A model approach to the development of small tourist ship operators in the Republic of Croatia.

Munitic, Ante ; Viducic, Vinko ; Proloscic, Anita 等

Abstract: This paper examines the modelling of the development of small tourist ship operation. Based on the evaluation of development factors, their quantifications have been given. The research has provided direct growth rates of a new model for the development of small ship operators who offer cruising and one-day trips in the Republic of Croatia through the period of 2006 - 2015. This model contributes to the multi-disciplinary research of the development of small ship operators engaged in cruising and one-day trips in Croatia, and there is a possibility of its practical implementation. Key words: Small ship operators, model, development, tourism, berths, shipbuilding

1. INTRODUCTION

Small businesses of ship operators, owners of motor boats offering cruising and trips, represent a segment of nautical tourism in Croatia that has remained out of scientific and professional focus so far. However, the development of these businesses imposes the need to examine their specific features as well as the limits of their development.

The hypothesis of this paper is: With scientific insights into sustainable development of small ship operators engaged in cruising and one-day trips in Croatia, it is possible to suggest a new model for the development of small ship operators engaged in cruising and one-day trips in Croatia by 2015.

Nautical tourism is an important segment of Croatia's tourist offer (Gracan, 2002). The market of nautical tourism should be explored in a strategic way, and integrations in nautical and associated activities should be encouraged (Dulcic, 2002). Nautical tourism offers bright prospects in small ship operation (Samanovic, 2002). Growth matrix may be used to predict values of economic variables (Stojanovic, 1988). Prior to designing a new model for the development of small ship operators engaged in cruising and one-day trips in Croatia until 2015, its most significant variables should be determined. Based on the theoretical analysis of the model's key variables, their quantification for the year of 2006 (on the scale from 0 to 100) will be made. At the same time we can follow the changes in the variable growth intensity as well as their structural relations by showing the direct and indirect growth rates.

2. FEATURES OF SMALL SHIP OPERATION ENGAGED IN CRUISING AND ONE-DAY TRIPS

Prior to designing a new model of the development of small ship operation in Croatia until 2015, we need to determine the most significant variables of the model: fleet, financing the shipbuilding, shipyards, berths, human resources, management, price of fuel, disposal of waste, water connection and power connection. Then we can carry out the evaluation and the quantification of the variables.

1. Fleet: In Croatia there are approximately 250 small ships that offer cruising and one-day trips. Most of their owners are members of Croatian Association of Private Ship Operators (Hrvatska udruga privatnih brodara, HUPB, 2007). The average length of a small tourist boat is 16-35 m, and the engine power is 375 HP. The boats are 70 years old on the average, some of them being more than 140 years old, but there are many brand new boats as well. They should continue to upgrade toward the de luxe category in order to appeal to a wealthier clientele. The quantified value of the variable "Fleet" for the year of 2006 is: 40.

2. Financing the shipbuilding: A new small normally equipped tourist boat costs 1.500.000,00 [euro]. The main problem of small private ship operators is the shipbuilding and its financing. The Croatian government has designed the project of co-financing small tourist boats which will help the preservation of Croatian traditional sailing boats (HUPB, 2007). The quantified value of the variable "Financing the shipbuilding" for the year of 2006 is: 30.

3. Shipyards: There are many shipyards building these types of vessels. In order to preserve the authenticity of Croatian nautical tourism, it is necessary to renew and develop the construction of the traditional wooden sailing boats (HUPB, 2007). The quantified value of the variable "Shipyards" for the year of 2006 is: 50.

4. Berths: Small ship operators cope with the lack of berths in many Croatian ports. The government's decision to pass the regulations for the implementation and amendments of the Act on Maritime Estate and Ports, defining berth areas for small operators in every port, would be the solution. The quantified value of the variable "Berths" for 2006 is: 20.

5. Human resources: A small tourist boat employs 4,5 persons on the average so that 250 boats make a crew of 9025 people. As this is a traditionally family business, the crews mainly consist of family members. Maritime professionals educated in Croatia are recognized worldwide. The quantified value of the variable "Human resources" for 2006 is: 50.

6. Management: Small tourist ship operators are engaged in nautical tourism along the entire Croatian coast. 60% of them organise one-day trips, whereas 40% of the boats are engaged in several-days cruising. The average booking of cruisers is 87% during the season (100% in July and August, and 60-70% in May, June, September and October). The average price per guest per day is 50 [euro] generating the ship operators' revenue of 15.2 million [euro]. There are approximately 150 boats for one-day trips with carrying capacity of 100 guests on the average. The usual one-day trip costs 20 [euro] making the overall annual revenue of 18.9 million [euro] for these ship operators, and, together with the revenue of cruisers, amounting to 34.1 million [euro] per annum. The navigating season should be stretched beyond the limits of the tourist season, which is feasible with larger boats with heated rooms and more indoor space for guests. The quantified value of the variable "Management" for the year of 2006 is: 60.

7. Price of fuel: Croatian tourist ship operators are the only ones in the Mediterranean who buy fuel at a price that includes charges for the construction of roads and motorways which is untenable. The quantified value of the variable "Price of fuel" for the year of 2006 is: 30.

