Objectives of assessment Context of policy Development on national level

1. Assessment of tourism development with respect to territorial cohesionPál Szabó PhD. (Pannon.Elemző Kft.)

2. Content • Objectives of assessment • Context of policy • Development on national level • Development of Health Tourism in Eastern Hungary • Development of the Lake Balaton Resort Area (LBRA)

3. Objectives of Assesment • Viewpoints of assessment (cohesion): • Assessment of development objectives • Assessment of developments • Assessment of development actors • Suggestions • 7 Regional Operative Programme (ROP) • Tourism development: touristic attractions, accomodation, touristic destination management (TDM) • 2724 applications, 983 successful applications • financial framework: 300 billion HUF, demand: about 407 billion HUF, • awarded amount: about 213 billion HUF (08.2012) • Three dimensions of assessment: • national level • health tourism in Eastern Hungary • Lake Balaton Resort Area

4. Context of Policy • Hungarian Tourism Act is not accepted yet • the new Hungarian tourism development strategy • the new National and Regional Development Plan: importance of tourism development, priority for health tourism Cohesion of objectives

5. National level – ROP touristic development 1 The objectives of ROP are identical with the tourism development objectives of Hungary Seven ROP – toruism development objectives : • vertical and horizontal cohesion among the objectives • main sector preferences: cultural t., health t., etc. • quality accomodation, increasing the number of TDMs – common objectives • weak regional / local preferences • various vertical and horizontal coordinations • important to clarify the national strategy • need to strengthen the vertical partnership(planning, management) • need for spatial aspects of tourism development objectives

6. National level – ROP touristic development 2 Share of resources for tourism development measures : • Attraction development (about 75%) • Accomodation development (about 20%) • TDM (about 5%) Regional differences in the share of tourism support

7. National level – ROP touristic development 3 • Attraction development: • dominance of cultural, health and (!) ecotourism • few projects: territorially complex projects, complex experience • need to define, need for support • there was no prominent attraction development • need for prominent attraction development • less new developments, more further developments of existing attractions • enhancing project generation, promoting innovations • spatial aspects were not always applied • enforcing territorial cohesion (e.g. evaluation of applications -spatial perspective)

8. National level – ROP touristic development 4 Accomodation development: - quality, in accordance with national objectives • one-sided, market tension • important: ex-ante evaluation - territorial concentration is unchanged • new developments: serious professional reasons; connected to tourist attractions - need for own resources - territorial differences • enforcing spatial aspects (regional, local) • territorial cohesion: coordination of attraction and accomodation development

9. National level – ROP touristic development 5 Touristic Destination Management (TDM): - increasing the number of TDMs, according to national objectives - some problems in the developmentprocess but the system became operational (registration etc.) - littlesupport but positive and perspective direction - established: in traditional touristic areas, antecedents - many questions: financing, the role of local authorities • need for legal clarification • enhancing: project generation

10. National level – development actors • most support – enterprises (about half of theapplications); local governments, state organizations: priority projects • local governments – contractor or regulator?; profit orstoring value?; local, territorial effects of developments • 10% of project owners withdrew – effect of the crisis (?) • weak horizontal partnership (lack of relationships, lack of confidence, individual interests,lack of organizing force etc.) – supportmotivates... • appreciation: TDMs • applications for specific groups • support for multi-party projects

11. National level - Financial Sustainability Critical element • faulty project planning (form, location, demand estimates) - the number of visitors is less than expected • sometimes rigidappraisal rules of tenders, selection criteria (slippage of projects) • effects of economic crisis! • required: more realistic estimation of demand • need for a flexible, but rigorous application evaluation system

12. Development of Health Tourism in Eastern Hungary Health Tourism in Eastern Hungary: • 205 applications, 31 billion HUF • 45 attractions, 26 accomodation, 3 TDM • territorial concentrations • Health Tourism: along strategy, but differences, problems • synergy: transport, urban regeneration, health development

13. Development of Health Tourism in Eastern Hungary- Spas Nyíregyháza Bogács Balmazújváros Mezőkövesd Berettyóújfalu Cserkeszőlő Makó Mórahalom

14. Development of Health Tourism in Eastern Hungary- Results • Spa development – local survey (8): • about 8.5 billion HUF (EU support: 4.1 billion HUF) • - new spa (Makó), renovation, expansion, waterparks • high quality development • related developments in the settlements • (not qualified medical sites yet; further development related to local destinations) • failure of accomodation development • variable number of visitors; time concentration slightly resolved • competition for domestic guests; what about foreigners? • project is considered a success locally: confidence • return of investment?

15. Development of Health Tourism in Eastern Hungary- Suggestions • health tourism means more than creating a spa • stronger cooperation with health development • clarification: private and public health care • quality assurance (therapeutic effect), accreditation! • development of the classification system • support of the therapy place (complex medical forms and supporting units etc.) • territorial harmony (spatial dispersion /similar profiles/ -concentration /other profiles/; related accommodation -appropriate standard; fit in the environment etc.)

16. Development of the Lake Balaton Resort Area - Characteristics Lake Balaton Resort Area (touristic region) • 179 settlements • 274 000 inhabitants, 240 000 holiday home owners • 20% of guest nights (4,3 million) • priority in development planning (legislations) But! • fragmented developments (in 3 regions and 3 ROPs) • Lake Balaton Development Council (LBDC) its role as a coordinator!

17. Development of the Lake Balaton Resort Area - Objectives, tools 1 Objectives: - extension of the season - reducing territorial concentration - strengthening quality tourism - sustainable tourism • Developments: • 381 applications • 153 successful applications • 18 billion HUF support • - little touristic support, fragmented, but emphasized in ROPs • - successful applications, low-volume, results are small - complex developments are not typical - horizontal partnerships are not really enforced

18. Development of the Lake Balaton Resort Area - Objectives, tools 2 Attractions: cultural, holiday, water tourism – extension of the season (as well) Accomodation: quality development, but of low-volume, support is important, private accomodation left behind TDM (28% of the total in Hungary): antecedents, varied output, successful Related developments: transport infrastructure developed, but there are deficiencies - extension of the season opening period is effective - territorial concentration did not decrease - quality tourism became more significant

19. Development of the Lake Balaton Resort Area - Projects éééé

20. Development of the Lake Balaton Resort Area - Projects, results Eight attraction developments – local survey: • objective: extension of the season • good project ideas • new / further development • preliminary market survey (demand, competitors) • fit into strategy • usually good developments • new ones - visitors • varied communication • good accessibility • appropriate related infrastructure • varied connections with other developments • fit into environment • varied (bad) connections with competitors

21. Development of the Lake Balaton Resort Area - Suggestions • special status is to be taken into account • support according to touristic importance • support for featured attractions • integrated tourism development in the region • strenghten the coordination of developments (LBDC) • project generation • developments: seasonal and season extension • reducing territorial concentration, complex projects (connecting coastal and interior developments) • quantity and quality tourism (e.g. private accomodation) • transport development • marketing

22. Thank you for your attention!