DIRECT INVESTMENTS IN SPA TOURISM OF UNDEVELOPED RURAL REGIONS: CASE STUDY OF THE МUNICIPALITY OF KURŠUMLIJA

Tijana Ljubisavljević; Dragana Gnjatović

doi:10.5937/ekoPolj2001207L

Authors

Tijana Ljubisavljević University of Kragujevac, Faculty of Hotel Management and Tourism in Vrnjačka Banja http://orcid.org/0000-0002-3924-9896
Dragana Gnjatović Faculty of Hotel Management and Tourism in Vrnjačka Banja http://orcid.org/0000-0002-3589-517X

DOI:

https://doi.org/10.5937/ekoPolj2001207L

Keywords:

Direct investments, incentives, privatization, business environment, spa tourism, Municipality of Kursumlija

Abstract

In this paper we analyze the role of direct investments in spa tourism in undeveloped rural regions on the example of the Municipality of Kuršumlija. Namely, the Municipality of Kuršumlija belongs to the group of undeveloped regions. On its territory, three spa resorts are located. In order to explore the role of direct investments in the development of these spa resorts, qualitative survey was conducted using the technique of semi-structured in-depth interviews with the representatives of relevant institutions and organizations in the Municipality of Kuršumlija. Obtained results showed that the completion of the privatization process of the spa facilities along with the use of investment incentives and creation of favorable business environment for investors would lead to the increase of direct investments aimed for the development of the spa resorts. Direct investments, through better utilization of natural healing factors and human resources, would create the conditions for the development of health tourism and thus would lead to the development of the undeveloped
rural area where the spa complex is located.

Downloads

Download data is not yet available.

References

1.Balaban, М., Župljanin, S. & Nešović, D. (2019). Regional sustainability of local and rural development, Economics of Agriculture, 66(4), 1173-1186. doi:10.5937/ekoPolj1904173B. Retrieved from http://www.ea.bg.ac.rs/index.php/EA/article/view/1656/1366 (January 10, 2020)

2. Brankovic, S. (2014) Methodology of Social Research, Textbooks Institute, Belgrade. [Бранковић, С. (2014). Методологија друштвеног истраживања]

3. Çalışkan, U. (2019). How to Develop Tourism in the Least Developed Regions? Notes from Travel Agencies, Turizm Akademik Dergisi, 6 (1), 107-119. Retrieved from https://www.researchgate.net/publication/334545116_How_to_Develop_Tourism_in_the_Least_Developed_Regions_Notes_from_Travel_Agencies (December 21, 2019)

4. Dorożyński, Т., Dorożyńska, А. & Urbaniak, W. (2014). The Role of Local Government in Attracting FDI: The Case of the Lodz Region, Business and Economic Horizons, 10 (4), 281-304. doi:http://dx.doi.org/10.15208/beh.2014.23: Retrieved from https://academicpublishingplatforms.com/article.php?journal=BEH&number=16&article=2035 (November 18, 2019)

5. Đokić, N. & Milićević, N. (2017). Tourist services online purchases in the context of the Theory of Planned Behaviour, Annals of the Faculty of Economics in Subotica, Vol. 53, No. 38/2017, 069-078. Retrieved from http://www.ef.uns.ac.rs/anali/arhiva/38/38-05.pdf (December 26, 2019)

6. Gavrilović, Z. & Maksimović, M. (2018). Green Innovations in the Tourism Sector, Strategic Management, Vol. 23, No. 1, 036-042. Retrieved from http://www.ef.uns.ac.rs/sm/archive/SM2018_1.pdf (January 20, 2020)

7. Government of the Republic of Serbia (2016). Strategy of tourism development of Republic of Serbia for the period 2016-2025 ("Official Gazette of RS" No. 98/2016). [Влада Републике Србије (2016). Стратегији развоја туризма Републике Србије за период 2016-2025 ("Службени гласник Републике Србије" бр. 98/2016)] Retrieved from https://mtt.gov.rs/download/3/strategija.pdf (December 12, 2019)