8. Disposal of waste from the boats: Small tourist boats have difficulties with the disposal of waste. The quantified value of the variable "Disposal of waste" for the year of 2006 is: 20.

9. Water connection: Croatian ports often lack water connections for small tourist boats. The quantified value of the variable "Water connection" for the year of 2006 is: 20.

10. Power connection: Croatian ports often lack power connections for small tourist boats. The quantified value for the variable "Power connection" for the year of 2006 is: 30.

3. DESIGNING A NEW MODEL FOR THE DEVELOPMENT OF SMALL SHIP OPERATORS

The quantification of the model (based on growth matrix) for the development of small ship operators arises from the qualitative researches, by converting the qualitative values of the chosen variables of the model into numeric form using the scale from 1 to 100 (Table 1). The growth matrix of the model allows to determine the share of the variables in the implementation of the development of small ship operators.

Accordingly, the quantified values of the variables for 2006 have been inserted in the model. After that, we added their expected values: for the year of 2010, (when Croatia is expected to become EU member country), and for the year of 2015 (by when Croatia will be able to develop all elements of the suggested model up to 70-100% of the standards of the EU member countries with highly developed nautical tourism). The research has provided direct growth rates (diagonal values): Table 2 and indirect growth rates of the new model for the development of small ship operators engaged in cruising and one-day trips in Croatia by 2015. Indirect growth rates will not be analysed in this paper because of limited space. Based on the comparison of the growth value of the chosen variables (Table 1) and the direct growth rates (table 2), it is obvious that the values of the variables are higher at the direct growth rates of the model for the development of small tourist ship operators due to the impact of the remaining nine variables on each and every variable. Thus the basic hypothesis of this paper has been proven by the direct growth rates.

4. CONCLUSION

The research has provided the direct growth rates of the key factors for the development of small ship operators engaged in cruising and one-day trips in the Republic of Croatia through the period of 2006 - 2015. The fundamental hypothesis of this paper has been proven through the direct growth rates of the previously set variables of the model. This model contributes to the multi-disciplinary research of the development of small ship operators and there is a possibility of its practical implementation. By applying this model, the growth rates of the set variables, based on their synergic relationship, can be anticipated much more accurately than by calculating their single growths without the interdependence taken into account. It should be pointed out that the anticipated direct growth rates of this model for the development of small tourist ship operators depend on the impact of a number of directly or indirectly related factors on the chosen 10 variables of the model.

5. REFERENCES

Corak, S., Marusic, (2005). Stavovi i potrosnja turista u hrvatskoj--Tomas 2004, (Atitudes and Consumption of Tourist in Croatia) Zagreb: Institut za turizam i MMPTR.

Dulcic, A. (2002). Nauticki turizam (Nautical Tourism). Split: Ekokon.

Hrvatski hidrografski institut (2006): Studija razvoja nautickog turizma RH, (Development of Nautical Tourism) Split.

Gracan, D. (2002). Znacaj nautickog turizma u strategiji razvoja hrvatskog turizma. (Importance of Nautical Tourism in Croatia), Zbornik radova Pravnog fakulteta u Splitu, br. 39, str. 458 - 459.

Kovacevic, M. (2003). Razvoj nautickih luka u funkciji odrzivog razvoja nautickog turizma. (The Role of Development of Nautical Ports in Sustainable Development of Nautical Tourism) Pomorski zbornik, br. 1, str. 145-146.

Munitic, A., Viducic, V., Viducic, Lj. (2006): "Sustainable Development of Island Tourism: Case of Croatia", In: Intelligent Manufacturing & Automation: Focus on Mechatronics & Robotics--17th International DAAAM Symposium, 8-11th November 2006, str. 259-260.

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Samanovic, J. (2002). Nauticki turizam i management marina (Nautical Tourism and Management of Marinas). Split: Visoka pomorska skola u Splitu.

Table 1. Model for the development of small ship operators

 Inputs [y.sub.it] Growth

Variables of the model 2006 2010 2015 2015/06

1 Fleet 40 50 70 30
2 Financing shipbuilding 30 50 70 40
3 Shipyards 50 55 65 15
4 Berths 20 40 60 40
5 Human resources 50 60 80 30
6 Management 60 70 90 30
7 Price of fuel 30 100 100 70
8 Disposal of waste 20 50 80 60
9 Water connection 20 45 70 50
10 Power connection 30 60 90 60

Table 2. Direct growth rates of the model's variables (%)

V. 1 2 3 4 5 6 7 8 9 10

1 43 43 46 50 38 33 30 38 43 33
2 57 57 62 67 50 44 40 50 57 44
3 21 21 23 25 19 17 15 19 21 17
4 57 57 62 67 50 44 40 50 57 44
5 43 43 46 50 38 33 30 38 43 33
6 43 43 46 50 38 33 30 38 43 33
7 100 100 108 117 88 78 70 88 100 78
8 86 86 92 100 75 63 60 75 86 63
9 71 71 77 83 63 56 50 63 71 56
10 86 86 92 100 75 63 60 75 86 63