1. Assessment of tourism development with respect to territorial cohesion Pál Szabó PhD. (Pannon.Elemző Kft.)

2. I.Objectives of assessment II.Context of policy III.Development on national level IV.Development of Health Tourism in Eastern Hungary V.Development of the Lake Balaton Resort Area (LBRA) Content

3. Viewpoints of assessment (cohesion): 1.Assessment of development objectives 2.Assessment of developments 3.Assessment of development actors  Suggestions 7 Regional Operative Programme (ROP) Tourism development: touristic attractions, accomodation, touristic destination management (TDM) 2724 applications, 983 successful applications financial framework: 300 billion HUF, demand: about 407 billion HUF, awarded amount: about 213 billion HUF (08.2012) Three dimensions of assessment: - national level - health tourism in Eastern Hungary - Lake Balaton Resort Area Objectives of Assesment

4. Hungarian Tourism Act is not accepted yet the new Hungarian tourism development strategy the new National and Regional Development Plan: importance of tourism development, priority for health tourism Cohesion of objectives Context of Policy

5. The objectives of ROP are identical with the tourism development objectives of Hungary Seven ROP – toruism development objectives : -vertical and horizontal cohesion among the objectives -main sector preferences: cultural t., health t., etc. -quality accomodation, increasing the number of TDMs – common objectives -weak regional / local preferences -various vertical and horizontal coordinations  important to clarify the national strategy  need to strengthen the vertical partnership (planning, management)  need for spatial aspects of tourism development objectives National level – ROP touristic development 1

6. Share of resources for tourism development measures : -Attraction development (about 75%) -Accomodation development (about 20%) -TDM (about 5%) Regional differences in the share of tourism support National level – ROP touristic development 2

7. National level – ROP touristic development 3 Attraction development: - dominance of cultural, health and (!) ecotourism - few projects: territorially complex projects, complex experience  need to define, need for support - there was no prominent attraction development  need for prominent attraction development - less new developments, more further developments of existing attractions  enhancing project generation, promoting innovations - spatial aspects were not always applied  enforcing territorial cohesion (e.g. evaluation of applications - spatial perspective)

8. Accomodation development: - quality, in accordance with national objectives -one-sided, market tension -important: ex-ante evaluation - territorial concentration is unchanged  new developments: serious professional reasons; connected to tourist attractions - need for own resources - territorial differences  enforcing spatial aspects (regional, local)  territorial cohesion: coordination of attraction and accomodation development National level – ROP touristic development 4

9. Touristic Destination Management (TDM): - increasing the number of TDMs, according to national objectives - some problems in the development process but the system became operational (registration etc.) - little support but positive and perspective direction - established: in traditional touristic areas, antecedents - many questions: financing, the role of local authorities  need for legal clarification  enhancing: project generation National level – ROP touristic development 5

10. -most support – enterprises (about half of the applications); local governments, state organizations: priority projects -local governments – contractor or regulator?; profit or storing value?; local, territorial effects of developments -10% of project owners withdrew – effect of the crisis (?) -weak horizontal partnership (lack of relationships, lack of confidence, individual interests, lack of organizing force etc.) – support motivates... -appreciation: TDMs  applications for specific groups  support for multi-party projects National level – development actors

11. Critical element -faulty project planning (form, location, demand estimates) - t he number of visitors is less than expected -sometimes rigid appraisal rules of tenders, selection criteria (slippage of projects) -effects of economic crisis!  required: more realistic estimation of demand  need for a flexible, but rigorous application evaluation system National level - Financial Sustainability

12. Development of Health Tourism in Eastern Hungary Health Tourism in Eastern Hungary: -205 applications, 31 billion HUF -45 attractions, 26 accomodation, 3 TDM -territorial concentrations -Health Tourism: along strategy, but differences, problems -synergy: transport, urban regeneration, health development

13. Makó Mórahalom Nyíregyháza Cserkeszőlő Balmazújváros Mezőkövesd Berettyóújfalu Bogács Development of Health Tourism in Eastern Hungary - Spas

14. Spa development – local survey (8): - about 8.5 billion HUF (EU support: 4.1 billion HUF) - new spa (Makó), renovation, expansion, waterparks - high quality development - related developments in the settlements (not qualified medical sites yet; further development related to local destinations) - failure of accomodation development - variable number of visitors; time concentration slightly resolved - competition for domestic guests; what about foreigners? - project is considered a success locally: confidence - return of investment? Development of Health Tourism in Eastern Hungary - Results

15.  health tourism means more than creating a spa  stronger cooperation with health development  clarification: private and public health care  quality assurance (therapeutic effect), accreditation!  development of the classification system  support of the therapy place (complex medical forms and supporting units etc.)  territorial harmony (spatial dispersion /similar profiles/ - concentration /other profiles/; related accommodation - appropriate standard; fit in the environment etc.) Development of Health Tourism in Eastern Hungary - Suggestions

16. Development of the Lake Balaton Resort Area - Characteristics Lake Balaton Resort Area (touristic region) 179 settlements 274 000 inhabitants, 240 000 holiday home owners 20% of guest nights (4,3 million) priority in development planning (legislations) But! fragmented developments (in 3 regions and 3 ROPs) Lake Balaton Development Council (LBDC) its role as a coordinator!

17. Objectives: - extension of the season - reducing territorial concentration - strengthening quality tourism - sustainable tourism Development of the Lake Balaton Resort Area - Objectives, tools 1 Developments: 381 applications 153 successful applications 18 billion HUF support - little touristic support, fragmented, but emphasized in ROPs - successful applications, low-volume, results are small - complex developments are not typical - horizontal partnerships are not really enforced

18. Attractions: cultural, holiday, water tourism – extension of the season (as well) Accomodation: quality development, but of low-volume, support is important, private accomodation left behind TDM (28% of the total in Hungary): antecedents, varied output, successful Related developments: transport infrastructure developed, but there are deficiencies - extension of the season opening period is effective - territorial concentration did not decrease - quality tourism became more significant Development of the Lake Balaton Resort Area - Objectives, tools 2

19. éééé Development of the Lake Balaton Resort Area - Projects

20. Eight attraction developments – local survey: objective: extension of the season good project ideas new / further development preliminary market survey (demand, competitors) fit into strategy usually good developments new ones - visitors varied communication good accessibility appropriate related infrastructure varied connections with other developments fit into environment varied (bad) connections with competitors Development of the Lake Balaton Resort Area - Projects, results

21.  special status is to be taken into account  support according to touristic importance  support for featured attractions  integrated tourism development in the region  strenghten the coordination of developments (LBDC)  project generation  developments: seasonal and season extension  reducing territorial concentration, complex projects (connecting coastal and interior developments)  quantity and quality tourism (e.g. private accomodation)  transport development  marketing Development of the Lake Balaton Resort Area - Suggestions

22. Thank you for your attention!