FACTOR ANALYSIS OF THE TOURISM SECTOR IN THE ADRIATIC-IONIAN INITIATIVE COUNTRIES
DOI:
https://doi.org/10.63356/ace.2025.001Keywords:
factor analysis, Adriatic-Ionian Initiative, tourism, economic growthAbstract
Tourism represents a key segment of economic development in the countries of the Adriatic-Ionian Initiative (AII), contributing to the gross domestic product (GDP) and influencing employment, investments, and the trade balance of the region. This analysis examines the trends of tourism creation and diversion in eight AII countries-Albania, Bosnia and Herzegovina, Croatia, Greece, Italy, Montenegro, Serbia, and Slovenia-over the period from 1995 to 2024.This paper employs a multivariate approach to identify key factors that shape the competitiveness of destinations and contribute to the stability of the tourism sector. The study considers the impact of infrastructure investments, political stability, macroeconomic indicators, government policies on tourism subsidies, as well as the effects of pandemics and global economic crises on tourism flows.
The results indicate that Croatia, Greece, and Montenegro are the leaders in the tourism industry, with tourism accounting for more than 10% of GDP. Albania and Slovenia show stable growth, whereas Italy, despite being an economic powerhouse, has a lower tourism share compared to its industrial and technological sectors. Bosnia and Herzegovina and Serbia face challenges in attracting foreign tourists due to infrastructural constraints and insufficient promotion.
The study’s conclusions emphasize the importance of sustainable tourism development strategies, increased investments, and regional cooperation to mitigate the effects of seasonality and enhance the sector’s resilience to global economic changes.
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