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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

DEPARTMENT OF TOURISM MANAGEMENT TEI Thessaloniki, Greece

Volume 14

Number 2

pp. 217-360

December 2008

OPATIJA, VIENNA, THESSALONIKI

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 INTERNATIONAL SCIENTIFIC AND EDITORIAL BOARD
Prof. Amal Aboufayad, Ph.D., Lebanese University, Lebanon Prof. Ahmet Akta, Ph.D., Akdeniz University School of Tourism and Hotel management, Arapsuyu, Turkey Prof. Theoman Alemdar, Ph.D., Bilkent University, Ankara, Turkey Prof. Mato Bartoluci, Ph.D., University of Zagreb, Faculty of Economics, Zagreb, Croatia Prof. Ante Bistricic, Ph.D., University of Rijeka, Faculty of Maritime Studies Rijeka, Croatia Prof. Frank Brck, Ph.D., Wirtschaftsuniversitt Wien, Austria Prof. Dimitrios Buhalis, Ph.D., University of Surrey, United Kingdom Prof. Kaye Chon, Ph.D., Hong Kong Polytechnic University, Hong Kong SAR, China Prof. Evangelos Christou, Ph.D., University of the Aegean, Greece Prof. Constantin A. Bob, Ph.D., Academy of Economics Studies, Bucharest, Romania Prof. Chris Cooper, Ph.D., University of Queensland, Australia Prof. Muris Cicic, Ph.D., Faculty of Economics, Sarajevo, Bosnia and Hercegovina Prof. Krzysztof Dobrowolski, Ph.D., University of Gdask, Institute of Maritime Transport and Seaborne Trade, Sopot, Poland Prof. Vlado Galicic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Prof. Georgi Georgiev, Ph.D., Southwest University Neofit Rilski, Faculty of Economics, Blagoevgrad, Bulgaria Prof. Marian Gcik, Ph.D., University of Banska Bystrica, Faculty of Economics, Banksa Bystrica, Slovakia Prof. Dogan Gursoy, Ph.D., Washington State University, USA Prof. Antti Haahti, Ph.D., University of Lapland, Finland Prof. Michael Hall, Ph.D., University of Otago, New Zeland Prof. Ritva Hoykinpuro, Ph.D., Lahti Polytechnic, Fellmanni Institute for Hospitality & Tourism, Lahti, Finland Prof. Ivanka Avelini Holjevac, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Prof. Elizabeth M Ineson, Ph.D., Manchester Metropolitan University, United Kingdom Prof. Slobodan Ivanovic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Prof. Peter Jordan, Ph.D., sterreichisches Ost- und Sdosteuropa Institut, Wien, Austria Prof. Dobrica Jovicic, Ph.D., University of Belgrade,The Geographical Faculty, Serbia Prof. Jay Kandampully, Ph.D., Ohio State University, USA Prof. Pavlos Karakoltsidis, Ph.D., Technological Educational Institute of Thessaloniki, Greece Prof. Ioannis Karamanidis, Ph.D., Technological Educational Institution of Thessaloniki, Greece Prof. Hanan Kattara, Ph.D., Alexandria University, Faculty od Tourism and Hotels, Alexandria, Egypt Prof. Slavka Kavcic, Ph.D., Faculty of Economics, Ljubljana, Slovenia Prof. Saad Al-Deen Kharfan, Ph. D., Tishreen University, Syria Prof. Fotis Kilipiris, Ph.D., Technological Educational Institute of Thessaloniki, Greece Prof. Metin Kozak, Ph.D., University of Mugla, Turkey Prof. Silio Rigatti Luchini, Ph.D., Universita degli studi di Padova, Padova, Italia Prof. Hartmut Luft, Ph.D., Fachhochschule Wilhelmshaven, Deutschland Prof. Slobodan Malinic, University of Kragujevac, Faculty of Economic, Serbia Prof. Josef Mazanec, Ph.D., Wirtschaftsuniversitt Wien, Austria Prof. Sofronija Miladinoski, Ph.D., Faculty of Tourism and Hospitality, Ohrid, Macedonia Prof. Ace Milenkovski, Ph.D., Faculty of Tourism Skopje, University of Tourism and Management, Skopje, Macedonia Prof. Dieter Mller, Ph.D., University of Ume, Department of Culture Geography, Ume, Sweden Prof. Chavdar Nikolov, Ph.D., Southwest University Neofit Rilski, Faculty of Economics, Blagoevgrad, Bulgaria Prof. Ludmila Novack, Ph.D., University of Economics, Bratislava, Slovakia Prof. Giovanni Panjek, Ph.D., Universita degli studi di Tireste, Facolta di Economia il Preside, Trieste, Italia Prof. Franc Pauko, Ph.D., Faculty of Economics & Business Maribor, Slovenia Prof. Harald Pechlaner, Ph.D., Universitt Innsbruck, Austria Prof. Milena Persic, Ph.D., University of Rijeka, Faculty of Tourism and Hospitality Management in Opatija, Croatia Prof. Jovan Plavsa, University of Novi Sad, Faculty of Mathematics and Natural Sciences, Department of Geography, Tourism and Hotel Industry, Serbia Prof. Stevan Popovic, Ph.D., Faculty of Tourism, Hospitality and Trade Bar, Montenegro Prof. Rayka Presbury, Ph.D., University of Western Sydney, Penrith South, Australia Prof. Goran Radovic, Ph.D., Faculty of Tourism and Hopsitality, Kotor, Montenegro Prof. Mukesh Ranga, Ph.D., Bundelkhand University, India Prof. Gordana Reckoska, Ph.D., University of Bitola St. Kliment Ohridski, Ohrid, Macedonia Prof. Chris Roberts, Ph.D., University of Massachusetts, USA Prof. Ana-Isabel Rodrigues, Ph.D., Polytechnic Institute of Beja, Portugal Prof. Rudolf Ruzicka, Ph.D., WIFI sterreich, Austria Prof. Odysseas Sakellaridis, Ph.D., University of the Aegean, Greece Prof. Josef Sala, Ph.D., Akademia Ekonomiczna w Krakowie, Poland Prof. Ian Senior, Ph.D., Emirates Academy, United Arab Emirates Prof. Alexey Sesyolkin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia Prof. Marianna Sigala, Ph.D., University of the Aegean, Greece Otmar Sorgenfrei, Fondation Nestle pro Gastronomia, Vevey, Switzerland Prof. Barbara Sporn, Ph.D., Wirtschaftsuniversitt Wien, Austria Prof. Anders Steene, Ph.D., National Institute for Working Life, Stockholm, Sweden Akademic Vladimir Stipetic, professor emeritus, University of Zagreb, Croatia Prof. Snesana Stetic, Ph.D., University of Novi Sad, Serbia Prof. Jan Telus, Ph.D., Wyzsza Szkola Zarzadzania Gospodarska Regionalna i Turystyka, Kielce, Poland Prof. Ada Mirela Tomescu, Ph.D., University of Oradea, Economics Faculty, Oradea, Romania Prof. Veljko Trivun, Ph.D., University of Sarajevo, Economics Faculty Sarajevo, Bosnia and Hercegovina Prof. Paris Tsarta, Ph.D., University of the Aegean, Chios, Greece Prof. Francois Vellas, Ph.D., University of Toulouse, France Prof. Vladimir Veselica, Ph.D., University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia Prof. Craig Webster, Ph.D., College of Tourism and Hotel Management, Cyprus Prof. Shapour Zafarpour, Ph.D., Wirtschaftsuniversitt Wien, Austria Prof. Elfrida Zefi, Ph.D., University Fan S. Noli, Kora Economic Faculty, Kor, Albania Prof. Igor V. Zorin, Ph.D., Russian International Academmy for Tourism, Moscow, Russia

