ࡱ> CE@AB5@ abjbj22 rXX%4^ ^ ^  EEE8LE|FL  H:ZH"|H|H|H9PJPP$ER^ e]N9Pe]e] |H|HKQlQlQle]^ |H^ |HQle]QlQlkl̿( 6^ |HH hEfPFXDa0~GijGr F H G^ DPTQlyWDYPPP d80D5l 0D Cluster  model of Istrian agrotourism destination Igor `tokovi, PhD, Associate professor University Jurja Dobrile in Pula, Department of Economics and Tourism Dr. Mijo Mirkovi, Pula Croatia,  HYPERLINK "mailto:uprava@arenaturist.hr" uprava@arenaturist.hr Jasmina Gr~ini, PhD, Assistant professor University Jurja Dobrile in Pula, Department of Economics and Tourism Dr. Mijo Mirkovi, Pula Croatia, jasmina.grzinic@efpu.hr Abstract In the Croatian tourism, rural tourism as one of its priority becomes an important part of selective tourism offer. Innovative projects in rural areas connected in the form of clusters are the main force of regional Croatian development. Rural tourism has no specific strategy of its own, because it hasnt been recognized as an amalgam of different activities, but has most frequently been viewed through agrotourism, which has always and exclusively been considered as a complementary activity. (Hajdaa Don i, S. et al: 2007). This paper explores the potential of agrotourism clusters in Istria in the form of agrotourism destinations and visitor attraction product. The aim of the paper is to investigate agrotourism cluster as an operative organization in the function of attraction marketing and tourism product development. This paper explores the possibility of socio-economical, organizational, cultural, educational and environmental properties of one Istrian cluster and the level of connection to the other clusters in the region. Proposed methods are applied on the actual development projects to evaluate all benefits of the proposed approach. Key words: Rural tourism, tourism product, cluster, networking. INTRODUCTION Tourism is an agent for economic development but it is also seen as an agent for change. It has become a very competitive industry, where the tourist consumers have become more sophisticated. Modern day tourists search for tranquility, outdoor activities and familiar surroundings. Abandoned buildings in declining villages or on farms may become second homes for urban dwellers. (Jafari, J.: 2000). The Council of Europe defined rural tourism as tourism on a rural area together with all the activities conducted on that area. Agrotourism is based on the landscape, tradition and family, which all together makes a comprehensive and competitive tourism product. Rural tourism was created as a response to mass tourism of the Mediterranean, since rural tourism implies a more intimate environment in smaller communities. This paper shows the advantages of cluster model of agrotourism destination formation with the examples of practices across the world, so to establish such model in Istria. In this paper, research will show the need to increase competitiveness, as well as the need for developing the region, through joint initiative and cooperation of cluster members which are in the process of continual learning. There is therefore spatial fixity, which gives rise to a number of implications: strong potential for spatial polarization, necessity for host-guest relationships, direct environmental impacts of tourists, and the need to travel to the tourism site. (Shaw & Williams: 2002). A novel approach to tourism development in the countries which are our direct competition, as well as in the world, is based on coordinated actions of public and private sectors regarding tourism and industry organizations such as clusters. Main and basic reasons for the occurrence of cluster policy are that clusters become crucial for regional development, especially today when regions have to face globalization. Business takes the form of agglomerations based most frequently on the regional principle. This concept becomes essential for becoming a part of new developments and trends in tourism. Porter (1990) states that the public sector has the most important role in improving the environment that determines competitiveness. The circumstances of such environment are not always just cost-oriented factors or natural resource availability. Companies achieve higher level of competitiveness when economic foundations (knowledge, finance, physical infrastructure, quality of life, regulations) fulfill cluster needs. Partnership of agrotourism households reduces costs and stimulates the establishment of intra-regional partnership which inevitably requires assistance on regional and national levels. Partnership works best when a limited number of stakeholders are involved and each holds similar values. (McKercher, B. & C. H. du Cros: 2002). 