Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 787 DOI: 10.5817/CZ.MUNI.P210-6840-2014-102 GOALS OF TOURISM DEVELOPMENT IN SLOVAKIA IN THE CONTEXT OF REGIONAL DEVELOPMENT AND SELECTED TOURISM MARKETS CÍLE ROZVOJE CESTOVNÍHO RUCHU NA SLOVENSKU V KONTEXTU REGIONÁLNÍHO ROZVOJE A VYBRANÝCH TRHŮ CESTOVNÍHO RUCHU DOC. ING. ANDREJ MALACHOVSKÝ, PHD. Katedra cestovného ruchu a spoločného stravovania Ekonomická fakulta Univerzita Mateja Bela v Banskej Bystrici Department of Tourism and Hospitality Faculty of Economics Matej Bel University in Banská Bystrica * Tajovského 10, 975 90 Banská Bystrica, Slovak Republic E-mail: andrej.malachovsky@umb.sk Annotation Tourism in Slovakia needs to have correctly set growth objectives for its long-term development. On the one hand, these objectives must be based on the tourism offer in Slovakia and on the other hand, on the current and anticipated demand. Also, objectives for the development of tourism must respect the competitive position of Slovakia in international tourism. The quantitative aspect of tourism objectives is reflecting the growth rate predicted by the UNWTO for tourism in the world and in Europe. The aim of this paper is to highlight the interconnection of markets and targets in tourism in the context of regional development. The problem of Slovakia in international competition is slow growth and loss of key markets in tourism. Therefore, we investigate the source markets and propose priorities and development goals. For analysis, we use time series of international and Slovak tourism statistics. Key words tourism, goals of development, international competition, competitive advantage, tourism demand Anotácia Cestovný ruch na Slovensku potrebuje pre dlhodobý rozvoj správne stanovené ciele rastu. Tieto ciele musia byť založené na jednej strane na rešpektovaní strany ponuky ako aj na existujúcom a predpokladanom dopyte. Ciele tiež musia rešpektovať konkurenčnú pozíciu Slovenska v medzinárodnom cestovnom ruchu. Kvantitatívna stránka cieľov v cestovnom ruchu musí zohľadňovať rast, ktorý predpokladá UNWTO v cestovnom ruchu vo svete a v Európe. Cieľom príspevku je zdôrazniť prepojenie medzi cieľmi rozvoja cestovného ruchu a trhmi v cestovnom ruchu v kontexte regionálneho rozvoja. Problémom Slovenska je v medzinárodnej konkurencii pomalý rast a strata kľúčových trhov v cestovnom ruchu. Preto skúmame zdrojové trhy a navrhujeme priority a ciele rozvoja. Na analýzu používame časové rady medzinárodnej a slovenskej štatistiky cestovného ruchu. Kľúčové slová cestovný ruch, ciele rozvoja, medzinárodná konkurencia, konkurenčná výhoda, dopyt v cestovnom ruchu JEL classification: L83 Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 788 Introduction, material and methods The destination offers a complex product to the visitor and it has to adapt its activities to this concept. In marketing terms, the destination is a product and a subject in the tourism market exposed to the competition from other destinations with the same, similar or substitution product. The activities of the destination thus have to be planned and managed as a whole even if composed of independent economic subjects. Lack of respect for this basic principle leads to a significantly lower cost effectiveness and, in return, riskiness of finance from the public and private sector (Bednarczyk, Malachovský, Wszendybyl, 2012, p. 37). In this case, many providers of services miss grasping this background and they give priority to their short-term economic goals over medium- and long-term planning which gives stability to tourism activities and helps the country as a tourist destination. The planning of tourism as a destination requires creating a multifaceted system based on situational analysis of tourism, setting a vision and a mission, creating strategic and operational goals, and setting plans and strategies of tourism development. The significance of tourism for the economy and society was recognized in a wider extent only in the mid-20th century, when tourism and its development started to be coordinated on the national as well as multinational level (Gúčik, 2011, p. 9). This was the beginning of formulating goals of tourism development to maximize the effect of its development. J. Mundt (2004, p. 182) is one of the authors who deal with setting goals in the policy of tourism; he underlines their decisive role in the process of creating a tourism strategy and policy in a competitive environment. This paper researches long-term goals in the development of tourism in Slovakia from the point of view of source markets and competitiveness with the intent to point out the importance of setting the right goals in order to be successful in a competitive tourism market. The material for this study is taken from relevant literature sources, time series of international tourism statistics and time series of Slovak tourism statistics. Strategic analysis of markets as a basis of setting goals Strategic analysis is a starting point in creating a strategy for tourism development in Slovakia. In this process, setting