source: EIHP
Having a mix of fossil (non-renewables) and RES in national energy portfolio

gives energy price stability since national energy sector is more robust to international
energy prices changes14. RES are, like tourism, site specific and, if properly planned,
12

ADEME, Final ReportGreen Flag for Greener Hotels, LIFE, ENV/00038/FR Project, 06/02/2001. and
ADEME, .Interim Report and Annex Green Flag for Greener Hotels, European Commission DGXI, LIFE
Program,1999.
14
Awerbuch, S., "Portfolio-Based Electricity Generation Planning: Policy Implications for Renewables and
Energy Security, SPRU, U-Sussex, working paper, 2004.
13
284
could bring also additional socio-economic benefits to the local community such as
added value and employment.
Biogas is one of many forms of bioenergy derived from biomass. Biogas is a
mixture of methane and carbon dioxide produced by bacterial degradation of organic
matter in anaerobic conditions which can be used as a fuel for production of electricity
and heat. Organic matter that can serve as digestate is usually coming from some other
activity such agriculture, urban waste, food processing industry or any other activity
that generates biodegradable organic matter. Depending on the composition of
digestate used, it is possible to use the exhausted substrate after digestion as fertiliser in
agriculture. In Europe, anaerobic digestion has become one of the standard
technologies in the treatment of organic waste, where countries like Germany,
Denmark and Austria are leading the way15.
2.
WASTE MANAGEMENT AND TOURISM
In July 2007, Croatian government has delivered Waste Management Plan for
period 2007 to 201516 based on the Waste Management Strategy17 with an aim to
establish a self-sufficient waste management system. This is to be achieved by
following the principles of sustainable development through decreasing the amount of
waste occurring in general, amount of waste disposed on landfills during primary
useful waste separation, share of biodegradable waste in total municipal waste disposal
while minimising the negative impact of disposed waste on environment, climate and
human health. Waste management should seek for utilisation of waste for energy
production purposes and should be organised at national and municipal level.
It has been estimated that total waste induced from tourism related activities
amounts to 97 700 tons of municipal waste per year18. Since waste collection fee is
calculated per square meter of a household or spatial area of a hotel or restaurant, it is
difficult to provide an exact number for municipal waste generated, let alone the share
of its organic component. Figure 2 provides comparison of two methodologies for
calculating the biodegradable component of municipal waste suitable for generating
energy.
The values designated with parameters assigned with 1 represent calculation
of organic component according to numbers provided in the Waste management plan
while those parameter designated with 2 are calculated according to the research
made within the Intelligent Energy Europe project19. It can be seen that both
methodologies lead to similar results although European methodology provides more
conservative results.
15
IEA Bioenergy Task 37, http://www.iea-biogas.net/

Waste Management Plan, OJ 85/07
Waste Management Strategy OJ 130/05
18
19
WIP: BiG>East- Biogas for Eastern Europe, Project number: EIE/07/214, duration 2007-2010.
16
17
285
Figure 2.: Estimation of organic waste related to tourist overnight stays in

Croatia in 2005
30000
25000
tons
20000
16 036
14 242
14 067
12 493
15000
10000
5000
0
min -1
min - 2
max - 1
tourists
max -2
average -1
average -2
non-residents
The following figure considers the effect of forecasted growth in tourist arrivals
of 7.9% until 2015 on organic waste generation by comparing the estimations for 2005.
Figure 3.: Projected organic waste generation for 2015 according to the
forecasted growth
20000
17 302
18000
tons per tourists
16000
14000
16 036
15 178
14 067
12000
10000
8000
6000
4000
2000
0
2005 - 1
2005 - 2
2015 - 1
2015 -2
Source: EIHP, WTTC
The bars are representing the average values of organic waste related to
preparation and consumption of meals for tourists for years 2005 and 2015. Again, the
same annotations as for Figure 2 are made for both years according to the methodology
used for calculations. One could conclude that coastal municipalities apart benefiting
from tourism could also have a technical potential between 14 000 and 17 000 tons of
organic waste to utilise for energy purposes.
286
3.
RES UTILISATION AND TOURISM
Croatian government has set a target of 5.8 percent or 1 139 GWh as the
minimal share of electricity generated from RES (RES-E) by year 201020. The table
below estimates energy potential of waste generated by preparing and consuming food
by tourists, taking the average values for anaerobic digestion of organic waste21.
Table 3.: Biogas electricity generation related to organic waste coming from
tourists and its corresponding shares
Year*
RES-E generated from

organic waste
(tourists)
Share of total electricity

demand from tourists
Share in
RES-E target
GWh
% of total
tourist
demand
% of nonresidents
demand
2005 - 1
11,35
1,47%
1,70%
1,00%
2005 - 2
12,94
1,47%
1,67%
1,14%
2015 - 1
12,23
1,36%
1,54%
1,07%
2015 - 2
13,96
1,50%
1,69%
1,23%
* according to organic waste calculation methodology
It can be seen that municipalities situated on the coast of the Adriatic Sea are
having a technical potential for electricity generation from biogas of 11.35 to 12.94
GWh which is around 1.5 percent of the electricity demand originated from tourist
visitations to the same area and little more over 1 percent contribution to the national
target for RES-E. The electricity production is related to the occupancy rate and the
period of tourist season on the Croatian coast.
4. DISCUSSION
Biogas production could be used for two main reasons either for decreasing
the volume of organic waste in landfills or for production of energy. Since both energy
planning and waste management are shifted to local level, a municipality could be
interested in possibility of combining biogas as a way for managing municipal waste
and for local energy purposes. It could be helpful to the tourism benefiting
municipalities to weight the possibilities of new legislation that describes both energy
and waste related issues (Table 4). New legislation on RES-E has delivered a tariff
system for production of electricity from RES to encourage development of renewables
market. Electricity produced from biogas is awarded with 14.20 c to 16.39 c per
20
Ordinance on Minimal Subsidised Share of Electric Energy from Renewable Energy Sources and
Cogeneration, OJ 33/07
21
Monnet, F., An Introduction to Anaerobic Digestion of Organic Waste - final report; Remade Scotland,
2003
287
kWh of electricity produced (depending on the installed power)22. On the other hand,
waste management plan23 estimates the costs for thermal processing and disposal of 20
to 60 per ton of municipal waste (tax included) for Croatia.
Table 4.: Comparison of waste management possibilities from tourism
Organic waste
generated
Year*
t
2005 - 1
2005 - 2
2015 - 1
2015 - 2
14 067
16 036
15 178
17 302
Annual cost of disposal
Annual subsidies from

biogas produced
min
- 281 331
- 320 711
- 303 556
- 346 047
max
- 843 993
- 962 134
- 910 668
- 1 038 142
min
+ 1 999
+ 2 278
+ 2 156
+ 2 458
max
+ 2 306
+ 2 629
+ 2 488
+ 2 837
* according to organic waste calculation methodology
The values provided in the table 4 are referring to the technical potential of
organic waste coming from food preparation and consumption related to tourism with
annual cost in case of organic waste disposal and revenues from subsidies on RES-E.
These figures would be of interest to municipalities placed on the Adriatic coast (blue
bars) where amounts of total disposed waste per inhabitant are all higher, except in
Dubrovacko neretvanska, than the national average.
Figure 4.: Amounts of disposed waste according to the municipalities in 2003
1,80
1,60
m 3 p e r in h a b ita n t
1,40
1,20
1,00
Croatian average
0,80
0.79 m3/inhabitant
0,60
0,40
0,20
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e
a
k
vs
o
ka
B r -s l a
vo
od
n
sk
o- sk a
po
sa
vs
Za k a
Os
da
je
rs
ko
ka
-b
ar
i
an
be
j sk
ns
Vu
a
ko
ko
-k n
va
ins
rs
k
k
a
Sp
o
lits -s rij
em
ko
-d
a l m sk a
at
in s
Du
k
br
I st a
ov
ar
a
sk
ko
a
-n
er
etv
a
M ns
e k
im
u
G r r sk a
ad
Za
gr
eb
m
ok
sa
Si
Kr
ap
in s
ko
-- z
Za
gr
ag
or
eb
ka
0,00
Municipality
Source: Waste Management Strategy for the Republic of Croatia, OJ 130/05

22
23
Tariff System for Production of Electric Energy from Renewable Energy Sources and Cogeneration, OJ 33/07
288
Considering that the RES utilisation is replacing the equivalent energy mix for
electricity generation of Croatia, the amount of biogas electricity produced out of the
technical potential calculated in this paper saves 3 to 4 tons of CO2 emissions24 per
year. However, the larger significance lays in avoiding the greenhouse gases emissions
from land-filling where methane from the organic waste (biogas plant feedstock) was
utilised instead of added to the national greenhouse gases emission inventories. Using
conservative parameters, biogas utilisation could save some 5 000 to 6 000 tons of
CO2eq per year, although new methodology introduced by IPCC suggests figures ten
times higher25. As this paper investigates technical potential only, the intention here is
to provide indicative values for GHG emissions.
CONCLUSIONS
So far, tourism in Croatia has not been investigated as a source for biogas
production and this paper deliver its technical potential for electricity generation in
respect to electricity demand induced by non-resident visitors. As such, biogas can
contribute with little over 1 percent to the national target of RES-E by 2010 and about
1.5 percent of the total electricity demand generated from foreign tourists and save up
to 1 million Euros per year for organic waste disposal.
The technical potential of electricity production from biogas using organic
kitchen waste originated from food preparation and consumption as anaerobic digestate
indicates that those municipalities that are having tourism as integrated economic
activity in their local economy, could include biogas as a way of waste and energy
management policy. In addition, they could also contribute to meeting the international
obligations related to environmental protection by decreasing influence of landfills on
air, soil and water degradation and GHG emissions. Moreover, in tourist active areas,
scenery plays an important role while tourist could reward sustainable development
efforts of a destination, if properly marketed.
However, the technical potential should be further investigated in respect of
tourist concentration spots using spatial analyses as well as local possibilities to
increase or/and combine the amount of feedstock considering related sources such as
food processing industry, agriculture and organic kitchen waste from households.
Furthermore, each municipality has different budget available as well as waste
management programme and landfill properties. It would be worth investigating what
are the economic, environmental and energy possibilities of investing in biogas plant
where budget share designated for landfill cost will be transferred to energy
investments with waste reduction potential on the local level.
24
Juric et al., National Inventory Report for the Period from 1990 to 2003 Inventory of anthropogenic
emissions by sources and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol,
EKONERG, LIFE project, Zagreb, 2005.
25
emissions by sources and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol,
EKONERG, LIFE project, Zagreb, 2005.
289
REFERENCES
ADEME, .Interim Report and Annex Green Flag for Greener Hotels, European Commission DGXI, LIFE
Program,1999.
ADEME, Final ReportGreen Flag for Greener Hotels, LIFE, ENV/00038/FR Project, 06/02/2001.
Awerbuch, S., "Portfolio-Based Electricity Generation Planning: Policy Implications for Renewables and
Energy Security, SPRU, U-Sussex, working paper, 2004.
WIP: BiG>East- Biogas for Eastern Europe, Project number: EIE/07/214, duration 2007-2010.
Communities, 2007
Energy Community Treaty, OJ 06/06
Energy Law, OJ 68/01, 177/04
IEA Bioenergy Task 37, http://www.iea-biogas.net/
emissions by sources and removals by sinks of all greenhouse gases not controlled by the
Montreal Protocol, EKONERG, LIFE project, Zagreb, 2005.
Monnet, F., An Introduction to Anaerobic Digestion of Organic Waste - final report; Remade Scotland, 2003.
Ordinance on Minimal Subsidised Share of Electric Energy from Renewable Energy Sources and
Cogeneration, OJ 33/07
Tariff System for Production of Electric Energy from Renewable Energy Sources and Cogeneration, OJ
33/07
Croatia, 2007.
and Tourism Council, 2007. available at: http://www.wttc.travel/bin/pdf/original_pdf_file/
1croatia.pdf
290
G. Petrovska Reckoska, R. Reckoski, A. Vasileska: ENERGY CONSUMPTION IN HOTEL INDUSTRY
T.E.I. Thessaloniki
Greece
UDC 640.4:620.91](497.7)
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
ENERGY CONSUMPTION IN HOTEL

INDUSTRY CASE STUDY IN OHRID
Gordana Petrovska Reckoska
Risto Reckoski
Angela Vasileska
University "St. Kliment Ohridski" Bitola, Macedonia1
Abstract: Renewable energy is necessary for each industry functioning, also for hotel industry. Its
necessary for warming, lightening hotels, for kitchens functioning in hotels, for transport vehicles movement,
for hotel pools, etc. In lack of classic energy sources, long period of time some work is done on finding new
energy sources, besides oil and coal, water and wind.
Nowadays, solar energy is very popular, which is already supplied, bio-energy, wind energy, water energy,
geothermal and gas energy, steam, and still a work is done on permanent finding of new renewable energy
sources (fuel cell resources, ocean/wave resources).
In this paper, overworked data is shown, brought by Ohrid hotels and SWOT analyses has been done of
energy consumption in hotel industry in Ohrid, with proposals for modernization, efficiency, aiming to
modern tourism development, environment protection, human health protection.
In this way, basic demands for entering the European Union will be satisfied and legislative harmonization in
Republic of Macedonia with other EU members is going to be realized.
Keywords: renewable energy sources, sun collectors, energy in hotel industry, legislation for renewable
energy sources.
INTRODUCTION
Energy means working bodies capability. In mechanic there is classification
according to which there are two types of energy: Cinematic (moving energy) and
1
Gordana Petrovska Reckoska, Ph.D. Full Professor, Risto Reckoski, Ph.D., Assistant Profesor, Angela
Vasileska, Ph.D., Assistant Professor, Faculty of Tourism and Hospitality, University "St. Kliment Ohridski"
Bitola, Macedonia
291
potential (static energy). Sum of kinetic and potential energy of an isolated system,
with no dissipative forces is constant.
According to type of usage the energy can be: chemical, thermal, electrostatic,
magnetic, lightening, atomic. Energy can be transformed from one form to another, but it
can be created or destroyed (Law for maintaining energy). Energy is measured in Jul(J).
Energetic is technical-physical-economic science (theoretic and practical),
conditions and laws which are in power for different types of energy: finding energy
source, producing technology, transformation, distribution, using energy and power in
technical, industrial, economy etc.
There are many different ways in which the abundance of energy around us
can be stored, converted and amplified for our use. Energy sources will play an
important role in the worlds future.
The energy sources have been split into three categories:
1. Fossil fuels
2. Renewable energy sources
3. Nuclear sources
The fossil fuels covered here are coal, petroleum and natural gas.
The renewable energy sources are solar, wind, hydroelectric, biomass and
geothermal power.
The nuclear-powered sources are fission and fusion.
Table 1.: Characteristics of energy issues
Energy issues
Biomass
Coal Energy
Energy efficiency
Energy recovery
Geothermal Energy
Hydroelectric power
Nuclear Fission
Nuclear Fusion
Photovoltaic
Solar Power
The energy Path to
the future
Wind energy
Characteristics
Materials such as wood, animal waste, and crops are called biomass.
These materials can be burned to generate energy for human consumption
Many scientists feel that conservation of current energy resources, not the
development of new energy sources, will be the method of the future
The rise in use of energy resources has led people to try to use energy in a
more efficient manner
One of the problems with current energy usage is that it is highly
inefficient and vast quantities of energy are wasted
Geothermal Energy seeks to generate power from the high temperatures
below the Earths surface
Water, like wind, has been used to do work throughout history. Interest in
using hydroelectric power was sparked largely by the desire for a new
source of energy
Nuclear Fission is being used in nuclear power plants to generate
substantial amounts of power. However, there are dangers to using it and
it wont be possible to use it forever
Nuclear Fusion is an alternative energy source of tremendous potential. If
properly developed, it could solve all of the worlds energy problems
The energy of the sun can be acquired through solar energy panels, but
Photovoltaic provide another option
Soar Power is an extremely clean and from of energy that comes from the
sun
Many people have different views concerning the future of energy usage,
and the current path is uncertain
Wind power has been used at least since 600 BC. The energy source has
become popular in the search for a clean and renewable energy sources
292
Renewable source are filling up through physical and chemical cycles.

On the opposite, not renewable sources are not filling by themselves, or with
fossil fuels theyre doing it slowly.
Renewable sources can be lost because of pollution in living environment.
There are organic and inorganic types of renewable energy sources. Example
for renewable organic substances is field and animal type. Inorganic examples involve
water and gas as an oxygen is.
Bigger part of world production energy uses fossil fuels which in certain way
pollute environment.
Energy production and usage development is directed to bigger part of usage
of renewable energy sources. These energy sources use wind energy, water, sun energy,
geothermal and biomass energy.
1.
RENEWABLE ENERGY SOURCES
Greater part of world energy production uses fossil fuels, besides nuclear
energy. Fuels, directly or not, pollute environment. Using renewable energy sources in
total energy consumption is relatively law, although it increases constantly.
The government has not ordered producers to use energies which uses fossil
fuels, there are ecology harm which comes out from that kind of production, so the
production prices are not coordinated.
Production development and energy usage is directed to reducing
consumption to product and service, increasing the domicile sources in the production
and directing to bigger part of renewable energy sources usage.
Renewable energy sources involving has many advantages which are seen
through reducing the pollution and costs for that, possible application on apart and
faraway places, at places with lower consumption, bigger employment. Renewable
energy sources uses wind, water, sun energy, geothermal and biomass energy.
Production and consumption of renewable energy in developed countries
increases every day, and in some countries is very high. (Sweden and Austria around
25%, Finland over 21%, Portugal 16%).
In EU countries, in different ways, usage of renewable energy sources is
stimulated. Republic of Macedonia has good opportunities for sun energy supplying.
Sustainable development is a concept of continuous economic and social
development and improvement, with no damage for the environment and people goods.
It demands that renewable stuff, like water and energy, dont spend faster than
sustainable, renewable sources can make up for them.
Todays, conventional energy sources in great measure are fossil fuels and
they participate in total production with 85-90%. The most important among them is oil
293
(35-36%), and coal and gas are equally present. Fossil fuels are classified and not
renewable. Across the world, more and more the concept of renewable energy sources
is understood. In table 2, consumption of all types of energy across the world is shown:
Table 2.: Energy consumption across the world 1970-2010 (quadrillions) x 1015 MJ/m2
Energyences
Oil
Natural gas
Coal
Nuclear power station
Renewable sources
Total
1970
97,8
36,1
59,7
0,9
12,2
206,7
1990
135,4
72,0
91,7
20,3
26,2
345,6
Prognose for 2010

181,3
103,3
118,0
24,4
41,1
471,4
Consumption of all types of energy increases, but the biggest consumption

demands renewable energy sources supply. Predicted increasing of energy
consumption, from renewable energy, contains hydro power stations, geothermal
energy, biomass and sun energy.
1.1. Renewable energy sources in European Union
European Union is consisted of countries which have less energy sources, so
they are forced to import fossil fuels. In a way, their self being is hurt, they depend on
oil, coal and natural gas prices. Therefore EU countries are aiming to:
1. Small hydro power stations are of a great importance, water power is
confirmed a long time ago, it enables great energy production.
2. Wind-electric power is gained using wind turbines. Installed capacities for
wind energy, in 1995 were the biggest in Germany, smaller in Denmark and
United Kingdom. Electric power gained by the wind is the cleanest type of
energy of course.
3. Sun energy is used by application of active and passive systems, also photovoltage cells. Biggest users are Greece and Germany. Photo-voltage cells
contain enables electric energy production, but its application is still law.
4. Geothermal energy is used for electric energy production in smaller limits, in
a way of using geothermal warmness of Earth inner. In Europe, Italy has
greatest number of geothermal units, and the biggest geothermal power
stations is settled in Toscana 1991. Geothermal energy is the most important
renewable energy source after hydro energy.
5. Biomass is important source for production of heat, bio-fuel, electric power,
its main tool are its potentials. Biomass contains wood and its waste, various
energy agricultural cultures (corn, sugar tree) Bio-fuels are gained from
biomass, and by their gathering electric power and heat are produced. The
biggest electric energy producers from biomass are France, Germany, Ireland
and Netherlands. About 59,5% from all renewable sources are from biomass
in mentioned countries, gained energy is used for heating houses, local
heating, electric power production and bio-fuel.
Great importance of renewable sources energy is gained from ecological
effects (renewable energy sources dont produce SO2, SO3, NO, or cells).
294
1.2. EU legislative for renewable energy sources

For providing higher usage of renewable energy sources its necessary to
stimulate their usage, adopt various programs according to the energy politics and
environment protection politics. In that direction, national and municipality law is
improved, special articles are put on this issue at public counting, scientific programs
are done by energy priorities, wide action for environment protection are done.
At the end of 1996 in EU special document is adopted called Green Paper, in
which directions for energy politics are given, and confirming measures for usage of
renewable energy sources. Also, a document White Paper is adopted. All EU countries
took an obligation for changing relationship in energy sector, linked to liberalization of
electric energy and gas market. In these programs Italy, France, Spain and Greece lead,
but also Denmark, Austria, Sweden and Finland.
2.
ENERGY CONSUMPTION ANALYSES IN SERVICE ACTIVITIES

