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Contribution to the Development of Rural Tourism in Croatia: Proposed Steps for Successful Business

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Damir Demonja*, Robert Baćac**

Received: July 2012 | Accepted: October 2012

Abstract

Rural tourism is a relaively new tourist movement that humans of posindusrial sociey return to ra-diional values and nature. Primarily is srongly associaed with farms and producion of rara-diional agricultural products. he aim of the rural tourism is exploiaion of all exising resources of one farm regardless of whether it is radiional archiecture, radiional aciviies (radiional crats), agricultur-al producion or presenaion of the ruragricultur-al way of life. In addiion, ruragricultur-al tourism is a generator of addi-ional revenue and achieves full employment of the farm which enables to inegrae all the poenials and diversiicaion of aciviies.

he organizaion of the farm, in erms of aking some tourism aciviies, is a complex aciviy that requires cerain procedures and seps for successful business. herefore, this paper proposes and explains seps necessary for successful implemenaion of tourism services in rural tourism in Croaia. Special emphasis will be on the ypes of tourism services in rural tourism through the ypology of farms and connecing with the market.

Key words: Croaia, rural tourism, farms, development, seps

Introduction

Rural tourism, tourism in the villages, farm holidays, farms and agritourism are terms with which face those engaged, or intending to engage, in providing tourism services on their farms. Regarding apparent “similariy” of these terms in their use among owners and enre-preneurs in rural tourism, as well as theoreicians of rural tourism, there are doubts about the circumstances of the use of these terms. herefore, this aricle ofers a deiniion and explanaion of each of these terms that reveals about what forms of tourism is it, what each term means and how/where to use it. his interpretaion/clariicaion of terms is crucial considering that this paper interprets ypes of tourism services/ypology of farm holidays in rural tourism.

Contribution to the Development of Rural Tourism in

Croatia: Proposed Steps for Successful Business

* Institute for International Relations, IMO, Ljudevita Farkaša Vukotinovića 2, HR-10000 Zagreb, Croatia; ddemonja@irmo.hr

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Common deiniions of terms rural tourism, agritourism or farm holidays which would be accepted in all communiies that develop tourism services, does not exist. However, recent experts thoughts concerning the deiniion of tourism services in rural areas have focused on deining and disinguishing three basic concepts/terms which are in use: rural tourism, tourism in the villages and farm holidays.

Rural tourism is the widest term that encompasses all tourism forms/services of

tour-ism in rural areas including, for example, huning tourtour-ism, ishing tourtour-ism, ecotourtour-ism, health tourism, cultural tourism, and others. Rural tourism is not necessarily complemen-tary aciviy that generates addiional income, but may be professional aciviy (rural fam-ily hotel, equesrian center, etc.). he concept of rural areas is not srictly deined, and this term includes areas dominated by the natural environment, rural environment, small set-tlements and villages, isolated farms with agriculture and foresry as main economic sec-tors, and others. here should be menioned that exists the oicial criteria for the deiniion of rural areas. According to the OECD (Organizaion for Economic Cooperaion and Devel-opment) criteria, rural areas are those where the populaion densiy is below 150 inhabit-ants per km². Regarding the European Union methodology, rural areas are considered to be those where the populaion densiy is 100 inhabitants per km², according to which 91.6% of the total Croaian territory belongs to the rural areas, 88.7% of the setlements is situated in rural areas, 47.6% of total populaion lives in rural areas and 52.4% of them in urban areas (Demonja, Ružić, 2010, 45-46).

Tourism in the villages is a narrower term than rural tourism but at the same ime

wid-est term than farm holidays. It relates with the ambience of the village and its surroundings, and all of its aciviies (agriculture, cultural events, gasronomy, folklore, ethnology, and other economic aciviies) (Demonja, Ružić, 2010, 12-17).

Finally, farm holidays (or farms, or agritourism) relates enirely to the form of tourism

services, which is an addiional aciviy on the farm with live agricultural aciviies, in which various products are manufactured exclusively in this farm (Baćac, 2006, 37).

herefore, farm holidays or agritourism is a manifestaion of tourism in the villages, while tourism in the villages is a manifestaion of rural tourism.

he organizaion of the farm, in terms of taking some tourism aciviies, is a complex and requires certain procedures and steps for a successful business. herefore, this paper propos-es and explains the steps needed to implement tourism servicpropos-es within rural tourism. Special emphasis will be on the ypes of tourism services in rural tourism through the ypology of farms and their connecing with the market. Where there are exist, the Croaian best prac-ice examples will be menioned. But, it should have on mind that proposed steps for suc-cessful business related to the organizaion of the farm and tourism aciviies on them are the new systemaic approach. If it will be accepted as useful and adequate, it should expect their widely implementaion.

Literature Overview

his overview of solely Croaian scieniic literature on rural tourism presents the most recent books, papers and proceedings related to the topic of this aricle.

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the rural tourism and describes rural tourist desinaion, forms of rural tourism and mar-keing, condiions and guidelines for the development prospects of rural tourism in Croaia and, in the end, gives detailed descripions of good pracice examples in European counries and Croaia including more than thiry individual examples, categorized by ypes of facili-ies and forms of rural tourism. Despite the focus on Croaia, the book provides an overview and analysis of rural tourism in Europe in the context of sustainable development, as well as the experience of using sructural funds and programs of the European Union. It is paricu-larly important to emphasize that the book does not recognize the maximizaion of proits rom commercial tourism in rural areas as the main goal, but puts tourism in the context of preserving the radiion and sustainable development in areas that are in modern condiions more and more passive, with negaive demographic rends which threaten in large extent with exincion. his book represents irst studious conribuion to the scieniic research of rural tourism in Croaia. Also, it draws atenion to the importance of rural tourism in Croa-ia and the need for more speciic involvement of the cenral government in its further devel-opment in terms of elaboraing a naional program or srategy for the develdevel-opment of rural tourism as one of Croaia’s key components of sustainable development.

