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: Serbia
16. Tourism policy
Abstract
Key findings
Serbia has increased its overall score in tourism policy since the last Competitiveness Outlook, from 2.3 to 2.8. In 2024, the Serbian tourism sector developed positively compared to 2021. Vertical co-operation, information exchange, and public-private partnerships are particularly noteworthy. Improvements in data collection and progress in accommodation standards were observed. Progress was also observed in tourism marketing. However, governance, connectivity, labour availability, sustainable tourism promotion, and heritage enhancement remain.
Table 16.1. Serbia’s scores for tourism policy
The key findings are:
Serbia's strategic framework for tourism development has progressed through adopting the Tourism Development Strategy for 2024-33, which focuses on climate change, competitiveness, and green initiatives. However, effective implementation could be hindered by constraints posed by inadequate resources and the absence of a designated department.
Growing international collaboration drives momentum towards advancing sustainable development in tourism, as evidenced by the Ministry of Tourism and Youth's partnership with the Global Sustainable Tourism Council. However, a clear set of targeted guidelines, regulations, and strategies for sustainable development will be essential to driving meaningful progress.
Tourism data collection is guided by comprehensive engagement with diverse stakeholders and the use of existing information systems. However, establishing a Tourism Satellite Account (TSA) would strengthen tourism statistics and accurately measure the sector's economic impact.
Serbia has taken a leading role in digitisation by introducing a Central Information System called eTurista. Moreover, a new project, "Digitalisation of the Serbian Tourism Offer" aims to modernise access to tourism-related information.
Heightened emphasis on fostering regional co-operation has been underscored by initiatives aiming to improve regional connectivity and reduce transport emissions.
State of play and key developments
Tourism in Serbia remains an important sector for economic and social growth, contributing approximately 6.9% to GDP in 2022, totalling RSD 444.3 billion (EUR 3.79 billion), and employing around 167 800 individuals, representing about 7.3% of total employment (Statistical Office of the Republic of Serbia, 2023[1]). Projections for 2023 suggest an increase in the sector's contribution to the economy's employment.
In 2022, Serbia experienced a surge in arrivals with spending reaching RSD 346.6 billion (EUR 2.9 billion), primarily driven by foreign tourists. The economy attracted visitors from around fifty countries and achieved the highest occupancy rate among the WB6 economies, reaching 46.26% (UN Tourism, 2023[2]). Figure 16.1 provides insights into the development of arrivals and overnight stays by international and domestic tourists from 2019 to 2023 and the seasonal distribution of arrivals in 2023.
Figure 16.1. Arrivals and overnight stays in accommodation establishments by international and domestic tourists (2019-2023) and seasonal distribution of arrivals (2023) in Serbia
Stays and arrivals are expressed in millions (left); seasonal arrivals are expressed in thousands (right)
Source: Statistical Office of the Republic of Serbia (2023[1]).
The highest numbers to visit Serbia came from the Russian Federation, Turkey and Bosnia and Herzegovina (Statistical Office of the Republic of Serbia, 2023[1]), as shown in Figure 16.2.
Serbia is preparing for the Specialised Expo 20271 in Belgrade and expects the participation of over 100 countries. This event is of political, economic, and cultural importance for the region and provides an opportunity to showcase Serbia’s potential on a global scale. With millions of estimated visitors, the Expo is expected to have an economic impact of EUR 1.1 billion, of which EUR 600 million will be direct and EUR 500 million indirect, driving investment in tourism and event infrastructure (2027 Expo, 2023[3]).
Figure 16.2. Foreign tourist overnight stays in Serbia by country of origin (2022-2023)
Overnight stays are expressed in thousands
Source: Statistical Office of the Republic of Serbia (2023[1]).
