EU Fund's Assets in the Function of Rural Tourism Development in Croatia

Rural tourism in the Republic of Croatia as a special type of tourism was operating and organized in the nineties of the last century. Since then, the number of registered tourist farm families at the state level is constantly in a slow, but upward trend. In the total revenue from tourism in Croatia, rural tourism is only 1% of revenue. It is estimated that rural tourism, including mountain areas, participates in total international travels with a share of about 3%, with annual growth of about 6%. Faced with underdeveloped domestic demand and inadequate environment, Croatian tourism offerings are developing extremely slowly. The only exception is Istria, and, to a certain extent, the Osijek Baranja County”1 This is far below the opportunities that exist in rural tourism, given that in the Republic of Croatia there is predominantly rural space, which accounts for about 93% of the total area. Rural tourism is defined by the natural and cultural resources in the rural area, and these resources represent the basic basis for further rural development. It is considered that rural tourism is one of the most promising complementary economic activities in Croatia and that its sustainable development needs to be continuously and planned. By joining the European Union, Croatia has opened up the possibility of funding various areas and projects from European structural and investment funds, and thus financing rural tourism. In the pre-accession period, an IPARD program was available. By joining the full EU membership, the EU Rural Development Program gets new opportunities with a total allocation of EUR 2.383 billion for the Republic of Croatia. Taking into account the contracted investments and the amounts paid out of the IPARD program as well as Measures 6 and 7 of the Rural Development Program, the largest absorption of funds is recorded by the Istarska County, then Osijek Baranja and Dubrovačko Neretvanska Canton. Although the trend of “withdrawal” of funds from EU funds is increasing, additional efforts should be made to finally use rural tourism systematically to revitalize the peripheral and less developed rural areas of Croatia. In line with Croatia’s Tourism Development Strategy 2013 - 2020, the dynamic development of Croatia’s rural tourism will be the result of a stimulating business climate, responsible destination management and a high level of involvement and dedication of all tourism policy holders at the national and regional level. In order to achieve these strategic goals, it is necessary to first and foremost intensify the implementation of major strategic projects with a special emphasis on capital investment. Therefore, the aim of this paper is to analyze the role of EU funds in the development of rural tourism in the Republic of Croatia. Certain scientific methods have been used in this paper: desk research for collecting secondary data sources, methods of analysis and synthesis, and methods of comparative analysis.