Theoretical Section.

Definition of Rural Tourism The activities of a person travelling and staying in rural areas (without mass tourism) other than those of their usual environment for less than one consecutive year for leisure, business and other purposes (excluding the exercise of an activity remunerated from within the placed visited). (source: Eurostat. 1998. Community Methodology on Tourism Statistics. European Commission. Luxembourg). Rural tourism is a kind of tourism, which aim is, based on local, social, cultural and natural resources, to offer possibility to tourists have leisure or use tourism accommodations in rural areas. (reference to “Latvian Tourism Law”)

Concept of Rural Tourism Rural tourism encompasses all tourist activities and recreational experiences that occur in nonurban, populated areas. It offers opportunities for tourists to experience people, events, culture, cuisine and crafts that are not available in cities and larger towns. The concept may be considered to be an off-shoot of Ecotourism - travel that is mindful of the impact it has upon the environment and culture of the destination visited. The year 2002 was declared the International Year of Ecotourism (IYE) by the World Tourism Organisation (WTO) and the United nations Environment Programme (UNEP). The WTO has rated Rural Tourism as one of the fastest growing segments in the tourism industry, with an annual growth of 5 per cent worldwide and representing 6 per cent of the world GDP. (reference to WTO)

Facts about rural tourism development European Federation of Farm and Village (EuroGites) has summarized the importance of rural tourism in Europe, which is produced approximately each year, with the following figures: •

more than 400 000 accommodation units

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more than 3 600 000 bed places

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approx. 900 000 direct or indirect jobs

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more 150 000 million EUR income

Benefits of rural tourism In some regions in the world, where farming is not the main activity due to some geographical reasons, tourism companies try to develop rural tourism, and therefore benefits for local communities are generated due to this development. It gives a chance for some very poor countries like India, Africa and a lot more, to receive additional benefits which rural tourism is very likely to generate.

Opportunities for the rural tourist Rural tourism gives opportunity to enjoy it in a different ways, no matter the gender, age or nationality of tourist. For example, some of us has got tired of the big city life and is seeking to

enjoy some peaceful and quite life, so rural hotels and villages can make your will to become reality; others can make a trip with a cultural purposes, because a lot of rural houses offer to experience the real village culture and cuisine. In fact, rural tourism gives a lot of opportunities to enjoy some sports, like biking, diving or horse riding.

Critical points of rural activity Some of the critics put their opinion about the rural tourism as a way to decrease rural recession. Despite that, rural tourism will hardly become a main income for villages, but at the same time it gives a lot of possibilities for some extra benefits for rural communities. Other critics point out that the rural tourism will generate a negative impact for rural areas, by huge development of tourism facilities and infrastructure. In fact, some scientists say, that rural tourism can become it's own enemy, by causing a lot of problems for such sensitive and unspoilt areas.

Positive impacts Mainly, rural tourism is producing the following positive impacts, which are: •

Economical (ex. job creation)

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Good funds for preservation of the environment

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Socio – cultural exchange

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Development of the local governments

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Creation of special natural protected areas

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Improvement of the infrastructure (ex. roads, medical assistance services, natural reserves)

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Educational

Negative impacts On the other hand, rural tourism can generate some negative impacts, such as: •

Lack of one structured system to control rural tourism market

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Pollution of the rural areas

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Critical number of tourism carrying capacity

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Disappearance of local traditions in the rural areas

Principles of sustainable tourism 1. Sustainable use of resources 2. Reduce over – consumption and waste 3. Responsible tourism marketing 4. Preservation of nature

5. Sustainable tourism planning 6. Supporting local communities 7. Trained and professional staff 8. Consulting stakeholders and public (reference to “Beyond the Green Horizon: principles of sustainable tourism”, Tourism Concern/WWF, 1992)

Rural tourism organisations and projects •

EUROGITES – European Federation of representative provider organisation in Farm – and Village tourism in geographical Europe (25 member countries in Europe).

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ECEAT – European Centre for Ecological and Agricultural tourism. It is the leading European organisation in the field of small – scale sustainable tourism with a special attention to rural areas. It offers more than 1300 small – scale accommodations and tourist services all over Europe. Is on the tourism market since 1994.

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ERTD – European Rural Tourism Development. ERTD is a collaborative partnership between 13 training institutions and public or private agencies. The project is supported by the European Union through the Leonardo da Vinci programme, with aim to improve the tourism educational systems in Europe.