Besides this book, as a qualiy base to research rural tourism in Croaia could serve pro-ceedings rom two held congresses on rural tourism in Croaia (Propro-ceedings, 2010; Proceed-ings, 2010a). “Proceedings of the 1st Croaian congress on rural tourism” ofers 80 scienif-ic and professional conribuions covering various segments whscienif-ich encompass rural tourism (Proceedings, 2010). he number and variey of reated topics reveals the complexiy of the subject scope, rural tourism, and authors approach how they understood problems, ofering guidances, suggesions and soluions.

“Proceedings of the 2nd Croaian congress on rural tourism” (Proceedings, 2010a) con-sists of scieniic and professional aricles, divided into two volumes, which “covered” all four themes of the Congress: “Markeing and branding of rural tourism”, “Rural space as a rural tourist desinaion”, “Role of food in the development of rural tourism” and “Tour-ism mulisectoral clusters in rural areas”. hose papers are handling a large number of dif-ferent topics related to rural tourism and discussed on the Congress, they contain richness of numerical and graphical data, and worthy informaion. Some of the aricles show examples of good pracice, as well as those of internaional cooperaion on the development of rural areas with emphasis on rural tourism. Numerousness, diversiy, scieniic and profession-al quprofession-aliy of aricles included in this “Proceedings” is vprofession-aluable conribuion to the study of rural tourism in Croaia and all of its segments.

here is a small amount of scieniic aricles dealing mainly with the rural tourism theme. One of the most producive Croaian authors is E. Kušen. He wrote the irst notable aricle on rural tourism in Croaia (Kušen, 1992), as well as he dealt with diferent problems and issues of rural tourism, such as deiniion and terminology of rural tourism (Kušen, 2010) or tourism on rural farms (Kušen, 1995). he research interest of P. Ružić (Ružić, 2009) is rural tourism rom the aspects of ethnology and radiion, rural forms of tourism and rural economy studied mostly in Isrian Couny. Finally, aricles of R. Baćac deal with themes of rural tourism such as agritourism in which he evaluates the exising state of agritourism in Croaia and propose further steps for authenic tourism ofer in rural areas (Demonja, Baćac, 2011), or examines and analyzes radiion in agritourism (Baćac, 2006).

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Methods

Research results in this paper are derived rom the authors extensive experience of system-aic theoreical and ield research of rural tourism and its manifestaions primarily in Croa-ia and parCroa-ially abroad. For the purposes of this study the following methodology was used:

1. collecion and study of domesic scieniic and professional literature on rural tourism, 2. ield work in Croaia which included visits to farm holidays and interviews with their

owners,

3. discussions with the owners of farm holidays and other stakeholders at local and regional level responsible for rural tourism and operaional implementaion of its development, as well as with paricipants in raining, seminars, workshops and panel discussions on rural tourism, and

4. experiences of authors personal involvement regarding theoreical and pracical aciv-iies and assistance in the organizaion and work of farm holidays, and paricipaion in all other theoreical and pracical aciviies related to rural tourism in Croaia.

Discussion

Based on previous comprehensive research of rural tourism in Croaia, conducted by the authors of this aricle, it is possible to disinguish certain steps that should be taken in the organizaion and business of one farm holidays. In this regard, authors proposed eight difer-ent steps that should be applied in order to organize and successfully lead a farm holidays in Croaia. Some of these steps could be applicable for successful engagement in rural tourism in other counries that have the potenials to develop rural tourism. hese steps are:

1. designing the idea,

2. selecion of ypes of tourism services (ypology of farms), 3. regisraion of the farm holidays,

4. inancing the project, 5. arranging the farm holidays,

6. organizaion of services on the farm holidays, 7. legal obligaions of the farm holidays, and

8. connecing with the market (promoion and markeing).

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Steps for a successful organization and business of farm holidays in Croatia

Designing the idea

Before the start of concrete and serious engagement in rural tourism it is necessary to design the original idea that should be realisically considered and concreized. his is important

considering that later abandonment or change the idea in the process of organizaion of the farm holidays, or shortly ater its formaion, requires considerable eforts (inancial, human, and others), and inevitably loses the moivaion for further work. herefore, it is necessary to well-deine moives for this work, or to invesigate whether there is within the family on farm holidays agreement to professional and collegial devote, among other obligaions, to the addiional work in rural tourism. In addiion to moivaion, the personaliy of the host is needed, who must be open to communicaion considering that in the rural tourism commu-nicaion is individual with each guest. Further, it is important for the idea and the decision on the iniiaion of tourism services on farm holidays, and especially at design and imple-mentaion of promoion, to know who are the target groups for whom will be organized tour-ism services on the farm holidays, i.e. which guests might be interested in tourtour-ism services, where these guests are located and how to reach them.

here are only a few best pracice examples that showed how some farm holidays used ini-ial, original idea and of the exising resources on their farm holidays developed/created the original tourist ofer that aracts tourists. hey are the farm holidays “Švago” in the village Vodovođa in Konavli that breed silk worms and produce silk thread, and the farm holidays “Fešinsko kraljevstvo” in the village Fešini in Isria, where the owners in their own

vine-yard arranged/organized karst cave for tourist visits.