CONCERNING TOURISM AND HOSPITALITY
Basis for strategy for energy sector development building are predicting the
energy consumption. This prediction could be provide qualitative only on basis with
correct energy consumption data.
As a basis for building the strategy for energy sector recording of current
energy needs id necessary to be done. Because of different steps of growing its useful
to overview houses sector, services and industry separated.
2.1. Energy consumption in hotel industry
From services sector especially tourism and hospitality are overworked.
Objects in tourism and hospitality are heated mostly by heat pumps. Less part
of objects are heated by central heating, and a third of the objects is not heated,
concerning that tourism is bigger part season tourism.
Way of heating in objects in tourism and hospitality mostly is: central heating,
heat pump, separate ovens and there are non heated objects, too.
2.2. Energy consumption in hotel industry in Ohrid as a tourist center in
R. Macedonia
Republic of Macedonia is on the limits between continental and
Mediterranean influences. According to the fact that country is settled at the most
southern part of north, continental area, and to belong in sub-tropic area, Republic of
Macedonia belongs in sub-tropic area, so Republic of Macedonia is different from all
other climate characteristics. Besides that Republic of Macedonia is not open to the sea,
vicinity of Adriatic and Aegean has extremely Mediterranean influence on modifying
continental climate.
It catalyzes extreme values of continental climate elements, which positively
influence tourist stay.
295
Air temperature is a factor which points out on convenience in tourist activity,

because it shows heat conditions of a space. This condition affects air temperature during
a day and a year. For tourism, important data is average air temperature yearly and
monthly considered.
Tourism in Republic of Macedonia is connected to especially season
concentration of visitors, so therefore conveniences for tourist activity in that area.
The highest average yearly air temperature in Republic of Macedonia is 14,50C.
Monthly temperature is the highest during summer period. In VII and VIII month average
monthly temperature is 200C, which shows an optimal opportunity for doing tourist
activities. During period VI-IX month, half-monthly temperatures enable swimming
activities, having sun in lake tourist places in Republic of Macedonia (Ohrid, Prespa and
Dojran Lake). In Ohrid-Prespa region, depending on temperature conditions,
Mediterranean influence can be noticed, which positively affects tourist development.
Republic of Macedonia is a country for long-lasting sun presence, which is also
very important tourist value. Yearly, in Ohrid there are 2233 hours in sun, in Resen 2205
hours in sun, in Dojran 2609 hours in sun. This element is of a great importance for usage
of sun energy in Republic of Macedonia.
All these facts show that in Ohrid region there are more than excellent
conditions for tourism during summer and winter, so hotel industry must provide pleasant
stay for tourists in any way, especially concerning heating the objects during winter and
cooling them during summer period, for which energy is necessary. Energy in hotel
industry is needed for hot water, for cooking, for lightening, and supplying other
techniques, so the visitors would have pleasant, sure and comfortable stay.
Researches had been done at biggest hotels in Ohrid, the most important ones,
not considering some small hotels which had grew up privately on Ohrid Riviera.
Warm season in Ohrid is IV X month of year (7 months). So, there has to have
considerably thought about energy providing, especially in objects, cooling is needed
during summer time, but temperatures are not that high and no big cooling is needed,
because the climate is pleasant. Analyses done about energy consumption, kind and
energy condition in Ohrid hotels is shown in Table 3.
It can be noticed that oil, electric energy and gas are main energy source at hotel
industry in Ohrid hotels. About renewable energy sources at these hotels its early to talk
about, a state strategy should be overworked, which had been started to be done, already.
From the table it can be seen that not in one hotel (from the ones taken in this
analyses), there is no central heating, because Ohrid doesnt have central heating as a
town. Ohrid has only individual heating for each hotel, which has its own system for
heating, fed by electric power/oil. In 90% of hotels in Ohrid there are sun collectors,
which is good. In kitchen, in hotels, for cooking, electric power and gas are supplied. At
90% of hotels, besides basic heating, there is air conditioning cool and hot, and at all,
100% of hotels, there are additional heaters, for reserve needs. In 35,7% examined hotels
in Ohrid there are sun collectors, and in 64,3% there are no sun collectors, which points
out the fact that sun energy as a renewable energy less included and it should be involved
in usage at all hotels.
296
Table 3.: Condition, consumption and heating kind at most important hotels in Ohrid, Republic of Macedonia
Hotels
name in
Ohrid
Number Central Individual

heating
of rooms city
heating with pump
Energy
types
for
heating
/cooling
Type of
energy in
kitchen
Cooling
Energy type
Sun
collectors
Electric
power
agregates
Additional
means for
heating/
cooling
Other
energy
sources
(also
renewable)
Electric
power/gas/
coal
Electric
power/gas
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Electric power,
gas, oil, coal
yes
yes
Yes, heaters
heat/cool
non
Elevtric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil, solar
yes
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Milenium
53
non
yes
Oil/solar
Granit
119
non
yes
Oil
Inex
Gorica
125
non
yes
Oil/solar
Electric
power/gas
Park
92
non
yes
Oil
Electric
power/gas
Metropol
120
non
yes
Oil
Electric
power/gas
Belvi
180
non
yes
Oil
Electric
power/gas
297
(continued)
Hotels
name in
Ohrid
Number Central Individual

heating
of rooms city
heating with pump
Energy
types
for
heating
/cooling
Type of
energy in
kitchen
Cooling
Energy type
Sun
collectors
Electric
power
agregates
Additional
means for
heating/
cooling
Other
energy
sources
(also
renewable)
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Air
conditindable
Electric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil
yes
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil, solar
yes
non
Yes, heaters
heat/cool
non
Electric power,
gas, oil, solar
yes
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil,
non
yes
Yes, heaters
heat/cool
non
Electric power,
gas, oil
non
yes
Yes, heaters
heat/cool
non
Desaret
300
non
yes
Oil
Electric
power/gas
Belvedere
60
non
yes
Oil/solar
Sonceva
porta
15
non
yes
Oil
Electric
power/gas/
coal
Electric
power/gas
Donco
49
non
yes
Oil
Tino
30
non
yes
Oil
Dva
bisera
11
non
yes
Oil/solar
Garden
32
non
yes
Oil
Electric
power, gas
Klimetica
45
non
yes
Oil
Electric
power, gas
Electric
power/gas/co
-al
Electric
power/gas/
solar energy
Electric
power/gas
298
In Table 4, aim for energy consumption and way for its gaining and supplying
is given.
Table 4.: Aim of energy consumption
Central heated
objects/individual heat
Number of objects
heated by heating
pump
No heated
objects
Heating (MJ/m2)
heating space
Individual heating
14
non
Hot water (MJ/m2)
Individual heating
14
non
Cooking (MJ/m2)
Individual heating
14
non
Unheated energy
(MJ/m2)
Individual heating
14
non
Cooling (MJ/m2)
Individual heating
14
non
Aim of energy
consumption
A lot of energy is needed for hotels functioning. Therefore, but with aim of
improving, consumption new types of energy, it must be worked on this issue, new
energy sources should be involved, sun energy should be involved in all hotels, then it
should be thought for other renewable types of energy, so total consumption would
improve, environment protection, tourists health protection, economic effects, by that
the legislative will be fulfilled and EU entrance.
CONCLUSION
By made analyses of energy consumption condition in hotel industry in Ohrid
RM, concerning 14 most important hotels in Ohrid, it can be concluded:
1.
2.
3.
4.
5.
6.
7.
8.
Energy is necessary for human life, in all her kinds, and with no energy human
association could not function.
Nowadays mostly conventional energy sources are used, oil, gas, coal, electric
energy gained in thermal power stations, hydro power stations, nuclear power
stations.
In RM mostly used energy is electrical, then gas, oil, coal.
Sun energy with sun collectors is already in use, because in RM, especially in
Ohrid there are lot of sunny hours.
In European Union already there is a legislative for renewable energy sources.
In tourist industry in Ohrid mostly used is electric energy, gas, oil, coal and
less sun energy.
There is no city central heating in Ohrid, only individual heating at each hotel.
Renewable energy sources are present only through sun energy, there are other
types of renewable energy sources.
299
9.
Overwork and usage of new types of energy are recommended, by which

ecological and economy effects will be achieved, human health protection,
especially tourists.
10. Overwork of renewable energy sources projects and their application is basic
condition for entering the future, more energy and more energy types must be
provided, legislative for that and European Union entrance.
REFERENCES
, ., ,, 2006
, ., - , , 2007
, .,
e- , , 2006
Vuk,B.,Energy in Croatia: Ministry of economy, Republic of Croatia, Zagreb,1999
Energy and environment, 19th Scientific Conference on Energy and the Environment, vol I&II, 2004,
Croatia
, , .40/2005
EUFORES News,2003/04
http://library.thinquest.org/26026/Science/renewable-resources,html
300
P. Ruzic, I. Ruzic, M. Dropulic: ECONOMIC AND ENVIRONMENTAL ASPECTS OF INTRODUCING ..
T.E.I. Thessaloniki
Greece
UDC665.334.9:338.48](497.5)
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
ECONOMIC AND ENVIRONMENTAL ASPECTS

OF INTRODUCING THE USE OF BIODIESEL IN
THE HOSPITALITY AND TOURISM BUSINESS
OF RURAL ISTRIA
Pavlo Ruzic
Ivan Ruzic
Marinela Dropulic
Institute of Agriculture and Tourism, Porec, Croatia1
Abstract: This paper looks on possibility of induction biodiesel fuel in tourism business. According to that,
authors research economical and ecological impacts of biodiesel fuel on tourism business and environmental
protection. In work, authors give answers about general characteristics of biodiesel fuel, and make
comparison with classic diesel fuel. Researching issue are also production process and prices and what kind
of effects brings induction of biodiesel fuel on economy of tourism and ecology. From that point of view,
authors set up hypothesis that induction of biodiesel fuel in tourism business can obtain increasing in
economical view and bring environmental protection of tourist destination. In paper are used methods for
researching social, economical and ecological impacts of biodiesel fuel on tourism business development.
Keywords: biodiesel, tourism business, rural area, tourism, offer, ecology.
INTRODUCTION
Biodiesel is a renewable and biodegradable fuel produced from vegetable oils,
animal fat and recycled waste vegetable oils. The idea of using vegetable oils to fuel
1
Pavlo Ruzic, Ph.D., Ivan Ruzic, BSc, Marinela Dropulic, BSc, Institute of Agriculture anf Toruism,
Porec, Croatia.
301
internal combustion engines is linked to Rudolf Diesel, inventor of the diesel motor. At
the 1900 World Fair in Paris, Diesel demonstrated his diesel motor, which was run on
biodiesel produced from peanut oil. The idea, however, was abandoned due to low
petroleum prices.
Today, the use of biofuels has become a live issue because of petroleum
shortages and growing environmental pollution as a result of the emission of harmful
fumes from vehicles. With its Directive 2003/30/EC, the European Union has committed
its members to secure a minimum 2% share of biofuels and other renewable fuels in
transportation by 31 December 2005, and 5.75%, by 31 December 2010. The upward
trend in the consumption and prices of mineral diesel due to decreasing sources of crude
oil is driving a turn toward fuel alternatives. European regulations stipulate that by 2020
EU member states must substitute 20% of fossil fuels in transportation with biofuels such
as biodiesel, bioethanol, biogas and biohydrogen.
In Croatia, the government provides support for the production of biodiesel fuel
within the National Energy Program BIOEN. The consumption of diesel fuel in Croatia is
continuously growing, especially in transportation and, in particular, in city
transportation. For example, in 1995 in Croatia, biodiesel consumption amounted to
711.1 thousand tons, and in 2000, it was up to 892.6 thousand tons.2. In 2006,
consumption was estimated at about 1100.6 thousand tons of biodiesel, of which 50
thousand tons in Istria.3
The consumption of biodiesel is greatest today in transportation; its use,
however, is possible in other branches, such as farming, construction, hospitality,
tourism, etc. This paper will prove the hypothesis that biodiesel can be used as a fuel
alternative and energy source alternative in hospitality and tourism businesses, in which it
can help to improve economic efficiency and enhance the environmental protection of
tourism destinations. Research also demonstrates biodiesel to be a less expensive, energyefficient and environment-friendly alternative to mineral diesel.
This paper provides a general description of biodiesel, its production, properties
and its use. Its environmental standards are also presented, that is, its impact on keeping
the environment clean and healthy.
Finally, based on the major results of research, the paper confirms the
hypothesis that biodiesel is a good motor fuel alternative and energy source alternative to
heating oil in the hospitality and tourism business. It is a less expensive, energy-efficient
and environment-friendly alternative to mineral diesel.
1.
ON BIODIESEL AND ITS PRODUCTION
Biodiesel is a fuel produced through the esterification of vegetable oil, animal

fat, recycled and other oils using methanol. Most commonly, it is produced from
rapeseed oil, although other types of oil from oil plants such as soybean, sunflower,
palm, etc. can be used, as well as recycled waste vegetable oil. In chemical terms,
biodiesel is described as a mixture of mono-alcohol esters that are, through the
esterification of raw vegetable oils in reaction with methanol and in the presence of a
2
3
Kamenski, M: Boidizel, Energetika, 4/2001 p. 45.

Author's estimation.
302
catalyst, transformed into fatty acid esters with glycerine, soap and water resulting as
by-products. Biodiesel belongs to the group of derivates of medium long-chain (C16C18) fatty acids, and, as such, it demonstrates a structural similarity to cetane
molecules, the basic component of mineral diesel fuel. Biodiesel is the commercial
name for methyl ester. Its production process is based on the reaction of higher
unsaturated fatty acids and alcohol (most often, methanol CH3OH) in the presence of
alkaline catalysts (NaOH or KOH). This process is known as transesterification
(alcoholysis solvolysis using alcohol), and its by-product is glycerol.
1.1. Biodiesel production procedure
The technological process of biodiesel production is based on
transesterification in which vegetable oils and methanol undergo a chemical reaction in
the presence of sodium hydroxide as a catalyst. The chemical procedure of
transforming methyl alcohol into triglyceride is fairly simple, and the reaction begins to
evolve at room temperature. This procedure takes place at a temperature slightly lower
than the boiling point of methanol and at atmospheric pressure. The industrial
production of biodiesel requires neither high temperatures nor high pressure. The
technological process of biodiesel production is divided into four sections. These are:
1. Oil refining
2. Esterification
3. Extraction
4. Drying
In the first section, the properties of oil to be used in biodiesel production are
tested. The properties tested include density, acid number, saponification number,
nonsaponifiable matter, viscosity, sulphur content, phosphorous content, water content,
iodine number, pour point and cloud point. The expected values are determined using
the test methods listed in the below table.
Table 1.: Technical specification of rapeseed oil
Expected value
Properties
Density at 20 0C
Acid number
Saponification value
Nonsaponifiable
matter
Viscosity at 40 0C
Sulphur content
Phosphorous content
Content of mechanical
impurities
Unit
Kg/m3
mgKOH/g
mgKOH/g
%(m/m)
mm2/s
mg/kg
mg/kg
mg/kg
Minimum
Maximum
900
930
2.0
200
<0.5
185
30
42
10
20
500
Test
method
EN ISO 3675
EN 14214
ASTMD
1965-87
EN ISO 3104
EN ISO
20846 EN
ISO 20884
EN 14107
EN 12662
303
(continued)
Water content
mg/kg
Iodine number
Pour point
mgJ2/100 g
0
C
Cloud point
1000
105
120
- 20
-5
EN ISO
12937
EN 14111
DIN ISO
3015
DIN ISO
3015
Source: Internal data of the biodiesel plant Modibit d.o.o. in Ozalj
In the second section, (esterification) a chemical reaction takes place between

oil and methanol in the presence of a catalyst (NaOH or KOH) in which methyl ester is
produced as unpurified biodiesel, with glycerol as a by-product.
The third section (extraction) consists of procedures for purifying biodiesel.
Biodiesel is purified of soap and glycerine using demineralised water and citric acid.
In the fourth and last section (drying), vacuum distillation is used to remove
water from the biodiesel end product, which should have the following properties:
Table 2.: Technical specification of biodiesel
Warranted value
Property
Unit
Minimum
Maximum
Ester content
Density
Viscosity at 40 0C
Flash point
Sulphur content
% (m/m)
Kg/m3
mm2/s
0
C
mg/kg
96.5
860
3.5
120
-
Carbon residue
% (m/m)
Cetane number
Ash content
Water content
% (m/m)
mg/kg
0.02
500
mg/kg
24
Total mechanical
impurities
Copper corrosion
Acid number
Iodine number
Saponification value
Methanol content
Phosphorous content
Pour point
Filterability
900
5.0
10
0.30
51.0
rating
mgKOH/g
mgJ2/100g
mgKOH/g
% (m/m)
mg/kg
0
C
150
0.50
120
300
0.20
10
- 20
- 10
Test
method
EN 14103
EN ISO 3675
EN ISO 3104
EN ISO 2592
EN ISO
20884 EN
ISO20846
EN ISO
10370
EN ISO 4264
ISO 3987
EN ISO
12937
EN 12662
EN ISO 2160
EN 14104
EN 14111
EN ISO 3657
EN 14110
EN 14107
DIN ISO
3016
EN 116
Source: Internal data of the biodiesel plant Modibit d.o.o. in Ozalj.
304
1.2. EU biodiesel production

According to an EU Directive, all EU members are obliged to substitute
5.75% of mineral fuel by 2010 and 20%, by 2020. All EU members have accepted this
Directive and are complying with it in accordance to their abilities. As a result of this,
EU members have produced the following quantities of biodiesel.
Table 3.: Estimated biodiesel production and production capacities in the EU
Production in 000 tons
Capacities in 000 tons
Country
2004
2005
2004
2005
Germany
France
Italy
Czech Republic
Poland
Austria
Slovakia
Spain
Denmark
Great Britain
Slovenia
Estonia
Latonia
Lithuania
Greece
Malta
Belgium
Cyprus
Portugal
Sweden
Total
1035
348
320
60
0
57
15
13
70
9
0
0
5
0
0
0
0
0
0
1.4
1933.4
1669
492
396
133
100
85
78
73
71
51
8
7
7
5
3
2
1
1
1
1
3184
1903
532
827
188
100
125
89
100
81
129
17
10
10
5
35
2
55
2
6
12
4228
2681
775
857
203
150
134
89
224
81
445
17
20
10
8
75
3
85
2
146
52
6069
Source: European Biodiesel Board: EU Biodiesel Production Growth Hits Record High in 2005, Bruxelles,
2006.
The data in Table 3 clearly indicate that, in a single year, EU biodiesel

production grew from 1.9 million tons in 2004 to almost 3.2 million tons in 2005, or by
65%. The number of biodiesel producing countries doubled in this one-year period,
and, in proportion to this, production capacities also grew, reaching upward of 6
million tons. The market share of biodiesel in the EU amounts to 1.5%, which is close
to the goal (2%) set out in the Directive.
305
1.3. Potential for biodiesel production in Croatia

The supply of biodiesel in the territory of Croatia, Istria included, is far from
sufficient. Biodiesel production in Croatia is mostly known from foreign markets. The
only biodiesel production plant in Croatia is located in Ozalj and has an annual capacity
of 20,000 tons. This volume of production is too small to supply the entire domestic
market, although raw materials and favourable locations for production do exist.
The most important domestic crops for vegetable oil production are sunflower,
soybean and rapeseed. Olive oil is produced in Croatias maritime regions, while the
production and consumption of other types of vegetable oil such as pumpkin seed oil and
corn oil are negligible. The total production of rapeseed over the past decade in Croatia
has ranged from 11,000 tons to 24,000 tons, and only in 1999 did production reach the
pre-war levels of more than 30,000 tons of raw material. In Croatia, on a total sown area
of 1,080,000 hectares, rapeseed, sunflower and soybean accounted4 for 8.7% and 6.9% of
crop production in 2003 and 2004, respectively. The composition of land sown in oil
crops in Croatia5 was as follows:
In 2003, an area of 94,290 hectares consisting of:
- rapeseed
15,891 hectares - 16.85%
- soybean
50,286 hectares - 53.33%
- sunflower
28,113 hectares - 29.82%
In 2004, an area of 79,811 hectares consisting of:
- rapeseed
14,299 hectares - 17.52%
- soybean
37,131 hectares - 46.52%
- sunflower
28,381 hectares - 35.56%
Oil crops and, in particular, rapeseed can also be cultivated in Istria. The valleys
of the Rivers Mirna and Rasa are especially promising for this type of production, but
other areas show potential as well. Out of a total surface area6 of 281,900 thousand
hectares in Istria, farmland accounts for 171,500 thousand hectares of which 98,600
thousand hectares are cultivated.
In Istria, about 72,900 thousand hectares are uncultivated, and this land could be
used for growing oil crops, in particular, rapeseed, for which the conditions in Istria are
favourable. These 72,900 thousand hectares could yield up to 72,200 thousand tons of
biodiesel which could help meet requirements for biodiesel in Istria.
There are a number of reasons why it would be advantageous to implement the
production of this crop in Croatia. First, this production helps towards enhancing the
environmental protection of the land. Second, biodiesel production contributes to the
production of alternative products to energy sources that are increasingly being depleted.
Third, this production will help to improve the structure of businessnes and the economy,
and it will create new jobs. Finally, the production and processing of rapeseed will help to
improve the earlier levels of farmland usage. If we add to this other activities, such as the
collection of waste vegetable oils from households and kitchens of catering facilities, the
opportunity for creating new jobs takes on a broader dimension.
4
Ivanov, D.: prezentacija proizvodnje biodizela u RH, Nasice, 2006