Sub-dimension 15.1: Governance and enabling conditions
Serbia’s tourism governance is being strengthened through the Tourism Development Strategy 2024-33 development. The strategy is expected to align with the nation's overarching policies, including those related to climate change and competitiveness. It also aims to incorporate a monitoring system into the governance framework that is currently absent from the ongoing strategy, posing challenges to accurately tracking progress towards its primary objectives. Developing the new tourism strategy in Serbia has emphasised multi-stakeholder consultations: local communities and regional authorities are involved in its formulation and implementation, fostering co-operation across various levels for enhanced effectiveness and impact. Similarly, other economies in the region are currently formulating and implementing their national strategies (Box 16.1).
In 2022, governmental restructuring led to establishing a new ministry focused on tourism and youth,2 a change from the previous arrangement where tourism was grouped with telecommunications and trade. The change sparked controversy due to a perceived lack of synergy between youth affairs and tourism. The governance structure, hampered by financial and human resource constraints, notably lacks a dedicated department for tourism governance strategy within the responsible ministry, despite efforts to enhance efficiency by establishing internal units to streamline processes and improve effectiveness.3
Serbia's approach to vertical co-operation and information sharing in the tourism sector demonstrates promise in certain areas while revealing clear challenges, namely in implementation. Established in 2017, the National Council for Tourism Development4 comprises 33 members from various ministries, associations and universities. Chaired by the Minister of Tourism and Youth, the Council has laid the foundation for national, regional, and local destination management structures by co-ordinating stakeholders involved in the tourism sector's development. Destination management organisations (DMO) can mobilise stakeholders to work together, creating co-ordinated action in destinations and producing better outcomes for the tourism sector. Actions have been taken by many OECD and partner countries to support destination management by implementing new DMO structures, reviewing existing operating models and providing capacity-building activities for the regions as is the case for Bulgaria (Box 16.2). The lack of publicly available data on the operations of the Council hampers progress and transparency in co-ordinating tourism administrations across different levels. Concurrently, tensions arise from inadequate inter-sectoral collaboration and the inconsistent use of EU funds in implementing local or regional tourism strategies, which underscores challenges related to policy alignment and resource allocation.
Box 16.1. Development of the National Tourism Strategy, Montenegro
Montenegro’s National Tourism Strategy, adopted in March 2022, aims to position the economy as a sustainable, green, smart and inclusive global destination. The strategy focuses on reducing seasonality, improving regional balance, and prioritising tourism in development policy. The plan's key operational objectives include improving the regulatory framework, developing infrastructure, improving accommodation capacity, diversifying tourism products, improving human resources, and integrating digital solutions. To achieve year-round attractiveness, the strategy emphasises the development of rural, cultural, health, manifestation, and nature-based tourism. Collaboration with various stakeholders, including the UNWTO, played a crucial role in adapting the strategy to global tourism trends. A wide range of stakeholders at the state and local levels were involved in the preparation of the document, including public and private sector partners, relevant ministries, academic institutions, the National Tourism Organisation of Montenegro, local tourism organisations, business and tourism associations and non-governmental organisations. International organisations such as the World Bank, the European Bank for Reconstruction and Development (EBRD), the German Corporation for International Cooperation (GIZ) and the United Nations Development Programme (UNDP) were also actively involved. The process considered the integration of specific activities from related ministries (transport, energy, utilities, etc.) into the Action Plan to ensure a co-ordinated approach, minimise overlaps between ministries, and take into account crosscutting documents to improve efficiency and co-operation. Partnerships at all levels, especially between the public and private sectors, are crucial for successful implementation. The strategy recognises that tourism can only make a significant contribution to Montenegro's economic prosperity through comprehensive networking and synergies among stakeholders.
Source: Information based on responses to questionnaires of the Competitiveness Outlook framework completed by national authorities.
The eTurista platform (Box 16.3), a primary information source for tourist destinations which combines all data on caterers and catering facilities for accommodation provided by national, regional, and local tourism organisations and businesses, will soon be complemented by a new platform currently under development to digitalise Serbia's tourism offer.
