Sound and robust frameworks are essential for the tourism sector to drive positive economic development, enhance competitiveness, and strengthen resilience within economies, particularly those heavily reliant on tourism. This chapter assesses the comprehensiveness of the legislative structure and practices governing tourism across three sub-dimensions. The first sub-dimension, governance and enabling conditions, assesses the effectiveness of efforts aimed at strengthening strategic co-ordination and co-operation in tourism across governance, vertical co-operation, public-private dialogue, and data collection. The second sub-dimension centred on accessibility, tourism offer and human resources, examines progress and challenges in addressing the sector’s connectivity framework and infrastructure, accommodation capacity and quality, and availability of qualified workforce. The third sub-dimension, sustainable and competitive tourism, explores the impact of tourism branding and marketing strategies, natural and cultural heritage valorisation frameworks, and operations promoting sustainable development.
Western Balkans Competitiveness Outlook 2024: Bosnia and Herzegovina
16. Tourism policy
Abstract
Key findings
Bosnia and Herzegovina (BiH) exhibits little progress in tourism policy, achieving an overall score of 1.3 in the CO 2024 assessment, a score substantially lower than the WB6 average (Table 16.1). While there has been some advancement in accessibility, the tourism offer, and human resources since the CO 2021 assessment, particularly with regard to the accommodation framework and the needs assessment for the availability of a qualified workforce, progress remains limited. Moderate advances in governance and framework conditions have been made due to improvements in tourism strategies, public-private partnerships and data collection.
Table 16.1. Bosnia and Herzegovina’s scores for tourism policy
The key findings are:
The surge in tourism in BiH has prompted efforts to reinforce the strategic frameworks within the sector, with both entities enhancing their respective strategies. In September 2023, the House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina (FBiH) approved a new Strategy for Tourism Development 2022-27, while RS unveiled its own strategy for tourism development covering 2021-27, delineating strategic priorities and objectives. However, successful implementation of these new strategies will require robust monitoring mechanisms, commitment from leadership at the highest levels, and allocation of adequate resources.
At the national level, BiH does not currently have an established public-private partnership model. However, promising examples at the destination level, such as the Unasava or Herzegovina tourism clusters, present pathways for collaboration between the public and private sectors.
Natural and cultural heritage feature prominently in the tourism strategies of Republika Srpska (RS) and the FBiH, strongly emphasising preservation. RS prioritises management plans for protected areas and cultural sites such as Kozara National Park and Sutjeska National Park, while the FBiH focuses on sustainability and conserving cultural, historical, and natural values.
Efforts to modernise data collection have been witnessed at both state and entity levels, with varying degrees of progress. However, several limitations, particularly technological constraints, remain significant obstacles to impactful and informed decision making. An overhaul of the current data collection platforms, incorporating interactive options, would benefit the sector.
The FBiH has launched initiatives to anticipate human resource needs and bridge skill gaps. In conjunction with the development of its tourism strategy, the United States Agency for International Development (USAID)’s tourism project conducted an assessment and forecast of human resource needs in tourism spanning for 2021-27, analysing employment and training requirements in the tourism sector as well as an evaluation of tourism education and training.
FBiH has an established tourism brand identity with recognised tourist brands, including the Sarajevo Film Festival, Herzegovina Wine Route, and Via Dinarica. A formal marketing co‑ordination body is in place, with the Tourist Organisation of RS (TORS) responsible for tourism branding and marketing. At the state level, the economy does not have an established tourism brand identity that is well articulated and maintained.
Digital marketing, an important part of FBiH’s tourism development strategy, focuses on digital transformation. Challenges include inadequate digital infrastructure, lack of skills, stakeholder resistance, high costs, unequal access to technology and limited training in digital marketing.
State of play and key developments
BiH’s tourism sector is experiencing a dynamic period, with the industry growing significantly over the past ten years. Most notably, in 2022, tourism contributed to the economy’s GDP, both directly and indirectly, accounting for 7.4% or BAM 377.1 million (EUR 192.8 million). Forecasts for 2023 point to a potential increase to 7.7%, underlining the sector's important role in the national economy. Spending by international visitors totalled BAM 2 120 million (EUR 1 083 million) in 2022. The tourism sector employed 83 900 individuals in 2022, representing 10% of total jobs, including jobs indirectly supported by the industry. Projections for 2023 suggest an increase to 10.1%, reflecting the sector's role in offering livelihoods (WTTC, 2023).