ISSN 1330-7533

TOURISM AND HOSPITALITY MANAGEMENT


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 ENVIROMENTAL PROTECTION KEY PREREQUISITE FOR SUSTAINABLE TOURISM ON MEDITERRANEAN Dobrica Jovicic, Vanja Ivanovic USING THE LEARN MODEL TO RESOLVE GUSET COMPLAINTS Vlado Galicic, Slobodan Ivanovic ANALYSING THE USRES PERCEPTION OF WEB DESIGN QUALITY BY DATA MINING TOOLS Vanja Bevanda, Jasmina Grzinic, Emanuel Cervar RESTORABLE ENERGY SOURCES AS A FACTOR OF COMPETITIVE IMPROVEMENT ABILITY OF A TOURIST DESTINATION Danijela Gracan, Romina Alkier Radnic, Sinisa Bogdan THE DEVELOPMNET DESING MODEL IN THE COMPETITIVNESS OF INTELLIGENTE BUSINESS ORGANIZATIONS Christian Stipanovic, Suzana Baresa TOURISM AS A PATHWAY FOR RES UTILISATION Biljana Kulisic, Margareta Zidar, Branka Jelavic, Julije Domac, Velimir Segon ENERGY CONSUPTION IN HOTEL INDUSTRY CASE STUDY IN OHRID Gordana Petroska Reckoska, Risto Reckoski, Angela Vasileska 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 CHALLENGES BEFORE THE ACHIEVEMENT OF A SUSTAINABLE CULTURAL TOURISM Milena Filipova IMPORTANCE OF INTELLIGENT ROOMS FOR ENERGY SAVINGS IN THE HOTEL INDUSTRY Marinela Krstinic Nizic, Goran Karanovic, Sasa Ivanovic ENVIROMENTAL PROTECTION AS A FUNDAMENTAL PART IN TOURISM DEVELOPMENT AND INSURANCE INDUSTRY COMMITMENT TO SUPPORTING IT Larisa Vasileska, Katerina Angeleska-Nadjeska GREEN MARKETING: A NEW CHALLENGE FOR ROMANIAN ORGANIZATIONS Andreea Mutean, Filimon Stretman ENERGY AUDIT METHOD FOR ENERGY CONSERVATION IN HOTELS Zeljka Hrs Borkovic, Biljana Kulisic, Margareta Zidar 217 229

241 251 263

271

281 291 301

311 323 337

343 349

Reviewers

TOURISM AND HOSPITALITY MANAGEMENT


Tourism and Hospitality Management is an international, multidisciplinary, refereed (peer-reviewed) journal aiming to promote and enhance research in all fields of tourism and hospitality including travel, leisure and event management. The journal has been published regularly since 1995, twice per year (in June and in December) by the Faculty of Tourism and Hospitality Management, Opatija, Croatia in cooperation with WIFI Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria and T.E.I. - Alexandreion Technological Educational Institution of Thessaloniki, Department of Tourism Management, Thessaloniki, Greece. The journal is specialized for the area of south and southeastern Europe, but contributions from other parts are also welcome. THM is publishing original papers along with empirical research based on theoretical foundation, and theoretical articles that contribute to the conceptual development in the field of tourism, hospitality, travel, leisure and event management. The Journal is designed to encourage interest in all matters relating to tourism, hospitality, travel, leisure and event management and is intended to appeal to both the academic and professional community working in this area. Two anonymous referees review each article. We kindly invite any comments or suggestion readers may have to improve the quality of our journal. Instructions to authors are listed at the end of the journal.
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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.

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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.

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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
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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), 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
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Tourism and Hospitality Management, Vol. 14, No. 2, pp. 217-228, 2008 H. Nemec Rudez: THE GDP IMPACT ON INTERANTIONAL TOURISM DEMAND: A SLOVENIA

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

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

% o f international touris m ex penditures in GDP

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

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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 Constant (t-statistics) -125,626 (-1,416) -6,823 (-2,87180) 4,509 (18,170) -4127,942 (-4,854) Coefficient (t-statistics) 0,037 (5,301) 1,341 (5,327) 0,000105 (5,361) 473,512 (5,259) 0,690 Test statistics F r2 (p-value) 0,719 0,037 (5,301) 1,341 (5,327) 0,000105 (5,361) 473,512 (5,259) DurbinWatson d statistics 1,533

Log-linear

0,721 0,723

1,512

Log-lin

1,552

Lin-log

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.

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Table 2: Regression statistics and Durbin-Watson d statistics for lin-log functional form in period 1994-2006 with added independent variable trend
Constant (t-statistics) 27699,972 (0,575) Coefficient GDP (t-statistics) 6564,398 (5,076) Coefficient trend (t-statistics) -26,689 (-1,161) Test statistics R2 F (p-value) 0,756 15,499 (0,001) DurbinWatson d statistics 1,968

Functional form

Lin-log

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), ln (ITE) = 4,509 + 0,000105 * Y, (2) (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.

