IMPACT OF DEREGULATION ON TOUR GUIDING MARKET IN POLAND

Adam PawliczSzczecin University

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of LifeUniversity of Rijeka, Faculty of Tourism and Hospitality Management Opatija

Role of the tour guide (TG) on tourism market

• TG play an important role in the tourism experience•TG performance might influence also the overall destination image• TG is often considered as a “ ‘Cinderella’ of the tourism industry

Rationale of profession regulation

• Regulation is introduced to correct market failures or achieve socially desired outcomes

• Advocates of regulation underline that free market will fail to produce the socially optimum quantity of the professional service

• Others view it as a monopoly and effective barrier of entry

Deregulation

• According to seminal article of Akerlof (1970) if a customer (car purchaser) is not able to differentiate between high quality and low quality product than market price will not exceed an average price.

• Thus, an owner of a good car cannot receive its true economic value, and the owner is locked in

Tour guides market in Poland

2004 2013 2015

City 3346 5941 -

Field 9219 6637 -

Mountain 4285 4984 3930

Total 16 850 17 562 -

Deregulation of Polish TG market

• Since January 1, 2014 licenses needed to execute a tour guide profession in Poland (with exception of mountain tour guiding) have been abandoned.

• Deregulation process have been strongly opposed by TG associations

Methodology

• 62 filled questionnaires by TG during 5th annual conference of Polish Tourist and Sightseeing Society

• Structured interviews with heads of PTSS and Free Guiding Association

Sample description

• The majority of TGs were over 50 and worked as a TG for more than 10 years

• For almost 60% tour guiding constituted only additional income

• Only of 19% of TGs were actually mountain guides

Results – Information Assymmetry

Strongly agree

Agree Neither agree nor disagree

Disagree Strongly disagree

0%

10%

20%

30%

40%

50%

60%

70%

13%

63%

16%

6%

2%

10%

29%32%

24%

5%

31%

40%

24%

2%3%

TO do know quality of TG services

TO pay more for high quality TG service

TG license issued before 2014 is still a quality certificate

Price of TG service

Strongly agree

Agree Neither agree nor disagree

Disagree Strongly disagree

0%

10%

20%

30%

40%

50%

60%

7%

13%

23%

49%

8%

0%

18%

44%

34%

3%3%

20%

45%

32%

0%

Average price of my TG service in 14 vs. 13 decreased

Average price of TG service in 14 vs. 13 in my region decreased

Price diferentiation is higher in 14 vs. 13

Competition

Strongly agree

Agree Neither agree nor disagree

Disagree Strongly disagree

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

5%

19%

35%34%

6%7%

43%

25%

20%

5%3%

20%

43%

28%

7%

11%

31%

44%

15%

0%

The number of my new TG competitors increased significantly in 14 vs. 13After 1.1.2014 existing TG provided new serives which were previously restrictedThe number of TG services increased significantly in my region in 14 vs 13TO let more often TG job to tourist pilot in 14 vs 13

Thank you for your attention! Hvala vam na pažnji!

Adam PawliczSzczecin UniversityE-mail: adam.pawlicz@wzieu.pl