In 2022, BiH recorded 3 194 681 overnight stays, with international tourists accounting for 61.2% of arrivals, particularly during the summer months (see Figure 16.1), with an average length of stay per tourist calculated at 2.18 nights (Agency for Statistics of Bosnia and Herzegovina, 2023[1]). As shown in Figure 16.1, BiH exhibits a more evenly distributed seasonal pattern of arrivals compared to other Western Balkan economies (WB6), with increased arrivals both preceding and following the summer season. In the World Economic Forum's 2022 report, BiH’s seasonality indicator ranks it 91st out of 117 economies, second only to Serbia (76), while Montenegro (106) and Albania (108) trail behind BiH (World Economic Forum, 2022[2]). The number of accommodation establishments, available rooms, and guest beds in hotels and similar facilities experienced notable increases from 2021 to 2022, alongside significant growth in room and bed occupancy rates (World Economic Forum, 2022[2]). Parallel to this growth, the occupancy rate of rooms increased from 17.4% in 2021 to 30.0% in 2022 and that of beds from 21.3% in the previous year to 23.0% in 2022 (World Tourism Organisation, 2023[3]).
Figure 16.1. Arrivals and overnight stays in accommodation establishments by international and domestic tourists (2019-22) and seasonal distribution of arrivals (2022) in Bosnia and Herzegovina
Stays and arrivals are expressed in millions (left); seasonal arrivals are expressed in thousands (right)
Source: BHAS (2024[4]).
Sub-dimension 15.1: Governance and enabling conditions
Given the decentralised nature of the economy and the high degree of autonomy entities possess in setting policies, regulations and institutions, the economy has established a tailored framework for tourism governance. At the state level, the tourism department, operating within the Ministry of Foreign Trade and Economic Relations of BiH (MoFTER), co-ordinates the activities and harmonises the plans with both entity authorities and international tourism institutions. Meanwhile, at the entity level, the Ministry of Environment and Tourism of FBiH, the Ministry of Trade and Tourism of the RS and the Department of Economic Development, Sports and Culture of Brčko District are responsible for the legal framework, adoption of the tourism strategy, and overall development.
Furthermore, to enhance the co-ordination among lower levels of government, under the supervision of MoFTER, a tourism working group has been formed, comprising representatives of the MoFTER, the Federal Ministry for Environment and Tourism, the Ministry of Trade and Tourism of the Government of RS, and the Foreign Trade Chamber of BiH (Center of Excellence for Evaluation and Policy, 2022[5]). As of 2023, tourism in the Brčko District is managed by the Tourist Organization of Brčko District of BiH rather than the Department of Economic Development, Sports, and Culture. Although there are some initiatives to enhance co-ordination vertically in place, there is no official state-level interministerial body. This horizontal gap at the state level might hinder the prioritisation of initiatives to attract investment and promote innovation in tourism. BiH's tourism sector faces a highly fragmented governance structure, which is costly and inefficient. This complicated setup leads to slow economic transformation and creates an unfavourable environment for the business sector (World Bank, 2020[6]). According to the World Economic Forum (World Economic Forum, 2022[2]), BiH ranks an extremely low 111th out of 117 economies in terms of government spending on travel and tourism, between North Macedonia (105th) and Serbia (116th) (World Economic Forum, 2022[2]).
In BiH, the governance framework and strategic approach are primarily defined at the entity level rather than through an overarching national strategy. In the FBiH, a Tourism Development Strategy 2022-27,1 developed in collaboration with USAID, outlines strategic priorities and objectives and has been approved by parliament. An Action Plan for the implementation of the 2023-26 Cultural Policy Strategy is also in progress, although its adoption is not yet foreseeable. Other positive progress includes the adoption of the Tourism Development Strategy for 2021-27 in RS, which aims to connect tourism with other sectors of the economy, foster and boost new investments, provide access to finance through private-public partnerships and create further employment. The strategy aims to achieve several key targets by 2027, including a 20% increase in tourism's contribution to nominal GDP; a 20% rise in overnight arrivals compared to the 2019 baseline, extending the average length of stay to 3 nights; boosting domestic and foreign investment by 15% annually; expanding protected areas to cover 15% of RS territory; and generating 6 010 new full-time jobs to enhance employment (USAID, 2021[7]). Furthermore, monitoring mechanisms for its implementation are currently in place, focusing on the effectiveness and efficiency of the planned measures and priorities. Challenges persist in effectively implementing its promising mandate due to issues like the absence of a dedicated department or interministerial body, limited commitment from top officials, and inadequate resources. Furthermore, the lack of integration with trade policy and innovation initiatives and gaps in visitor management, climate adaptation, and risk mitigation demand attention. This is particularly the case in RS, where capacity issues, insufficient government ownership, and the lack of integration of tourism policy into broader strategies exacerbate challenges in implementing visitor management, climate adaptation, and risk mitigation measures.