Serbia demonstrates a constructive public-private dialogue within its tourism sector, involving various representative bodies from the private sector. Bodies like YUTA (Association of travel agencies of Serbia), HORES (Association of hotel and restaurant companies), and others are actively participating in the design and implementation of the national tourism strategy, enabling a collaborative approach. Furthermore, the existence of the National Council for Tourism Development, which comprises representatives from both the public and private sectors, including academia and NGOs, sets a solid framework for public-private partnership and co-operation in the economy's tourism development. The introduction of a monitoring and evaluation mechanism for public-private co-operation in tourism at the national level is already in the pipeline and will be instrumental in strengthening collaboration. Once implemented, this mechanism is expected to enable the economy to assess the efficiency of such co‑operation, identify areas for improvement, and foster more effective partnerships between the public and private sectors but precisions have not been provided. Overall, Serbia's public-private dialogue in tourism seems well established, and further enhancements and monitoring systems will ensure that this partnership remains strong and productive.
Box 16.2. New approaches to regional and destination management - Bulgaria
Bulgaria established nine Regional Tourism Management Organisations’ established in 2018-19. New projects were launched for 2019-22 to support the organisations’ functioning and capacity building for effective tourism management at the destination level. These focus on providing support for the creation and functioning of the management organisations and improving the quality of services of SMEs in tourism through ICT and web-based marketing.
Source: OECD (2022[4]).
Box 16.3. Central Information System - eTurista
The introduction of eTurista fulfils several objectives in the Hospitality Industry Act, as the platform combines all data on caterers and catering facilities for accommodation in the Republic of Serbia. These include combating the grey economy and increasing Serbia's competitiveness as a tourist destination. The centralised information system eTurista consolidates the data of restaurateurs and accommodation providers throughout Serbia and provides a mandatory and free online platform. Benefits for accommodation providers include online categorisation requests, accurate records of accommodation taxes paid and reduced administrative burden. Tourists benefit from greater security, higher quality of service and the certainty that they stay in legal establishments. State institutions and tourism organisations benefit from improved real-time statistical monitoring of tourist traffic, efficient tax collection and active marketing strategies to increase the competitiveness of Serbian tourism. Overall, eTurista streamlines processes, increases transparency, and contributes to the growth and regulation of the tourism sector in the Republic of Serbia.
Source: Ministry of Tourism and Youth (2024[5]).
Serbia has embraced a proactive stance in gathering tourism data collection, engaging various institutions like the National Bank of Serbia and the City Administration of Belgrade; these efforts are facilitated by the central information system (eTurista) transforming the data collection process. Yet challenges remain, including resource constraints and the absence of an established Tourism Satellite Account, representing a significant gap in accurately measure the sector's economic impact (OECD, European Union, United Nations and WTO, 2010[6]).
Sub-dimension 15.2: Accessibility, tourism offer and human resources
Serbia is actively advancing sustainable connectivity efforts by developing its new Tourism strategy to promote low-emission travel, complemented by active participation in initiatives like Via Dinarica5 and the Open Balkan Initiative (Box 16.4) to enhance cross-border access. While promising, the Open Balkan initiative has yet to reach its full potential and has not garnered full endorsement from the EU.
Box 16.4. The Open Balkan initiative
The Open Balkan initiative, launched in 2021 and including Albania, North Macedonia and Serbia, is a collaborative effort to foster regional political and economic integration within the Western Balkans. This initiative seeks to enhance the region's capabilities and remove barriers to economic growth by promoting the freedom of movement of people and goods. The primary objective of Open Balkan is to overcome social, economic, and trade barriers hindering regional economic growth by implementing the four fundamental freedoms of European integration: the freedom of movement of goods, workers, capital, and services.
Source: Chamber of Commerce and Industry of Serbia (2024[7]).
