**Croatian Tourism Development Model – Anatomy of an Un/Sustainability**

Lidija Petrić *University of Split Croatia* 

#### **1. Introduction**

Sustainable Development – 118 Policy and Urban Development – Tourism, Life Science, Management and Environment

World Tourism Organisation / UNEP. (2007). Making tourism more sustainable, A guide

sustainable European tourism"

www.ecotourism.org

for policy makers, in the *Sustainable Tourism Group report*, "Action for more

Four identifiable development paradigms have, at one time or another, dominated development thinking, i. e. modernization, dependency, neoliberalism and the alternative development paradigm (Southgate & Sharpley, 2002; Sofield, 2003; Sharpley, 2009). The last emerged in response to the apparent failure of mainstream, economic-growth based models to deliver development (Sharpley, 2009). Opposite to the other three it has been focused on the content rather than the form of development. Nerfin (as cited in Sofield, 2003; 63) has specified the following premises constituting the alternative development paradigm:


With development being increasingly linked with environmental sustainability, from the late 1980s alternative development effectively became synonymous with sustainable development. However some authors suggest that alternative development model is more focused upon specific societal contexts at specific times while sustainable development adopts a much broader focus, in terms of space and time (it is a global phenomenon and seeks for fair and equitable development for all people both within and between generations) (Sharpley, 2009; 45).

However, despite possible dissimilarities regarding the scope and extent between the notions of alternative and sustainable development, the latter has overwhelmed literature and attracted debate and analysis from virtually all academic standpoints. Many authors have striven (though unsuccessfully) to find a single all-purpose definition of sustainable

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 121

capital, strengthening social cohesion, partnership and networks of relationships are integral

The *economic sustainability* is geared mainly towards improving human welfare, primarily through *growth* in the consumption of goods and services. Economic *efficiency* plays a key role in ensuring both efficient allocations of resources in production, and efficient consumption choices that maximize utility. Problems arise in the valuation of non-market outputs (especially social and ecological services), while issues like *uncertainty, irreversibility and catastrophic collapse* pose additional difficulties (Pearce & Turner 1990, as cited in

> **Economic sustainability**

In parallel with the evolution of sustainable development discourse, concerns about the environmental and social impacts of tourism have escalated in recent years. The main causes



 Deterioration of natural resources (fresh water, land and landscape, marine resources, atmosphere and local resources), which may be resilient, but can

deteriorate rapidly if impact exceeds tolerable limits (carrying capacities);

<sup>1</sup> Adapted from: Munasinghe, M. (2003). Analyzing the nexus of sustainable development and climate change, an overview, Organisation for Economic Co-operation and Development [OECD], 4.03.2011,

**Ecological sustainabilty** 

 resilience/ biodiversity natural resources pollution

 growth efficiency stability

elements of this approach (Munasinghe, 2003).

**Social sustainability**  empowerment inclusion/ consultation governance

Fig. 1. Sustainable development triangle1

Organisation [UNWTO], 2010).

addressed are:

**3. Could tourism become sustainable?** 

for such a rise of concern may be listed as follows:

Available from: http://www.oecd.org/dataoecd/32/54/2510070.pdf

Munasinghe, 2003).

development. Yet at the time when Steer and Wade-Gery wrote their article (1993, as cited in Sharpley & Telfer, 2002) over 70 different definitions were proposed and today they are probably even more numerous. Although the origins of the concept can be traced to the 1960s and the coincidence of the perceived environmental crisis and a global institutional response the most widely cited definition of the concept is given in the so called Bruntland's report stating that "development is sustainable if the present satisfaction of needs does not question the ability of the future generations to satisfy their needs" (World Commission on Environment and Development's [WCED], 1987; 4).

Till today no universally acceptable practical definition of sustainable development has been adopted. However the intention of this chapter is not to add to the already substantial literature on what are regarded as useful approaches to theoretical concepts of sustainability. It accepts that there are many differing approaches to sustainable development and that different policies and practices may be appropriate in different circumstances (Sharpley, 2009). Its main objective is to investigate, through an analysis of the specific case study, whether tourism development model effective in the Republic of Croatia, a well known tourist destination promoted as the "Mediterranean as it once was", is based on the principles of sustainability. The author has analyzed this model by scanning it from all the three aspects of sustainability, i.e. economic, environmental and the social one. For the purpose of a deeper investigation into this matter a desk research has been conducted consulting a substantial amount of sources, such as books, papers, and research studies of which quite a few are based on questionnaires, strategic documents, newspaper articles as well as web posts. The author of the chapter has participated herself in several studies referenced here.

The chapter is structured as follows: after a brief overview of the three main sustainable development aspects, an explanation is provided of the costs tourism development poses globally and locally. Then the concept of sustainable tourism development is introduced expounding in which way tourism has to be developed if the crucial resources are to be preserved in the long term and benefits equally spread among all the stakeholders. The main part of the study endeavours to draw the three main aspects of sustainability together blending the theoretical issues with the practical experience from the case study. The final section, i. e. conclusion, briefly considers the future mechanisms for managing tourism in Croatia in order to make it more sustainable.

#### **2. The aspects of sustainable development**

Although there is no universally acceptable practical definition of sustainable development, the concept has evolved to encompass three major aspects of sustainability: economic, social and environmental (Figure 1).

The *environmental sustainability* focuses on the overall *viability and health of ecological systems*. Natural resource degradation, pollution, and loss of biodiversity are detrimental because they increase vulnerability, undermine system health, and reduce resilience. This aspect of sustainability has been the most often discussed through the literature by numerous authors such as Hall, C. M. & Lew A. A. (1998), Hall, D. (2000), Weaver (2006), and many others.

*Social sustainability* seeks to reduce vulnerability and maintain the health of social and cultural systems by strengthening *social capital* through *empowerment* (Simmons, 1994; Sofield, 2003; Petrić, 2007; Petrić & Pranić, 2010). Preserving cultural diversity and cultural Sustainable Development – 120 Policy and Urban Development – Tourism, Life Science, Management and Environment

development. Yet at the time when Steer and Wade-Gery wrote their article (1993, as cited in Sharpley & Telfer, 2002) over 70 different definitions were proposed and today they are probably even more numerous. Although the origins of the concept can be traced to the 1960s and the coincidence of the perceived environmental crisis and a global institutional response the most widely cited definition of the concept is given in the so called Bruntland's report stating that "development is sustainable if the present satisfaction of needs does not question the ability of the future generations to satisfy their needs" (World Commission on

Till today no universally acceptable practical definition of sustainable development has been adopted. However the intention of this chapter is not to add to the already substantial literature on what are regarded as useful approaches to theoretical concepts of sustainability. It accepts that there are many differing approaches to sustainable development and that different policies and practices may be appropriate in different circumstances (Sharpley, 2009). Its main objective is to investigate, through an analysis of the specific case study, whether tourism development model effective in the Republic of Croatia, a well known tourist destination promoted as the "Mediterranean as it once was", is based on the principles of sustainability. The author has analyzed this model by scanning it from all the three aspects of sustainability, i.e. economic, environmental and the social one. For the purpose of a deeper investigation into this matter a desk research has been conducted consulting a substantial amount of sources, such as books, papers, and research studies of which quite a few are based on questionnaires, strategic documents, newspaper articles as well as web posts. The author of the chapter has

The chapter is structured as follows: after a brief overview of the three main sustainable development aspects, an explanation is provided of the costs tourism development poses globally and locally. Then the concept of sustainable tourism development is introduced expounding in which way tourism has to be developed if the crucial resources are to be preserved in the long term and benefits equally spread among all the stakeholders. The main part of the study endeavours to draw the three main aspects of sustainability together blending the theoretical issues with the practical experience from the case study. The final section, i. e. conclusion, briefly considers the future mechanisms for managing tourism in

Although there is no universally acceptable practical definition of sustainable development, the concept has evolved to encompass three major aspects of sustainability: economic, social

The *environmental sustainability* focuses on the overall *viability and health of ecological systems*. Natural resource degradation, pollution, and loss of biodiversity are detrimental because they increase vulnerability, undermine system health, and reduce resilience. This aspect of sustainability has been the most often discussed through the literature by numerous authors such as Hall, C. M. & Lew A. A. (1998), Hall, D. (2000), Weaver (2006), and many others.

*Social sustainability* seeks to reduce vulnerability and maintain the health of social and cultural systems by strengthening *social capital* through *empowerment* (Simmons, 1994; Sofield, 2003; Petrić, 2007; Petrić & Pranić, 2010). Preserving cultural diversity and cultural

Environment and Development's [WCED], 1987; 4).

participated herself in several studies referenced here.

Croatia in order to make it more sustainable.

and environmental (Figure 1).

**2. The aspects of sustainable development** 

capital, strengthening social cohesion, partnership and networks of relationships are integral elements of this approach (Munasinghe, 2003).

The *economic sustainability* is geared mainly towards improving human welfare, primarily through *growth* in the consumption of goods and services. Economic *efficiency* plays a key role in ensuring both efficient allocations of resources in production, and efficient consumption choices that maximize utility. Problems arise in the valuation of non-market outputs (especially social and ecological services), while issues like *uncertainty, irreversibility and catastrophic collapse* pose additional difficulties (Pearce & Turner 1990, as cited in Munasinghe, 2003).

Fig. 1. Sustainable development triangle1

#### **3. Could tourism become sustainable?**

In parallel with the evolution of sustainable development discourse, concerns about the environmental and social impacts of tourism have escalated in recent years. The main causes for such a rise of concern may be listed as follows:

	- Deterioration of natural resources (fresh water, land and landscape, marine resources, atmosphere and local resources), which may be resilient, but can deteriorate rapidly if impact exceeds tolerable limits (carrying capacities);

<sup>1</sup> Adapted from: Munasinghe, M. (2003). Analyzing the nexus of sustainable development and climate change, an overview, Organisation for Economic Co-operation and Development [OECD], 4.03.2011, Available from: http://www.oecd.org/dataoecd/32/54/2510070.pdf

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 123

(1993), Hall C. M. and Lew (1998), Timothy (1998), Butler (1999), and many others recommend a number of principles that ought to be followed in order to achieve sustainable tourism development. These principles are summarized by Southgate and Sharpley (2002:





243) in the following way:

to visit the affected site (Weaver, 2006).

(Veer & Tuunter, 2005; as cited in Petrić, 2006).

which dominates the economic base of an area.


Due to the elaborated features of tourism industry leading to possible deviations during the process of its development, numerous authors such as Haywood (1988), Bramwell and Lane

Sustainable Development – 122 Policy and Urban Development – Tourism, Life Science, Management and Environment




Due to the elaborated features of tourism industry leading to possible deviations during the process of its development, numerous authors such as Haywood (1988), Bramwell and Lane

full social and economic potential of the tourism industry.

tourism industry needs in order to thrive and grow.

natural and social capacities.

2004-2009 (Demunter, 2010).

 Disruption of wildlife and habitats, including vegetation, endangered species, use of forest resources, intrusion into fragile areas with sensitive ecosystems; Creation of pollution and waste contaminating the land, fresh water sources, marine resources, as well as causing air and noise pollution. Thus, international and domestic tourism emissions from three main sub-sectors (transport, accommodation and activities) are estimated to represent between 3.9% and 6.0% of global emissions in 2005, with approximately 40% of the total being caused by air transport alone (United Nations Environmental Programme [UNEP] & UNWTO, 2008; 33). Environmental problems caused by tourism appear to be even harder since environment, especially the natural one, is a basic resource that (1993), Hall C. M. and Lew (1998), Timothy (1998), Butler (1999), and many others recommend a number of principles that ought to be followed in order to achieve sustainable tourism development. These principles are summarized by Southgate and Sharpley (2002: 243) in the following way:


Croatian Tourism Development Model – Anatomy of an Un/Sustainability 125

In order to prove the above hypothesis, a conceptual model has been introduced. It reveals the main factors featuring the three main aspects of sustainability and links them with the

economic sustainability:


ecological sustainability:

planning process - networks and clusters - socially responsible behaviour - public-private partnership

Fig. 2. Conceptual model presenting relations between factors and issues related to different

To answer this question it is necessary to reassess the development model of Croatian tourism so far. It started to develop in the late sixties, at a time when the country's competitiveness was largely defined by its inherited, comparative advantages which got aligned with the long-dominant developmental paradigm of the so-called "sun-sea-sand" or mass tourism. Exclusive reliance on natural comparative advantages led to stagnation in the development of higher value-added products. Consequently, the growing influx of tourists did not result in proportionally higher foreign exchange earnings from their spending, and Croatia was on its way to becoming a "low-cost" destination. Today however, it is neither low cost anymore nor necessarily good value for money. According to the results from the latest "TOMAS" research on attitudes and consumption of the foreign tourist in Croatia (Marušić et al., 2010), in comparison with some Mediterranean countries, elements such as


sustainability:

**4.1 Croatian tourism - is it economically sustainable at all?** 


demand

Issues to be considered in order to achieve


Issues to be considered in order to achieve


SUSTAINABLE TOURIST DESTINATION

Issues to be considered in order to achieve social



issues that ought to be considered in order to achieve sustainability.

**Factors featuring economic sustainability**  - growth - efficiency - stability

**Factors featuring ecological sustainabilty**  - biodiversity - protection of natural resources - pollution

**Factors featuring social sustainability**  - empowerment - inclusion/ consultation - governance

aspects of sustainability

the cases of village tourism in Senegal and Sri Lanka (Inskeep, 2006), but can also be found elsewhere, in developed as well as underdeveloped countries. However it is important to stress that in most of the developed countries community consultative arrangements are normative parts of development while in developing countries such a concept may be opposed by the elites running such countries due to the element of power sharing (Tosun, 2000).


As seen from the above, sustainability refers to the capacity for continuance of any destination and is, therefore, a function of complex inter-relationships between society and natural resources, a myriad of socioeconomic and political structures and local-scale management decisions2. It depends above all on recognition and utilisation of local social and institutional capital (Southgate & Sharpley, 2002: 255-256).

#### **4. Case study: Tourism development in Croatia**

After having elaborated the theoretical framework of the notion, principles and aspects of sustainability and the reasons for their implementation into any model of tourism development, there follows the empirical research based on Croatian tourism development model as a specific case study. It must be noted that this case study draws on a more detailed studies and analyses in which the author has participated so far. In line with the study's goal the main research hypothesis has been shaped:


<sup>2</sup> Very useful source of information regarding sustainable tourism development with a number of case studies and good practices is the "Sustainable Tourism Gateway" web site. It was set up on 27 September 2008 - the World Tourism Day, by The Global Development Research Centre in order to develop awareness and educate on issues related to sustainable tourism, to assist in policy and programme development, and to facilitate monitoring and evaluation. 4.09.2011, Available from: http://www.gdrc.org/uem/eco-tour/st-about.html

Sustainable Development – 124 Policy and Urban Development – Tourism, Life Science, Management and Environment





As seen from the above, sustainability refers to the capacity for continuance of any destination and is, therefore, a function of complex inter-relationships between society and natural resources, a myriad of socioeconomic and political structures and local-scale management decisions2. It depends above all on recognition and utilisation of local social

After having elaborated the theoretical framework of the notion, principles and aspects of sustainability and the reasons for their implementation into any model of tourism development, there follows the empirical research based on Croatian tourism development model as a specific case study. It must be noted that this case study draws on a more detailed studies and analyses in which the author has participated so far. In line with the


2 Very useful source of information regarding sustainable tourism development with a number of case studies and good practices is the "Sustainable Tourism Gateway" web site. It was set up on 27 September 2008 - the World Tourism Day, by The Global Development Research Centre in order to develop awareness and educate on issues related to sustainable tourism, to assist in policy and programme development, and to facilitate monitoring and evaluation. 4.09.2011, Available from:

of life, the environment and political structures in the destination area.

power sharing (Tosun, 2000).

Bramwell and Lane (2000).

tourism development so far.

http://www.gdrc.org/uem/eco-tour/st-about.html

stakeholders has to be stressed too.

and institutional capital (Southgate & Sharpley, 2002: 255-256).

**4. Case study: Tourism development in Croatia** 

study's goal the main research hypothesis has been shaped:

host communities and tourists themselves.

the cases of village tourism in Senegal and Sri Lanka (Inskeep, 2006), but can also be found elsewhere, in developed as well as underdeveloped countries. However it is important to stress that in most of the developed countries community consultative arrangements are normative parts of development while in developing countries such a concept may be opposed by the elites running such countries due to the element of In order to prove the above hypothesis, a conceptual model has been introduced. It reveals the main factors featuring the three main aspects of sustainability and links them with the issues that ought to be considered in order to achieve sustainability.

Fig. 2. Conceptual model presenting relations between factors and issues related to different aspects of sustainability

#### **4.1 Croatian tourism - is it economically sustainable at all?**

To answer this question it is necessary to reassess the development model of Croatian tourism so far. It started to develop in the late sixties, at a time when the country's competitiveness was largely defined by its inherited, comparative advantages which got aligned with the long-dominant developmental paradigm of the so-called "sun-sea-sand" or mass tourism. Exclusive reliance on natural comparative advantages led to stagnation in the development of higher value-added products. Consequently, the growing influx of tourists did not result in proportionally higher foreign exchange earnings from their spending, and Croatia was on its way to becoming a "low-cost" destination. Today however, it is neither low cost anymore nor necessarily good value for money. According to the results from the latest "TOMAS" research on attitudes and consumption of the foreign tourist in Croatia (Marušić et al., 2010), in comparison with some Mediterranean countries, elements such as

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 127





It is obvious that development problems of the Croatian hotel industry can be solved only by considerable investments aimed at repositioning the entire hotel industry, along with the changes in the development strategy and the completion of market infrastructure in the country. Unfortunately, investments into new assets in the Hotel and Restaurant (HR) sector in the period from 2000 to 2009 make up only 5% of the total investments into Croatian economy while direct foreign investments into the HR sector participate with only 2.5 % in the total direct foreign investments in the country (Croatian Bureau for Statistics, 2010). However, it is to be noted that with the imminent Croatian accession to the EU the investment conditions have been gradually improving and the number of foreign investors in Croatian hotels has gradually been rising reaching total of 1076 in 2010 (Novak et al., 2011). Among them 65 are owned by companies from the neighbouring countries (Austria, Italy, Hungary, and Bosnia and Herzegovina), which may be explained by geographical proximity, the size of potential market, and cultural similarity. Most of the foreign owned hotels are located in the Istria County (36), then in the Split-Dalmatia County (25), the Primorje-Gorski Kotar County (22), the Zadar County (10), the Dubrovnik-Neretva County (8), the Šibenik-Knin County (3), the City of Zagreb (2), and the Krapina-Zagorje County (1). With the exception of the latter two, all other counties are coastal. Such uneven distribution of hotels results from the fact that most arrivals and room-nights are realized along the Adriatic coast where most foreign-owned hotels are located. Namely, out of 56 million room-nights and 10.6 million guests who visited Croatia in 2010, over 90 % were realized along the coast7. Since distribution of demand has been the same since the earlier time of Croatian tourism development, it gives an impression that thus far, increasing number of tourist arrivals, without any spatial or time consideration, is the centrepiece of Croatia's tourism developmental strategy. Attempting to attract as many investors (above all the foreign ones) as possible, with no cost considerations, coastal cities' and municipalities' authorities supported by different profit seeking lobbying groups and individuals have been adjusting spatial plans to the needs of the potential investors in terms of changing the

.

on average more than 5.7 years (Horwath consulting, 2010);

purpose of the land zones from agricultural into the building ones.

http://www.mint.hr/UserDocsImages/t-promet-2010.pdf, Ministry of tourism

http://www.hfp.hr/UserDocsImages/portfelji/portfelj\_hr\_100.xls, Croatian Privatization Fund

Foreign hotel is here defined as a hotel present in Croatia by share of ownership above 10%.

 5

6

7

26.05. 2011, Available from:

20.06.2011, Available from;

Consulting, 2010);

Monte Negro) (Ivandić et. al., 2010);

entertainment, cultural manifestations, shopping opportunities, sport and recreation facilities, local transportation quality, beach facilities, etc. are still the "Achilles' heel" of the Croatian tourism offer. Hence the average tourist consumption per day is only 58 €, out of which only 7.12 € is spent on sport, recreation and cultural activities.

What caused such a situation? A considerable part of the "blame" lies in the political and macroeconomic circumstances (command economy in the first place) to which the Croatian tourism industry was subject at earlier times. This, however, does not provide a satisfactory explanation for the actual situation. Namely, in the period after gaining its independence (1991), Croatia has unfortunately witnessed merely pale and cosmetic attempts to change the tourism development paradigm, meaning the shift from valorisation of comparative advantages (predominantly based on exquisite natural resources) to building and promoting its competitive advantages. The competitive advantages of a nation, according to Porter (1990), are based on the advanced resource preconditions founded on knowledge, developed infrastructure, high technology and innovation. Competitiveness is therefore a multidimensional phenomenon that must be achieved not only at the level of a firm, but also at the level of an individual, a sector, and a state in general which, in the case of Croatia has still not been recognized to the full extent.

Apart from the misunderstanding of the concept of competitiveness, there has often been a lack of understanding of the true meaning of tourism and its effects and significance for the Croatian national economy. Namely, tourism is frequently discussed as if it were constituted solely by the hotel sector which in turn gives a wholly inaccurate image of the diverse economic effects of the tourist industry. At the same time even the hotel sector operation shows an unfavourable picture. According to the Ministry of Tourism (2010) its share within global accommodation capacities in 2009 accounts for as little as 12.5 % and tourist resorts represent 3.2 % of the total share. Besides, the share of the high-quality hotel and resort facilities is extremely low, i. e. the five star hotels account for 3.9 % while the four star hotels represent 24 % of the total hotel beds; over 54 % are the three star hotels.

Such an unsatisfying picture of the hotels with the domination of the lower category capacities, results in lower occupancy3, high seasonality of operation4 and consequently poor performance of the entire sector (Ministry of Tourism, 2010). To prove these statements some results of the hotel sector performance research are presented:


 3 Thus the hotel accommodation capacities prove to be used for only 118 days in 2009, or 32.3 % on an annual scale. The use of other forms of accommodation capacities remains even lower; tourist resorts 31.8 %, 16.4 % for camping sites, 11.8 % for private accommodation. The use of hotel accommodation is far below the limits of profitability.

<sup>4</sup> 51.6 per cent of arrivals and 63 per cent of overnights have been realized only in July and August; in the period from May till September over 91 per cent of overnights and 83 % of arrivals have been realized.

Sustainable Development – 126 Policy and Urban Development – Tourism, Life Science, Management and Environment

entertainment, cultural manifestations, shopping opportunities, sport and recreation facilities, local transportation quality, beach facilities, etc. are still the "Achilles' heel" of the Croatian tourism offer. Hence the average tourist consumption per day is only 58 €, out of

What caused such a situation? A considerable part of the "blame" lies in the political and macroeconomic circumstances (command economy in the first place) to which the Croatian tourism industry was subject at earlier times. This, however, does not provide a satisfactory explanation for the actual situation. Namely, in the period after gaining its independence (1991), Croatia has unfortunately witnessed merely pale and cosmetic attempts to change the tourism development paradigm, meaning the shift from valorisation of comparative advantages (predominantly based on exquisite natural resources) to building and promoting its competitive advantages. The competitive advantages of a nation, according to Porter (1990), are based on the advanced resource preconditions founded on knowledge, developed infrastructure, high technology and innovation. Competitiveness is therefore a multidimensional phenomenon that must be achieved not only at the level of a firm, but also at the level of an individual, a sector, and a state in general which, in the case of Croatia

Apart from the misunderstanding of the concept of competitiveness, there has often been a lack of understanding of the true meaning of tourism and its effects and significance for the Croatian national economy. Namely, tourism is frequently discussed as if it were constituted solely by the hotel sector which in turn gives a wholly inaccurate image of the diverse economic effects of the tourist industry. At the same time even the hotel sector operation shows an unfavourable picture. According to the Ministry of Tourism (2010) its share within global accommodation capacities in 2009 accounts for as little as 12.5 % and tourist resorts represent 3.2 % of the total share. Besides, the share of the high-quality hotel and resort facilities is extremely low, i. e. the five star hotels account for 3.9 % while the four

star hotels represent 24 % of the total hotel beds; over 54 % are the three star hotels.

some results of the hotel sector performance research are presented:

Such an unsatisfying picture of the hotels with the domination of the lower category capacities, results in lower occupancy3, high seasonality of operation4 and consequently poor performance of the entire sector (Ministry of Tourism, 2010). To prove these statements



 Thus the hotel accommodation capacities prove to be used for only 118 days in 2009, or 32.3 % on an annual scale. The use of other forms of accommodation capacities remains even lower; tourist resorts 31.8 %, 16.4 % for camping sites, 11.8 % for private accommodation. The use of hotel accommodation is

 51.6 per cent of arrivals and 63 per cent of overnights have been realized only in July and August; in the period from May till September over 91 per cent of overnights and 83 % of arrivals have been

which only 7.12 € is spent on sport, recreation and cultural activities.

has still not been recognized to the full extent.

and 54.5 € respectively;

them are producing loss;

far below the limits of profitability.