Ibidem.
6
Ruzic, P.: Ruralna ekonomija Istre, Institut za poljoprivredu i turizam Porec, Porec, 2004. p 3.
5
306
2.
BIODIESEL AN ALTERNATIVE TO POWER FUELS AND MOTOR

FUELS IN HOSPITALITY AND TOURISM
The properties of biodiesel make it a suitable alternative to power fuel (heating

oil) used in the hospitality and tourism industries for heating rooms in hotels and
restaurants, and water in bathrooms, swimming pools and kitchens. Also, biodiesel can
substitute mineral diesel for fuelling transportation means used in tourism, excursion
ships and buses, taxi services for tourists at sea, tourist trains in destinations, etc.
2.1. Biodiesel as a power fuel alternative in the hospitality industry
For the use of biodiesel as a fuel alternative in restaurants and hotels to be
cost-efficient, the biodiesel should be produced from waste vegetable oil the raw
material generated by the hospitality facilities. By transforming waste vegetable oil
from restaurants into biodiesel, two vital criteria are met: environmental protection and
the highest possible raw-material utilisation level. An analysis is made on the example
of an average restaurant using simple calculation.
A restaurant produces 300 litres of waste vegetable oil per month X 12 months
= 3600 litre/year. For heating, it uses a maximum of 2500 litres of heating oil. Because
one litre of waste oil yields 0.8 litres of biodiesel, the 3600 litres of waste oil in this
example will yield 2880 litres of biodiesel, a quantity that fully meets the restaurants
annual requirements.
It is interesting to note that an Austrian company purchases waste vegetable
oil from the McDonalds restaurants in Croatia for the purpose of producing biodiesel.
Croatia should follow the lead of this company and begin to tap into its own potential.
2.2. Biodiesel as a fuel alterative to mineral diesel in tourism transportation
The environmental effects of biodiesel should make the strongest case for its
use. For a fact, some advanced countries already have a raised awareness in this
respect, and their models should be applied as starting positions for Croatia's economy
and tourism. Since 1994 in Gratz, Austria, 140,000 public buses are fuelled by
biodiesel.7 The Zagreb public transportation service ZET has 105 buses that could
run on biodiesel. It should be pointed out that the million and a half litres of waste
vegetable oil, collected and exported to Austria every year, could produce enough
biodiesel to drive 40 buses for as long as one year. Were the State to become involved
in such a project by providing subsidies and were efforts made to organise the
collection of waste oil for processing into biodiesel, the needs for fuel in tourism
transportation could be met without any disruptions of the natural equilibrium and
without causing pollution.
2.3. Economic effects of introducing biodiesel as a fuel alternative in
hospitality and tourism
Economic effects are realised through the utilisation of waste materials in
creating new raw materials that meet environmental standards. The introduction of
7
Lider, Zamjenska goriva za automobilsku industriju 26.5.2006
307
biodiesel is of vital importance in making tourism development sustainable, because it

helps in maintaining a natural equilibrium. To open large plants for biodiesel products
requires large financial resources; however, one solution could be the opening of national
parks in which waste vegetable oil from the region would be collected and processed into
biodiesel and then used for the needs of the park and te regions tourism associations. Not
only would this solve the problem of waste oil, but it would also create new jobs, reduce
operative costs and contribute substantially to environment protection.8Such a plant could
have a capacity of 9,600 litres per day.
The prices at which biodiesel is sold are not set in advance, but an indication
would be the EU prices of biodiesel that are 7% to 15% lower than the prices of mineral
diesel depending on a countrys tax policy.
Table 4.: Price of biodiesel and mineral diesel at petrol stations in Germany
Fuel
Price /litre
Diesel
1.0853
Biodiesel
1.0095
Price difference
0.0758
Source: www.ufop.de
In Germany, the price of biodiesel is lower than that of mineral diesel by EUR
0.0758/litre.
2.4. Environmental advantages of biodiesel as a fuel alternative in hospitality

and tourism
Environmentally clean production is defined as the continuous application of
comprehensive prevention strategies of environmental protection to production
processes, products and services to increase efficiency and reduce risks to people and
the environment.9
Biodiesel is the first fuel alternative to have a defined, corresponding standard.
Numerous national biodiesel standards exist: the Austrian ON C1191, the German DIN
51606, the Italian UNI 10635, the American ASTM PS 121-99 and others. Prior to the
adoption of a European standard, the German standard DIN 516060 served as a
reference standard for many producers in countries that did not have their own national
standards for this area. The most recent European standard, EN 14214, adopted by the
European Committee for Standardisation (CEN) has been in use in EU member states
since 2003.
www.poslovniforum.hr
Patricic, R.: Biodizel- projektni prijedlog, Vukovar, 2004, p. 2.
308
Table 5. Properties of diesel and biodiesel per standards

Property
Diesel
(EN590)
Biodiesel
(DIN 51606)
Biodiesel
(EN 14214)
Density at 15C (g/cm)

Viscosity at 40C (mm/s)
Sulphur (% of mass)
Sulphated ash (% of mass)
Water (mg/kg)
Carbon residue (% of mass)
Contamination (mg/kg)
Copper corrosion 3h/50C
Cetane number
Methanol (% of mass)
Ester (% of mass)
Monoglycerides (% mass)
Diglycerides (%of mass)
Triglycerides (% of mass)
Free glycerol (% of mass)
Total glycerol (% of mass)
Phosphorous (mg/kg)
Alkaline metals Na, K
(mg/kg)
0.82-0.86
2.0-4.5
0.2
0.01
200
0.3
Class 1
>45
-
0.875-0.9
3.5-5.0
<0.01
<0.03
<300
<0.03
<20
Class 1
>49
<0.3
>96.5
<0.8
<0.4
<0.4
<0.02
<0.25
<10
<5
0.86-0.9
3.5-5.0
<0.01
0.02
<500
<0.03
<24
Class 1
>51
<0.2
>96.5
<0.8
<0.2
<0.4
<0.02
<0.25
<10
<5
Source: www.zr-leap.org/dokumenti/Biogoriva.doc
Biodiesel is the first and, at present, the only fuel alternative that has undergone a
complete assessment of exhaust emissions and potential health risks according to a program
of the Environmental Protection Agency (EPA). This program involves the most rigorous
test procedures for fuel certification. Data resulting from this program represent a
consummate inventory of the effects of biodiesel on the human environmental and human
health.
Research conducted at the University of California (USA) has shown that diesel
engines running on pure biodiesel B100 have a substantially lesser emission of fumes and
particulate matter (PM). Emission reduction is about 40% in average. A lower emission of
fumes and PM is also achieved when using a mixture of conventional diesel fuel and
MERU (for B20: PM reduction, 12%; CO reduction, 12%; HC reduction, 20%; NOx, 2%
emission increase).
Similar results have been obtained in US research with regard to reductions of
CO (by about 40%) and hydrocarbons (by about 65%). Only emissions of nitrogen oxide
(NOx) demonstrate an increase in the average of 10% in biodiesel-powered diesel motors.
This is because MERU molecules contain chemically linked oxygen. However, the
problem can be solved using an iridium catalyst that is capable of reducing nitrogen
compounds by 13.35% relative to mineral fuel. Also, the emission of polycyclic aromatic
hydrocarbons (PAH) is lower by about 80%. By using a mixture of 5% biodiesel with
mineral fuel, NOx emissions drop by 0.67%. In comparison to the latest generation of
mineral fuel, the use of biodiesel as a motor fuel reduces the emission of harmful particles
soot emission, the emissions of CO2 by 35% and SOx compounds by 8%, as well as the
emission of hydrocarbons.
European countries (Germany, France, Great Britain) have also obtained similar
research data. A vital property of biodiesel is that it does not contain sulphur and
309
generates considerablly less CO2 during combustion. In fact, the combustion of one litre
of pure biodiesel generates the same amount of CO2 that rapeseed consumes in its
vegetation to produce one kilogram of biodiesel.
Biodiesel is biodegradable and less toxic than a table salt solution. Engines
running on biodiesel demonstrate better combustion, and their fumes do not have an
unpleasant smell, do not contain toxic substances and contain less solid particles.
From the aspect of environmental impact, the technological process of biodiesel
production is environment-friendly and generates no waste material. The process does not
involve the discharge of waste matter from the plant, because waste matter does not exist.
The outcome of this technological process is biodiesel the target product and alternative
to mineral fuel and glycerine fuel, a by-product that is transformed by incineration into
thermal and electrical energy.
CONCLUSION
This paper investigates the social, economic and environmental impacts of
biodiesel production on hospitality and tourism businesses. These impacts are analysed to
confirm the hypothesis: Is it possible to introduce the use of biodiesel into hospitality and
tourism businesses and would it have a positive impact on their economic and
environmental sustainability?
The research in this paper indicates that the introduction of biodiesel into
hospitality and tourism businesses in possible. In the hospitality and tourism trade, biodiesel
can be used as a fuel alternative to heating oil in hospitality facilities and as an alternative to
diesel fuel for running excursion buses, boats, taxis, etc. Being a less expensive fuel and
energy source, biodiesel would have a positive effect of the business economics of the
hospitality and tourism industry. Furthermore, the excellent ecological properties of
biodiesel when used to fuel transportation vehicles or for heating in hospitality and tourism
would help to reduce the emission of harmful gases and substances, which would have a
positive effect on the environmental protection of a destination. The paper also shows that,
in Europe, biodiesel production is increasingly growing, while in Croatia, the first steps in
biodiesel production have already been taken and favourable conditions exist for increasing
production.
The obtained research results confirm the hypothesis that it is possible to
introduce the use of biodiesel into hospitality and tourism businesses and that biodiesel
can help towards improving the economic efficiency of a tourism destination and
preserving its environment.
REFERENCES
Kamenski, M.: Boidizel, Energetika, 4/2001
Patricic, R.: Biodizel-projektni prijedlog, Vukovar, 2004.
Ruzic, P.: Ruralna ekonomija Istre, Institut za poljoprivredu i turizam Porec, Porec, 2004.
Ivanov, D.: prezentacija proizvodnje biodizela u RH, Nasice, 2006
Lider, Zamjenska goriva za automobilsku industriju
University of California, Chemical and Bioassay Analiyse of Diesel and Biodiesel Particulate Matter, 1996,
California
310
M. Filipova: CHALLENGES BEFORE THE ACHIEVEMENT OF A SUSTAINABLE...
T.E.I. Thessaloniki
Greece
UDC 338.48:008
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
CHALLENGES BEFORE THE ACHIEVEMENT

OF A SUSTAINABLE CULTURAL TOURSIM
Milena Filipova
Southwest University N. Rilsky Blagoevgrad, Bulgaria1
Abstract: Tourism as a world culture phenomenon furthers the discovery of various aspects and
manifestations of culture. The cultural tourism allows the familiarization with and illustration of the historical
development of various civilizations throughout the centuries and the achievements in the various fields of
human activities. The tourist travel activates cognitive, informative, communicational and evaluating
functions of perception of reality at the place of destination. Each travel brings a new knowledge and a touch
to an alien social cultural environment; each tourist, even at a subconscious level, performs a comparative
analysis of the alien and of their own culture. Cultural tourism furthers the knowledge, study and comparison
of the cultural heritage. The more unique, authentic and valuable it is, the greater is the power of attraction of
the corresponding tourism destination. Apart and independent from the experts evaluation of the cultural
heritage qualities and features, its value is influenced also by the nature of tourists expectations. Therefore
from a tourism point of view the greater these expectations are, the higher is the evaluation of the cultural
heritage of the corresponding destination.
Keywords: Cultural Tourism, Cultural Heritage.
INTRODUCTION
The actuality of the issues related to cultural tourism is determined by the fact
that at the beginning of the 21st c. the problem of efficient use of human, economic and
natural resources acquires newer dimensions each day. The culture as an activity and as a
heritage acquires a new meaning, becoming a resource of establishing and maintaining a
local, national and regional identity and cultural variety. Processes are being observed of
radical transformations of the role of culture in modern economy and society, and the
cultural sector is increasingly apprehended as a border area of interaction between the
Milena Filipova, Ph.D., Associate Professor, Faculty of Economics, University of Oradea, Romania.
311
social and economic spheres, where the cultural tourism is outlined as one of the most
successful and dynamically developing fields.
The cultural tourism is defined as one of the most perspective sectors in the field
of tourism for the coming century. Cultural tourism offers an aesthetic experience, a
spiritual enrichment and an elate attitude to the cultural-historic heritage of the World. At
the same time the cultural tourism provides an opportunity for direct communication
between people, for understanding and respect for the alien culture, which adds a new
aspect and attractiveness of different destinations. And furthermore, cultural tourism is
also a resource of a huge economic potential, solving a series of economic and social
problems in regard to the employment, preservation and maintenance of the monuments
of culture, being a source of revenues for the development and preservation of crafts,
traditions, etc. Practically cultural tourism is a source of extra-budgetary resources, a tool
of sustainable development, a safe and reliable way to improve the social status of
population. Many international documents state that cultural tourism is one of the major
factors contributing to the rapprochement of peoples, to the prevention of conflicts and
intolerance, to the habituation of respect and tolerance for the alien cultures.
The base onto which the cultural tourism is developed is the potential of cultural
heritage in all its aspects tangible and intangible of the respective region or country.
The paper on the cultural heritage and tourism of the World Tourism Organisation
(WTO) specifies that the will intrinsic to all humanity to see and get familiar with the
cultural originality of the different parts of the world has become one of the posts of
tourism industry. In domestic tourism the cultural heritage enhances the national pride of
the national history. In international tourism the cultural heritage stimulates the respect
for and understanding of other cultures and as a result furthers the peace and mutual
understanding2.
UNESCO distinguishes cultural tourism among all other forms of tourism for
the fact that it renders account of the other peoples culture.3 In the Cultural Tourism
Charter of ICOMOS cultural tourism is defined as a form of tourism with the major goal
to discover monuments and sites4. And again ICOMOS describes cultural tourism as
not a large market segment, organized, cognitive and educational and frequently of an
elite character (...) devoted to the presentation and clarification of the cultural idea5. In
the history of mankind since the antiquity there has always existed an exchange of
cultural experience, ideas, valuables and items through art, trade or migration and based
on that some authors state that the mankinds history is a history of peoples
voyages...6. This way they exclude the probability of understanding cultural tourism as a
new or even less as an alternative form of tourism.
1. COOPERATION AND COMPETITION BETWEEN CULTURE AND
TOURISM
The advent of cultural tourism as a fashionable tourism activity presents
opportunities and threats before its sustainable management. The sustainable cultural
tourism can be defined as a partnership satisfying the goal both of tourism and of the
2
Cultural Heritage and Tourism Development. Madrid: WTO, 2001, .3

The UNESCO Universal Declaration on Cultural Diversity. Adopted by the 31st Session of the General
Conference of UNESCO. Paris, 2 November 2001
4
http://portal.unesco.org/culture
5
ICOMOS Tourism Handbook for World Heritage Site Managers. ICOMOS, 1993, .3.
6
UNESCO International Symposium on the Silk Roads. Xian Declaration. 2002
3
312
management of cultural heritage.7 But is this ideal realistic, and can it be achieved in the
large range of products and practices of cultural tourism? Ideologically more of the
stakeholders in tourism and in cultural heritage management acknowledge the mutual
benefits that could be accumulated from such cooperation.8 For example, ICOMOS in
their second tourism charter stated Tourism can capture the economic features of
heritage and harness them for preservation by generating financing, by educating the
community and by influencing the policy9. Nonetheless many authors consider that the
partnership is not an easy one, as the management of tourism and cultural heritage often
seem incompatible.10
The practice shows that the partnerships work best when consisting of a limited
number of stakeholders, all of them having similar values. On the other hand, a conflict or
a potential conflict is more likely to emerge when there are many stakeholders taking
part, having different values or when the actins of one group of stakeholders are standing
in the way of the achievement of aims of another group.11 The interference in the aims
can be a direct one, when direct actions of the others influence ones experience or an
indirect one when there is a common and widely spread sense of dislike or unwillingness
to appreciate other peoples outlooks.12 As time passes, if the conflicts are not solved,
they are prone to evolve from an intellectualin its nature and therefore a restrained debate,
into one that becomes personal and emotional in its essence.
Such a situation arises often, or at least has the potential to arise often, in regard
to cultural tourism. Kerr notes that what is good for preservation is not necessarily good
for tourism and what is good for tourism is rarely good for preservation.13 Practically a
compromise is made with the cultural values for a commercial benefit, when the cultural
assets are presented as tourism products converted into goods for the visitors easy
consumption.14 In the same way a compromise is made with the tourism values for some
assets when there is a governmental approach to consider each touristificaiton a
corrupting impact.15
A great part of the modern history of cultural tourism is characterized rather by the
competition for the use of the same resource than by the collaboration for the achievement
of mutually beneficial aims. The competition is often mistakably interpreted as a game, in
which there are only winners and losers, but in reality most of the competitors show both
7
McKercher B., Cros H., Cultural Tourism: the partnership Between Tourism and Cultural Heritage
Management, 2002, The Haworth Hospitality Press, p.8
8
Robinson M., Collaboration and cultural consent: Refocusing sustainable tourism, Journal of Sustainable
Tourism, 7(3/4) 1999, p.382
9
ICOMOS 1999: paragraph 5
10
On this issue, please, see: Boniface P., Tourism culture, Annals of Tourism Research, 1998, 3, p. 746-749;
Jacobs J., Gale F., Tourism and the protection of Aboriginal cultural sites, Australian Heritage Commission,
1994, 10, p. 431-452; Jansen-Verbeke 1998; Garrod B., Fyall A., Managing heritage tourism, Annals of
Tourism Research, 2000, 3, p.682-708
11
Jacob G., Schreyer R., Conflict in outdoor recreation: A theoretical perspective, Journal of Travel
Research, 1980, p. 369
12
Jackson E., Wong R., Perceived conflict between urban cross country skiers and snowmobilers in Alberta,
Journal of Leisure Research, 1982, p.42-62
13
Kerr A., Strange bedfellows: An uneasy alliance between cultural conservation and tourism, ICIMOS
Canada, 1994
14
Management, The Haworth Hospitality Press, 2002, p.211
15
Hovinen G., Heritage issues in urban tourism: An assessment of new trends in Lancaster Country ,
Tourism Management, 1995,5, p.381-388
313
complementing and contradictory interests.16 In other words although both tourism and
cultural stakeholders can have some different goal, they share many common goals, too.
Both groups can benefit by building onto this common foundation.
The competition can aggravate when the balance of forces between the
stakeholders changes as it happens with many sites of cultural tourism.17 The change of
government bringing to the advent of a new dominating stakeholder in the management
of tourism or in cultural heritage, and the concomitant enervation of the other
stakeholders, will result in the sense of indignation with and distrust towards the new
stakeholder. This way it is not unusual for the heritage managers, for example, to call into
doubt the benefits from such of tourism and to argue that they are based rather on some
anecdotal information and hope, than on some empirical evidence.18
The history of cultural tourism, particularly of the stages of its emergence or of the
fast development of tourism in general, is one of allowing the tourism become the
dominating stakeholder and after that to deal the cultural values, in order to multiply the
gains of tourism. The tourist industry in general and the destination sellers in particular who
are most interested in the increase of the number of visitors, often know little of or have a
little respect for the impacts of tourism activities on the cultural assets they advertise.
The same way the history of management of preservation, particularly in the
fully developed destinations or in the developed world, is one of trying to affirm the
management of cultural heritage as the dominating stakeholder and at that to decrease or
limit the number of visitors. David Lowenthal notes that the managers of cultural heritage
sometimes take their keeping of assets so seriously that they become overpossessive or
selfish in treating such assets when challenged by other stakeholders whose requirements
for the use of such assets can differ or finally overlap with those of tourism.19
It is not surprising that tourism and cultural heritage management are looking to
each other with suspicion because apart from their resource base, they have very little in
common. Each discipline has evolved independently with a different kernel of ideology
and values, to serve to a different group of stakeholders, different political masters, to
achieve different goals, and to perform different roles in society. The professionals in
tourism industry appreciate the cultural assets as raw materials for their products to
generate activity and welfare of tourism. The professional in cultural heritage
management appreciate the same assets for their intrinsic merits.
The lack of cross communication is disappointing, regardless of the fact that
cultural tourism has been a separate category of tourism product for more than twenty
years. This lack of cross communication brings to a lack of cross exchange of ideas and
lack of understanding of the fair needs of every stakeholder.
16
Pinkley R., Dimensions of conflict frame: Disputant interpretations of conflict, Journal of Applied
Psychology, 1990, 2, p. 119
Management, The Haworth Hospitality Press, 2002, p. 123
18
Jamieson W., The use of indicators in monitoring: The economic impact of cultural tourism initiatives,
ICIMOS Canada, 1995
1
9 Lowenthal D., Selfishness in heritage, Contemporary issues in heritage and environmental interpretation,
The Stationary Office, London, 1998, p.29
17
314
Table 1.: Comparison between the management of cultural heritage and tourism
Structure
Aims
Key stakeholders
Economic attitude
to assets
Key groups of
stakeholders
Field of activities
Cultural Heritage Management

