Annual report on tourism 2006

Slovak Republic

1. Administrative and territorial organisation of tourism. Indication on recent changes

On 1 November 2006, the former Tourism Department of the Ministry of Economy of the Slovak Republic was transformed into the Tourism Section. The Section consists of three departments: Department of Tourism Policy, Department of Foreign Relations in Tourism and Department of Regional Development in Tourism.

2. Co-operation with the tourism industry and the civil society. Organisms

Tourism Section of the Ministry of Economy co-operates with professional associations (Association of Hotels and Restaurants of the Slovak Republic, Slovak Association of Travel Agencies and Tour-operators, Association of Tourist Guides, etc.) dealing with tourism and representing business interests in the preparation of conceptual, strategic and legislative documents relating tourism. The aim is to incorporate business and professional viewpoints into these documents in order to improve conditions and environment for the tourism development.

Regular working meetings with representatives of self-governing regions responsible for tourism-related issues were held in 2006. Their purpose was to coordinate the development of tourism in particular regions.

The co-operation with other ministries, civil society and tourism industry is also done through working groups with purpose to deal with specific issues from the field of tourism.

3. Main lines of the national tourism policy. Overview of main relevant measures at regional level

In its policy manifesto of 2006, the new Slovak Government pledged to create conditions for developing the tourism and hotel industry with the objective to increase the share of this economic sector in generation of the nation's gross domestic product. In this connection it will establish a special 'satellite account' of tourism with the objective of quantifying its real results and its contribution to the gross domestic product.

The Government shall determine the principles for the State policy of development of tourism as an area of public interest, emphasising the support of the development and significance of domestic and incoming foreign tourism. The Government shall re-evaluate the Strategy of Development of Tourism of the Slovak Republic until 2013 and prepare comprehensive legislation for securing implementation of the State policy with regard to the development of tourism, taking into consideration the institutionalisation of this sector.

The Government shall support, by means of motivating economic and financial instruments, investments into tourism, into the hotel industry, as well as entrepreneurial entities focusing on incoming tourism, with the objective to increase the quality and comprehensive scale of offered services.

The Government will create a system of financial support of activities of self-governing bodies, municipalities, towns and business entities, also with the help of EU Structural Funds, when developing the fundamental forms of tourism. These include town and cultural tourism, the spa industry, winter recreational centres, the year-round use of high mountainous areas, summer recreational centres and rural tourism.

The Government will support the acceleration of the tasks connected with the new zoning of protected areas. This should ensure the compatibility of maintaining the objectives of nature protection as well as fostering entrepreneurial activities focused on development of tourism, and at the same time preservation of natural and cultural values of the protected areas for future generations.

4. Legislative and regulatory environment

Act on package tours and conditions of doing business by travel offices and travel agencies No. 281/2001 Coll. of Laws was amended by the Act No 186/2006 Coll. of Laws in the year 2006.

5. Implementation of Community legislation and measures in the field of tourism and of other major Community measures affecting tourism

No changes reported.

6. Management of resources supporting tourism development

Financing of tourism in 2006: (in thousands SKK)

	State Budget	EU Structural Funds
Activities of the Ministry of Economy in tourism (NTA)	1 000	-
Tourism Development Support Scheme	15 616	-
Slovak Tourist Board – administration (NTO)	85 616	-
Support of entrepreneurial activities in tourism	80 763	94 223
Support of tourism infrastructure development	134 605	504 769
Support of promotion activities and tourist information system	53 842	161 526

The most important form of support of tourism in Slovakia is created by EU structural funds. The support of tourism is one of the two priorities of the Sectoral Operational Programme Industry and Services for the years 2004 – 2006, whereas such support is executed by three measures. 23 projects in the total amount of SKK 1.464 billion were approved in order to support activities of public sector. The support of business activities in tourism, namely of small and middle entrepreneurs, was executed via 40 selected projects in the total amount of irreclaimable financial contribution of SKK 1.30 billion. STB (Slovak Tourist Board) is the direct recipient of the support within the scope of the third measure. With the budget funds in the amount of more than SKK 600 million, STB provides for two basic tasks: namely execution of propagation and promotional activities of Slovakia as country of tourism and creation of National United Tourism Information System in the Slovak Republic.

Another form of support consisted of the Scheme of Support of Tourism Development in the Slovak Republic which had a nature of scheme „de minimis“ and was covered financially from the sources of the state budget. 66 projects were approved for the execution from 2004 until the end of 2006 with irreclaimable financial contribution in the amount of more than SKK 106 million. The execution of supported projects brought 920 beds, 2,522 table seats, 382 permanent jobs and 35 seasonal jobs. Up to 17 projects were focused on artificial snow preparation of ski lifts and purchase of equipment for ski slopes treatment.

