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Possibilities for Sustainable Rural Tourism Development in Bosnia and

Herzegovina

Article in Агрознање · February 2018

DOI: 10.7251/AGREN1704237D

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Dunja Demirović Bajrami Adriana LAZAR Radosavac

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Original scientific paper
Оригиналан научни рад
UDC: 338.48-55:[379.85:711.3
DOI: 10.7251/AGREN1704237D

Possibilities for Sustainable Rural Tourism Development in

Bosnia and Herzegovina
Dunja Demirović1, Adriana Radosavac2
1
University of Novi Sad, Faculty of Natural Sciences, Department of Geography,
Tourism and Hotel Management, Serbia
2
University Business Academy in Novi Sad, Faculty of Economics and Engineering
Management in Novi Sad, Serbia

Abstract

Rural areas in Bosnia and Herzegovina include more than 80% of the
country's territory and are inhabited by more than half of the population. In
order to preserve the natural environment, traditions and customs, rural tourism
is developing and rural areas are getting active for tourism purposes. The
authors analyze the current state of rural tourism in the territory of Bosnia and
Herzegovina and provide recommendations for its sustainable development.
The analysis shows that the basic problems that could slow down the
development of rural tourism are: lack of incentives for the development and
improvement of the state and government institutions, lack of subsidies for
young people who want to live and work in the countryside, inability to use
quality land for non-agricultural purposes, lack of defined standards for rural
development and underdevelopment of infrastructure.

Key words: rural tourism, sustainable development, Bosnia and Herzegovina

Introduction

The globalization, that has been present in the world for the past several
years, has tended to activate rural areas for tourist purposes. The leading rural
tourism countries in the world are EU countries where over 95% of the rural
tourism accommodation capacities are located (Todorović & Bjeljac, 2007).

Agro-knowledge Journal, vol. 18, no. 4, 2017, 237-248 237

 A special importance for the development of tourism is the
attractiveness of a tourist destination. Bornhost et al. (2007) emphasized the
importance of a tourist destination, defining it as a geographical region,
political authority, or a major attraction that seeks to provide visitors with
extensive experience worthy of memory.
Rural tourism is one of the priorities in tourism development in many
European countries. Rural tourism market is on the rise, while at the same time
the future of many rural areas is uncertain, due to changes in agricultural
production and the attractiveness of urban areas due to higher living standards.
Rural tourism is considered one of the most appropriate instruments for the
revitalization of rural areas and ensuring a sustainable future through job
retention or job creation, support for farms, nature conservation and the
preservation of rural crafts as a tourist attraction. Destinations of rural tourism
are based on a complex tourist product, which consists of several partial
products (accommodation, transport, food, shops, attractions and others)
(Demonja & Ružić, 2011; Hall, Roberts & Mitchell, 2003; Sidali, 2011). These
individual tourism enterprises are interdependent and connected and theyare
primarily small and medium-sized enterprises. Problems in rural tourism, which
contribute to the reduction of competitiveness are reflected (among other
things) in the existence of strong competition instead of cooperation among
providers of tourist products and services in rural areas. Many authors stated
numerous negative cases of the rural tourism impact on the environment
pollution, such as devastation of natural resources, noise and damaging cultural
heritage (Brankov, Jovičić, & Milijašević, 2015; Srdanović & Pavić, 2015).
Nevertheless, given the importance of tourism to rural areas, determining the
factors that influence the improvement of the competitive position on the
tourism market is of great importance for their further development.
In order to preserve natural ambient, traditions and customs, show and
divide with as many people as possible, there is a more intensive development
of rural tourism, or the activation of rural areas for tourism purposes in Bosnia
and Herzegovina (BiH). For Bosnia and Herzegovina, tourism development is
very important in the transition period, when the majority of the Bosnian
economy is technologically obsolete, economically regressing and losing its
market, while the environment is still significantly preserved.
The future of tourism development in BiH is based on a unique
resource base. Rural areas provide a good basis for the sustainable development
of tourism through the natural resources that BiH has at its disposal (climate,
thermal and mineral waters, cultural and historical potentials and human
resources).