2. cluster ORGANIZATION OF AGROTOURISM HOUSEHOLDS REGIONAL DEVELOPMENT MODEL The regional level is an attractive complementary offer with culture, leisure, gastronomy, retail outlets etc. essential for the quality and length of the stay. (Conrady, R & M. Buck: 2007). There are several components of quality that determine the quality of tourism products (Bether and C.Ruwoldt:) Material service (technical) quality, that includes aesthetics of buildings and equipment and functionality: architecture of building, interior, design of premises, decorations, sound and light systems and their technical order etc.; Nonmaterial service (functional) quality, that includes personal service: hospitality, friendliness, kindness, information quality, its updating, trustworthiness, perceptibility etc.; Quality of surrounding environment that is formed by nature complex, scenery, climate, environment friendly tourism region, architecture, local people, etc. Agrotourism households are becoming increasingly popular on the tourist market every year and clusters can fulfill the above mentioned classification of tourism products. Istria has favourable opportunities for the development of agrotourism. The rural cultural environment is a unique national cultural preserve, where one can see buildings and economic activities characteristic to each Istrian cluster formed with the cluster diversification. Primary objectives of agrotourism development are defined with the aim of: promoting Istria as a renowned tourist destination of selective tourism; promotion and tourism valuation, environment protection, old architecture and traditional and cultural heritage; preventing rural depopulation; direct support for agriculture; prolonging the tourist season; following world trends in tourism and joining international projects. The identity of Istria can be seen in specific traditions, customs, lifestyle, everyday life. Every Istrian cluster is an attractive and interesting part of the product offer. Istria was the first in Croatia to publish the Master plan for tourism development with the aim to restructure Istria according to four star destinations. The document is based on 7 tourism clusters; Umag Novigrad, Pore , Vrsar  Funtana, Rovinj, Labin  Rabac, inland Istria, Pula  Medulin. The purpose of the document is to form the offer of the cluster in order to increase market competitiveness and mutual complementary. Agrotourism is one of the development programmes of Istria County Tourist Association, and during 2005 its progress was in accordance with the defined agenda of Tourist Association within every cluster, but also it was in compliance with other circumstances on the field that required adequate organization and solutions. In agrotourism farm households earn their income from selling their products, and additional income and work is achieved by providing accommodation and catering services. Basic operation in agrotourism is providing accommodation and catering services on farm households, provided that the farm household is the place of residence for household members, and accommodation and catering services are mostly from its own production. Thus, hospitality services, as basic activities of farm households, stimulate and preserve the sector of agriculture. There hasn't been any attempt to create networks of agrotourism households, i.e. intra-regional or international cooperation. On the other side, cluster formation of agrotourism subjects increases competitiveness of the region and local development initiative. The following activities are essential for the formation of the agrotourism cluster (Dermastia: 2002, Don i, H & H. `mid: 2007): Mapping  identification of the spatial concentration in the rural area of the observed region and neighboring countries, determining key participants in the region and sub-region and their logical grouping; Identification of connections between the agrotourist subjects and other complementary participants (identification of connections between the entrepreneurs, support institutions and organizations); Identification of potential cluster members in a survey that determines the quality of agrotourism and its cluster potential. For the majority of rural tourist destinations the great part of the tourist equipment is offered by small sized firms (family firms) which need counseling, financial support and a full co-operation both between themselves and with the state or local authorities. (Ispas A. & N. Petcu:). Nonexistence of firm economic development strategy at the level of the Republic of Croatia, which would serve as guidelines determining the development of the region, creates the need to define requirements and micro-strategy for the development of the region. Overall development of a certain area