 3

4

realized.


It is obvious that development problems of the Croatian hotel industry can be solved only by considerable investments aimed at repositioning the entire hotel industry, along with the changes in the development strategy and the completion of market infrastructure in the country. Unfortunately, investments into new assets in the Hotel and Restaurant (HR) sector in the period from 2000 to 2009 make up only 5% of the total investments into Croatian economy while direct foreign investments into the HR sector participate with only 2.5 % in the total direct foreign investments in the country (Croatian Bureau for Statistics, 2010). However, it is to be noted that with the imminent Croatian accession to the EU the investment conditions have been gradually improving and the number of foreign investors in Croatian hotels has gradually been rising reaching total of 1076 in 2010 (Novak et al., 2011). Among them 65 are owned by companies from the neighbouring countries (Austria, Italy, Hungary, and Bosnia and Herzegovina), which may be explained by geographical proximity, the size of potential market, and cultural similarity. Most of the foreign owned hotels are located in the Istria County (36), then in the Split-Dalmatia County (25), the Primorje-Gorski Kotar County (22), the Zadar County (10), the Dubrovnik-Neretva County (8), the Šibenik-Knin County (3), the City of Zagreb (2), and the Krapina-Zagorje County (1). With the exception of the latter two, all other counties are coastal. Such uneven distribution of hotels results from the fact that most arrivals and room-nights are realized along the Adriatic coast where most foreign-owned hotels are located. Namely, out of 56 million room-nights and 10.6 million guests who visited Croatia in 2010, over 90 % were realized along the coast7. Since distribution of demand has been the same since the earlier time of Croatian tourism development, it gives an impression that thus far, increasing number of tourist arrivals, without any spatial or time consideration, is the centrepiece of Croatia's tourism developmental strategy. Attempting to attract as many investors (above all the foreign ones) as possible, with no cost considerations, coastal cities' and municipalities' authorities supported by different profit seeking lobbying groups and individuals have been adjusting spatial plans to the needs of the potential investors in terms of changing the purpose of the land zones from agricultural into the building ones.

<sup>5</sup> 26.05. 2011, Available from:

http://www.hfp.hr/UserDocsImages/portfelji/portfelj\_hr\_100.xls, Croatian Privatization Fund

<sup>6</sup> Foreign hotel is here defined as a hotel present in Croatia by share of ownership above 10%.

<sup>7</sup> 20.06.2011, Available from;

http://www.mint.hr/UserDocsImages/t-promet-2010.pdf, Ministry of tourism

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 129

Agricultural Land (Narodne novine, No. 125/08), can be expropriated and turned into a golf course with no compensation for the change of its purpose. Thus the Law on Golf Courses is in contradiction with the Law on Agricultural Land as it prioritises golf course projects over food production, i. e. over agricultural land which is the most important country's resource. As the counties' spatial plans provide for 89 golf courses<sup>10</sup> throughout Croatia, this has provoked numerous debates over the necessity of building so many of them, having in mind potential water pollution and biodiversity threats especially on ecologically sensitive islands and coastal zones consisting of porous limestone. At the same time critics suggest that these laws could encourage land speculators whose only intention is to build as many apartments and villas as possible with the purpose of selling them on the real estate market instead of developing tourist resorts that might work throughout the year and employ local people. Such a scenario related to the golf course project on the top of the hill above the city of Dubrovnik has been recently disclosed becoming an object of intense public disputes

Finally, to conclude the session dealing with the economic (un)sustainability of Croatian tourism, the review on its financial results has to be given. In the financial year 2010, revenues from tourism reached € 6.24 billion<sup>11</sup>, representing a slight decrease of 1% over the previous year, but a decrease of 8.4% over 2008 (Hrvatska Narodna Banka, 2010). Even such a relatively small amount of tourism receipts as compared to some other European countries of similar size such as Austria, Denmark, Greece, Netherlands, Portugal, etc. (UNWTO, 2011), makes up an extremely important contribution to the Croatian economy, as these receipts are used to cover 55-70 per cent of the foreign trade deficit in the recent years (Blažević, 2007). Another significant indicator of the importance of tourism for the Croatian national economy is its impact on GDP. According to the Ministry of Tourism<sup>12</sup> the share of direct tourism receipts in the country's GDP ranged from 19.4 % in 2005 to 14 % in 2010 <sup>13</sup>. However, such a high share of tourism receipts in the national GDP, especially in the earlier years indicates high dependency of Croatian economy on tourism which is in collision with the basic principles of economic sustainability. At the same time tourism leakages are not negligible. Thus, the Tourism Satellite Account for 2006 (World Travel and Tourism Council, as cited in Petrić, 2006) estimated that direct leakages of the overall tourist economy for Croatia account for about \$4.5 billion or 36.5 % of its total GDP. The older analysis carried out by Jurčić (2000) who, lacking the updated intersectoral tables of the Croatian economy, adjusted those from 1987 and estimated that in 2000 the share of total import content in tourism economy amounted to 32 % of its GDP. Evidently, the situation with the tourism

10 26.06.2011, Available from: http://www.business.hr/hr/Naslovnica/Politika/VIDEO-Hrvatska-

13 On the other hand Tourism Sattelite Account for Croatia (World Travel and Tourism Council; 2011) estimates that direct contribution of Croatian tourism to its GDP in 2010 is 11% and total contribution is 26.3 %. Retrieved from: http://www.wttc.org/eng/Tourism\_Research/Economic\_Data\_Search\_Tool/ (24.06.2011). Such diverse information on the effects of tourism on Croatian economy (due to the inadequate statistics) is also a proof that so called "strategic sector of economy" is often misunderstood

(Šutalo, 2009).

leakages in Croatia is getting even worse.

and its real effects are never estimated precisely.

11 26.06.2011, Available from: http://limun.hr/main.aspx?id=694037 12 26.06.2011, Available from: http://www.mint.hr/default.aspx?id=5778

mala-zemlja-za-velika-golf-igralista

Apart from the unsatisfying structure, quality and territorial distribution of hotels, their high seasonality and unsatisfying business results, high level of the state's intervention in the hotel sector's portfolio, etc. there are also few other problems that deserve attention as they are showing economic inefficiency of the entire tourism industry, not just the hotel sector.

First of all, Croatia has been experiencing the booming development of the households renting accommodation, the so called 'private accommodation'! In 2009, out of 969,726 beds, 435,295 (or 45% of the total) belong to this type of accommodation.8 According to the state authorities dealing with the tourism inspections, 'private accommodation' accounts for 80 % of the total accommodation capacities on the Croatian coast. There are approximately 52,000 families registered to rent the accommodation, with, according to some estimation, as much as 10 % of that number renting rooms illegally (which brings us to the number of almost one million of unregistered arrivals and six million overnights) (Kljenak, 2011). Due to the fact that Croatia has in recent years faced a complete breakdown of the traditional industrial production which forced people to turn to tourism as an alternative, Croatian authorities have tolerated such huge and still growing private accommodation capacities. By this they have been buying social peace. The problem of private accommodation capacities has yet another dimension, the one referring to their illegal building or adaptation/renovation9 thus damaging the aesthetic and historical image of the coastline and lowering the quality of the overall supply. How is that possible? On one side the reason lies in the fact that the administrative procedure of getting building permission is long and complicated and hence forces people to choose shortcuts hoping that they will be spared the penalties (due to the poor inspections). On the other hand, local communities highly tolerate illegal building due to the lack of knowledge and awareness of the environmental consequences of such deeds. Furthermore, as an answer to the earlier regime suppressions people strongly support all the profit oriented activities regardless of the costs. Although this situation is gradually changing as Croatia is adjusting its legal framework to the European Union's laws and behaviour standards, the government still does not have a strategy regarding the expected growth of this kind of accommodation, its spatial distribution, the level of desired quality, its relations to the other types of accommodation, etc.

Another important aspect of economic sustainability is the way Croatia is treating its resources used by tourism, especially the public ones. Although this has partially been explained by the example of illegal building of the houses for rental purposes, the following example gives us another perspective into the problem. Namely, the Croatian government has passed the Law on Golf Courses (Narodne novine, No 152/08) thus giving them status of the strategically most important tourist projects. By this Law a potential golf investor can get as much as 30% of the total surface of public land directly negotiating with the local authorities without bidding. Besides, such investor can obtain additional 20 % of the land surface by means of land expropriation from the owners. At the same time agricultural land owned by the state, in spite of being declared country's strategic resource by the Law on

<sup>8</sup> This is 40% more than in the pre-war period.

<sup>9</sup> According to the Croatian Association of Urban Planners there are over 150,000 houses built illegally in Croatia; Perica, S. (2011) U Hrvatskoj 150.000 bespravnih objekata, 26.06.2011, Available from: http://www.vecernji.hr/vijesti/u-hrvatskoj-150-000-bespravnih-objekata-clanak-295867

Sustainable Development – 128 Policy and Urban Development – Tourism, Life Science, Management and Environment

Apart from the unsatisfying structure, quality and territorial distribution of hotels, their high seasonality and unsatisfying business results, high level of the state's intervention in the hotel sector's portfolio, etc. there are also few other problems that deserve attention as they are showing economic inefficiency of the entire tourism industry, not just the hotel

First of all, Croatia has been experiencing the booming development of the households renting accommodation, the so called 'private accommodation'! In 2009, out of 969,726 beds, 435,295 (or 45% of the total) belong to this type of accommodation.8 According to the state authorities dealing with the tourism inspections, 'private accommodation' accounts for 80 % of the total accommodation capacities on the Croatian coast. There are approximately 52,000 families registered to rent the accommodation, with, according to some estimation, as much as 10 % of that number renting rooms illegally (which brings us to the number of almost one million of unregistered arrivals and six million overnights) (Kljenak, 2011). Due to the fact that Croatia has in recent years faced a complete breakdown of the traditional industrial production which forced people to turn to tourism as an alternative, Croatian authorities have tolerated such huge and still growing private accommodation capacities. By this they have been buying social peace. The problem of private accommodation capacities has yet another dimension, the one referring to their illegal building or adaptation/renovation9 thus damaging the aesthetic and historical image of the coastline and lowering the quality of the overall supply. How is that possible? On one side the reason lies in the fact that the administrative procedure of getting building permission is long and complicated and hence forces people to choose shortcuts hoping that they will be spared the penalties (due to the poor inspections). On the other hand, local communities highly tolerate illegal building due to the lack of knowledge and awareness of the environmental consequences of such deeds. Furthermore, as an answer to the earlier regime suppressions people strongly support all the profit oriented activities regardless of the costs. Although this situation is gradually changing as Croatia is adjusting its legal framework to the European Union's laws and behaviour standards, the government still does not have a strategy regarding the expected growth of this kind of accommodation, its spatial distribution, the level of desired quality,

Another important aspect of economic sustainability is the way Croatia is treating its resources used by tourism, especially the public ones. Although this has partially been explained by the example of illegal building of the houses for rental purposes, the following example gives us another perspective into the problem. Namely, the Croatian government has passed the Law on Golf Courses (Narodne novine, No 152/08) thus giving them status of the strategically most important tourist projects. By this Law a potential golf investor can get as much as 30% of the total surface of public land directly negotiating with the local authorities without bidding. Besides, such investor can obtain additional 20 % of the land surface by means of land expropriation from the owners. At the same time agricultural land owned by the state, in spite of being declared country's strategic resource by the Law on

9 According to the Croatian Association of Urban Planners there are over 150,000 houses built illegally in Croatia; Perica, S. (2011) U Hrvatskoj 150.000 bespravnih objekata, 26.06.2011, Available from: http://www.vecernji.hr/vijesti/u-hrvatskoj-150-000-bespravnih-objekata-clanak-295867

its relations to the other types of accommodation, etc.

8 This is 40% more than in the pre-war period.

sector.

Agricultural Land (Narodne novine, No. 125/08), can be expropriated and turned into a golf course with no compensation for the change of its purpose. Thus the Law on Golf Courses is in contradiction with the Law on Agricultural Land as it prioritises golf course projects over food production, i. e. over agricultural land which is the most important country's resource. As the counties' spatial plans provide for 89 golf courses<sup>10</sup> throughout Croatia, this has provoked numerous debates over the necessity of building so many of them, having in mind potential water pollution and biodiversity threats especially on ecologically sensitive islands and coastal zones consisting of porous limestone. At the same time critics suggest that these laws could encourage land speculators whose only intention is to build as many apartments and villas as possible with the purpose of selling them on the real estate market instead of developing tourist resorts that might work throughout the year and employ local people. Such a scenario related to the golf course project on the top of the hill above the city of Dubrovnik has been recently disclosed becoming an object of intense public disputes (Šutalo, 2009).

Finally, to conclude the session dealing with the economic (un)sustainability of Croatian tourism, the review on its financial results has to be given. In the financial year 2010, revenues from tourism reached € 6.24 billion<sup>11</sup>, representing a slight decrease of 1% over the previous year, but a decrease of 8.4% over 2008 (Hrvatska Narodna Banka, 2010). Even such a relatively small amount of tourism receipts as compared to some other European countries of similar size such as Austria, Denmark, Greece, Netherlands, Portugal, etc. (UNWTO, 2011), makes up an extremely important contribution to the Croatian economy, as these receipts are used to cover 55-70 per cent of the foreign trade deficit in the recent years (Blažević, 2007). Another significant indicator of the importance of tourism for the Croatian national economy is its impact on GDP. According to the Ministry of Tourism<sup>12</sup> the share of direct tourism receipts in the country's GDP ranged from 19.4 % in 2005 to 14 % in 2010 <sup>13</sup>. However, such a high share of tourism receipts in the national GDP, especially in the earlier years indicates high dependency of Croatian economy on tourism which is in collision with the basic principles of economic sustainability. At the same time tourism leakages are not negligible. Thus, the Tourism Satellite Account for 2006 (World Travel and Tourism Council, as cited in Petrić, 2006) estimated that direct leakages of the overall tourist economy for Croatia account for about \$4.5 billion or 36.5 % of its total GDP. The older analysis carried out by Jurčić (2000) who, lacking the updated intersectoral tables of the Croatian economy, adjusted those from 1987 and estimated that in 2000 the share of total import content in tourism economy amounted to 32 % of its GDP. Evidently, the situation with the tourism leakages in Croatia is getting even worse.

12 26.06.2011, Available from: http://www.mint.hr/default.aspx?id=5778

<sup>10 26.06.2011,</sup> Available from: http://www.business.hr/hr/Naslovnica/Politika/VIDEO-Hrvatskamala-zemlja-za-velika-golf-igralista

<sup>11 26.06.2011,</sup> Available from: http://limun.hr/main.aspx?id=694037

<sup>13</sup> On the other hand Tourism Sattelite Account for Croatia (World Travel and Tourism Council; 2011) estimates that direct contribution of Croatian tourism to its GDP in 2010 is 11% and total contribution is 26.3 %. Retrieved from: http://www.wttc.org/eng/Tourism\_Research/Economic\_Data\_Search\_Tool/ (24.06.2011). Such diverse information on the effects of tourism on Croatian economy (due to the inadequate statistics) is also a proof that so called "strategic sector of economy" is often misunderstood and its real effects are never estimated precisely.

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 131

settlements in the hinterland. It has only 4,138 inhabitants and realizes 86,216 tourist arrivals and 439,909 overnights, meaning that the number of tourists per one inhabitant is 20.8, the number of tourist overnights per inhabitant is 106.3, the number of tourists per km2 is 1,144.2, etc. There has been an attempt to count carrying capacities of the city of Hvar, resulting in a proposal of an eco charge introduction at the city level (Taylor et al., 2005). Unfortunately the proposal has failed due to the strong opposition of the local stakeholders, predominantly people from tourism business who thought that this would push up the

Even before this case, there was a Carrying Capacity Assessment Study done for the island of Vis in early 1990-ties (Dragičević et al., 1997), but although the study had been completed,

The problems arising from the overuse or wrong use of resources in the process of tourism development in Croatia can be seen almost everywhere in its coastal area and in all the types of tourism. However, apart from the residential tourism, nautical tourism has been producing most of the ecological problems so far. Why is that so? Adriatic is a shallow sea rich with different endemic species of sea flora and fauna as compared to the rest of the Mediterranean Sea to which it belongs. They are threatened by an ever rising number of sea vessels that destroy their habitats by draining ballast waters and importing invasive species such as algae Caulerpa taxifolia and Caulerpa racemosa that have already invaded those parts of the Adriatic that are attractive to nautical tourists (such as the Kornati Archipelago National Park, the bay of Stari Grad on the island of Hvar, the surroundings of the Mljet Island National Park, etc.) (Fredotović et al., 2003; Petrić, 2003; Petrić et al., 2004; Petrić, 2005). Besides, for the purpose of nautical tourism development, new marinas are being constantly built, rapidly changing the coastal landscape and threatening biodiversity. As for an illustration, the coastal counties' spatial plans provide for 300 new locations aimed at building new marinas with 33,655 new berths (out of which 25,755 in the sea). Hence, together with the existing ones the total number of berths will be 54,675 (Ministry of Sea, Transport and Infrastructure & Ministry of Tourism, 2008). Apart from this, due to the poor control, there are an enormous number of yachts dropping their anchors illegally in hundreds of wild coves scattered along the coast. Illegal anchoring causes not only the loss of economic benefits in terms of unpaid port charges but also produces environmental costs that are to be paid by society and not the polluter. Similar situation is also with big cruisers that pay daily visits to Croatian ports such as Dubrovnik, Split and Zadar. These ports mostly do not have enough capacities to host so many cruisers in terms of inconvenient infrastructure, insufficient system of monitoring and insufficient material and human capacities to cope with possible pollutions. Not less important to mention is that too many cruise tourists visiting destinations like Dubrovnik may cause discontent of the tourists who reside in the city hotels. According to the results of a research on cruising tourism in Croatia (Horak et. al., 2007), there were almost 600,000 cruise passengers who visited Dubrovnik in 2006 (82% of the total number of cruise passengers in Croatia). In the peak days more than 19,000 cruise tourists happen to visit the old city at the same moment, which together with the numerous excursionists, residential tourists and local population poses tremendous pressure on the city's carrying capacities. The study reveals that almost every fourth tourist (23% of the interviewed) residing in the city hotels thinks that such a huge number of cruise

none of the measures suggested by it has been implemented so far.

tourists affect negatively the attractiveness of the city.

prices and consequently reduce demand.

The above analysis of the economic performance of the Croatian tourism industry has shown that the main requirements of sustainability, i. e. *growth, efficiency and stability,*  expressed and elaborated through issues such as appropriateness of accommodation quality and quantity, the role of government in the hotel sector ownership structure, attractiveness of tourism industry to foreign investments, the way of using resources for the purpose of tourism development, time and spatial distribution of tourism demand etc., have not been fulfilled in a satisfactory manner. From what has been shown it could be concluded that Croatian tourism has been developing with hardly any strategy. Measures have been put into operation with no respect to the wider context of development and consequences of the bad decisions have never been penalized.

#### **4.2 What about ecological sustainability?**

Many of the issues related to the economic aspects of the Croatian tourism sustainability discussed so far are closely connected to its ecological sustainability, these two being the two sides of the same coin. This is especially true when it comes to the mater of resources and land use. Spatial and seasonal concentration of tourists and tourism facilities, illegal building on the coastal zone, land misuse and speculations, are notably ecological problems but they also create considerable environmental costs and in the long term reduce potential economic benefits.

Concentration of too many tourists in a short period of season (from June to September) creates problems with water and electricity supply (especially on islands), different types of pollution (water, land and air pollution) and the consequent change or loss of biodiversity, damage on cultural heritage etc. (Petrić, 2005). Most of the Croatian coast is seasonally highly saturated by tourists and their activities meaning that carrying capacities<sup>14</sup> of the space are not respected thus leading to environmental, socio-cultural and economic changes and the loss of a destination's attractiveness. As an illustration the case of the island of Hvar, one of the most popular tourist destinations, may be used. Hvar is one of the 66 inhabited islands and occupies an area of 299.66 km2. According to the 2001 Census (Croatian Bureau of Statistics, 2001), the whole of the island had 11,103 inhabitants with population density of only 37 inhabitants per km2. Although the results of the 2011 Census have not been published yet, the trend of depopulation was evidenced a long time ago. In the season of 2010 the number of tourists who visited island was 172,554 realizing 1,132,982 overnights. From these numbers it is easy to count some tourist density indicators, such as:


When these indicators are counted at the level of a single settlement, such as the popular town of Hvar, one can get the idea on the level of saturation such island destinations suffer from. Namely the town of Hvar covers only 75.35 km2, including the town itself and five

<sup>14</sup> Carrying capacity refers to the number of individuals who can be supported in a given area within natural resource limits, and without degrading the natural, social, cultural and economic environment for present and future generations.

Sustainable Development – 130 Policy and Urban Development – Tourism, Life Science, Management and Environment

The above analysis of the economic performance of the Croatian tourism industry has shown that the main requirements of sustainability, i. e. *growth, efficiency and stability,*  expressed and elaborated through issues such as appropriateness of accommodation quality and quantity, the role of government in the hotel sector ownership structure, attractiveness of tourism industry to foreign investments, the way of using resources for the purpose of tourism development, time and spatial distribution of tourism demand etc., have not been fulfilled in a satisfactory manner. From what has been shown it could be concluded that Croatian tourism has been developing with hardly any strategy. Measures have been put into operation with no respect to the wider context of development and consequences of the

Many of the issues related to the economic aspects of the Croatian tourism sustainability discussed so far are closely connected to its ecological sustainability, these two being the two sides of the same coin. This is especially true when it comes to the mater of resources and land use. Spatial and seasonal concentration of tourists and tourism facilities, illegal building on the coastal zone, land misuse and speculations, are notably ecological problems but they also create considerable environmental costs and in the long term reduce potential

Concentration of too many tourists in a short period of season (from June to September) creates problems with water and electricity supply (especially on islands), different types of pollution (water, land and air pollution) and the consequent change or loss of biodiversity, damage on cultural heritage etc. (Petrić, 2005). Most of the Croatian coast is seasonally highly saturated by tourists and their activities meaning that carrying capacities<sup>14</sup> of the space are not respected thus leading to environmental, socio-cultural and economic changes and the loss of a destination's attractiveness. As an illustration the case of the island of Hvar, one of the most popular tourist destinations, may be used. Hvar is one of the 66 inhabited islands and occupies an area of 299.66 km2. According to the 2001 Census (Croatian Bureau of Statistics, 2001), the whole of the island had 11,103 inhabitants with population density of only 37 inhabitants per km2. Although the results of the 2011 Census have not been published yet, the trend of depopulation was evidenced a long time ago. In the season of 2010 the number of tourists who visited island was 172,554 realizing 1,132,982 overnights.

From these numbers it is easy to count some tourist density indicators, such as:




When these indicators are counted at the level of a single settlement, such as the popular town of Hvar, one can get the idea on the level of saturation such island destinations suffer from. Namely the town of Hvar covers only 75.35 km2, including the town itself and five

14 Carrying capacity refers to the number of individuals who can be supported in a given area within natural resource limits, and without degrading the natural, social, cultural and economic environment

bad decisions have never been penalized.

economic benefits.

for present and future generations.

**4.2 What about ecological sustainability?** 

settlements in the hinterland. It has only 4,138 inhabitants and realizes 86,216 tourist arrivals and 439,909 overnights, meaning that the number of tourists per one inhabitant is 20.8, the number of tourist overnights per inhabitant is 106.3, the number of tourists per km2 is 1,144.2, etc. There has been an attempt to count carrying capacities of the city of Hvar, resulting in a proposal of an eco charge introduction at the city level (Taylor et al., 2005). Unfortunately the proposal has failed due to the strong opposition of the local stakeholders, predominantly people from tourism business who thought that this would push up the prices and consequently reduce demand.