Positive developments can be seen in the FBiH by introducing a new strategy. The Tourism Development Strategy for 2022-27 was officially adopted in 2023 by both the House of Representatives of the FBiH Parliament and the House of Peoples. The implementation process of the strategy, including a draft Action Plan, is currently under way and nearing completion. This strategic document clearly defines the priorities: the development of tourism products, the marketing of destinations and human resources, and the improvement of framework conditions for sustainable tourism development. It includes clear guidelines for continuous monitoring to assess relevance, coherence, compliance, and effectiveness throughout implementation. Nevertheless, challenges still need to be tackled, including the lack of a dedicated tourism organisation, robust co‑operation channels, frameworks for green investment, innovation, comprehensive monitoring, and climate resilience strategies for sustainable tourism development. In 2022, efforts were made to promote and support investments in tourism in the FBiH. In accordance with the decision of the FBiH Government, funding was approved by the Chamber of Commerce for the programme "Improving and increasing the attractiveness of FBiH as an outstanding tourist destination", to mitigate the impact of COVID-19 on the tourism sector.
Vertical co-operation and information sharing in the field of tourism administration in BiH at state level remain notably underdeveloped. Major challenges include the lack of a planning framework for destination management structures and limited progress in co-ordination between tourism administrations. BiH has yet to create a destination management planning framework; promote co‑operation among tourism administrations; establish a formal vertical co-ordination body; invest in a comprehensive tourism information system; or introduce robust monitoring mechanisms – all of which thwart opportunities for a more integrated and visitor-friendly tourism landscape.
In RS, vertical co-operation and information sharing in tourism administration have seen both progress and challenges. Despite the absence of a planning framework for destination management structures, there have been notable improvements in co-ordination between tourism administrations, particularly at the local and regional level. However, many hurdles are yet to be overcome due to persistent issues, including the lack of a formal vertical co-ordination body for tourism, limited resources, the limited involvement of local communities, and limited use of local tourism strategies and public-private co‑operation mechanisms. Additionally, lack of implementation of a comprehensive tourism information system, monitoring mechanisms and independent evaluation studies is currently hindering the potential to establish a well-co-ordinated and informative tourism landscape.
In the FBiH, while the absence of a planning framework persists, the engagement of local municipalities and regional authorities in the national tourism strategy is a positive development. Improvements include the inclusion of local and regional tourism strategies in the national plan and notable co-operation between the public and private sectors. However, the FBiH still grapples with challenges such as the lack of an official vertical co-ordination body for tourism, limited crisis management plans, and lack of mechanisms for public-private co-operation. Clear deficiencies are also evident in the development of comprehensive tourism information systems, monitoring mechanisms, and complementary independent studies on information quality, all of which are necessary for a more integrated and informative framework for tourism.
In BiH, public-private dialogue in the tourism sector is characterised by the commitment of private sector representatives who are actively involved through a number of state initiatives notably centred around issues related to hotels, restaurants and trade. Limited evidence of clear progress can be observed at the state level, particularly concerning the absence of a formal tourism management and co-ordination body at the national level that includes representation from the private sector, highlighting a significant gap. That absence poses a potential risk to strengthening dialogue and improved co-operation, as does underdeveloped monitoring mechanisms.
In RS, public-private dialogue in tourism is associated with active representation from the private sector, particularly from hotel and restaurant businesses and the Chamber of Commerce. The private sector appears nonetheless restricted to advisory roles, as it lacks considerable formal decision-making authority. This has been evident in the development of the national tourism strategy, where the private sector has not been assigned a formalised role; its contribution is limited in shaping the tourism sector. Similarly, progress in public-private dialogue seems to be stunted by various shortcomings, such as again the lack of a formal tourism management and co-ordination body involving the private sector, insufficient structures for public involvement in destination planning, and an underdeveloped model for public-private partnerships.