238 Agroznanje, vol. 18, br. 4, 2017, 237-248

 The basic conditions for integral development of rural tourism are:
 the existence of preserved nature and natural terrain (for sports activities),
 culture, customs, architecture (characteristic for rural areas),
 proximity to the city areas, developed road network, especially local,
 developed standard telephone and internet connections,
 willingness of the local population to participate in rural development.
According to the estimates of the Central Bank of Bosnia and
Herzegovina, the World Economic Forum and the World Tourism Organization
(UNWTO), BiH receives tourism revenues of approximately 420 million euros,
while domestic tourism participates in tourism revenues of BiH with
approximately 37,5%. It is expected that the direct contribution of the tourism
sector to GDP will be 2.4% in 2021 from the total GDP (this means an average
annual real growth of 5.7%) (Tourism Development Strategy of the Federation
of Bosnia and Herzegovina for the period 2008 -2018). The World Tourism
Organization (UNWTO) has ranked BiH in the group of countries with the
fastest growth in the upcoming period, and according to these forecasts, it will
be the third country in the world in terms of tourism growth by 2020 (World
Tourism Organization, 2005) .
In this paper, authors analyze the current state of rural tourism in the
territory of Bosnia and Herzegovina by interviewing major stakeholders on the
supply side and making recommendations for the sustainable development of
this type of tourism.

Literature review – rural areas in Bosnia and Herzegovina

Bosnia and Herzegovina can be divided into urban and rural areas,
which differ by size of settlements and characteristics of municipalities. By size
of settlements, the division is directly linked to agriculture, infrastructure and
local services, and there is a division between villages and larger settlements.
Rural areas in BiH include more than 80% of the territory of the country and
are inhabited by more than half of the population (MoFTER, 2009). About 30%
of the population is engaged in agricultural production on small farms with low
productivity (Berjan et al., 2010).
From Table 1, it can be seen that the unemployment rate in rural areas
is much higher than in urban areas, and income per capita is significantly lower
than income per capita in urban areas.

Agro-knowledge Journal, vol. 18, no. 4, 2017, 237-248 239

 In rural areas there is a low density of population and in these areas are
the lowest incomes, highest unemployment, poorly developed infrastructure
and low level of public finances. These problems affect the faster movement of
young people from rural areas to urban areas.

Tab. 1. Comparison of urban and rural areas of Bosnia and Herzegovina by specific
indicators
Поређење градских и сеоских зона Босне и Херцеговине по одређеним
индикаторима
Smaller cities and
INDICATOR / Big cities /
villages / Мањи
Индикатор Већи градови
градови и села
Net migration per 100.000 inhabitants 36 14
Share of economically active population 35% 29%
Unemployment rate 31% 50%
Average net salary BAM 895 BAM 715
GDP per capita BAM 10.460 BAM 4.730
Source: http://hdr.undp.org/sites/default/files/nhdr_bih_web.pdf

The percentage of the population living below the poverty line is

significantly higher in rural (18%) than in urban areas (11%). Population living
in poverty live most commonly in smaller communities, which suffered
significant consequences due to the war (during the nineties of the twentieth
century). In the Republic of Srpska, the percentage of poverty in the non-urban
areas is significantly more pronounced, and in the Federation is approximately
equal: 16% of the poor live in non-urban, and 15% live in the urban areas
(http://www.europartnersearch.net).
The strong rural economy and strong rural communities are crucial for
the future social, political and economic stability of the country, as well as the
prosperity of BiH. This means that the rural economy has several tasks that are
of great importance for the development of the entire BiH and the development
of agribusiness (and rural tourism):
 to strengthen the domestic market by reducing the imbalance in food trade;
 to provide opportunities for generating income in the agriculture sector and
 to provide adequate amounts of healthy food at competitive prices.

Rural areas of Bosnia and Herzegovina are recognizable by the richness

of natural landscapes and the richness of biodiversity. Many Bosnian valuable
natural resources have been preserved, for example: canyons (Rakitnice and
Krušnice), bird reserves (Hutovo blato and Bardača), Perućica rainforest, lakes
(Blidinje, Prokoško, Šatorsko and Boračko), waterfalls (Kravice, Skakavac, and
Kozica), Una river with its waterfalls, the upper stream of Neretva.

240 Agroznanje, vol. 18, br. 4, 2017, 237-248

 Regarding rural areas of BiH, tourism can be developed in two
directions: development within existing villages (accommodation of tourists in
facilities located within or near the house where the host lives) and second -
activation of villages that are partly or completely abandoned (through their
transformation into a village) where tourists would be accommodated in
renovated authentic facilities.