is a highly demanding process, both regarding the plan and the organization, as well as implementation. It is inevitable to create the development of rural areas taking into account the territory, and accepting good and constant intra-sectoral connections as essential for the full progress. There are several European regions which accepted the development of their tourist destinations, and thus have developed activities on regional levels based on clusters on account of the following characteristics (Stuart A. Rosenfeld: 2002): Clusters are based on systemic relationships among firms (resources, skills, distribution channels); Clusters are geographically bound; Clusters have life-cycles; Clusters have lower operating costs (specialized services); Access to technology and know-how market. Establishment of regional clusters makes tourism industry more competitive. Although many countries and regions are trying to use cluster models to analyze their economies, only a few show fundamental changes in the economy of services based on clusters (Murphy, P.M. and Smith, B.: 2000). This means that the tourism industry will be launched on the position where it will be recognized by sophisticated, diverse and high-valued products and services, together with providing noticeably high qualities for all clients. Future agrotourism clusters should be understood in the following way: Analytical tools: for better understanding of the economy and defining economic development and the market; Organizational tools: regional strategy that includes industry leaders and stimulation of communication network in order to improve the relationships among companies and within the companies themselves; Service tools: ensuring highly specialized services. The need to reorganize the competitive position of Croatian tourism was created by increased international tourism demand for Croatia, although we can claim the opposite as well; that market positioning that Croatia acquired as a tourist destination in past few years intensified the interest. Istrian agrotourism products have a number of characteristics which are of relevance to the way in which they are managed. Rural tourism needs to be supported through developmental agencies, tourist boards or chambers with both approaches, bottom-up and top-down. Most of the conflict can be avoided if communities are actively involved in whatever plans are developed for local areas, and if the benefits of development are shared by all stakeholders. (Reid, D.: 2003). The main issues in local economy are the lack of joint action approach and non-homogeneity of tourist regions, frequently resulting in individual and fragmented activities when implementing qualitative elements. This situation led to the inability to distinguish the difference between competitive advantages and quality management of local economy over and between tourist areas of specific destinations. In this case Product manager of Istria County Tourist Association, in cooperation with local marketing managers, develops marketing activities for the cluster in order to cooperate with local entrepreneurs regarding product improvement and development. Within the cluster there is the need to appoint a person which would take the role of Agrotourist coach, acting as an individual who possesses the necessary attributes for this role, partnered with a community member. 3. AGROTOURISM IN THE AREA OF LAbin Kran CLUSTER Tourism on rural households is most developed in Istrian County with 80 registered rural households or 26% with 408 beds, or more than a half of total registered beds on rural households. Cluster Labin  Kraan includes municipalities Kraan, Raaa, Pian and Sv. Nedelja. Istrian agrotourism is a middle solution between rigid regulations on tourist rural households and creating optimal rural hospitality based on traditional local architecture, traditional interior decoration, traditional garden and garden plot and regional gastronomy and enogastronomy, together with modern and inevitable offer of extreme importance to the modern tourist offer (pool) (Kuen: 2007). The development programme was developed through 3 strategic directions: agrotourism agricultural production, autochthonous products, valorization of the gastronomic tradition; rural holiday houses and stantias as rural household of highest quality; Bed & Breakfasts including extra services in households. The following categories were developed from the basic ones; holidays on wine routes and small family-run hotels. The cluster area, according to marketing typology, mostly has rural holiday houses, only one agrotourism, one Bed & Breakfast and two stantias. Table 1. Household typology and accommodation capacity Household