In the FBiH, the dialogue between the public and private sectors in the field of tourism is solid and the private sector is strongly represented in the national tourism strategy across different areas and associations. As such, the 2022-27 Tourism Development Strategy of the FBiH was developed in consultation with the private sector, the academic community, and local communities. This partnership, known as the Coalition for the Competitiveness of Tourism , engaged over 150 stakeholders from ten cantons through meetings, focus groups, surveys, and consultations to address key challenges and opportunities in the tourism sector. However, challenges persist in establishing a comprehensive and effective public-private dialogue in the tourism sector in FBiH due to several factors, including the absence of a comprehensive tourism framework that integrates education and civil society, limited mechanisms for public engagement at the destination level, the lack of a model for public-private partnerships, and underdeveloped monitoring frameworks.
The data collection framework in BiH's tourism sector involves multiple institutions like the Agency for Statistics and the Central Bank, adhering to international standards. Regular updates on tourism statistics are accessible to the public through monthly surveys, yet methods lack modernisation, relying on paper surveys. Challenges persist, including a shortage of human resources and expertise and limited use of electronic systems. The online data portal lacks interactive tools for easier access. Economic analyses of tourism contributions remain underdeveloped, hindering informed decision making.
Data collection in the tourism sector of RS is comprehensive and allows for collaboration and integration of data from various sources with the aim of increasing their effectiveness and analysis. However, there remain technological limitations even as the institutions adhere to international standards; the absence of electronic systems for data collection indicates minimal technological advancement and innovation. A public online portal reporting tourism statistics regularly and co-operation among sectors show positive progress. Data collection surveys conducted in RS also cover important factors in the economic contribution of tourism, such as gross value added, investment and employment, therefore covering a wide range of economic impacts reported regularly to the public. The monitoring mechanism and reports on the quality of the surveys are commendable.
In the FBiH, various institutions contribute to data collection, but a lack of resources and technological advancement remain primary obstacles to an efficient and effective process. Significant progress has been made in certain aspects of the process, such as establishing a permanent data repository and monitoring economic contributions, particularly within the hospitality sector. Additionally, implementing a structured timeline for data collection and publication of critical data such as tourist arrivals and overnight stays on a monthly basis ensures a positive level of transparency. However, limited use of electronic systems and slow progress in technological advancement remain critical obstacles to ensuring the efficiency and robustness of the data collection process.
Sub-dimension 15.2: Accessibility, tourism offer and human resources
The connectivity framework for tourism in BiH has shown minimal progress since 2021, suggesting a lack of priority for this area. There is scant evidence of the implementation or revision of state-level initiatives concerning regulations or involvement in regional efforts to foster a more tourist-friendly and accessible environment. Moreover, the failure to update visa requirements and regulations, along with the absence of special arrangements for tourists crossing the border, underscores a lack of proactive efforts to improve accessibility. BiH has the potential to be a hub between Western Europe and the Balkans, but its transport infrastructure, especially the airports, needs to be significantly modernised and expanded. This would increase efficiency and regional connectivity and boost tourism and economic growth. The hospitality industry is growing and driven by the private sector, but the overall lack of connectivity (not only air but also road and rail infrastructure) is hampering tourism growth. The market for international air passengers in BiH is the smallest in the region. (World Bank, 2020[6])
In RS, the framework for tourism connectivity has not shown progress since 2021. The lack of a regional strategy to facilitate travel and specific targets for reducing transport-related emissions is a cause for concern. Despite accessible destinations, the lack of sustainable transport initiatives is notable.
In the FBiH, evidence indicates significant improvements in the infrastructure facilitating access to leading tourist destinations by air and road. There are still problems in rural areas due to distance, limited public transport and geographical barriers. The lack of information on the monitoring and evaluating measures to improve accessibility suggests the need for a comprehensive assessment. In the context of connectivity, BiH can learn from Albania, mainly through the example of the digital platform "eTransport - Simplifying Travelling in Albania" (Box 16.1).
Box 16.1. eTransport - Simplifying travelling in Albania
Albania has developed eTransport, which serves as a secure travel ticket and is the national digital platform designed to enable travel throughout Albania. This innovative online platform aims to improve services for both transport operators and citizens.
