Competitiveness of Romanian Tourism in The Age of Globalization
Competitiveness of Romanian Tourism in The Age of Globalization
Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
Abstract
Competitiveness issue is more present than ever, and must be approached at micro and macro -economic
level, as at present, unfortunately, there is a lack of competitiveness of the Romanian products/ services in the internal
and external market and consequently of the national economy.
Competitiveness suggests certainty, efficiency, quality, high productivity, adaptability, success, modern
management, superior products, low costs. A company’s competitive force resides in competitive advantages and
distinctive capacities that it possesses in relation with other competitive companies. To consider a company as
competitive it is necessary to accomplish a compelling analysis of that company and of its activity background.
Key words: competitiveness, romanian tourism, globalization, international standards, lasting development.
INTRODUCTION
As a natural condition, competition stands at the basis of selection. The same thing
happens in the economic environment, where it generates progress, being only a game with winners
and losers, in competitors’ perspective. Beneficiaries (buyers, consumers) have only to win as a
result of competition. The natural environment is the solely affected by competition’s loyal or
disloyal character, the effects being positive or negative.
If, micro-economically speaking, competitiveness is generally defined as being the
capacity of a micro-economic structure (unity, company, etc.) to gain a market segment or to defend
(maintain) it, then macro – economically speaking, competition can be defined as being the capacity
of a macro-economic structure to gain or to defend market fragments both at the exterior and at the
interior. The validity of this affirmation is supported by the fact that this competitiveness is
generated at the micro level, but it is supported and reinforced at the macro level.
In the article “Create wealth, create competitiveness” Mark T. McCord defines
competitiveness as being “the creation of wealth”. He shows, speaking of the competitiveness in
different countries on the globe, that, “the creation of wealth and accordingly competitiveness is
concentrated on the use of human, financial and educa tional resources as to ensure and maintain a
strong foundation on which economics can flourish”. In other words, a rich country cannot
automatically be considered competitive, but the one which created its wealth through work, talent
and organization, a country that possesses a productive and creative potential that should make it
independent from material resources.
The 21st century enterprises are developing their activity in an internal and external
competition environment extremely powerful and dynamic.
Confrontation on different markets, as a result of globalization, is especially harsh and
competition must be regarded at its real dimensions, without having a too optimistic vision, as only
that way one can take all necessary measures to reassure the sec urity and development of the
companies, regardless their sector of activity.
The Annals of The "Ştefan cel Mare" U niversity Suceava. Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
The actual context, marked by the globalization of the phenomena and the more and more
wide recognition of the interdependencies, has imposed new game rules: the prosperity of the
nations involves competitiveness on the international markets and that of the enterprises involves
integration in the chains of the world values.
Accordingly, the issue of competitivenes s has become an ardent theme at the level of each
economic actor, beginning with that of economic regions and continuing with that of any
organization. At the same time, it is also acknowledged an evolution of competitiveness’ concept in
the sense of passage from static competitiveness, where the competitive advantage was given by the
endowment with technical factors, to dynamic competitiveness, whose driving factors are: technical
progress, income growth and modern management methods, that made the competi tive advantage
overcome the economic dimension: the increase of the financial power and the productivity of the
country, education, certainty, the quality of life, all these being components of the concept.
As for a company’s competitiveness, this represen ts the company’s capacity to win under
the conditions of competition on the internal and external market. It is connected to the procurance
of goods and services, to the development of some commercial or financial operations, high quality
services and low costs compared to competitors, and that provides access, maintenance and
consolidation on a certain market, in relation to other similar products and services. Under the
conditions of a strong competition on a market, the insurance of the competitiveness r epresents a
primary strategic objective, being a fundamental notion to the strategy and strategic analysis. One
cannot reach a competitive activity without an appropriate strategy that involves changes in
structures, activities and management.
In 1954, Peter Drucker, one of the important classics of the management, a true pioneer in
discovering new trends and especially the actual economic openings, underlined the special
importance of a company’s strategy, pointing out that this gives the answer to two que stions: “What
does the business consists of?” and “Which should be the company’s object of activity?” Then
followed other approaches belonging to some famous specialists in management, and Michael
Porter is considered by all probabilities, currently the wo rld specialist in strategies. Using the term
generic strategy, Porter showed that this consists of “the specificity of fundamental approach for the
achievement of the competitive advantage pursued by the company, which provides the context for
the actions to do in each functional domain”.