Even before this case, there was a Carrying Capacity Assessment Study done for the island of Vis in early 1990-ties (Dragičević et al., 1997), but although the study had been completed, none of the measures suggested by it has been implemented so far.

The problems arising from the overuse or wrong use of resources in the process of tourism development in Croatia can be seen almost everywhere in its coastal area and in all the types of tourism. However, apart from the residential tourism, nautical tourism has been producing most of the ecological problems so far. Why is that so? Adriatic is a shallow sea rich with different endemic species of sea flora and fauna as compared to the rest of the Mediterranean Sea to which it belongs. They are threatened by an ever rising number of sea vessels that destroy their habitats by draining ballast waters and importing invasive species such as algae Caulerpa taxifolia and Caulerpa racemosa that have already invaded those parts of the Adriatic that are attractive to nautical tourists (such as the Kornati Archipelago National Park, the bay of Stari Grad on the island of Hvar, the surroundings of the Mljet Island National Park, etc.) (Fredotović et al., 2003; Petrić, 2003; Petrić et al., 2004; Petrić, 2005). Besides, for the purpose of nautical tourism development, new marinas are being constantly built, rapidly changing the coastal landscape and threatening biodiversity. As for an illustration, the coastal counties' spatial plans provide for 300 new locations aimed at building new marinas with 33,655 new berths (out of which 25,755 in the sea). Hence, together with the existing ones the total number of berths will be 54,675 (Ministry of Sea, Transport and Infrastructure & Ministry of Tourism, 2008). Apart from this, due to the poor control, there are an enormous number of yachts dropping their anchors illegally in hundreds of wild coves scattered along the coast. Illegal anchoring causes not only the loss of economic benefits in terms of unpaid port charges but also produces environmental costs that are to be paid by society and not the polluter. Similar situation is also with big cruisers that pay daily visits to Croatian ports such as Dubrovnik, Split and Zadar. These ports mostly do not have enough capacities to host so many cruisers in terms of inconvenient infrastructure, insufficient system of monitoring and insufficient material and human capacities to cope with possible pollutions. Not less important to mention is that too many cruise tourists visiting destinations like Dubrovnik may cause discontent of the tourists who reside in the city hotels. According to the results of a research on cruising tourism in Croatia (Horak et. al., 2007), there were almost 600,000 cruise passengers who visited Dubrovnik in 2006 (82% of the total number of cruise passengers in Croatia). In the peak days more than 19,000 cruise tourists happen to visit the old city at the same moment, which together with the numerous excursionists, residential tourists and local population poses tremendous pressure on the city's carrying capacities. The study reveals that almost every fourth tourist (23% of the interviewed) residing in the city hotels thinks that such a huge number of cruise tourists affect negatively the attractiveness of the city.

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 133

However, despite these efforts, the survey of the Croatian hotel sector run in 2009 (Petrić & Pranić) showed that only a third (33.3%) of the hotels in the sample<sup>15</sup> had a written environmental policy, despite environment being Croatia's first and foremost tourism 'attraction' (Marušić et al., 2008, 2010). Moreover, given the implied underlying role of environmental protection in Croatia's official tourism slogan (i.e., "Croatia – The Mediterranean as It Once was"), it is interesting that the reported figure in this research is so low. While interesting, this finding does not come as a surprise as the Croatian lodging sector is still hampered with numerous viability issues – i.e. incomplete and/or poorly executed hotel privatization process, unresolved land ownership disputes, and pronouncedly high seasonality. Under these circumstances, it appears reasonable that the adoption and implementation of environmental standards by Croatian hoteliers is still at an

As for the eco certificates, except for the EU Blue Flag for beaches and marinas, Croatia has not been included in any international eco certification programme. According to the report by the nongovernmental organisation "Lijepa naša" for 2011 there were 116 beaches and 19 marinas with the Blue Flag certificate in Croatia.16 Despite the seemingly huge number of certified beaches, one has to remember that the Croatian state has a 1,778 km long coast and

Apart from the Blue Flag eco certificate, some other instruments and tools (institutional, economic and/or management) aimed at implementation of the environmentally friendly behaviour have also been used but mostly sporadically. Thus, except for the zoning which is an institutional instrument commonly used in the spatial plans (Inskeep, 1991), instruments such as eco taxes, environmental management charge (EMC)17, visitor payback18, target marketing aimed at attracting visitors of a certain type and in a certain period of year19, demarketing20, price policy aimed at tourist demand attraction or reduction, group size limitations, etc. are sporadically used or not used at all in most of the Croatian tourist

15 The Croatia's Ministry of Tourism (MINT) list of 671 officially licensed and categorized facilities under the group HOTELS (hotels [562], apart hotels [11], tourist resorts [46] and tourist apartments [52]) in Croatia for January 2009 served as the sampling frame for this study. The actual study sample consisted of 310 facilities (46% of the sampling frame) belonging to the group HOTELS (210 hotels, 11 apart hotels, 46 tourist resorts and 52 tourist apartments). The 210 hotels in the sample were randomly

19 A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element of a marketing strategy. Once these distinct customers have been defined, a marketing mix strategy of product, distribution, promotion and price can be built by the business to satisfy the target market. 20 Demarketing is a little known concept which aims at dissuading customers from consuming or buying some things either because it is harmful or simply because the demand is more than the supply,

16 16.06.2011, Available from: http://www.lijepa-nasa.hr/images/datoteke/popis\_pz\_2011.pdf 17 The environmental management charge (EMC) is an amount charged to visitors who visit protected areas or some exquisite locations and perform certain tourist activities. 18 Visitor Payback is the process of asking visitors to a destination to voluntarily support management

4,057 km of the total coastal line and evidently thousands of beaches.

destinations for the purpose of resolving problems of resource overuse.

and conservation of the area, by donating a 'nominal' sum towards its upkeep.

especially in case of tourist demand. This could be on a temporary or permanent basis.

selected among 562 hotels using Research Randomizer.

early stage.

Environmental problems are caused not only by huge number of tourists but also by tourist enterprises and organisations which intentionally or unintentionally (due to negligence) damage the environment. Unfortunately, although the ecological awareness among them has an ever rising trend, implementation of the concepts of environmental management and eco certification in the tourism business sector is still a rare case. Why is that so? First, it is to be noted that no Croatian law, regardless of their number and variety, deals in particular with the issue of resource usage in the tourist sector (Petrić & Pranić, 2009). The issue is defined in a number of environmental and industry laws. Environmental laws deal with the usage of environmental factors such as water, soil, sea, etc. Industry laws, unlike the environmental laws directed to the general issues, regulate the treatment of concrete natural resources in particular industries (such as agriculture, fishing, etc.). The operation of the tourist industry (and thus also of the hotel sector) is based on various natural and cultural resources and therefore it has to comply with the basic principles of environment protection declared by these laws, and particularly by the Law on Environment Protection (Narodne Novine No. 82/1994; 110/2007). According to this law (art. 150-158) all legal entities (including hotels), are liable for the damage incurred by pollution if caused by their operation or negligence. In a hotel this can be for instance emission of oil or excrements into water, emission of gas into atmosphere, dispersion of asbestos dust, etc. In such cases the hotel not only settles its own damage but also covers all the costs caused by measures taken to eliminate pollution (internalization of external costs). However it is not the hotel sector causing such pollutions so often but rather illegally built private accommodation that is leaning on poor communal infrastructure. Poor control of their behaviour is another reason why they easily transfer the environmental costs they produce to the society.

As for the measures potentially stimulating implementation of ecological initiatives and general environmental policy in companies (including hotels), the Law provides the possibility of regulating benefits, tax incentives, and exemption of tariffs for those entities that use less detrimental production procedures (for example use of alternative energy resources, use of environment friendly equipment and appliances) and those that organize disposal of used appliances or their parts, used products and their packaging or use other ways to reduce negative effects on the environment (Narodne Novine, No. 82/1994; 110/2007).

However, due to the already elaborated circumstances Croatian hotel companies are coping with, most of them are unwilling to implement ecological initiatives and general environmental policy in companies, especially through formal systems of environmental management, justifying their reasoning by high initial costs. The exceptions are the hotels operating within international chains whose ecologically oriented operation is the basic element of their competitive strategy. A few hotels in Croatia implement informal measures of environmental management directed primarily to rationalization of energy and water consumption. To promote necessity of acting in an environmentally friendly way, the Croatian Association of Small and Family Hotels provides training for its members in implementation of the environmental management measures and strives to establish environmental quality mark to be awarded to its members. It also collaborates with Croatian Centre for Clean Production that already in 2006 started a pilot project on possibilities of savings in Croatian hotels by implementation of environmental measures.

Sustainable Development – 132 Policy and Urban Development – Tourism, Life Science, Management and Environment

Environmental problems are caused not only by huge number of tourists but also by tourist enterprises and organisations which intentionally or unintentionally (due to negligence) damage the environment. Unfortunately, although the ecological awareness among them has an ever rising trend, implementation of the concepts of environmental management and eco certification in the tourism business sector is still a rare case. Why is that so? First, it is to be noted that no Croatian law, regardless of their number and variety, deals in particular with the issue of resource usage in the tourist sector (Petrić & Pranić, 2009). The issue is defined in a number of environmental and industry laws. Environmental laws deal with the usage of environmental factors such as water, soil, sea, etc. Industry laws, unlike the environmental laws directed to the general issues, regulate the treatment of concrete natural resources in particular industries (such as agriculture, fishing, etc.). The operation of the tourist industry (and thus also of the hotel sector) is based on various natural and cultural resources and therefore it has to comply with the basic principles of environment protection declared by these laws, and particularly by the Law on Environment Protection (Narodne Novine No. 82/1994; 110/2007). According to this law (art. 150-158) all legal entities (including hotels), are liable for the damage incurred by pollution if caused by their operation or negligence. In a hotel this can be for instance emission of oil or excrements into water, emission of gas into atmosphere, dispersion of asbestos dust, etc. In such cases the hotel not only settles its own damage but also covers all the costs caused by measures taken to eliminate pollution (internalization of external costs). However it is not the hotel sector causing such pollutions so often but rather illegally built private accommodation that is leaning on poor communal infrastructure. Poor control of their behaviour is another reason

why they easily transfer the environmental costs they produce to the society.

savings in Croatian hotels by implementation of environmental measures.

110/2007).

As for the measures potentially stimulating implementation of ecological initiatives and general environmental policy in companies (including hotels), the Law provides the possibility of regulating benefits, tax incentives, and exemption of tariffs for those entities that use less detrimental production procedures (for example use of alternative energy resources, use of environment friendly equipment and appliances) and those that organize disposal of used appliances or their parts, used products and their packaging or use other ways to reduce negative effects on the environment (Narodne Novine, No. 82/1994;

However, due to the already elaborated circumstances Croatian hotel companies are coping with, most of them are unwilling to implement ecological initiatives and general environmental policy in companies, especially through formal systems of environmental management, justifying their reasoning by high initial costs. The exceptions are the hotels operating within international chains whose ecologically oriented operation is the basic element of their competitive strategy. A few hotels in Croatia implement informal measures of environmental management directed primarily to rationalization of energy and water consumption. To promote necessity of acting in an environmentally friendly way, the Croatian Association of Small and Family Hotels provides training for its members in implementation of the environmental management measures and strives to establish environmental quality mark to be awarded to its members. It also collaborates with Croatian Centre for Clean Production that already in 2006 started a pilot project on possibilities of However, despite these efforts, the survey of the Croatian hotel sector run in 2009 (Petrić & Pranić) showed that only a third (33.3%) of the hotels in the sample<sup>15</sup> had a written environmental policy, despite environment being Croatia's first and foremost tourism 'attraction' (Marušić et al., 2008, 2010). Moreover, given the implied underlying role of environmental protection in Croatia's official tourism slogan (i.e., "Croatia – The Mediterranean as It Once was"), it is interesting that the reported figure in this research is so low. While interesting, this finding does not come as a surprise as the Croatian lodging sector is still hampered with numerous viability issues – i.e. incomplete and/or poorly executed hotel privatization process, unresolved land ownership disputes, and pronouncedly high seasonality. Under these circumstances, it appears reasonable that the adoption and implementation of environmental standards by Croatian hoteliers is still at an early stage.

As for the eco certificates, except for the EU Blue Flag for beaches and marinas, Croatia has not been included in any international eco certification programme. According to the report by the nongovernmental organisation "Lijepa naša" for 2011 there were 116 beaches and 19 marinas with the Blue Flag certificate in Croatia.16 Despite the seemingly huge number of certified beaches, one has to remember that the Croatian state has a 1,778 km long coast and 4,057 km of the total coastal line and evidently thousands of beaches.

Apart from the Blue Flag eco certificate, some other instruments and tools (institutional, economic and/or management) aimed at implementation of the environmentally friendly behaviour have also been used but mostly sporadically. Thus, except for the zoning which is an institutional instrument commonly used in the spatial plans (Inskeep, 1991), instruments such as eco taxes, environmental management charge (EMC)17, visitor payback18, target marketing aimed at attracting visitors of a certain type and in a certain period of year19, demarketing20, price policy aimed at tourist demand attraction or reduction, group size limitations, etc. are sporadically used or not used at all in most of the Croatian tourist destinations for the purpose of resolving problems of resource overuse.

<sup>15</sup> The Croatia's Ministry of Tourism (MINT) list of 671 officially licensed and categorized facilities under the group HOTELS (hotels [562], apart hotels [11], tourist resorts [46] and tourist apartments [52]) in Croatia for January 2009 served as the sampling frame for this study. The actual study sample consisted of 310 facilities (46% of the sampling frame) belonging to the group HOTELS (210 hotels, 11 apart hotels, 46 tourist resorts and 52 tourist apartments). The 210 hotels in the sample were randomly selected among 562 hotels using Research Randomizer.

<sup>16 16.06.2011,</sup> Available from: http://www.lijepa-nasa.hr/images/datoteke/popis\_pz\_2011.pdf

<sup>17</sup> The environmental management charge (EMC) is an amount charged to visitors who visit protected

areas or some exquisite locations and perform certain tourist activities. 18 Visitor Payback is the process of asking visitors to a destination to voluntarily support management and conservation of the area, by donating a 'nominal' sum towards its upkeep.

<sup>19</sup> A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element of a marketing strategy. Once these distinct customers have been defined, a marketing mix strategy of product, distribution,

promotion and price can be built by the business to satisfy the target market. 20 Demarketing is a little known concept which aims at dissuading customers from consuming or buying some things either because it is harmful or simply because the demand is more than the supply, especially in case of tourist demand. This could be on a temporary or permanent basis.

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 135

*Micro level* refers to the networks of individuals and households that create positive externalities for the local community. *Mezzo level* is created by associations and networks. *Macro level* refers to social and political environment that shapes social structure and enables

Croatia generally speaking shows a low level of social capital development on all the three levels, which obstructs communities and their members to be fully empowered to master their future in the sustainable manner. According to Hall D. (2000; 449), such a situation in all the post communist countries such as Croatia, could be explained by considering the




Apart from the legacies of the communist regime, Stubbs (2007) numbered some other interrelated *macro level* factors constraining 'progressive' community development and





ageing population, and tensions between settler, returnee, and domicile groups; - A strong impact of rapid urbanization, de-industrialisation and the shifting fortunes of tourism which consequently has never succeeded to get embedded within the local

development of the norms of behaviour (laws and regulations).

misplaced assumptions of shared aspirations and values.

spoken of rhetorically but rarely pursued in practice;

http://www.transparency.org/policy\_research/surveys\_indices/cpi/2010/results

organisation of communist days; and

empowerment in contemporary Croatia:

following issues:

making;

nationalism);

population and culture;

21 21.06.2011, Available from:

*To conclude*: Croatian tourism is evidently not ecologically sustainable as often being declared. Though institutionally recognized, environmentally friendly behaviour of tourism stakeholders has not been widely adopted yet, which can be proved by the poor implementation of the carrying capacity assessment technique, environmental management concept, eco certification programmes, etc. Monitoring of the spatial plans implementation is rarely done consequently leading to voluntarism in the use of land and resources.

#### **4.3 Croatian tourism social (un)sustainability – the cause or the consequence?**

Finally, the third issue this chapter deals with is the one referring to the *social* aspect of Croatian tourism *sustainability*. Though some of the issues featuring social sustainability have already been touched to a certain extent, there is a need to get deeper into this area hoping that this would help us understanding reasons of failure in achieving sustainability in the other two areas. To achieve social sustainability is to empower community and its members to get involved in the process of decision making and planning tourism development. The notion of empowerment has entered literature as a generic term denoting a capacity by individuals or a group to determine their own affairs. Recently it has been used across a wide range of disciplines. The issue of empowerment in the non-management literature has largely been centred on women, minorities, education, and politics and viewed from the perspective of powerlessness and oppression. Simmons and Parsons have a summary definition of empowerment as "the process of enabling persons to master their environment and achieve self-determination through individual, interpersonal change, or change of social structures affecting the life and behaviour of an individual (as cited in Sofield, 2003; 81).

When located within the discourse of community development, it is connected to concepts of self-help, equity, cooperation, participation and networking. These concepts, particularly participation in the process of decision making, is a vital part of empowerment since it makes people more confident, strengthens their self-esteem, widens their knowledge and enables them to develop new skills. Murphy (1985:153) argues that tourism "relies on the goodwill and cooperation of local people because they are part of its product. Where development and planning does not fit in with local aspirations and capacity, resistance and hostility can...destroy the industry's potential altogether".

There are four "types" of empowerment, i. e. economic, psychological, social and political (according to Scheyvens 1999, as cited in Timothy, 2003; 152). Economic empowerment is important because it allows residents and entire communities to benefit financially from tourism. Psychological empowerment contributes to developing self-esteem and pride in local cultures and traditional knowledge. Social empowerment helps maintain a community's social equilibrium and has the power to lead to cooperation and networking. Political empowerment includes representational democracy wherein residents can voice opinions and raise concerns about development initiatives (Timothy, 2003).

To what extent should the community and its members be empowered, or how much empowerment would they experience depends on the level of the social capital development in the country and the community itself (Petrić, 2007). Social capital as a set of formal rules/institutions and informal norms of behaviour creates environment in which the process of empowerment is performed. Grootaert and Bastealer (as cited in Vehovec, 2002; 36) speak on three dimensions/levels of social capital, referring to micro, mezzo and macro levels.

Sustainable Development – 134 Policy and Urban Development – Tourism, Life Science, Management and Environment

*To conclude*: Croatian tourism is evidently not ecologically sustainable as often being declared. Though institutionally recognized, environmentally friendly behaviour of tourism stakeholders has not been widely adopted yet, which can be proved by the poor implementation of the carrying capacity assessment technique, environmental management concept, eco certification programmes, etc. Monitoring of the spatial plans implementation

is rarely done consequently leading to voluntarism in the use of land and resources.

**4.3 Croatian tourism social (un)sustainability – the cause or the consequence?** 

Sofield, 2003; 81).

Finally, the third issue this chapter deals with is the one referring to the *social* aspect of Croatian tourism *sustainability*. Though some of the issues featuring social sustainability have already been touched to a certain extent, there is a need to get deeper into this area hoping that this would help us understanding reasons of failure in achieving sustainability in the other two areas. To achieve social sustainability is to empower community and its members to get involved in the process of decision making and planning tourism development. The notion of empowerment has entered literature as a generic term denoting a capacity by individuals or a group to determine their own affairs. Recently it has been used across a wide range of disciplines. The issue of empowerment in the non-management literature has largely been centred on women, minorities, education, and politics and viewed from the perspective of powerlessness and oppression. Simmons and Parsons have a summary definition of empowerment as "the process of enabling persons to master their environment and achieve self-determination through individual, interpersonal change, or change of social structures affecting the life and behaviour of an individual (as cited in

When located within the discourse of community development, it is connected to concepts of self-help, equity, cooperation, participation and networking. These concepts, particularly participation in the process of decision making, is a vital part of empowerment since it makes people more confident, strengthens their self-esteem, widens their knowledge and enables them to develop new skills. Murphy (1985:153) argues that tourism "relies on the goodwill and cooperation of local people because they are part of its product. Where development and planning does not fit in with local aspirations and capacity, resistance and

There are four "types" of empowerment, i. e. economic, psychological, social and political (according to Scheyvens 1999, as cited in Timothy, 2003; 152). Economic empowerment is important because it allows residents and entire communities to benefit financially from tourism. Psychological empowerment contributes to developing self-esteem and pride in local cultures and traditional knowledge. Social empowerment helps maintain a community's social equilibrium and has the power to lead to cooperation and networking. Political empowerment includes representational democracy wherein residents can voice

To what extent should the community and its members be empowered, or how much empowerment would they experience depends on the level of the social capital development in the country and the community itself (Petrić, 2007). Social capital as a set of formal rules/institutions and informal norms of behaviour creates environment in which the process of empowerment is performed. Grootaert and Bastealer (as cited in Vehovec, 2002; 36) speak on three dimensions/levels of social capital, referring to micro, mezzo and macro levels.

opinions and raise concerns about development initiatives (Timothy, 2003).

hostility can...destroy the industry's potential altogether".

*Micro level* refers to the networks of individuals and households that create positive externalities for the local community. *Mezzo level* is created by associations and networks. *Macro level* refers to social and political environment that shapes social structure and enables development of the norms of behaviour (laws and regulations).

Croatia generally speaking shows a low level of social capital development on all the three levels, which obstructs communities and their members to be fully empowered to master their future in the sustainable manner. According to Hall D. (2000; 449), such a situation in all the post communist countries such as Croatia, could be explained by considering the following issues:


Apart from the legacies of the communist regime, Stubbs (2007) numbered some other interrelated *macro level* factors constraining 'progressive' community development and empowerment in contemporary Croatia:


<sup>21 21.06.2011,</sup> Available from:

http://www.transparency.org/policy\_research/surveys\_indices/cpi/2010/results

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 137

these registered at the local level, but only between 1,000 and 1,500 active ones (excluding sport clubs and cultural associations). Many of the NGOs in Croatia have seen multi-sectoral working as a panacea for many of the problems of Croatian society. The 'List of the nongovernmental organisations', published by the Ministry of environmental protection, physical planning and construction in 2004 (as cited in Petrić, 2007) speak of 268 NGOs dealing with environmental issues, while the most recent data mention 710 registered environmental NGOs22. Most of these are focused on pure ecological problems while a few, such as ODRAZ23, a Zagreb-based NGO, are focused on sustainable development of communities in Croatia. ODRAZ is, among other things, strongly committed to the revitalization of the Croatian islands through cross-sector cooperation, including local

In Croatia there is no legislative obligation for the cooperation of governmental and nongovernmental organizations or for the participation of NGOs in decision-making. However with the imminent accession to the EU, Croatia is obliged to adopt the European Community acquis and a common practice proposing consultation with the NGO's in the process of development and decision making. In recent years an interesting trend of growth has been noticed of what have been termed 'meta-NGOs', whose primary purpose is to provide information and assistance to other NGOs. Hence these larger, more successful, but increasingly bureaucratised or meta-NGOs growingly suppress emerging, under-funded, localised initiatives which ought to be true sources of 'social energy' in Croatia, alongside

Generally speaking, Croatia is gradually making progress when it comes to the civil society development. In 2006 National strategy and action plan for civil society development were adopted thus creating preconditions for the more efficient development of civil institutions

When it comes to the activities oriented towards empowerment of the key stakeholders at the *mezzo level* through strengthening formal and informal *networks*, there are few examples of long-term, consistent, multi-sectoral partnerships for community development, between local governments, associations and NGOs, and particularly businesses (Franičević & Bartlet, 2001; Petrić & Mrnjavac, 2003; Pivčević & Petrić, 2011). They are usually formed at the national, not regional or a local level. It is mostly vertical type of networks that include different business entities whose aim is better use of resources or better placement of their products or services (good examples are the National Association of Small and Family Hotels and Split-Dalmatian County Association of Hotels, both of which gather hotels as well as tour operators, national air company, suppliers and other subjects creating tourism supply chain. Creation of different types of partnership and/or networks of the firms (horizontal and vertical ones) at a regional/community level, that Croatia still lacks, could help in developing and imposing service standards that will raise the competitiveness of the network and destination tourism brand. Such tourism partnerships and networks can substantially improve tourism business performance by transforming their sporadically scattered products into a one-stop-shop selling a wide variety of functionally interrelated

22 24.06.2011, Available from: http://www.mzopu.hr/doc/Popis\_nevladinih\_udruga.pdf

community organizations, entrepreneurs, and tourist associations.

informal community leaders and local activists (Stubbs, 2007).

at *micro level*.

tourism products (Mansfeld, 2002).