Public sector-oriented
Non-profit
A larger social goal
Community groups
Heritage groups
Minority / ethnical / local groups
Local residents
Organisations of heritage
professionals / local historical
groups / religious leaders
Value of existence
Tourism
Private sector-oriented
Profit pursuing
Commercial goals
Business groups
Non-local residents
National tourism business
associations, other bodies of
industry
Value of use
Protection for their intrinsic values
Consumption for their intrinsic or

non-intrinsic attractiveness
Local residents
Non-local residents
Sociology/arts
Business/marketing
Valuable for the tourist as a
product or activity that could
help for the identification of a
destination
Use of the asset
Valuable for the community as a

representation of a tangible or
intangible heritage
International political
bodies / NGO /nongovernmental
organizations/
ICOMOS/ICOM/ UNESCO
(supporting the preservation of
culture)
WTO / WTTC
(supporting the development of
tourism)
Source: McKercher B., Cros H., Cultural Tourism: the partnership Between Tourism and Cultural Heritage
Management, The Haworth Hospitality Press, 2002.14
Table 1: studies the differences between the management of cultural heritage

and of tourism. The cultural heritage management is established to preserve and protect a
representative model of our heritage for the future generations. Its purpose is to serve for
the benefit of the general public. As seen in Table 1 the cultural heritage management is
structured mainly around the public sector or non-profit organisations. The stakeholders
are community groups and representatives of local or ethnical groups and they pay regard
to the assets for their intrinsic value. The professionals in the cultural heritage
management come from the circles of sociology or arts.
And vice versa, tourism in its nature is a commercial activity dominated by the
private sector and driven by the profit and the will of government to achieve economic
goals. The stakeholders are representatives of the commercial sector and are driven by the
commercial goals. Because of this focus the tourism is much interested in the
consumption value of assets rather than in their existential value. The professionals in
tourism industry come from the commercial world and most of them are business school
graduates focused on the tourism business or marketing.
315
2. SUSTAINABILITY OF CULTURAL TOURISM

The significance of cultural tourism has various dimensions. On the one hand
it has a positive economic and social impact, contributes to the establishment and
outlining of identity of preservation of the local cultural heritage. On the other hand,
the culture is the major factor for the achievement of harmony and understanding
between people.20
The presence of monuments of culture and historical sights on the territory of a
country is the basic prerequisite for the development of cultural tourism and for the
diversification of the tourism product. Their availability enables offering of authentic
tourism products relating them to the lifestyle of the local population. On the other hand,
the sustainable development of cultural tourism is built on the three requirements below:
Justified tourist experiences;
With attention to the protection and preservation of cultural heritage;
The local population receives economic benefits.
Hence the process of development of cultural tourism includes factors (see Fig.1) as:
Resources: cultural heritage
Mechanisms of influence and consumers experiences
Benefits.
In terms of resources the cultural heritage presents the input resources for the
formation of the tourism product. The cultural heritage component is focused on their
inventory, appraisal, protection, support and socialization.
Figure 1. Process of development of cultural tourism as a sustainable part of tourism
Input resources
CULTURAL HERITAGE
Mechanism of influence and tourists

experiences
Outcome
BENEFITS
For the visitors and tourists
For the local population the hosts
Source: Ribov M. & Co., Tourism in the Age of Entertaining Industry, S., 2008
20
Richards G, Production and consumption of European cultural tourism, Annals of Tourism Research, 199,
2, p.270
316
The mechanisms of influence and the tourists experiences are practically

transformation of the input resources (the cultural heritage) so that they could be used
by the consumers. The influence and impact have different aspects like enrichment,
education and understanding. The tourists experience can have emotional, physical,
intellectual or even inspiring and creative aspect. The impact of cultural heritage is often
pointed to be the most significant and remembered factor of tourist travel, of which we
tell friends and relatives and/or of which we take a picture of memory. For the sake of
sustainability of cultural tourism the benefits resulting from it should be available for two
large groups (see Fig. 1):
visitors (tourists) who use the cultural heritage as a resource in the form of the
tourism product the local residents hosts, on the territory of whom the cultural
heritage is located, they are in charge of its preservation, saving, management,
production and offering of the tourism product .
These benefits have a multiplying effect and impact on all the parties involved
providing an unforgettable experience for the tourist, and an adequate care for and
support of the resources, revenues and employment for the host community, as well as
preservation of the historical past by developing and socialising new sites of cultural
heritage, etc. The cultural-historic sights attract tourists and contribute to the restoration
of the existing buildings and infrastructure, which sometimes from an economic point
of view can be more beneficial than to build up new ones. It is important to note that
there is an integrated two-way relation between culture and tourism. (See Table 2)
Table 2. Reciprocal influence between culture and tourism
Influence of culture on tourism
Influence of tourism on culture
The culture, art and historical heritage are one

of the basic factors responsible for the
recognition of the tourism destination.
The revenues from cultural tourism can

contribute to the maintenance and preservation of
the cultural heritage
Has influence on the local population new
cultural sites are established, greater revenue is
generated, new places of employment are
opened. Contributes to the enhancement of the
host populations standard of life.
Stimulates undertaking of journey with the

purpose of acquainting with new cultures,
values, traditions, etc., outside the permanent
area of residence.
Motivates and directs tourist flows to a
particular destination (for example Greece,
Italy, etc.), this way improving the conditions
of tourists reception and generating income
(export at the place).
Has influence on the culture of the tourists

sending countries.
Uncontrolled impact and number of visitors
destruction of the cultural-historic heritage,
negative influence on the host community.
One of the major characteristics of the cultural tourism is its all the year round
character and the opportunity of development of a responsible and sustainable tourism. It
is the cultural tourism that is pointed out to be a sustainable form of tourism, on which
many countries rely on to establish new employment and to revive the local economy.
317
The sustainability of the cultural tourism is due to the fact that apart from creating an
economic effect, it also contributes to the preservation of the cultural-historic heritage,
development and enrichment of modern culture, provides an adequate interpretation of
the cultural heritage as in the form of tourism resources and adds authenticity to the
tourist experience. Hence the cultural tourism not only concerns the issues related to the
identification, management and preservation of the cultural heritage values, but also
influences the society and whole regions, bringing economic and social benefits,
providing financial receipts for protection, marketing and advertising.
3.
INTERRELATIONS BETWEEN TOURISM AND MANAGEMENT OF

CULTURAL HERITAGE
The historical isolation brings to a series of possible relations between tourism

and cultural heritage management. It could be gone behind the possible links by studying
the relationship between tourism and environment, which has been a subject of scientific
research for more than twenty-five years. Budowski argues that there could be three
possible relations between tourism and people defending the nature preservation.21 There
had been a trend of coexistence in the riginating phase of the development of tourism at
which a small number of operators brought a relatively small number of customers to
nature areas. As their activities were much dispersed there was a small number of
contacts between the tourists and environmentalists. Tourism was considered an
unthreatening activity. However with the increase of the numbers in tourism there has
been a greater probability of a conflict state to arise particularly at the vacuum of efficient
plans of management of protection. Most probably a conflict will spring up when tourism
is perceived as harmful to nature and its resources. A symbiotic relation can exist only
when tourism is considered a supplement to the universal goals of management, but the
symbiosis is rare and occurs only as a result of a direct management intervention.
Different interrelations can occur between tourism and cultural heritage
management. True partnership. This situation is most easily achieved in purposeful
institutions like museums, art galleries or heritage thematic parks, or in purposefully
designed practices of cultural tourism, like dance performances or minority/local cultural
performances. The practices desired by the tourist can be worked out there around a
desired group of sites of culture or heritage management. Mass tourism attractions like
historical thematic parks can aim at providing an entertaining or educational orientated
tourism practice which purposefully offers the visitors some superficial but yet full of
meaning experience. On the other hand, the museums, art galleries and cultural tours can
create their products so that they offer the visitors the chance to be a part of the attraction
or enjoy an experience at a much deeper and intellectually more challenging level.
Full cooperation is more easily achieved in such institutions as the number of
competing stakeholders is limited, a clearly defined set of managing goals has been
identified and agreed by all the parties, the economic needs of tourism are evaluated
together with the ideals of cultural heritage management and there is a clear
authority/management hierarchy to guarantee that the goals of both can be achieved in a
21
Budowski G.,Tourism and conservation: Conflict, coexistence or symbiosis?, Environmental Conservation,
1977, 3, p.27-31
318
balanced way. Up-down leadership, combined with a shared vision that such facilities can
serve both for tourism and cultural purposes guarantee that all the compromises have
been made to satisfy the needs of both parties.
It is more difficult but not impossible to achieve real partnerships in nonpurposeful facilities. In such cases there should be a mutual agreement between all
stakeholders that the process of management will be dominated by the interests of
tourism or of cultural heritage management and that the needs of the other will be
modified to serve to the needs of the universal management goals. This way various
management approaches and attitudes towards the supply of experiences will be applied
to the historical buildings, developed rather for tourism use, than to ones conserved
mainly for their intrinsic value. In the first case the facility shall be managed in a way that
facilitates its consumption; and in the second consumption will be allowed but only to
the point in which it does not stand in the way of the cultural values preservation.
Working relations are most probable to exist in the available assets that are
shared by tourism and cultural heritage management. Both groups of stakeholders
appreciate the fact that the other has a legitimate interest in the asset of question, and both
recognize the fact that though they can have some differences, they also have much in
common. As time passes a working relationship is developed between the stakeholders,
and each of them is inclined to make some adjustments to satisfy the others needs. The
management structures are at the place to keep the relation that has come into being.
This situation works well when the relations of power remain relatively stable
and new stakeholders do not pretend to have interest in the asset. The empowerment of
one stakeholder or the introduction of new ones, as the discovery of a cultural asset by
a new tour operator who decides to bring a large number of tourists at the site can break
the balance of such a relation. The productive work relations can exist with tourism
products of low or high rate of visits, if they are managed for such levels of consumption.
When both groups of stakeholders share the resource but feel a little need to cooperate,
the working relations can develop into a peaceful coexistence. Such a type of situation is
most probably to occur when the levels of visiting rates are low or when a large number
of tourists use the product in a non-obstructive manner.
There is a parallel existence when tourism and cultural heritage management act
independently and the tourists have a small interest in the cultural assets of the
destination. Such situations are most probable to occur when there is a low tourist activity
or when the activity is focused around other properties of the destination as beach,
resorts, open-air recreation or games. The cultural tourism is not interpreted as a part of
the productive attributes of the region, it is not advertised and the assets are little used.
When there is an arising conflict the actions of one stakeholder have an opposite
effect on the other. The problems that occur are not susceptible to easy solutions. An
arising conflict will occur when a stable system is brought out of the standstill by external
factors. It will probably occur also when the power relation between the stakeholders
changes fundamentally. This way the decision to include an asset of the cultural heritage
into a trip itinerary without consulting with the asset managers can bring to a state of an
arising conflict. Similarly the changes in the management plan that look beneficial to one
stakeholder directly to prejudice of the other, can trigger an arising conflict.
319
An open conflict can occur between the stakeholders in heritage and tourism.
Most probably a conflict can arise when there are real or perceptible differences between
the stakeholders and the way they treat the assets22, as well as threats to the access or
exclusivity23, differences in the styles of activity24, or differences in the stakeholders
desires and motivation to pursue a specific activity25. An open conflict is most probable
to occur when there is a management vacuum that could not stop or hamper the change.
The origination of tourism as a dominating user combined with the perception
that the assets are managed for tourist use to the prejudice of their intrinsic value can
bring to a state of conflict with the supporters of the cultural heritage management.
Alternatively, imposing of rigorous management plans that restrict the number of tourist
consumptions that have been allowed before can result in a sense of a loss of power and
conflict among the stakeholders in tourism. The inflow of a large number of tourists can
shift an asset from its equilibrium state changing the essence of the relation between
tourism and cultural heritage management. The development of an unplanned tourism
infrastructure in the vicinity of assets of heritage is often a problem for the heritage
managers in the developing countries where there are no town planning mechanisms. The
world heritage centre of UNESCO encourages those nominating sites to be included in
the Cultural heritage list to provide evidence that such mechanisms work before the
proposal is studied (UNESCO World Heritage Centre 2000).
CONCLUSION
The practice proves that in many cases the type of relation between cultural
heritage management and tourism tends to the direction of a conflict. The destination
sellers either ignore the cultural heritage managers by creating strategies supporting the
consumption of the cultural assets of their region, or demonstrate a sense of helplessness
that those people do not understand the benefits which could be brought by tourism. The
tour operators go on bringing people to the cultural attractions and nurturing incorrect or
improper approaches to the sites. The cultural heritage managers, on the other hand,
choose to ignore the reality of tourism and doing it they complain of the unfavourable
impacts of tourism on the heritage assets.
The failure to estimate the link between the cultural heritage management and
tourism results in offering of non-optimal products of cultural tourism and in continuing
unsustainable development of this sector. The failure to recognise that tourism is a
legitimate user results in failure to understand and present the cultural assets in a way that
is appropriate to the tourists needs. The consequences can be low rate of visits and
reduced satisfaction threatening the commercial viability of the asset. Even worse, the
22
McKercher B., Some fundamental truths about tourism: Understanding tourisms social and environmental
impacts, Journal of Sustainable Tourism, 1993, 1, p.6-16
23
Pigram J., Tourism in the coastal zone: The question of public access, Contemporary issues in Australian
tourism, 1984, p. 1-14
24
Journal of Leisure Research, 1982, p.42-62; Jacob G., Schreyer R., Conflict in outdoor recreation: A
theoretical perspective, Journal of Travel Research, 1980, p. 368-380
25
Manning R., Growing norms in backcountry settings: A review and synthesis, Journal of Leisure Research,
1985, 2, p.75-89
320
consequences can be continuing high levels of visit rates without any directions how the
asset should be use which will make the tourists themselves determine how to do that
thus threatening the asset.
The failure by the part of the tourism interests to recognise that the cultural and
heritage assets have their legitimate intrinsic value, above and beyond their value as
products, and that those values are significant for other consumers besides the tourists,
means that tourism can conquer such an asset and injure the essence of that making it
attractive at first place. And apart from that the failure of some elements of tourism
industry to explain the intrinsic values takes from the quality of the experience offered.
Also the unethical actions of some tour operators who not only allow but even encourage
the inappropriate use of the cultural assets can directly lead to the destruction of the asset
or to an open conflict with the local keepers or tradition bearers.
An increasing number of assets managers realize that tourism plays an important
role in the overall management and presentation of their institution. They work for the
involvement of the tourism needs in their actions and strive to develop products meeting
the interests of tourism industry. In addition a series of tourism professionals nowadays
acknowledge that the products of cultural tourism should be treated differently from the
other tourism products and that they exist to satisfy something more than the narrow
interests of tourism.
The solution should be sought in partnerships. Partnerships will most probably
occur when the stakeholders have a mutual understanding of their needs and recognise
that both tourism and cultural heritage management have a legitimate interest in the
cultural heritage assets used by tourism. Understanding could be achieved only in the
way of a real development of recognition for the other partys interests and values. This
means that the interests in tourism should be developed into realisation of the concepts,
ideals and practices of the cultural heritage management. Similarly the stakeholders in the
cultural heritage management should develop an understanding of what tourism is and
how it works. Through a mutual understanding both groups can work in order to establish
their shared interests in the assets and to work for the settlement of their differences.
REFERENCES
Boniface P., Tourism culture, Annals of Tourism Research, 1998, 3, p. 746-749
Cultural Heritage and Tourism Development. Madrid: WTO, 2001
Gallagher M., Taking a stand on hallowed ground, Planning, 1995, 1, p.10-15
Garrod B., Fyall A., Managing heritage tourism, Annals of Tourism Research, 2000, 3, p.682-708
Hovinen G., Heritage issues in urban tourism: An assessment of new trends in Lancaster Country, Tourism
Management, 1995,5, p.381-388
ICOMOS Tourism Handbook for World Heritage Site Managers. ICOMOS, 1993
ICOMOS Cultural Tourism Charter, ICOMOS, Paris, 1999
Journal of Leisure Research, 1982, p.42-62
Jacob G., Schreyer R., Conflict in outdoor recreation: A theoretical perspective, Journal of Travel Research,
1980, p. 368-380
Jacobs J., Gale F., Tourism and the protection of Aboriginal cultural sites, Australian Heritage Commission,
1994, 10, p. 431-452
Kerr A., Strange bedfellows: An uneasy alliance between cultural conservation and tourism, ICIMOS
Canada, 1994
321
Lowenthal D., Selfishness in heritage, Contemporary issues in heritage and environmental interpretation,
The Stationary Office, London, 1998, p.26-36
Manning R., Growing norms in backcountry settings: A review and synthesis, Journal of Leisure Research,
1985, 2, p.75-89
McKercher B., Some fundamental truths about tourism: Understanding tourisms social and environmental
impacts, Journal of Sustainable Tourism, 1993, 1, p.6-16
Management, The Haworth Hospitality Press, 2002
Pigram J., Tourism in the coastal zone: The question of public access, Contemporary issues in Australian
tourism, 1984, p. 1-14
Pinkley R., Dimensions of conflict frame: Disputant interpretations of conflict, Journal of Applied
Psychology, 1990, 2, p. 117-126
Ribov M. & Co., Tourism in the Age of Entertaining Industry, S., 2008
Richards G, Production and consumption of European cultural tourism, Annals of Tourism Research, 199, 2,
p.261-283
Robinson M., Collaboration and cultural consent: Refocusing sustainable tourism, Journal of Sustainable
Tourism, 3/4, 1999
The UNESCO Universal Declaration on Cultural Diversity. Adopted by the 31st Session of the General
Conference of UNESCO. Paris, 2 November 2001
UNESCO International Symposium on the Silk Roads. Xian Declaration. 2002
http://portal.unesco.org/culture
322
M. Krstinic Nizic, G. Karanovic, S. Ivanovic: IMPORTANCE OF INTELLIGENT ROOMS FOR
T.E.I. Thessaloniki
Greece
UDC 640.4:621.31
Rewiev
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
IMPORTANCE OF INTELLIGENT ROOMS FOR