Regardless the proportion and the object of activity of the firms, their competitiveness has
its origins in the quality of the strategies they adopt and apply. Romanian specialists in management
recognize as definition of strategy “the assembly of major long term objectives of the company,
primary achievement modalities, together with the allocated resources, in order to obtain the
adequate competitive advantage to the mission of the firm”. The achievement of the competitiv e
advantage regarding essentially the cost and the quality of the product represents the central
purpose in the elaboration of the strategy and the most important criterium for the evaluation of its
quality. One strategy that does not aim and ensure the ac hievement of the competitive advantage is
not useful for that company.
Without any doubt, the insurance of the competitiveness at the level of any company must
represent a major challenge for managers. But, in order to reach a certain level and after that to
increase competitiveness, the manager and his team must keep in mind the fact that the value and
the appliance of the strategies do not represent a purpose by itself, but it represents a major
managerial instrument for the specialization of the manageme nt and the enhancement of the
company’s performances.
The integration in the competition environment represents one of the most difficult issues a
company is confronted with. The foundation of the management on a compelling strategy brings
about the facilitation and the amplification of the effectiveness of a company’s integration in the
complex and dynamic competition environment it is placed in.
The Annals of The "Ştefan cel Mare" U niversity Suceava. Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
The competitive advantage within a sector can be highly increased through some
interrelations manifested betwee n the economic agents who compete in related sectors, if those
interrelations can be achieved. Internal competition has positive results in achieving and increasing
the competitive advantages.
The modern analysis of the competitiveness and of the competiti ve advantage, considered
as the necessary alternative to the theory of the compared advantage of ricardian inspiration, is
submitted to the same economic categories of cost and productivity, at least by general definition of
competitiveness alone, as being the capacity to obtain high productivity. The recognition of the
duality of the porterian competitive advantage (through costs and differences) determines
ultimately the recognition of its materialization in extra productivity versus the concurrent firms.
Michael Porter considered that “the competitive advantage is the key -factor for a company
to reach the performance on competitive markets and cannot be understood if we regard the
company as a whole”.
It results from the multiple separate activities a com pany performs for the design,
production, marketing, delivery and the ensured maintenance of its products. To analyze the sources
for the competitive advantage (competition) Michael Porter interpolates the notion of value chain
through which a company is d ivided into activities relevant from a strategic point of view, in order
to understand the mechanism of costs and the potential and existent sources of differentiation.
Companies’ value chains within an economic field differ one from another, reflecting th e
past of each company, the chosen strategies and the success in implementing. The relevant level for
the realization of a value chain is that of the activity of a company within a certain field. The value
chain of a company from a certain field can vary m ore or less for different articles in its production
line, or for different buyer categories, geographic areas or distribution channels.
To diagnose the competition advantage, we must identify the value chain required to be
competitive within the studied a rea, and then, to emphasize the advantages the company has
regarding the chain.
Consequently, this approach proposed by Porter is useful because it gives the company the
possibility to evaluate each competitive force, so that the firm can establish its own competitive
strategy, use in its advantage the rules that govern the competition on the market and thus ensure a
competitive position versus other companies that operate on the market.
The use of the value chain implies a compelling evaluation of the cost s generated by the
primary, cardinal and support activities. Besides the fact that it allows the company to determine its
position in costs’ plan compared to rival companies, the value chain also offers indication regarding
the nature and localization of t he measures to be taken in order to reduce costs and increase the
competitiveness from this point of view.
In Michael Porter’s vision, the system of the factors for the competitive advantage aims the
investment and innovation theory. Within a new economy a nd the knowledge society,
competitiveness and the competitive advantage acquire new approaches. Thus, competitiveness
supposes a concentration of the efforts towards investments in physical capital (new equipments,
buildings, etc), investments in human cap ital, in advanced technologies and the enhancement of the
existing ones, and also the increase of productivity and the improvement of the production
connections.