Material and Methods

In this paper, survey research covered all those tourism experts who
have the knowledge and/or experience relevant to the subject, and whose area
of research and action is related to rural tourism and competitiveness of tourist
destinations. In Bosnia and Herzegovina, interviewed tourism experts are as
follows: teaching staff at higher education institutions, employees of the tourist
organizations, employees of national and provincial institutions of importance
for the development of tourism, tourism managers of travel agencies, owners of
tourism enterprises in rural areas (farms, restaurants, ethno-houses, museums,
wineries, souvenir shops, event organizers) and others (societies, associations,
clusters).
Tourism experts from Bosnia and Herzegovina were asked to assess the
current state of 24 attributes which affect/could affect the competitiveness of
rural tourism destinations in Bosnia. Likert scale of five scores was used, where
"1" means very bad condition of the attribute, score "2" bad condition, "3"
average condition, "4" very well and "5" excellent condition of the attribute. A
total of 143 tourism experts on the supply side agreed to participate in the
survey and to give opinion on the status of key resources and attractions that
could have a significant impact on the competitiveness of the rural tourism
sector in Bosnia and Herzegovina.
The survey was conducted in two ways - a personal interview
(technique of "face to face") and by sending a questionnaire via e-mail. By
clicking on the link within the e-mail, an on-line questionnaire was opened in
the form of a web page. Upon completion of the questionnaire, the data is
automatically sent to the database provided by Google through the Docs
service.
The survey was anonymous and the names and surnames of the
respondents were not relevant for the research. Selected tourism experts in
Bosnia and Herzegovina were interviewed in the period from June to the first
half of October 2016. The response rate was about 50%.
Statistical analysis of the data collected through the survey were done
in the software statistical program SPSS 20.

Agro-knowledge Journal, vol. 18, no. 4, 2017, 237-248 241

 Results and Discussion

In Table 2 results (mean, standard deviation) are presented for Bosnia

and Herzegovina. The values of the mean, or average marks of attributes ranged
from 2.4 (the lowest value) to 4.2 (maximum value). No items were rated
extremely negative or extremely positive.
The highest average ratings have attributes: Favorable weather
conditions for the development of rural tourism, Attractiveness of a rural
destination as a multicultural environment, Diversity of local culinary products,
and the feeling of safety and security in the entire destination and the feeling of
safety and security in agro-tourism facility.
Bosnia and Herzegovina is located in the continental climate zone and
because of its position, its climatic conditions are favorable and moderate,
without any temperature extremes. Climatic conditions are important factors to
be taken into account when taking a decision on a destination for tourists who
will travel, but also affect the performance of tourism enterprises. Climatic
conditions may be an indirect element that will make tourism activities possible
and enjoyable.
Weather conditions, which tourists are exposed to during their stay at a
destination, are important for several reasons. First of all, the weather allows to
organize certain activities, or they can encourage tourists to participate in them.
Also, the safety of tourists depends on the weather conditions (extreme weather
conditions can jeopardize the safety of tourists). Tourism experts have
estimated that the climate conditions are suitable for the development of rural
tourism in Bosnia and Herzegovina, and that the appropriate tourist offer
(activities outdoors or indoors consistent with weather conditions) should be
used in order to overcome the problem of seasonality.
The importance of gastronomy for rural areas of Bosnia and
Herzegovina can be twofold - food preparation, i.e. local specialties respecting
the authenticity of hearthstone and hospitality protocol can bring tangible asset
hosts, while on the other side gastronomy with its activities can greatly
contribute to the attractiveness of content during the stay and thus enrich the
experience of visitors.
It is extremely important that the factor “Safety and Security” received
a high rating from tourism experts because this factor is one of the primary
condition for the successful development of rural tourism destination.
Competitiveness of Bosnia and Herzegovina as a destination for rural tourism
can be achieved if the tourists indicate that they will feel safe and secure during
their stay at the selected destination or the particular facility.