ENERGY SAVINGS IN THE HOTEL INDUSTRY
Marinela Krstincic Nizic
Goran Karanovic
Sasa Ivanovic
Abstract: Thanks to the application of new technologies which enable rational use of energy, hotel
company can now reduce power consumption per night compared to the average expenses of hotels of same
quality. This has been enabled by the implementation of so- called intelligent hotel-room system, which
includes control system and optimal consumption of energy and water, along with regulation and optimal use
of heating and cooling system. The underlying assumption of this report states that the efficacy of energy is
not the result of the investment in sophisticated technology only, but is also modified by monitoring and
active management of energy consumption. Therefore, it requires specialist knowledge and maintenance
workers training. Thus, companys ecological orientation demands an additional advance in the domain of
human resources administration. From the economic standpoint, the report deals with the research in
economic effects of intelligent hotel room based on the research in concrete examples in hospitality industry.
Furthermore, the paper analyses growing demands and problems in energy supply system of large tourist
facilities which have to provide an ultimate solution to energy consumption. In conclusion, there is a need of
hotel companies to conduct their business in accordance with ecological demands.
Keywords: intelligent hotel room, new technologies, energy.
1
Marinela Krstincic Nizic, M.Sc., Assistant, Goran Karanovic B.Sc., Assistant, Sasa Ivanovic, M.Sc.
Scientific Researcher, Faculty of Tourism and Hospitality Management in Opatija, University of Rijeka,
Croatia.
323
INTRODUCTION
The concept of intelligent hotel room is related to an intelligent business
system called Business Intelligence (BI). The term does not imply databases or lengthy
reports, moreover it is a system which assists the decision-making process of a
company.
The Hotel industry acquires a vast amount of data from various systems:
starting from information technology to excel file in which data is entered on weekly,
monthly or quarterly basis by analysts, officers, controllers and the rest of personnel.
Nevertheless, the data can generate knowledge only after it has been processed and
presented in an appropriate manner. Otherwise, it is just another fragment stored on the
database worthless to the company. Business intelligence systems enable
transformation of that data into a piece of information and is clearly and simply
presented to the end user, which allows making the right business decisions based on
accurate, precise and detailed information.
Execution and advisory experts in business intelligence sectors point out
endless possibilities, while the management has to choose information relevant at a
particular moment. Accurate and well-timed information facilitates bringing the most
favourable decisions, thus possibly reducing expenses. Implementation of knowledge
and appliances helps an intelligent room to accomplish its goals by:
saving in electric power and water consumption
co-ordinating and unobstructing operation of all appliances in room v
maximizing comfort and safety of guests
enhancing safety and quality level
increasing efficiency of hotel staff thanks to continuous flow of new
information
raising environmental awareness among guests and hotel staff
As everything stated above shows, the objective of this paper is to
demonstrate that thanks to knowledge and new technologies it is possible to use energy
in a more rational way within a hotel establishment starting from a hotel room as the
smallest unit, as well as to run business in an environmentally responsible manner. The
subject matter of the research project is the analysis of electric energy consumption per
month at Sol Garden Istra Hotel in Umag. Thanks to application of new technologies
there was a 32,44 % decrease in energy consumption per night when compared with the
average consumption in hotels of same quality. Analysis of several large hotel chains
and their strategies on energy savings have also been presented in the paper. The
central task of the paper is to prove the thesis that only with high-quality planning and
construction solutions, along with sophisticated technology for consumption
monitoring, required specialist knowledge and personnel training, maximum energy
efficiency can be achieved.
The paper consists of an introduction and four chapters. The first chapter
presents functions and the way in which an intelligent room operates. A comparison
between a hotel with an intelligent-room system and those of the same quality and size
but without the system, as well as an analysis of energy consumption at hotel chains
324
worldwide, is made in the second chapter. The third part brings energy conservation
tips, and the fourth chapter accounts for specialist knowledge and human resources
training. The conclusion urges that operational efficiency has to be increased by
limiting energy consumption, continuous equipment maintenance and investment in
human resources.
1.
INTELLIGENT ROOM CONCEPT
The term intelligent or smart hotel room denotes a microprocessor-operated

unit which controls all parameters important for hotel room operation. That includes
the control of temperature, entrance/exit, alarm system, etc. In order to increase
efficiency, the units are connected to a computer, thus bringing the entire system under
one central control2. At present, computers have the major role in all hotel industries
because, except record keeping, they are used for operation, and they control the entire
system as well. It has been proven that investments into new technologies are lucrative
in a short time, not only financially, but also in terms of increased efficiency and
safety.
European Installation Bus (EIB) is the leading system of intelligent wiring
worldwide which will in the forthcoming future fully replace traditional wiring and
give us the possibility to adjust our living space (hotel room) to ourselves. There are no
technical limitations regarding the size of the system or slow information flow.
Limitations are primarily the result of architects creativity and users desires. The
users of an intelligent room are not only guests, but hotel staff at all levels as well. It is
guests who stay in rooms, so their requirements, expectations and desires should be
anticipated, prescribed and satisfied, since customers define quality.3
One of the central problems that hoteliers confront is the high demand of
electricity used by tourists and tourist facilities at peak times of the day: this can
sometimes result in electric surges and power failures. This kind of peak load, in quite
a few cases, costs as much as the daily electrical energy consumption. The total power
used in a hotel is not fixed; moreover it reaches its maximum at particular times. This is
usually after lunch time when the majority of people use air conditioners, hot water,
etc. Since these sorts of electric surges that the power grid receives are predictable, the
EIB system can accumulate energy (hot water, lowering temperature in rooms) in order
to control extra consumption during this period.
On the other hand, peak loads that do not occur in regular intervals are
unpredictable, thus a measuring instrument that sends information about current use to
the EIB system every 2-3 seconds, is used. Based on the information received, the
For more see http://www.adria-electronic.hr/hoteli.htm (25.11.2007)

Avelini-Holjevac, I., Estetika i dizajn kao dimenzija kvalitete proizvoda i usluga primjer: Hrvatski
turisticki proizvod, 8. Hrvatska konferencija o kvaliteti pod motom Kvaliteta kao drustvena stvarnost,
Conference Proceedings (CD), Hrvatsko drustvo za kvalitetu, Brijuni, 14.-16.svibnja 2007
3
325
system will discard and reinstate loads on to power grid. Additional loads will be
defined in accordance with hotel technology.4
An intelligent hotel room includes several operational systems, and according
to occupancy status at a moment, it chooses the appropriate operational system itself
(table 1).
Apart from the presented operational activities, it is possible to set other
functions as well, guests reception at the room for example. On entering a room and
inserting a keycard, the energy usage could rise from 0% to 100% as certain facilities
such as lighting, air conditioning and shutters are activated.
Intelligent room function can be performing in several ways, nevertheless, the
mode that has the most cost-effective price-requirements ratio will be chosen.
Right of access to restricted areas in a hotel is controlled by keycard to which
a function required is given in a given moment. There is a difference between hotel
staffs key and guests key. Keycards assigned to hotel staff give access to hotel areas
according to job description, and are issued in employees name, with or without expiry
date.
Table 1: Example of room occupancy status and operational system
PRESENT SITUATION
OPERATIONAL SYSTEM
Room is not allotted
All electrical appliances are off, except cooler (mini

bar)
Room is allotted,
guest is not present in the
room
Cooler in use;
AC unit keeps temperature 3 C lower than outside
temperature;
AC unit does not function if the window is open;
Room is allotted
guest is present in the
room
All room appliances and functions can be used;

room temperature-according to guests request (e.g.
22-28 C)
AC unit does not function if the window is open;
Room is not allotted

Presence in the room
detected
Reception informed of an unauthorised entrance (hotel

visualisation)
Source: Elektromagazin Hrvatska, see www.elmah.hr (25.11.2007)
4
http://www.gradst.hr/library/journals/catalogue_G/GO 21/Casopis za graditeljstvo, instalacije, opremu i
energiju 21. Stoljeca, prosinac, 2004. (25.11.2007.)
326
Upon arrival, hotel guests receive their keycard at the reception desk which
provides free access to unrestricted areas and lasts till the end of their stay. After the
expiry date, the key is invalid and accesses to hotel facilities are prevented. In the same
way, if the key is reported lost, it is declared invalid, and the guest is granted a new
key. That enables guests and hotel staff entrance to various hotel areas without carrying
a bundle of keys, and unauthorised entrance is prevented. Furthermore, it is important
to note that it also allows surveillance of every key used at any time or at any place.
Authorisations and restrictions acquired by keycards correspond to the requirements
and hotel industry business policy. The use of various electronic keys instead of
cylinder-lock keys for entering hotel rooms and other facilities has became a standard.
The question that arises is why keycards are better than door keys. There are
several logical answers to the question raised:
a) the frequent problem of losing and duplicating keys, which led to replacement
of cylinders, has been solved, since keycard code is annulled by a new key
b) electronic key is granted for a required time span
c) keycards to specified hotel facilities is given to hotel staff (multiple entry
keycards - a bundle of keys is not required any more)
d) data registered on the lock allows to do subsequent entrance analysis which
enhances guests safety, reduces the possibility of theft and unauthorised
entrance
e) several keycards can be made for one guest room (if there are several guests
sharing a room, but do not stay together all the time)
f) a single keycard can open hotel garage ramp, sports-facilities and wellness
doors, and it is also possible to put hotel services on room-account charge
thanks to connection with central unit of hotel operation system
g) keycards can be prepared and sent to guests/travel agency/ tour operator in
advance to avoid commotion and waiting at the reception desk upon arrival of
large guest groups
1.1. Intelligent room functions

Electrical energy conservation function- energy can be saved by adjusting air
conditioning, heating and lighting systems to guests presence in a room. Temperature
levels in a room are regulated as shown in table 1: room not allotted (antifrost mode),
room is allotted, but the guest is not in the room (reduced operational mode), guest
present in the room (comfort requirements mode). Up to a particular moment prior to
guests arrival the room operates on very economical temperature. At a specific
moment prior to guests arrival at the hotel, the control system sends a signal to room
system to switch over to economical temperature, which is set when a room is
allotted, but the guest is not present in the room.
When a guest leaves the room, room temperature switches back to
predetermined economical mode, the lighting and water are off, and other energyconsuming functions are being readjusted. Air conditioner deactivates immediately if
the window is open. When a guest leaves the room, the lighting turns off automatically.
327
Moreover, if a guest is not staying at the hotel anymore, and there are no reservations
to the room, there is no energy consumption in the room.
Where room heating is concerned, the importance of high-quality insulation
has to be emphasised, since it reduces costs and increases savings.
Access and room presence- thanks to Read or Read & Write technology, it is
possible to enter and store data regarding time, place and person entering guest rooms,
moreover the same keycard is used to check the presence function in a room. The
system sustains several entrance categories such as: guest, room attendant, waiter,
maintenance personnel, and management.
room entrance with keycard
guest room entrance door surveillance- security alarm
signal of guests presence in the room
Alarm system- The system manages SOS-alarm units in bathrooms, guest
rooms and shared facilities. The system also sustains water, smoke and fire sensors. An
alarm button would send an emergency call and indicate it on a screen at the reception
desk.
Air conditioning- includes intelligent room temperature control and air
purification devices in room and shared facilities. It is also possible to predetermine
points for devices such as heat-pumps, circulation-pumps, etc.
Lighting control- lighting can be set in one of the three following modes, and
thus controlled:
1. lighting is on when a guest is in the room
2. lighting is continually on
3. lighting continually off
When lighting is set in the first mode, once a guest leaves the room only
cooler remains on. Energy saving function is also present, since economical diodes last
long and consume negligibly low amounts of energy.
Servicing- the service sustains whole range of maintenance functions, which
enhance communication among hotel staff such as information whether a room has
been tidied, call for room attendants, Do not disturb 5note.
Guests can adjust temperature, AC unit to their needs, activate do not
disturb signal, call for a room attendant or send SOS call. All the messages and
functions are registered and indicated on a display unit places beside the room entrance
and at the reception desk. One can start the functions listed by selecting a combination
of operational modes which primarily satisfies guests desires, followed by the
requirements of the hotel and hotel staff.
see http://www.optima-inz.com/isobe.htm (28.11.2007)
328
2.
AN EXAMPLE OF ENERGY EFFICIENCY IN HOTEL INDUSTRY
2.2. Hotel complex SOL GARDEN ISTRA UMAG

In order to control energy consumption and reach maximum work efficiency,
the hotel complex has implemented an intelligent room system, a complex system
which integrates energy and water consumption control and efficiency, as well as
heating-cooling regulation and efficiency. All the systems record events in
chronological order, while consumption rate is presented in graphs with alarms set
(sent via text messages). Statistics and reports for qualified maintenance workers and
indexes analysis for management on hotel and management boar level are also
registered in the systems.
The table below presents daily load during August 2006. Sol Garden Istra
hotel A, a newly built hotel with introduced a new system of maximum energy
efficiency, is compared to Sol Garden Istra hotel B, a standard hotel of same category.
The actual energy consumption was estimated by dividing daily load by figure
27 (the number of days in month less four days for which there is no data available) to
acquire the exact amount of kW spent per night. Hotel A spends between 0,23 and 0,29
kW per night, while hotel B spends from 0,61 to 0,76 kW per night, with higher or
lower during the day. Even more important for a successful business is the amount of
electric energy used during the day, which varies from 32,91% up to incredible 42,30%
on 27.08.2006. Based on the data presented in the table 2, hotel A achieved 32,44% of
energy efficiency per month. The analysis of electrical energy expenses shows the
efficiency level of newly built hotel A and positive effect of the sophisticated
technologies (thus justifying investment made) in energy efficiency.
The results of electrical energy efficiency presented by Sol Garden Istra have
been achieved primarily thanks to central electrical energy use control system and peak
load limitation, intelligent room system, thermal insulation of the hotel, careful
selection and elaboration of lighting management, cautious equipment selection, as
well as to hotel staff training and companys environmental awareness.
Table 2. The analysis of daily energy consumption based on comparison between Sol
Garden Istra Umag hotel A (the new technologies implemented) and Sol
Garden Istra Umag hotel B (standard hotel of the same category)
Date
kW/
night
Hotel A
kW/
night
Hotel B
days in
month
01.08.2006.
7,90
20,43
27
02.08.2006.
7,40
19,54
03.08.2006.
7,40
04.08.2006.
0,00*
actual
consumption
Hotel A
actual
consumption
Hotel B
%
savings
per day
0,29
0,76
38,67%
27
0,27
0,72
37,87%
20,01
27
0,27
0,74
36,98%
17,58
27
0,00
0,65
0,00%
329
(continued)
Date
kW/
night
Hotel A
kW/
night
Hotel B
days
in
month
actual
consumption
Hotel A
actual
consumption
Hotel B
%
savings
per day
05.08.2006.
0,00*
17,27
27
0,00
0,64
0,00%
06.08.2006.
7,10
18,55
27
0,26
0,69
38,27%
07.08.2006.
6,70
17,70
27
0,25
0,66
37,85%
08.08.2006.
7,30
18,83
27
0,27
0,70
38,77%
09.08.2006.
6,50
16,88
27
0,24
0,63
38,51%
10.08.2006.
6,70
17,15
27
0,25
0,64
39,07%
11.08.2006.
6,30
17,80
27
0,23
0,66
35,39%
12.08.2006.
6,40
16,94
27
0,24
0,63
37,78%
13.08.2006.
6,20
16,62
27
0,23
0,62
37,30%
14.08.2006.
6,30
17,47
27
0,23
0,65
36,06%
15.08.2006.
6,50
18,67
27
0,24
0,69
34,82%
16.08.2006.
6,70
20,36
27
0,25
0,75
32,91%
17.08.2006.
7,20
20,23
27
0,27
0,75
35,59%
18.08.2006.
7,80
20,18
27
0,29
0,75
38,65%
19.08.2006.
7,10
18,44
27
0,26
0,68
38,50%
20.08.2006.
7,10
19,04
27
0,26
0,71
37,29%
21.08.2006.
6,50
17,88
27
0,24
0,66
36,35%
22.08.2006.
6,50
17,48
27
0,24
0,65
37,19%
23.08.2006.
6,50
17,75
27
0,24
0,66
36,62%
24.08.2006.
6,50
17,95
27
0,24
0,66
36,21%
25.08.2006.
0,00*
16,97
27
0,00
0,63
0,00%
26.08.2006.
0,00*
18,66
27
0,00
0,69
0,00%
27.08.2006.
7,00
16,55
27
0,26
0,61
42,30%
28.08.2006.
6,30
18,02
27
0,23
0,67
34,96%
29.08.2006.
6,40
17,86
27
0,24
0,66
35,83%
30.08.2006.
6,50
18,18
27
0,24
0,67
35,75%
27
0,24
0,67
36,15%
6,79
20,92
32,44%
31.08.2006.
6,50
17,98
Total:
183,3
564,97
*Data unavailable
Source: according to the data in Projekt energetske ucinkovitosti- Hotel Sol Garden Istra Umag, October
2007
330
2.3. Holiday Inn

Thanks to an intelligent room system-a technology called guest room energy
management (GREM) Holiday Inn hotel in Madison (SAD) saved 24 000$ on
electricity expenses. The system was installed in 110 guest rooms. The study compared
period between January and September 2006.
Table 3. Measurement and verification study findings (the survey)

PROJECTED ANNUAL
ELECTRICITY
SAVINGS
CALCULATED SAVINGS
FOR A NINE MONTH
PERIOD
% OF ANNUAL
SAVINGS ATTAINED
378.673 kWh
381.908 kWh
100,01
Source: http://focusonenergy.com/data/common/dmsFiles/B_GC_MKCS_HolidayInnGREMCSv.pdf (25.11.2007)
The table compares projected electricity savings per year and calculated
savings for a nine-month period. Holiday Inn has reduced energy consumption by
381.908kWh in a nine-month period, which is more than it was projected for a year.6
2.4. Hilton
Several years ago, Hilton implemented an energy efficient lighting program
for guestrooms. The average incandescent light bulbs use 750W, whilst compact
fluorescent light bulbs (energy saving) use 220W which reduces expenses by 70%,
without compromising guest comfort. Hilton also actively evaluates and implements
green technologies including solar technology. These technologies allow renewable
energy resource usage.7
2.5. Marriott
Marriott hotel chain conducts the energy strategy presented in picture 1. The
strategy is based on establishment of a stable price of energy, critical legal actions,
environmental planning (green building) and reporting system.
http://focusonenergy.com/data/common/dmsFiles/B_GC_MKCS_HolidayInnGREMCSv.pdf (25.11.2007)
http://hiltonworldwide1.hilton.com/en_US/ww/business/environmental.do;jsessionid=12F778627100C6C99
CFA28F663CDEC8C.etc23 (25.11.2007.)
7
331
Picture 1. Marriotts Energy Strategy
Supply Side
Energy
Metrics and
Reporting
Demand Side
Energy Management
Marriott's Energy Strategy
Environmental
Planning
Integrated
Resource
Source:http://www.epa.gov/dimateleaders/document/events/mar2007/maher.pdf (29.11.2007)
2.6. The Regent Hotel

According to the research conducted by The National Environment Agency on
efficiency in energy savings, on the example of the Regent Hotel in Singapore, it has
been determined that 26% of energy (expressed in kWh) has been saved after the
intelligent room system had been implemented. The period estimated for payback on
investments is one year and a half.8
3.
HOTEL ENERGY CONSERVATION & EFFICIENCY TIPS9