23 24.06.2011, Available from: http://www.odraz.hr/hr/home

In such a developmental context sustainability principles in tourism development (and development in general) at community level have never been really embedded. Some recent multidisciplinary researches on sustainable development on Croatian coast with the special stress on tourism development issues (Fredotović et al., 2003; Petrić, 2003; Petrić et al. 2004; Petrić, 2005; Vukonić, 2005; Petrić, 2007; Petrić, 2008; Petrić & Pranić, 2010), have shown the following:


In an attempt to counterbalance governmental (macro level) shortcomings, there has been an enormous growth of the number of Non Governmental Organisations (NGOs) in the country. In 2002 Croatia had over 20,000 registered associations of citizens, with 18,000 of Sustainable Development – 136 Policy and Urban Development – Tourism, Life Science, Management and Environment

In such a developmental context sustainability principles in tourism development (and development in general) at community level have never been really embedded. Some recent multidisciplinary researches on sustainable development on Croatian coast with the special stress on tourism development issues (Fredotović et al., 2003; Petrić, 2003; Petrić et al. 2004; Petrić, 2005; Vukonić, 2005; Petrić, 2007; Petrić, 2008; Petrić & Pranić, 2010), have shown the






In an attempt to counterbalance governmental (macro level) shortcomings, there has been an enormous growth of the number of Non Governmental Organisations (NGOs) in the country. In 2002 Croatia had over 20,000 registered associations of citizens, with 18,000 of

no real attempts are made to achieve it (Fredotović et al., 2003).

and thereby meet resistance".

(Tomljenović et. al, 2003);

2007).

more of the penalties imposed from above;

following:

these registered at the local level, but only between 1,000 and 1,500 active ones (excluding sport clubs and cultural associations). Many of the NGOs in Croatia have seen multi-sectoral working as a panacea for many of the problems of Croatian society. The 'List of the nongovernmental organisations', published by the Ministry of environmental protection, physical planning and construction in 2004 (as cited in Petrić, 2007) speak of 268 NGOs dealing with environmental issues, while the most recent data mention 710 registered environmental NGOs22. Most of these are focused on pure ecological problems while a few, such as ODRAZ23, a Zagreb-based NGO, are focused on sustainable development of communities in Croatia. ODRAZ is, among other things, strongly committed to the revitalization of the Croatian islands through cross-sector cooperation, including local community organizations, entrepreneurs, and tourist associations.

In Croatia there is no legislative obligation for the cooperation of governmental and nongovernmental organizations or for the participation of NGOs in decision-making. However with the imminent accession to the EU, Croatia is obliged to adopt the European Community acquis and a common practice proposing consultation with the NGO's in the process of development and decision making. In recent years an interesting trend of growth has been noticed of what have been termed 'meta-NGOs', whose primary purpose is to provide information and assistance to other NGOs. Hence these larger, more successful, but increasingly bureaucratised or meta-NGOs growingly suppress emerging, under-funded, localised initiatives which ought to be true sources of 'social energy' in Croatia, alongside informal community leaders and local activists (Stubbs, 2007).

Generally speaking, Croatia is gradually making progress when it comes to the civil society development. In 2006 National strategy and action plan for civil society development were adopted thus creating preconditions for the more efficient development of civil institutions at *micro level*.

When it comes to the activities oriented towards empowerment of the key stakeholders at the *mezzo level* through strengthening formal and informal *networks*, there are few examples of long-term, consistent, multi-sectoral partnerships for community development, between local governments, associations and NGOs, and particularly businesses (Franičević & Bartlet, 2001; Petrić & Mrnjavac, 2003; Pivčević & Petrić, 2011). They are usually formed at the national, not regional or a local level. It is mostly vertical type of networks that include different business entities whose aim is better use of resources or better placement of their products or services (good examples are the National Association of Small and Family Hotels and Split-Dalmatian County Association of Hotels, both of which gather hotels as well as tour operators, national air company, suppliers and other subjects creating tourism supply chain. Creation of different types of partnership and/or networks of the firms (horizontal and vertical ones) at a regional/community level, that Croatia still lacks, could help in developing and imposing service standards that will raise the competitiveness of the network and destination tourism brand. Such tourism partnerships and networks can substantially improve tourism business performance by transforming their sporadically scattered products into a one-stop-shop selling a wide variety of functionally interrelated tourism products (Mansfeld, 2002).

<sup>22 24.06.2011,</sup> Available from: http://www.mzopu.hr/doc/Popis\_nevladinih\_udruga.pdf

<sup>23 24.06.2011,</sup> Available from: http://www.odraz.hr/hr/home

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 139



As far as Croatian experience regarding private-public partnership in tourism is concerned there are still very few such examples. One of them, Suncani Hvar – ORCO hotel company as the first partnership project between the national government, local municipality authorities and an international hotel company has failed, and the company is struggling to survive overburdened by many unsolved problems. The project of health tourism resort in the Krapina County is to be realized through public-private partnership, as well as Posedarje Rivijera, a greenfield project, aimed at development of a high quality tourist resort. In 2009, Ministry of Tourism entered into partnership with 12 hotels and four chambers of commerce with the aim to subsidize scholarship for 320 pupils and 20 students. After finishing school they will work for the hotels that have entered the partnership. Furthermore, the Split-Dalmatian County has entered into the partnership with the owners of the real estates in the abandoned or devastated villages in the Dalmatian hinterland with the purpose of creating so called "eco-ethno villages". The County authorities are obliged to make infrastructural adjustments, development studies, management plans, etc. On the other side the real estate owners have to organize themselves into a non-governmental organisation which will represent their interests in the process of negotiating the terms

As could be seen, public-private partnership projects in Croatian tourism have gradually started to get introduced just recently and not much evidence on their presence has been

*To conclude:* Though positive changes have been recorded related to empowerment of individuals and communities to manage their own future, there is still much to do in terms of building social capital at all the three levels, i.e. macro, mezzo and micro level. When improvements in this area happen, changes in other areas of sustainability are expected to

The nature of tourism is obviously ambivalent. On the one hand, it might be a valuable source of income and employment, potentially acting as a catalyst for wider socio-economic development or regeneration. On the other hand, the growth and expansion of tourism generates different environmental costs related to different types of degradation, misallocation or destruction of natural resources. These are usually accompanied by a variety of economic, social, cultural and political consequences. Hence it is obvious that in the absence of appropriate management techniques and tools, tourism has the ability to destroy the very resources upon which it depends. Without strategic approach to its development and the use of integral planning to this matter, fulfilment of sustainability principles is threatened. By researching the case of Croatian tourism model of development we have shown that despite being recognized institutionally, sustainability has not been achieved in any of the areas under study. By this the main hypothesis of the chapter has

new management techniques and new technologies);

under which they will put their real estates into function.

recorded so far.

**5. Conclusion** 

get realized more easily.

Apart from networks another type of partnerships that could be nourished at the local level is through *clusters*. "A cluster is a geographically proximate group of companies and associated institutions in a particular field, linked by commonalities and complementarities" (Porter 1998; 78). Unlike networks, clusters have an open membership, they are based on local values such as trust, empathy, cooperation and have a common vision. Operators within local (tourism) clusters can increase their collective markets and capacities by working together. Working through clusters can benefit all parties involved in terms of increased opportunities and revenues. However, many local tourist communities/destinations lack a system dimension and do not have shared vision or common goals. "And destinations that share little more than joint marketing can not be regarded as clusters" (Nordin, 2003; 18). This statement is proved to be true in the case of Croatian local communities oriented to tourism. Except for Istria, a south-western part of Croatia and Zagorje-Krapina county in the north-western part of the country, where some rudimentary efforts in tourism clustering arise, no other tourism region or a community shows any effort whatsoever to this matter.

The concept of the *socially responsible behaviour* of the firms, although being recognized elsewhere, in the tourism industry is still quite unfamiliar. Thus, a report on Corporate Social Responsibility for 2004 points out a number of positive examples of growing corporate social responsibility and business - NGO collaboration (Bagić et al., 2004, as cited in Petrić, 2007), but no examples from tourism industry were evidenced in either this report or the one made in 2007 (Škrabalo et al., 2007). However, an analysis of the particular web sites shows that the concept has been gradually adopted and implemented in the business strategy of a few hotels (in particular those that do business within international hotel chains) while tourist agencies do not show the change of their orientation towards socially more responsible behaviour (except for the Dubrovnik based Gulliver travel agency that is a part of the world's leading travel company, TUI Travel Plc.)

Finally, within the discourse of social sustainability, discussion on new trends of business performance in the partnership between public and private sector seems to be inevitable.

*Public–private partnership* (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. Public–private partnership involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. A private sector consortium forms a special company called to develop, build, maintain and operate the asset for the contracted period. The increase of the public–private partnership projects has been the result of the processes related to the change of the government's role in the process of development (new forms of governance). As far as tourism industry is concerned, this concept has already been widely used across the world due to the fact that tourism business uses a great deal of public goods and government's role is to protect them. Following are the areas of tourism business where public–private partnership most often occurs:


As far as Croatian experience regarding private-public partnership in tourism is concerned there are still very few such examples. One of them, Suncani Hvar – ORCO hotel company as the first partnership project between the national government, local municipality authorities and an international hotel company has failed, and the company is struggling to survive overburdened by many unsolved problems. The project of health tourism resort in the Krapina County is to be realized through public-private partnership, as well as Posedarje Rivijera, a greenfield project, aimed at development of a high quality tourist resort. In 2009, Ministry of Tourism entered into partnership with 12 hotels and four chambers of commerce with the aim to subsidize scholarship for 320 pupils and 20 students. After finishing school they will work for the hotels that have entered the partnership. Furthermore, the Split-Dalmatian County has entered into the partnership with the owners of the real estates in the abandoned or devastated villages in the Dalmatian hinterland with the purpose of creating so called "eco-ethno villages". The County authorities are obliged to make infrastructural adjustments, development studies, management plans, etc. On the other side the real estate owners have to organize themselves into a non-governmental organisation which will represent their interests in the process of negotiating the terms under which they will put their real estates into function.

As could be seen, public-private partnership projects in Croatian tourism have gradually started to get introduced just recently and not much evidence on their presence has been recorded so far.

*To conclude:* Though positive changes have been recorded related to empowerment of individuals and communities to manage their own future, there is still much to do in terms of building social capital at all the three levels, i.e. macro, mezzo and micro level. When improvements in this area happen, changes in other areas of sustainability are expected to get realized more easily.

#### **5. Conclusion**

Sustainable Development – 138 Policy and Urban Development – Tourism, Life Science, Management and Environment

Apart from networks another type of partnerships that could be nourished at the local level is through *clusters*. "A cluster is a geographically proximate group of companies and associated institutions in a particular field, linked by commonalities and complementarities" (Porter 1998; 78). Unlike networks, clusters have an open membership, they are based on local values such as trust, empathy, cooperation and have a common vision. Operators within local (tourism) clusters can increase their collective markets and capacities by working together. Working through clusters can benefit all parties involved in terms of increased opportunities and revenues. However, many local tourist communities/destinations lack a system dimension and do not have shared vision or common goals. "And destinations that share little more than joint marketing can not be regarded as clusters" (Nordin, 2003; 18). This statement is proved to be true in the case of Croatian local communities oriented to tourism. Except for Istria, a south-western part of Croatia and Zagorje-Krapina county in the north-western part of the country, where some rudimentary efforts in tourism clustering arise, no other tourism region or a community

The concept of the *socially responsible behaviour* of the firms, although being recognized elsewhere, in the tourism industry is still quite unfamiliar. Thus, a report on Corporate Social Responsibility for 2004 points out a number of positive examples of growing corporate social responsibility and business - NGO collaboration (Bagić et al., 2004, as cited in Petrić, 2007), but no examples from tourism industry were evidenced in either this report or the one made in 2007 (Škrabalo et al., 2007). However, an analysis of the particular web sites shows that the concept has been gradually adopted and implemented in the business strategy of a few hotels (in particular those that do business within international hotel chains) while tourist agencies do not show the change of their orientation towards socially more responsible behaviour (except for the Dubrovnik based Gulliver travel agency that is a

Finally, within the discourse of social sustainability, discussion on new trends of business performance in the partnership between public and private sector seems to be inevitable.

*Public–private partnership* (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. Public–private partnership involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. A private sector consortium forms a special company called to develop, build, maintain and operate the asset for the contracted period. The increase of the public–private partnership projects has been the result of the processes related to the change of the government's role in the process of development (new forms of governance). As far as tourism industry is concerned, this concept has already been widely used across the world due to the fact that tourism business uses a great deal of public goods and government's role is to protect them. Following are the areas of tourism business where public–private partnership most often



shows any effort whatsoever to this matter.

occurs:

accommodation facilities, etc.);

information/distributive systems);

part of the world's leading travel company, TUI Travel Plc.)

The nature of tourism is obviously ambivalent. On the one hand, it might be a valuable source of income and employment, potentially acting as a catalyst for wider socio-economic development or regeneration. On the other hand, the growth and expansion of tourism generates different environmental costs related to different types of degradation, misallocation or destruction of natural resources. These are usually accompanied by a variety of economic, social, cultural and political consequences. Hence it is obvious that in the absence of appropriate management techniques and tools, tourism has the ability to destroy the very resources upon which it depends. Without strategic approach to its development and the use of integral planning to this matter, fulfilment of sustainability principles is threatened. By researching the case of Croatian tourism model of development we have shown that despite being recognized institutionally, sustainability has not been achieved in any of the areas under study. By this the main hypothesis of the chapter has

Croatian Tourism Development Model – Anatomy of an Un/Sustainability 141




(Timothy, 2002), or help spreading, as Porter said "social glue" (Porter, 1998). - Local authorities should support promotion and implementation of a planning solution




This list is not exhaustive and indicates a range of principles that underpin strategic and integrated planning for tourism areas. As the matter of sustainability is a very broad area of

*To conclude:* it is important to stress, yet again, that there are no institutional or practice models from elsewhere which can be transplanted in Croatia as a kind of panacea promoting sustainable tourism development. Rather, as Stubbs has pointed (as cited in Petrić, 2007), what is needed is the creation of networks, arenas and spaces, locally, nationally, and internationally, for exchanges of experiences and the elaboration of good practice, not in terms of set formulae, but in terms of attempting to grapple with the reason

research, any of the elaborated principles could be an object of some future research.

why certain initiatives appear to have had positive effects and others less so.

which ensures that the unique identity of the destination is maintained;

education, partnership, networks and different other types of cooperation;

Capacity Assessment and other tools and instruments aimed to this matter;

citizens fostered;

population;

should be promoted;

overall tourism more sustainable.

of the recognizable "Croatian brand" would be enhanced and well-being of Croatian

been proved. Being qualitative by its nature this research is partially leaning on the author's subjective opinion. However, the author has tried to the best of her abilities to consult as many relevant sources of literature and information as possible. As compared to other similar case studies most of which are focused on a particular area or an aspect of sustainability, this one has tried to cover all the three of them thus getting a holistic dimension. Namely, the three aspects/areas of sustainability (i. e., economic, ecological and social) are all interlaced to such an extent that it is hard to say where one ends and the other one begins. However the social area sustainability seems to be a starting point for better understanding of the reasons for possible failures in achieving sustainability in two other areas (i.e. economic and environmental ones).

Though this research as any other one could have been done in a different manner, and including more relevant issues, we believe that even as such it has 'unmasked' the particular tourism development model that is very often named sustainable or at least 'nature friendly'. It would certainly be of more help if some additional, more concrete indicators could have been presented. However, since they are usually done for the level of a community or a region (not a country) it was not possible to do so. There have been mostly general trends that were analyzed.

Finally, in order to give this research a bit of pragmatism, few practical proposals are to be given, aiming at putting sustainability principles in life. First of all, we believe that the popular dilemma of whether mass tourism in Croatia is needed or not is quite out of place. It is clear that tourism will not lose its mass character, indeed quite the opposite. Therefore the real dilemma lies not in whether we need mass tourism or not, because it will remain a mass phenomenon according to all the indicators, but rather what kind of mass tourism do we actually need and want? If Croatia continues to focus only on boosting the number of tourists, then it is positioned for the continuation of the current development trend of mass and undifferentiated tourism. On the other hand, we could opt for modest growth in the number of tourists but focus on their seasonal and regional redistribution, as well as increased profitability within a sustainable environmental model. To this end Croatia has to create a spectrum of tourist services that can satisfy different kinds of guests, distinguished not just by their purchasing power, but by their different affinities and habits. It will also mean a trickling down of tourism industry benefits to many more businesses and Croatian residents. With this second option in mind, the following strategic measures ought to be adopted:


Sustainable Development – 140 Policy and Urban Development – Tourism, Life Science, Management and Environment

been proved. Being qualitative by its nature this research is partially leaning on the author's subjective opinion. However, the author has tried to the best of her abilities to consult as many relevant sources of literature and information as possible. As compared to other similar case studies most of which are focused on a particular area or an aspect of sustainability, this one has tried to cover all the three of them thus getting a holistic dimension. Namely, the three aspects/areas of sustainability (i. e., economic, ecological and social) are all interlaced to such an extent that it is hard to say where one ends and the other one begins. However the social area sustainability seems to be a starting point for better understanding of the reasons for possible failures in achieving sustainability in two other

Though this research as any other one could have been done in a different manner, and including more relevant issues, we believe that even as such it has 'unmasked' the particular tourism development model that is very often named sustainable or at least 'nature friendly'. It would certainly be of more help if some additional, more concrete indicators could have been presented. However, since they are usually done for the level of a community or a region (not a country) it was not possible to do so. There have been mostly

Finally, in order to give this research a bit of pragmatism, few practical proposals are to be given, aiming at putting sustainability principles in life. First of all, we believe that the popular dilemma of whether mass tourism in Croatia is needed or not is quite out of place. It is clear that tourism will not lose its mass character, indeed quite the opposite. Therefore the real dilemma lies not in whether we need mass tourism or not, because it will remain a mass phenomenon according to all the indicators, but rather what kind of mass tourism do we actually need and want? If Croatia continues to focus only on boosting the number of tourists, then it is positioned for the continuation of the current development trend of mass and undifferentiated tourism. On the other hand, we could opt for modest growth in the number of tourists but focus on their seasonal and regional redistribution, as well as increased profitability within a sustainable environmental model. To this end Croatia has to create a spectrum of tourist services that can satisfy different kinds of guests, distinguished not just by their purchasing power, but by their different affinities and habits. It will also mean a trickling down of tourism industry benefits to many more businesses and Croatian residents. With this second option in mind, the following strategic measures ought to be



which is the idea quite often placed by Croatian authorities;

areas (i.e. economic and environmental ones).

general trends that were analyzed.

adopted:

of the recognizable "Croatian brand" would be enhanced and well-being of Croatian citizens fostered;


This list is not exhaustive and indicates a range of principles that underpin strategic and integrated planning for tourism areas. As the matter of sustainability is a very broad area of research, any of the elaborated principles could be an object of some future research.

*To conclude:* it is important to stress, yet again, that there are no institutional or practice models from elsewhere which can be transplanted in Croatia as a kind of panacea promoting sustainable tourism development. Rather, as Stubbs has pointed (as cited in Petrić, 2007), what is needed is the creation of networks, arenas and spaces, locally, nationally, and internationally, for exchanges of experiences and the elaboration of good practice, not in terms of set formulae, but in terms of attempting to grapple with the reason why certain initiatives appear to have had positive effects and others less so.

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**7** 

*Argentina* 

**Built Heritage and Sustainable Tourism:** 

*Research Laboratory on the Territory and the Environment (LINTA) Scientific Research Commission, province of Buenos Aires (CIC)* 

Beatriz Amarilla and Alfredo Conti

**Conceptual, Economic and Social Variables** 

The origin of tourism in the modern world is closely linked to recognition and appreciation of cultural heritage. In the eighteenth century, the so-called "Grand Tour", from which the word *tourism* comes, consisted of trips of intellectuals and artists from different countries of Europe to the Italian peninsula, and especially to Rome, to take direct contact with relics of classical antiquity. The ancient world, especially the Roman civilisation, had been "rediscovered" by the culture of the Renaissance and Rome had become a destination for those who wanted to know and appreciate classic art, which was taken as a source of inspiration for artistic production of the time (Choay, 1992). This habit meant the implementation of infrastructure and equipment to meet the needs and requirements of the travellers, including transportation systems and accommodation, all of which constitute a background of modern tourist facilities. This initial form of tourism included some components of its current definition: the idea of "tour" meant that travellers returned to their places of residence once their expectations had been met, they were motivated eminently by cultural purposes and funds invested in the destination came from their home countries. In short, it was, in modern terms, a practice of cultural tourism, reserved for a selected social

The major economic, social and cultural changes induced by industrialisation all over the world took to new modalities of tourism; among the rights recognised to workers, free time, vacations and leisure appeared, especially throughout the twentieth century New social groups were gradually incorporated to the practice of tourism. At the same time, new heritage items expanded the realm of tourist attractions, something that has occurred up to the present time. The interest in nature typical of the scientific field between the seventeenth and eighteenth centuries was transferred to the realm of art especially by the nineteenth century Romanticism; the natural environment was considered a source of contemplation and relaxation for body and spirit. The translation of this expansion of the heritage concept impacted in the field of tourism, besides sun and beach and cultural tourism. Nowadays, several modalities appeared, among them ecotourism, adventure, health, business, religious, gastronomic tourism, etc. Over the twentieth century, and particularly the period after the World War II, the progress in transportation and general improvements in revenues facilitated the access of new social groups to the possibility of travelling. Social tourism

**1. Introduction** 

group in terms of education and economic position.


 http://web.efzg.hr/dok/TUR//Strategija%20Razvoja%20Kulturnog%20Turizma. pdf


## **Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables**

Beatriz Amarilla and Alfredo Conti

*Research Laboratory on the Territory and the Environment (LINTA) Scientific Research Commission, province of Buenos Aires (CIC) Argentina* 

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*kulturnog turizma: Od turizma i kulture do kulturnog turizma*. Institut za turizam,

Developing Countries. *Tourism Management*, Volume 21, Issue 6, (December 2000),

The origin of tourism in the modern world is closely linked to recognition and appreciation of cultural heritage. In the eighteenth century, the so-called "Grand Tour", from which the word *tourism* comes, consisted of trips of intellectuals and artists from different countries of Europe to the Italian peninsula, and especially to Rome, to take direct contact with relics of classical antiquity. The ancient world, especially the Roman civilisation, had been "rediscovered" by the culture of the Renaissance and Rome had become a destination for those who wanted to know and appreciate classic art, which was taken as a source of inspiration for artistic production of the time (Choay, 1992). This habit meant the implementation of infrastructure and equipment to meet the needs and requirements of the travellers, including transportation systems and accommodation, all of which constitute a background of modern tourist facilities. This initial form of tourism included some components of its current definition: the idea of "tour" meant that travellers returned to their places of residence once their expectations had been met, they were motivated eminently by cultural purposes and funds invested in the destination came from their home countries. In short, it was, in modern terms, a practice of cultural tourism, reserved for a selected social group in terms of education and economic position.