Selection of types of tourism services (typology of farms)

Besides determining the moivaion of the host and the decision to iniiate the provision of tourism services on farm holidays, it is necessary to deine the ype of tourism service or ype of farm holidays that will be organized on the farm. his is very important for two reasons:

1. the focus will be on the ype of service that the host wants to organize according to farm resources, and later it will help when proiling or “branding” the farm holidays, and

2. in this way host will send a direct message to a potenial guest which paricular ser-vice can be expected on the farm holidays. his will facilitate the guest’s decision to precisely decide for a paricular farm holidays.

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hotel and rural camping car quick stop are the categories that we, as authors, have ideniied following the research of the ofer, i.e. ypes of services in rural tourism in Croaia.

Agritourism

Agritourism is a ype of farm holidays where the main business is agricultural producion (farming) while tourism services, accommodaion and catering (nuriion) are exra aciviy (Demonja, Baćac, 2011; Demonja, Ružić, 2010, 25-27; Baćac, 2006). In addiion to primary accommodaion and catering services, on the farm can be organized other tourism services (aciviies, service packages) that aim to provide guests with the possibiliy of acive holiday, i.e. maximize the tourism potenial of the farm. Owner of the farm with his family usual-ly live on the farm, while for tourism services use surplus space within the farm. herefore, the guest is in permanent and direct interacion with the host and his family during a visit to the farm, and has the possibiliy to get acquainted with the customs, radiion, way and culture of living, cultural micro-world, radiional agricultural producion, ypical products and local gasronomy.

In agritourism, there are three subypes of farms (Baćac, 2006). he irst and second subypes (open ype of agritourism) are:

1. farms that provide catering services to excursionists and groups – excursion site to a maximum of 80 persons, and

2. farms that ofer accommodaion and catering services to guests on lodging/stay (up to 20 persons), and camping (campsite) (up to 60 persons), as well as catering service to excursionists and groups of up to 80 persons.

he third subype (closed ype of agritourism) consists of farms that ofer accommoda-ion and catering services for guests on lodging/stay up to 20 persons or on camping (camp-site) to 60 persons. Accommodaion services can be ofered in the rooms, apartments, spe-cial houses or camping (campsite).

Field researches led to the conclusion that potenial enrepreneurs should recommend to choose the ype of agritourism (farm holidays) with accommodaion and catering services for guests on lodging/stay, and if the farms are organized to provide catering services for exter-nal guests and excursionists, the maximum seaing capaciy is up to 30 persons. he reasons for such recommendaion are the preservaion of inimacy and autheniciy on agritourism or farm holidays, personally and individually communicaion with the guest (the relaion of host and guest is “one on one”) and avoidance of mass approach in providing tourism servic-es (large number of guservic-ests staying at the same ime).

As for the best pracice examples that concern agritourism in Croaia stands the farm hol-idays “Sklepić” in the village Karanac that earned Baranja status as one of the most desir-able tourist desinaions in the coninental Croaia, then the farm holidays “Ravlić” in the village Mužilovčica in Lonjsko polje, and the farm holidays “Maxo” in the village Podšpil-je on the island Vis.

Tasting room

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Aricle 7, Inclosure I.). he products are packed, and apart rom direct sales in the place of producion, tasing product tourism services are organized. Also, presentaion of producion in specially organized space is possible, but for a fee. On the farm, there are no accommo-daion faciliies, and farm exclusively ofer only a tasing and selling of radiional products. Tasing can be arranged for up to 80 persons (excursionists) at a ime, and to them cannot be

ofered hot meals (cooked dishes as in agritourism), but only cold cuts (slices).

Tasing rooms as ype of farms create a network in the desinaion where ypical products can be purchased directly rom the manufacturer. In this connecion, the tasing rooms can be organized as a speciic iinerary that can funcion as an individual tourism product such as, for example, wine roads, spirit roads, cheese roads, olive oil roads, etc. For future enre-preneurs is recommended to organize tasing rooms for a maximum of 30 persons, and it would be desirable to place them in radiional buildings such as stone-cotages, mills, enclo-sures, taverns, cellars.

Illusraing examples of tasing room in Croaia would be, for example, almond tasing room “Skradinske delicije” in the village Bićine in Dalmaia, olive oil tasing room “Pino” in the village Katun near Baderna in Isria, honey and honey products tasing room “Medene točke središnje Isre (Honey points of cenral Isria)” near Pazin in Isria, wine tasing room “Kolar” in the village Suza in Baranja, cheese tasing room in the village Točak near Slunj, to

name only the best pracice examples.

Self-catering house

Self-catering house is adapted radiional house in which are respected environmental con-diions and radiional architecture and consrucion (Regulaion on the provision of cater-ing services in rural household, „Oicial Gazete“ 118/11, Aricle 10a; Baćac, 2006, 40). Self-catering house can be a rue copy of the original radiional house that is both visual-ly and funcionalvisual-ly consistent with the heritage of the area where the farm (house) is locat-ed. he speciiciy of this farm ype is relected in rening the enire house (not rented sepa-rately the rooms or apartments) with associated space (yard). his means that such a house is rented for the same price for all capaciy that has (for example, all the beds), or if complet-ed, for example, only one bcomplet-ed, it is rented in whole to that (one) person. Self-catering house can be organized in the village (could be one of the houses in a row if it funcion as a sepa-rate unit), or may be isolated rom the village as reestanding. Owner usually does not live in this farm, he can live in another place, but there is constant communicaion between the guest and host (guest knows who is the owner). As an added markeing aracion, but also an addiional conribuion to the preservaion and popularizaion of regional architecture, self-catering houses may have a speciic regional name such as, for example, isarska sancija, posavska iža, zagorska hiža, slavonski san, salaš, švapska kuća, dalmainski dvori.