Managing Your Hotel Energy Conservation Programme
Chose one person that will be in charge of hotel energy strategy
Set goals and share discuss results
Monitor, record and post rates of hotel energy and water use
Create a program that will stimulate hotel staff, and improve
environmental awareness
Reduce Hotel Cooling Costs
Check if all windows and doors have been appropriately insulated
Educate hotel staff to turn off lights and turn down heating when rooms are
unoccupied, and close the drapes during summer months
8
9
http.//app.nea.gov.sg/cms/htdocs/article.asp?pid=2928 ( 27.11.2007)
http://www.permafrostonline.com/resources/hotel-energy-saving-tips.php (27.11.2007)
332
Avoid placing televisions, computers, hair dryers and lamps near

thermostats. The heat from these and other appliances may affect
thermostat readings and increase energy consumption for cooling.
Lighting
Replace incandescent light bulbs with compact fluorescent light bulbs
(LED-Light Emitting Diode)
Use daylight as much as possible, particularly in hotel lobby, reception
area, bar, restaurant
Install motion sensors in offices, laundry and housekeeping
Reduce Hotel Water and Laundry Costs
Place cards in guest rooms with specific suggestions for linen reuse
program for sheets and towels
Wash only full loads of laundry
Use cold water laundry washing where possible
Install low-flow showerheads
Implement system that uses recycled hotel water for watering landscape
Reduce Other Hotel Energy Costs
Place cards with energy efficiency suggestions in guest rooms
Use low-energy sleep functions on computers, printers and copiers
4.
SPECIALIST KNOWLEDGE AND PERSONNEL TRAINING
Energy efficiency in hotel industry is not solely the result of investment into
sophisticated technology, but of continuous monitoring and active management of
energy sources consumption. Organisations often store knowledge not only in
documents and data bases, but in management routines, processes, practice and
norms.10 This requires specialist knowledge and maintenance workers training, thus
companys environmentally-friendly practice demands advances inhuman resource
management. The ISO 14000 standard and Environmental Management System
(EMS)11 should be introduced.
Hotel Generic Hong Kong has adopted the ISO 14000 series of environmental
management standards on a voluntary basis. The standards enable the hotel to establish
an effective environmental management system, to achieve continual improvement of
environmental performance and ensure regulatory and legislative compliance. The
hotel maintains its EMS under independent certification under the ISO 14001 Standard.
The EMS is seen as a management system that provides a mechanism for the hotel to
operate in an environmentally responsible manner, anticipate and meet growing
environmental performance expectations, and ensure ongoing compliance with
10
Davanport, T. H., Prusak, L., Working Knowledge, How Organization manage what that they know,
Harvard Business School Press, Boston, 1998.
11
CD Keeping Hong Kong's Hotel Industry Competitive into the 21st Century, Environmental Management
for Hotels, Department of Building Services Engineering, The Hong Kong Polytechnic University
333
regulatory and legislative requirements. The EMS allows the hotel to address, control
and improve the short-term and long-term impacts of its activities, products and
services on the environment.
Hotel maintenance service lacks a position of facility manager12, someone
who possesses knowledge of mechanical, electrical and other disciplines of
engineering, as well as of economics in maintenance process. The manager is not
expected to be an expert in each of the sectors, but has to be acquainted with functional
and organisational sides of the system. This represents a serious problem to hotel
maintenance. The question that arises is who, if anybody is in charge of reduction and
rationalisation of hotel energy expenses. Who is entrusted with the consideration of
introducing renewable energy sources in hotel industry? There are professions in hotel
organisation such as Energy Advisor, Director of Environmental Sustainability, various
energy advisors or Power Board managers. Hotel management should pay more
attention to energy expenses in accordance with green accounting13, and be able to
recognise environmental spending.
There is an urgent need of hotels for so called Energy card (building energy
rating) which shows consumption of all energy sources. Furthermore, education and
co-operation between experts in energy and tourism has to be arranged. Continuous
personnel training raises awareness of possible way and amount of savings, since they
are engaged in the actual consumption process, while board of directors and
management should implement modern technologies to help to regulate consumption,
thus increasing companys savings and profit.
CONCLUSION
The implementation of new technologies and keeping up with trends in hotel
industry worldwide corresponds to the quality of services provided in a modern hotel.
Croatia has to satisfy individuals and tourists needs, while preserving natural
environment in the same time. From economic standpoint, the aim of tourism is to
stimulate competitiveness and efficiency of tourism industry by developing its tourist
attractions and facilities in harmony with the surrounding landscape and environmental
principles. Thus, when building or reconstructing a hotel building, energy policies
should be done in co-operation with experts in energy, zoning and tourism.
At present, hotels are perceived as the largest consumers of energy in building
construction, and as establishments with complex installations, which have to provide
guests with comfort and ease. Sophisticated technical solutions in monitoring and
management system control all installations in a hotel and in the same time provide
high level of comfort in all hotel facilities, with maximum energy efficiency and quick
payback of investments. The monitoring and management system has to be connected
with hotel system to enable operational monitoring and efficient hotel management.
12
Laslavic, Z., Hotelijeri na visak energije bacaju 100.000 eura na godinu, casopis Lider, studeni 2007.,
73-73
13
see above Persic, M., Zeleno racunovodstvo-sto je i kome koristi?, Racunovodstvo i financije,
br.12/2007, 47-53
334
The pattern Intelligent guest room should attract guests and create pleasant
atmosphere in accordance with guests personal desires.
Croatian research projects in the field of energy efficiency have been
attributed as positive examples and role models by The World Bank They are followed
by projects in hotel industry which would enable quick payback on investments since
they are amortised through realised energy savings. Another important condition for
investment profitability is a longer, preferably all-year, operation. The most important
is that efficient energy consumption not only decreases expenses, moreover, it helps
and works in an environmentally responsible manner.
According to the World tourism organisation predictions on global tourism
perspective up to year 2020, the world will be characterised by increasing penetration
of technology into all spheres of life.14
Connecting all guest room functions by computer significantly increased the
quality of services, and trade as well. Thanks to the integration of various functions and
central control and management system, intelligent rooms provide hotel staff with a
great deal of information necessary for high-quality service, rational energy use and
successful decision-making process. Nevertheless, as information science advances, the
term intelligent guest room will be soon replaced by the term smart hotel. A smart
hotel is based on high-quality infrastructure and on possibility of connecting
subsystems into one system, while all the data supplied has to be accurate, well-timed,
detailed and never become an end to it self. Moreover, every information has to be
tracked in order to help decide on further actions.
The task of every hotel is to improve technical and economic segment of
energy savings in hotel industry, and to encourage substitution of organic fuels with
renewable energy sources, which would raise awareness of energy consumption and
environmental protection.
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L. Vasileska, K. Angelevska-Nadjeska: ENVIRONMENTAL PROTECTION AS A FUNDAMENTAL
T.E.I. Thessaloniki
Greece
UDC 338.48:504.03
Rewiev
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
ENVIROMENTAL PROTECTION AS A
FUNDAMENTAL PART IN TOURISM
DEVELOPMENT AND INSURANCE INDUSTRY
COMMITMENT TO SUPORTING IT
Larisa Vasileska
Katerina Angelevska-Nadjeska
University "St. Kliment Ohridski" Bitola, Macedonia1
Abstract: In recent decades, tourism has become a full-fledged industry contributing significantly to the
economic and social development of a large number of countries. In order to guarantee sustainable
development of the environment for the future generations, insurers are ready to face with the new challenge
as the investment in the sustainable development is very great.
Keywords: tourism industry, insurance industry, sustainable development.
INTRODUCTION
Tourism, as a phenomenon of modern human development, is rapidly moving
forward toward its own perfection. The percentage participation in the total structure of
the migrants who are traveling in order to meet their tourist needs also increases.
The tourist influences are numerous and of diverse qualitative consequences
for the sociability of the humankind, starting with the discovery of new geographical
environments, the connection and communication among people.
1
Larisa Vasileska, Assistant, Katerina Angelevska-Nadjeska, Assistant, Faculty of Tourism and
Hospitality, University "St. Kliment Ohridski" Bitola, Macedonia
337
The following definition of tourism was officially adopted by the United

Nations Statistical Commission in 1993: Tourism comprises the activities of persons
traveling to and staying in places outside their usual environment for not more than one
consecutive year for leisure, business and other purposes2.
According to WTTC estimates, travel and tourism achieved the following
economic impact directly and indirectly in 2001:
USD3.3 trillion contribution to global GDP, almost 11% of total GDP;
207 million jobs worldwide, over 8% of all jobs;
USD630 billion in capital investment, almost 9% of all capital investment.
The substantial growth of the international tourism activity is one of the most
remarkable economic and social phenomena of the past century. According to the World
Tourism Organisation, the number of international tourist arrivals increased from 25
million in 1950 to 760 million in 2004, corresponding to an average annual growth rate of
6.6 percent. The revenues generated by those tourists, i.e. their international tourism
receipts, grew by 11 percent per annum over the same period. This rate of growth far
outstrips that of the world economy as a whole and makes international tourism one of
the largest categories of international trade.3
1.
ENVIRONMENTAL DIMENSIONS
The direct environmental impact of tour operators is relatively limited, but there
are ways in which they can have a positive influence. Tour operators communicate with
customers mainly through paper-based media, therefore brochures need to be used
efficiently and to be sourced from renewable forests and recycled whenever possible.
Offices need to consume as little energy as possible and customers need to be
encouraged to make choices and to behave in ways that are socially and environmentally
acceptable. In considering the indirect effects of tour operators encouraging people to
travel, a distinction needs to be made between developed and developing nations when
considering environmental action.4
1.1. Energy emissions
Tour operators encourage people to travel from their local airport, which usually
means a taxi or a car journey. (A taxi journey is twice as long as that by the owner-driver,
and doubles energy consumption/emissions).
Airports have been extended as a result of consumer demand larger aircraft are
now used. Tour operators seek out the lowest seat mile costs this requires in turn, highdensity seating and fuel-efficient modern aircraft operating at high load factors. The
resulting emissions of noise, CO2 and NOx per passenger are lower than for other forms
of aviation, but nonetheless would not have occurred had customers stayed at home.
2
World Travel & Tourism Council, The Beacon Press, 2000

World Travel & Tourism Council, International Hotel & Restaurant Association,International Federation of
Tour Operators, International Council of Cruise Lines and United Nations Environment Programme, United
Kingdom, 2002
4
Journal of Economic Cooperation, 2006
3
338
Customers are usually transported from the destination airport to the hotel by
modern diesel-engined or gas-powered coaches which can carry up to 58 people and have
low seat/mile CO2 emissions. These vehicles reduce the incidence of car traffic by more
than 25 times. However, in many developing countries these are not available; LPG (liquid
petroleum gas) or CNG (compressed nitrogen gas) distribution is extremely limited.
Indeed, the moral, social and political arguments for conducting business in an
environmentally-sound manner are becoming more and more widely accepted. This is
particularly noteworthy given the potential impacts the industry can have on air quality,
energy and water consumption, land use and waste generation.
Although less polluting than some other industries such as certain
manufacturing processes, hospitality businesses, like most others, contribute to emissions
into the atmosphere (through the use of fossil fuels and ozone-depleting substances and
the transportation of supplies).The hospitality industry can also be considered a
significant user of energy in the form of heat and power.
As this directly involves the burning of fossil fuels and the mission of
greenhouse gases, the hospitality industry is also an indirect contributor to global
warming. As a result, industry bodies regularly draw attention to the importance of
eliminating ozone-depleting substances in refrigeration, air-conditioning and fireextinguishing appliances to avoid further contributing to this phenomenon.
Water is perhaps the hospitality industrys most important resource. Tourists
typically consume considerably more water than local residents. A hotel can consume
between 60m3 and 220m3 per guest room per year depending on the facilities provided
and whether sound water conservation practices are in place, such as water flow
restrictors and on-site waste water treatment facilities.
Most hotels generate large quantities of solid waste including bottles and food
packaging, kitchen and garden waste, old furniture and equipment and potentially
hazardous wastes such as asbestos and solvents. Waste disposal costs money and for this
reason, hotels are increasingly careful to reduce waste volumes because it makes sound
business sense. They do so by minimising the materials used in the first place, recycling
and reusing waste materials wherever possible, and by safely disposing of residual
wastes. The Orchid Hotel in Mumbai, India, provides a particularly good example of
innovative recycling and waste disposal. Virtually all in-room products are reusable or
recyclable, paper usage is kept to a minimum and kitchen waste is composted in on-site
vermiculture pits.
2.
MAKE A DIFFERENCE WHEN YOU TRAVEL AND GET MORE

OUT OF YOUR HOLIDAY
Youve just booked your dream holidaya round the world adventure or a
relaxing fortnight on a sun-kissed beach. But how will your travels affect the people and
the places you visit? Will your plane generate huge amounts of greenhouse gases getting
you there? Will your off-the-beaten-track excursions harm indigenous cultures? It doesnt
have to be like thisthere are ways to minimize the negative effects of your dream
339
holiday and even have a positive impact on the country you visit. Here are just a few
pointers:
Before you go: Think about where your money goes when booking your
holiday. For example staying in locally owned accommodation will benefit local
familiesask your tour operator. When youve finished with your holiday brochures,
pass them on to a friend or recycle them.
On the flight: The amount of carbon burnt fuelling your flight will do more
damage to the environment than any other aspect of your travels. Organisations like
Climate Care and Carbon Neutral can help you offset your carbon emissions by investing
in projects that prevent or remove an equivalent amount from the atmosphere. Read up on
the countries you plan to visitmake sure youve got a good guidebook. The welcome
will be warmer if you take an interest and speak even a few words of the local language.
Shop responsibly: Dont buy products made from endangered species,
hardwoods, shells, or ancient artifacts. If in doubtplease dont buy. Respect the local
culture Respect local cultures, traditions and holy places. For example, ask permission
before you photograph local people and dress appropriately at all times. Realize that the
people in the country you are visiting often have different time concepts and thought
patterns from your own. Remember that youre on holidaydont expect people to be the
same as back at home. Ask questions rather than assume you have all the answers
beforehand. 5
Use natural resources sparingly: In many destinations natural resources such as
water, wood and fuel are preciouslocal people may not have enough for their own
needs. Help conserve resources in your hotel, lodge or camp by turning off (or down)
heating, air conditioning, lights and the TV when not required. Let staff know if you are
happy to re-use towels and bed linen rather than having them replaced daily.
Help preserve the environment and wildlife: Dont support activities which
exploit wild animals. Swimming with dolphins, watching dancing bear performances and
having your photo taken with lion and tiger cubs, monkeys or snakes can condone and
encourage animal cruelty.
3. SUSTANINABLE DEVELOPMENT: WHAT IS THE FUTURE

OF INSURANCE?
In order to guarantee sustainable development of the environment for the future
generations, insurers are ready to face with the new challenge as the investment in the
sustainable development is very great. Supporting Alla Gorey, 80 general managers of
Dutch companies have united concerning the issue of environment. Climatic warming
brings to new risks which lead to unavoidable need to further analyses of natural
catastrophes, and the new technology in the sector of restorable/renewable and
biodegradating energy create new insurance situations.
Sustainable development includes pensions, health insurance, insurance of
disabled where financing of pensions is in the focus of sustainable development.
5
Travel Insurance Agencies Limited, Norwich, Norfolk, United Kingdom 2006
340
Insurers are especially interested in preventive investment. Axa, Generali,

Groupama have already moved towards prevention of road accidents, especially when
young drivers are in question or pedestrian protection. Companies become more and
more aware of responsibility to invest in social security of their employees. Various
insurance companies have the sustainable development on their internal agendas like
reduction of energy consumption, recycling of used material and efficient management
with the firm and investments.
Fortis came top of the league for its syndicated financing of clean energy
projects in 2006, with a total of USD 1.4 billion financing 12 projects. Fortis also moved
up the league of lead arrangers coming in at number 13 for 2006.
Fortis is an international financial services provider engaged in banking and
insurance. We offer our personal, business and institutional customers a comprehensive
package of products and services through our own channels, in collaboration with
intermediaries and through other distribution partners. With a market capitalisation of
EUR 40.3 billion (31/05/2007), Fortis ranks among the twenty largest financial
institutions in Europe. Our sound solvency position, our presence in 50 countries and our
dedicated, professional workforce of 60,000 enable us to combine global strength with
local flexibility and provide our clients with optimum support.
Frans van Lanschot, CEO of Fortis Energy, Commodities and Transportation
department said: Fortiss meteoric rise up the clean energy league tables demonstrates
the companys dedication to sustainability. Clean energy is a Fortis speciality, and we
remain fully committed to expanding our services in this field. 6
As part of a far-reaching corporate social responsibility programme, Fortis is
fully committed to caring for the environment. Since January 2007, Fortis has been
carbon-neutral across the globe. This involves saving energy, buying green electricity and
offsetting any residual CO emissions. Fortis is furthermore fully committed to carbon
2
banking operations a field where we are already a leader. Fortis also offers a wide range
of sustainable products - from clean car insurance and cheaper loans for less-polluting
vehicles, to sustainable investment funds. Moreover, Fortis Investments has developed a
website devoted to sustainable development allowing you, among other things, to
calculate your own ecological footprint: http://www.footprint.fortis.com/calculator
Another insurance company, ING Group announces to target for carbon
neutrality by the end of 2007, through the reduction and/or compensation of all its global
carbon emissions. ING will reach carbon neutrality by extending its current energy
programme by the following measures:
Continuing efforts to increase energy efficiency
Expanding the purchase of green energy
Compensation of all remaining CO2 emissions through reforestation
ING is a global financial institution of Dutch origin offering banking, insurance
and asset management to over 60 million private, corporate and institutional clients in
more than 50 countries. With a diverse workforce of about 115,000 people, ING
comprises a broad spectrum of prominent companies that increasingly serve their clients
6
www.fortis.com
341
under the ING brand. ING already compensates all of its global business travel by
supporting the planting and rehabilitation of 300 hectares of degraded tropical rainforest
in Malaysia. And, as from January 2007, all electricity purchased for the Dutch ING
offices come from renewable sources. The current and new measures are expected to
result in a net CO2 emission of zero, which will make ING carbon neutral by the end of
2007. Michel Tilmant, chairman of ING Group, stated: ING is committed to conducting
its business responsibly. Environmental protection is a fundamental part of this
commitment. Climate change, or global warming, is widely considered to be one of the
greatest challenges facing our planet. ING has a role to play by developing strategies to
manage the increasing risks and opportunities involved. ING will issue a climate change
statement in the coming months to express its commitment communicated today in more
detail. In the coming years, ING will research the possibilities to further increase existing
renewable energy financing and to initiate new carbon friendly products.7
The hospitality and insurance sector, as demonstrated in this paper, has done
much to improve its performance in terms of sustainable development and eco aspect.
Over the next ten years, however, the industry will face new challenges as it
gears up for further growth in a period where social and environmental sensitivity are
becoming progressively more acute. This, in conjunction with the fact that global capital
flows will exert pressure on managers to provide greater returns on investment, makes
for an even more challenging context in which the hospitality sector must focus its efforts
on making progress in the following specific areas:
protect the natural environment and cultural heritage,
conserve plants and animals, protected areas and landscapes,
respect the integrity of local cultures and their social institutions.
REFERENCES
World Tourism Organisation, Tourism Highlights, 2004 Edition.
Journal of Economic Cooperation 27, 2006
Angelevska-Najdeska, K., Magisterski trud: Marketing menadjment na ugostitelskiot proizvod, Fakultet za
turizam i Ugostitelstvo, Ohrid, 2002.
, . ,
,, 2002.
World Travel & Tourism Council, International Hotel & Restaurant Association, International Federation of
Tour Operators, International Council of Cruise Lines and United Nations Environment
Programme, United Kingdom, 2002
World Business Council for Sustainable Development (WBCSD), 2007
www.ing.com
342
A. Muntean, F. Stremtan: GREEN-MARKETING: A NEW CHALLENGE FOR ROMANIAN ...
T.E.I. Thessaloniki
Greece
UDC 338.486(498)
Rewiev
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
GREEN MARKETING: A NEW CHALLENGE

FOR ROMANIAN ORGANIZATIONS
Andreea Muntean
Fillimon Stremtan
1st December 1918 University of Alba Iulia, Romania 1
Abstract: Eco-innovation and green marketing are the new weapons for the progressive companies in
tourism. Environmental improvements can enhance marketability, improve performance, and represent a
potent source of innovation.
From an organizational standpoint, green marketing means to integrate environmental considerations into all
aspects of new touristic product development and marketing.
In actual conditions, Romanian touristic companies should prepare to include ecological impact as a part of
its marketing strategy. Given current environmental imperatives, they represent the next important stage in
corporate environmental management and hence, corporate reputation management. Being "green" is not just
a fad, and Romanian companies will have to join the likes of other international firms in preparing marketing
strategies to support their sustainability policies. Companies that can prove to consumers and business
partners that they are serious about their environmental impact will reinforce their branding.
This paper tries to underline how important is for a touristic company to develop sustainable eco - marketing
strategy and it proposes some solutions about what Romanian companies should do.
Keywords: green marketing, eco-innovation, environmental improvements, social responsibility.
Andreea Muntean, Lecturer, Filimon Stremtan, Ph.D. Full Professor Faculty of Sciences, 1st December
1918 University of Alba Iulia, Romania
343
INTRODUCTION
Dumitru C., in her book Ecologic Management and Marketing. A strategic
perspective defines environmental marketing as the process which leads to
sustainable changes from an ecological perspective, through the creation of new
products and services and which, through a coherently administration of distribution,
communication and public relations, allows the satisfaction of consumer needs and the
claiming of the objectives which satisfies firms and society priorities.
1.
GREEN MARKETING: A NEW CHALLENGE
According with the same author, there are three factors which are affecting the
marketing focus on environmental conditions: the emergency of a segment of green
consumers, the pressure exerted by the public authorities and by the non governmental green organizations and the increasing of organizations social
responsibility.
Innovator organizations would have to find more and more collaborations
forms with green groups, which can be perceived by the consumers, such as:
obtaining the agreement for using information about the good relationships with such
groups in the communication message, the patronage of such groups as a form of social
responsibility, product certification by a green organization, collaboration with green
groups for solving the environmental problems related with firms activity.
Marketing theory approaches the concept of green marketing by focusing on
the relationship with consumers, with public authorities and with society. In the
modern society, consumers want from the touristic services, beyond the satisfaction of
their primary needs, a high level of life quality. This new approach brings a third
partner in the relation Firm Customer and this partner is the Society.
A lot of social factors had determined the increase of consumers
preoccupations for the environment, such as: in the latest times, environment problems
have affected the population majority; the consumer movement against globalization
has extended in the same time with the sustainable development theory; young people
learn about the environment in the first years of study; a new generation of teenagers
has joined an educational system based on nature returning.
These social factors has contributed to the formation of a new tourist type - the
ecologic tourist. The behavior of this consumer is oriented through the recycling and
saving and also demonstrates a good perception and acknowledgment of the
environment damages and a real preoccupation for its natural resources.
In actual conditions, Romanian touristic companies should prepare to include
ecological impact as a part of their marketing strategy. Given current environmental
imperatives, they represent the next important stage in corporate environmental
management and hence, corporate reputation management. Being "green" is not just a
fad, and Romanian touristic companies will have to join the likes of Ford, General
344
Electric or Toyota in preparing marketing strategies to support their sustainability