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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
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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
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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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Alegre, J. and L. Pou (2004). Micro-determinants of the Probability of Tourism Consumption. Tourism Economics, 10 (2), 125-144. Crouch, G. I. (1994a). Demand Elasticities for Short-Haul versus Long-Haul Tourism. Journal of Travel Research, 33 (2), 2-7. Crouch, G. I. (1994b). Promotion and Demand in International Tourism. Journal of Travel and Tourism Marketing, 3 (3), 109-25. Crouch, G. I. (1994c). The Study of International Tourism Demand: A Survey of Practice, Journal of Travel Research, 32 (4), 41-55. Crouch, G. I. (1994d). The Study of International Tourism Demand: A Review of Findings, Journal of Travel Research, 33 (1), 12-23. Crouch, G. I. (1995). A Meta-Analysis of Tourism Demand, Annals of Tourism Research, 22 (1), 103-118. Crouch, G. I. (1996). Demand Elasticities in International Marketing: A Meta-Analytical Application to Tourism. Journal of Business Research, 36 (1), 117-136. Crouch I. G. et al. (2007). Discretionary Expenditures and Tourism Consumption: Insights from a Choice Experiment. Journal of Travel Research, 45 (2), 247-258. Crouch, G. I. and R. N. Shaw (1992). International Tourism Demand: A Meta-Analytical Integration of Research Findings. In Johnson P. and Thomas B., eds. Choice and Demand in Tourism. London: Mansell, 175-207. De Mello, M. M. and N. Fortuna (2005). Testing Alternative Dynamic Systems for Modelling Tourism Demand. Tourism Economics, 11 (4), 517-537. Gujarati D. N. (2003). Basic Econometrics. Boston etc.: McGrawHill. Han, Z., Dubarry, R. and T. Sinclair (2006) Modelling US Tourism Demand in the Travel and Tourism Industry. Tourism Management, 27 (1), 1-10. Kerr, G. N. and M. H. Sharp eds. (1985). Valuing the Environment: Economic Theory and Applications, Centre for Resource Management, Canterbury. Lim, C. (1999). A Meta-Analytical Review of International Tourism Demand. Journal of Travel Research, 37 (3), 273-284. Mangion, D., Durbarry, R., and T. Sinlcair (2005) Tourism Competitiveness: Price and Quality. Tourism Economics, 11 (1), 45-68. Mervar, A. and E. J. Payne (2007) An Analysis of Foreign Tourism demand for Croatian Destinations: Long-Run Elasticity Estimates. Working paper. Zagreb: Ekonomski institut Zagreb. Planina, J. and T. Mihalic (2002) Ekonomika turizma. Ljubljana: Ekonomska fakulteta, program Turistica. Smeral, E. and A. Weber (2000). Forecasting International Tourism Trends to 2010. Annals of Tourism Research, 29 (4), 982-1006. Smeral, E. (2004). Long-term forecasts for international tourism. Tourism Economics, 10 (2), 145-166.

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Tourism and Hospitality Management, Vol. 14, No. 2, pp. 217-228, 2008 H. Nemec Rudez: THE GDP IMPACT ON INTERANTIONAL TOURISM DEMAND: A SLOVENIA Song H. and S. F. Witt (2000) Tourism Demand Modelling and Forecasting: Modern Econometric Approach. Oxford (UK): Pergamon. Song H. and K. K. Wong (2003) Tourism Demand Modelling: A Time-Varying Parameter Approach. Journal of Travel Research, 42 (1), 57-64. SURS (2006) Statisticni letopis RS. Available on: http://www.stat.si, date May 8, 2007. SURS (2007) Pomembnejsi statisticni podatki o Sloveniji, letnik 1, st. 4/2007. Available on: http://www.stat.si/doc/pub/PSP/00-PS-912-0704.pdf, date May 8, 2007. Tribe, J. The Economics of Recreation, Leisure and Tourism. Oxford: Elsevier Butterworth-Heinemann. UNWTO (2007) Facts & Figures: Methodological Notes. Available on: http://www.unwto.org/facts/eng/methodological.htm, date May 10, 2007 Veloce, W. (2004). Forecasting inbound Canadian tourism: an evaluation of Error Corrections Model forecasts. Tourism Economics, 10 (3), 263-280. Witt, S. F. and C. A. Witt (1992). Modelling and Forecasting demand in Tourism. London: Academic Press.

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T.E.I. Thessaloniki Greece

UDC 338.48:008
Preliminary communication Received: 23.10.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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

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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
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
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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 McKercher B., Cros H., Cultural Tourism: the partnership Between Tourism and Cultural Heritage 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

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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.

Pinkley R., Dimensions of conflict frame: Disputant interpretations of conflict, Journal of Applied Psychology, 1990, 2, p. 119 McKercher B., Cros H., Cultural Tourism: the partnership Between Tourism and Cultural Heritage 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
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Table 1.: Comparison between the management of cultural heritage and tourism
Structure Aims Key stakeholders Cultural Heritage Management Public sector-oriented Non-profit A larger social goal Community groups Heritage groups Minority / ethnical / local groups Tourism Private sector-oriented Profit pursuing Commercial goals Business groups Non-local residents National tourism business associations, other bodies of industry

Economic attitude to assets

Local residents Organisations of heritage professionals / local historical groups / religious leaders Value of existence Protection for their intrinsic values

Value of use Consumption for their intrinsic or non-intrinsic attractiveness Non-local residents Business/marketing Valuable for the tourist as a product or activity that could help for the identification of a destination WTO / WTTC (supporting the development of tourism)

Key groups of stakeholders Field of activities Use of the asset International political bodies / NGO /nongovernmental organizations/

Local residents Sociology/arts Valuable for the community as a representation of a tangible or intangible heritage ICOMOS/ICOM/ UNESCO (supporting the preservation of culture)

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.
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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

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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 The culture, art and historical heritage are one of the basic factors responsible for the recognition of the tourism destination. 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). Influence of tourism on culture 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. 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.
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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

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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.
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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 Jackson E., Wong R., Perceived conflict between urban cross country skiers and snowmobilers in Alberta, 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

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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 Jackson E., Wong R., Perceived conflict between urban cross country skiers and snowmobilers in Alberta, 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

Tourism and Hospitality Management, Vol. 14, No. 2, pp. 311-322, 2008 M. Filipova: CHALLENGES BEFORE THE ACHIEVEMENT OF A SUSTAINABLE... 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 McKercher B., Cros H., Cultural Tourism: the partnership Between Tourism and Cultural Heritage 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

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T.E.I. Thessaloniki Greece

UDC 640.4:621.31
Rewiev Received: 04.03.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism Management

IMPORTANCE OF INTELLIGENT ROOMS FOR ENERGY SAVINGS IN THE HOTEL INDUSTRY


Marinela Krstincic Nizic Goran Karanovic Sasa Ivanovic
University of Rijeka, Croatia1
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.

