Fostering Interventions for Rapid Market Advancement

FIRMAProject OverviewOctober 01, 2009

Snjezana Derviskadic, MBATourism Team Leader

FIRMA Overview – RCI Conference – Oct-09

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Overview

Focus on three sectors:– Wood processing– Tourism– Light manufacturing (metal processing)

Guiding Objectives:– Stimulate growth of SMEs, generate employment and

increase household income by– Achieving Copenhagen Economic Criteria: “The existence of

a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union.”

Secure sustainability through increasing capacities of FIRMA Implementing Partners

FIRMA Overview – RCI Conference – Oct-09

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2004 2005 2006 2007 2008 2009*

Foreign Arrivals 198 213 250 300 350 325Growth 11% 8% 18% 20% 17% -7%

Overnights / Tourist 2.3 2.2 2.3 2.3 2.2 2.2

Tourism Sector Status

• Moderate drop in foreign arrivals• Entity tourism strategies in process of formal adoption• Tourism law has not advanced• Reduction in budgetary support due to crisis-related

revenue reductions• BiH still an emerging tourism destination of interest,

but well below potential due to weaknesses in marketing and product development

* Jan-June annualized.

NOTE: Official statistics substantially understate actual arrivals

FIRMA Overview – RCI Conference – Oct-09

Tourism Sector Interventions

• Product development– Niche products

– Development efforts based on product linkages rather than geographic definitions

– Product quality measurements and mechanisms

– Environmental Impact Assessment

• Marketing and promotion– Branding

– Marketing strategy

– Marketing and promotion activties

• Workfoce development– Development of industry’s continuous training and education

capacities

• Industry structures– Strenghtening private sector capacities in public-private dialogue

FIRMA Overview – RCI Conference – Oct-09

Tourism Sector Prospects

USAID CCA “legacy”:• BiH autorities:

– Dedicated grant funds for tourism development projects – (both entity budgets)

– Municipal funds

• Significant EU funds:– CBC funds with Croatia, Serbia and Montenegro– IPA Funds

• Dedicated tourism SME grant line - € 2 mil• Dedicated tourism policy support - € 2 mil

• Increased international support: – UNDP– GTZ– Bi-lateral: Spain, the Netherlands, France, Sweden, Switzwerland, Japan,

Austria, ...

FIRMA will resume donor coordination role

FIRMA Overview – RCI Conference – Oct-09

FIRMA

You’ll hear from us soon!