What would the “real” self-catering houses should be, according to the foregoing insruc-ions, show Croaian best pracice examples: self-catering houses “Arbalovija” in the village Dončići in Isria, “Sobol” in the village Kočićin in Gorski Kotar, “Iža na rijem” in the vil-lage Čigoč in Lonjsko polje and “Mikin dol” in the vilvil-lage Draž in Baranja.

Rural B&B (bed and breakfast)

Rural B&B (bed and breakfast) is the farm that with the basic accommodaion service (rooms – each with its own bathroom, or apartments) must provide breakfast service (Baćac, 2006,

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breakfast ofer must be, at least, one product of the farm own producion, since the farm is situated in a rural area and such possibiliy exists. Breakfast serves in a special place organ-ized for hosing. he owner lives on the farm, and the guest is situated in the host’s home or separate house for the accommodaion, but in both cases the host’s living spaces are separat-ed rom the rooms usseparat-ed by guests, and privacy is guaranteseparat-ed.

A special subype of rural B&B is Bike&Bed designed to the target group of cyclists. In such a case, on the farm is organized well secured, guarded room for storage and possible bicycles service.

Croaian best pracice examples of rural B&B are farm holidays “Usilonja” in Nature Park “Lonjsko polje”, crat for room rent “Mazur” in Bilje and ethno hotel “Balatura” in Tribalj near Vinodol.

Rural family hotel

Rural family hotel is the farm with a larger number of beds (Baćac, 2006, 40). It is organized in radiional buildings (authenic architecture) with an aracive natural environment (vil-lage or small town), which by their size and dimensions may have a greater number of rooms (rom 10 to 15, and not less than 5 rooms) (htp://www.ruralis.hr/hr/standardi_klasiikaci-ja_obiteljski_hotel.html). hese buildings cannot be up built and upgraded but should keep the original spaial sructure and form. Building for rural family hotel can be reconsruct-ed, but consrucion and equipping must respect all the elements of radiional consrucion (size, materials, arranging, etc.). he farm has recepion, restaurant, and addiional faciliies if is possible to organize them (wellness, pool, etc.). Owner of the farm is not professionally engaged in agriculture, although it is preferable that on the farm, if possible, produces some of the products. Or, the owner of the farm, along with his family, is professionally engaged in agriculture, but has a greater accommodaion capaciy which is organized as a family hotel (as shown experiences rom Ausria and Italy). Rural family hotels can be a themaic, such as the ishing if they are along rivers or lakes (examples in the United Kingdom), the wine if they are in the winegrowing area, etc.

Rural family hotel best pracice examples in Croaia are: “Casa Romanica la Parenzana” in the village Volpija in Isria, and “Zdjelarević” in the village Brodski Stupnik in Slavonia.

A special ype of rural family hotel is widespread hotel.

Widespread hotel

Widespread hotel is deined as a horizontal hotel located in the historic center of a place/site, it can be the enire place (village) or more dislocated accommodaion units (rooms, hous-es) that are organized as a hotel with a cenral recepion and other services (e.g. restau-rant) (Demonja, Ružić, 2010, 36-41; Dropulić, Krajnović, Ružić, 2008, 607-617; Dall’Ara, Esposto, 2005). Accommodaion is organized in muliple, interrelated radiional buildings (houses) with the overall comfort that provide rural family hotels. Guests are able to stay in separate accommodaion units that are dispersed around the site (village) or on the enire micro-desinaion. Each accommodaion unit is decorated diferently. Maintenance servic-es such as breakfast, cleaning, changing linens, and others can be organized in every build-ing which deines the widespread hotel, while caterbuild-ing services can be organized in a cenral restaurant, which makes widespread hotel diferent rom rural family hotel.

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environment. he aim is to revitalize the historic setlements through tourism services, and encourage the development of authenic tourism services, preserve and popularize the ra-diional culture, and generate revenue for the enire communiy (place, village). Widespread hotel is ideal for historic sites (villages) that have arisic and architectural value and arac-iveness. Widespread hotel integrates the enire territory on which is organized, not only through the accommodaion services, but also through other services.

Management and organizaion of widespread hotel is possible through a joint venture of owners of certain faciliies (potenial accommodaion units), which create a common man-agement sructure, or manman-agement sructure may organize the local communiy (govern-ment) through an organizaion that brings together owners of accommodaion units as a widespread hotel.

It is paricularly important that widespread hotel (rural resort, an eco-ethno village) be themaically deined since the ofer in all the villages which are organized on the principle of widespread hotel will not be idenical and monotonous. hus, for example, widespread hotel can be organized themaically as:

• rural mountain resort – through the creaion of tourism ofer related to life in moun-tain villages,

• wellness rural resort – designed to ofer wellness programs related to the radiion as, for example, aromatherapy with healing plants rom the region, making tea rom medicinal herbs, radiional medicine,

• old crats rural resort – presentaion of old crats of the region,

• wine rural resort – focused on wine as a radiional product (suitable for the villages on the islands and the mainland),

• music rural resort – depicing the radiional music and singing of the region, and others.

Widespread hotels, respecively ethno-eco villages or rural resorts, may never be just exhibits ype of tourism services, but acive presentaion and organizaion of tourism servic-es that are related to the heritage and radiional life in villagservic-es and rural area.

he best pracice examples of the widespread hotels in Croaia are eco-ethno village Stara Kapela near Slavonski Brod, and eco-ethno village Kokorići in Dalmaia.

Rural camping

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Accommodaion units in the rural camping is camping site (place) and camping parcel. he main diference between the site (place) and the parcel is that camping parcel within the rural camping is further bordered (fenced) and arranged (has its own privacy), while camp-ing site is not bordered but only marked. Most oten the parcel is bordered by a green fence (hedge or other decoraive shrubbery).