As an interactive hub, eTransport connects travellers, transport companies, agencies and national terminals, improving the overall travel experience in Albania. The eTransport platform is a communication bridge that guides travellers to their favourite destinations and cultural events in tourist Albania.
This national digital platform, launched in collaboration with the Directorate-General for Road Transport, the Ministry of Infrastructure and Energy and the National Agency for the Information Society, aims to improve public transport services. The Ministry of Tourism and Environment, in collaboration with the Directorate-General for Road Transport, officially recognised the eTransport platform through a co-operation agreement.
This innovation provides a comprehensive, centralised source of information for local and foreign citizens, with details on lines, routes, timetables, terminals and more. The eTransport platform introduces online ticketing, guaranteeing a complete control circuit and seat selection.
The eTransport platform is transforming transport services - not only has it changed travel planning, but it also is an environmentally friendly solution that contributes to the reduction of air-polluting emissions from the Albanian transport sector. The platform is becoming a key player in promoting sustainable and user-friendly travel experiences in Albania.
Source: E-Transport (2023[8])
Accommodation capacity and quality frameworks are primarily established at the entity level rather than at the state level. These frameworks aim to improve availability and quality across various types of accommodations. Additionally, specific policy measures have been implemented to support these objectives.
RS has made progress in the accommodation capacity and quality framework by implementing measures to facilitate investment in private accommodation and maintain uniform quality standards. The mandatory categorisation and assessment processes, supported by special commissions and municipalities, ensure a structured approach to quality. The inclusion of requirements for people with disabilities demonstrates a commitment to accessibility. Challenges remain, however, such as unclear implications of the sharing economy, the lack of explicit requirements for energy efficiency, and the lack of explicit information to assess the framework for facilitating accommodation. The risks are that these shortcomings are not addressed, that there is a lack of clarity regarding the integration of the sharing economy, and that energy efficiency regulations are not sufficiently improved. Together, these could hinder the development of a comprehensive framework for accommodation in RS.
The FBiH has made progress in the accommodation capacity and quality framework, with the government supporting investment in private accommodation and maintaining uniform quality standards. Mandatory categorisation and regular inspections contribute to high standards. Challenges include a lack of information on training for businesses and potential gaps in understanding and implementation. While accessibility requirements for people with disabilities are integrated, there is a lack of explicit requirements for energy efficiency. Limited information is available to assess the framework for facilitating accommodations. The risk is that these challenges are not adequately addressed, comprehensive training is not provided, and the integration of energy efficiency measures into quality standards is overlooked, all of which could hinder further improving accommodation standards in the FBiH.
In BiH, the education system is characterised by its complexity, with competencies organised at the entity level. The availability of a qualified workforce in the tourism sector in RS is facing challenges. While a working group for a white paper is being prepared to address human resources issues, there is no specific information on the adoption of a human resources policy and plan for tourism, indicating a possible gap in strategic planning. Although a skills gap assessment and training needs analysis was conducted in 2022, resulting in the training of tourist guides, there are limited efforts to facilitate foreign workers' access to the labour market. The lack of consultation, dialogue with stakeholders, and evaluation of the human resources policy pose risks. Although budget allocation was discussed, there is no agency responsible for quality assurance and accreditation in vocational education and training (VET) or higher education for tourism, which has seen a decline in recent years.
The availability of skilled labour in the tourism sector in the FBiH presents a mixed picture. Positive aspects include a specific human resources policy and plan for tourism, coverage of key aspects of human resources development, consultations and dialogue on human resources planning, and an existing framework for vocational and higher education in tourism. As part of the development of the FBiH's tourism strategy, USAID's tourism project prepared an assessment and forecast of the related human resource needs for the period 2021‑27. This assessment included an analysis of employment and training needs in the tourism industry and an analysis of tourism education and training. Challenges include the lack of a quality assurance agency for vocational and higher education in tourism, outdated curricula that are not aligned with the needs of the industry, and unclear budgets for human resource development activities. Addressing the challenges indeed requires updating curricula and ensuring an adequate budget. The obstacle lies in the need to establish a quality assurance agency and improve co-operation among stakeholders to achieve a comprehensive approach to developing a skilled tourism workforce in the FBiH.