type Facility and accommodation capacity Agrotourism (1)Pineta, Sv. Nedelja, (18 pax)Bed and breakfast (1)Dea, Sv. Nedelja, (17 pax)Rural holiday houses (27) Romana, Kraan (9 pax), Pod U kom, Kraan, (9 pax), Bukaleta, Kraan, (5 pax), Albino, Kraan, (6 pax), Nina Kraan, (3 pax), Regina, Kraan (6 pax), Malini, Kraan (10 pax), Balota, Sveta Nedelja, (8 pax), Katarina, Pian, (6 pax), Olimfos, Pian, (7 pax), Martina, Sv. Nedelja, (9 pax), Filip, Sveta Nedelja, (9 pax), Rina, Sveta nedjelja, (5 pax), Korona, Sveta nedjelja, (5 pax), Lili, Labin, (6 pax), Volta, Sveta Nedelja, (6 pax); Baronessa, Sveta Nedelja, (6 pax), Donada, Sveta Nedelja, (8 pax), Ro~a, Raaa, (3 pax), Katina, Raaa, (6 pax), Crni, Raaa (8 pax), Marija-lorena, Labin (4 pax), Gaia, Raaa, (4 pax); Villa solea, Raaa, (10 pax); Villa antonin, Raaa, (14 pax); Snaai, Raaa, (4 pax), Tonina, Labin, (6 pax).Rural family-run hotel (1)Pala a lazzarini-battiala, Sveta Nedelja, (21 pax)Stantia (2) Favola, Labin, (12 pax) Sisol, Kraan, (10 pax)Source: Brochure Rural Tourism and Agrotourism, Istria County Tourist Association, Pore , 2005 Present investment model is often disturbed by certain economic activities which are contradictory to planned investment realization. For example, Rockwool, stone wool plant, in Pino is causing long-term environmental damage in Raaa river valley, high-quality agricultural land. For this reason have three families decided not to make planned investment into agrotourism, supporting the thesis that present development model of the region is not sustainable. It is important to note that Raa municipality has 600 beds in 122 private accommodation providers, motor camp Marina and Tunarica with 590 and 380 camp spaces, which is not irrelevant. Realization of the Master Plan for 2012 should present Istria as an exceptional blue-green Mediterranean destination, attractive and suitable for all different tastes and guest in search for a unique experience. Cluster Labin-Rabac still in 2008 didnt achieve the level of unique and distinctive destination with its offer. Sustainability can be provided if investment is implemented together with the efforts regarding repositioning in order to achieve advantage with attractions that represent possibilities for destination repositioning, but also sustainability is achieved by initiatives which include all necessary factors (local community and financial support). Besides natural and cultural points of interest, Kran municipality organizes many events in order to familiarize the tourists with the customs of Istria and its traditions. This is achieved by organizing events that promote Istrian souvenirs and home-made products that are specific for this region. One of the forms of tourism that enables growth in this industrial branch in inland Istria is biking in the area of Sveta Nedelja municipality, serving as an alternative to the tourism on the coast, as well as providing the possibility to prolong the tourist season from only the summer to almost the entire year. Existing bike paths on the area of the municipality are a part of the project "Bike paths of Istria" that was induced by Tourism Department and Tourist Associations of Istria County, meaning all paths that go from the East to the West. Sveta Nedelja municipality has a lot of monuments that are entered in the Register of Cultural Property, inventory taking on municipal area identified cultural heritage according to categories. The criteria for defining destinations are attractiveness within the zone, its homogeneity or heterogeneity, number of visitors and development levels of the tourist destination. (Hajdaa Don i, S & Horvat, : 2007). Attractions described meet the criteria required for defining destinations, and thus meet the criteria of agrotourism cluster due to several resources within Labin Rabac cluster that have strong attractiveness which could create distinctiveness. Tourism of Labin region does not have a clearly defined strategy of providing guests with higher quality levels. One of more significant aspects of rural tourism development is accomplishments of the civilization which the region isnt sufficiently utilizing, i.e. the accomplishments arent sufficiently valorized in the context of tourism. Labin destination area today cannot change the situation in which it has high costs and provides low values, and due to sales at low prices and from the point of view of the market the area isnt sustainable. Tourism cluster model based on product portfolio and accommodation structure can have only short-term sustainability. What is missing is drafting a cluster pilot project which would, on the basis of destination attractiveness, provide more overnight stays and generate