The major economic, social and cultural changes induced by industrialisation all over the world took to new modalities of tourism; among the rights recognised to workers, free time, vacations and leisure appeared, especially throughout the twentieth century New social groups were gradually incorporated to the practice of tourism. At the same time, new heritage items expanded the realm of tourist attractions, something that has occurred up to the present time. The interest in nature typical of the scientific field between the seventeenth and eighteenth centuries was transferred to the realm of art especially by the nineteenth century Romanticism; the natural environment was considered a source of contemplation and relaxation for body and spirit. The translation of this expansion of the heritage concept impacted in the field of tourism, besides sun and beach and cultural tourism. Nowadays, several modalities appeared, among them ecotourism, adventure, health, business, religious, gastronomic tourism, etc. Over the twentieth century, and particularly the period after the World War II, the progress in transportation and general improvements in revenues facilitated the access of new social groups to the possibility of travelling. Social tourism

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 149

economic study is subtler and less spread. The International Council on Monuments and Sites (ICOMOS) adopted an International Charter on Cultural Tourism in 1976. The extraordinary growth of tourism over the last decades of the twentieth century led ICOMOS to review the Charter; a new text was adopted in 1999, more suitable to the demands of the moment. This text introduces concepts and recommendations related to the proper interpretation and transmission of heritage values and meanings, with the need to consider the tourism use of heritage as a tool for the integral development of host communities

In the context above mentioned, the main purpose of this chapter is to study the relationships among three key concepts: built heritage, cultural tourism and sustainability. The conceptual, economic and social variables of this issue are particularly emphasised,

The main problem that will be discussed in this chapter is the degree of conflict among these three concepts, which arise particularly when we pass from theory to practice. We will follow the next steps in order to analyse this problem and to think about the compatibility among sustainability, tourism and heritage. First of all, it is necessary to study the definitions and nuances of the sustainability concept, relating them to the updated conceptions of tourism and built heritage, according to current specialised bibliography and technical documents. Secondly, it is required to link the knowledge cited above to social and economic variables, factors that, according to our hypothesis, can cause the main distortion when we pass from theory to practice. Finally, it is essential to verify these through some case studies. In relation to that, we think that Latin America World Heritage towns are very

The analysis of successful experiences and of problems detected in many cases of historic centre rehabilitation of Latin America included in the list of UNESCO World Heritage – Cartagena de Indias (Colombia) and Colonia del Sacramento (Uruguay), among others – serve as guide for the development of a series of recommendations intended to achieve the tourist sustainable use of the cultural heritage, with social, economic and cultural

"Over the last thirty years, the concept of monument has grown, evolving from the individual building to the historic district of the cultural landscape. Slowly but surely, we will reach the concept of ecosystem, in which it will become obvious that the preservation of a site, even as a historic city, can occur only if it is possible to preserve its environment and all the activities that have traditionally supported the life in the site. Why preserve the fisherman's town if the river is allowed to go dry or if the industrial plant upstream is

The previous observation has the advantage of building a bridge between concepts which are very widespread, such as sustainable development and heritage conservation, but they often appear empty of content, or they are interpreted in a different way from the view of other disciplines, or they are not integrated according to a systemic view. Sustainability is a concept

through the idea of participatory planning involving all stakeholders.

making special mention to the case of Latin America countries.

appropriate examples in order to test the ideas developed before.

allowed to pollute the river and kill the fish?" (Bonnette, 2001).

advantages for the communities involved.

**2. Sustainability and built heritage 2.1 About the sustainability concept** 

emerged, which assured the possibility of holidays for workers, and mass tourism, which has continued to expand, making tourism a top economic activity at international level and, for many countries and regions, a source of economic growth and overall development of communities.

These concepts have undergone several changes throughout time. The qualitative and quantitative evolution of tourism as economic and social activity coincides with the development of heritage concept, assessed mainly in the late twentieth century. New categories of goods would be added to the initial idea of "historic monuments", which according to the Venice Charter (1964), these are testimonies of *"a particular civilisation, a significant development or a historic event"*; the concept of monument does not longer refer only to great creations but also to *"more modest works of the past which have acquired cultural significance with the passing of time".* In the late twentieth century, new heritage categories were considered; in 1992, UNESCO introduced the concept of cultural landscape, consisting of the joint work between man and nature. In 2005 the notion of heritage routes was included in the *Operational Guidelines for the implementation of the World Heritage Convention*, which implies the consideration of *"tangible elements of which the cultural significance comes from exchanges and a multi-dimensional dialogue across countries or regions, and that illustrate the interaction of movement, along the route, in space and time".* Intangible heritage, consisting of literary and musical works, traditions, social practices, oral history, gastronomy and traditional knowledge gained significant ground in the theoretical debate and in the field of heritage management, which is manifested in the adoption by UNESCO of the Convention for the Safeguarding of Intangible Heritage in 2003. In this framework, historic towns and urban areas became one of the most significant heritage assets, since they express, perhaps better than other heritage categories, all the complexity of human relationship with the environment, merging tangible and intangible heritage components. Nowadays, heritage is recognised as social construction and it is highlighted the active participation of all social actors in its identification and management, when defining heritage, according to Prats (1997), as "*the symbolic referent of the cultural identity of the community*."

These two concepts in evolution, heritage and tourism, are linked with the formal appearance of the concept of sustainable development in 1987. Its more well-known definition indicates that it deals with a development that has to satisfy the current needs without threatening the ability of future generations to solve their own needs. Though the term "sustainable" may be mainly associated to natural resources, a public policy of sustainability cannot exclude today conservation, management and use of the built heritage.

Tourism has had a global booming growth during the last decades, and the close relationship between heritage and tourism brings about opportunities and threats. Among the advantages we can mention the attainment of economic resources, creation of jobs, provision or improvement of facilities and the urban infrastructure, enhancement of public spaces and building restoration as well as the consolidation of the local identity. However, there are important threats related to sustainability. These not only imply alteration or destruction of material components of buildings and sites but also they may distort their values and meanings.

As regards this issue, key economic factors, which need to be identified and analysed, remain. Tourism has always been studied as an economic activity, measuring its incidence, for instance, in the national gross product. However, when we include heritage, the Sustainable Development – 148 Policy and Urban Development – Tourism, Life Science, Management and Environment

emerged, which assured the possibility of holidays for workers, and mass tourism, which has continued to expand, making tourism a top economic activity at international level and, for many countries and regions, a source of economic growth and overall development of

These concepts have undergone several changes throughout time. The qualitative and quantitative evolution of tourism as economic and social activity coincides with the development of heritage concept, assessed mainly in the late twentieth century. New categories of goods would be added to the initial idea of "historic monuments", which according to the Venice Charter (1964), these are testimonies of *"a particular civilisation, a significant development or a historic event"*; the concept of monument does not longer refer only to great creations but also to *"more modest works of the past which have acquired cultural significance with the passing of time".* In the late twentieth century, new heritage categories were considered; in 1992, UNESCO introduced the concept of cultural landscape, consisting of the joint work between man and nature. In 2005 the notion of heritage routes was included in the *Operational Guidelines for the implementation of the World Heritage Convention*, which implies the consideration of *"tangible elements of which the cultural significance comes from exchanges and a multi-dimensional dialogue across countries or regions, and that illustrate the interaction of movement, along the route, in space and time".* Intangible heritage, consisting of literary and musical works, traditions, social practices, oral history, gastronomy and traditional knowledge gained significant ground in the theoretical debate and in the field of heritage management, which is manifested in the adoption by UNESCO of the Convention for the Safeguarding of Intangible Heritage in 2003. In this framework, historic towns and urban areas became one of the most significant heritage assets, since they express, perhaps better than other heritage categories, all the complexity of human relationship with the environment, merging tangible and intangible heritage components. Nowadays, heritage is recognised as social construction and it is highlighted the active participation of all social actors in its identification and management, when defining heritage, according to Prats

(1997), as "*the symbolic referent of the cultural identity of the community*."

These two concepts in evolution, heritage and tourism, are linked with the formal appearance of the concept of sustainable development in 1987. Its more well-known definition indicates that it deals with a development that has to satisfy the current needs without threatening the ability of future generations to solve their own needs. Though the term "sustainable" may be mainly associated to natural resources, a public policy of sustainability cannot exclude today conservation, management and use of the built heritage. Tourism has had a global booming growth during the last decades, and the close relationship between heritage and tourism brings about opportunities and threats. Among the advantages we can mention the attainment of economic resources, creation of jobs, provision or improvement of facilities and the urban infrastructure, enhancement of public spaces and building restoration as well as the consolidation of the local identity. However, there are important threats related to sustainability. These not only imply alteration or destruction of material components of buildings and sites but also they may distort their

As regards this issue, key economic factors, which need to be identified and analysed, remain. Tourism has always been studied as an economic activity, measuring its incidence, for instance, in the national gross product. However, when we include heritage, the

communities.

values and meanings.

economic study is subtler and less spread. The International Council on Monuments and Sites (ICOMOS) adopted an International Charter on Cultural Tourism in 1976. The extraordinary growth of tourism over the last decades of the twentieth century led ICOMOS to review the Charter; a new text was adopted in 1999, more suitable to the demands of the moment. This text introduces concepts and recommendations related to the proper interpretation and transmission of heritage values and meanings, with the need to consider the tourism use of heritage as a tool for the integral development of host communities through the idea of participatory planning involving all stakeholders.

In the context above mentioned, the main purpose of this chapter is to study the relationships among three key concepts: built heritage, cultural tourism and sustainability. The conceptual, economic and social variables of this issue are particularly emphasised, making special mention to the case of Latin America countries.

The main problem that will be discussed in this chapter is the degree of conflict among these three concepts, which arise particularly when we pass from theory to practice. We will follow the next steps in order to analyse this problem and to think about the compatibility among sustainability, tourism and heritage. First of all, it is necessary to study the definitions and nuances of the sustainability concept, relating them to the updated conceptions of tourism and built heritage, according to current specialised bibliography and technical documents. Secondly, it is required to link the knowledge cited above to social and economic variables, factors that, according to our hypothesis, can cause the main distortion when we pass from theory to practice. Finally, it is essential to verify these through some case studies. In relation to that, we think that Latin America World Heritage towns are very appropriate examples in order to test the ideas developed before.

The analysis of successful experiences and of problems detected in many cases of historic centre rehabilitation of Latin America included in the list of UNESCO World Heritage – Cartagena de Indias (Colombia) and Colonia del Sacramento (Uruguay), among others – serve as guide for the development of a series of recommendations intended to achieve the tourist sustainable use of the cultural heritage, with social, economic and cultural advantages for the communities involved.

#### **2. Sustainability and built heritage**

#### **2.1 About the sustainability concept**

"Over the last thirty years, the concept of monument has grown, evolving from the individual building to the historic district of the cultural landscape. Slowly but surely, we will reach the concept of ecosystem, in which it will become obvious that the preservation of a site, even as a historic city, can occur only if it is possible to preserve its environment and all the activities that have traditionally supported the life in the site. Why preserve the fisherman's town if the river is allowed to go dry or if the industrial plant upstream is allowed to pollute the river and kill the fish?" (Bonnette, 2001).

The previous observation has the advantage of building a bridge between concepts which are very widespread, such as sustainable development and heritage conservation, but they often appear empty of content, or they are interpreted in a different way from the view of other disciplines, or they are not integrated according to a systemic view. Sustainability is a concept

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 151

democracy, the reinforcement of local communities, information flow and the human capital, since the formation of human capital through education enables the development of other social values. Within the strong social sustainability, it is possible to focus on the cultural capital and, specifically, on the built heritage. There is some agreement about the fact that art and architecture have values similar to those "intrinsic values" of the natural environmental ones. In fact, according to Pearce, it is about a modern interpretation of

*"... it is not about convenience or feelings when trying to preserve or not buildings from past times. We do not have rights to touch them. They are not ours. They belong partly to those who built them and partly to all mankind generations that will follow us."* (Ruskin, as cited by Pearce, 1998).

From the point of view of weak sustainability, this position can be objected. It is held that conservation at any cost is not practical and even doubtful from the moral point of view since the resources spent on conservation could have been used today with other purposes, maybe with higher benefits. The defenders of sustainability often disregard the basic principle of economy: the opportunity costs. Beyond the moral arguments of conservation, the financial resources spent on conservation, especially in developing countries, can be used to solve

It is also certain that not all the present goods can be preserved with the expectation that future generations consider them as their "cultural heritage". Leaving the decision in hands of "specialists" would be in agreement, perhaps, with Ruskin's thought, but this attitude can be considered inappropriate according to the present concept of heritage as "social

Each generation has a capital that mainly includes three kinds of goods: natural, cultural (personal property and real estate) and human resources. There is a share, quantitatively smaller, of natural and cultural goods, considered as having special features, and because of this, they deserve to be protected, so that they can be enjoyed by the present and next generations (Lichfield et al., 1993). This apparently simple issue, in practice, results in countless difficulties of complex order, among which economic aspects play a key role.

In the previous paragraph, it is possible to foresee two topics that deserve consideration: that of the relationships among man, nature and culture; and heritage conservations as a problem that affects or involves different generations (the latter, key point in the classical

Regarding the first issue, it can be stated that until mid twentieth century the human myth of the supernatural man prevailed, and the opposition between nature and culture was the basis for the prevailing anthropological model. The world seemed to be built by three overlapped strata, isolated from each other: man-culture, life-nature, and physics-chemistry. This situation began to be modified in the 1950s with the opening of the gaps between these tight paradigms,

It is owed to Schrödinger, pioneer of the biological revolution, the main idea that: living beings are nourished not only by energy but also by complex organisation and information. Thus, the human society, which can be considered the most emancipated as regards nature,

enabling a new concept in the relationships between the natural and cultural things.

present basic needs (food, health, housing), which can also be considered as "rights".

Ruskin's thought:

construction".

**2.2 Man, nature and culture** 

definition of sustainability).

which has been applied, not very accurately, among the people responsible for policies and decision making (Meppem, 1998). There is no coincidence about its meaning, either.

If the sustainability definitions are considered, it may be concluded that most of them are expressed in normative or positivist terms. According to Keynes, a regulatory science can be defined as a body of systematised knowledge referring to the criteria of what something must be; instead, the positivist science considers what things are (Keynes, 1890, as cited by Meppem, T. & R. Gill, 1998).

The most widespread regulatory definition of sustainable development is that emerging from the so-called Brundtland Commission in 1987, which states that development must answer to the current needs without compromising the ability of future generations to meet their own needs. The success of this definition is sometimes attributed to its ambiguity.

In general, there is some agreement in the fact that the scientific positivism is incapable of answering by itself the political and cultural variables that lead the action to a sustainable development. The evidence resulting from the science domains, from sociology, philosophy, economy and law suggests that the conventional regulatory-positivist approach is not suitable from the epistemological point of view. The alternative is to develop a process in which it is taken into account the socio-cultural context where the environmental and economic information circulates, considering the development scenarios more completely.

According to Pearce, the capital stock takes different shapes: works and products, human capital (knowledge, abilities), natural, environmental or social capital. The latter involves the group of social relationships that produce welfare directly or indirectly. The built heritage, which is the main subject of our study, can be thought also as a capital, which comprises a stock of physical works along with ideas, beliefs and values that gather communities and link the present with the past (Pearce, 1998).

As a general rule, the sustainable development requires that the capital stock transferred to the next generation is lower than the capital stock in hands of the current generation. From that, two new concepts have arisen:

	- a. The environment has intrinsic values and it is not replaceable. There is no possible replacement (irreversibility).
	- b. The value of the environment and its components is uncertain, therefore, it should not be destroyed for caution. This reason may respond to a kind of "non-use values" (for instance, a plant species can be the key in the future healing of a disease, and this would be impossible if this species becomes extinct).

From the social point of view, the strong sustainability is related with the idea of investing in activities which enable social progress, that is to say, improving the public participation, democracy, the reinforcement of local communities, information flow and the human capital, since the formation of human capital through education enables the development of other social values. Within the strong social sustainability, it is possible to focus on the cultural capital and, specifically, on the built heritage. There is some agreement about the fact that art and architecture have values similar to those "intrinsic values" of the natural environmental ones. In fact, according to Pearce, it is about a modern interpretation of Ruskin's thought:

*"... it is not about convenience or feelings when trying to preserve or not buildings from past times. We do not have rights to touch them. They are not ours. They belong partly to those who built them and partly to all mankind generations that will follow us."* (Ruskin, as cited by Pearce, 1998).

From the point of view of weak sustainability, this position can be objected. It is held that conservation at any cost is not practical and even doubtful from the moral point of view since the resources spent on conservation could have been used today with other purposes, maybe with higher benefits. The defenders of sustainability often disregard the basic principle of economy: the opportunity costs. Beyond the moral arguments of conservation, the financial resources spent on conservation, especially in developing countries, can be used to solve present basic needs (food, health, housing), which can also be considered as "rights".

It is also certain that not all the present goods can be preserved with the expectation that future generations consider them as their "cultural heritage". Leaving the decision in hands of "specialists" would be in agreement, perhaps, with Ruskin's thought, but this attitude can be considered inappropriate according to the present concept of heritage as "social construction".

#### **2.2 Man, nature and culture**

Sustainable Development – 150 Policy and Urban Development – Tourism, Life Science, Management and Environment

which has been applied, not very accurately, among the people responsible for policies and

If the sustainability definitions are considered, it may be concluded that most of them are expressed in normative or positivist terms. According to Keynes, a regulatory science can be defined as a body of systematised knowledge referring to the criteria of what something must be; instead, the positivist science considers what things are (Keynes, 1890, as cited by

The most widespread regulatory definition of sustainable development is that emerging from the so-called Brundtland Commission in 1987, which states that development must answer to the current needs without compromising the ability of future generations to meet their own needs. The success of this definition is sometimes attributed to its ambiguity.

In general, there is some agreement in the fact that the scientific positivism is incapable of answering by itself the political and cultural variables that lead the action to a sustainable development. The evidence resulting from the science domains, from sociology, philosophy, economy and law suggests that the conventional regulatory-positivist approach is not suitable from the epistemological point of view. The alternative is to develop a process in which it is taken into account the socio-cultural context where the environmental and economic information circulates, considering the development scenarios more completely. According to Pearce, the capital stock takes different shapes: works and products, human capital (knowledge, abilities), natural, environmental or social capital. The latter involves the group of social relationships that produce welfare directly or indirectly. The built heritage, which is the main subject of our study, can be thought also as a capital, which comprises a stock of physical works along with ideas, beliefs and values that gather

As a general rule, the sustainable development requires that the capital stock transferred to the next generation is lower than the capital stock in hands of the current generation. From



a. The environment has intrinsic values and it is not replaceable. There is no possible

b. The value of the environment and its components is uncertain, therefore, it should not be destroyed for caution. This reason may respond to a kind of "non-use values" (for instance, a plant species can be the key in the future healing of a

disease, and this would be impossible if this species becomes extinct).

From the social point of view, the strong sustainability is related with the idea of investing in activities which enable social progress, that is to say, improving the public participation,

communities and link the present with the past (Pearce, 1998).

included within the weak sustainability concept.

that, two new concepts have arisen:

for this are the following:

replacement (irreversibility).

decision making (Meppem, 1998). There is no coincidence about its meaning, either.

Meppem, T. & R. Gill, 1998).

Each generation has a capital that mainly includes three kinds of goods: natural, cultural (personal property and real estate) and human resources. There is a share, quantitatively smaller, of natural and cultural goods, considered as having special features, and because of this, they deserve to be protected, so that they can be enjoyed by the present and next generations (Lichfield et al., 1993). This apparently simple issue, in practice, results in countless difficulties of complex order, among which economic aspects play a key role.

In the previous paragraph, it is possible to foresee two topics that deserve consideration: that of the relationships among man, nature and culture; and heritage conservations as a problem that affects or involves different generations (the latter, key point in the classical definition of sustainability).

Regarding the first issue, it can be stated that until mid twentieth century the human myth of the supernatural man prevailed, and the opposition between nature and culture was the basis for the prevailing anthropological model. The world seemed to be built by three overlapped strata, isolated from each other: man-culture, life-nature, and physics-chemistry. This situation began to be modified in the 1950s with the opening of the gaps between these tight paradigms, enabling a new concept in the relationships between the natural and cultural things.

It is owed to Schrödinger, pioneer of the biological revolution, the main idea that: living beings are nourished not only by energy but also by complex organisation and information. Thus, the human society, which can be considered the most emancipated as regards nature,

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 153

from a CNIT (change of the negative impact trend) point. Like in the supply and demand curves of economic models, the tourist population and sustainability flow around the intersection area of both bands. Such area is the sustainable development zone. If the tourist population and the negative impacts do not exceed the maximum levels that this area

Many tourist projects have ignored these tendencies, encouraging tourism growth beyond the recommended limits. This, in the long term, has resulted in the opposite expected effect: the decrease of the tourist flow together with social and environmental negative impacts in

determines, a sustainable development can be reached in the long term.

Fig. 1. Sustainable development area. Adapted from Lawrence (1994)

giving them a socio-economic value in their original estate.

natural environment and at sustaining the local population welfare.

opposite (enjoying nature in trips mainly organised with another purpose).

The interest for the environment, developed in the industrialised countries since the 1980s, has encouraged particular ways of tourism, such as ecotourism. This fact contains potentially excellent opportunities of using tourism as protection tool of natural ecosystems,

The term "ecotourism" seems to have appeared in Mexico, chosen by Ceballos-Lascurain to define activities related to trips to natural areas in relatively pristine conditions, in order to study, admire and enjoy the flora, fauna and cultural expressions that may have existed (Filion et al., 1994). This concept has been broadened throughout time, including the environmental and socio-cultural consequences resulting from the tourist activity. Thus, nowadays, it is considered that ecotourism is a responsible trip, aimed at preserving the

The definition of ecotourism includes a wide range of activities. Some market segments are small and well-defined (ornithologists, observation of rare species), while others are just the

the area, sometimes very difficult to revert.

**2.3.1 About ecotourism** 

actually nourishes its independence from multiple relations: the more autonomous the living system, the more dependent on the ecosystem where it is integrated (Morin, 1973).

This complexity sometimes seems not to be taken into account in the conservation environment of the natural and cultural heritage, and this can result in the fact that the implemented measures do not produce the expected results. For instance, many of the national and international efforts have been centred on the creation of national parks and protected areas, aimed at the conservation of pristine and intangible goods. Considering cultural landscapes is relatively recent, understanding as such those where the physical and biological features have been extensively modified by human activity. This means that the decisions and social - economic processes prevail in determining spatial patterns and landscape characteristics. Disregarding this aspect, sometimes the protected areas do not offer an integral solution for the wild life conservation, aim of its creation. Then, it becomes necessary the programs oriented specifically to the needs of rural residents, who live on agriculture and on the exploitation of the wild life in the area. This kind of approaches to the conservation fulfils a double purpose: to protect the wild habitat and to respond to human needs at the same time (Young, 1997:137).

Regarding the problem between generations, it is known that, in the Earth Summit held in Rio de Janeiro in 1992, the sustainable development arose as one of the most urgent and critical topics of international politics. Some specialists consider that this critical issue has been mostly dealt from an "emotional" point of view, but not enough progress has been made in the construction of sustainable patterns for a modern industrial society. A serious position requires the study of the resource assessment, what usually results from its contribution to use or profit. The key factor is how the value is considered so that present and future have an equal treatment. Sensitivity is necessary in relation to both and this implies a symmetrical treatment of the generations, in the sense that neither the present nor the future must profit at the expense of the other. Thus, there is no preference for the romantic vision that privileges the future or for the consumption view that only decides in function of the present (Chichilnisky, 1997).

#### **2.3 Tourism and sustainability**

Tourist resorts attract cyclic populations throughout time. The tourist's perception of the social and environmental quality of the site influences the future attraction that such places bring about. If tourists have a positive perception of the site, an increasing number of people will visit the area. As this figure increases, the effects of tourism on social and environmental quality increase. Thus, degradation levels may be reached because of excessive visiting, and these levels can revert the tourism trend in the area (Lawrence, 1994:265-66). This process is known as "tourist cycle", shown in Figure 1.

Tourism is cyclic by nature, so are its social and environmental impacts. In Figure 1 there are two representative bands of the tourist population and of sustainability. The first grows through time up to an MTP (maximum tourist population) point, from which the people flow tends to decrease, as a consequence of excessive visiting, pollution, crimes, etc. On the other hand, the negative impacts that indicate a decline of sustainability take some time to revert, since a period of time is needed for the environmental improvement and sociocultural changes. If the tourists' arrival continues decreasing, the negative impacts increase from a CNIT (change of the negative impact trend) point. Like in the supply and demand curves of economic models, the tourist population and sustainability flow around the intersection area of both bands. Such area is the sustainable development zone. If the tourist population and the negative impacts do not exceed the maximum levels that this area determines, a sustainable development can be reached in the long term.

Many tourist projects have ignored these tendencies, encouraging tourism growth beyond the recommended limits. This, in the long term, has resulted in the opposite expected effect: the decrease of the tourist flow together with social and environmental negative impacts in the area, sometimes very difficult to revert.

Fig. 1. Sustainable development area. Adapted from Lawrence (1994)

#### **2.3.1 About ecotourism**

Sustainable Development – 152 Policy and Urban Development – Tourism, Life Science, Management and Environment

actually nourishes its independence from multiple relations: the more autonomous the living system, the more dependent on the ecosystem where it is integrated (Morin, 1973).