Sub-dimension 15.3: Sustainable and competitive tourism
Tourism branding and marketing in BiH faces challenges, as there is limited evidence of progress in establishing a tourism brand identity and marketing strategy. This poses a challenge for effective promotion in the global tourism market, which is reflected in the economy's relatively low brand strategy ranking of 104th (World Economic Forum, 2022[2]), behind stronger competitors in the Western Balkans such as Albania (18) and Montenegro (48). A comprehensive digital marketing strategy and the utilisation of digital tools are not integrated into the overall strategy. While several promising regional initiatives to establish common tourism brands are in place, such as initiatives in the European Union Strategy for the Adriatic Ionian Region (EUSAIR), they lack a structured monitoring and evaluation system, limiting the potential of the tourism sector in BiH.
RS faces branding and marketing challenges in tourism due to the absence of a well-defined tourism brand identity and a comprehensive marketing strategy. Although the Tourist Organisation of RS (TORS) exists to handle tourism branding and marketing, efforts often lack centralised co-ordination, with individual stakeholders within the tourism sector executing marketing initiatives independently. Additionally, inadequate digital skills and financial resources pose obstacles to the effectiveness of digital marketing activities.
The FBiH has strengths in tourism branding and marketing, with an established tourism brand identity and recognised brands, including cultural events and attractions, such as the Sarajevo Film Festival, Herzegovina Wine Route, and Via Dinarica. A comprehensive marketing strategy targets various global markets and destinations and actively engages in various marketing channels, including digital platforms. During the development of the FBiH's 2022-27 Tourism Development Strategy and in conjunction with Priority 2 Destination Marketing Development, USAID Tourism conducted an analysis of detailed market information and other market research. Challenges include inadequate digital infrastructure, insufficient digital skills and resistance to change. Addressing infrastructure challenges, promoting the development of digital skills and exploring government incentives for private sector participation are key challenges for the FBiH. Furthermore, establishing a robust monitoring and evaluation system is an additional challenge for maximising the effectiveness of branding and marketing efforts.
Natural and cultural heritage valorisation frameworks have been incorporated into various strategic documents at both the state and entity levels, such as the Strategy of Cultural Policy in BiH (adopted in 2008), the Biodiversity Strategy and Action Plan for the period 2015-20 (adopted in 2016), and the Tourism Development Strategy of RS for the period 2021-27 and the Tourism Development Strategy of the FBiH for the period 2022-27. The last comprehensive strategic document on cultural policy in BiH, adopted in 2008, was followed by the implementation of Action Plans extending from 2011 to 2018, alongside the adoption of a strategic framework in 2015 that aligns with EU obligations and includes the goal of improving culture and the creative sector. In the two entities of BiH, cultural policies are managed differently.
RS has potential and challenges in the natural and cultural heritage valorisation framework that require a comprehensive approach to sustainable development. While the tourism strategy addresses cultural heritage issues, there is a lack of clear and measurable implementation plans for specific frameworks and strategies for natural and cultural heritage. There is a gap in the dedicated cultural and historical heritage strategy within the Department of Trade and Tourism. Private stakeholders, local communities, academia and NGOs are not involved in the formulation of heritage strategies. Challenges include securing budgets and qualified staff for protected areas, and there is a lack of essential legal frameworks, leaving aspects such as trade in artefacts and visitor management unregulated. The lack of systematic adaptations based on monitoring and evaluation hinders the adaptive management of cultural heritage sites. The risk lies in the failure of RS to effectively strengthen cultural heritage strategies, as this requires the involvement of different stakeholders, the implementation of specific plans within broader strategies and the elimination of regulatory gaps. Without the implementation of effective monitoring mechanisms and conservation initiatives, responsible tourism practices may be jeopardised.
FBiH is committed to the valorisation of natural and cultural heritage as part of its national tourism strategy. It prioritises the preservation of cultural, historical and natural values that are in line with the principles of sustainability. However, there is a lack of concrete details on the strategies for engagement and implementation, as well as on adaptation of the strategies based on monitoring and evaluation. The finer details of cultural heritage strategies are the responsibility of the Federal Ministry of Culture or the Ministry of Foreign Affairs. There is evidence indicating weak collaboration channels among ministries, communities, and stakeholders, hindering the implementation of sustainable practices and plans for the valorisation of natural and cultural heritage in the FBiH.