the right mission and goals for tourism to enhance economic and social development is of primary importance (Donelly, Gibson, Ivanicevich, 1997, s. 426). Whatever the strategy, it is only a follow-up tool to attain the set goals. The major strategy of development is subsequently implemented through partial strategies as component parts of a tourism policy. Compared to a standard crisis, the deficiencies in the process of planning and setting goals have a long term impact on the demand, which in turn, leads to price fluctuations. Even though the instability in tourism depends to a high degree on the external economic environment, it also has roots in the internal system of tourism and is connected with unrealistic expectations as regards to the sector’s performance. Apart from the external economic environment, the supply of accommodation capacities in Slovakia has long been growing faster than the demand, which has a negative influence on prices, and subsequently on the profitability of accommodation facilities. Low effectiveness in tourism has had a similar impact on the economy as a whole. This situation could have been prevented if tourism had followed a stable and “best practices” model as it has been, for example, in Austria on the national, regional, and local level. Another problem resulting from these wrongly stated goals and mistakes in planning is a so-called structural crisis, and in tourism it had a character of uneven development of individual regions, with a persistently high share of the tourism sector confined to Bratislava and the High Tatras, especially with regards to the total number of nights. According to the basic theorem of structural crisis, such development points to ineffective or insufficient use of the tourism potential in other regions. Ineffective or insufficient use of the resources (potential) of tourism development implies a cumulation of supply and demand only to selected destinations. An insufficiently scattered supply to other regions with a potential of development increases the risk in the time of crisis. Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 789 Tables 1 and 2 show a comparison of selected tourism indicators in the world, Europe, and in Slovakia. The data in the tables prove that the development of tourism in Slovakia was primarily a result of a boom in the world and European economy based on various forms of debt. In the period between 1995 – 2012, the number of tourists in the world grew by 96 %, from 528 million to 1 035 million people, and the revenues by 172 %, from €308 billion to €837 billion. In this period, tourism in Europe was slower, as the number of tourists rose from 304 million in 1995 to 534 million in 2012, which is a 76 % rise, and the revenues went up by 108%, from €160 billion to €356 billion. In that period, the number of lodgings in Slovakia rose by 81%, which is only 5% more than in Europe, and the number of foreign guests rose by only 1% more than the rest of Europe (67% in Slovakia, to 1.5m guests). Slovakia recorded a much higher growth in foreign exchange earnings from tourism – 222 % compared to 123 % in Europe. However, the natural growth in price and expenditures per day, which are still much lower in Slovakia than in Europe and the world, must be considered here. On the whole, this development in Slovakia is only a little different from the general upward trend in European tourism. If we thus wanted to fulfill the different visions, strategies, and other documents adopted by the government after 1989 without critical consideration of the potential growth of tourism in our country, then we could state that the growth is identical to the development of competition and is not a result of any system measures. Such a rate of growth cannot bring a higher share of tourism as a percentage of GDP, an increase in revenues for regions, etc. A look into the break years in the development of Slovakia’s tourism brings interesting facts. The admission of the country to the European Union was a significant impetus for tourism; this was a time when the country recorded the highest growth. However, the crisis resulted in the largest decrease of a number of indicators. The important thing is how fast Europe’s tourism recovered from the crisis. By 2011, the revenues and the number of tourists reached the pre-crisis level of 2008, though, not yet in Slovakia. What matters is the admirable ability of tourism to recover and begin to grow again, and what is more, with a surprising increase in places that have a stabilized system such as Austria. Tab. 1: Comparison of selected indicators of tourism growth in the world, Europe and Slovakia in 1995 – 2012 Indicator/Year 1995 2000 2005 2008 2010 2011 2012 2012/95 World – million tourists 528 673 799 918 939 982 1 035 1,96 World – revenues in bn € 308 515 546 640 700 740 837 2,72 Europe – million tourists 304 385 440 486 475 504 534 1,76 Europe – revenues in bn € 160 251 281 321 309 333 356 2,23 SR – million lodgings 2.1 2.8 3.4 4.1 3.4 3.6 3,8 1,81 SR – million foreign guests 0.9 1.1 1.5 1.8 1.3 1.5 