EUROCHAMBRES “PARTNERS FOR INVESTMENT PROMOTION” PARTNERSHIP II Serbian – Bosnian Spa Adventure

1. EUROCHAMBRES“PARTNERS FOR INVESTMENT PROMOTION”PARTNERSHIP IISerbian – Bosnian Spa Adventure

2. West Balkan Partners CCI Kikinda, Srb PK USK Bihac, BiH CCI Leskovac, Srb CCI Pančevo, Srb CCI Zaječar, Srb CCI Zrenjanin, Srb EU Partners Promofirenze, Firenze Italy SOPK Trenčin, Slovakia Serbian – Bosnian Spa Adventure

3. Project ideas • The objective of the project is establishing cooperation, raising the existing tourism offer to higher level and creating investment opportunities in tourism in the partners areasin Serbia and in Bosnia and Herzegovina • The main focus will be on SPA tourism offer to be enhanced and promoted as thermal-wellness tourism, as well as other new tourist sectors

4. All regions have strong tourism potential: • Rural, manifestation, spa and wellness tourism • Potentials for aqua parks in Banat and Tisa Area (Serbia) • Mountain and fishing-rafting tourism on the Una River in Bihac and Unsko-Sanski canton (Bosnia).

5. FDI in North Banat and Tisa Area 300.000.000 € have been invested in Serbia, Including local investments between 2002 and 2008 Structure of investments by countries Slovenia Austria Domestic Japan Italy USA France Croatia Germany Israel

6. Investment opportunities in CCI Kikinda spa tourism New programs mean new philosophy fordevelopment of wellness tourism. Kanjiza Spa (Banja Kanjiza) have aplan for aqua parkwith Municipality of Kanjiza. Aqua park could be part of existence spa centere with hotels: Kanjiza Spa, Aqua marin and Lupus.More than 50 % tourists are now financing by Serbian Health Foundand it isn’t enough profitable, the target will be changed in wellness costumers. The building of Aqua Park with sports and kids play grounds could be coast about5,5 million euros, it will bechance for all tourism in North Banat and Potisje Area

7. Tourism Development Plan for Jablanica and Pcinja Districts The Tourism Strategy surveyed the anticipated hotel investment up to 2015 and concluded that 70% of hotels planned to invest. The largest proportion (80%) was from the South East region with Belgrade coming a close second (79%).In the South East 63% of hotels were looking to rebuild their Structures. Average investment per hotel was estimated to be € 1, 4 million over ten years or € 13,800 per room.As a general rule hotel managers intended to improve the category of rooms or increase the capacity, but not change the market positioning.Most investment (75%) was planned by 2008. Vlasina Lake was outlined as a key investment project as well the rehabilitation of existing SPAs.

8. FDI Stocks in Bosnia Herzegovina • Central Bank (CBBH) introduced in 2004 regular quarterly and annual surveys of foreign investment in the country. • As reflected in these data, the long tradition and international reputation of BiH manufacturing companies has played an important role in encouraging the interest of foreign investors. • While the banking sector, which has been completely reformed, has proved especially attractive to investors seeking new market opportunities.

9. FDI Stocks by Country, May 1994 - December 2007

10. FDI Stocks by Sectors,May 1994 - Dec 2007

11. PROJECT DEVELOPMENT • SWOT ANALYSIS • MAIN ACTIVITIES AND TIME-FRAME • EXPECTED RESULTS • PROJECT PROMOTION AND VISIBILITY

12. SWOT ANALYSIS OF INVOLVED SERBIAN & BOSNIAN REGIONS • STRENGTH • Strong natural potential (spas, nature) • Existing tradition of providing services to certain foreign clients (from Germany, Slovakia etc.) • Available human potential after undergoing restructuralisation of industry • Tradition of fairs • WEAKNESS • Old existing infrastructure • Missing global mapping and targeting of tourist offer • Deficit of infrastructure and transports for new kind of services • Not legislative environment for privatisation in spa area • Undeveloped private sector in field of services for tourism • Lack of knowledge’s and practices in new tourism management • Underfinanced sector • Not available tourist attraction of new character (adrenaline sports,…)

13. SWOT ANALYSIS OF INVOLVED SERBIAN & BOSNIAN REGIONS • OPPORTUNITIES • Increscent of number of visitors through promotion in new countries (Slovakia, Italy) • increase of attractiveness thorough modernisation of existing facilities • new sort of clients by applying modern practices of marketing (like clients from Islamic countries) • introduction of national system for FDI attraction (incentives, rule of law, transparency) • Pro active role of the involved Chambers of commerce as mediator for regional governments, municipalities and private sector (home as represent of demand side) and financial sector abroad ( as represent at offer side) • Start up partnerships activities • THREATS • Lack of will for transformation of existing ownership relation (privatisation, PPP…) • Long global crisis decrease interest for investing, travailing, • Low income level of native population not interested in paying for tourist services . • Not stabile political and social environment