Efforts on the promotion of sustainable development and operations initiatives predominantly originate at the entity level in BiH. There is no policy framework that includes clear measures for the promotion of sustainable tourism and operations. In BiH, public sector tourism associations are designated as destination management organisations (DMOs) but primarily focus on promotional activities rather than comprehensive destination management functions. While the FBiH lacks active tourist associations at the entity and municipal levels, in RS, there are local tourism organisations at the city or municipal level, along with an umbrella tourist association representing municipal tourism associations. Although sustainable development in BiH has become an important objective that is strongly supported by the World Bank and the EU, integration of the concept of sustainability in tourism strategies and policies is still absent. Consequently, sustainability assessment and monitoring have not yet been established. Given the lack of a strategic framework for sustainable development and assessment, sustainability in tourism arises from individual business initiatives, destinations and NGOs.
Initiatives concerning the promotion of sustainable development and operations primarily stem from individual business endeavours, destinations, and non-governmental organisations at the entity level.
RS is committed to sustainable tourism development in its official documents but faces challenges in fully implementing the policy. As such, the government has yet to adopt a policy framework for the promotion of sustainable tourism with clear policy actions and an allocated budget. Similarly, environmental measures have been referenced as part of the national environmental policy and/or tourism strategy, but there is a lack of progressive implementation, monitoring and evaluation mechanisms. In striving to bolster the sustainability of tourism developments, the government has implemented various initiatives. These include setting standards for tourist destinations aligned with international norms such as certification and labelling schemes, providing subsidies, conducting awareness campaigns, and investing in infrastructure to bolster sustainable tourism development. However, the absence of independent assessments and a sustainable tourism observatory restricts the comprehensive evaluation of impacts and the capacity for sustainable practices among tourism businesses in RS. This hampers the potential for more effective and widespread adoption of sustainable tourism practices.
The FBiH has outlined the principles of sustainable tourism development in its official documents but faces challenges in policy implementation. While environmental protection measures are integrated into the national environmental protection policy and/or tourism strategy, there is a lack of comprehensive monitoring and evaluation mechanisms for the practical application of environmental principles in tourism, as outlined in the Tourism Development Strategy for 2022-27. A significant gap lies in the absence of a sustainable tourism observatory to systematically assess the impact of implemented measures. BiH can learn valuable lessons from Finland in promoting sustainable development and operations. For more details on the Sustainable Travel Finland Programme implemented by Visit Finland (Box 16.2).
Box 16.2. Sustainable Travel Finland Programme by Visit Finland
In response to the growing demand for sustainable travel products and the commitment to carbon neutrality by 2035, Visit Finland, the national tourism promotion body, undertook a pioneering initiative. Research in 2018 highlighted the potential for increased sales if Finland's supply of sustainable travel products was enhanced, garnering support from tour operators and local stakeholders.
Visit Finland aimed to position the tourism industry as a contributor to environmental goals while facilitating the identification of companies and destinations committed to sustainable practices.
The organisation created the Sustainable Travel Finland programme, aligning with the United Nations Sustainable Development Goals. A comprehensive survey and needs assessment identified specific development needs among businesses and destinations, leading to the development of the programme, complete with a label and toolkit. Participation was made accessible and free of charge for any business or destination seeking to incorporate sustainability.
The programme featured e-learning, self-assessment tools, webinars, and workshops. Sustainable Tourism Indicators, developed in collaboration with the private sector, were utilised by destination marketing organisations (DMOs) to engage with small and medium-sized enterprises (SMEs).
Takeaways for national tourist organisations (NTOs) and DMOs:
Implementation of such programmes supports comprehensive, consistent, and co-ordinated adoption of sustainable practices in the tourism and hospitality sector.
Communicating the programme’s results enhances standards across the destination’s tourism sector, demonstrating the NTO’s commitment to sustainable practices and increasing the destination’s appeal to visitors, inbound operators, and investors.
Alignment with international standards, particularly the Sustainable Development Goals (SDGs), is vital, but customisation for national and regional needs is essential.
The case underscores the crucial role that DMOs can play, provided they possess the necessary skills and funding, in supporting a comprehensive national sustainable tourism programme led by the NTO.
Sources: European Travel Commission (2021[9]); Visit Finland (2024[10]).
Overview of implementation of Competitiveness Outlook 2021 recommendations
BiH’s progress in implementing past CO Recommendations has mostly been limited, even though developing the tourism strategies at the entity level is a promising start. However, progress on destination management and human resources has been relatively slow, as evidenced in Table 16.2.