8. Ionut Laurentiu, P. & Raluca Andreea, I. (2019). The impacts of the investments in agriculture on economic growth in rural communities in Romania, Economics of Agriculture, 66(4), 955-963. doi:10.5937/ekoPolj1904955L. Retrieved from http://www.ea.bg.ac.rs/index.php/EA/article/view/1593/1353 (February 10, 2020)

9. Johnston, R., Crooks, V.A. & Ormond, M. (2015). Policy implications of medical tourism development in destination countries: revisiting and revising an existing framework by examining the case of Jamaica, Globalization and Health. doi: 10.1186/s12992-015-0113-0 Retrieved from https://core.ac.uk/download/pdf/56379865.pdf (December 10, 2019)

10. Kvale, S. & Brinkmann, S. (2009). Inter Views: Learning the Craft of Qualitative Research Interviewing, Sage, Los Angeles, CA

11. Lakićević, M. & Sagić, Z. (2019). Accommodation capacities and their utilazation in the function of tourism development: Case of Ivanjica, Ekonomika Vol. 65 No. 3, 77-88. doi:10.5937/ekonomika1903077L Retrieved from https://ekonomika.org.rs/sr/PDF/ekonomika/2019/Ekonomika-3-2019.pdf (February 10, 2020)

12. Linde, H. & Marković, I. (2017). Manual for State aid in local self-government, Permanent conference of cities and municipalities - Union of cities and municipalities of Serbia, Belgrade. [Линде, Х. & Марковић, И. (2017). Приручник за доделу државне помоћи у локалној самоуправи] Retrieved from http://www.kkdp.gov.rs/doc/Prirucnik%20za%20dodelu%20drzavne%20pomoci%20u%20lokalnoj%20samoupravi.pdf (October 11, 2019)

13. Law on foreign investments ("Official Gazette of FRJ" No. 3/2002 and 5/2003, "Official Gazette of SM" No. 1/2003 – Constitutional charter and "Official Gazette of RS No. 107/2014 – other law) [Закон о страним улагањима ("Сл. лист СРЈ", бр. 3/2002 и 5/2003, "Сл.лист СЦГ", бр. 1/2003 – Уставна повеља и "Сл. Гласник РС", бр. 107/2014 – др. закон)] Retrieved from https://www.paragraf.rs/propisi/zakon_o_stranim_ulaganjima.html (January 10, 2020)

14. Law on investment ("Official Gazette of RS" no. 89/2015 and 95/2018) [Закон о улагању ("Сл. гласник РС", бр. 89/2015 и 95/2018)] Retrieved from https://www.paragraf.rs/propisi/zakon_o_ulaganjima.html (January 10, 2020)

15. Law on spas ("Official Gazette of RS" No. 80/92 and 67/93 – other law and 95/2018 – other law) [Закон о бањама ("Сл. гласник РС", бр. 80/92 и 67/93 - др. Закон и 95/2018 – др. закон)] Retrieved from https://www.paragraf.rs/propisi/zakon-obanjama-republike-srbije.html (January 03, 2020)

16. Ministry of Economy (2019). Sector for privatization, bankruptcy and industrial development. [Министарство привреде (2019). Сектор за приватизацију, стечај и индсутријски развој] Retrieved from https://privreda.gov.rs/ministarstvo-nadlanu/sektori/sektor-za-privatizaciju-i-stecaj/ (December 20, 2019)

17. Mohajan, H.K. (2018). Qualitative Research Methodology in Social Sciences and Related Subjects, Journal of Economic Development, Environment and People, 7 (1), 23-48. Retrieved from https://mpra.ub.uni-muenchen.de/85654/ (October 22, 2019)

18. Muntean Jemna, L. (2016). Qualitative and mixed research methods in economics: The added value when using qualitative research methods. Journal of Public Administration, Finance and Law, Issue 9/2016, 154-167. Retrieved from http://www.jopafl.com/uploads/issue9/QUALITATIVE_AND_MIXED_RESEARCH_METHODS_IN_ECONOMICS.pdf (November 23, 2019)

19. National alliance for local economic development (2019). Foreign Investment Database. Retrieved from https://naled.rs/baza-stranih-investicija (December 25, 2019)

