Foreigners find Serbia more appealing - Hotel offer is getting better, infrastructure and grey market remain the biggest problems in tourism

Floods in May and extraordinary situation country-wide were threatening to endanger tourist year. However, the bottom line is that 2014 will be close to the last year’s level which was a record one in Serbian tourism.

According to the information of the National Bank of Serbia, foreign currency inflow for the first 11 months 2014 totals USD 1,17 billion which is 8,6% more than in the same period 2013, when we had the biggest amount ever.

The assistant minister of trade, tourism and telecommunications, Renata Pindzo, explains that recommendation of the World Tourist Organization was extremely important as well as United Nationas to the tourists to continue coming to our country since accidents did not hit the entire Serbia.

VP of the Government of Serbia and the minister of trade, tourism and telecommunications, Rasim Ljajic, expects that 2015 will be a record year in tourism both when it comes to profit and the number of tourists. As he says, it is a fact that for years Serbia has a two-digit growth of foreign tourists and that we have a fall of the domestic tourists’ number due to low purchasing power and floods in May and October.

Speaking about the plans for this year, Ljajic said that preparation of two important documents has been in progress – changes and amendments to the Law on tourism and Strategy of tourism development in the next ten years.

Airlines are of instrumental importance, the head of TOS, Gordana Plamenac, thinks.

Plamenac says it would be precious for Serbian tourism to have airlines towards the countries where our diaspora lives today, first of all North America and Canada.

Increasing number of hoteliers

In the last 5 years, 77 new hotels have opened in Serbia (328 of them operating), and only in Belgrade as the biggest construction site, we expect some of the biggest world chains such as Marriott or Hilton to start operating. Investors’ interest points out at the fact that Serbian capital has room for more accommodation capacities.

There is a paradox here for someone watching from the side. Namely, hoteliers complain owners of uncategorized suites (many of them operating unregistered) are killing their profit and on the other hand, we have an increasing number of new hotels. Do investors in hotels know more than we do? The authorities believe that when the chain such as Radisson BLU, Holiday Inn, Hilton or Marriott decides to come to our market, there is definitely good math since success reflects through profit solely. Apart from that, they think that hoteliers must understand that in each country there must be a suite accommodation as a kind of the cheapest accommodation. The ministry will work on the fight against grey market in tourism, it will take care everybody pay residential and other fees and market match will be effective for everything else.

Neighbors, the largest number of Russians and Germans

Last year in Serbia, 2.192.268 tourists visited Serbia which is at the same level as previous year while December saw increasing number of tourists of 4,1% compared to the same month 2013, the data of the Republic Statistical Bureau showed..

Last year our country saw decrease in the number of domestic tourists of 8% compared to previous 2013 while foreign tourists’ number increased by 12%. There were 6.086.275 overnight stays which is 7% less compared to 2013.

(Photo: Suzana Obradović)

Domestic guests spent their time mainly in spas and mountains while foreign guests were visiting Belgrade. Measured through overnight stays, domestic tourist in 2014 spent most of their time in Vrnjacka Banja, Zlatibor, Kopaonik and Belgrade.

Foreign guests spent most of their overnight stays in Belgrade, 10% more compared to last year. Novi Sad, Zlatibor and Vrnjacka Banja follow. The largest number of overnight stays in 2014 was generated by tourists from Bosnia and Herzegovina, 5% more compared to 2013 and tourists from Russia, Montenegro, Germany and Croatia follow.

December saw 4,1% more arrivals of tourists compared to 2013 while the number of overnight stays decreased by 8,5%. At the same time, the number of overnight stays of local tourists decreased by 15,3% compared to December 2013 and the number of foreign tourists’ overnight stays increased by 3,1%.

Arabs and Chinese among the most wanted

When it comes to markets where it would be good to work on promotion and attract citizens to come and see beauties of our country, China is one of the most interesting countries since it was estimated that in 2014, some 100 million Chinese travelled the world.

Serbia signed agreement on cooperation with China in 2009, formal and legal terms in public sector were fulfilled.

Changes to the Law on tourism

(Photo: Ivana Vuksa)

Changes to the Law on tourism have been aligned with the EU directives and with local legislation and especially with the Law on customers’ protection which will contribute to greater protection of users of tourist services. It was estimated by the participants of public discussions on the Draft of the Law on changes and amendments to the law on tourism which was held February 10 at the Serbian Chamber of Commerce.

Legal changes proscribe terms for the selection of the head of tourist organizations at all levels and the option that a tourist agency which lost license can compete again after 36 months has been introduced.

Jelena Djelic

Complete content of Topic-focused newsletter Tourism in Serbia – suitcase full of challenges is available HERE.