1,5 1,67 SR – million domestic guests 1.2 1.7 1.9 2.3 2.1 2.1 2,3 1,92 SR – revenues in bn Sk 18.5 19.9 37.5 55.2 50.7 52.6 59,4 3,22 SR – tourism balance in bn Sk 9 6.3 11.3 9.2 6.5 5.4 4,07 0,45 Source: Ministry of Transport, Construction and Regional Development of the SR; own elaboration In Table 2, we evaluate the growth rate of global, European, and Slovak tourism in different periods. It is obvious that all were growing the fastest before 2008. Tourism recovered to its original level almost as early as 2010 in Europe, but only as of lately has this process occurred in Slovakia (in 2010 Slovakia recorded the worst development in the balance of tourism). In 2005, this indicator reached a record level of 11.3 billion Slovak korunas, however, this situation has yet to be repeated. The reason was that the expenditures of the domestic population in foreign tourism grew faster than the revenues from inbound tourism. The data in Tables 1 and 2 prove to Slovakia that tourism can also be developed on the basis of cyclical effects, but then it is also subjected to such effects. If we are talking about a significant strengthening of tourism in the Slovak economy, then it must be developed at a higher rate than the European competition, but also the economy as a whole. Unless these two assumptions are met, all the declarations on the development of tourism can be taken only as empty words without ties to reality. Such promises could only be met through a policy of tourism as a system of organization and Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 790 financing this sector which is able to induce synergy and multiplication effects. As reported by Makovník (2009, s. 57) and Makovník and Dorocák (2012, s. 180), the weakness of strategic documents in tourism so far has been their application. Tab. 2: Comparison of selected indicators of tourism growth in the world, Europe and Slovakia in 1995 – 2012 (annual changes) Indicator/Year 2000/95 2005/00 2008/05 2010/08 2010/05 2011/10 2012/95 2008/95 World – tourists 1.27 1.19 1.15 1.02 1.18 1.05 1,96 1.74 World – revenues 1.67 1.06 1.17 1.09 1.28 1.06 2,72 2.08 Europe – tourists 1.27 1.14 1.10 0.98 1.08 1.06 1,76 1.60 Europe – revenues 1.57 1.12 1.14 0.96 1.10 1.08 2,23 2.01 SR – lodgings 1.33 1.21 1.21 0.83 1.00 1.06 1,81 1.95 SR – foreign guests 1.22 1.36 1.20 0.72 0.87 1.15 1,67 2.00 SR – domestic guests 1.42 1.12 1.21 0.91 1.11 1.00 1,92 1.92 SR – revenues 1.08 1.88 1.47 0.92 1.35 1.04 3,22 2.98 SR – tourism balance 0.70 1.79 0.81 0.71 0.58 0.83 0,45 1.02 Source: Ministry of Transport, Construction and Regional Development of the SR; own elaboration After 1989, tourism in Slovakia recorded a quantitative economic growth, yet, the important thing is the quality and internal structure of this growth, especially in recent years. In 2003 – 2008, the total number of overnight guests in Slovakia rose from 3.4 million to 4.1 million, which is a difference of 700 thousand people (Table 3). The annual growth rate in this peak period was thus 4%. In Europe, the number of tourists in the same period rose from 400 million to 486 million, which is the same rate of growth. This clearly demonstrates that the growth of tourism in Slovakia during the period was nothing more than a cyclical growth. In 2009, this growth was replaced by a fall to the level of 2003, which did not happen in any other European country. In 2003 – 2008, the number of domestic guests increased from 2 million to 2.3 million and foreign guests from 1.4 million to 1.8 million. The rapid growth of the number of foreign tourists was replaced by a slump to the level 1.3 million, which was a return to the period before 2003. Between 2003 and 2011, the share of domestic guests in hotels remained stable at 60% and foreign guests at an average of 40%. After 1990, the key markets for Slovakia in inbound tourism were neighbouring countries and Germany. As a consequence of a strong concentration on a small number of markets, in the crisis period, from 2009, Slovakia was not able to face strong short-term outages, as for example in the case of the Polish market after 2008. Together with other markets presented in Table 3, the share of key foreign markets in the total number of guests was about 30%. Together with the domestic market, these markets make 90% of the demand in tourism in Slovakia. The sharp decrease in the number of overnight guests from Hungary and Poland since 2009 was a combination of two dominant factors. First of all, it was the economic crisis which started in 2008, and the second factor was the introduction of the euro in Slovakia. With an account to the time of the introduction of the new currency, the exchange rate of the Slovak currency against the euro in early 2009 was around 36 Slovak korunas per 1 euro. On the introduction of the new currency, the SKK/EUR exchange rate was set at 30.126, which is a 20% gain within one year. Compared to the Czech Republic, Poland and Hungary are markets which react more sensitively to changes in exchange rate. The reason is a lower average income per head. In the case of Hungary, there are also other factors – a stronger impact of the economic crisis than in other countries and the slump of the forint. A stronger currency of the receiving country has the same effect in tourism as in the export of goods and services. The crisis had a similar impact on Czech guests who make the main source market; yet, this market has received only little attention. The German segment in Slovakia sees a long-term unfavourable development as it gradually loses the segment of guests from the former German Democratic Republic and Slovakia has failed to develop marketing activities in the German market. Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 791 Tab. 3: Guests in selected accommodation facilities in Slovakia – selected markets (2003 – 2012) Indicator/Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Guests 3 373 540 3 244 485 3 428 083 3 583 879 3 777 754 4 082 645 3 381 354 3 392 361 3 571 093 3 774 062 - of which domestic 1 986 749 1 843 296 1 913 103 1 972 071 2 093 228 2 316 116 2 083 279 2 065 722 2 110 732 2 246 562 - of which domestic in % 58.9 56.8 55.8 55.0 55.4 56.7 61.6 60.9 59.1 59.5 - of which foreign 1 386 791 1 401 189 1 514 980 1 611 808 1 684 526 1 766 529 1 298 075 1 326 639 1 460 361 1 527 500 -of which foreign in % 41.1 43.2 44.2 45.0 44.6 43.3 38.4 39.1 40.9 40.5 From countries Czech Republic 469 991 419 273 424 900 455 381 490 986 537 180 425 414 433 321 477 159 491 136 CZ in % 13.9 12.9 12.4 12.7 13.0 13.2 12.6 12.8 13.4 13.0 France 28 629 37 006 42 668 41 095 41 301 43 958 34 045 32 967 35 931 39 458 FR in % 0.8 1.1 1.2 1.1 1.1 1.1 1.0 1.0 1.0 1.0 Hungary 100 546 111 065 121 615 121 981 93 797 90 123 56 111 51 324 59 000 59 885 HU in % 3.0 3.4 3.5 3.4 2.5 2.2 1.7 1.5 1.7 1.6 Germany 175 746 188 067 194 158 190 422 176 059 164 694 133 989 131 674 133 431 135 897 GER in % 5.2 5.8 5.7 5.3 4.7 4.0 4.0 3.9 3.7 3.6 Poland 215 383 179 078 198 479 224 159 243 917 308 437 164 712 161 851 172 001 163 754 PL in % 6.4 5.5 5.8 6.3 6.5 7.6 4.9 4.8 4.8 4,3 Austria 51 365 55 609 55 630 60 560 62 661 62 052 50 065 51 678 58 983 65 621 AT in % 1.5 1.7 1.6 1.7 1.7 1.5 1.5 1.5 1.7 1.7 Russia 22 681 18 074 19 779 19 509 22 730 25 982 23 382 26 968 35 122 40 817 RUS in % 0.7 0.6 0.6 0.5 0.6 0.6 0.7 0.8 1.0 1.1 Great Britain 26 062 34 349 51 720 63 137 63 193 66 628 42 315 40 961 39 476 46 641 GB in % 0.8 1.1 1.5 1.8 1.7 1.6 1.3 1.2 1.1 1.2 Spain 5 464 9 022 9 665 11 429 14 166 17 693 17 549 16 926 19 635 17 969 ES in % 0.2 0.3 0.3 0.3 0.4 0.4 0.5 0.5 0.5 0.5 TOTAL 1 095 899 1 051 575 1 118 646 1 187 706 1 208 842 1 316 779 947 610 947 697 1 030 766 1 001 178 Total in % 32.5 32.4 32.6 33.1 32.0 32.3 28.0 27.9 28.9 26,5 Other coutries 290 892 349 614 396 334 424 102 475 684 449 750 350 465 378 942 429 595 526 322 Other c. in % 8.6 10.8 11.6 11.8 12.6 11.0 10.4 11.2 12.0 14,0 Source: Statistical Office of the SR 2013 and own elaboration Goals of the Development of Tourism in Slovakia in the Context of Regional Development The strategic goals of tourism development in Slovakia are based on our long-time research which was summarized in Strategic directions of tourism development (Bednarczyk, Malachovský, Wszendybyl, 2012). To offer a differentiated competitive product and improve its quality for target groups abroad and at home means to offer a differentiated product on the global market in relationship to the neighbouring countries which are our source markets. These considerations come from the example of Austria, which reports year-to-year increases in the number of guests from Poland, Czech Republic and Hungary. To support the creation of complex packages of services by tourist associations in the places of destination means to respect the product as a result of common effort of the public and private sector in tourism. This assumption of creating a successful offer in an atomized market has been verified by Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 792 theory and practice. In Slovakia, in accordance with legislation, there have already been established regional organizations of tourism financed from their own sources as well as state subsidies whose reponsibility is management and marketing of tourism in their respective region. To change gradually transit and one-day tourism to short-term and longer-term tourism means to prolong the stays of domestic and foreign guests. The competitor countries make similar efforts to moderate the opposite trend in development. To create a confident image of Slovakia as a tourist destination in existing and new markets is a goal resulting from a research of the World Travel and Tourism Research [12], which showed that Slovakia has a rather poor image in tourism on an international level. Our country did not succeed to make a more positive image in the decision-making of potential guests about which country to visit. To support a marketing offensive for participation in domestic tourism means to intensify marketing activities in the domestic tourism market. This is a standard marketing tool used also by competitor