7. Economic trends and major developments in the sector of the tourism industry

According to the data of the Statistical Office of the Slovak Republic the Gross Domestic Product in nominal value of SKK 1,636.3 billion was produced in 2006, which is 11.2 % more than in 2005. GDP grew by 8.3 % in constant prices. The production of the Gross Domestic Product increased, apart from raw materials exploitation (decrease by SKK 1.5 billion), in any other sector. The increase was influenced mainly by increase of the added value in constant prices from industrial production (plus SKK 37 billion) and also from commerce, hotels and restaurants (plus SKK 28.5 billion), which is important for the tourism.

In terms of tourism important final consumption of households increased by 11.7 % (by 1.7 p. p.) in current prices in 2006 compared to the same period of 2005. The progress relates mainly to the increase of the gross disposable income (by 12 %). As to the shares, the largest part of the private consumption was created by the purchase of food costs (21.8 %), but the highest dynamics of growth was achieved by hotels and restaurants (by 13.4 %).

The increase of employment accompanied by the decrease of unemployment was still prevailing in the labour market. In average, the number of employees in economy increased by 2.2 % (by 73,200) to 2,148,200 in 2006 (the same rate of growth was in 2005). The yearly growth of employment continued in the construction industry by 9.3 %, high yearly dynamics was recorded also in hotels and restaurants by 7.8 %.

The share of international tourism receipts on GDP in Slovakia was 2,7 % in 2006 (2,6 % in 2005). International tourism receipts recorded EUR 1 207,7 mil. in 2006 which is an increase by 24,2 % compared to 2005. International tourism expenditures reached EUR 841,6 mil. in 2006 (EUR 679,8 mil. in 2005).

The number of tourists increased by 4,5 percent over 2005 to more than 3,5 million in 2006. The number of foreign tourists to Slovakia rose to 1 611 808, which is an increase of 6,4 percent year-on-year.

In 2006, 2 490 facilities provided accommodation services in Slovakia (2 446 in 2005). In total they operated 48 173 rooms with 124 300 beds.

The total number of entrepreneurs in tourism in Slovakia in 2006 was 19 504 which is a decline in comparison with 2005 by 3,7 percent.

According to the statistics the number of employees in the field of tourism (accommodation establishments, restaurants and catering) was 101,8 thousand in 2006 (90,3 thousand in 2005) which is 4,4 % of the total number of employees (4,1 % in 2005).

STATISTICS ON TOURISM IN SLOVAKIA IN YEAR 2006/2005
INDICATOR	2005	2006	INDEX 06/05
International Tourism Receipts (mil. SKK)	37 529,1	44 985,2*)	119,9
(mil. USD)	1 209,8	1 513,4*)	125,1
(mil. EUR)	972,4	1 207,7*)	124,2
International Tourism Expenditures (mil. SKK)	26 234,9	31 349,4*)	119,5
(mil. USD)	845,7	1 054,7*)	124,7
(mil. EUR)	679,8	841,6*)	123,8
Balance of International Tourism (mil. SKK)	11 294,2	13 635,8	120,7
(mil. USD)	364,1	458,7*)	126,0
(mil. EUR)	292,6	366,1*)	125,1
Share of International Tourism Receipts on GDP (%)	2,6	2,7*)	103,8
Share of Int. Receipts on Export of Services (%)	27,5	28,0*)	101,8
Share of Int. Receipts on Export (Goods&Services) (%)	3,3	3,2*)	97,0
Number of Foreign Visitors /crossing the border/	29 395 628	30 592 263	104,1
Number of Slovak Citizens Travelling Abroad /border/	22 405 082	22 688 078	101,3
Total Number of Tourists /Accommodated Visitors/	3 428 083	3 583 879	104,5
of which: Foreign	1 514 980	1 611 808	106,4
Domestic	1 913 103	1 972 071	103,1
Total Number of Nights	10 732 754	11 137 565	103,8
of which: Foreign	4 872 042	5 133 533	105,4
Domestic	5 860 712	6 004 032	102,4
Average Length of Stay (Nights)	3,1	3,1	100,0
of which: Foreign	3,2	3,2	100,0
Domestic	3,1	3,0	96,8
Total Number of Accommodation Establishments	2 446	2 490	101,8
of which: Hotels, Motels, Boatels	478	485	101,5
Boarding Houses	407	437	107,4
Tourist Residences	301	294	97,7
Cottage Colonies	66	68	103,0
Other Collective Establ.(Camping and Others)	764	759	99,3
Private Accommodation	430	447	104,0
Total Number of Rooms	47 666	48 173	101,1
of which: Hotels, Motels, Boatels	22 914	22 496	98,2
Boarding Houses	5 317	5 964	112,2
Tourist Residence	5 613	5 703	101,6
Cottage Colonies	1 844	1 785	96,8
Other Collective Establ.(Camping and Others)	10 508	10 679	101,6
Private Accommodation	1 470	1 546	105,2
Total Number of Bed places	122 612	124 323	101,4
of which: Hotels, Motels, Boatels	52 524	51 816	98,7
Boarding Houses	13 496	15 289	113,3
Tourist Residences	17 156	17 037	99,3
Cottage Colonies	6 917	6 894	99,7
Other Collective Establ.(Camping and Others)	28 299	28 803	101,8
Private Accommodation	4 220	4 484	106,3
Number of Entrepreneurs in Tourism according to the Branch Classification of Economic Activities – NACE	20 254	19 504	96,3