policies. Companies that can prove to consumers and business partners that they are
serious about their environmental impact will reinforce their branding.
Results of a study conducted by M.I. Roca demonstrate that there is a lack of
interest regarding the ecological features or just a show of interest in behalf of the
Romanian touristic companies [5]. From a total sample of 177 Romanian touristic
firms, less than 25% are informed about the concept of green marketing. On a
differential semantic scale, the degree in which companies applied principles of green
marketing had obtained a score of 1.98 [5].
Starting from 1992 initiated programme, at the European Union level, which
sustains the implementation of 17 tourism and environment pilot projects, in the
entire Europe, within the activity programme derived from the reform strategy that our
country has, a notable place is held by the problems concerning the development and
promotion of rural tourism.
Romanian Tourism Minister paid a special attention to the improvement of the
legislative frame adequate for stimulation, development and harmonization of the rural
tourism with the laws from the European Union Countries. Practicing a green
tourism needs the implication of the decisional factors through economic development
policy, through juridical, legislative, financial-banking, local administrations
regulations.
In our country there are numerous villages that have convenient terms when it
comes to practicing ecotourism, but their poor capitalization determined the resort
minister to consider the agro-tourism as a real opportunity for local economies and,
thus, for the rural development as a whole.
The option for new tourism ways results also, from the analysis of the
negative aspects of the real situation from hotels / restaurants industry, that is:
the placing of hotel units or restaurants, especially those from large urban
agglomerations, in areas with a lot of dust, noise, smoke and gases from the
exhaust of the cars that drive through these areas;
the design of these units that must be harmonized with the new environmental
demands, re-thinking the ventilation and heating systems, the airtight of the
windows and entering ways of the unwanted temperatures (draught, cold or
heat);
the inappropriate usage of water supplies provided by the municipal or city

networks, in the chronic lack of the drinking water in many places, the
exorbitant increase of the supplying price but also the huge waste that happens
when taps are out of order etc.;
great power consumptions when are used old equipments and technologies
burners and boilers with big consumption and low output, that pollute the
environment with carbon dioxide issue and noxious sulphur derivate;
345
the usage of some un-ecological bleachers and detergents that affects the air
and water by their draining into the sewer or strait into the rivers or sea,
without treating the used waters and without reducing the negative impact on
the environment;
non sorting the domestic waste before it is thrown to containers, this leading
to the evacuation of waste with a poisoning environment increasing risk;
the lack of a real support industry for recycling the huge quantity of waste that
can be re-used, the lack of facilitation given to those who initiated and
developed active sorting, collecting, and even processing / recycling wastes
policies;
the lack of some coherent environment protection programs, including the

tourist environment, been known the fact that the tourism swallows all the
undone and negative situations, reflected in the consumers appetite for
tourism.
The proposed solutions are, mostly, case studies and notable realizations from
countries with a developed tourism, all based on long experiences and successful
accomplishments:
intermediary filters made from stainless steel that retain sands / silt that came
on the distribution network;
filters that treat and ionize the water;
magneto-ceramic filters that reduce the hardness of the water and break the
limestone and magnesium agglomeration which form deposits on pipes,
reducing the pressure in an unjustified way and eating the pipes, without
destroying the calcium and magnesium from the water;
filters with active charcoal or with multiple crystal layers, which retain the
bad taste and smell of chlorinate or muddy (dirty) water, but also the eventual
fine particles unstopped by the other intermediary filters.
All those types of filters, made by well known firms, can also be bought from
the Romanian market. Using this kind of filters, in combination with biodegradable
detergents used in dishwashers or laundries increases the life rate of the waters interior
circuit installations, of the equipments and installations; the waters will be cleaner and
less noxious.
One of the extremely important chapters when it comes to exceeding and
solving those problems is represented by communication. Communication can be
presented on two fundamental aspects:
the units staff, the one that can and must apply all modern ecological
management methods of the hotels / restaurants environment, saving
consumed resources, reducing the waste etc. and, finally, to bring the clients
satisfaction;
the client, the addressee, and the final receiver.
346
In order to obtain those issues, some procedures are needed in both ways:
on one hand the staff must be periodical and solidly trained about the
ecologic tasks and cooperation with other partners and clients;
on the other hand, communicating towards the clients all environmental

impact measures, that should convince them to appreciate those efforts, to
adhere to those measures and to become an active part in the introduction and
development of ecological programs promoted by hotels and restaurants.
As an active part of the communicational process, the client must understand:
why the green road was chosen;
how water, energy, detergents can be saved;
how, certain resources, can be saved without reducing the comfort;
how can they contribute to funds collecting concerning certain simulative

actions (the funds can be obtained from selling different recyclable waste).
The communication with clients and staffs training are considered the
hidden arms of every manager in the success of the ecological management of the
hotels, restaurants and professional formation.
The evolution of the economy and of the Romanian society can be conceived
in trend with the minimal environments protection requests, demand that is also
available for tourism activity. The legislation in force compels the tourism, hotels and
restaurants operators to be patented through environment agreement and to strictly
respect the environment protection laws, either by taking punitive measures (penalties,
redrawing the right / license to function for polluting, the lack of order) or by applying
some prohibitive prices for energy, fuels and water, in the context of a free market.
These measures come to alert the operators in both ways:
on one hand by applying strictly the legal norms for conserving the
environment, otherwise they will be punished by law;
on the other hand, by applying some active policies for environment

protection, to save important resources, to be attractive on local, national and
international tourism market.
CONCLUSION
In conclusion, this paper tried to underline how important is for a company to
develop sustainable eco - marketing strategy and it proposes some solutions about what
touristic firms should do, like follows:
Romanian touristic companies should ensure that eco-innovative efforts are

communicated in all corporate environmental and sustainability reports, as
well as responses to questionnaires from customers and socially responsible
investors, and in-house organs;
Romanian touristic organizations should make a public commitment to

347
develop more eco-innovative products. In this way, the ideal goal is zero
emissions, zero waste, zero environmental impact. A zero environmental
impact requires a commitment to continuous innovation. This will ensure that
companies will stay ahead of the environmental curve and keep internal stake
holders allied for maximum support;
Romanian touristic companies should ensure that commitments emanate from

the highest level of the company;
Romanian touristic companies should educate their consumers about what

they personally can do help. This includes promoting responsible consumption
of products by consumers. Consumers are eager recipients of new information
about how their product purchase and behavior can help the environment.
REFERENCES
Dumitru C.: Management si marketing ecologic o noua abordare strategica. Editura Tehnopress. Iasi, 2003.
Cramer, J.: Environmental Management: From Fit To Stretch. Business Strategy and the Environment,
Vol. 7, 1998, no. 4, p. 162-172.
Ottman, J.: Green Marketing: Opportunity for Innovation. MacGraw Hill. New York, 1998.
Peattie, K.: Environmental Marketing Management. Meeting the Green Challenge, London, 1995.
Roca, M.I.: Cercetarea impactului marketingului ecologic in intreprinderile din Romania. Revista Romana
de Marketing, nr. 1, 2006.
Balaure V (coord.).: Marketing. Editura Uranus,.Bucuresti, 2003.
348
Z. Hrs Borkovic, B. Kulisic, M. Zidar: ENERGY AUDIT METHOD FOR ENERGY CONSERVATION ...
T.E.I. Thessaloniki
Greece
UDC 640.4:620.91](497.5)
Rewiev
Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Management
ENERGY AUDIT METHOD FOR ENERGY

CONSERVATION IN HOTELS
Zeljka Hrs Borkovic
Biljana Kulisic
Margareta Zidar
Energy Institute, Croatia1
Abstract: In the very near future, energy efficient hotels will cease to be the exception but will be the rule.
Energy conservation and the intelligent utilization of renewable energy sources are prerequisite for
sustainable development of tourism.
Due to global warming and increased standards in hotel industry, there is an increasing demand for energy
for cooling in general, although this is especially reflected in hotel industry peaking in summer period.
Furthermore, energy demand for hot water and food and beverages preparation in a hotel increases
proportionally with the number of tourists. All these energy issues are overburdening the ever competing
hotel industry.
Hotels, in order to optimize their energy costs and implementation of renewable energy sources utilization,
have to perform energy audit - an analysis of thermal performance and energy systems of building with the
purpose to determent its energy efficiency or non-efficiency.
This paper combines energy audit methodology with properties of energy consumption in hotel industry with
an aim to provide guidelines for modern hotel energy management.
Keywords: hotel, energy management, energy audit, sustainable development, renewable energy sources.
1
Zeljka Hrs Borkovic, BSc., Biljana Kulisic, MSc., Margareta Zidar, MSc., Department for Renewable
Energy Sources and Energy Efficiency, Energy Institute Hrvoje Pozar, Zagreb, Croatia
349
INTRODUCTION
In 2006, Croatia fell below 50 percent in energy self sufficiency, which is
estimated to continue its downward trend along with depletion of its fossil fuel supplies
and growing trend in energy consumption to end to 80 percent of energy imports by
20302. The national energy issue gets another dimension when energy production and,
consequently, consumption, are linked with GHG emissions and international
agreements (Kyoto Protocol, Barcelona Convention etc.) obliging reductions of
anthropogenic impact on the environment. Buildings in Croatia account for highest
final energy consumption (39.5%), higher than transport and industry and contribute to
high level of greenhouse gas emissions. In the same time, the contribution of service
sector has been estimated to some 10 percent3.
From a hotel managements perspective, energy represents a significant but
one of many cost items in their balance sheets that could influence on hotels bottomline profits4. Energy bills of a hotel could be divided into electricity, heat and
transportation fuel bills. Hotels are dominantly using electricity as energy form
(heating/cooling, lighting, refrigerators and coolers, lighting, escalators etc.) followed
by significantly smaller share of energy forms needed for cooking and water heating
such as liquid fuels and natural gas, coal and other energy forms5.
Tourists behaviour in energy consumption is different that their non-tourist
at-home pattern for two main reasons. Firstly, as energy consumers, tourists are paying
a flat rate for their stay in an accommodation facility without common rationale for
energy saving (higher bills). Secondly, tourism offers an escape from common life
and, while on vacations; tourists tend to indulge themselves6.
Research in the Mediterranean climate type destinations (Greece7, Tunisia8
and Turkey9) provided a span between 273 kWh/m2 (overall Greece) and 389 kWh/m2
(Antalya, Turkey) for average annual electricity consumption per square meters in
Croatia, 2007.
3
Croatia, 2007.
4
UNEP, Switched on: renewable energy opportunities in the tourism industry, UNEP Division of
Technology, Industry and Economics, Production and Consumption Branch, United Nations Publication,
2000. available at: www.uneptie.org/tourism
5
6
Warnken, J., Bradley, M., Guilding, Ch., Exploring methods and practicalities of conducting sector-wide
energy consumption accounting in the tourist accommodation industry, Ecological Economics, Vol. 48,
2004, 125-141.
7
Santamouris, M., Balaras, C. A., Dascalaki, E., Arigiriou, A., Galia. A., Energy conservation and
retrofitting potential in Hellenic hotels, Energy and Buildings, Vol. 24, 1996, 65-75.
8
Khemiri, A., Hassairi, M., Development of energy efficiency improvement in the Tunisian hotel sector: a
case study. Renewable Energy, Vol.30, 2005, 903-911
9
nt, S.; Soner, S., Energy efficiency assessment for the Antalya Region hotels in Turkey, Energy and
Buildings, Vol.38, 2006, 964-971
350
hotels. UNEP10 has delivered a more flexible measure for electricity consumption in
hotels linking the consumption with occupancy rate of an average of 25 kWh per guest
per day in European hotels. Data of energy consumption in Croatia is available only on
highly aggregated level of service sector which amounted to 4 455 GWh in 200611 as
the latest study12 on energy consumption in hotel industry was written in 2001 for a
private client. Buildings are recognised as a field with the greatest potential for
reducing total energy consumption as approximately 40 percent of European energy
consumption where demand for lighting, heating and cooling, and hot water in
households, offices and leisure facility exceeds the energy consumption coming from
transport or industry13.
Research shows that more than one-fifth of the present energy consumption
and up to 30-45 MT of CO2 per year could be saved by 2010 by applying more
ambitious standards to new and when refurbishing buildings14. By promoting energy
and ecologically sustainable building, energy efficiency aims to15:
Reduce heat losses from buildings by improving thermal protection of external
envelope and by securing an adequate relationship between area of building's
envelope and a buildings volume,
Increase heat gains by favourable orientation of the building and by use of
solar energy,
Utilise renewable energy sources in buildings sun energy, wind energy,
biomass, geothermal,
Improve energy efficiency of thermal power systems.
1.
NEW LEGISLATION FRAMEWORK
In 2005, Croatian government has delivered New technical regulation on heat

energy savings and thermal protection of buildings16 that became mandatory from the
1st of July, 2006. This regulation consists of:
Technical demands on heat energy savings and thermal protection to achieve
in design of new buildings and refurbishment and reconstruction of existing
ones which are heated on space temperature higher than 12C,
Project content regarding heat energy savings and thermal protection,
Statement of required heat energy for heating,
10
UNEP, Switched on: renewable energy opportunities in the tourism industry, UNEP Division of
Technology, Industry and Economics, Production and Consumption Branch, United Nations Publication,
2000. available at: www.uneptie.org/tourism
11
Croatia, 2007.
12
Krstulovic, V. et. al., Energy efficiency investement potentials in hotels on the Croatian coast, Energy
institute Hrvoje Pozar, 2001.
13
Directive 2002/91/EC of the European Parliament and of the Council on the energy performance of
buildings
14
EC,
Directorate
General
for
Energy
and
Transport,
2007.,
available
at:
http://ec.europa.eu/energy/demand/legislation/buildings_en.htm
15
Kolega, V., et al., KUEN building Energy efficiency in buildings: Preliminary results and future
activities, Energy institute Hrvoje Pozar, Zagreb, 1998.
16
Official Gazette 79/2005
351
Building maintenance regarding heat energy savings and thermal protection,

Technical demands for building products,
Other technical demands on heat energy savings and thermal protection.
The new aforementioned technical rule determines the maximum allowed
annual heat demand per square meter or cubic meter of the building Qh (expressed in
kWh/m2a or kWh/m3a), depending on the form factor of the building, i.e. the ratio
between the area of the building's envelope (heated space) and the building's volume.
The heat transfer coefficient for windows and balcony doors in buildings heated to the
temperature of 18C and above is limited to a maximum of U=1.80 W/m2K.
Building energy balance according to HRN EN 832:2000 + HRN EN 932/AC:
2004 includes:
Transmission and ventilation losses through windows from inside to outside
area,
Transmission and ventilation losses through ventilation and heat gains from
boarding zones,
Useful internal heat gains from internal heat sources,
Useful heat gains from sun,
Heating system losses,
Energy for heating.
Based on calculations of the thermal performance of a building, a certificate
on the required heat energy for heating will be made. This energy certificate includes
notice of the required heat energy for heating stated by the designer in the main design
on heat energy savings and thermal protection and verified by the contractor. The
statement of the contractor confirms that the work performed in the building, or a part
of the building, has been carried out in accordance with technical solutions and
conditions of construction relating to the heat energy savings and thermal protection
and with rules of the Technical regulation. The contractors statement is signed by the
head engineer of the building site. This energy statement is enclosed with technical
documentation required for the technical inspection of a building, or a part of the
building, and it makes an integral part of documentation on maintaining and improving
the essential requirements on the building. It should be available to prospective buyers,
tenants and other authorised customers of a building or its part. This legislation is a
good beginning to future energy certification of buildings.
Tourist accommodation in Croatia can be divided in major groups according
to the period of construction: in the late 19th century, in the 1970-ies with mass tourism
destinations and at the turn of the 20th century with major reconstruction and renovation
of existing and building new capacities. By the period of their construction, it is
possible to conclude the majority of them do not meet prerequisites of indoor comfort
on account of low level of thermal insulation of external envelope. The reasoning
behind this statement is rather rational as the insulation materials at that time were poor
and the existing building regulations were not considering energy consumption in
buildings as an issue.
In Europe there are many initiatives for promotion of efficient use of energy,
energy demand management and promotion of production of renewable energy,
352
starting from Directive 2006/32/EC Energy end-use efficiency and energy services.
Main goal of this Directive is to save 1% of energy distributed to final users per year.
Improved energy end-use efficiency will also contribute to the reduction of primary
energy consumption, mitigation of CO2 and other greenhouse gas emissions and
prevention of dangerous climate changes.
The Directive 2002/91/EC on energy performance of buildings promotes
energy performance of buildings taking into account outdoor climatic conditions as
well as indoor climate requirements and cost-effectiveness. The main goal of the
Directive is to oblige member states to necessary reduction of final energy
consumption in new and existing buildings.
Essential requirement is development of methodology of calculation of the
integrated energy performance of buildings.
Member states need to provide trained experts for building certification,
boilers inspection, ventilation and air conditioning systems and drafting of
recommendations for system improvements in respect to energy saving and limiting
carbon dioxide emissions.
For existing buildings with useful area larger than 1 000 m2 for which
refurbishment is planed, improvement of minimum energy characteristics is asked
when ever is technically, functionally and economically feasible. New buildings must
be constructed to meet required minimum energy conditions. For new buildings, with
useful area larger than 1 000 m2 technical, environmental and economic feasibility of
alternative systems such as: decentralised energy supply systems based on renewable
energy, cogeneration, district heating or cooling, heat pumps, etc. is considered and
taken into account before construction starts.
2.
ENERGY AUDIT
To determine energy performance of a building, both constructional elements

and energy production and consumption systems need to be evaluated. Depending on
the purpose of the building aforementioned elements and systems have different
contribution and a various methodology is needed for precise energy performance
calculation.
Energy audit is an analysis of thermal performance and energy systems of
building with the purpose to determent its energy efficiency or non-efficiency. Energy
audit also helps getting new conclusions and suggestions on how to increase the energy
efficiency. Main goal of energy audit is to access and process collected data, and to get
as much accurate present energy performance of building, concerning construction
characteristics in terms of thermal protection, quality and efficiency of heating,
ventilation and cooling systems, quality and efficiency of lighting and household
appliances and building management.
353
In 1998, Energy Institute Hrvoje Pozar (EIHP)17 has made a survey in order to
retrieve data important for execution of different energy audits in residential and public
buildings. The survey was consisted of following data sets:
General data about the building its type, purpose, year of the construction,
year of the reconstruction, climate data, ownership,
Constructions characteristic total surface and heated area, window frame
type and glazing, external wall, roof and floor type
Energy indicators energy consumption for heating and cooling on a monthly
basis, electricity consumption, characteristics of the heating, hot water and
cooling systems, ventilation system and all other energy demand, including
passive heat gains
Living comfort annotations from the occupants or management of the
building
Final conclusion and suggestion measures in at least two categories
Smaller investment expenses and fast implementation
More expensive investment with obligation to conduct detailed energy audit
and feasibility study.
Depending on the data level and its accuracy, the audits could be divided into
preliminary or walk through energy audit and detailed energy audit with feasibility
study. Preliminary energy audit includes short input of energy condition in the building
and its main objective is to determine its potential to increase the energy efficiency and
to execute detailed energy audit. Visual observation of the buildings envelope and its
energy systems with short analysis of collected data shows the key problems and gives
recommendations for improving energy efficiency. If the preliminary energy audit
indicates more complex energy saving possibilities, the audit can continue with a
detailed energy audit and investment study. It comprises a detailed energy analysis of
the building and identification of potential measures of energy efficiency, through
conversation with owners or management of the building and review into existing
documents related to energy consumption.
Conducting a detailed energy audit provides complete insight in existing
energy issues and suggestions on future needs. Since a building is composed of various
construction and energy systems various experts are needed in an energy audit team.
Nevertheless, most of the energy efficiency measures suggested after the audit could be
managed by few persons already employed in the hotel (i.e. maintenance manager).
Energy efficiency measures can always be implemented in a building to
improve energy systems. They vary from simple measures of energy efficiency with no
additional costs, measures with small expenses and fast pay back period (up to 3 years)
to those measures with higher expenses, longer pay back period (more than 3 years)
which are connected to reconstruction activities18.
17
Kolega, V., et al., KUEN building Energy efficiency in buildings: Preliminary results and future
activities, Energy institute Hrvoje Pozar, Zagreb, 1998.
18
Hrs Borkovic, Z., et. al. Guide to energy efficient building, Ministry of Environmental Protection, Physical
Planning and Construction, Zagreb, 2005.
354
Croatian experiences in residential buildings energy auditing have shown that

energy efficiency measures, when applied in initial building investment or in
refurbishment, make additional 10% to 30% to the investment with pay back period 6
to 12 years19. Energy audit provides substantial long term energy savings in case of
refurbishment and/or reconstruction or in the early stages of accommodation facilities
construction planning, too20.
Energy audit in hotels differs from those executed in other buildings mostly in
the part of suggestion measures. The difference is induced by the actual consumers of
energy and their motivation to conserve energy. The hotel manager or the owner could
have motivation in energy cost reduction but only up to the level that will not affect the
level of services provided. The actual consumer, a tourist, does not share the same
economic rationale as one pays a flat rate for the services enjoyed. Even more, if
tourists expectations from holiday facilities are not met, they do not tend to improve it
but move to another which is contradictory to their own home improvements21.
Therefore, a maintenance manager has to balance on the profitability line between the
energy costs and guests satisfaction. Thus, the suggested methods from an energy
audit of a hotel should provide passive measures for energy conservation (magnetic
card that is both key of the room and room energy switch is the energy conservation
examples widely applied in hotels around Europe) where tourists pleasure will not be
jeopardised either by sustaining from energy intensive services such as wellness
whirlpool or asking additional effort such as closing windows while the airconditioning is on.
2.1. Importance of infrared thermography in future certification of buildings