countries which could, in the case of Slovakia, slow down the long-term falling trend in the number of domestic guests. Tab. 4: Medium- and short-term goals of the strategy of tourism in Slovakia Medium-term goals (up to three years) Short-term goals (up to one or two years) § Offer of a differentiated competitive product and improvement of its quality for target groups abroad and at home, § Support of creating complex packages of services by tourist associations in the places of destination, § Gradual change from transit and one-day tourism to short-term and longer-term tourism, § Confident creation of Slovakia’s image as a tourist destination in existing and new markets, § Support for a marketing offensive for the participation in domestic tourism, § Gradual adoption of particular laws to regulate the development and enterprise in tourism, § Establishment of the national information system and its connection to global information systems and systems of reservation, § Stimulating inbound foreign tourism organized by travel agencies, § Support of cross-border cooperation in creating regional tourist products. Completing the ancillary equipment in destinations in order to create a complex differentiated tourist product, Coordination of marketing activities of the Slovak Tourist Board at home and abroad as a partner of tourism subjects in Slovakia, Gradual transition from global promotion of Slovakia as a tourist destination to a differentiated promotion respecting the specific needs of target groups, More intensive promotion and support of domestic tourism in electronic and mass media, More intensive education of the population toward the development of tourism and lifelong education of the staff in tourism, Organizing and stimulating competition of tourist destinations in the creation and protection of the environment, Support of the production and distribution of original souvenirs and tourist literature, postcards with tourist motives and official logo of the Slovak Republic, An allowance for domestic tourism from employers compensated by a tax relief, Providing a subsidized loan for purchasing a holiday at home and support for social tourism, Marketing activities focused on research of the existing target market and potential markets in foreign tourism, More intensive activity of foreign representations of the Slovak Tourist Board in key sending countries (Czech Republic, Germany, Poland, Hungary, Austria), Monitoring and influencing the quality of tourist services, also through industrial unions and the Slovak Trade Inspection and the Association for Consumer Rights Protection, Increase of the safety of tourists in the territory of Slovakia, More stringent requirements in terms of qualifications for the award of concessions, especially for travel agencies, Coordination of tourism development activities by a central state administration in order to apply a uniform policy in the market, Establishment of a lottery for the benefit of tourism development with monetary and non-monetary prizes in promoting domestic tourism. Source: own elaboration based on BEDNARCZYK, M., MALACHOVSKÝ, A., WSZENDYBYL, E. 2012. Strategic directions of tourism development. Krakov : Jagellonian University Press, 2012. 157 s. ISBN 978-83-233-3427- 9 Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 793 To adopt gradually particular laws to regulate the development of enterprise in tourism is also a precondition of successful tourism development from an international point of view. Since tourism and its product is a common task for the public and private sector, it needs special legislation, similar to Austria and Switzerland. To establish the national information system and connect it to global information and reservation systems is an inevitable condition for success in international competition. Slovakia is lagging behind in the development of comprehensive information as for content, graphics and structure (Pompurová, 2011, s. 28). One of the essential requirements today is to improve the internet presentation of Slovakia from the part of the Slovak Tourist Board (SACR) and tourist regions. Stimulating inbound foreign tourism organized by travel agencies and supporting cross-border cooperation in creating regional tourist products result from a need to intensify the activities of travel agencies which are focusing only on passive tourism. Cross-border cooperation is a standard tool of tourism policy to support source markets from neighbouring countries, which are usually the most important source markets for the tourism of a particular country. The objective of the goals is to achieve the mission of tourism development in society (Porter, 1994, p. 28). At the same time, they are the focal point in the development of strategies. Strategic goals are formulated for different time periods, in most cases for one to five years. One-year goals are considered short-term, three-year goals medium-term and five-year goals long-term. In view of the rate of change of the external environment, formulating goals for a longer period than five