This complexity sometimes seems not to be taken into account in the conservation environment of the natural and cultural heritage, and this can result in the fact that the implemented measures do not produce the expected results. For instance, many of the national and international efforts have been centred on the creation of national parks and protected areas, aimed at the conservation of pristine and intangible goods. Considering cultural landscapes is relatively recent, understanding as such those where the physical and biological features have been extensively modified by human activity. This means that the decisions and social - economic processes prevail in determining spatial patterns and landscape characteristics. Disregarding this aspect, sometimes the protected areas do not offer an integral solution for the wild life conservation, aim of its creation. Then, it becomes necessary the programs oriented specifically to the needs of rural residents, who live on agriculture and on the exploitation of the wild life in the area. This kind of approaches to the conservation fulfils a double purpose: to protect the wild habitat and to respond to human

Regarding the problem between generations, it is known that, in the Earth Summit held in Rio de Janeiro in 1992, the sustainable development arose as one of the most urgent and critical topics of international politics. Some specialists consider that this critical issue has been mostly dealt from an "emotional" point of view, but not enough progress has been made in the construction of sustainable patterns for a modern industrial society. A serious position requires the study of the resource assessment, what usually results from its contribution to use or profit. The key factor is how the value is considered so that present and future have an equal treatment. Sensitivity is necessary in relation to both and this implies a symmetrical treatment of the generations, in the sense that neither the present nor the future must profit at the expense of the other. Thus, there is no preference for the romantic vision that privileges the future or for the consumption view that only decides in

Tourist resorts attract cyclic populations throughout time. The tourist's perception of the social and environmental quality of the site influences the future attraction that such places bring about. If tourists have a positive perception of the site, an increasing number of people will visit the area. As this figure increases, the effects of tourism on social and environmental quality increase. Thus, degradation levels may be reached because of excessive visiting, and these levels can revert the tourism trend in the area (Lawrence,

Tourism is cyclic by nature, so are its social and environmental impacts. In Figure 1 there are two representative bands of the tourist population and of sustainability. The first grows through time up to an MTP (maximum tourist population) point, from which the people flow tends to decrease, as a consequence of excessive visiting, pollution, crimes, etc. On the other hand, the negative impacts that indicate a decline of sustainability take some time to revert, since a period of time is needed for the environmental improvement and sociocultural changes. If the tourists' arrival continues decreasing, the negative impacts increase

1994:265-66). This process is known as "tourist cycle", shown in Figure 1.

needs at the same time (Young, 1997:137).

function of the present (Chichilnisky, 1997).

**2.3 Tourism and sustainability** 

The interest for the environment, developed in the industrialised countries since the 1980s, has encouraged particular ways of tourism, such as ecotourism. This fact contains potentially excellent opportunities of using tourism as protection tool of natural ecosystems, giving them a socio-economic value in their original estate.

The term "ecotourism" seems to have appeared in Mexico, chosen by Ceballos-Lascurain to define activities related to trips to natural areas in relatively pristine conditions, in order to study, admire and enjoy the flora, fauna and cultural expressions that may have existed (Filion et al., 1994). This concept has been broadened throughout time, including the environmental and socio-cultural consequences resulting from the tourist activity. Thus, nowadays, it is considered that ecotourism is a responsible trip, aimed at preserving the natural environment and at sustaining the local population welfare.

The definition of ecotourism includes a wide range of activities. Some market segments are small and well-defined (ornithologists, observation of rare species), while others are just the opposite (enjoying nature in trips mainly organised with another purpose).

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 155

economy, politics, socio-cultural and religious factors. That net of interdependent factors creates a strong association between population and the built environment. The open spaces help to place the inhabitants in their social space, influencing the way and intensity of the communication between them. Historically (such as the case of many settlements in Saudi Arabia and nearby zones), the circulation systems were designed for enabling the connection between the residential areas and the agricultural tasks, the cult places and the markets. Many paths were designed as labyrinths for disorienting the rivals in case of attack. More recently, the land subdivision according to a grid, the abandonment of the compact fabric for an extended and disorganised urbanisation, surfacing of passages and open spaces for enabling the vehicle access, as well as the excessive tourist interest have

Including the economic variable into the domain of nature and culture aesthetics has always been suspicious as it seems impossible to value the invaluable. Regarding this, the viewpoints vary with the culture of each people. As Michel Racine says, referring to the "tourism of gardens" in Great Britain and France, "… g*arden tourism has become a business, activity considered as the most noble in the mainly protestant countries, when this activity is often* 

However, the association between production, commerce and aesthetics has an early background. Significant technological innovations took place not only to improve hunting or recollection efficiency but also to achieve aesthetics goals. In the Aurignacian period (40 thousand to 28 thousand years ago), the Cromagnon man created several techniques for working ivory, including the preparation and use of metallic abrasives for polishing it. They used the ivory for creating beads, earrings and small figures, and seldom for making tools or weapons. Objects made in bones and mammal teeth, fossils, corals, limestone, etc. have been found; the raw material was not chosen at random, and many materials were from

Incorporating the economic aspects to this knowledge field has been expanded in the last



There are different branches of the economy that are directly or indirectly related to the built heritage. This is considered part of the culture economy; thus, it is linked to the theory of

geographically far destinations, acquired by means of trade (PNUD, 1998).

twenty years, taking into account the following causes, among others:

destroyed the original balance (Saleh, 1998).

**3.1 Built heritage and the economic variable** 

**3. Analysis of the main variables** 

*suspected in France*" *(*Racine, 2001).

(Casey et al., 1996).

especially in the public sector.

Ecotourism seems especially positive in developing countries, since many of them are characterised by their biodiversity richness, but sometimes they do not have the necessary means for preserving the environment, favouring other forms of unsustainable economic development. In countries with a particular natural and cultural heritage, and with a special sensitivity or tradition in its conservation, these activities may become the main income source of the nation. In Nepal, "*the economic dream of conservationists*" seems to come true (Wells, 1994): a net of well-established protected areas produces, thanks to foreign visitors, an important part of the income of one of the poorest countries in the world.

In some developed countries, ecotourism has a significant importance. For instance, in Canada, millions of inhabitants perform tourist activities related to wild life, such as bird watching. These activities produce a high economic impact on the gross net product, on the income level of the population, on job creation and government income through taxes. In this country, an important part of the income the government receives through taxes from local ecotourism is invested in preserving wild life. Therefore, quantifying the socioeconomic importance of ecotourism is a key factor for encouraging governments and companies to increase their efforts in environment conservation.

Though travelling with the purpose of enjoying nature has important benefits, there are also great conflicts. Beyond the well-known negative impacts on society and environment, there are other problems in the developing countries, such as money leakage: international airlines, hotel chains, etc. (Filion, 1994).

#### **2.3.2 Cultural tourism and built heritage**

Built heritage must also be studied as the basis for the development of sustainable tourist activities. According to "The Royal Heritage Site Working Group", tourism and heritage are activities that must find a balance, including understanding the permanent value of the sites with historic and heritage relevance, as well as respecting the original nature and purposes of the site, though its uses have been modified. The full visitor's enjoyment must be guaranteed, in relation to the site and its social, cultural and aesthetic context, and at the same time its maintenance and conservation in the long term must be also guaranteed so that its integrity is safe through time.

This balance may be altered by some obstacles that hinder a harmonic relationship between heritage and tourist activity, especially in developing countries having population settlements with heritage value (coastal, mountainous zones, fishing villages, etc.). There may appear a great pressure by the tourist use of those settlements; this process coexists, among other phenomena, with the increasing number of new constructions, including holiday houses uninhabited most part of the year and the public inefficiency for providing economic resources for conservation and rehabilitation activities (Öznögul, 1998). This situation can be observed in many cities in different countries.

The previous paragraph shows the lack of understanding regarding the nature of sites, which are only analysed according to their "picturesque" features or to the way of life characterising them. The massive incorporation of visitors may represent the risk of incorporating foreign patterns which can destroy the cultural heritage to be preserved.

Certain population settlements with heritage value indicate that the building morphology and their characteristic urban fabric respond to complex factors including climate, safety, economy, politics, socio-cultural and religious factors. That net of interdependent factors creates a strong association between population and the built environment. The open spaces help to place the inhabitants in their social space, influencing the way and intensity of the communication between them. Historically (such as the case of many settlements in Saudi Arabia and nearby zones), the circulation systems were designed for enabling the connection between the residential areas and the agricultural tasks, the cult places and the markets. Many paths were designed as labyrinths for disorienting the rivals in case of attack. More recently, the land subdivision according to a grid, the abandonment of the compact fabric for an extended and disorganised urbanisation, surfacing of passages and open spaces for enabling the vehicle access, as well as the excessive tourist interest have destroyed the original balance (Saleh, 1998).

#### **3. Analysis of the main variables**

Sustainable Development – 154 Policy and Urban Development – Tourism, Life Science, Management and Environment

Ecotourism seems especially positive in developing countries, since many of them are characterised by their biodiversity richness, but sometimes they do not have the necessary means for preserving the environment, favouring other forms of unsustainable economic development. In countries with a particular natural and cultural heritage, and with a special sensitivity or tradition in its conservation, these activities may become the main income source of the nation. In Nepal, "*the economic dream of conservationists*" seems to come true (Wells, 1994): a net of well-established protected areas produces, thanks to foreign visitors,

In some developed countries, ecotourism has a significant importance. For instance, in Canada, millions of inhabitants perform tourist activities related to wild life, such as bird watching. These activities produce a high economic impact on the gross net product, on the income level of the population, on job creation and government income through taxes. In this country, an important part of the income the government receives through taxes from local ecotourism is invested in preserving wild life. Therefore, quantifying the socioeconomic importance of ecotourism is a key factor for encouraging governments and

Though travelling with the purpose of enjoying nature has important benefits, there are also great conflicts. Beyond the well-known negative impacts on society and environment, there are other problems in the developing countries, such as money leakage: international

Built heritage must also be studied as the basis for the development of sustainable tourist activities. According to "The Royal Heritage Site Working Group", tourism and heritage are activities that must find a balance, including understanding the permanent value of the sites with historic and heritage relevance, as well as respecting the original nature and purposes of the site, though its uses have been modified. The full visitor's enjoyment must be guaranteed, in relation to the site and its social, cultural and aesthetic context, and at the same time its maintenance and conservation in the long term must be also guaranteed so

This balance may be altered by some obstacles that hinder a harmonic relationship between heritage and tourist activity, especially in developing countries having population settlements with heritage value (coastal, mountainous zones, fishing villages, etc.). There may appear a great pressure by the tourist use of those settlements; this process coexists, among other phenomena, with the increasing number of new constructions, including holiday houses uninhabited most part of the year and the public inefficiency for providing economic resources for conservation and rehabilitation activities (Öznögul, 1998). This

The previous paragraph shows the lack of understanding regarding the nature of sites, which are only analysed according to their "picturesque" features or to the way of life characterising them. The massive incorporation of visitors may represent the risk of incorporating foreign patterns which can destroy the cultural heritage to be preserved.

Certain population settlements with heritage value indicate that the building morphology and their characteristic urban fabric respond to complex factors including climate, safety,

an important part of the income of one of the poorest countries in the world.

companies to increase their efforts in environment conservation.

situation can be observed in many cities in different countries.

airlines, hotel chains, etc. (Filion, 1994).

that its integrity is safe through time.

**2.3.2 Cultural tourism and built heritage** 

#### **3.1 Built heritage and the economic variable**

Including the economic variable into the domain of nature and culture aesthetics has always been suspicious as it seems impossible to value the invaluable. Regarding this, the viewpoints vary with the culture of each people. As Michel Racine says, referring to the "tourism of gardens" in Great Britain and France, "… g*arden tourism has become a business, activity considered as the most noble in the mainly protestant countries, when this activity is often suspected in France*" *(*Racine, 2001).

However, the association between production, commerce and aesthetics has an early background. Significant technological innovations took place not only to improve hunting or recollection efficiency but also to achieve aesthetics goals. In the Aurignacian period (40 thousand to 28 thousand years ago), the Cromagnon man created several techniques for working ivory, including the preparation and use of metallic abrasives for polishing it. They used the ivory for creating beads, earrings and small figures, and seldom for making tools or weapons. Objects made in bones and mammal teeth, fossils, corals, limestone, etc. have been found; the raw material was not chosen at random, and many materials were from geographically far destinations, acquired by means of trade (PNUD, 1998).

Incorporating the economic aspects to this knowledge field has been expanded in the last twenty years, taking into account the following causes, among others:


There are different branches of the economy that are directly or indirectly related to the built heritage. This is considered part of the culture economy; thus, it is linked to the theory of

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 157

However, this situation, favourable at first, has negative aspects related with well-identified problems: excessive amount of visitors, the lack of content in cultural sites, the risk of developing a pseudo-cultural tourist offer, etc. The excessive visits threaten the existence of buildings and monuments, along with the progressive loss of its cultural identity. The traditional commerce often changes to *souvenirs* shops. The cohabitation becomes difficult; the original inhabitants often emigrate, leaving the historic centres empty in low season,

The badly-administered cultural offer grows and the projects revaluing cultural heritage with tourist purposes are usually faster than the demand. The success of certain cultural sites attracts tourist, hotel and real estate agents. Thus, some behaviour similar to that destroying several sea or mountain sites is developed around the cultural heritage. Tourism, which at first is an important tool for being aware about the heritage value as basis of local

As regards heritage in hands of private owners, other problems appear. Many of them think that opening their properties to the public is anti-economic and that visits and economic activities organised for making money damage or destroy the heritage to be preserved. In addition, the fact that the building appears in an official list as protected property may influence negatively in its market value, since future modifications are limited. Buildings or areas to be preserved provide a benefit to the society but create a cost for the proprietors (although there are economic incentives for preservation), who are prevented from altering

An interesting example for the study of the interdependence between the economic, cultural, social and environmental variables is the city and, in particular, the historic city in developing countries. The socio-economic causes that lead to the downfall and destruction of that heritage will be analysed, as well as examples of strategies in order to revert the situation, put into practice in some countries with the help of international organisations.

The protective measure of the urban historic heritage should be taken not only to suitably preserve and revitalise buildings and sites with the aim of satisfying the social, cultural and economic requirements. On the contrary, these actions should be tightly linked to a wider objective concerning the urban identity, considered a requirement for increasing environmental and human quality of the settlements, trying to get rid of degenerative forms of the urban fabric such as decline, insecurity and lack of efficiency. This degeneration results in chaotic and unsafe urban environments, with problems of social and environmental decline. In terms of this, Notarangelo mentions Pierluigi Cervellati, who believes that the memory of a historic city should be assimilated with the memory of human beings. When men lose their memory, they become mad, and the same happens with cities

A historic city must be preserved in its nature of cultural heritage and economic resource. We will not analyse the first issue, which was considered for the first time, at international level by the Athens Charter referring to artistic and archaeological heritage (1933) "... *the* 

cultural identity, becomes finally a way of trivialising urban and rural landscapes.

them in order to obtain other economic benefits (Cassey et al, 1996).

distorting the local urban characteristics.

**4. Case study and discussion 4.1 The sustainable historic city** 

(Cervellati, 1991, as cited by Notarangelo, 1998).

property rights (public and private sector, or problems related to different generations), the economy of regulatory instruments (incentives and other measures related to heritage conservation policies), cultural tourism, etc.

A feature of heritage is that this has not been produced intentionally as such, as goods or collection of goods, but it is a heterogeneous whole of elements produced for several purposes and that has come down to us with a deeper meaning than the original one. What today is considered heritage is a social and cultural construction, created and controlled by experts. This construction has been changing throughout time and has social perceptions about what is culturally interesting and valuable. According to Pierre Bordieu, it is about the creation of cultural symbols by "consecration". In the case of heritage, the goals are obtained through standards where, as mentioned before, experts mainly participate (Towse, 2002).

An avoidable consequence is that the heritage stock is always growing, as a result of some mechanisms, such as the designation of goods from certain age or type, the inclusion of new heritage categories, etc. Among other consequences, this situation leads to carry out an economic choice, determining the amount of investments for adding value through conservation or revaluation. As regards its possible tourist or recreational use, either the lack of visitors or the excess of them brings about economic problems to the authorities in charge of heritage.

Once the object and field of study have been defined, it is possible to refer to the different dimensions of the economic research in the domain of culture and heritage (Ost et al., 1998). We are interested especially in two:


From the economic point of view, the built heritage is subjected to a double approach. It can be considered as goods, as a product (*commodity*) and at the same time, as service support. Heritage as goods is the monument, the site or building with its physical features. From the point of view of services, it is about the concerned built heritage with the use or function to which it is affected or potentially can be.

#### **3.2 Built heritage and tourism: benefits and risks for sustainability**

When including the historic environment built by man, the built heritage comprises a great variety of goods: buildings, old monuments and archaeological sites, designed landscapes and gardens, battle fields, industrial buildings and ruins.

Since the 1980s, the interest for the relationships between cultural heritage and tourism has been strengthened and the economic function of heritage has been explicitly recognised by those responsible for decision-making. Performed studies show that each restored and enhanced site gives rise to a certain amount of jobs in the site and in peripheral activities, generating a cost per visitor that can be estimated (Vincent et al., 1993). If taking into account the annual volume of visitors related with certain attractions (for instance, in France about 7 millions annual visitors for the Eiffel Tower and more than 8 millions for the Louvre), it can be observed that these economic effects, direct and multiplicative, are extremely important.

However, this situation, favourable at first, has negative aspects related with well-identified problems: excessive amount of visitors, the lack of content in cultural sites, the risk of developing a pseudo-cultural tourist offer, etc. The excessive visits threaten the existence of buildings and monuments, along with the progressive loss of its cultural identity. The traditional commerce often changes to *souvenirs* shops. The cohabitation becomes difficult; the original inhabitants often emigrate, leaving the historic centres empty in low season, distorting the local urban characteristics.

The badly-administered cultural offer grows and the projects revaluing cultural heritage with tourist purposes are usually faster than the demand. The success of certain cultural sites attracts tourist, hotel and real estate agents. Thus, some behaviour similar to that destroying several sea or mountain sites is developed around the cultural heritage. Tourism, which at first is an important tool for being aware about the heritage value as basis of local cultural identity, becomes finally a way of trivialising urban and rural landscapes.

As regards heritage in hands of private owners, other problems appear. Many of them think that opening their properties to the public is anti-economic and that visits and economic activities organised for making money damage or destroy the heritage to be preserved. In addition, the fact that the building appears in an official list as protected property may influence negatively in its market value, since future modifications are limited. Buildings or areas to be preserved provide a benefit to the society but create a cost for the proprietors (although there are economic incentives for preservation), who are prevented from altering them in order to obtain other economic benefits (Cassey et al, 1996).

#### **4. Case study and discussion**

Sustainable Development – 156 Policy and Urban Development – Tourism, Life Science, Management and Environment

property rights (public and private sector, or problems related to different generations), the economy of regulatory instruments (incentives and other measures related to heritage

A feature of heritage is that this has not been produced intentionally as such, as goods or collection of goods, but it is a heterogeneous whole of elements produced for several purposes and that has come down to us with a deeper meaning than the original one. What today is considered heritage is a social and cultural construction, created and controlled by experts. This construction has been changing throughout time and has social perceptions about what is culturally interesting and valuable. According to Pierre Bordieu, it is about the creation of cultural symbols by "consecration". In the case of heritage, the goals are obtained through standards where, as mentioned before, experts mainly participate (Towse, 2002).

An avoidable consequence is that the heritage stock is always growing, as a result of some mechanisms, such as the designation of goods from certain age or type, the inclusion of new heritage categories, etc. Among other consequences, this situation leads to carry out an economic choice, determining the amount of investments for adding value through conservation or revaluation. As regards its possible tourist or recreational use, either the lack of visitors or the excess of them brings about economic problems to the authorities in

Once the object and field of study have been defined, it is possible to refer to the different dimensions of the economic research in the domain of culture and heritage (Ost et al., 1998).



From the economic point of view, the built heritage is subjected to a double approach. It can be considered as goods, as a product (*commodity*) and at the same time, as service support. Heritage as goods is the monument, the site or building with its physical features. From the point of view of services, it is about the concerned built heritage with the use or function to

When including the historic environment built by man, the built heritage comprises a great variety of goods: buildings, old monuments and archaeological sites, designed landscapes

Since the 1980s, the interest for the relationships between cultural heritage and tourism has been strengthened and the economic function of heritage has been explicitly recognised by those responsible for decision-making. Performed studies show that each restored and enhanced site gives rise to a certain amount of jobs in the site and in peripheral activities, generating a cost per visitor that can be estimated (Vincent et al., 1993). If taking into account the annual volume of visitors related with certain attractions (for instance, in France about 7 millions annual visitors for the Eiffel Tower and more than 8 millions for the Louvre), it can be observed that these economic effects, direct and multiplicative, are extremely important.

conservation policies), cultural tourism, etc.

charge of heritage.

economies.

We are interested especially in two:

which it is affected or potentially can be.

widely, to the sustainable development issue.

and gardens, battle fields, industrial buildings and ruins.

**3.2 Built heritage and tourism: benefits and risks for sustainability** 

#### **4.1 The sustainable historic city**

An interesting example for the study of the interdependence between the economic, cultural, social and environmental variables is the city and, in particular, the historic city in developing countries. The socio-economic causes that lead to the downfall and destruction of that heritage will be analysed, as well as examples of strategies in order to revert the situation, put into practice in some countries with the help of international organisations.

The protective measure of the urban historic heritage should be taken not only to suitably preserve and revitalise buildings and sites with the aim of satisfying the social, cultural and economic requirements. On the contrary, these actions should be tightly linked to a wider objective concerning the urban identity, considered a requirement for increasing environmental and human quality of the settlements, trying to get rid of degenerative forms of the urban fabric such as decline, insecurity and lack of efficiency. This degeneration results in chaotic and unsafe urban environments, with problems of social and environmental decline. In terms of this, Notarangelo mentions Pierluigi Cervellati, who believes that the memory of a historic city should be assimilated with the memory of human beings. When men lose their memory, they become mad, and the same happens with cities (Cervellati, 1991, as cited by Notarangelo, 1998).

A historic city must be preserved in its nature of cultural heritage and economic resource. We will not analyse the first issue, which was considered for the first time, at international level by the Athens Charter referring to artistic and archaeological heritage (1933) "... *the* 

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 159

In this situation, it is habitual for an important part of the low income population to live in old buildings in central historic areas, where relatively high socio-economic classes used to live. With the displacement of these inhabitants towards the suburbs, these huge houses were subdivided in order to be used by several families. However, most of these properties neither are connected to the sanitary infrastructure nor receive an adequate system of

In this context, strategic or sector plans for reverting this situation have appeared in many cities in Latin America since the 1990s. Rojas thinks that, in developing countries, the activities destined to preservation may undergo three stages. The first is characterised by the pressure that some cultural minorities exert for establishing some control or legislation on this matter. This brings about isolated interventions in specific monuments, generally financed by private philanthropists. Many of these buildings are destined to public use, what leads to a non-sustainable conservation: investments are made now and then due to

In Latin America, some countries have reached, at least partially, the second stage, in which governments assume responsibilities in conservation. This participation from the estate, potentially positive, brings about other problems: the lack of continuity in the conservation efforts due to budget restrictions and to the volatility of public resources. The Bank for Inter American Development, which gives credits for conservation, has warned that the conservation process, as currently organised and financed, is not sustainable in the long term and represents a heavy burden in the budgets of the public sector that, also has to

The trend should be progressing to a third stage, in which preservation of historic heritage becomes the responsibility of the community as a whole, including the private sector. Sustainability in the long term can be only achieved when the involved social actors jointly

The action of the public sector allows providing the private sector with favourable conditions for its active participation in the process (Rojas, 2001). Firstly, with the provision of stability in the regulatory frame. Investors are always afraid of risks when acting in an area of unknown future. Secondly, showing the feasibility of investments in non-traditional

The strategies for modifying this trend are numerous. Firstly, the traditional way of acting is towards actions aimed at the physical improvement of the area (repairs, maintenance, building enhancement, urban infrastructure and facilities. This attitude is not directly aimed at the economic development of the inhabitants, though it may influence it. On the other hand, a plan of socio-economic action may have value for the population, but it does not act on the functional and spatial structure, on the urban shape and its decline. The best way of sustainable recovery of these areas is based on an integrated strategy of interventions, able to solve the demands of the socio-economic development and the conservation of heritage

Some ideas referred to the effective protection of the cultural resources in developing


rubbish collection, that is why their deterioration and downfall rapidly increase.

the lack of systematic maintenance and inappropriate use.

collaborate with this aim.

countries are the following:

prioritise the problems regarding poverty in these countries (Rojas, 2001).

markets is a possible means of deeply encouraging the private investors.

values, without disregarding the spatial identity of the sites.