Illusraing examples of rural camping in Croaia are rural camping “Slapić” on the river Mrežnica in the village Mrežnički Brig, which conirms by its qualiy proitabiliy of such a family business project, and the rural camping “Vrata Velebita” in the village Ljuboić in the Naional Park “Velebit”.

Rural camping car quick stop

Rural camping car quick stop consists of parking places for camping vehicles intended for short staying, where the owners of camping vehicles can get a certain service (Regulaion on the classiicaion, minimal condiions and categorizaion of accommodaion faciliies rom the group “Camps and other accommodaion faciliies”, „Oicial Gazete“ 49/08, 45/09). Usually they are used by campers which have all the necessary comforts for a stay in their vehicles, constantly raveling at the desinaion (100 km per day on average) with a great need for shorter stops. Because of menioned needs a special places as camping car quick stops are organized to provide maintenance services such as water and elecriciy supply, wastewater discharge, rest rom ravel, food supply, etc. Very rarely campers use radiion-al campsite ofers, so for them a speciradiion-al ofer is organized such as the camping car quick stop. Rural camping car quick stop is organized along ransit roads and pathways (routes), not more than 10 km away rom such roads. his applies for rural camping car quick stop which are arranged in a rural area (village), i.e. at a farm holidays. Also, as in rural camping, in rural camping car quick stop special atenion must turn to the organizaion and arrange-ment (landscaping, pits for waste water, lighing, faciliies for elecriciy and water supply, etc.) in order not to distort environment or place/site view (vistas). In the rural camping car quick stop accommodaion units are arranged as parking lots, and, therefore, ground (ter-rain) for the arrangement of camping quick stop should be lat (plane). he opimal size of the rural camping car quick stop is 10 parcels on a total surface of 1000 m².

Rural camping tourism in Croaia, as a special form of rural tourism, is insuiciently rec-ognized and represented in the overall Croaian tourism ofer, and do not meet the exising tourism demand in the camper services market. herefore, it stands just one best pracice example of rural camping car quick stop in Croaia, “Farm Pino” in the village Katun near Baderna in Isria.

Registration of the farm holidays

Ater selecion of rural tourism ype which will be organized on the farm holidays, it is nec-essary to examine ways of regisraion, and the minimum requirements to be saisied that are deined by acts, regulaions and provisions (Demonja, Ružić, 2010, 88-94). At this stage of the organizaion of the farm holidays, among developed idea and arrangement of the farm holidays, regisraion of the farm holidays is a very important step to avoid organizing farm

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is very complex. It is, above all, related to obtaining several/muliple soluions for dealing with rural tourism, especially for farm holidays that have registered agricultural producion.

Financing the project

When thinking about the development of rural tourism and organizing the farm holidays raises the quesion of inancing the project, i.e. with which and whose funds to start with

realizaion and how much is the amount of investment (Demonja, Ružić, 2010, 115-117). hat was the reason why it is necessary to make a detailed business plan, investment study or cost speciicaion that would deine the size of investment and the amount of funds needed for the project. Realisic and detailed business plan is required for concreizaion of all aciviies for the organizaion of farm holidays and assessing all future costs that could arise during the business operaions. At the same ime, business plan provide revenue rom tourism services, and sources of funds can be deined: own funds, credit lines, etc.

Currently on a naional level there are no credit lines or inancial incenives intended solely for rural tourism. In order to realize/implement the exising tourism credit lines, farm holidays would have to be a professional engage in tourism, not only as a supplementary aciviy, since rural tourism is considered as addiional aciviy in the farm holidays.

Arranging the farm holidays

Ater closing the inancial consrucion begins most complex and crucial phase of the farm hol-idays organizaion, its arrangement (Demonja, Ružić, 2010, 131-138). From this stage, and later

with inevitable promoion and markeing, depends on whether the farm holidays will be visually aracive, funcional and accepted in the market. he basic rule that should follow when arrang-ing the farm holidays is do not adapt architecture and space to the content, but content needs to adapt to the architecture and space, and thus preserve the ambience of space and minimize the impact of intervenions in the radiional architecture that makes it very important resource and an aracive factor in rural tourism (Somek, 2011; Salopek, Perić, Mlinar, 2009).

Exterior decoraion, primarily it is referring to the buildings, is exremely important, not only to preserve ambience and visual araciveness, but also because the future markeing aciviies will be based on the arrangement of the farm holidays, and it will be the irst con-tact of potenial guests with the farm holidays through promoional materials, photographs in the catalogs or on the internet. Buildings should be arranged according to the radiional, ambient paterns, which are, above all: funcional space, simple and funcional arrangement, and clean and green environment (Demonja, Ružić, 2010, 158-159).

Croaian best pracice examples of farm holidays exterior and interior decoraion are farm holidays „Arbalovija“ in the village Dončići in Isria, „Dvor Sv. Jurja“ in a village Humac on the island Hvar and „Baćulov dvor“ in the village Draga near Primošten in Dalmaia. As an example of qualiy radiional garden design stand farm holidays „Majsecov mlin“ with-in the project „Croaian and Zagorje Tradiional Garden“ with-in the village Donja Stubica with-in Hrvatsko Zagorje.