All the other advantages, mainly qualitative and largely non - quantifiable, are concretized
in the company’s economic results or performances. The managerial practice in the developed
countries companies shows that the companies that base their activity upon strategies, obtain clearly
superior economic results.
One of the strategic fields - potentially competitive – that is capable to ensure a long term
economic increase that should help it to recover the gaps that Romania has compared to the
European Union, is the tourism.
The Annals of The "Ştefan cel Mare" U niversity Suceava. Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
Among the arguments that jus tify this appreciation there would be in the first place its
multiplying effect, the tourism acting as an actuation element for the entire global economic
system, caused by mutations in quantitative and qualitative plan induced by its development at the
level of all branches it is inter-dependent with.
The character of the inexhaustible resources it valorizes, under the conditions of a long
term development, makes tourism represent one of the economic sectors with real long term
development perspective.
By its content, tourism is also an important factor of long term development. That is why,
this option is perfectly integrated within the present strategy promoted world wide: “Economic
strategy for long term development”. Thus, in terms of respecting and pro motion of the principle for
durable development, tourism can represent a means for the protection, preservation and
capitalization of the cultural, historic, folkloric and architectural potential of the country.
By adopting a long term development strategy for tourism and the implementation of some
measures for environment protection, of the fundamental values of human existence (water, air,
flora, fauna, ecosystems, etc.), tourism has at the same time also an ecological vocation.
The existence of a large diversity of tourist resources, both natural and anthropic, among
which some with an increased level of attractiveness and originality, can ensure under the
conditions of the optimal capitalization, a source for increasing the state currency, thus contribut ing
to outweigh the balance of external payments.
At the same time tourism represents an important factor for regional development,
ensuring the lowering of the imbalance between separate areas, also representing an important
source for the increase of the population incomes, a safe market for the work force and
redistribution of that dismissal form other economic restructured sectors.
Not last, we must accentuate the fact that tourism contributes through its effects in the
socio-cultural plan to the insurance of the life quality that represents a very important aspect
regarding the fact that, in the present context, competitiveness at nations’ level must be considered
in more wide sense, which also includes the life quality.
The development of the Romanian tourism and its transformation in a successful sector,
according to its potential, require the elaboration and especially the practical application of some
adequate strategies at macro -economic and micro-economic level.
The extremely powerful competition m anifested on the tourist market and also the
exigencies more and more strict that tourists manifest, impose that the general objective, at the
sector’s strategy level for tourism development, to be the increase of the competitiveness of the
Romanian tourism.
Because of the multiple interdependencies between tourism and other economic sectors,
this development strategy must be correlated with the other sector strategies and with the regional
development strategy so that the stimulation of the activities of t he industries or activities that act as
support for tourism to be assured. That assumes on one hand, the understanding of the tourism
implications by its participants, and on the other hand, through the applied strategies, there must be
ensured the harmonization of all existent categories of interest, that is tourism planning and
development to be realized so that it can provide economic and social benefices to all actors directly
or indirectly involved in realization of the tourist product. This implies th e elaboration of some
national and local strategies, and some facilities that should determine the economic agents to
implicate in this domain. Common tourist projects are the most profitable for the inhabitants of the
Region in this respect.
The construction and development of tourist establishments usually requires a large
investment volume. In these conditions, the stimulation of the investments in tourism can be done
by the stimulation of an active partnership between economic agents and the authorities involved at
the national, regional and local level, between private and public sectors.
At the same time it is necessary to join the management strategies with those of marketing
at all levels, so that it can be achieved the maximization of the effects of those strategies.
The Annals of The "Ştefan cel Mare" U niversity Suceava. Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
The participation of Romania to the international tourism competition, on the continent and
worldwide, under the conditions of the existence of a valuable tourist patrimony, at the European
and world level of the market’s requirements remains an issue of firm action of the Government.
The systemic vision of the long term development strategy of the Romanian tourism, in the
context of structural adjustment of the entire national economy, brings into attention the fact that
the tourism has become a primary economic branch in the organic interdependency with the other
economic -social branches and sectors.
The deciding element in scientific and decisional plan is constituted by the definition of
some firm, realistic concept regarding the capitalization of the patrimony and long term
development of the tourism.