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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
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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
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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 Room is not allotted Room is allotted, guest is not present in the room Room is allotted guest is present in the room Room is not allotted Presence in the room detected OPERATIONAL SYSTEM All electrical appliances are off, except cooler (mini bar) Cooler in use; AC unit keeps temperature 3 C lower than outside temperature; AC unit does not function if the window is open; 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; 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.)

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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.
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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)

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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 7,90 7,40 7,40 0,00*

kW/ night Hotel B 20,43 19,54 20,01 17,58

days in month 27 27 27 27

actual consumption Hotel A 0,29 0,27 0,27 0,00

actual consumption Hotel B 0,76 0,72 0,74 0,65

% savings per day 38,67% 37,87% 36,98% 0,00% 329

01.08.2006. 02.08.2006. 03.08.2006. 04.08.2006.

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(continued)
Date kW/ night Hotel A 0,00* 7,10 6,70 7,30 6,50 6,70 6,30 6,40 6,20 6,30 6,50 6,70 7,20 7,80 7,10 7,10 6,50 6,50 6,50 6,50 0,00* 0,00* 7,00 6,30 6,40 6,50 6,50 183,3 kW/ night Hotel B 17,27 18,55 17,70 18,83 16,88 17,15 17,80 16,94 16,62 17,47 18,67 20,36 20,23 20,18 18,44 19,04 17,88 17,48 17,75 17,95 16,97 18,66 16,55 18,02 17,86 18,18 17,98 564,97 days in month 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 actual consumption Hotel A 0,00 0,26 0,25 0,27 0,24 0,25 0,23 0,24 0,23 0,23 0,24 0,25 0,27 0,29 0,26 0,26 0,24 0,24 0,24 0,24 0,00 0,00 0,26 0,23 0,24 0,24 0,24 6,79 actual consumption Hotel B 0,64 0,69 0,66 0,70 0,63 0,64 0,66 0,63 0,62 0,65 0,69 0,75 0,75 0,75 0,68 0,71 0,66 0,65 0,66 0,66 0,63 0,69 0,61 0,67 0,66 0,67 0,67 20,92 % savings per day 0,00% 38,27% 37,85% 38,77% 38,51% 39,07% 35,39% 37,78% 37,30% 36,06% 34,82% 32,91% 35,59% 38,65% 38,50% 37,29% 36,35% 37,19% 36,62% 36,21% 0,00% 0,00% 42,30% 34,96% 35,83% 35,75% 36,15% 32,44%

05.08.2006. 06.08.2006. 07.08.2006. 08.08.2006. 09.08.2006. 10.08.2006. 11.08.2006. 12.08.2006. 13.08.2006. 14.08.2006. 15.08.2006. 16.08.2006. 17.08.2006. 18.08.2006. 19.08.2006. 20.08.2006. 21.08.2006. 22.08.2006. 23.08.2006. 24.08.2006. 25.08.2006. 26.08.2006. 27.08.2006. 28.08.2006. 29.08.2006. 30.08.2006. 31.08.2006. Total:
*Data unavailable

Source: according to the data in Projekt energetske ucinkovitosti- Hotel Sol Garden Istra Umag, October 2007

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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

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Picture 1. Marriotts Energy Strategy

Supply Side Energy

Demand Side Energy Management

Metrics and Reporting

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 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

3.

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)

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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

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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

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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.

REFERENCES
Avelini Holjevac, I., Kontroling Upravljanje poslovnim rezultatom, Hotelijerski fakultet Opatija, Opatija, 1998. 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 drutvo za kvalitetu, Brijuni, 14.-16. svibnja 2007. Blazevic, B., Turizam u gospodarskom sustavu, Sveuciliste u Rijeci, Fakultet za turisticki i hotelski menadzment Opatija, Opatija, 2007., str. 479 Canina, L., Walsh, K., Enz, C., The Effects of Gasoline-price Changes on Room Demand: A Study of Branded Hotels from 1988 through 2000, Cornell Hotel and Restaurant Administration Quarterly, Volume 44, Number 4, August, 2003., 29-37 Crnjar, M., Ekonomika i politika zastite okolisa, Ekonomski fakultet Sveucilista u Rijeci, Glosa Rijeka, Rijeka, 2002.

14 Blazevic, B., Turizam u gospodarskom sustavu, Sveuciliste u Rijeci, Fakultet za turisticki i hotelski menadzment Opatija, Opatija, 2007., str. 479

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Tourism and Hospitality Management, Vol. 14, No. 2, pp. 323-336, 2008 M. Krstinic Nizic, G. Karanovic, S. Ivanovic: IMPORTANCE OF INTELLIGENT ROOMS FOR Davanport, T. H., Prusak, L., Working Knowledge, How Organization manage what that they know, Harvard Business School Press, Boston, 1998. Environmental Management for Hotels, The industry guide to best practice, International Hotels Environment Initiative, Butterworth-Heinemann Ltd, Oxford, 1993. Kojic, D., Ne zele ured u hotelskoj sobi, casopis Ugostiteljstvo i turizam, br. 4/2003, 48-49 Laslavic, Z., Hotelijeri na visak energije bacaju 100.000 eura na godinu, casopis Lider, studeni 2007.,72-73 Persic, M., Zeleno racunovodstvo sto je i kome koristi?, Racunovodstvo i financije, br.12/2007, 47-53 Pesut, M., Do nize cijene malim koracima, Ustede, casopis Ugostiteljstvo i turizam, br. 9/2006, 56-60 Pirjevec, B., Ekonomska obiljezja turizma, Golden marketing, Zagreb, 1998. Stipanuk, D., Energy Management in 2001 and Beyond, Cornell Hotel and Restaurant Administration Quarterly, Volume 42, Number 3, June, 2001., 57-70 Weihrich, H., Koontz, H., Menadzment, deseto izdanje, Mate, Zagreb, 1994. (prijevod) S energijom racionalno, Projekt energetske ucinkovitosti, casopis Ugostiteljstvo i turizam, br. 9/2006, 52-53 I struja postaje trzisna kategorija, Elektricna energija, casopis Ugostiteljstvo i turizam, br. 9/2006, 50-51 Od pametne sobe do pametnog hotela, Trendovi, casopis Ugostiteljstvo i turizam, br. 7-8/2007, 34 Desna ruka u poslovanju, Informatika u turizmu, casopis Ugostiteljstvo i turizam, br. 7-8/2007, 24-27 Hotel Sol Garden Istra projekt energetske ucinkovitosti, listopad 2007. http://www.adria-electronic.hr/hoteli.htm (25.11.2007) http://www.focusonenergy.com/data/common/dmsFiles/B_GC_MKCS_HolidayInnGREMCSv2.pdf (25.11.2007.) http://www.permafrostonline.com/resources/hotel-energy-saving-tips.php (27.11.2007.) http://www.optima-inz.com/isobe.html (28.11.2007.) http://www.elmah.hr, Elektromagazin Hrvatska (25.11.2007.) http://www.gradst.hr/library/journals/catalogue_G/ GO 21/ Casopis za graditeljstvo, instalacije, opremu i energiju 21.stoljeca, prosinac, 2004. (25.11.2007.) http://www.hotel-online.com/News/PR2006_1st/Mar06_EnergyCostsSurge.html (27.11.2007.) http://www.app.nea.gov.sg/cms/htdocs/article.asp?pid=2928 (27.11.2007.) http://www.epa.gov/dimateleaders/document/events/mar2007/maher.pdf (29.11.2007) http://hiltonworldwide1.hilton.com/en_US/ww/business/environmental.do;jsessionid=12F778627100C6C99 CFA28F663CDEC8C.etc23 (25.11.2007.) http://www.marriott.com/news/detail.mi?marrArticle=286518 (27.11.2007.) 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 CD I. Savjetovanje HOTELSKI TEHNICKI MENADZMENT zadovoljiti goste i ustedjeti energiju, Sibenik, 3. i 4. listopad 2007.