Table 16.2. Bosnia and Herzegovina’s progress on past recommendations on tourism policy
The way forward for tourism policy
To ensure further successful development of tourism, policy makers should:
Create a dedicated governance structure with extended scope/mandate for the MoFTER and a state-level tourism organisation; these are crucial to enhance the implementation of tourism policies and co-ordination between government levels. Simultaneously, fostering co-operation among tourism administrations is vital for efficient collaboration at national, regional, and local levels. This approach aims to streamline and improve the overall effectiveness of tourism management.
BiH should focus on attracting investment and promoting innovation in the tourism sector, capitalising on its advantage of lower seasonality compared to other Western Balkan economies. By recognising tourism as a strategic sector and emphasising diversification into areas such as rural and cultural tourism and agritourism, BiH can promote growth and competitiveness. This means actively working on specific measures and initiatives to attract investment and encourage innovation in the sector.
Develop a comprehensive planning framework for destination management. Establishing that framework is essential for effective co-operation at national, regional, and local levels. Inspired by successful models such as the tourism clusters in Unasana and Herzegovina, the promotion of destination management should be based on best practices. At the same time, co‑operative engagement will take place by sensitising and training public and private stakeholders.
Improve data collection through technological advances. To overcome challenges in data collection, including limited human resources and the lack of interactive tools, BiH should focus on technological advances. Introducing electronic systems, developing interactive tools and conducting comprehensive analyses will contribute to a more advanced and insightful data collection system in the tourism sector. In the best-case scenario, the data collected by the entities can be better linked, processed and shared accordingly.
Develop a common strategic tourism brand identity. The lack of an established tourism brand identity hinders effective promotion. Developing a clear tourism brand identity will help BiH to stand out in the competitive global tourism market, overcome branding and marketing challenges, and implement a marketing strategy that will effectively position BiH in the global tourism landscape. Under the umbrella of a state-level brand, the entities could position themselves with their destination and product brands accordingly.
Build a programme to develop human resources for tourism in the FBiH/RS to address the key findings through three pillars: a skills enhancement programme (including digital skills); a strengthened tourism education system with updated curricula, partnerships with industry and a new quality assurance agency; and policies to promote tourism careers through incentives, scholarships and lifelong learning opportunities.
References
[1] Agency for Statistics of Bosnia and Herzegovina (2023), “Agency for Statistics of Bosnia and Herzegovina”, http://www.bhas.ba/Calendar/Category/19 (accessed on 28 January 2024).
[4] BHAS (2024), Business Statistics: Tourism, http://www.bhas.ba/Calendar/Category/19. (accessed on 13 June 2024).
[5] Center of Excellence for Evaluation and Policy, R. (2022), “Tourism in Bosnia and Herzegovina: In-depth analysis”, https://www.efsa.unsa.ba/ef/sites/default/files/peer_sebs_tourism_report_clean_2022.04.05.pdf.
[8] E-Transport (2023), Welcome to e-Transport, https://www.etransport.al/ (accessed on 13 June 2024).
[9] European Travel Commission (2021), Encouraging Sustainable Tourism Practices, https://etc-corporate.org/uploads/2021/09/ETC_SUSTAINABLE_TOURISM_HANDBOOK_vs6_FINAL.pdf#page=61&zoom=100,0,0.
[7] USAID (2021), “BiH Entity Adopts Tourism Development Strategy”, https://turizambih.ba/en/bih-entity-adopts-tourism-development-strategy.
[10] Visit Finland (2024), Finland- Sustainable Travel Destination, https://travel-trade.visitfinland.com/en/sustainability/ (accessed on 13 June 2024).
[6] World Bank (2020), Bosnia and Herzegovina Systematic Country Diagnostic Update, https://openknowledge.worldbank.org/handle/10986/33870.
[2] World Economic Forum (2022), Travel & Tourism Development Index 2021, Rebuilding for a Sustainable and Resilient Future, Insight Report May 2022, https://www.weforum.org/publications/travel-and-tourism-development-index-2021.
[3] World Tourism Organisation (2023), “UNWTO Tourism Statistics Database”, https://www.unwto.org/tourism-statistics/key-tourism-statistics (accessed on 1 March 2024).
Note
← 1. Information on the First Tourism Development Strategy in FBiH adopted: https://turizambih.ba/en/the-first-tourism-development-strategy-in-fbih-adopted/.