Major part of overall energy consumption in buildings is a indoor comfort
assessment both in summer and winter period. Infrared (IR) thermography is shown as
especially useful method for visualisation of heat losses through constructional
elements in improving energy efficiency of buildings survey.22 Thermography
inspection of buildings and expert interpretation of possible construction defects, are
located and refurbishment actions directed to improve energy efficiency. Construction
defect displayed by thermography are non homogeneous wall material, incorrect or non
existing thermal insulation, damp in construction, flat roof problems, thermal bridges,
open air ducts and ventilation, slots, installations in walls and floors, etc. Wireless and
distance temperature field scanning of the building has major advantages for common
construction analysis. Introduction of IR thermography in buildings is equally useful in
19
Jelavic, B., Hrs Borkovic, Z., Zidar, M., Removing barrieirs to improve energy efficiency in Croatia, in
International Conference World Sustainable Energy Days 2007; Proceedings, O.Oe. Energiesparverband
Wels, 2007.
20
Warnken, J., Bradley, M., Guilding, Ch., Eco-resorts vs. mainstream accommodation providers: an
investigation of the viability of benchmarking environmental performance, Tourism Management, Vol. 26,
2005, 367-379
21
Fortuny, M., Soler, R. Canovas, C., Sanchez, A., Technical approach for a sustainable tourism
development. Case study in the Balearic Islands, Journal of Cleaner Production 2007,
doi.10.1016/j.jclepro.2007.05.003, article in press
22
Andrassy, M. et.al., Infrared thermography education of thermographers, Faculty of Mechanical
Engineering and Naval Architecture in Zagreb, Laboratory for heat and thermal power systems, Zagreb 2007.
355
energy auditing of existing buildings, historic buildings under protection, as in quality

control of new buildings. Based on this, in developed countries IR thermography is
implemented as obligatory method in technical characteristics quality control, building
maintenance and management of public buildings in particular. In numerous energy
certificates as calculated analyses control an IR scan is attached to visualise quality or
defects of a building.
Figure 1 and 2: Comparison of infrared thermography picture in energy auditing
before reconstruction and after reconstruction according to energy
efficiency measures
Source: EIHP
Introducing energy certification of buildings in the future a significant use of

IR thermography is expected, as in energy certification of existing buildings and
quality control of new buildings.
3. DISCUSSION
Several studies on energy efficiency in the hotels with the Mediterranean type
of climate showed discrepancies in methodologies and very few of them had
comparable results23. In order to formulate an effective policy measures, it is necessary
to have reliable and harmonised statistical information and this is the area where energy
efficiency in hotels still has to improve24. Some studies25 were dealing with
successfulness of energy consumption accounting methods where mandatory reporting
method showed the most promising results. In the Mediterranean region, the EU has
developed a Mediterranean Action Plan for sustainable development of tourism and
introduced eco-labelling of hotels that had, so far, little response26. Large hotel groups
tend to believe that energy savings will adversely affect the level of service promised to
23
Buildings, Vol.38, 2006, 964-971
Communities, 2007
25
energy consumption accounting in the tourist accommodation industry, Ecological Economics, Vol. 48,
2004, 125-141.
26
EEA, Europe's environment; the third assessment, Office for Official Publications of the European
Communities, 2003.
24
356
their guests27. Indeed, there is a geometrical link between electricity consumption and
luxury level of a hotel with a 142 percent increase in electricity consumption from one
to four stars Accor hotels28. However, recent surveys suggest that many people would
pay extra for accommodation that was part of a green accreditation scheme29.
Nevertheless, appliance of some energy conservation methods could significantly
contribute to profitability performance of a hotel due to less energy costs while other
methods where larger investment is needed for energy conservation, could have some
drawbacks in short-term profitability of a hotel. Energy conservation in buildings has
been recognised as an important issue in numerous countries, especially in the EU,
where governments provide harsh legislation framework30 from the one side and
substantial financial support for energy conservation from the other side. This is also
the case with Croatia where, besides legislation31 that has been harmonising to the
acquis communitare, financial support is provided by both international (WB; UNDP;
UNEP, OECD, EU, etc.) and national (EEEPF, ESCo concept, HBOR) institutions for
energy audits, programmes and measures.
CONCLUSION
So far, methodology for energy audits has been developed for residential and
public buildings for there is possible to determine a pattern of use. Due to heterogeneity
of accommodation facilities in size, age, construction material, energy appliances,
luxury level, location, etc. that affect the consumption pattern, it is difficult to apply
common methods of energy consumption analyses such as energy auditing in hotels
without some adjustments. This induces another problem for evaluating energy
efficiency in hotel industry which is deciding on what is the industry best practice
and lack of benchmarking32. Although it is difficult to benchmark energy audits in
overall hotel industry, a successfulness of the suggestion measures could be
individually evaluated by the same quality of service provided and pleasure of guests
achieved in the hotel while having lower energy bills than before the energy efficiency
measures applied.
27
Dalton, G. J., Lockington, D. A., Baldock, T. E., A survey of tourist operator attitudes to renewable
energy supply in Queensland; Australia, Renewable Energy, Vol. 32, 2007, 567-586
28 IFEN, Tourisme, environnement, territoires: les indicateurs, Institut Franais de lEnivronnement,
Les indicateurs - Edition 2000.
29
Communities, 2007.
30
Directive 2002/91/EC on energy performance of buildings; Directive 2006/32/EC on energy end-use
efficiency and energy services
31
Technical regulation concerning heat energy savings and thermal protection (OG 79/05); Law on physical
planning and construction (OG 76/07)
32
investigation of the viability of benchmarking environmental performance, Tourism Management, Vol. 26,
2005, 367-379
357
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358
REVIEWERS
Ahmet Akta, Ph.D., School of Tourism and Hotel Management, Akdeniz University, Antalya, Turkey
Branko Aslimoski, Ph.D., University Of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia
Theoman Alemdar, Ph.D., Bilkent University, Ankara, Turkey
Alina Bdulescu, Ph.D., University of Oradea, Faculty of Economics, Romania
Mato Bartoluci, Ph.D., University of Zagreb, Faculty of Economics, Zagreb, Croatia
Ante Bistricic, Ph.D., University of Rijeka, Faculty of Maritime Studies Rijeka, Croatia
Branko Blazevic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Nevenka Blazevic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Djuro
Benic, Ph.D., University of Dubrovnik, Croatia
Zeljko Bjeljac, Ph.D., Geographical Institute Jovan Cvijic, Novi Sad, Serbia
Constantin A. Bob, Ph.D., Academy of Economics Studies, Bucharest, Romania
Igor Brajdic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Evangelos Christou, Ph.D., University of the Aegean, Greece
Zdenko Cerovic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Vinka Cetinski, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Mladen Crnjar, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Dolores
Miskulin Cubric, B.Sc., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Renata Fox, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Milica Gacic, Ph.D., University of Zagreb, Faculty of Teacher Education, Croatia
Vlado Galicic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Georgi Georgiev, Ph.D., Southwest University Neofit Rilski, Faculty of Economics, Blagoevgrad, Bulgaria
Marian Gcik, Ph.D., University of Banska Bystrica, Faculty of Economics, Banksa Bystrica, Slovakia
Dogan Gursoy, Ph.D., Washington State University, USA
Ivanka Avelini Holjevac, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Ritva Hoykinpuro, Ph.D., Lahti Polytechnic, Fellmanni Institute for Hospitality & Tourism, Lahti, Finland
Slobodan Ivanovi, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Zoran Ivanovic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Peter Jordan, Ph.D., Austrian Institute of East and Southeast European Studies, Wien, Austria
Dobrica Jovicic, Ph.D., The Geographical Faculty, University of Belgrade, Serbia
Rade Knezevic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Ioannis Karamanidis, Ph.D., Technological Educational Institution of Thessaloniki, Greece
Hanan Kattara, Ph.D., Alexandria University, Faculty od Tourism and Hotels, Alexandria, Egypt
Slavka Kavcic, Ph.D., Faculty of Economics, Ljubljana, Slovenia
Fotis Kilipiris, Ph.D., Technological Educational Institute of Thessaloniki, Greece
Michael Koniordos, Ph.D., Greek Open University, Athens, Greece
Silio Rigatti Luchini, Ph.D., Universita degli studi di Padova, Padova, Italia
Hartmut Luft, Ph.D., Fachhochschule Wilhelmshaven, Deutschland
Slobodan Malinic, University of Kragujevac, Faculty of Economic, Serbia
Dragan Magas, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Josef Mazanec, Ph.D., Wirtschaftsuniversitt Wien, Austria
Ace Milenkovski, Ph.D., Faculty of Tourism Skopje, University of Tourism and Management, Skopje,
Macedonia
Sofronija Miladinoski, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia
359
Konrad Misztal, Ph.D., University of Gdask, Institute of Maritime Transport and Seaborne Trade, Sopot, Poland
Edna Mrnjavec, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Dieter Mller, Ph.D., University of Ume, Department of Culture Geography, Ume, Sweden
Marin Neshkov, Ph.D., Varna University of Economics, Bulgaria
Chavdar Nikolov, Ph.D., Southwest University Neofit Rilski, Faculty of Economics, Blagoevgrad, Bulgaria
udmila Novack, Ph.D., University of Economics in Bratislava, Faculty of Commerce, Slovakia
Giovanni Panjek, Ph.D., Universita degli studi di Tireste, Facolta di Economia il Preside, Trieste, Italia Franc
Pauko, Ph.D., Faculty of Economics & Business Maribor, Slovenia
Harald Pechlaner, Ph.D., Universitt Innsbruck, Austria
Milena Persic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Boris Pirjavec, Ph.D., University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia
Jovan Plavsa, Ph.D., University of Novi Sad, Faculty of Mathematics and Natural Sciences, Department of
Geography, Tourism and Hotel Industry, Serbia
Stevan Popovic, Ph.D., Faculty of Tourism, Hospitality and Trade - Bar, Montenegro
Ljiljana Prangoska, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia
Rayka Presbury, Ph.D., University of Western Sydney, Penrith South, Australia
Branka Berc Radisic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Franjo Radisic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Goran Radovic, Ph.D., Faculty of Tourism and Hopsitality, Kotor, Montenegro
Gordana Reckoska, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia
Dragan Roller, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Drago Ruzic, Ph.D., University J. J. Strossmayera of Osijek, Faculty of Economics, Osijek, Croatia
Rudolf Ruzicka, Ph.D., WIFI sterreich, Austria
Odysseas Sakellaridis, Ph.D., University of the Aegean, Greece
Jzef Sala, Ph.D., Cracow University Of Economics, Faculty of Management, Poland
Alexey Sesyolkin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia
Marianna Sigala, Ph.D., University of the Aegean, Greece
Lidija Simonceska, Ph.D., University of Bitola, Faculty of Tourism and Hospitality, Ohrid, Macedonia
Barbara Sporn, Ph.D., Wirtschaftsuniversitt Wien, Austria
Vladimir Stipetic, Ph.D., HAZU, Zagreb, Croatia
Snezana Stetic, Ph.D., University of Novi Sad, Serbia
Jan Telus, Ph.D., Wyzsza Szkola Zarzadzania Gospodarska Regionalna i Turystyka, Kielce, Poland
Ada Mirela Tomescu, Ph.D., University of Orade, Economics Faculty, Oradea, Romania
Veljko Trivun, Ph.D., University of Sarajevo, Economics Faculty Sarajevo, Bosnia and Hercegovina
Paris Tsarta, Ph.D., University of the Aegean, Chios, Greece
Vladimir Veselica, Ph.D., University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia
Milota Vetrkov, Ph.D., Faculty of Economics, Matej Bel, Bansk Bystrica, Slovakia
Vesna Vrtiprah, Ph.D., University of Dubrovnik, Croatia
Vidoje Vujic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia
Irena Zavrl, Ph.D., Faculty of Economic Ljubljana, Slovenija
Shapour Zafarpour, Ph.D., Wirtschaftsuniversitt Wien, Austria
Josef Zelenka, Ph.D., University of Education Hradec Kralove, Faculty of Management and Information
Technology, Czech Republic
Elfrida Zefi, Ph.D., University Fan S. Noli, Kora Economic Faculty, Kor, Albania
Igor V. Zorin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia
Rudolf O. Zucha, Ph.D., Universitt Wien, Austria
360
NOTES FOR AUTHORS

Manuscripts should be sent to the Editor, Professor Zoran Ivanovic, Ph.D., University of
Rijeka, Faculty of Tourism and Hospitality Management, Primorska 42, PO Box 97, 51410
Opatija, Croatia; e-mail: thm@fthm.hr
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Book chapter:
O'Neil, J. M., & Egan, J. (1992). Men's and women's gender role journeys: Metaphor for healing, transition,
and transformation. In B. R. Wainrib (Ed.), Gender issues across the life cycle (pp. 107-123). New
York: Springer.
Figures, graphs, tables:

Enclosures to the text (figures, graphs, tables) should be prepared in this page set-up. Figures,
graphs and tables should be numbered consecutively in Arabic numerals and given a suitable
caption. Title should be located above in upper corner of figure, graph or table.
Volume 14
Number 2
December 2008
TOURISM AND
HOSPITALITY
MANAGEMENT
Contents
Research Papers
THE GDP IMPACT ON INTERNATIONAL TOURISM DEMAND: A SLOVENIA BASED CASE
Helena Nemec Rudez
217
ENVIROMENTAL PROTECTION KEY PREREQUISITE FOR SUSTAINABLE TOURISM ON MEDITERRANEAN

Dobrica Jovicic, Vanja Ivanovic
229
USING THE LEARN MODEL TO RESOLVE GUSET COMPLAINTS

Vlado Galicic, Slobodan Ivanovic
241
ANALYSING THE USRES PERCEPTION OF WEB DESIGN QUALITY BY DATA MINING TOOLS
Vanja Bevanda, Jasmina Grzinic, Emanuel Cervar
251
RESTORABLE ENERGY SOURCES AS A FACTOR OF COMPETITIVE IMPROVEMENT ABILITY OF A TOURIST

DESTINATION
Danijela Gracan, Romina Alkier Radnic, Sinisa Bogdan
263
THE DEVELOPMNET DESING MODEL IN THE COMPETITIVNESS OF INTELLIGENTE BUSINESS

ORGANIZATIONS
Christian Stipanovic, Suzana Baresa
271
TOURISM AS A PATHWAY FOR RES UTILISATION

Biljana Kulisic, Margareta Zidar, Branka Jelavic, Julije Domac, Velimir Segon
281
ENERGY CONSUPTION IN HOTEL INDUSTRY CASE STUDY IN OHRID

Gordana Petroska Reckoska, Risto Reckoski, Angela Vasileska
291
ECONOMIC AND ENVIRONMENTAL ASPECTS OF INTRODUCING THE USE OF BIODISEL IN THE HOSPITALITY
AND TOURISM BUSINESS OF RURAL ISTRIA
Pavlo Ruzic, Ivan Ruzic, Marinela Dropulic
301
CHALLENGES BEFORE THE ACHIEVEMENT OF A SUSTAINABLE CULTURAL TOURISM

Milena Filipova
311
IMPORTANCE OF INTELLIGENT ROOMS FOR ENERGY SAVINGS IN THE HOTEL INDUSTRY

Marinela Krstinic Nizic, Goran Karanovic, Sasa Ivanovic
323
ENVIROMENTAL PROTECTION AS A FUNDAMENTAL PART IN TOURISM DEVELOPMENT AND INSURANCE

INDUSTRY COMMITMENT TO SUPPORTING IT
Larisa Vasileska, Katerina Angeleska-Nadjeska
337
GREEN MARKETING: A NEW CHALLENGE FOR ROMANIAN ORGANIZATIONS

Andreea Mutean, Filimon Stretman
343
ENERGY AUDIT METHOD FOR ENERGY CONSERVATION IN HOTELS

Zeljka Hrs Borkovic, Biljana Kulisic, Margareta Zidar
349
Reviewers
359
T.E.I.
Thessaloniki
Greece

Promotion,
Austrian Economic
Chamber,
Vienna, Austria
Department
of Tourism
Management

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UDC 338.48+640.

Edited By Zoran Ivanovic

Institut for Economic Promotion,

OPATIJA, VIENNA, THESSALONIKI

TOURISM AND HOSPITALITY MANAGEMENT

Prof. Ace Milenkovski, Ph.D., Faculty of Tourism Skopje, University

TOURISM AND HOSPITALITY MANAGEMENT

ENVIROMENTAL PROTECTION KEY PREREQUISITE FOR SUSTAINABLE TOURISM ON

USING THE LEARN MODEL TO RESOLVE GUSET COMPLAINTS

RESTORABLE ENERGY SOURCES AS A FACTOR OF COMPETITIVE IMPROVEMENT ABILITY

THE DEVELOPMNET DESING MODEL IN THE COMPETITIVNESS OF INTELLIGENTE BUSINESS

TOURISM AS A PATHWAY FOR RES UTILISATION

ENERGY CONSUPTION IN HOTEL INDUSTRY CASE STUDY IN OHRID

ECONOMIC AND ENVIRONMENTAL ASPECTS OF INTRODUCING THE USE OF BIODISEL IN

CHALLENGES BEFORE THE ACHIEVEMENT OF A SUSTAINABLE CULTURAL TOURISM

IMPORTANCE OF INTELLIGENT ROOMS FOR ENERGY SAVINGS IN THE HOTEL INDUSTRY

ENVIROMENTAL PROTECTION AS A FUNDAMENTAL PART IN TOURISM DEVELOPMENT AND

GREEN MARKETING: A NEW CHALLENGE FOR ROMANIAN ORGANIZATIONS

ENERGY AUDIT METHOD FOR ENERGY CONSERVATION IN HOTELS

TOURISM AND HOSPITALITY MANAGEMENT

Printed in 1000 copies

Alexandreion Technological Educational Institution (T.E.I) of Thessaloniki, Department of Tourism

ADDRESS OF THE EDITORIAL OFFICE

University of Rijeka, Faculty of Tourism and Hospitality Management,

Tourism and Hospitality Management is

indexed in the following databases:

ECONLIT AND JOURNAL OF ECONOMIC LITERATURE, PITTSBURGH, PENNSYLVANIA, U.S.A.

Institut for Economic

THE GDP IMPACT ON INTERNATIONAL

According to Statistical office of the Republic of Slovenia (SURS, 2006;

where ITEi is international tourism expenditures in year i and Yi is GDP in year i.

gathered from different issues of Statistical Yearbook of Republic of Slovenia published

international tourism expenditure

Figure 1: International tourism expenditures of Slovenia in period 1994-2006

International tourism expenditures were equivalent to 2,68 % of GDP in 1994

Figure 2: International tourism expenditures as a percent of GDP in period 1994-2006

The impact of GDP on international tourism expenditures between 1994 and

The choice of functional forms should be based on economic theory and

Table 2: Regression statistics and Durbin-Watson d statistics for lin-log functional

After including trend t variable in the lin-log functional form, Durbin-Watson

ln (ITE) = 4,509 + 0,000105 * Y,

Table 3: Income elasticity of international tourism demand in Slovenia in period 1994

According to the log-lin functional form (Table 3), income elasticity of

3. DISCUSSION AND CONCLUSION

positive and strong impact on international tourism expenditure of Slovenia in the

Institut for Economic

ENVIRONMENTAL PROTECTION KEY

TOURISM EFFECTS ON THE MEDITERRANEAN ENVIRONMENT

Tourism in the Mediterranean area has emphasized seasonal and spatial

available at: www.unwto.org

available at: www.europa.eu.int

THE KEY PROTECTION MEASURES OF ENVIRONMENT AND

The most important instrument represents integral approach to tourism

available at: www.emeraldinsight.com/insight

available at: www.eea.europa.eu

Ensuring of drinking water, cleansing of waste waters, treatment and delaying

Source: available at: www.eea.europa.eu

THE ENVIRONMENTAL MANAGEMENT SYSTEMS

The systems of environmental management or eco-management systems (EMS)

The general properties of EMS include:

The introduction of EMS makes it possible for a company/enterprise to resolve

available at: www.iso.org

INSTITUTIONAL FRAME OF SUSTAINABLE TOURISM AND