*architectonic values must be preserved in all cases, either isolated buildings or complete urban nuclei… must be preserved when they are the expression of a previous culture or reach a general interest…"* 

We will analyse which is the material benefit, beyond the spiritual one, that preservation offers to the process of urban development and management. It is interesting to study which is the economic advantage that the public or private sector can obtain from the conservation of historic centres. In 1977, the Charter of Machu Picchu introduces for the first time the consideration of the material value underlying in the conservation of historic centres, joining the economic value to the cultural one "... *the action of preserving, restoring and recycling the historic environments and architectonic monuments must be integrated in the vital process of urban development, also because it is the only way of financing and managing this operation"* (Machu Picchu Chart, 1977).

In developing countries, the problems present characteristic features. When the residential and economic activities abandon the historic centres, the benefit resulting from the real estate market declines. As the space demand is reduced, so is cash flow, therefore sales decline and become sporadic. Besides, in many cases, the preservation regulations together with the building deterioration increase construction costs, making the restoration little competitive compared with other areas. These trends prevent the private sector from making new investments in the historic centres: investors look for opportunities outside this area, re-feeding the decline process.

The presence of non-productive urban districts or of those districts that do not meet the idea of an efficient and comfortable city leads to a situation which many historic centres experience. They are aside of the development and transformation processes of the contemporary city, and their inhabitants are excluded and forced to live with the phenomena of social and environmental degradation.

The decline of activities also reduces tax collection. This trend, together with the explosive growth of cities, attracts the public investment towards developing zones, accelerating the decline spiral of the historic centres (Rojas, 1999). Some functions in central areas (government, banks, and commercial areas) often continue. However, the construction of other sites in new administrative, university, commercial centres, and residential neighbourhood areas only emphasises even more the economic exclusion of the historic centres and their physical decline.

The deterioration and loss of cultural resources (monuments, building groups, sites of historic, aesthetic, ethnologic or anthropologic value) is due to a great extent to the urban sprawl; to the unplanned development of the urban infrastructure, the inadequate water provision, sewage and pluvial drainage as well as to the lack of maintenance of both buildings and infrastructure.

In many cities, residential, commercial and industrial buildings from the beginning of the twentieth century, with architectonic and historic values have been destroyed or are in danger because of urban development. Due to the high land value, many houses of interest are demolished to give rise to residential or commercial entrepreneurships. Beyond the cultural damage, these facts negatively affect the tourist activity, with the loss of potential benefits for the local communities.

Sustainable Development – 158 Policy and Urban Development – Tourism, Life Science, Management and Environment

*architectonic values must be preserved in all cases, either isolated buildings or complete urban nuclei… must be preserved when they are the expression of a previous culture or reach a general* 

We will analyse which is the material benefit, beyond the spiritual one, that preservation offers to the process of urban development and management. It is interesting to study which is the economic advantage that the public or private sector can obtain from the conservation of historic centres. In 1977, the Charter of Machu Picchu introduces for the first time the consideration of the material value underlying in the conservation of historic centres, joining the economic value to the cultural one "... *the action of preserving, restoring and recycling the historic environments and architectonic monuments must be integrated in the vital process of urban development, also because it is the only way of financing and managing this operation"* (Machu

In developing countries, the problems present characteristic features. When the residential and economic activities abandon the historic centres, the benefit resulting from the real estate market declines. As the space demand is reduced, so is cash flow, therefore sales decline and become sporadic. Besides, in many cases, the preservation regulations together with the building deterioration increase construction costs, making the restoration little competitive compared with other areas. These trends prevent the private sector from making new investments in the historic centres: investors look for opportunities outside

The presence of non-productive urban districts or of those districts that do not meet the idea of an efficient and comfortable city leads to a situation which many historic centres experience. They are aside of the development and transformation processes of the contemporary city, and their inhabitants are excluded and forced to live with the

The decline of activities also reduces tax collection. This trend, together with the explosive growth of cities, attracts the public investment towards developing zones, accelerating the decline spiral of the historic centres (Rojas, 1999). Some functions in central areas (government, banks, and commercial areas) often continue. However, the construction of other sites in new administrative, university, commercial centres, and residential neighbourhood areas only emphasises even more the economic exclusion of the historic

The deterioration and loss of cultural resources (monuments, building groups, sites of historic, aesthetic, ethnologic or anthropologic value) is due to a great extent to the urban sprawl; to the unplanned development of the urban infrastructure, the inadequate water provision, sewage and pluvial drainage as well as to the lack of maintenance of both

In many cities, residential, commercial and industrial buildings from the beginning of the twentieth century, with architectonic and historic values have been destroyed or are in danger because of urban development. Due to the high land value, many houses of interest are demolished to give rise to residential or commercial entrepreneurships. Beyond the cultural damage, these facts negatively affect the tourist activity, with the loss of potential

*interest…"* 

Picchu Chart, 1977).

this area, re-feeding the decline process.

centres and their physical decline.

buildings and infrastructure.

benefits for the local communities.

phenomena of social and environmental degradation.

In this situation, it is habitual for an important part of the low income population to live in old buildings in central historic areas, where relatively high socio-economic classes used to live. With the displacement of these inhabitants towards the suburbs, these huge houses were subdivided in order to be used by several families. However, most of these properties neither are connected to the sanitary infrastructure nor receive an adequate system of rubbish collection, that is why their deterioration and downfall rapidly increase.

In this context, strategic or sector plans for reverting this situation have appeared in many cities in Latin America since the 1990s. Rojas thinks that, in developing countries, the activities destined to preservation may undergo three stages. The first is characterised by the pressure that some cultural minorities exert for establishing some control or legislation on this matter. This brings about isolated interventions in specific monuments, generally financed by private philanthropists. Many of these buildings are destined to public use, what leads to a non-sustainable conservation: investments are made now and then due to the lack of systematic maintenance and inappropriate use.

In Latin America, some countries have reached, at least partially, the second stage, in which governments assume responsibilities in conservation. This participation from the estate, potentially positive, brings about other problems: the lack of continuity in the conservation efforts due to budget restrictions and to the volatility of public resources. The Bank for Inter American Development, which gives credits for conservation, has warned that the conservation process, as currently organised and financed, is not sustainable in the long term and represents a heavy burden in the budgets of the public sector that, also has to prioritise the problems regarding poverty in these countries (Rojas, 2001).

The trend should be progressing to a third stage, in which preservation of historic heritage becomes the responsibility of the community as a whole, including the private sector. Sustainability in the long term can be only achieved when the involved social actors jointly collaborate with this aim.

The action of the public sector allows providing the private sector with favourable conditions for its active participation in the process (Rojas, 2001). Firstly, with the provision of stability in the regulatory frame. Investors are always afraid of risks when acting in an area of unknown future. Secondly, showing the feasibility of investments in non-traditional markets is a possible means of deeply encouraging the private investors.

The strategies for modifying this trend are numerous. Firstly, the traditional way of acting is towards actions aimed at the physical improvement of the area (repairs, maintenance, building enhancement, urban infrastructure and facilities. This attitude is not directly aimed at the economic development of the inhabitants, though it may influence it. On the other hand, a plan of socio-economic action may have value for the population, but it does not act on the functional and spatial structure, on the urban shape and its decline. The best way of sustainable recovery of these areas is based on an integrated strategy of interventions, able to solve the demands of the socio-economic development and the conservation of heritage values, without disregarding the spatial identity of the sites.

Some ideas referred to the effective protection of the cultural resources in developing countries are the following:


Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 161

e. The independent period, which started on different dates depending on the specific countries but was consolidated by the late nineteenth century with the inclusion of countries in the region to the global economic framework, including the massive influx of immigrants in some countries. During this period the railway was incorporated and ports were modernised, the first urban industries and new institutions were settled. Some cities, particularly political capitals and ports initiated a sharp expansion. The establishment of new towns responded to a variety of requirements, among them the consolidation of the boundaries of the new countries, the incorporation of new territories to the productive system, the construction of new ports or the establishment of administrative state or regional capitals. Urban patterns were generally based on the

f. Over the twentieth century, the most significant process was the incorporation of former rural population to urban centres; there was an explosive growth of industrial cities and, to a lesser extent, of provincial capitals, and a decrease of population of rural

Latin American historic centres correspond generally to colonial towns, in a few cases constructed upon the remains of Pre-Columbian cities, which conserved their main urban and architectural features with no major changes throughout the nineteenth and twentieth centuries. In these cases, new developments occurred out of the boundaries of the colonial cities; in other cases instead, extensive renovation over the last two centuries prevented the historic cores from preserving their original features. In the cases where the historic centres preserved their traditional features, these areas generally presented diverse degrees of functional and physical degradation whereas those evolving cities (Sao Paulo, Buenos Aires or Santiago) changed drastically the original appearance. The "discovery" of the historic centres started ain the 1960s and restoration and conservation works have been developed since then. The most prominent Latin American historic centres are inscribed on the UNESCO World Heritage List. In 2007, 38 out of 84 Latin American World Heritage properties were historic towns or centres, a figure that represented 45.23% of the cultural

Latin American historic towns and centres bear some common features if compared with those belonging to other geo-cultural regions; at the same time there are specificities given by their history, urban and architectural features and symbolic content. At the same time, there are particular pressures and constraints. For example, the construction of major development projects, common today in many historic cities around the world, seems not to appear as a real threat, although some examples can be found in the region. However, the strong impact of tourism, social changes, inadequate maintenance of public spaces,

properties and 31.40 % of the total of World Heritage sites in the region.

trading centres were consolidated.

heritage of the previous period.

areas or villages.

systems linking the production or mining areas with the ports and on the seashore. Spanish towns were settled on the basis of strict legal regulation regarding urban and territorial layouts. The common type was based on a regular grid pattern of streets with a central plaza that constituted the civic, religious and commercial core of the town. Portuguese towns, conversely, were constructed according to more organic urban schemes, sometimes taking into account the topographical features of the setting. d. Once consolidated institutions and norms of colonial life, there was a period of about two centuries with no significant changes, with an urban scheme that would remain until the arrival of the railroad. During this stage major administrative and

ownership often enables the owners of properties with historic value to obtain credits for improving buildings and this helps the conservation of this kind of property. These strategies must have the conformity of owners, who sometimes do not want to regularise the register of their properties to avoid paying taxes.


#### **4.2 Case study: Latin American World Heritage towns**

In the context above mentioned, this chapter will refer specifically to sustainability problems caused by the development of tourist activity in urban centres and historic neighbourhoods, particularly in Latin American countries. It is a kind of heritage highly significant and valued by tourists, since it is in the old city neighbourhoods where the distinctive signs of a particular culture can be seen more clearly: the principal architectonic monuments, the public spaces with higher symbolic value and the most significant components of the immaterial heritage.

The case of historic centres in Latin American cities is apt to set an example of the many problems that are related with the triad heritage – tourism – sustainability, especially in its economic and social aspects. With regard to the origin and evolution of Latin American towns, Hardoy (1971) identifies six stages:


Sustainable Development – 160 Policy and Urban Development – Tourism, Life Science, Management and Environment


at expanding the economic basis, attracting investments and creating new jobs. - Register and protection of priority natural resources: it is necessary to identify and register historic buildings which need special protection and thus, determining how this can be carried out in a context of permanent growth or urban development. Sometimes it is not possible or desirable to preserve all buildings. Many proprietors may resist conservation regulations on a private property, unless they are compensated according to the benefits they would obtain from that land if it was liberated for new uses (apartment tower building, for instance). If the list of buildings to be preserved is excessive, it could be impossible for the Estate to face that burden and in the long term

it may lead to a deeper process of deterioration in the area (Berstein, 1994).

In the context above mentioned, this chapter will refer specifically to sustainability problems caused by the development of tourist activity in urban centres and historic neighbourhoods, particularly in Latin American countries. It is a kind of heritage highly significant and valued by tourists, since it is in the old city neighbourhoods where the distinctive signs of a particular culture can be seen more clearly: the principal architectonic monuments, the public spaces with higher symbolic value and the most significant components of the

The case of historic centres in Latin American cities is apt to set an example of the many problems that are related with the triad heritage – tourism – sustainability, especially in its economic and social aspects. With regard to the origin and evolution of Latin American

a. Pre Columbian period, in which 5% of Latin American territory was occupied by urban cultures. Even if the Americas were totally populated before the arrival of the Europeans, original cultures reached different degrees of development; the most advanced cultures were located in Meso-America (a portion of present Mexico and the Central America) and in the Andean region of South America. At the arrival of the Spaniards, some towns like Mexica-Tenochtitlan or Cusco matched or even surpassed in development and architecture many European cities of the time. In some cases,

b. Stage of Spanish foundations over the first half of the sixteenth century, based on

c. Establishment, by Spaniards and Portuguese of ports, mining towns, forts and reductions. The territorial structure was based on natural resources and on a communication system and the urban basic schemes were defined around 1580 for both Spanish and Portuguese territories. New towns were especially settled along the roads

Spanish towns were settled on the remains of pre-Hispanic ones.

regional and urban infrastructure of the pre-Columbian cultures.

**4.2 Case study: Latin American World Heritage towns** 

immaterial heritage.

towns, Hardoy (1971) identifies six stages:

regularise the register of their properties to avoid paying taxes.

ownership often enables the owners of properties with historic value to obtain credits for improving buildings and this helps the conservation of this kind of property. These strategies must have the conformity of owners, who sometimes do not want to systems linking the production or mining areas with the ports and on the seashore. Spanish towns were settled on the basis of strict legal regulation regarding urban and territorial layouts. The common type was based on a regular grid pattern of streets with a central plaza that constituted the civic, religious and commercial core of the town. Portuguese towns, conversely, were constructed according to more organic urban schemes, sometimes taking into account the topographical features of the setting.


Latin American historic centres correspond generally to colonial towns, in a few cases constructed upon the remains of Pre-Columbian cities, which conserved their main urban and architectural features with no major changes throughout the nineteenth and twentieth centuries. In these cases, new developments occurred out of the boundaries of the colonial cities; in other cases instead, extensive renovation over the last two centuries prevented the historic cores from preserving their original features. In the cases where the historic centres preserved their traditional features, these areas generally presented diverse degrees of functional and physical degradation whereas those evolving cities (Sao Paulo, Buenos Aires or Santiago) changed drastically the original appearance. The "discovery" of the historic centres started ain the 1960s and restoration and conservation works have been developed since then. The most prominent Latin American historic centres are inscribed on the UNESCO World Heritage List. In 2007, 38 out of 84 Latin American World Heritage properties were historic towns or centres, a figure that represented 45.23% of the cultural properties and 31.40 % of the total of World Heritage sites in the region.

Latin American historic towns and centres bear some common features if compared with those belonging to other geo-cultural regions; at the same time there are specificities given by their history, urban and architectural features and symbolic content. At the same time, there are particular pressures and constraints. For example, the construction of major development projects, common today in many historic cities around the world, seems not to appear as a real threat, although some examples can be found in the region. However, the strong impact of tourism, social changes, inadequate maintenance of public spaces,

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 163

heritage areas, something that produces financial benefit. In other cases, they are "pushed" by the pressure of investors or by groups having major revenues who want to buy

The phenomenon of gentrification means the replacement of typical population of a given urban neighbourhood for another of greater financial resources or more exalted social position. The truth is that this process takes place equally in urban centres around the world, though with higher recurrence in economically disadvantaged countries. The reason that causes this process lies primarily in the fact that the buildings are purchased by individuals or entities, usually affecting them to different uses of the original. Thus, it is common to find old homes converted into hotels, restaurants or shops or even maintaining the residential uses but occupied as secondary homes for short periods throughout the year. This implies that the neighbourhoods gradually lose their population, which means at the same time a crisis regarding some aspects of authenticity. In this case, although the tangible components of buildings may be in good condition, even improved with respect to their

With respect to the alteration or distortion of heritage values and message, it is necessary to consider heritage as a set of tangible assets to which values related to history, art or science are assigned. In this sense, heritage is a carrier of meanings that we try to transmit, through the conservation of the material substance, from one generation to another. A proper understanding and interpretation of such values is therefore essential to understand the true meaning of heritage, to ensure proper use and to preserve its authenticity, understood not only as the preservation of the tangible components but also the intangible ones as functions, vocations, associated traditions, etc. In this sense, a conflict often observed with the spread of mass tourism is that heritage becomes a sort of spectacle and object of consumption, without reaching the adequate transmission and understanding of its values. It may happen that while a heritage site is well preserved and its carrying capacity or limits of change are maintained at appropriate degrees, its dedication to tourism involves risks to its authenticity. This is a situation frequently observed in some heritage categories such as historic centres or urban areas. According to the current theory, authenticity is verified in several ways, taking into account tangible and intangible components; thus authenticity includes the consideration of materials, shape and design, setting, functions and vocations,

When we refer to threats to authenticity, we refer not only to damage caused on the material components of heritage but also to the risk on the intangible aspects that influence their authenticity. A typical case consists of many very well preserved historic towns or centres, both buildings and public spaces have good and proper maintenance. But excessive devotion to tourism means that the entire neighbourhood is devoted to visitors; all businesses are dedicated to the tourist, the old residences are now hotels or are destined to gastronomic uses, etc. The problem then is that while the material substance may be well preserved, this area has lost or drastically changed its meaning and its original functions, so there are aspects of authenticity that are really at risk. This aspect tends to be one of the most

properties in the prestigious historic areas.

previous state, a loss of authenticity of functions appear.

meanings and traditions associated with specific sites (ICOMOS, 1994).

complicated issues in the management structures of heritage sites.


buildings and sanitation problems, which are not serious problems elsewhere, tend to appear frequently as specific threats to the integrity, authenticity and sustainability of these towns. A characteristic cycle may be described, as follows:


Regarding the impact of tourism on historic towns and centres, it is possible to identify some indicators of what could be considered positive impact on the heritage sites and on the local community. The general idea is that tourism constitutes an opportunity for development; particular indicators are economic benefits produced by tourism, creation of jobs related to tourism, improvement of infrastructure and public spaces and opportunities for education and training. With regard to public spaces and infrastructure, World Heritage towns and urban areas are usually a target for improvement and enhancement. Usually, public spaces are well preserved and maintained; adequate urban furniture and infrastructure are provided or improved. This is an action that contributes to a general amelioration of quality of life of local population and enhances the experience of visitors. The inscription on the World Heritage List and the increase in the number of visitors constitute also an opportunity to restore historic buildings. New uses are often related to tourism. It is quite usual in Latin American towns that old one-family houses, quite difficult to continue with its original use, are dedicated to accommodation for visitors. This can be considered an opportunity in two senses; on the one hand historic buildings are restored and given a new use, generally by private investors, and, on the other , visitors may live the experience of lodging in typical historic houses, which is a means for a deeper contact with the local culture.

With regard to threats caused by unplanned or inadequately managed tourism, it is possible to summarise the situation on the basis of the following scheme (Conti, 2011):


A frequent aspect related to management or historic urban areas and its tourist use is the displacing of traditional population or depopulation of historic neighbourhoods. This situation is strongly linked to a process that can be noted equally in developed and developing countries. The inscription of an urban area on the World Heritage List implies generally improvement of public spaces, of services and infrastructure. This takes to a rise in the market values of urban land and buildings and takes almost inevitably to the replacement of population. Traditional inhabitants of many historic areas are sometimes displaced by self decision since they prefer to sell their houses and buy new ones out from heritage areas, something that produces financial benefit. In other cases, they are "pushed" by the pressure of investors or by groups having major revenues who want to buy properties in the prestigious historic areas.

The phenomenon of gentrification means the replacement of typical population of a given urban neighbourhood for another of greater financial resources or more exalted social position. The truth is that this process takes place equally in urban centres around the world, though with higher recurrence in economically disadvantaged countries. The reason that causes this process lies primarily in the fact that the buildings are purchased by individuals or entities, usually affecting them to different uses of the original. Thus, it is common to find old homes converted into hotels, restaurants or shops or even maintaining the residential uses but occupied as secondary homes for short periods throughout the year. This implies that the neighbourhoods gradually lose their population, which means at the same time a crisis regarding some aspects of authenticity. In this case, although the tangible components of buildings may be in good condition, even improved with respect to their previous state, a loss of authenticity of functions appear.


Sustainable Development – 162 Policy and Urban Development – Tourism, Life Science, Management and Environment

buildings and sanitation problems, which are not serious problems elsewhere, tend to appear frequently as specific threats to the integrity, authenticity and sustainability of




Regarding the impact of tourism on historic towns and centres, it is possible to identify some indicators of what could be considered positive impact on the heritage sites and on the local community. The general idea is that tourism constitutes an opportunity for development; particular indicators are economic benefits produced by tourism, creation of jobs related to tourism, improvement of infrastructure and public spaces and opportunities for education and training. With regard to public spaces and infrastructure, World Heritage towns and urban areas are usually a target for improvement and enhancement. Usually, public spaces are well preserved and maintained; adequate urban furniture and infrastructure are provided or improved. This is an action that contributes to a general amelioration of quality of life of local population and enhances the experience of visitors. The inscription on the World Heritage List and the increase in the number of visitors constitute also an opportunity to restore historic buildings. New uses are often related to tourism. It is quite usual in Latin American towns that old one-family houses, quite difficult to continue with its original use, are dedicated to accommodation for visitors. This can be considered an opportunity in two senses; on the one hand historic buildings are restored and given a new use, generally by private investors, and, on the other , visitors may live the experience of lodging in typical historic houses, which is a means for a deeper contact with

With regard to threats caused by unplanned or inadequately managed tourism, it is possible

A frequent aspect related to management or historic urban areas and its tourist use is the displacing of traditional population or depopulation of historic neighbourhoods. This situation is strongly linked to a process that can be noted equally in developed and developing countries. The inscription of an urban area on the World Heritage List implies generally improvement of public spaces, of services and infrastructure. This takes to a rise in the market values of urban land and buildings and takes almost inevitably to the replacement of population. Traditional inhabitants of many historic areas are sometimes displaced by self decision since they prefer to sell their houses and buy new ones out from

to summarise the situation on the basis of the following scheme (Conti, 2011):


these towns. A characteristic cycle may be described, as follows:

the social phenomenon known as "gentrification" .

people.

heritage.

the local culture.

With respect to the alteration or distortion of heritage values and message, it is necessary to consider heritage as a set of tangible assets to which values related to history, art or science are assigned. In this sense, heritage is a carrier of meanings that we try to transmit, through the conservation of the material substance, from one generation to another. A proper understanding and interpretation of such values is therefore essential to understand the true meaning of heritage, to ensure proper use and to preserve its authenticity, understood not only as the preservation of the tangible components but also the intangible ones as functions, vocations, associated traditions, etc. In this sense, a conflict often observed with the spread of mass tourism is that heritage becomes a sort of spectacle and object of consumption, without reaching the adequate transmission and understanding of its values.

It may happen that while a heritage site is well preserved and its carrying capacity or limits of change are maintained at appropriate degrees, its dedication to tourism involves risks to its authenticity. This is a situation frequently observed in some heritage categories such as historic centres or urban areas. According to the current theory, authenticity is verified in several ways, taking into account tangible and intangible components; thus authenticity includes the consideration of materials, shape and design, setting, functions and vocations, meanings and traditions associated with specific sites (ICOMOS, 1994).

When we refer to threats to authenticity, we refer not only to damage caused on the material components of heritage but also to the risk on the intangible aspects that influence their authenticity. A typical case consists of many very well preserved historic towns or centres, both buildings and public spaces have good and proper maintenance. But excessive devotion to tourism means that the entire neighbourhood is devoted to visitors; all businesses are dedicated to the tourist, the old residences are now hotels or are destined to gastronomic uses, etc. The problem then is that while the material substance may be well preserved, this area has lost or drastically changed its meaning and its original functions, so there are aspects of authenticity that are really at risk. This aspect tends to be one of the most complicated issues in the management structures of heritage sites.

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 165

most beautiful and well preserved historic centres in Latin America, since much of the

It is not strange that the historic centre became a main tourism destination in the region. A joint UNESCO-ICOMOS report of 2006 recognised that *"the historic centre has not undergone substantial physical alterations … while the use of the urban soil has deeply changed".* The impact of tourism was the main cause of these changes. Until the 1980s, there were not luxurious hotels in the historic centre; the accommodation offering was limited to hostels of lowermiddle level hotels. At the beginning of the twenty-first century, five-star hotels and conferences centres have been installed in former convents, skilfully renovated; palaces and historic houses have been restructured to house charming hotels and hostels and some residences were transformed into second houses for national and foreign tourists. The intense demand has increased the market prices, something that made convenient for

Tourism has impacted differently on diverse areas of the historic centre. In the Centro district, the core area of the historic centre where the main institutional buildings are located, some of the positive effects already mentioned above can be noticed, such as the improvement of public spaces, the provision or urban facilities and furniture or new uses for

Fig. 2. Cartagena, the Centro district. Good state of conservation of buildings and public

spaces and high impact of tourism. (Photo A. Conti)

traditional urban fabric has been preserved.

historic buildings (Fig. 2).

residents to sell their properties and to leave the walled city.

