The Institutional Support For Tourism Development In Austria

In 1980 the world tourism conference was held in Manila and its participants approved the declaration in order to clarify the genuine nature of tourism in a dynamic and globally transforming environment. Moreover, the declaration also focused on the responsibility of states for the development and enhancement of tourism in contemporary societies, as it is the economic benefits that are crucial drivers for tourism development. Tourism is considered an economic activity effecting directly social, cultural, educational and economic sectors of countries worldwide. The development of tourism is associated with the social and economic development of the states. Tourism is the largest service based industry contributing significantly to the service sector growth. In developing countries, the service sector creates around 40-50 percent of GDP and in industrialized economies it is approximately about 70-80 percent of GDP. Austrian tourism strives to be successful in providing high standard services. It has been enabled with the support of the state, regional governments and EU structural funds. The objective of the paper is to study and analyze the support for Austrian tourism from the perspective of functioning Austrian institutions, such as Austrian Ministry of Science, Research and Economy, Austrian Hotel and Touristic Bank, European Investment Bank, and in addition the paper also emphasizes other indirect forms of assistance and supportive programs. The instrument of the state investment aid is also a beneficial tool in the process of financing of many projects in this area together with the EU structural funds. In the end, the accomplished results so far, in the area of an Austrian tourism service sector, are presented and assessed and pros and cons are summarized and may serve or be an inspiration for many countries.