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T.E.I. Thessaloniki Greece

UDC 338.48:504.03
Rewiev Received: 04.03.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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

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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.
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 2

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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
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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

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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 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

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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

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T.E.I. Thessaloniki Greece

UDC 338.486(498)
Rewiev Received: 25.09.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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

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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
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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;

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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.

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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
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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.

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T.E.I. Thessaloniki Greece

UDC 640.4:620.91](497.5)
Rewiev Received: 04.03.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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

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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

Vuk, B. et al., Energy in Croatia 2006, Ministry of Economy, Labour and Entrepreneurship of Republic of Croatia, 2007. 3 Vuk, B. et al., Energy in Croatia 2006, Ministry of Economy, Labour and Entrepreneurship of Republic of 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 Deng, S., Energy and water uses and their performance explanatory indicators in hotels in Hong Kong, Energy and Buildings, Vol. 35, 2000, 775-784 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

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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 Vuk, B. et al., Energy in Croatia 2006, Ministry of Economy, Labour and Entrepreneurship of Republic of 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

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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,
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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.

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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.

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.

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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
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.
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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
nt, S.; Soner, S., Energy efficiency assessment for the Antalya Region hotels in Turkey, Energy and Buildings, Vol.38, 2006, 964-971 EEA, Europe's environment; the fourth assessment, Office for Official Publications of the European Communities, 2007 25 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. 26 EEA, Europe's environment; the third assessment, Office for Official Publications of the European Communities, 2003.
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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 EEA, Europe's environment; the fourth assessment, Office for Official Publications of the European 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 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

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REFERENCES
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. 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 Deng, S., Energy and water uses and their performance explanatory indicators in hotels in Hong Kong, Energy and Buildings, Vol. 35, 2000, 775-784 Directive 2002/91/EC of the European Parliament and of the Council on the energy performance of buildings Directive 2006/32/EC of the European Parliament and of the Council on the energy end-use efficiency and energy services Directorate General for Energy and Transport, 2007., available at: http://ec.europa.eu/energy/demand/legislation/buildings_en.htm EEA, Europe's environment; the third assessment, Office for Official Publications of the European Communities, 2003. EEA, Europe's environment; the fourth assessment, Office for Official Publications of the European Communities, 2007. 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 Hrs Borkovic, Z., et. al. Guide to energy efficient building, Ministry of Environmental Protection, Physical Planning and Construction, Zagreb, 2005. IFEN, Tourisme, environnement, territoires: les indicateurs, Institut Franais de lEnivronnement, Les indicateurs - Edition 2000, France, 2000. 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. Khemiri, A., Hassairi, M., Development of energy efficiency improvement in the Tunisian hotel sector: a case study. Renewable Energy, Vol.30, 2005, 903-911 Kolega, V., et al., KUEN building Energy efficiency in buildings: Preliminary results and future activities, Energy institute Hrvoje Pozar, Zagreb, 1998. Krstulovic, V. et. al., Energy efficiency investement potentials in hotels on the Croatian coast, Energy institute Hrvoje Pozar, 2001. Official Gazette 79/2005 Technical regulation concerning heat energy savings and thermal protection Official Gazette 76/2007 Law on physical planning and construction nt, S.; Soner, S., Energy efficiency assessment for the Antalya Region hotels in Turkey, Energy and Buildings, Vol.38, 2006, 964-971 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. 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/tourismVuk, B. et al., Energy in Croatia 2006, Ministry of Economy, Labour and Entrepreneurship of Republic of Croatia, 2007. 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. 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

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T.E.I. Thessaloniki Greece

UDC 338.48:504.03
Preliminary communication Received: 21.05.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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.

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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
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available at: www.unwto.org

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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

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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.
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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

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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

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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
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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

Response

State

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
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available at: www.iso.org

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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

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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:
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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

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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
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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

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T.E.I. Thessaloniki Greece

UDC 640.4:658.8
Preliminary communication Received: 01.06.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism Management

USING THE LEARN MODEL TO RESOLVE GUEST COMPLAINTS


Vlado Galicic Slobodan Ivanovic
University of Rijeka, Croatia1
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

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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 3

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 Anic V., op.cit., p. 663. 6 Anic V., op.cit., p. 663.

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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.

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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)
9

Eiglier, P., Langeard, E., Marketing usluga, (translation), Vitagraf, Rijeka, 1999, p. 48.

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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).

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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!

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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 HIGH

RESPONSIBILITY

HIGH

SEVERITY

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
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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. 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. 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.

3.

4.

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.

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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.

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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.

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Tourism and Hospitality Management, Vol. 14, No. 2, pp. 251-262, 2008 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 Received: 17.01.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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.

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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).