revenues needed for tourist destination development. Rural areas have a shopping potential which has developed endogenously and is usually supported with attractive infrastructure. (Conrady, R & M. Buck: 2007). Table 2: Attractiveness assessment in Labin-Rabac TOURIST ATTRACTIONS Natural- river Raa and bay beachesCultural- Museum of Coal Mining (Labin) - local museum in LabinEvents- TransArt Istrian International Transdisciplinary Art Festival Mediterranean Sculpture Symposium in DubrovaActivities- Diving/Skin diving - fishing - climbing -swimming/ waterskiing - Parasailing - Retailers/shoppingSource: Master plan of Istrian tourism 2002 2010. The design of new attractions is always the result of a compromise between a number of forces, some of which may be contradictory. The solution of the present issues and the need to ensure rapid and equal development of the city and the county are main and priority tasks for the development of cluster agrotourism in Istria. Considerations about the strategy and strategy defining require the understanding of determinants and factors, and within that framework can conclusions be drawn in order to find solutions for the requirements and development guidelines. Rural communities in the area of Sveta Nedelja havent preserved traditional forms of towns or architecture, although they have been developing as a part of manors since the Middle Ages. The influence of coastal semi-urban architecture can be seen in detached or terraced stone single-story houses, often plastered, with stone frames on windows and doors, probably built in the 19th or the 20th century at the time of mining development and intensive growth of the surrounding area. Some populated areas still have a preserved dry stone walling system (for ex. Benazii, Paradi~, and others). Archaeological heritage should be mentioned because of the 12 historical villages that represent memorial and ethnological heritage of extreme value. Surely this part of Istria can achieve more, but it needs to be recognized all through the year, as it is interesting for the development of various selective tourism forms (hunting, biking, collectors, explorers). With rural tourism, average unit occupancy is 111 days, and the average stay is 9 days, which is of great importance taking into account changes in tourist circulation within the tourist market. Figure 1: The design compromise         Source: adopted according to Swarbrooke, (2007). Sparsely populated rural areas sometimes have no established tourist locations, but here this is not the case since this rural area functions in the context of tourism. Creating the density of tourist amenities decreases the depopulation trend of rural areas, and in the near future it will be reversed in favour of urban depopulation i.e. from cities to rural areas. Rural tourism can thus become a significant factor in the activation of rural areas which helps preserving local identity, traditions and customs of the area. On the other side, the environment is protected and autochthonous, traditional and ecological production is stimulated. Internal and external organizational factors are the foundation for the design of attractions in cluster pilot projects. Establishing connections with other municipalities on Labin area would prolong tourist stays and improve tourist offer within the entire year. The suggestions mentioned can improve the tourist offer within the whole year: 1) in the summer the sea, trails, bike paths, etc. . 2) connecting cultural/historical attractions (Kran, Plomin, Labin, Pino, `umber, etc.) 4. THE ROLE OF THE PUBLIC SECTOR Local authorities and local tourist associations should provide support in the implementation of the tourism development programme by ensuring various municipal, location and other benefits for tourist entities. Table 2 shows that this tourist sector account for only 3.7% of the overall Istria tourism projects share in Istria, which, compared to other clusters, places it on the last place, behind the larges ones; Rovinj, Umag Novigrad, and Pore , and even lower than Vrsar Funtana, Pula  Medulin cluster. Table 3: Istria tourism projects ENTITIES (private and public sector)Share 2004  2006 in %Share 2007 in %Large hotel groups4.25.6New projects in tourism 0.00.0Towns and municipalities of Istria County 4.52.6Small and medium entrepreneurship 4.36.3Accommodation and catering craftsmen6.56.5Turist Association system6.56.5Private accommodation providers 6.56.5Agrotourism and rural tourism 0.00.0TOTAL3.73.2 From the point of view of agrotourism and rural areas, inland Istria cluster dominates in project realizations, but the realization is still insufficient regarding the credit lines and their networking. The