14. The project will go through 4 main strategic lines: • Institutional network strengthen implementation and sensibilization of the involved territory • Rating of the Territory, market research and identification of priority market potential • Training activities service addressed to specialized staff that will be in charge to manage, promote and develop the sector • Tourist destination promotion, investments research and assistance through different channels

15. ACTIVITIES • Institutional network strengthen implementation and sensibilization of the involved territory(15 Nov – 15 Jan) • Project concept realization and strategies comparison • E-mail Exchange with all partners • Action Plan Redaction • Budget proposal and supervision • Co-ordination and organization of Inception Visit in Kikinda • 24-25 November - Inception visit and two days round table in Kikinda among all partners • 26-30 November 2008 - Follow-up Inception Visit and presentation of the project to Eurochambres • 4-5 December 2008 Kick Off meeting and project presentation

16. ACTIVITIES • 2. Rating of the Territory, market research and identification of priority market potential (15 Dec – 15 Feb) • Inventory of tourist associations • Inventory of tourist potential attraction • Inventory of existing structures • Inventory of potential investment opportunities (according to natural surrounding) • Inventory of public incentives and grants • Inspection visit to best Serbian and Bosnian tourist structure by the staff of Promofirenze and Trencin, in order to understand and evaluate real needs and potential, and thus strengthen relationships and networking strategy. Promofirenze will dedicate attention to SPA realities, Trencin to the sportive and mountain tourism offer

17. ACTIVITIES • 3. Training activities service addressed to specialized staff that will be in charge to manage, promote and develop the sector (15 Feb – 15 Sept) • Organization of the material for expertise seminars following needs of Western Balkan staff involved • Invitation of local Italian and Slovakian personalities representing remarkable experiences in tourist sectors • Organization of inspection visit to selected Italian and Slovakian tourist structures • - 1st Performing Study Seminar and Visit in Florence (March 2009) – mainly focused on SPA and agro - rural tourism; • 2nd Performing Study Seminar and Visit in Trencin Region (May-June 2009) – mainly focused on sports tourism, mountain tourism); • - 3rd Seminar in Bihac (3rd – 6th Sept 2009) during the jointly participation to ECO-Fair

18. ACTIVITIES • 4. Tourist destination promotion, investments research and assistance through different channels (June ‘09 – Sept ‘09) • Capacity building transfer and assistance for promotional material concept and realization ( Serbian and English version) • Selection and organization of the tourist offer to be promoted • Promotional printed material realization • Implementation of Chambers of Commerce Web Sites • Presentation and dissemination of the promotional offer • Selection of fairs and events to participate jointly (ECO-Fair in Bihach – 3/6 Sept2009) • Market promotion through Italian and Slovakian Chamber of Commerce main promotional channels

19. EXPECTED RESULTS • Support the main strategy of the project through the creation of an institutional network, economical connections, information exchange, rational, global and homogeneous tourist offer promotion. • Inventory of tourist associations and agencies, attractions and accommodations, tourist flows analysis, destination target analysis, tourist trends study, structures classification, quality standard definition, as well as new promotional plan and project presentation and involvement of public and private bodies, and tourist structures. • Capacity building and know how transfer, expert staff creation, tourist strategy benchmarking, acquisition of new active role for the Chamber of Commerce in tourism management, promotion and long term vision and planning. • Creation and dissemination of global and homogeneous promotional material related to Western Balkan best tourist offer, English version of all promotional material realization.

20. PROJECT PROMOTION AND VISIBILITY NETWORKING STRATEGY SERBIAN BOSNIAN SPA ADVENTURE PROMOTION THROUGH ITALIAN AND SLOVAKIAN CCI PROMOTIONAL PRINTED MATERIAL

21. THANK YOU! • Promofirenze – Special Agency of the Chamber of Commerce of Florence • Via Castello D’Altafronte, 11 – 50122 Florence – Italy • Ms. Carlotta Viviani (carlotta.viviani@promofirenze.com – Ph. +39 055 2671632) • Kikinda Regional CCI and Serbian partners ( CCI Zrenjanin, Pancevo, Zajecar, Leskovac) Mr. Sasa Tanackov (sasa.tanackov@komora.net– Ph. +381 23021080) • Chamber of Economy of Una Sana Canton, Bihac • Mr. Nihad Susnjar (pkusk@bih.net.ba - Ph. +387 37227762)