The Influence of Public Intervention on Market Structure and Governance: Case Study of Tourism, the Czech Republic

Abstract:

Tourism market on the side of tourism supply is characterized by a large number of small and medium-sized enterprises that realized its business in a cross sectoral industry. One of the specifics of tourism services is their easy imitation, significant dependence quality of services to the human factor, demand is often determined by fashion trends and tourism industry is heavily influenced by political and security situation in the region. Tourism is, from an economic perspective, an essential good, which carries a higher sensitivity to the economic situation of the country, the purchasing power of the population, the development of exchange rates, political stability and last but not least, the amount of leisure time site.

Changes in the tourism market are shown on the case of the Czech Republic respectively on the South-West Cohesion Region. Tourism industry has become supported by the EU Structural Funds in the period 2007 - 2013, into which flowed through a billion Czech crowns. Expected effects were increasing the attractiveness of the Czech Republic and the Czech regions as attractive tourist destination, improve services, particularly an increase in quality accommodation facilities and improve management system of tourism on the regional level. Expectations from the state were focused mainly on increasing revenues from tourism and, of course, increase the number of jobs in tourism industry.

The aim of this paper is to show, using the tourism market as an example, whether financial support has led to the fulfillment of the basic indicators, and whether it led to restructuring of the market and the creation of a healthy environment with emphasis on quality and new concept in tourism management on the regional level. Specifically, the NUTS II South-West Region in the Czech Republic was analyzed and evaluated.