cooperation of national institutions should be more intensive in projects that are launched with the purpose of stimulating rural development. On the other hand, potential credit users, due to some discrepancies in regulations that refer to rural or agrotourism and insufficient understanding, dont take advantage of all given possibilities. In addition, it is essential to provide professional and technical support for all private entrepreneurs and households, including offering qualified and specialized education in the rural area, since it is for now at very low levels. In order to eliminate the limits of unfavourable educational structure, it is required to create and stimulate informal form of education and advanced training, especially for key activities in the rural area. This form of tourist activity can achieve its aim of prolonging the season and change the structure of clients coming on the area. We look for the reasons for current issues in poor coordination between the product, quality and brand development on different levels of the above-mentioned hierarchy, i.e. its non-homogeneity. Local tourist organizations, responsible for providing information and taking care of guests on the spot, can show its strength in developing the product and the offer. Regional tourist organizations usually block them when trying to improve the integration of entrepreneurs. Namely, tourist destinations are not homogeneous. Croatia has a striking imbalance in entrepreneurial activities differing from region to region. Table 4. Agrotourism investments proposition for cluster concept for organizing activities ActivityImplementation indicators Impact on the rural areas  1. Co-financing equipment purchasing for production and sales of traditional and innovative products  Type and the amount of funds, number of users, production increase Increase in tourism product quality Increase and diversification of employment and the sources of income on the rural area Economic resources that are interconnected 2. Co-financing agrotourism planning and launching Number of users with complete documentation for agrotourism launching Regional analysis of tourism Developing the role of small and medium entrepreneurship 3. Co-financing life-long learning programme Number of programme attendants, attendants of seminars, round table discussions and the levels of their organization Increased competitiveness Learning organization 4. Co-financing the promotion of agrotourism The quantity of printed promotion materials, the number of promotional events, joint booking systemBeing distinctive on the tourism market Reducing the costs of promotion and the booking system 5. Co-financing the construction and refurbishment of agrotourism facilities Number of constructed and/or refurbished agrotourism facilities Acceptability of common standards  Sustainability of cluster organization can be achieved by financial support to projects of tourism development, as well as with financial support for rural tourism development. In last six years the government granted 25 million kunas for the development of continental tourism, and Ministry of Tourism announced a credit line for continental tourism development. For example, agrotourism households in Italian Toscana can get grants from the region and the government in the amount of even 55 per cent of total investment value. However, household that wants to engage in agrotourism activities has to be an agricultural estate, and its revenues from agriculture have to have at least 51 percent share in the total estate revenues. Graph 1. Tourism investment in Istria per clusters 2004 - 2006  SHAPE \* MERGEFORMAT  It is required to stimulate those activities which contribute to the increase in attractiveness of a tourist destination and the promotion of tourism products. What is neglected at present is improving financial support to strengthen organizational forms of entities important for tourism. There is the question of how to reach competitive clusters when local authorities dont have many possibilities to become more competitive (the level of local services and infrastructure is inadequate)? How can tourism activities be diversified (almost half of the market is residential tourism)? By incorporating and respecting the academic community, experiences and good practices, the purpose of the cluster within the framework of understanding the right approach to European economic development is inevitable. Clusters cannot be replaced since they are irreplaceable sources of work, revenues and export growth. Also, economies that are more effective need to direct their growth to the reality of industries which are focused on their strategies. And third, strengthening the economic part of development in spatial planning becomes a necessity. Finally, all that was mentioned above leads to high quality services programme in hospitality industry. 