According to the reform and structural adjustment program, the transition towards the
market economy in our country, implies the growth of lucrati veness in all activities through
efficient capitalization of economic possibilities, implementing advanced technologies worldwide
used.
The alignment of the Romanian tourism to these requirements is necessary because of its
characteristic mobility and also because of the importance of this sector in the Romanian economic
rebuilding.
As fundamental principles of such strategy, one could have in mind: the privatization of all
tourist units, autonomy of economic agents and integration in the world tourist circ uit. Among
these, the state plays a significant role through its politics for tourist development at national level.
The objectives of a tourist policy are:
Extra-economical through implementation in practice of the free circulation and
communication between countries and through cultural role of capitalization of natural, artistic and
architectural patrimony;
economical: qualitative and quantitative because tourist policies favors some types of
consumption in order to increase the production and guide towa rds sectors and regions that present
special interest and have a positive training effect on the economic growth of external commerce
and employment of the workforce.
The tourist policy instruments are those that arise from the global economic policy, to
which there are added the sectors’ planning and the specific instruments for the tourist sector.
The global economic policy has numerous directions that favor the development of tourist
activities, and they can be grouped in three categories: financial, fis cal and economic-social
directions.
In establishing a planning strategy for tourism development, planning methods and
procedures are an important aspect. Political, economic and social environment, the market position
with its implication at national and w orld level, leave their fingerprint on the structure of tourist
national plans. The quantitative aspect of the planning regarding both the objective and the expected
outcome consists in finalizing optimal provisions that should maximize the economic effect s of the
tourist development under given economic, social and politic conditions.
The instruments of economic policy specific to the sector aim those measures that are
applied in tourist domain and use budgetary, monetary and fiscal instruments. Financing from the
state budget of tourist activities is destined to encourage the development of some areas and
components of tourist offer (eg. credit granting with small interest to encourage investment in
tourism). Monetary measures are adopted to maintain or ev en increase international
competitiveness of tourist products to export. Fiscal measures have as purpose the stimulation of
tourist companies through exempt, reductions or delaying of tax payment or by increasing budget
income through differential taxation of tourist activities.
The way in which the main objectives are arranged and included in the development
strategies of Romanian tourism, and the ways in which this is accomplished, presents a series of
interesting aspects to conceptualize the value system of our tourist patrimony, as it follows:
The Annals of The "Ştefan cel Mare" U niversity Suceava. Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
the tourist offices on other issuer markets; the extension of cooperation in the do main of
commercialization of some Romanian tourist products.
6. The development of tourism for the young people
In the purpose of the amplification of the tourist movement of the youth the following
objectives were proposed to the strategic policy for the development of youth tourism that were
accomplished in direct collaboration with the Ministry of Tourism, the Ministry of Education,
Research and Youth:
- the growth in youth participation to the internal tourist circulation;
- the extension of program org anization for the formation and perfection of the youth in
crafts with tourist character (animators, guides for different tourist actions);
- the extension of participation projects of the youth associations, clubs, foundations or any
form of organization non-governmental to the congestion and co -management of tourist resources
form the long term development perspective;
- the assurance and promotion of the tourist information for youth;
- organization of tourist actions with educational character on inter cultural problems, of the
identity of national culture, of tourist and ecologic behavior, moral and religious.
7. The insurance of the new work force adequate to the new programs, requirements
and tourist technologies
That is made according to scientific c riteria of recruitment, selection, formation and
perfection of all tourism workers, the instauration of a system of stimulation and co interest of the
tourism personnel, the progress of some formation classes and managerial perfection in tourism, the
assurance of a contractual collaboration with specialized foreign organization and firms.
Realization of these strategic objectives will determine essential changes in Romanian
tourism, with positive effects and very important from economic, social and ecologic point of view.
The re-launching process of tourism and of its consecration as primary branch of the economy
implies stock-taking and coordination of all premises inside of a realistic development strategy and
well-integrated in the reform programs of the Romanian society.