Organization of services on the farm holidays

On the farm holidays is very important to organize accommodaion, catering (nuriion) and

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pro-vided in the rooms, apartments, houses, campsite and camping car quick stops, and in hotel (Regulaion on the provision of catering services in rural household, „Oicial Gazete“ 05/08, 118/11; Regulaion on the classiicaion, minimum condiions and categorizaion of catering faciliies, „Oicial Gazete“ 88/07, 58/08). In addiion to accommodaion services, catering service is the most important basic service provided at farm holidays. On the farm holidays should ofer dishes of the region (radiional cuisine) where the farm holidays are located and according to that create nuriion service ofer. On the farm holidays is possible to ofer many other aracive aciviies or addiional ofers that fulill guests stay such as, for instance, work-shops of old crats, cooking classes – workwork-shops of preparing radiional dishes, recreaional riding (with a special ofer for children, beginners and those with special needs), “rural well-ness” (hay bath, massage with essenial oils), bird watching, excursions (walking tours, cycling tours, visits to cultural sights, ishing, rating, jeep safari, mountain climbing, etc.), and other aciviies. Furthermore, by organizing addiional aciviies addiional revenue can be expected. Most farm holidays decided to provide basic services, accommodaion and catering (nuri-ion) ones. According to esimates by the authors and on available data of the State Admin-israion Oice regarding registered farm holidays, 75% of all rural tourism ofer in Croaia is catering (nuriion) services and accommodaion. he remaining 25% is an organizaion of addiional services such as, for example, cooking workshops, workshops of old crats, organ-izaion of horseback riding, etc.

Legal obligations during business operations

Farm holidays as business eniies have certain legal obligaions. his is primarily related to

tax liabiliies (income tax, proit tax, lat tax, value added tax, and other taxes), book keep-ing, invoice issukeep-ing, and other obligaions (report guests to tourist board, pay residence taxes and tourism fees, create price lists, etc.) (Demonja, Ružić, 2010, 94), which are periodically changed and speciic to each counry. Because of menioned, legal and other obligaions that are speciic for Croaia will not be speciically analyzed.

Connecting with the market

Connecing with the market can be deined as one of the most important steps in the business operaions of farm holidays since on previous communicaion with potenial guests depends whether the guest get the relevant informaion about a speciic ofer and decide to stay at a farm holidays (Demonja, Ružić, 2010, 176-191).

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excursion-ists, families with children, couples, individuals and organized groups, cyclexcursion-ists, wine guests, culinary (gasro) guests, hikers, campers, guests who visit cultural aracions, guests who come for the aciviies in nature, ishermen, hunters, business people, etc.

In the promoional materials and communicaion channels (web pages) it is desirable dis-cretely suggest which target groups of the guests prefer on a paricular farm considering the organizaion of tourism services, for example, “Ideal for families with children”, “Ideal for couples”, “Ideal for ishermen”, “Ideal for cyclists”, etc. It should be noted that this does not mean that the ofer is focused only on one target group of guests, but also to more of them, and do keep in mind that will be required to arrange services that will saisfy all the desired target groups, as well as the needs of one target group does not necessarily correspond to the needs of the other ones.

he most common ways of connecing one farm holidays, rom the very beginning of its operaions to market launch, are given and explained in the text which follows.

Creating a business card

he irst step in the promoion and ransfer of informaion on farm holidays is a business card that will contain owner name and surname, farm holidays name and all the necessary con-tact informaion (address, phone, cell phone, email, web address). Business card, for begin-ning, will be very valuable and important tool when it is necessary to provide informaion on engagement in rural tourism. Business cards do not require large inancial expenses, they are easy to carry, and in every opportuniy it is possible to assign them and in this way pro-mote the farm. Also, it is useful to collect business cards rom the guests (if they have them), and other business partners and insituions representaives, because they will be of use when creaing a mailing lists or address books on which will disribute informaion about the farm ofer. Business card could very efecive replace a lyer or brochure and rom the very beginning could have a crucial role in the “market visibiliy” of the farm.

Public presentation of the farm holidays

Public presentaion of the farm holidays represents the organizaion of its formal opening ceremony on which should invite (because of the ransparent ransfer of informaion on a paricular farm and its tourism ofer):

• media representaives (journalists), local and regional (daily newspapers, TV and radio staions, Internet portals),

• representaives of local (municipal or ciy) and couny tourist boards,

• representaives of local and regional authoriies, i.e. the representaives of the munic-ipaliy or ciy or couny, and

• representaives of ravel agencies that operate in the area of the farm.

he aim of the opening ceremony is publicly present the farm and tourism services that are organized for guests. he opening ceremony is a very good way of drawing media aten-ion on a paricular farm holidays and its speciic ofer. Also, that way of presentaaten-ion rans-parently sends the irst, very important informaion about the existence of the farm.

Personal visit of the relevant institutions

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and economy, as well as municipal and/or ciy and couny tourist board which, in this way, will be inroduced with the ofer and opportuniies to visit paricular farm with their busi-ness partners and a number of delegaions.

Potenial guests of the farm are business people rom various companies rom the area (municipaliy, ciy, region, couny) where the farm is situated, such as, e.g. banks, insur-ance companies, car showrooms, shopping malls, and all other companies. Visit these com-panies or their departments for markeing and public relaions, open possibiliy for direct ofer/arrangement to maintain business meeing and/or lunch on the farm (if the farm is not focused solely on providing accommodaion services such as self-catering houses, rural B&B, rural camping). In this way, there is a possibiliy that someone of the visitors return on the farm privately and/or to organize its own business event on the farm, which creates a system of permanent guests and a wider network of potenial customers/clients.

Furthermore, it is desirable, preferably by e-mail, send informaion on the farm and its enire ofer to the Croaian Naional Tourist Board oices in the world. Croaian Naional Tourist Board has 27 representaive oices around the world (on all main tourism markets) aiming to promote Croaian tourism and tourism ofer in Croaia. From these oices, it is possible to request informaion about ravel agencies in those counries that doing business with Croaia and includes in its sales Croaian tourism ofer, as well as those that might be interested in rural tourism ofer.

