Tourism and agriculture, missed opportunities Nine O’Clock February 29, 2008
The poor management of touristic potential and the lack of strategies in the sector of agriculture have led to a notable decline of attractiveness in what regards the foreign investment, ‘Adevarul’ daily informs. The 2008 Oxford Business Group Report that has been recently released in Bucharest identified tourism and agriculture to have been Romania’s ‘missed opportunities’. ‘Tourism should contribute at least 5 per cent to the Romanian GDP instead of just 1 – 2 per cent as it now does. There is a big resources that can attract a lot of foreign currency in cash and more foreign capital, but the management of the sector ahs been a bad one’ said Paulius Kuncinas, regional editor for Oxford Business Group for Eastern Europe on the occasion of the launch of the EGB Report. He noted that ‘it is inexplicable and hard to imagine why a country like Romania, with such an important natural and historic potential, attracts so few travellers. I think that is the most important opportunity that ahs been missed’. Romania ahs become the number one destination of FDI of all the new EU member states, but the figure may start dropping this year. ‘Appetite for investment drops in Romania, not just because domestic developments, but also because of the international context’ stated Paulius Kuncinas.
The OBG editor pointed out that Romania remained one of the most attractive emerging markets, something that is visible through the massive investment in retailing, banking and even in the Nokia relocation of production.
Among opportunities, we remind of the access to export markets and the enlargement of the local market. In what regards the risks posed by the Romanian market, I would recall the volatility of the exchange rate and the risks of the financial market. At a micro-economic level, a risk may be the situation with the labour force’ concluded Kuncinas.
The Association of Financial Bank Analysts of Romania (AAFBR) that has been recently founded wants to be an advocate of the improvement of the financial and banking legal framework and of stimulating debating with regulatory bodies such as the Romanian central bank (BNR) and the Ministry o the Economy and Finance. The four founding members of the association are Lucian Anghel (BCR Chief-Economist), Florian Libocor (Chief-Economist with BRD), Ionut Dumitru (Chief-Economist with Raiffeisen Bank) and Radu Craciun (Investment Director with Interamerican Pensii Private).
by Sorin Tudor
Capital investments in Romanian tourism to reach 1.5 billion US dollars in 2006 ING News – Apr 3 2006 5:11PM
According to a report on Romanian tourism carried out by the World Travel & Tourism Council (WTTC), investments in tourism and travels in Romania will reach this year 1.5 billion US dollars (5.3 billion lei), accounting for 7.2 percent of the total capital investments. The investments will envisage tourism facilities, but also public, personal and commercial travels, the equipment and infrastructure of residents, tourism companies, agencies and government agencies. In the next ten years, the contribution of the tourism and travels sector to Romania’s account of capital investments is expected to rise in real terms by an average yearly rate of 6.2 percent. Globally, capital investments in tourism and travels are expected to generate 9.3 percent of this year ‘s aggregate investments and to grow by an average of 4.6 percent. In the European Union, the capital investments in tourism and travels will account for 8.6 percent of this year’s aggregate capital investments and are expected to grow in real terms by a rate of 4.2 percent in the next decade. According to WTTC, “capital investments in Romanian tourism and travels are expected to rise constantly and significantly, as the country’s economic transition will continue.” With this year’s projected investments in tourism & travels accounting for 7.2 percent of total investments, Romania holds the modest 138th position in the global hierarchy of 174 countries. However, growth forecasts for investments in tourism in the next decade place Romania third in the region, after Montenegro and the Czech Republic and 21st on the global list. “This classification sends a positive message to the domestic and foreign tourism operators about Romania’s good position and its trustworthy expectations to draw in major new businesses,” asserts the WTTC report.