The development of the tourism in Romania must be an objective and a means of
economical and social development as a whole, in the context of national politics for development
and must follow the present economic context and this cannot b e imagined without a package of
measures that should aim:
The precise definition of the tourist activity’s objectives at macro -economic and
micro-economic level;
The assessment some high quality standards through the education of internal
consumers of tourist services and through investments in the quality of the technical component of
the services provided;
The increase of the functional and relational quality, through reorientation of the
organization’s culture and the perfection of the training of the economic agents involved in the
tourist offer, especially in market techniques studies, orientation of efforts in internal and external
concurrency, in localization of the concurrency and in the conscious use of the environment as part
of the investments in tourist activity;
Judicious assignment of the environment maintenance costs between the providers and
consumers of tourist services;
Creation of a “brand image” for the Romanian tourism by emphasizing the distinctive
differences, primarily regarding to t he neighboring countries, and by emphasizing Romania’s
competitive advantages: the variety of relief, advantageous prices, multiculturalism, uniqueness of
some reservations and of some cultural and natural monuments under international protection, etc;
The association of tourist activity with the concerns for the environment protection and
with the support for the regeneration of natural resources
The strategic objectives for tourism development are:
The development of tourist product as to assure the super ior value of the conditions
and existing factors and increase of its quality and competitiveness.
The Annals of The "Ştefan cel Mare" U niversity Suceava. Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
CONCLUSIONS
Romania has a huge tourist potential, but not enough exploited. From a tourist point of
view, Romania is behind the other c lose states, like Hungary and Bulgaria even if the Government
declared tourism as a main sector. However, the perspectives are hopeful, Romanian tourism having
great chances to become competitive. According to the report regarding the perspectives of growt h
in tourism industry, Romania occupies the seventh place among the 176 countries analyzed by the
World Tourism and Traveling Council (WTTC).
The Annals of The "Ştefan cel Mare" U niversity Suceava. Fascicle of The Faculty of Economics and Public Administration Volume 9, No.1(9), 2009
Also, most visitors that Romania will have in 2008 will come from Germany, Austria,
Italy, SUA and Israel. The ina uguration of new hotels and pensions, the amelioration of services,
but also a better infrastructure, are the reasons for the attraction of many foreign tourists in 2008, in
the opinion of National Association of Travel Agencies (ANAT). Romania received in 2007
approximately eight millions foreign tourists, and 2008 is the year where are expected 15% more
tourists, the countries that already have acknowledged being Germany, Austria, Italy, SUA and
Israel. The argument for this growth has as justification, a ccording to the same representatives, a
better infrastructure, the inauguration of new hotels and pensions, and the amelioration of the
quality of services. On the other hand, according to the estimations made by the Patronage
Federation in Romanian Touris m (FPTR), the Romanian’s interest to travel abroad will not
diminish, thus an increase of 30 -32% of the number of those that will leave abroad is expected.
The fact that the Romanians would rather spend their vacation abroad, and not in their
country, would affect the internal tourism. However, this can be regulated by the improvement of
internal offer and housing conditions. Totally, in 2008, an increase in all segments, internal,
external, business, travel and charter is expected, and a factor that will c ontribute will be the
improvement of infrastructure, including the airport one.
Another trend for 2008 is the Romanians option for airplane trips, in Romania operating 47
airlines with regular line and nine low -cost companies. Among these, charter flights will register an
increase of 25%. Charters have registered last year also a growth, being launched almost 80
charters, and for 2008 it is estimated that their number will reach almost 100. An important
tendency is the appearance of charters in other citie s of the country, according to the National
Association of Travel Agencies (ANAT).
In conclusion, Romania must know how to attract approximately 1,5 billion Europeans to
visit it, but it will take a few years until the citizens of European Union will learn to come in our
country, having in view that Spain, Turkey and Greece are traditional destinations for them.
Moreover, in Romania, the quality/price proportion is most of the times improper and that brings
about the dismissal of potential tourists. Sibiu i s one of the departure points for external promotion.
The city that in 2007 was declared the European Cultural Capital represents a first step. According
to some specialists, on European market there is a tendency towards the personalized holidays, from
standard tourist packages. That is why Romania should integrate in this evolution, by promoting
many types of tourism, form the cultural to adventure one.
BIBLIOGRAPHY