#### - Impact on traditional ways of life

Another type of impact is related to social aspects and, especially, to the relationship between the local community and visitors. Particularly when there is an economic asymmetry between them (more specifically tourism in economically disadvantaged regions), it is common that residents consider visitors as an "opportunity" to secure or increase their income. This can include the selling of typical products or the adoption of behaviours that are expected to cause impact on the visitor. It is common to find people who dress or act in a way that is not part of their daily lives; they become a part of the stereotypical image of the site and, therefore, something that the tourist expects to see. The problem is that in this way the resident community, or some of its members, are at the service of visitors' expectations; this implies another manifestation of a threat against the authenticity, in this case referred to lifestyles, habits, behaviours, etc.

Intangible heritage is fundamental not only to determine the outstanding universal value but also the authenticity of World Heritage properties. In spite of problems of depopulation and gentrification, most Latin American World Heritage towns retain a very rich intangible heritage made up by, among other components, music, gastronomy and traditions. This intangible heritage becomes also a tourism attraction and could be jeopardised if adequate safeguarding measures are not defined and implemented. It is worth asking what the limit is to safeguard traditional ways of life or social practices so that they could be preserved as authentic cultural manifestations and not as performances for visitors. What usually happens is that members of local population act in the way visitors expect them to. There is a sort of alienation of the local population in the visitor's expectations; this is one of the most important threats against authenticity.

Within the social aspects some "contradictions" appear between what could be called a positive effect on tourism and reality. When talking about tourism opportunities we have referred to the economic benefit, to the possibility of improving urban spaces and the provision of infrastructure and equipment. Often, the economic benefit is not evenly distributed among the resident community; although there is a general improvement of urban space and infrastructure, some sites are inaccessible to the residents. Many times the cost of access to cultural facilities and entertainment are fixed in terms of tourism, making them inaccessible to local people.

In order to illustrate these aspects, we will introduce two specific cases, the World Heritage properties of Cartagena de Indias, Colombia, and Colonia del Sacramento, Uruguay.

a. Cartagena de Indias

The historic centre of Cartagena de Indias and its fortresses were inscribed on the World Heritage List in 1984. The property includes the walled city and a set of fortresses located along Cartagena bay. Cartagena was one the most important South-American ports over the Spanish period; the richness of the city and the importance of its port are evident in the architectural monuments (churches, convents and private residences) and in the defence system, since the town was several times attacked by pirates. Not only was the town surrounded by a massive wall but several fortresses were erected along the bay, protecting the entrance to the port. Cartagena is considered the most impressive ensemble of military architecture constructed by the Spaniards in the Americas and, at the same time, one of the Sustainable Development – 164 Policy and Urban Development – Tourism, Life Science, Management and Environment

Another type of impact is related to social aspects and, especially, to the relationship between the local community and visitors. Particularly when there is an economic asymmetry between them (more specifically tourism in economically disadvantaged regions), it is common that residents consider visitors as an "opportunity" to secure or increase their income. This can include the selling of typical products or the adoption of behaviours that are expected to cause impact on the visitor. It is common to find people who dress or act in a way that is not part of their daily lives; they become a part of the stereotypical image of the site and, therefore, something that the tourist expects to see. The problem is that in this way the resident community, or some of its members, are at the service of visitors' expectations; this implies another manifestation of a threat against the

Intangible heritage is fundamental not only to determine the outstanding universal value but also the authenticity of World Heritage properties. In spite of problems of depopulation and gentrification, most Latin American World Heritage towns retain a very rich intangible heritage made up by, among other components, music, gastronomy and traditions. This intangible heritage becomes also a tourism attraction and could be jeopardised if adequate safeguarding measures are not defined and implemented. It is worth asking what the limit is to safeguard traditional ways of life or social practices so that they could be preserved as authentic cultural manifestations and not as performances for visitors. What usually happens is that members of local population act in the way visitors expect them to. There is a sort of alienation of the local population in the visitor's expectations; this is one of the most

Within the social aspects some "contradictions" appear between what could be called a positive effect on tourism and reality. When talking about tourism opportunities we have referred to the economic benefit, to the possibility of improving urban spaces and the provision of infrastructure and equipment. Often, the economic benefit is not evenly distributed among the resident community; although there is a general improvement of urban space and infrastructure, some sites are inaccessible to the residents. Many times the cost of access to cultural facilities and entertainment are fixed in terms of tourism, making

In order to illustrate these aspects, we will introduce two specific cases, the World Heritage

The historic centre of Cartagena de Indias and its fortresses were inscribed on the World Heritage List in 1984. The property includes the walled city and a set of fortresses located along Cartagena bay. Cartagena was one the most important South-American ports over the Spanish period; the richness of the city and the importance of its port are evident in the architectural monuments (churches, convents and private residences) and in the defence system, since the town was several times attacked by pirates. Not only was the town surrounded by a massive wall but several fortresses were erected along the bay, protecting the entrance to the port. Cartagena is considered the most impressive ensemble of military architecture constructed by the Spaniards in the Americas and, at the same time, one of the

properties of Cartagena de Indias, Colombia, and Colonia del Sacramento, Uruguay.

authenticity, in this case referred to lifestyles, habits, behaviours, etc.


important threats against authenticity.

them inaccessible to local people.

a. Cartagena de Indias

most beautiful and well preserved historic centres in Latin America, since much of the traditional urban fabric has been preserved.

It is not strange that the historic centre became a main tourism destination in the region. A joint UNESCO-ICOMOS report of 2006 recognised that *"the historic centre has not undergone substantial physical alterations … while the use of the urban soil has deeply changed".* The impact of tourism was the main cause of these changes. Until the 1980s, there were not luxurious hotels in the historic centre; the accommodation offering was limited to hostels of lowermiddle level hotels. At the beginning of the twenty-first century, five-star hotels and conferences centres have been installed in former convents, skilfully renovated; palaces and historic houses have been restructured to house charming hotels and hostels and some residences were transformed into second houses for national and foreign tourists. The intense demand has increased the market prices, something that made convenient for residents to sell their properties and to leave the walled city.

Tourism has impacted differently on diverse areas of the historic centre. In the Centro district, the core area of the historic centre where the main institutional buildings are located, some of the positive effects already mentioned above can be noticed, such as the improvement of public spaces, the provision or urban facilities and furniture or new uses for historic buildings (Fig. 2).

Fig. 2. Cartagena, the Centro district. Good state of conservation of buildings and public spaces and high impact of tourism. (Photo A. Conti)

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 167

Fig. 4. Cartagena, Getsemaní district: preservation of traditional population and social life.

Summarising, Cartagena could be taken as an example of different situations within the boundaries of the historic centre. Economic and environmental sustainability is evident in the districts where the impact of tourism is stronger, while social sustainability is at stake. Conversely, the areas preserving traditional population present deficiencies regarding their

The historic quarter of Colonia del Sacramento, Uruguay, was inscribed on the World Heritage List in 1995. The origin of the town was a village settled by Portuguese in 1680 on a peninsula by the east embankment of the Plata River, opposite of the then Spanish town of Buenos Aires. The village passed from Portugal to Spain and vice versa several times up to 1778, when it came definitively to Spanish rule. Colonia is an interesting example of merging of different urban and architectural features; although there are not impressive architectural monuments, the historic centre retains much of the typical atmosphere of a colonial town, increased by its setting. ICOMOS recognised that *"the main feature of Sacramento is however, its overall townscape, with its mix of wide main thoroughfares and large squares with smaller cobbled streets and intimate squares. The vertical scale is perfectly preserved, only the church tower and lighthouse rising above the mainly single or two-storeyed buildings"*

(Photo A. Conti)

(ICOMOS, 1994).

state of conservation and quality of life.

b. Colonia del Sacramento

This is the area which exhibits the best state of conservation of the tangible components whereas the intangible ones have changed. The process of gentrification is evident; commercial facilities are related to satisfy the demands from visitors: luxury handicraft, restaurants, bars, night clubs and travel agencies are predominant in this area. San Diego district has traditionally been a more disadvantaged neighbourhood next to the Centro area. The invasive tendency of tourism is more contained, but not less important; it is concentrated around the large hotels and some public squares, and still cohabits, with certain equilibrium, with the traditions of the residual residents. However, this equilibrium is unstable and the increment of the tourist activities could compromise it definitively (Fig. 3).

On the other hand, there are areas where the pressures of tourism are not so evident so far, where traditional local population still lives. The neighbourhood of Getsemaní is the place of residence of low income traditional population. Although the state of conservation of buildings is not as good as in the Centro district and there are some problems with infrastructure, we can still notice the traditional ways of life and uses of the public space. Authenticity is noticeable not only with regard to tangible heritage components but to intangible components as well (Fig. 4).

Fig. 3. Cartagena, San Diego district: balance between traditional life and tourism. (Photo A. Conti)

Fig. 4. Cartagena, Getsemaní district: preservation of traditional population and social life. (Photo A. Conti)

Summarising, Cartagena could be taken as an example of different situations within the boundaries of the historic centre. Economic and environmental sustainability is evident in the districts where the impact of tourism is stronger, while social sustainability is at stake. Conversely, the areas preserving traditional population present deficiencies regarding their state of conservation and quality of life.

b. Colonia del Sacramento

Sustainable Development – 166 Policy and Urban Development – Tourism, Life Science, Management and Environment

This is the area which exhibits the best state of conservation of the tangible components whereas the intangible ones have changed. The process of gentrification is evident; commercial facilities are related to satisfy the demands from visitors: luxury handicraft, restaurants, bars, night clubs and travel agencies are predominant in this area. San Diego district has traditionally been a more disadvantaged neighbourhood next to the Centro area. The invasive tendency of tourism is more contained, but not less important; it is concentrated around the large hotels and some public squares, and still cohabits, with certain equilibrium, with the traditions of the residual residents. However, this equilibrium is unstable and the increment of the tourist activities could compromise it definitively

On the other hand, there are areas where the pressures of tourism are not so evident so far, where traditional local population still lives. The neighbourhood of Getsemaní is the place of residence of low income traditional population. Although the state of conservation of buildings is not as good as in the Centro district and there are some problems with infrastructure, we can still notice the traditional ways of life and uses of the public space. Authenticity is noticeable not only with regard to tangible heritage components but to

Fig. 3. Cartagena, San Diego district: balance between traditional life and tourism. (Photo A.

(Fig. 3).

Conti)

intangible components as well (Fig. 4).

The historic quarter of Colonia del Sacramento, Uruguay, was inscribed on the World Heritage List in 1995. The origin of the town was a village settled by Portuguese in 1680 on a peninsula by the east embankment of the Plata River, opposite of the then Spanish town of Buenos Aires. The village passed from Portugal to Spain and vice versa several times up to 1778, when it came definitively to Spanish rule. Colonia is an interesting example of merging of different urban and architectural features; although there are not impressive architectural monuments, the historic centre retains much of the typical atmosphere of a colonial town, increased by its setting. ICOMOS recognised that *"the main feature of Sacramento is however, its overall townscape, with its mix of wide main thoroughfares and large squares with smaller cobbled streets and intimate squares. The vertical scale is perfectly preserved, only the church tower and lighthouse rising above the mainly single or two-storeyed buildings"* (ICOMOS, 1994).

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 169

generally been bought by people who use them as second residences and many buildings have been given new uses such as shops, accommodation facilities, restaurants or cafés

Fig. 6. Colonia, the impact of tourism on public space. (Photo A. Conti)

facilities and often spend only a few hours in the site.

**5. Conclusion** 

As in other historic centres, whilst the tangible components exhibit a good state of conservation, the authenticity of intangible components is especially at risk because of the impact of tourism. In this case, moreover, the proximity with Buenos Aires results in a oneday excursion is the most typical way of visiting the town, with an average of 3000 visitors per day along the whole year (Assunçao, 2008); most visitors do not use the accommodation

As stated in the Brundtland report, sustainability includes three dimensions: economic, social and environmental. These three aspects were considered by the World Tourism Organization (WTO) to review the definition of sustainable tourism in 2005, stating that an adequate equilibrium should be established among the three. Although indicators to measure sustainable development have been used over the last twenty years and that WTO has been promoting the use of sustainable tourism indicators since the early 1990s, the

(Fig. 6).

Fig. 5. Colonia: good state of public spaces and historic buildings. (Photo A. Conti)

Even before the inscription on the World Heritage List, the historic centre of Colonia had become an important tourist destination, the second one in importance in the country (Assunçao, 2002). It is worth noting that the town is located some two hours by car from Montevideo, the country's capital city, and fifty minutes by ship from Buenos Aires, which comprises some ten million inhabitants within its metropolitan area. The process of gentrification started much before the inscription of the property on the World Heritage List and has continued ever since. The charming atmosphere of the historic centre made that people form Montevideo or Buenos Aires used to buy residences as secondary houses, a process that took to the progressive depopulation of the historic centre and to the rise of prices of land and buildings within the area. In 2002, Uruguayan authorities reported that the price per square metre was more expensive in Colonia than in Punta del Este, the wellknown international Uruguayan beach resort. According to Venturini (2008: 11) the population of the historic quarter was some 300 inhabitants in 2008. Public spaces and architectural heritage are very well preserved in Colonia. Over the last forty years, the Honorary Council, the body in charge of the management, and the local government has made significant investment in restoration, conservation and maintenance (Fig. 5).

The impact of tourism on the public space is easily noticeable; some streets have been closed to motor traffic and have become outdoors cafés or restaurants. Historic houses have generally been bought by people who use them as second residences and many buildings have been given new uses such as shops, accommodation facilities, restaurants or cafés (Fig. 6).

Fig. 6. Colonia, the impact of tourism on public space. (Photo A. Conti)

As in other historic centres, whilst the tangible components exhibit a good state of conservation, the authenticity of intangible components is especially at risk because of the impact of tourism. In this case, moreover, the proximity with Buenos Aires results in a oneday excursion is the most typical way of visiting the town, with an average of 3000 visitors per day along the whole year (Assunçao, 2008); most visitors do not use the accommodation facilities and often spend only a few hours in the site.

#### **5. Conclusion**

Sustainable Development – 168 Policy and Urban Development – Tourism, Life Science, Management and Environment

Fig. 5. Colonia: good state of public spaces and historic buildings. (Photo A. Conti)

made significant investment in restoration, conservation and maintenance (Fig. 5).

The impact of tourism on the public space is easily noticeable; some streets have been closed to motor traffic and have become outdoors cafés or restaurants. Historic houses have

Even before the inscription on the World Heritage List, the historic centre of Colonia had become an important tourist destination, the second one in importance in the country (Assunçao, 2002). It is worth noting that the town is located some two hours by car from Montevideo, the country's capital city, and fifty minutes by ship from Buenos Aires, which comprises some ten million inhabitants within its metropolitan area. The process of gentrification started much before the inscription of the property on the World Heritage List and has continued ever since. The charming atmosphere of the historic centre made that people form Montevideo or Buenos Aires used to buy residences as secondary houses, a process that took to the progressive depopulation of the historic centre and to the rise of prices of land and buildings within the area. In 2002, Uruguayan authorities reported that the price per square metre was more expensive in Colonia than in Punta del Este, the wellknown international Uruguayan beach resort. According to Venturini (2008: 11) the population of the historic quarter was some 300 inhabitants in 2008. Public spaces and architectural heritage are very well preserved in Colonia. Over the last forty years, the Honorary Council, the body in charge of the management, and the local government has

As stated in the Brundtland report, sustainability includes three dimensions: economic, social and environmental. These three aspects were considered by the World Tourism Organization (WTO) to review the definition of sustainable tourism in 2005, stating that an adequate equilibrium should be established among the three. Although indicators to measure sustainable development have been used over the last twenty years and that WTO has been promoting the use of sustainable tourism indicators since the early 1990s, the

Built Heritage and Sustainable Tourism: Conceptual, Economic and Social Variables 171

b. Public investment is mainly oriented to areas or sectors especially destined for visitors rather than for locals, while private investment is focused on projects that ensure

c. There is not a necessary relationship between interventions of restoration or enhancement of built heritage, especially historic buildings, and preservation of the authenticity of the sites. The process of gentrification is a sign of loss of authenticity regarding intangible attributes such as traditional functions or social practices. Nevertheless, this situation does not seem to be a problem for visitors, because they feel attracted mainly by the tangible attributes of historic centres rather than for the real life

d. Sustainability based on economic aspects seems to be evident in both cases, since they can be considered successful from a point of view of generating revenues. The good state of conservation of public spaces and historic buildings allows referring to environmental sustainability as well. What seems to be at stake is social sustainability, on account of the situations explained below, i.e. gentrification, difficulties for local population to access to the facilities especially thought for visitors or acceptance by

These situations take to rethink how the tourism use of built heritage should be planned and implemented in order to ensure sustainability based on the three above mentioned aspects. Llorenç Prats (2003) challenges the idea that heritage plus tourism necessarily implies development; he proposes that the answer to the question should be "it depends". Prats proposes three alternatives: a strict preservation and a non-expensive presentation of heritage; considering human resources as a significant heritage component (good technicians and low budget) and, finally, considering heritage as an integral instrument for local planning, not a simple instrument but the axis for local planning. This integration among heritage goods, human resources and proper planning could be the clue for a

Amarilla, B. (2010). Patrimonio cultural construido ¿Valorar lo invaluable? In: *Patrimonio y* 

Assunçao, F. (2002). *Estado de conservación de Bienes Específicos del Patrimonio Mundial.* 

Berstein, J. (1994). *Land use considerations in urban environmental management.* 

*desarrollo local en el territorio bonaerense: el caso Chascomús.* Ed. by LINTA/CIC, La

*Barrio Histórico de Colonia del Sacramento.* Periodic report on the implementation of the World Heritage Convention in Latin America and the Caribbean.

Urban Management Programme, The World Bank, Washington, D.C. ISBN 0-8213-

residents of the changes of use of urban land in favour of tourism uses.

successful relationship between built heritage and sustainable tourism.

Plata, pp. 27-35. ISBN 978-987-1227-06-8.

facilities are practically inaccessible for local population.

revenues.

**6. References** 

Unpublished.

2723-2.

of local populations.

are enjoyed by both locals and visitors but some commercial, cultural or entertainment

application of systems of indicators to tourism is more recent and still in a tentative face (Rivas García and Magadán Díaz, 2007). There is no a unique methodological approach for the definition of indicators of sustainable tourism (Blancs Peral et al, 2010); the definition and selection of indicators will depend on specific situations. The WTO has developed a system of core and supplementary indicators; among the former, there are several related to physical and social aspects: social impact (ratio of tourists to locals), developing control (existence of environmental review procedure of formal controls over development of site and use densities), planning process (existence of organized regional plan for tourist destination region), consumer satisfaction (level of satisfaction by visitors), local satisfaction (level of satisfaction by locals) and tourism contribution to local economy (proportion of total economic activity generated by tourism only). Among the supplementary indicators to be used for urban environments it is worth mentioning site degradation, restoration costs, levels of pollutants affecting site and measures of behavior disruptive to site (OMT, 1995).

A sustainable city is that which has the capacity of surviving and adapting to processes of changes, and at the same time, providing an environment quality related to settlement patterns and contexts throughout different times. The urban development needs to pay more attention to issues such as durability, the rational use of energy, pollution, natural and cultural heritage, resource conservation and biodiversity (Marat Mendes, 1998).

Two of the most important aspects for an adequate approach to urban conservation are the commitment and participation by local inhabitants in the process. Heritage conservation must be dealt not only by governments but also by all the population. It is no longer a public initiative but a community project (Bonnette, 2001).

As regards the cities in the developing world, and as consequence of the serious social and environmental problems, conservation of cultural heritage is not often seen as a priority. However, it must be taken into account that the destruction is generally irreversible. Therefore, their value and the information they contain is lost forever (Berstein, 1994).

Finally, it is observed that in both developed and developing countries, the tourist activity is growing, that is why it is urgently needed to implement practical measures destined to achieve the "sustainable area" which was previously mentioned, in order to balance the increase of visitors with their negative impacts on the natural and cultural heritage. If these limits are crossed, the opposite expected effects may be reached: deterioration and destruction of the involved heritage, by non-controlled visits that that *fragile matter*, as Torsello says, is not in conditions to bear (Torsello, 1998).

With regard to the items discussed in this paper, it is clear that built heritage has become a main tourist attraction. It is perceived by visitors as a testimony of the identity and attractiveness of the place and by stakeholders and residents as a source for revenue and for developing the tourism system. The presented study cases allow defining some conclusions regarding the relationships between built heritage and sustainable tourism:

a. In both cases, it is evident that tourism has become a source of revenues and an opportunity for local economy. Nevertheless, it is not evident how these revenues are distributed among local population. Improvement and enhancement of public spaces are enjoyed by both locals and visitors but some commercial, cultural or entertainment facilities are practically inaccessible for local population.


These situations take to rethink how the tourism use of built heritage should be planned and implemented in order to ensure sustainability based on the three above mentioned aspects. Llorenç Prats (2003) challenges the idea that heritage plus tourism necessarily implies development; he proposes that the answer to the question should be "it depends". Prats proposes three alternatives: a strict preservation and a non-expensive presentation of heritage; considering human resources as a significant heritage component (good technicians and low budget) and, finally, considering heritage as an integral instrument for local planning, not a simple instrument but the axis for local planning. This integration among heritage goods, human resources and proper planning could be the clue for a successful relationship between built heritage and sustainable tourism.

#### **6. References**

Sustainable Development – 170 Policy and Urban Development – Tourism, Life Science, Management and Environment

application of systems of indicators to tourism is more recent and still in a tentative face (Rivas García and Magadán Díaz, 2007). There is no a unique methodological approach for the definition of indicators of sustainable tourism (Blancs Peral et al, 2010); the definition and selection of indicators will depend on specific situations. The WTO has developed a system of core and supplementary indicators; among the former, there are several related to physical and social aspects: social impact (ratio of tourists to locals), developing control (existence of environmental review procedure of formal controls over development of site and use densities), planning process (existence of organized regional plan for tourist destination region), consumer satisfaction (level of satisfaction by visitors), local satisfaction (level of satisfaction by locals) and tourism contribution to local economy (proportion of total economic activity generated by tourism only). Among the supplementary indicators to be used for urban environments it is worth mentioning site degradation, restoration costs, levels of pollutants affecting site and measures of behavior disruptive to site (OMT, 1995).

A sustainable city is that which has the capacity of surviving and adapting to processes of changes, and at the same time, providing an environment quality related to settlement patterns and contexts throughout different times. The urban development needs to pay more attention to issues such as durability, the rational use of energy, pollution, natural and

Two of the most important aspects for an adequate approach to urban conservation are the commitment and participation by local inhabitants in the process. Heritage conservation must be dealt not only by governments but also by all the population. It is no longer a public

As regards the cities in the developing world, and as consequence of the serious social and environmental problems, conservation of cultural heritage is not often seen as a priority. However, it must be taken into account that the destruction is generally irreversible. Therefore, their value and the information they contain is lost forever (Berstein, 1994).

Finally, it is observed that in both developed and developing countries, the tourist activity is growing, that is why it is urgently needed to implement practical measures destined to achieve the "sustainable area" which was previously mentioned, in order to balance the increase of visitors with their negative impacts on the natural and cultural heritage. If these limits are crossed, the opposite expected effects may be reached: deterioration and destruction of the involved heritage, by non-controlled visits that that *fragile matter*, as

With regard to the items discussed in this paper, it is clear that built heritage has become a main tourist attraction. It is perceived by visitors as a testimony of the identity and attractiveness of the place and by stakeholders and residents as a source for revenue and for developing the tourism system. The presented study cases allow defining some conclusions

a. In both cases, it is evident that tourism has become a source of revenues and an opportunity for local economy. Nevertheless, it is not evident how these revenues are distributed among local population. Improvement and enhancement of public spaces

regarding the relationships between built heritage and sustainable tourism:

cultural heritage, resource conservation and biodiversity (Marat Mendes, 1998).

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Torsello says, is not in conditions to bear (Torsello, 1998).


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**Part 3** 

**Social Sustainability and Life Science** 

