10%

“We have to push through this year to survive.”

September 14^th, 2020

With its beautiful and untouched nature, rivers, lakes and mountains, Bosnia and Herzegovina holds tremendous potential for tourism. Until recently, this potential remained largely unfulfilled, mainly from a lack of strategic investment as the country struggled to shed its image as a post-war country.

The country has struggled with high unemployment for 25 years, especially among young people. The consequences of the past war, complex administrative structures, the disappearance of dozens of large companies and thousands of jobs continue to impede economic recovery. Small businesses are seen as solutions for improving the quality of life and reversing the alarming ‘brain drain’ of well-qualified young people going abroad in search of opportunities.

“We have to push through this year to survive.”

UNDP’s ambitious 2,000 kilometre long Via Dinarica route, which connects seven countries and territories, is based on the idea that economic development and protection of the natural environment can and should go hand in hand. The route has featured in National Geographic Travel, Vogue and other international magazines, and successfully placed the focus on Bosnia and Herzegovina as an undiscovered and appealing destination. Investment in tourism increased, and families in more far flung areas embraced the prospect of earning additional income by opening up new destinations.

In recent years, tourism has been recognized as one of the best ways to stimulate the economy, with potential to development especially to remote rural areas.

Slavojka Puhalo’s family have a business in a remote area of Kalinovik, now a well-known site on Via Dinarica, and justly famous for its delicious food, authentic experience and warm and generous hospitality. Slavojka started her bed and breakfast in 2015 and it soon became the most important source of income for her family, hosting visitors from around the world.

Then came the coronavirus pandemic. As the health crisis turned into an economic one, their combined effect is set to leave deep scars across society.

Waking up in a less travelled world

Travel came to a halt, making tourism one of the hardest hit economic sectors globally. Between January and June 2020, the number of international tourists in Bosnia and Herzegovina dropped by 71 percent, compared to same period last year, at the same time the number of overnight stays by domestic tourists halved.

Thousands of jobs are at stake in Bosnia and Herzegovina and the entire region faces an economic crisis of unprecedented scale, with income from tourism dropping by close to 80 percent. What took a decade to develop has been almost completely shattered by five months of travel restrictions and pandemic fears. Families that invested their life savings to welcome tourists now fear they will lose everything.

Slobodan Brkić, who transformed a property on the Via Dinarica route, hopes that his business can survive. “Until the COVID-19 pandemic, tourism was a branch of the economy with constant growth,” he says. “We have to push through this year to survive. The problem will be after the summer, when not enough is earned to cover the winter expenses. We continue to work even though there is almost no income, no tourists.”

With international partners, UNDP has adapted existing programmes and launched a series of new ones aimed at softening the impact of the crisis on the most vulnerable. Tourism was targeted as one of the key areas of economic recovery, with a specific aim to attract domestic tourists.

Via Dinarica offers visitors the opportunity to spend their free time in a healthy environment where it is possible to maintain physical distance and at the same time visit interesting natural, cultural, and historical tourism sites.

Through the project, UNDP partnered with 20 municipalities and cities, investing US$1 million in tourism and infrastructural with the support of the United States Agency for International Development and the Agency for Development Cooperation of the Republic of Italy.

But it has to adapt to the new reality of tourism and the circumstances imposed by the COVID-19 pandemic.

The social media campaign ‘Via Dinarica Will Wait for You’ was launched in April to keep the interest of past and future visitors.

Adapting part of an ongoing economic and environmental programme, UNDP in partnership with the Swiss Government and the City of Bihać launched domestic tourist voucher subsidies. Each one is worth US$120, which is a discount on accommodation payment in Bihać.

Strong emphasis is placed on digital marketing campaigns and online sales platforms to attract domestic tourists. A week after its release all the ‘Rest in BiHać’ vouchers had sold out.

These immediate actions will be followed by grants to farmers, craftspeople and artisans along Via Dinarica. UNDP is providing technical assistance to help Via Dinarica providers adapt their businesses, maintaining the liquidity of operations, and adjusting their premises and services to the new epidemiological and health safety requirements in line with the best international practices.

Slavojka, is now welcoming domestic guests only, and hopes to host many more in the future.

Since the beginning of the pandemic, UNDP and the relevant ministries in Bosnia and Herzegovina have been discussing the pandemic consequences to tourism sector. UNDP is advising the government on an appropriate response, one that is more resilient, digital, and green job-oriented.