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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.
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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
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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 Visual Appearance Ease of Use Fulfillment Navigability Accessibility Personalization Interactivity Information quality Description Site attractiveness, Aesthetics Logical structure Noticeable of special offerings Ease of navigation Server availability and downloading speed Existing of advanced search function and customization Use of multimedia in representing offering details 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
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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 Web design quality (on line travel agency) Visual Appearance (Attractiveness) Ease of use (Logical structure) Fulfillment Navigability Accessibility Personalization Interactivity Information quality Value 1 Value 2 Value 3

poor

average

Very well

unattractive

Like others

Strong eye appeal

unclear unobservable hard slow Non-existing Not exist poor

Table of content available With effort With patience unhelpful Only few adequate

Clear structure noticeable easy fast Easy to find Too many 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
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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.).
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Figure 1.: Doctus`s screen with Cases

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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 W eb d esign q V isual A p p eaE ase of use (L F ulfillm ent N av igab ility easy very w ell 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 w ell strong eye apclear structur available w ith effort poorly inattractive table of conteavailable hard average like others table of conteavailable w ith effort easy very w ell strong eye aptable of conteavailable poorly inattractive unclear unobservablehard average inattractive table of conteunobservablew ith effort very w ell like others unclear available w ith effort w ith effort very w ell strong eye apclear structur available average inattractive unclear unobservableeasy poorly like others table of conteunobservableeasy poorly inattractive unclear unobservablehard very w ell like others table of contenoticable hard average like others table of conteavailable hard average inattractive unclear available hard poorly like others table of conteavailable w ith effort poorly inattractive unclear unobservablehard easy average like others table of contenoticable poorly inattractive unclear available w ith effort very w ell strong eye apclear structur unobservablehard ith effort very w ell strong eye apclear structur unobservablew easy average like others table of contenoticable poorly inattractive unclear noticable hard very w ell strong eye apclear structur available easy poorly inattractive unclear unobservablehard average like others table of contenoticable w ith effort A ccessib ilityPersonalizatiInteractiv ity fast easy to find to m any slow unhelpful to m any slow nonex isting only few slow unhelpful not ex ist w ith patient unhelpful only few fast easy to find only few slow unhelpful not ex ist slow unhelpful not ex ist w ith patient easy to find to m any w ith patient unhelpful only few w ith patient unhelpful only few fast nonex isting only few fast easy to find to m any w ith patient nonex isting only few slow nonex isting only few slow nonex isting not ex ist slow unhelpful only few w ith patient easy to find only few w ith patient unhelpful only few w ith patient unhelpful not ex ist w ith patient unhelpful not ex ist fast easy to find to m any w ith patient unhelpful not ex ist w ith patient nonex isting to m any w ith patient unhelpful not ex ist fast easy to find only few slow nonex isting to m any w ith patient easy to find to m any fast unhelpful not ex ist slow nonex isting only few I nform ation 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

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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

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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. REFERENCES
Baracskai, Z.; Bevanda, V., Dorfler, V. (2002) Intelligent Customer Relationship Management (iCRM) by eFlow Intelligent Portal, 13th International Conference on Information and Intelligent Systems, Conference Proceedings, Varazdin, 173-180. Gonzales, M. F. J.; Palacianos, T. M. B. (2004) Quantitative evaluation of commercial web sites: an empirical studa of Spanish firms, International Journal of Information Management 24, 313-328, Available at: www.elsevier.com/locate/ijinfomgt, Accessed: 2007-10-22. Kaplanidou, K. &Vogt, C. (2006) A Structural Analysis of Destination Travel Intentions as a Function of Web Sites Features, Journal of Travel research 45 (2), 204-216. Lee, Y.; Kozar, K. A. (2006) Investigating the effect of website quality on e-business: An analytic hierarchy process (AHP) approach, Decision Support Systems 42, 1383-1401, Available at: www. Elsevier.com/locate/dss, Accessed: 2007-10-22. Magnini, V. P.; Honeycutt, E. D. Jr. and Hodge S.K. (2003) Data Mining for Hotel Firms: Use and Limitations, Cornell Hotel and Restaurant Administration Quarterly 2003; 44; 94, http://cqx.sagepub.com, Accessed: 2007-11-07.

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Tourism and Hospitality Management, Vol. 14, No. 2, pp. 251-262, 2008 V. Bevanda, J. Grzinic, E. Cervar: ANALYSING THE USERS` PERCEPTION OF WEB Martnez-Enrkez, A.M. & Eschalada-Imaz, G. (1998). The revision of inductive learning theory within incomplete and imprecise observations. Expert Systems with Application, 15, pp. 357-366. Available from: http://elsevier.com/locate/eswa. Accessed: 2000-06-03. Morgan, N.J. et al. (2001) Consumers, travel and technology: A bright future for the Web or television shopping? Journal of Vacation Marketing, 7(2): 110 - 124. oj:n Park, Y. A.; Gretzel, U. (2007) Success Factors for Destination Marketing Web Sites: A Qualitative MetaAnalysis, Journal of Travel Research, 46, 46. Available at: http://jtr.sagepub.com/cgi/ content/abstract/46/1/46, Accessed: 2007-11-05. Perkins, E. (2000) Online Travel, Microsoft Press; 1 edition. 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 implications for travel agencies, Journal of Vacation Marketing, Vol. 6, No. 4, 368-385, (2000).

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T.E.I. Thessaloniki Greece

UDC 338.48:620.91](4975)
Preliminary communication Received: 04.03.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism Management

RESTORABLE ENERGY SOURCES AS A FACTOR OF THE COMPETITIVE IMPROVEMENT ABILITY OF A TOURIST DESTINATION
Danijela Gracan Romina Alkier Radnic Sinisa Bogdan
University of Rijeka, Croatia1

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.

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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)

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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 (2007 09 14)
3

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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
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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)

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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
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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.).

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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)

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T.E.I. Thessaloniki Greece

UDC 338.486:658](497.5)
Preliminary communication Received: 01.09.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism Management

THE DEVELOPMENT DESIGN MODEL IN THE COMPETITIVENESS OF INTELLIGENT BUSINESS ORGANISATIONS


Christian Stipanovic Suzana Baresa
University of Rijeka, Croatia1
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.

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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.

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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.

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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.

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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.

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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.

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Table 1: New strategic orientations BPR BSC EFQM EPS ISO JIT CIP SMED TPM TQM
Source: Author

Business Process Reengineering Balanced Scorecard European Foundation for Quality Management European Production System International Organization for Standardization Just-In-Time-Production Continual Improvement Process Single Minute Exchange of Dies Total Production Maintenance Total Quality Management

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.
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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.

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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.

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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.

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T.E.I. Thessaloniki Greece

UDC 338.48:620.91](497.5)
Preliminary communication Received: 04.03.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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.

