The importance of business tourism to national economies in transition: The case of Serbia

Abstract

The global economic crisis that hit the national economies around the world for the fourth consecutive year continues unabated. Long-term effects of the crisis in world financial markets have accelerated and emphasized the debt crisis in the Euro zone, as well as the investment crisis felt on all continents. These global trends have had negative effects on the unstable Serbian economy, and the most direct consequences are reflected in the increased unemployment and economic insolvency. The effects that tourism has on the national economy of Serbia in terms of employment, investment and foreign exchange earnings are in the focus of this paper. At present these effects are minimal, but they can be multiply increased by proper observing and taking advantage that Serbia as a tourist destination offers. In this sense, despite negative happenings in the global marketplace, business tourism records high share at Serbian tourism market. Completed and planned infrastructure facilities and supra-structural facilities and high occupancy rates of hotels owing to business guests show the importance of this form of tourism in Serbia. In addition, this paper proposes a model of competitiveness of Serbia as a business tourism destination as an indispensable condition for further development of business tourism in Serbia.