Serbia has established a solid foundation for accommodation capacity and quality through adherence to European standards, maintenance of a register of accommodation facilities, and mandatory categorisation overseen by a commission appointed by the minister responsible for hotels. Accredited experts at the local level oversee compliance with other accommodation establishments, while the government supports companies in establishing standards and implementing energy efficiency programmes. The government also supports and subsidises direct investments in the hotel and accommodation sector, such as investment projects in the hotel services sector in spa and climatic resorts, with a minimum value of EUR 2 million (Chamber of Commerce, 2022[8]). Despite these efforts, challenges persist due to insufficient budget and human resources, including the lack of available training courses for the categorisation process and quality standards; this necessitates improvements in monitoring and adjustments based on monitoring results.
Concerning the availability of qualified workforce, important aspects such as skills development and the promotion of tourism among the youth are covered in the national strategy but require attention and improvement, namely in the implementation. The absence of consultation and dialogue with all tourism stakeholders in human resources (HR) planning, coupled with a lack of sufficient budget for implementing HR development measures, presents challenges for the long-term development of this policy area. Additionally, an evaluation of the HR policy has yet to be implemented, which is crucial to ensure the strategy's effectiveness and relevance. As the tourism sector grows, the demand for a structured skills framework becomes increasingly critical. An important part of workforce transformation will be the availability of sufficient and appropriate workforce skills to enable (or constrain) digital transformations of the sector. While the evidence is sparse, it appears that the current levels of digitalisation in tourism have yet to create significant skills disturbance or job displacement in some sub-sectors. However, this situation is likely to change as the take up of current technologies intensifies, and as more firms take advantage of opportunities from emerging digitalisation systems and tools, including the scope for greater levels of automation (OECD, 2021[9]). In light of this and despite some existing efforts, Serbia has yet to fully promote career opportunities and training in tourism to strengthen its workforce and ensure competitiveness in the sector.
Sub-dimension 15.3: Sustainable and competitive tourism
Serbia has made significant progress in tourism marketing and branding by establishing a tourism brand identity and implementing a tourism marketing and digital strategy targeting international markets. However, the effectiveness of the Strategic Marketing Plan for Tourism is hampered by partial implementation, mainly due to resource constraints. The challenge of limited financial and human resources for effective digital marketing underscores the critical role of digitalisation in the tourism sector. Digitalisation not only improves customer experiences and operational efficiency but also empowers all stakeholders in the sector through data-supported decision-making, and increases added value, competitiveness, and resilience.
Serbia has taken steps to integrate its natural and cultural heritage valorisation framework into its national tourism strategy, as demonstrated by including 20 cultural policy points in the Ministry of Culture's Strategic Priorities.6 However, there is still room for improvement in policy development, particularly concerning the absence of adopted strategies or frameworks for heritage management since 2021. Although initiatives like the memorandum of understanding with the German Corporation for International Cooperation show intent, resource constraints have limited the prioritisation of dedicated heritage strategies.
In Serbia, significant strides in the promotion of sustainable development and operations have been made since 2023 through heightened collaboration between the Ministry of Tourism and Youth and the Global Sustainable Tourism Council (Global Sustainable Tourism Council, 2023[10]), fostering co-operation and synergies for sustainable tourism initiatives. While the economy has articulated principles of sustainable tourism development in its Tourism Development Strategy and Law on Tourism, challenges persist, notably the lack of a dedicated policy framework and budget for sustainable tourism. However, plans to introduce new economic instruments through the strategy signal progress toward a structured approach and dedicated resources for sustainable tourism operations. The absence of a Sustainable Tourism Observatory remains a notable gap in monitoring and continuous improvement efforts. Montenegro serves as a positive example of climate change adaptation for Serbia and is actively developing a National Adaptation Plan (NAP) (Box 16.5) that includes specific measures for the tourism sector.
Box 16.5. National Adaptation Plan for Climate Change (in preparatory phase), Montenegro
Introduced by the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC) in 2010, the National Adaptation Plan (NAP) process serves as a mechanism for countries to identify and align medium- and long-term adaptation needs and priorities. This alignment is with the adaptation component of their Nationally Determined Contributions (NDCs) while facilitating the integration of climate change adaptation into development planning across sectors and levels.