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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
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 2

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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 in 1000 2000 2003 2004 2005 2015* 30 858 35 246 35 991 37 292 40 238 By residents in 1000 4 224 4 263 4 240 4 172 4 507 as % of total 13,7 12,1 11,8 11,2 11,2 By non-residents in 1000 26 634 30 983 31 751 33 120 35 731 as % of total 86,3 87,9 88,2 88,8 88,8 Occupancy rate of bed places Annual average 25% 28% 28% 29% 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 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 11 Vuk, B. et al., Energy in Croatia 2006, Ministry of Economy, Labour and Entrepreneurship of Republic of Croatia, 2007.

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Table 2.: Electricity consumption related to foreign tourist


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

Year

2000 2003 2004 2005 2015*

*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,
EUROSTAT, Tourism Statistics 2007 edition, European Communities, 2007. 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 12

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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 16 17

IEA Bioenergy Task 37, http://www.iea-biogas.net/ Waste Management Plan, OJ 85/07 Waste Management Strategy OJ 130/05 18 Waste Management Plan, OJ 85/07 19 WIP: BiG>East- Biogas for Eastern Europe, Project number: EIE/07/214, duration 2007-2010.

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Figure 2.: Estimation of organic waste related to tourist overnight stays in Croatia in 2005
30000

25000

20000 tons 16 036 14 242

15000

14 067 12 493

10000

5000

0 min -1 min - 2 max - 1 tourists max -2 non-residents average -1 average -2

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 18000 16000 tons per tourists 14000 12000 10000 8000 6000 4000 2000 0 2005 - 1 2005 - 2 2015 - 1 2015 -2 14 067 17 302 16 036 15 178

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.
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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
RES-E generated from organic waste (tourists) GWh 2005 - 1 2005 - 2 2015 - 1 2015 - 2 11,35 12,94 12,23 13,96 Share of total electricity demand from tourists % of total tourist demand 1,47% 1,47% 1,36% 1,50% % of nonresidents demand 1,70% 1,67% 1,54% 1,69% Share in RES-E target

Year*

% 1,00% 1,14% 1,07% 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
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
20

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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 t 2005 - 1 2005 - 2 2015 - 1 2015 - 2 14 067 16 036 15 178 17 302 Annual subsidies from biogas produced 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

Annual cost of disposal min - 281 331 - 320 711 - 303 556 - 346 047

Year*

* 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 1,40 m 3 p e r in h a b ita n t 1,20 1,00 0,80 0,60 0,40 0,20 0,00 0.79 m3/inhabitant Croatian average

ka eb Za gr a -- z ko in s ap Kr Si sa

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 Waste Management Strategy for the Republic of Croatia, OJ 130/05

sk a os la va K a ka rl o va k Va Ko a ra pr iv n din i k s k Bj a elo o- kr i e va va rs ko k Pr im b il o go or sk rs k ogo Li r an s ko ka Vi -s ro en v it jsk i k oa po Po dr 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


Municipality

o-

ag

or

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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 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.

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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. Deng, S., Energy and water uses and their performance explanatory indicators in hotels in Hong Kong, Energy and Buildings, Vol. 35, 2000, 775-784 EEA, Europe's environment; the fourth assessment, Office for Official Publications of the European Communities, 2007 Energy Community Treaty, OJ 06/06 Energy Law, OJ 68/01, 177/04 EUROSTAT, Tourism Statistics 2007 edition, European Communities, 2007. IEA Bioenergy Task 37, http://www.iea-biogas.net/ 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. 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 Vuk, B. et al., Energy in Croatia 2006, Ministry of Economy, Labour and Entrepreneurship of Republic of Croatia, 2007. Waste Management Plan, OJ 85/07 Waste Management Strategy for the Republic of Croatia, OJ 130/05 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

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T.E.I. Thessaloniki Greece

UDC 640.4:620.91](497.7)
Preliminary communication Received: 04.03.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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

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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

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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
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(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).
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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.
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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.
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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


Oil/solar Oil Oil/solar Oil Oil Oil

Type of energy in kitchen

Cooling

Energy type

Sun collectors

Electric power agregates

Additional means for heating/ cooling


Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool

Other energy sources (also renewable)


non non non non non non

Milenium Granit Inex Gorica Park Metropol Belvi

53 119 125 92 120 180

non non non non non non

yes yes yes yes yes yes

Electric power/gas/ coal Electric power/gas Electric power/gas Electric power/gas Electric power/gas Electric power/gas

Air conditindable Air conditindable Air conditindable Air conditindable Air conditindable Air conditindable

Electric power, gas, oil, coal Elevtric power, gas, oil Electric power, gas, oil, solar Electric power, gas, oil Electric power, gas, oil Electric power, gas, oil

yes non yes non non non

yes yes yes yes yes yes

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(continued)
Hotels name in Ohrid
Desaret Belvedere Sonceva porta Donco Tino Dva bisera Garden Klimetica

Number Central Individual heating of rooms city heating with pump


300 60 15 49 30 11 32 45 non non non non non non non non yes yes yes yes yes yes yes yes

Energy types for heating /cooling


Oil Oil/solar Oil Oil Oil Oil/solar Oil Oil

Type of energy in kitchen


Electric power/gas Electric power/gas/ coal Electric power/gas Electric power/gas/co -al Electric power/gas/ solar energy Electric power/gas Electric power, gas Electric power, gas

Cooling

Energy type

Sun collectors

Electric power agregates

Additional means for heating/ cooling


Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool Yes, heaters heat/cool

Other energy sources (also renewable)


non non non non non non non non

Air conditindable Air conditindable Air conditindable Air conditindable Air conditindable Air conditindable Air conditindable Air conditindable

Electric power, gas, oil Electric power, gas, oil Electric power, gas, oil Electric power, gas, oil Electric power, gas, oil, solar Electric power, gas, oil, solar Electric power, gas, oil, Electric power, gas, oil

non yes non non yes yes non non

yes yes yes yes non yes yes yes

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In Table 4, aim for energy consumption and way for its gaining and supplying is given. Table 4.: Aim of energy consumption
Number of objects heated by heating pump 14 14 14 14 14

Aim of energy consumption Heating (MJ/m2) heating space Hot water (MJ/m2) Cooking (MJ/m2) Unheated energy (MJ/m2) Cooling (MJ/m2)

Central heated objects/individual heat Individual heating Individual heating Individual heating Individual heating Individual heating

No heated objects non non non non non

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.
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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

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T.E.I. Thessaloniki Greece

UDC665.334.9:338.48](497.5)
Preliminary communication Received: 04.03.2008

Institut for Economic

Promotion,
Austrian Economic Chamber, Vienna, Austria

Department of Tourism 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.

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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.