20. Nowell, L. S.; Norris, J. M.; White, D. E. & Moules, N.J. (2017). Thematic Analysis: Striving to Meet the Trustworthiness Criteria. International Journal of Qualitative Methods, 16 (1), 1–13. doi: 10.1177/1609406917733847. Retrieved from https://journals.sagepub.com/doi/full/10.1177/1609406917733847 (November 15, 2019)

21. Pantić, N. & Milojević, I. (2019). Investments and employment in tourism in the Republic of Serbia, Hotel and Tourism Management, Vol. 7, No. 1, 95-104. doi:10.5937/menhottur1901095P. Retrieved from http://www.htmanagementvb.com/index.php/HITM/article/view/192/136 (January 15, 2019)

22. Pejanović, R. (2009) Qualitative research methods in Economic (and Agroeconomic) acience, Chronicle of Scientific Works, 33 (1), 5-18. [Пејановић, Р. (2009). Методи квалитативних истраживања у економској (и агроекономској) науци] Retrieved from https://scindeks-clanci.ceon.rs/data/pdf/0546-8264/2009/0546-82640901005P.pdf (December 02, 2019)

23. Planinka Kursumlija (2020). History, Retrieved from http://www.planinka.rs/istorijat.php (January 15, 2020)

24. Regulation on conditions and mode of attracting direct investments ("Official Gazette of RS" No. 37/2018) [Уредбa о условима и начину привлачења директних инвестиција ("Сл. гласник РС" бр. 37/2018)] Retrieved from https://webcache.googleusercontent.com/search?q=cache:KM0JS-JZXBAJ:https://ras.gov.rs/uploads/2018/03/2018-uredba-o-uslovima-i-nacinu-privlacenja-direktnihinvesticija.docx+&cd=4&hl=en&ct=clnk&gl=rs&client=firefox-b-ab (Januar 18, 2020)

25. Regulation on determining the criteria for awarding incentives in order to attract direct investments in the sector of hotel accommodation services ("Official Gazette of RS", no.33/2019). [Уредба о одређивању критеријума за доделу подстицаја ради привлачења директних улагања у сектор услуга хотелског смештаја ("Сл. гласник РС", бр. 33/2019)] Retrieved from https://www.pravno-informacionisistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/uredba/2019/33/1/reg (Januar 18, 2020)

26. Regulation on identification of the area "Lukovska Banja" ("Official Gazette of RS" No. 104/2018) [Уредба о утврђивању подручја "Луковска Бања"("Сл. Гласник РС", бр. 104/2018)] Retrieved from http://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/uredba/2018/104/10 (January 20, 2020)

27. Regulation on the establishment of unique list of development of regions and local self-government units for 2014 ("Official Gazette of RS" No. 104/2014) [Уредбa о утврђивању јединствене листе развијености региона и јединица локалне самоуправе за 2014. годину ("Сл. гласник РС", бр. 104/2014)] Retrieved from https://ras.gov.rs/uploads/2019/01/uredba-o-utvrdivanju-jedinstvene-listerazvijenosti-regiona-i-jedinica-l-2.pdf (January 18, 2020)

28. Republic property directorate (2019). Advertisement for the alienation of the real estate of the "Žubor" spa complex in Kuršumlijska Banja through the collection of written offers. [Републичка дирекција за имовину (2019). Оглас ради отуђења непокретности бањског комплекса "Жубор" у Куршумлијској бањи путем прикупљања писмених понуда] Retrieved from http://www.rdi.gov.rs/doc/oglasi/tekst-oglasa-Zubor.pdf (Januar 15, 2020)

29. Sagić, Z., Lakićević, M., & Durkalić, D. (2019). Analysis of tourist turnover in a rural tourism destination–case study of Ivanjica. Economics of Agriculture, 66(3), 835-850. doi:10.5937/ekoPolj1903835S

30. Statistical Office of the Republic of Serbia (2019). Municipalities and Regions in the Republic of Serbia 2019, Belgrade

31. Stojanović, B. & Stanišić, T. (2015). Sectoral state aid in the European Union and some Western Balkan countries, Economic Topics 53 (3), 335-347. [Стојановић, Б. & Станишић, Т. (2015) Секторска државна помоћ у Европској унији и неким земљама Западног Балкана] Retrieved from http://економске-теме.срб/pdf/et20153_02.pdf (Januar 25, 2020)