4.1. Difficulties in receiving support for field projects There have been 57 granted loans in past six years in Istria within the programme of loans Poticaj za uspjeh, from the total of 394 on the level of the Republic of Croatia, out of which there have been 15 loans within the programme Pod stoljetnih krovovima. Although the programme of Ministry of the Sea, Transport and Infrastructure has arranged this credit line to restore the old or existing houses of ambient architecture, the programme hasnt received the expected response in the rural areas of Istria or Labin area. The loans were not used as investments in agrotourism, but for smaller hotels, and if not for that, for hotel complexes in autochthonous Istrian houses (the popular San Rocco in Brtonigla). However, city councils are often creating problems for small hotels regarding the realization of loans, by creating difficulties with construction and location permits, discounts on municipal contributions, arranging parking lots, access-roads, etc., as additional stimulations for investment. It should be noted that this type of delay causes dissatisfaction of other tourism factors such as tourist associations that have offers of small hotels in their catalogues, and are threatening to sue. So, good initiatives dont end up as planned, since there is the absence of coordinated activities of all factors of the system. Initiatives are good, which is confirmed by subsidizes interest rates that resulted in developing additional hotel offers (wellness, pools, etc.). There havent been any new agrotourism households in Istria in past three years, warning about the problems of credit line implementation and the introduction of new ones. The most alarming problems on the field are administration barriers such as information required from people for whom tourism is an additional activity (agriculture is the core activity), that is more adequate for entrepreneurs. Here we mean the drafting of a business plan incorporating estimated revenues, determining tourism niches, employee structure, etc., for the amount of 200 thousand kunas. For amounts bigger than such, the procedure becomes even more complex, requiring an investment programme which is for most owners of agrotourism households unknown and incomprehensible. Credit lines for classic agrotourism and autochthonous Istrian holiday houses havent been used, as well as for Bed & Breakfast services, stantias, rural family-run hotels or tasting rooms. On the other hand, the term agrotourism also presents some problems on the field, since it is legally groundless, as well as the standardization of agrotourism facilities which are categorized by rules on apartment facilities. For such facilities then it is impossible to get the categorization higher that three stars. Standardization proposals for such facilities in order for them to be recognized in the future are essential. Ruralis consortium for agrotourism and rural tourism in Istria is working intensively on the standardization and classification text, but also on recognizing rural households in Istria as being separate from any other forms. 5. CONCLUSION Rural tourism in Istria started developing in 1996, when the public sector, i.e. Istria County, Tourism Department, and Istria County Tourist Association began to stimulate the private sector financially, conceptually and by advertising. EU will initiate campaigns to promote Europe as a whole as a tourism destination and will encourage co-operation in destination marketing between countries, particularly in the field of agro and cultural tourism. So, tourism in Croatia needs to be viewed as a separate group of interlinked clusters, and they need to approach the market together. All these destinations require special care when determining tourist centers, and special account should be taken with their preservation and diversification. 