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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
900 185 30

Maximum
930 2.0 200 <0.5 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

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Water content Iodine number Pour point Cloud point

mg/kg mgJ2/100 g 0 C
0

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
Ester content Density Viscosity at 40 0C Flash point Sulphur content Carbon residue Cetane number Ash content Water content Total mechanical impurities Copper corrosion Acid number Iodine number Saponification value Methanol content Phosphorous content Pour point Filterability

Unit
% (m/m) Kg/m3 mm2/s 0 C mg/kg % (m/m) % (m/m) mg/kg mg/kg rating mgKOH/g mgJ2/100g mgKOH/g % (m/m) mg/kg 0 C
0

Minimum
96.5 860 3.5 120 51.0

Maximum
900 5.0 10 0.30 0.02 500 24 1 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

150

Source: Internal data of the biodiesel plant Modibit d.o.o. in Ozalj.

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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 Country
Germany France Italy Czech Republic Poland Austria Slovakia Spain Denmark Great Britain Slovenia Estonia Latonia Lithuania Greece Malta Belgium Cyprus Portugal Sweden Total

Capacities in 000 tons 2004


1903 532 827 188 100 125 89 100 81 129 17 10 10 5 35 2 55 2 6 12 4228

2004
1035 348 320 60 0 57 15 13 70 9 0 0 5 0 0 0 0 0 0 1.4 1933.4

2005
1669 492 396 133 100 85 78 73 71 51 8 7 7 5 3 2 1 1 1 1 3184

2005
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.

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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 5

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.

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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

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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 Diesel Biodiesel Price difference
Source: www.ufop.de

Price /litre 1.0853 1.0095 0.0758

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.

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Table 5. Properties of diesel and biodiesel per standards


Property
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)

Diesel (EN590)
0.82-0.86 2.0-4.5 0.2 0.01 200 0.3 Class 1 >45 -

Biodiesel (DIN 51606)


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

Biodiesel (EN 14214)


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
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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

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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

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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 Papers are subject to the anonymous judgement of and classification in one of the following categories by two independent referees: Original scientific papers, Preliminary communications, Subject reviews, Conference papers, Technical papers. Papers without positive classification of the referees will not be published in the journal Tourism and Hospitality Management. Manuscripts (text with all supplements) should be written in the English language using Microsoft Word, and submitted by e-mail (plus one printed version). English language cited references are also recommended. The scope of submitted text should not exceed more than 30 000 characters (15 pages), which are typed according to the below instructions. Text should be written in neuter gender, concisely and in correct orthography. The author is responsible for language-edit. Emphasis should be on results, their interpretations and conclusions, and for already known data, experimental methods and apparatus, sources should be mentioned. Text: Font: Times New Roman, size 10; Line spacing: single; Use A4 Format (297x210 mm); Page Setup: Margins: top 5 cm, bottom 5 cm, left 4.4 cm, right 4.2 cm, gutter 0 cm (Layout: header 4 cm, footer 4 cm). Manuscript should be arranged in the following order of presentation. First sheet: Authors name (the name and surname of all authors), their titles, name and full addresses of their institutions, full postal address, telephone and fax numbers, e-mail address. Title of the paper should be concise and informative and written in English language. Abstract and keywords: Abstract written in English language (between 100 and 150 words with 4-6 keywords pertinent to the central theme). Second sheet: Title, Abstract and keywords, main body of text, list of references. Introduction, conclusion and list of references are not marked by numbers. References: In the text references must me included using Harvard system author-date system of citation e.g. (Jackson 2004, 176) or (Jackson and Miller 2005, 26). If the paper is signed by more than two authors, the abbreviation et al. must be placed after the family name of the first author, e.g. (Pentek et al. 2004). If several papers by the same author and from the same year are cited, a, b, c, ect. should be put after the year of publication. The Reference should be listed in full at the end of the text, in alphabetical order of authors. Examples: Journal article:
Fine, M. A., & Kurdek, L. A. (1993). Reflections on determining authorship credit and authorship order on faculty-student collaborations. American Psychologist, 48, 11411147.

Book:
Nicol, A. A. M., & Pexman, P. M. (1999). Presenting your findings: A practical guide for creating tables. Washington, DC: American Psychological Association.

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 ENVIROMENTAL PROTECTION KEY PREREQUISITE FOR SUSTAINABLE TOURISM ON MEDITERRANEAN Dobrica Jovicic, Vanja Ivanovic USING THE LEARN MODEL TO RESOLVE GUSET COMPLAINTS Vlado Galicic, Slobodan Ivanovic ANALYSING THE USRES PERCEPTION OF WEB DESIGN QUALITY BY DATA MINING TOOLS Vanja Bevanda, Jasmina Grzinic, Emanuel Cervar RESTORABLE ENERGY SOURCES AS A FACTOR OF COMPETITIVE IMPROVEMENT ABILITY OF A TOURIST DESTINATION Danijela Gracan, Romina Alkier Radnic, Sinisa Bogdan THE DEVELOPMNET DESING MODEL IN THE COMPETITIVNESS OF INTELLIGENTE BUSINESS ORGANIZATIONS Christian Stipanovic, Suzana Baresa TOURISM AS A PATHWAY FOR RES UTILISATION Biljana Kulisic, Margareta Zidar, Branka Jelavic, Julije Domac, Velimir Segon ENERGY CONSUPTION IN HOTEL INDUSTRY CASE STUDY IN OHRID Gordana Petroska Reckoska, Risto Reckoski, Angela Vasileska 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 CHALLENGES BEFORE THE ACHIEVEMENT OF A SUSTAINABLE CULTURAL TOURISM Milena Filipova IMPORTANCE OF INTELLIGENT ROOMS FOR ENERGY SAVINGS IN THE HOTEL INDUSTRY Marinela Krstinic Nizic, Goran Karanovic, Sasa Ivanovic ENVIROMENTAL PROTECTION AS A FUNDAMENTAL PART IN TOURISM DEVELOPMENT AND INSURANCE INDUSTRY COMMITMENT TO SUPPORTING IT Larisa Vasileska, Katerina Angeleska-Nadjeska GREEN MARKETING: A NEW CHALLENGE FOR ROMANIAN ORGANIZATIONS Andreea Mutean, Filimon Stretman ENERGY AUDIT METHOD FOR ENERGY CONSERVATION IN HOTELS Zeljka Hrs Borkovic, Biljana Kulisic, Margareta Zidar 217 229 241 251 263

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281 291 301

311 323 337

343 349 359

Reviewers

T.E.I. Thessaloniki Greece

Institut for Economic Promotion, Austrian Economic Chamber, Vienna, Austria

Department of Tourism Management

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