The guiding principles of the NAP process underscore the importance of a responsive, gender-sensitive, participatory and transparent approach. This approach considers vulnerable groups, communities, and ecosystems. The process is rooted in the best available science, traditional culture, local context and knowledge, and employs gender-sensitive approaches. Additionally, it emphasises avoiding duplicating efforts undertaken by the economy and aligning with Convention guidelines.
Montenegro, in its commitment to global climate change mitigation, regularly submits reports to the UNFCCC. At the national level, institutions responsible for climate change are establishing a legal and strategic framework to fulfil international commitments. Notably, there is a specific focus on integrating climate considerations into various aspects of the tourism sector. Future initiatives include further development of the National Adaptation Plan (NAP) and a dedicated plan for adapting the tourism sector to climate change impacts.
Source: Information based on responses to questionnaires of the Competitiveness Outlook framework completed by national authorities.
Overview of implementation of Competitiveness Outlook 2021 recommendations
Serbia’s progress on the Competitiveness Outlook 2021 Recommendations has been moderate (Table 16.2). Some progress was achieved in upgrading the tourism investment policy framework with a focus on innovation. Nevertheless, room for improvement remains on many other fronts, such as strengthening dialogue and co-operation with private sector stakeholders and strengthening data collection through developing the Tourism Satellite Accounts (TSA).
Table 16.2. Serbia’s progress on past recommendations for tourism policy
The way forward for tourism
To ensure the further successful development of tourism, policy makers in Serbia should:
Establish and strengthen destination management and co-ordination structures among national, regional, and local entities to create a more integrated approach to tourism development. Serbia should establish destination management and co-ordination structures with the private sector at the local and regional levels to enable decentralised destination management organisations and encourage private sector and stakeholder engagement. This initiative can enhance the effectiveness of local and regional tourism strategies. It will also help empower municipalities and local tourism organisations to manage tourism development by providing co-ordinated technical support, designing tourism master plans, improving capacity building and allocating sufficient budgetary resources for policy implementation at destination level. Consistent destination management requires adequate funding.
Allocate additional funds to all tourism policy areas. Serbia’s tourism is growing, but its sound and effective development relies on allocating more resources and support to enhance data collection, digital efforts and brand management, among others. Serbia can explore partnerships and collaborations with private sector stakeholders to access additional resources and expertise. Such initiatives will further enhance its tourism marketing and branding efforts, and Serbia can continue to strengthen its position in the global tourism market.
Establish an Observatory for Sustainable Tourism to enhance monitoring systems. Serbia should develop and adopt a policy framework with clear measures and budgetary allocations to promote sustainability in tourism. This framework can be strengthened by establishing a Sustainable Tourism Observatory. It should be further systematised through regular assessments of tourism impacts and visitor satisfaction to improve economic sustainability and increase attractiveness.
Introduce the calculation of the TSA to strengthen economic data. While Serbia's data collection efforts are advanced, addressing challenges, particularly limited human and financial resources, is essential. The TSA is a standardised international statistical framework that provides detailed insights into tourism's contributions to GDP, employment, and other key economic indicators; these will provide policy makers with reliable information crucial for evidence-based policy. Serbia should continue to invest in resources, streamline co-ordination among institutions, and explore partnerships with international organisations for capacity building. Moreover, the tourism sector's significant economic contribution should be consistently monitored, with annual reports and clear schedules for data collection and sharing to provide valuable insights and transparency in the sector.
Promote career opportunities and talent development in the tourism sector. Serbia should prioritise dialogue and consultation with all tourism stakeholders in HR planning to move forward and enhance HR development. This inclusive approach will help align the strategy with the sector's needs and expectations and ensure its practicality and effectiveness. Furthermore, Serbia should consider creating national, regional, and local skills partnerships, fostering collaboration among various stakeholders to bridge the skills gap in major tourism regions.