^{*) preliminary data}

Source: National Bank of Slovakia, Statistical Office of the Slovak Republic

The number of foreign tourists in Slovakia grows with a higher rate and also shows higher number of overnight stays and a bit longer time of the overnight stays as in case of domestic tourists. The ranking of the main sending countries is: Czech Republic, Poland, Germany and Hungary.

Most Important Sending Countries

Source: Statistical Office of the Slovak Republic

Positive aspects:

- new centres for water sports activities

- joint marketing activities on overseas markets within the Visegrad countries (V4)

- utilisation of possibilities for seniors out of season.

8. International and cross-border activities

Slovakia as a member of main international tourism organisations and associations continued its co-operation with UNWTO, OECD Tourism Committee, Die Donau, and CEI Tourism Committee.

V4 activities:

The tourism cooperation within V-4 Countries (Visegrad Countries - Czech Republic, Hungary, Poland, and Slovakia) was fruitful in 2006. The following common activities were carried out:

– joint promotion and marketing activities on overseas markets – fairs and exhibitions in Japan and China: JATA Tokyo, CITM Shanghai

– infotrip for Japanese journalists and touroperators

– market research and statistical data exchange - statistical brochure 2005

Bilateral cooperation:

- 1st session of Intergovernmental commission for economical, commercial, scientific and technical cooperation between the Slovak Republic and Serbia and Monte Negro

- 6^th session of Joint commission for economical, scientific and technical cooperation between the Ministry of Economy of the Slovak Republic and the Government of Moscow

- 11^th session of Joint commission for commercial, economical, scientific, technical, cultural and humanitarian cooperation between the Ministry of Economy of the Slovak Republic and the Government of Saint Petersburg

- 7^th plenary session of Joint commission for commercial, economical, scientific and technical cooperation between the Ministry of Economy of the Slovak Republic and the Ministry of Commerce, Foreign and Economical Cooperation of the Tartar Republic.

Cross-border cooperation:

- Participation of the Slovak Tourist Board in INTERREG IIIC East – Project – “Tourism

Partners Europe”.

9. Events and publications, including reports and analysis in the field of tourism, and other issues to be specified

Slovak Tourist Board (STB)

took part in 2006 in:

- 50 tourism fairs and exhibitions

organised:

- 22 tourism workshops

- 88 presentations

- 12 press conferences

- 62 infotrips and famtrips for 580 foreign journalists and touroperators

- 3 promotional and presentation road-show in China, Baltic states (Estonia, Latvia, Lithuania + Finland), Balkan countries (Croatia, Monte Negro, Macedonia, Serbia)

- a conference for ETC Member States “New Media Group” in April 2006 in Bratislava

issued:

- 16 new promotional brochures

- 7 regional maps

produced:

- 14 promotional multimedia CD ROMs

- 1 advertising promotional spot about Slovakia

carried out:

- 2 domestic media campaigns “Summer 2006” and “Winter 2006”

launched:

- a campaign called “Winter in Slovakia” aimed at attracting more foreign visitors to the country during the winter season

- a new website about Slovakia aimed at Chinese market www.welcome2slovakia.com.cn

For further information:

· Ministry of Economy of the Slovak Republic: www.economy.gov.sk

· Slovak Tourist Board: www.slovakiatourism.sk