It is also efecive personally visit and/or send informaion and ofer to various and numerous associaions that together bring a large number of people that might be interested in a paricular farm ofer such as excursions, then organizing events in the farm as working meeings, business meeings, annual meeings, small seminars and round tables, and simi-lar. For example, the associaion of reirees, doctors, denists, atorneys, employers, cyclists, and many others could be contacted.

Own website

It is highly recommended that the farm develop its own website, since the Internet as a pro-moional channel has enormous potenial. It is easy and quick in informaion ransfer and seeking business opportuniies, and can signiicantly help in the promoion of the farm, as well as in sale of products and services. Also, on the website can be published more detailed informaion on the farm, and update and change informaion about an ofer immediately when they are changed, as in the examples of brochures and/or catalogs is not possible.

Creaing a website is not paricularly expensive investment, cost of making/creaing a basic website with all the necessary elements can vary rom several hundreds to thousands and a half Euro, and provides an opportuniy that at any moment and in the quickest manner possible interested paries provide informaion about the farm ofer. Making/creaing web-site (design, choice of domain, opening e-mail addresses) should be let to the experts and website makers/designers. Website can be created in the CMS system and farm owner could maintain and modify the contents by itself, if he or member of his family is capable to work with computer. It is preferable that the site is easy and informaive, without the fuzzy and confusing navigaion, and ranslated into at least one foreign language. It is useful to make on the website a form for inquiries and reservaions, because in this way increases the num-ber of arrivals.

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business partners, potenial customers, etc.) to which will be sent ofer and all news related to farm tourism services.

Croaian example of qualiy website of one individual farm holidays is the website of farm holidays “Škabe” in the village Muniić in Isria (htp://www.skabe.net/).

Fairs and events

Local, regional, naional and internaional fairs, manifestaions, exhibiions, and other sim-ilar events are an excellent place where the informaion on farm holidays and tourism ser-vices ofer can be placed. hose events, except bidders (suppliers), gathers a large number of business people (representaives of tourist agencies, various insituions, and others) to whom ofer of paricular farm holidays might be interesing for business and cooperaion. Also, in such places there is always the possibiliy of direct consultaion and negoiaion about placement of tourism services, meeing with colleagues who provide similar or iden-ical services, therefore, also have farm holidays, with which they can exchange experi-ences and collect the necessary informaion about the business operaions (for example, on business with agencies, adverising, ravel guides (printed catalogs), and others). Fairs oten organize business meeings, themaic workshops, etc., through which on the direct way is possible to promote farm holidays itself and their tourism services.

Individual appearance, as an acive exhibitor at the fair, requires certain increased fund-ing due to high costs (rental and arrangement of the stand, accommodaion, ravel expens-es, etc.), especially if fair or other event happens outside the place of residence or immediate viciniy of the farm holidays, or abroad.

If there is a possibiliy of joint appearances/presentaions with other farms of the same area/region within the tourist board or some other insituion, it certainly helps appearance and possibiliy to atend at the fair or other event.

Business operations with the travel agencies

Each owner of the farm holidays as an ideal situaion wishing a good long-term conract with one of the tourist agency that will bring guests, ill capaciies and assume all duies/tasks related to the promoion and charging for services by the guests. his is the ideal situaion, but a key step to reaching a saisfactory agreement is negoiaion on condiions.

In discussions about the possibiliies of business cooperaion with one of the ravel agency, it is advisable to check what tourism products and services agency seeks, i.e. what terms and condiions ofers. Agency seeks a commission for its services. For example, a ravel agen-cy can arrange with the farm a ixed price that will pay for agreed services and in that price may include its earnings (income) and that service sell on the market with such related price. It should be noted that there are many opions and variants of cooperaion, and they depend of negoiaion and agreement between the farm and the agency (Demonja, Ružić, 2010, 172-173).

Other effective ways of promoting the farm holidays

Other efecive ways of promoing the farm holidays include, for example, themaic evenings, linking farm website with other websites, adverising on websites and social networks, and others.

Once a month, or oten, themaic evenings could be organized on the farm. Whether this

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direcing atenion to the farm itself, i.e. they are used as a concrete way of promoing direct-ly on the farm. Connecing the farm websie with other websies, such as those of tourist boards,

ravel ones and others, is possible and desirable to implement on the principle of reciproci-y. During business operaions, farms are faced with numerous ofers for adverising on the websies that are seeking inancial compensaion. Such an ofer must be carefully analyzed

in order to obtain informaion on the adverising efeciveness. his primarily refers to the saisfacion of those who adverise, and on the efeciveness of the paricular website itself as promoional channel. Adverising on social networks such as Facebook, Twier, Google+, LinkedIn and YouTube is an efecive way of promoing because of negligible costs, paricularly

due to the large number of potenial users who will be able to see the ad. Finally, it is useful and efecive to be present on the websies for the provision of tourism advices where to ravel and

where to stay as is, for example, TripAdvisor, and in specialized tourist guides such as Rout-ard, Lonely Planet, Dumont, Marco Polo, Dorling Kindersley, Naional Geographic, Merian Live, Pol-yglot, Baedecker, ADAC.

Conclusion

Interest in engaging on rural tourism in Croaia is increasing due to the many possibiliies. Primarily, in Croaia there are sill aracive and “prisine” rural areas with a deined way of life, culture and radiions, srong need to preserve rural areas are present, populaion can extend revenue opportuniies through tourism services and allows them to preserve the original services and products by creaing ofer for a diferent holiday.