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In tourism, achieving high added values and small profit leakages outside the country depends on the clarity of vision and strategies of tourist industries, and the level of their acceptance. The vision of Croatian tourism cluster is to develop tourism industry based on quality, services and added values. Both the vision and the strategy werent created by officials or individual members of the private sector, but are oriented towards the cluster which develops them as a unity. This development is encouraged by creating the abilities to influence the number of overnight stays and their distribution during the year, but is also stimulated by the amount of money that is spent. Improving competitiveness requires appropriate price with reasonable revenues and assumes reinvesting the profits into further development economic benefits. Through various government initiatives and supports there would be an envisaged sustainability of economic development. Local residents must understand the role that they play if they are to add value to their organizations and promote the achievement of sustainable outcomes. Planning and organizing the tourist place, as well as stimulating production and sales of local products will improve working conditions and the quality of life for the local population. In this matter we mean continual planning, cooperation between the sectors and multidisciplinary approach to problems. References Conrady, R. & M. Buck (2007). Trends and Issues in Global Tourism 2007, Springer, Berlin. Evans, N. et al. (2007). Strategic management for travel and tourism, BH. Goeldner, C.R. (2006). Tourism, Principles, Practices, Philosophies. Grigoresku, A. (2006). Public and private affairs marketing in rural tourism development, Tourism and hospitality management, 18th biennial international congress, Faculty for tourism and hospitality management, Opatija. Group of authors, (2007). Basic principles of Hospitality in Small Size Rural Tourism Enterprises, School of Business Administrations Turiba. Hajdaa Don i, S. et al. (2007). Cluster  model of interreginal linking of continental agrotourist destination, Acta Turistica Nova, Vol 1 (2007), No 1. Hajdaa Don i, S. et al. (2007). Innovative tourist products, Acta Turistica Nova, Vol 1 (2007), No 2. Ispas, A. & N. Petcu (2006). The application of the concept of quality integrated management to rural tourism destination, Tourism and hospitality Management, 18th biennial international congress, Faculty for tourism and hospitality management, Opatija. Istra~ivanje mogunosti razvitka sela i seoskog prostora na podru ju Zagreba ke ~upanije, Program ruralnog razvitka 2006.  2013. Agronomski fakultet Sveu iliata u Zagrebu. Jafari, J. (2003). Encyclopedia of tourism, Routledge.N.Y. Kuaen, E. (2002), Turisti ka atrakcijska osnova, Institut za turizam, Zagreb. Marketing plan Istre za 2008. godinu, TZI}. McKercher, B. & Du Cros, H. 2002. Cultural tourism: the partnership between tourism and culturale heritage management, Haworth Press, New York. Murphy, P.M. i Smith, B., (2000). The Destination Product and its Impact on Traveller Perceptions, Tourism Management, Vol 21, br. 1, str. 43-52. Porter, M. (1998). The Competitive Advantage of Nations, The Free Press, N.Y. Radiai, F. (2001). Istra  Istria, Turistiaka monografija, Turisti ka naklada d.o.o., Zagreb. Reid, D. (2003). Review of M. C. Escher's legacy: A centennial celebration. Nexus Network Journal, 5(2), Shaw, G and Williams, A. (2002). Critical Issues in Tourism, Blackwells (2nd ed). Stu@@@Z@g@@@@@AAAAAA;BBBLCNCCpDrDʿzsk_kS_F_k_h{CJH*aJmH sH h{CJaJmH sH h{CJaJmH sH h{CJaJ h{5;h{CJaJmHsHhJhJOJQJ]aJ)hJh{B*OJQJaJnHph333tHhJOJQJ]aJhOJQJ]aJhSh{CJaJhQ{h{B*CJaJph%hQ{hQ{B*CJaJnHphtH%hQ{h{B*CJaJnHphtH@@AAAAAA:B;BBBBBCCpDrDEE?F@F>G?GZI\IIo#so#so#so#so#o#o#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#s$a$ $7$8$H$a$ C"7$8$H$rDDEE@FFFFH\IIInJrJJJJJJJJK KKtK巪{iYiYiYiYMh{B*CJaJphh{B*CJaJmH phsH "h{B*CJ\aJmH phsH "h{B*CJ\aJmHphsH!h{CJOJQJ\aJmHsHh{CJaJmHsHh{CJ\aJmHsHh{\mHsHh{CJaJmHnHsHtHh{CJH*aJmH sH h{CJaJh{CJaJmH sH hXXh{CJaJmHsHIIpJrJJJKKM MMM|N~NROTOOO\\8]9]w]x]'^C^_^o#o#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#so#v:gds $7$8$H$a$`$a$tKKLL MMMMMMMMMMNNNNNN2N6NDNFNJNLNZN\N^N`NbNdNfNlNxN~NNNNNNNNNNNNNNNNNNNNNNNOO O"O0O2O@OFONOPOTOh{CJ]aJmHsHh`h{CJaJmHsHh{CJaJmHsHh{CJ]aJh{CJaJh{B*CJ\aJphDTO\O`ObOdOjOlO|OOOOOOP\\\\\\\\\7]9]v]]]&^'^(^)^*^˺Ӏtjf^hSmHsHhSjhS0JUh{CJaJmHsHh{CJaJmH sH !hyh{0JB*CJaJph#j:hyh{CJUaJhyh{CJaJjhyh{CJUaJUh{CJaJh{CJaJmHsHh{B*CJaJmHphsHh{B*CJaJmH phsH art A. Rosenfeld (2002). Creating Smart Systems A guide to cluster strategies in less favoured regions (European Union-Regional Innovation Strategies)  HYPERLINK "http://www.rtsinc.org" www.rtsinc.org Swarbrooke, J. (2007). The development and management of visitor attractions, second edition, Elsevier. Theobald, T. (2005). Global tourism, Third edition, Elsevier. Vaugeois, N. i R. Giele. (2006). Gem of the Gulf: Community based tourism on Hornby Island, British Columbia, Malaspina University-College, Tourism Research Innovation Cases.  Stimulation for success  Under century-old roofs Mass tourism is currently dominant on the market, and is considered to be the main problem for low revenues and irrational usage of natural resources.     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