242 Agroznanje, vol. 18, br. 4, 2017, 237-248

Tab. 2. Descriptive statistics for individual attributes for determinant "Key
resources and attractions"
Дескриптивна статистика за појединачне особине детерминанте
"Кључни ресурси и атракције"
Determinant “Key Resources and attractions”
Factor Attributes M SD
Preserved nature and the beauty of the landscape of
3.5368 0.78795
rural environment
The physical Suitable climatic conditions for the development of
4.2721 0.68277
and rural tourism
geographical The use of rivers, lakes and canals in rural tourism 2.6103 1.05531
elements of the The diversity of flora and fauna 3.0956 1.00280
environment Presence of protected natural areas and natural parks
3.9853 0.76966
in the rural tourism offer
Tourist offer of local museums and galleries 3.0882 0.99978
Preservation of rural architecture 2.9779 0.97727
Cultural Cultivating folk traditions (art, music, folklore,
heritage 3.7059 0.93585
costumes, customs)
The attractiveness of rural destinations as a
4.3309 0.75085
multicultural environment
Opportunities Opportunities for sports and recreational activities in
3.8750 0.93045
for sport, nature
entertainment The quality and originality of the events and
3.6103 0.87070
and recreation festivals
The quantity of accommodation facilities in rural areas 2.9706 0.82499
Accommodation The quality of services in accommodation facilities
3.2426 0.78407
capacities and in rural areas
their The attractiveness of properties (e.g. the traditional
authenticity building materials, animals, the possibility of insight 3.0662 0.92057
into production)
The variety of local culinary products 4.0221 0.89829
Gastronomy
The authenticity of local gastronomic products 3.9118 0.88167
The quality of basic infrastructure in rural areas (e.g.
3.2941 0.94373
electricity and telephone network, water supply)
The quality of basic infrastructure in the agro-
General tourism object (e.g. electricity and telephone 3.3603 0.89998
infrastructure network, water supply)
and tourism The quality of the rural road network 2.6471 0.98529
superstructure Cleanliness and tidiness of the place 2.9338 0.95996
Travel signaling (e.g., information boards, signposts) 2.4559 0.94960
Tourist facilities superstructure (e.g., restaurants, cultural
2.9044 0.79702
institutions, sports and recreational centers)
The feeling of safety and security in the entire
4.0294 0.80683
Safety and destination
security The feeling of safety and security in agro-tourism
4.0662 0.79071
facility
Source: Authors, based on analysis of data from the survey research

Agro-knowledge Journal, vol. 18, no. 4, 2017, 237-248 243

 Attributes of the determinants “Key Resources and Attractions” that
received the highest average ratings can be considered as primary competitive
advantage of Bosnia and Herzegovina, and a multicultural, rich and authentic
gastronomic offer and a sense of security and safety can be particularly
attractive factors for foreign visitors.
The lowest average ratings (from 2.45 to 2.64) are with attributes: Use
of rivers, lakes and canals in rural tourism, Quality of rural road network and
Travel signaling (e.g. information boards, signposts).
The results showed that while Bosnia and Herzegovina has significant
water resources (rivers, lakes and canals), they are for the development of
tourism in rural areas insufficiently or not at all used. Recreational, aesthetic
and other values of these lakes form a key component of the offer of activities
for tourists during their stay in rural tourist destinations.
Attributes that may pose a major obstacle to the further development of
rural tourism in Bosnia and Herzegovina were the poor quality of the rural road
network and lack of tourist signs in rural areas. Transport infrastructure is
poorly developed in almost all rural municipalities. Constructed roads of all
categories are in poor condition and traffic signs are inadequate and
insufficient. A significant part of the roads are not yet paved, pavements and
asphalted roads are dilapidated and damaged. A particular problem may be a
lack of inadequate approach to agro-tourism facilities. In order to enhance the
value of this attribute, it is necessary to signpost the rural tourist destinations
which include: mark board, tourist route direction arrow and tourist information
boards.
Special attention should be paid to the quality of rural areas, since the
future tourism development depends on this. In some EU countries, studies
have shown that the quality of rural areas has a significant impact on the
increase in the number of tourists, as well as the increase in the employment
rate of young people in particular. In order to include rural areas in the tourist
offer, some prerequisites are necessary: it is necessary to apply appropriate
standards and categorization of services, the classification of minimum
conditions and categorization of tourist facilities, investment in infrastructure
(road networks) prevention of uncontrolled urbanization, education of rural
hosts engaged in tourism activity, to improve equipment of space and facilities,
or preparation of the population for accepting guests. Residents - hosts must
have the opportunity and desire to provide quality services and meet the needs
of guests who reside in rural households. Also, a quality of tourist product that
hosts can offer to the guests is important. In addition to accommodation
facilities, hosts can offer: local food, wine, brandy, cultural events and heritage
(celebrations, folklore), health tourism (various mineral spas), hunting tourism.

244 Agroznanje, vol. 18, br. 4, 2017, 237-248

 Food production and trade are also important in the tourism offer,
whether it is the participation of tourists in harvesting, sowing, picking fruit,
collecting forest fruits, working on farms, riding horses, tasting products such
as jam, honey and other products and drinks, livestock dairying or visit
households only for the purpose of consuming and purchasing food and drinks.
The food offer includes shopping at farms, the purchase of local and
regional products, or hand-made gifts. It is necessary to point out to the rural
hosts economic justification for dealing with this activity, through the sale of
tourism products on the domestic market.
The development of rural tourism in BiH will depend on the impact of
four groups of factors:
1. environmental factors (global, European and regional);
2. market factors in the country and in the target markets,
3. entrepreneurial factors and their strengths and motivations
for activities in the tourism sector,
4. government-states, which should create an incentive environment and
provide public resources for the development of tourism.
It is important to bear in mind the fact that the mentioned factors of
tourism development must operate at the same time and be synchronized, in
order to achieve the improvement of tourism in BiH. Only in this way,
integrated activities create the necessary (pre-) conditions for the profitable
operation of the tourism sector and successful tourist positioning of the state on
tourism market.