years is not considered realistic (Pompurová, 2013). Following J. Papula (1993, p. 107), a goal is a desirable state to be achieved in the future which is measurable with appropriate qualitative or also quantitative indicators and documented by a schedule of accomplishment. Goals call for action and specify the results to be expected in fulfilling the mission; they are set for areas which have an impact on the performance and prosperity of the industry. Goals determine, above all, the position in the market, need for innovation, productivity of the industry, scope of responsibilities, relationship to the staff, and social responsibility. G. Sládek (1999, p. 136) maintains that a fully developed and competitive tourism market which will in the future be integrated into the European and world market is a strategic goal and it cannot be created in only a few years. It is a long-term process which requires support from the government, nongovernmental organizations, and public administration authorities as well as constructive cooperation of all the interested industries, regions, districts, communities, and business people. The strategic goals of tourism in Slovakia are based on an assessment of strengths and weaknesses of the dometic and international tourism market (Bednarczyk, Malachovský, Wszendybyl, 2012). The strategy envisions the implementation of these long-term goals (up to 5 years): § to restore dynamic growth of foreign exchange earnings from foreign tourism by 10% a year on average, which corresponds to the worldwide trend and which will allow a preserved share for Slovakia in the international tourism market), § to increase the number of foreign tourists (guests staying for at least one night) by 5% on average, § to increase the share of Slovakia in the European tourism market and penetration into new target markets, § to increase the participation of middle and lower social classes of the population in the domestic tourism market, § to increase the quality of services and quality of destinations. § Strategic goals are interrelated and have an influence on one another. In order to accomplish them successfully, it is necessary to formulate a number of goals for shorter periods. Medium- and short-term goals can be organized into a comprehensive scheme. In the span of three years, it is necessary to ensure the implementation of medium-term goals and in the span up to one year short-term goals. Sborník příspěvků XVII. mezinárodní kolokvium o regionálních vědách Hustopeče 18.–20. 6. 2014 794 In order to achieve medium-term goals, it is necessary to formulate short-term goals. Short-term goals are interrelated and one accomplished short-term goal has an influence on several medium-term goals. Short-term goals have a character of measures. The time span of their accomplishment is short, and thus they must be fulfilled almost simultaneously. An overview of the outlined medium-term and short-term goals is shown in Table 4. Slovakia has to set the goals of development in the context of the development in neighbouring countries, which are a direct competition, as well as countries with longer traditions of tourism development. The reason for such an evaluation and setting of goals is a higher degree of development as well as an opportunity to learn from the mistakes in development and thus have a chance to avoid them. We consider Austria and Switzerland two crucial countries in tourism from which it is possible to get inspiration in setting goals. The reason for our opinion is also the fact that the recent development in the Czech Republic, Poland and Hungary has been particularly marked by cyclical effects. Due to this fact, we do not consider the development in these countries an outcome of tourism policy and administratively set goals. The above-mentioned strategic goals set in the context of international competition are to contribute to a better development of regions. In the EU, Slovakia is one of the countries with the biggest regional disparities and at the same time, with the largest share of foreign capital in creating GDP. In standard market economies, tourism makes an integral part of the economy, to a large degree contributes to mitigating the impact of regional differences and creates job opportunities for the population. This is its irreplaceable role from a macroeconomic as well as regional point of view. In standard economies, tourism is a stabilizing factor of regions in the time of crisis, since small and medium-sized hotels are striving to survive and develop further in spite of the difficult economic situation. Conclusion Tourism in Slovakia after 1990 has recorded growth rates which were primarily a result of the economic boom in Europe. In order to achieve higher rates of growth than the competition in Europe, Slovakia must adopt and implement a set of long-term and short-term goals. At the same time, for key markets, it has to adapt the tourist product, stabilize these markets and gain new markets for existing and innovative products. 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