Research of moives for tourist arrivals in rural areas was made by the authors of this aricle in the years 2010 and 2011. Interviewing around 200 owners of farm holidays is obtained data on moivaion and reasons for tourist arrivals on farm holidays. he survey results showed that 47% of guests exclusively comes on farm holidays to rest (leisure), 39% of guests come for gasronomy and enjoying the food and local specialies, 43% of guests as the reason for coming stated preserved heritage (ambient architecture, rural way of life, etc.), while 41% of guests coming to atend the manifestaions and events in rural areas. Also, some other moives for arriving at the village such as peace, clean environment, interacion with new people, acive holiday (walking, cycling, etc.), purchase of radiional products, and others, are reasons for the development, growth and survival of rural tourism as tour-ism oriented to individual guests and their needs.

hese results of tourist arrivals moivaions in rural areas in Croaia encourage the devel-opment of farm holidays and their speciic tourism services, i.e. develdevel-opment of rural econ-omy. Considering menioned every project is welcome, and each farm holidays which has services and products based on qualiy and autheniciy, individual approach and creaiviy can expect a good posiioning in the market. In order to achieve that, it is necessary to fulill certain requirements, or steps that are proposed and interpreted, among which the greater atenion was paid on two more important: selecion of ypes of tourism services (ypology of farms) and connecing with the market (promoion and markeing).

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Listed and explained proposed steps for the successful business of farm holidays, and their implementaion, helps further qualiy upgrading of rural tourism growth in Croaia and its sustainable development, as well as ongoing eforts to improve the quanitaive and qualita-ive level of rural tourism services.

References

Act on tourism aciviy, „Oicial Gazete“ 08/96.

Baćac, R. (2006). Agritourism – radiional values in tourism. In T. P. Leš and T. Pletenac (Eds.) Proceedings “Ethnology and cultural tourism”, Department of Ethnology and Cultural Anthropology, Faculy of Humaniies and Social Sciences, Universiy of Zagreb, Zagreb, 36-42.

Camp resing place, Croaian Chamber of Economy, Tourism Department, Zagreb, URL: htp://www.hgk.hr/wp-content/iles_mf/Upoznavanje%20s%20idejom%20uspostavl-janja%20ruralnih%20kamp%20odmori%C5%A1ta.pdf. (22/07/2012).

Dall’Ara, G., Esposto, M. (2005). Il fenomeno degli Alberghi Difusi in Italia, Palladino Edi-tore, Campobasso.

Demonja, D., Baćac, R. (2011). Agritourism development in Croaia. Studies in Physical Cul-ture and Tourism 18 (4), 361-370.

Demonja, D., Ružić, P. (2010). Rural tourism in Croaia with Croaian best pracice exam-ples and European experiences, Meridijani, Samobor.

Dropulić, M., Krajnović, A., Ružić, P. (2008). Albergo Difuso Hotels – A Soluion to Sus-tainable Development of Tourism. In Proceedings “Internaional Conference on Organi-zaional Science Development”, Portorož, Slovenia, March 19 – 21, 2008, 607-617. Kušen, E. (2010). Terminology of rural tourism. In D. Kaica (Ed.) Proceedings 1st Croaian

congress on rural tourism with internaional paricipaion “Development perspecives of rural tourism”, Hvar, October 17 – 21, 2007, Hrvatski farmer, Zagreb, 131-134.

Kušen, E. (1995). Tourism on rural farms. Turizam 43 (7-8), 127-133.

Kušen. E. (1992). Rural tourism and architecture of the village and rural households. In ”Croaian Farmer – programs for development of rural family households”, Globus,

Zagreb, 365-382.

Lukić, A. (2012). Mosaic outside the ciy: the ypology of rural and urbanized Croaian set-tlements, Meridijani, Samobor.

Mišćin, L., Mađer, B. (2008). Current state of tourism in Croaian rural areas 2008, Cro-aian Chamber of Economy, Tourism Department, Zagreb, URL: htp://hgk.biznet.hr/ hgk/ileovi/13081.ppt. (20/06/2012).

Proceedings 1st Croaian congress on rural tourism with internaional paricipaion “Devel-opment perspecives of rural tourism”, Hvar, October 17 – 21, 2007. (2010). Hrvatski farmer, Zagreb, 547.

Proceedings 2nd Croaian congress on rural tourism with internaional paricipaion “he concept of long-term development of rural tourism”, Mali Lošinj, April 21 – 25, 2010. (2010a). Hrvatski farmer, Zagreb, Part I 290, Part II 718.

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Regulaion on the classiicaion, minimal condiions and categorizaion of accommodaion faciliies rom the group “Camps and other accommodaion faciliies”, „Oicial Gazete“ 49/08, 45/09.

Regulaion on the provision of catering services in rural household, „Oicial Gazete“ 5/08, 44/11, 118/11.

Rural Development Srategy of the Republic of Croaia for the period 2008-2013. (2008) Minisry of Agriculture, Fisheries and Rural Development of the Republic of Croaia, Zagreb.

Ruralis, Qualiy standards, Rural family hotel, URL: htp://www.ruralis.hr/hr/standardi_ klasiikacija_obiteljski_hotel.html. (22/07/2012).

Ružić, P. (2009). Rural Tourism, Insitute for agriculture and tourism Poreč, Pula.

Salopek, D., Perić, K., Mlinar, A. (2009). Posavina radiional wooden house – a manual for reconsrucion, Minisry of tourism of Republic of Croaia and Minisry of culture of Republic of Croaia, Zagreb.

Somek, P. (2011). Tradiional architecture in Podravina. Overview with the ypical exam-ples, Meridijani, Samobor.

Srategy for development of Croaian tourism unil the year 2010 (2003). Minisry of tour-ism of Republic of Croaia, Zagreb, URL: htp://www.mint.hr/UserDocsImages/Srate-gija%20hrvatskog%20turizma%20-%20inalna%20verzija.pdf. (25/06/2012).

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