Conclusion

Rural tourism sector in Bosnia and Herzegovina has an abundance of

natural resources and special attractions. However, ancillary services and
facilities are very limited and this may affect the reduction of attractiveness,
and the possibilities for the sector to highlight its potential. In the absence of
supporting infrastructure and resources, the outcome for the destination can
range from the provision of services under the expectations of visitors to major
failures, thus preventing long-term development of the destination.
Three main elements have the potential to increase the length of stay
and tourist spending, and these are the folk tradition, gastronomy and
opportunities for sports and recreational activities in nature. Development of
the key elements can stimulate visitors to stay longer, spend more money and
participate in a wider range of activities.

Agro-knowledge Journal, vol. 18, no. 4, 2017, 237-248 245

 Development of Bosnia's tourism sector in recent years was based on
the construction of physical infrastructure. Elements such as the quality of
services, training programs for human resources development, fostering
creativity and innovation and creating new and interesting tourism products,
were ignored. The development of tourist destination management, which is
one of the most important factors for competitiveness, was unsuccessful.
It is possible that the rural tourism sector does not receive sufficient
benefit from government support for the planned development of the
destination, and that marketing efforts do not go in the desired direction. This
suggests that a rural development strategy should have a special bond with
resources and attractions of the destination, that priority should be given to
maintaining all aspects of safety and security, continuous improvement of
services, the use of benefits of a multicultural environment, diversity of
culinary products, as well as the application of the principles of sustainability in
environmental management. Increasingly recognized and accepted is the need
to manage destination resources in a sustainable way in order to preserve them
for future generations.
Rural tourism and other forms of tourism involve many business
entities (entities that provide accommodation services, food etc.) and
consumption of these services occurs when a visitor is at the destination. The
more positive perception of tourism services, the stronger the feeling of quality.
The functional aspect of quality of services is likely to be more influential than
the technical aspects, which means that there is a need for highly skilled labor.
Special importance during the development of human resources in rural areas
of Bosnia and Herzegovina, should be given to the training of personnel,
ranging from manufacturing to management level. From the perspective of
holders of supply, quality management services and human resource
development are co-dependent variables in support of excellence in service.
Destination marketing is crucial and should focus on new products and market
development.

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Agro-knowledge Journal, vol. 18, no. 4, 2017, 237-248 247

 Могућности за одрживи развој руралног туризма у
Босни и Херцеговини
Дуња Демировић1, Адриана Радосавац2

Универзитет у Новом Саду, Природно-математички факултет, Србија

1
2
Универзитет Привредна Академија, Факултет за економију и инжењерски
менаџмент у Новом Саду, Србија

Сажетак

Рурална подручја у Босни и Херцеговини обухватају више од 80%

територије земље и у њима живи више од половине становништва. У
циљу очувања природног окружења, традиција и обичаја, рурални
туризам се развија и рурална подручја се активирају у туристичке сврхе.
Развој руралног туризма смањује незапосленост, смањује кретање из села
у град, дозвољава процену рада жена у сеоским домаћинствима, повећава
приходе од продаје роба и услуга, омогућава развој локалне заједнице.
Аутори у раду анализирају тренутно стање руралног туризма на
територији Босне и Херцеговине и дају препоруке за његов одрживи
развој, а на основу мишљења туристичких експерата на страни понуде.
Анализа показује да су основни проблеми који могу успорити развој
руралног туризма: недостатак подстицаја за развој и побољшање
државних и владиних институција, недостатак субвенција за младе људе
који желе да живе и раде на селу, немогућност да користе квалитетно
земљиште за не-пољопривредне сврхе, недостатак дефинисаних стандарда
за рурални развој и неразвијеност инфраструктуре.

Кључне ријечи: рурални туризам, одрживи развој, Босна и Херцеговина

Adriana Radosavac Received: September 24, 2017

E-mail address: [email protected] Accepted: November 17, 2017

248 Agroznanje, vol. 18, br. 4, 2017, 237-248

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