Box 16.6. Initiatives to enhance workforce skills and recruitment – selected country approaches
Malta: A EUR 5 million online training programme aims to develop the skills of the tourism workforce and the tourism product. It seeks to ensure that tourism employees have the skills to deliver a high-quality experience to Malta’s visitors.
Portugal: The Programme “Training + Next” was implemented in January 2022 and aims to train 75 000 professionals over three years, free of charge and adapted to the local needs of each municipality throughout the territory. The programme will implement upskilling and reskilling processes that add value to the local business fabric and their respective territories and functions to attract talent, including qualifying people from other sectors or unemployed people. Content will be adapted to the diversity of tourism companies and the sector’s future needs.
Source: OECD (2022[4]).
References
[3] 2027 Expo (2023), “Belgrade expo: What has been done so far?”, https://expobelgrade2027.org/belgrade-specilazed-expo-2027-what-has-been-done-so-far.
[8] Chamber of Commerce (2022), Investments in Spas Strengthen the Regional Development of Serbia, https://en.pks.rs/news/investments-in-spas-strengthen-the-regional-development-of-serbia.
[7] Chamber of Commerce and Industry of Serbia (2024), Open Balkan, https://en.pks.rs/open-balkan (accessed on 16 May 2024).
[10] Global Sustainable Tourism Council (2023), “Serbia joins and signs MOU with GSTC Destination Criteria”, https://www.gstcouncil.org/serbia-joins-and-signs-mou-with-gstc.
[5] Ministry of Tourism and Youth (2024), Central Information System in the Field of Catering and Tourism, https://www.eturista.gov.rs/ (accessed on 15 May 2024).
[4] OECD (2022), OECD Tourism Trends and Policies 2022, OECD Publishing, Paris, https://doi.org/10.1787/a8dd3019-en.
[9] OECD (2021), “Preparing the tourism workforce for the digital future”, OECD Tourism Papers, No. 2021/02, OECD Publishing, Paris, https://doi.org/10.1787/9258d999-en.
[6] OECD, European Union, United Nations and WTO (2010), Tourism Satellite Account: Recommended Methodological Framework 2008, https://www.oecd.org/cfe/tourism/tourismsatelliteaccountrecommendedmethodologicalframework.htm (accessed on 24 January 2024).
[1] Statistical Office of the Republic of Serbia (2023), Statistical Office of the Republic of Serbia Website, https://www.stat.gov.rs (accessed on 1 March 2024).
[2] UN Tourism (2023), UNWTO Tourism Statistics Database, Madrid, data updated on 31/10/2023, https://www.unwto.org/tourism-statistics/key-tourism-statistics (accessed on 14 February 2024).
Notes
← 1. Detailed information on the 2027 Expo is available at: https://www.bie-paris.org/site/en/2027-belgrade
← 3. These internal units include the Department for Quality Management in Tourism, Department for Infrastructure Projects in Tourism, Department for Improving the Quality of Tourist Offer, Department for Development of Tourism Products, Tourist Destination Management Group, Department for Legal Affairs and Second Instance Procedure, and the Group for Central Information System in Tourism and Catering.
← 4. In 2014, the National Council for the Development of Tourism in the Republic of Serbia was established with the aim of co-ordinating all stakeholders involved in the development of the tourism industry.
← 5. The Via Dinarica hiking trail spans 1 200 miles and the Western Balkans together with Slovenia and Croatia. In Serbia it passes through three major conservation areas: Tara, Kopaonik National Park and Zlatibor Nature Park, which cover a large portion of Serbia’s mountainous southwestern region: www.viadinarica.com and https://trail.viadinarica.com.
← 6. Strategic Priorities for the Cultural Development of the Republic of Serbia 2021‑25, www.kultura.gov.rs/extfile/sr/6132/Strate%C5%A1ki%20prioriteti%20razvoja%20kulture.pdf.