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WWF – (formerly, known as World Wildlife Fund) is one of the world's largest and and respected independent conservation organizations which was fund in 1961, which aims to conserve world's biological diversity, ensure that the use of the natural resources is sustainable and promote the reduction of pollution and wasteful consumption.

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AMBER – Rural Tourism project with support from European Commission. It aims to develop self – learning programme on vocational level for the rural tourism sector.

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LAUKU CELOTAJS – Latvian Country Tourism Association was fund in 1993, in Latvia. Its main tasks are to develop rural tourism product, control quality, provide training and consultations, promote rural tourism and collaborate with international rural tourism organisations to improve rural development in Latvia.

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TAVA – Latvian tourism development agency. It is a governmental agency under the supervision of Latvian Ministry of Economy which aims to promote and develop tourism in Latvia.

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VRAA – State Regional Development Agency is a national regulatory authority, which promotes Latvian regional development. It works under the supervision of Ministry of Regional and Local Governments and co – operates with European Union Structural Funds.

Rural tourism in Latvia Rural tourism in Latvia is a form of tourism taking place in rural areas or settlements, providing employment and income to local population, and offering individualised holiday products to consumers. Rural tourism is based on accommodation service which is complemented by additional services or acilities relying on the local social, cultural and natural resources, which are exploited according to the principles of sustainable development. (according to Latvian rural tourism organisation “Lauku celotājs”, it is shown in the Fig. 1.1. Description of the products used to determinate Rural Tourism in Latvia.). Fig 1.1. Description of the products used to determinate Rural Tourism in Latvia. Product

Accommodation

Country and village homes, vacation cottages with accommodation capacity up to 20 bedplaces. Number of extra bedplaces up to 50% of the number of permanent bedplaces. Catering for parties and mass tourism events is not the main focus of the accommodation establishment. Food service, sauna, excursions, country meals from local products, nature trails, holiday activities, etc.: 1) Recommendable activities (complying with principles of sustainable development): eg., horse riding, boat rent, bicycle rent, fishing, cross-country skiing, skating, etc.

Additional 2) Non-recommendable activities (contradicting to the principles of services/facilities sustainable development): - Mass tourism and recreation, e.g., sports halls, sports centers and sports grounds, mass sports competitions, organised games – paintball, camps., etc.; - Forms of tourism or tourist activities bringing negative environmental impact, e.g., golf, off-road, water skidoos, downhilll skiing, etc. Location Rural areas and settlements with up to 5000 inhabitants. Rural environment with a caharacteristic agrarian landscape or natural values. Tourism is not the only or dominant economic activity in the area. Area Inadequate location: - urban or industrial area - mass tourism environment with respective infrastructure - noise, risk/danger to safety and health, pollution, dirtiness, etc. Resources Social resources Local cooperation – between accommodation owners, traditional and non-traditionl farms, craftsmen, open farms, bird and animal watching, local products for sale. Opportunities for tourists to meet with local people. Rural tourism establishments are owned by local

entrepreneurs which provides for income and jobs for the local population. Maximum relation "tourist beds / inhabitants in the respective area village, town, rural municipality)" is 1/1. Traditions and customs reflecting cultural identity and values – traditional festivities, food recipes, music, traditional crafts (e.g., Cultural resouces pottery, beer brewing, etc.). Traditional architecture, private collections, etc. Waters, forests, meadows, bogs, rural landscape, flora and fauna. The Natural resources environment is not industrialised/urbanised. Biological diversity is mainatined in surrounding areas. Sustainable development Development of rural tourism in particular area does not threaten the above described natural, cultural and social resources, at the same time stimulating economical development and increasing the quality of living space of the local population.

Development of Rural Tourism in Latvia 1990 Collective farms disappear, giving a possibilities for private farms to develop Farmers start to offer rooms to tourists, looking for an extra incomes 1993 Rural Tourism Association „Lauku ceļotajs” has been fund, which gave possibilities to Rural Tourism to develop: Creation of the databases Elaboration of quality systems Marketing and promotion starts Creation of reservation office 1993 – 1996 Development of serviced accommodation (Bed & breakfast services) Main features: accommodation only in the owners house (sharing WC and shower); poor investments in furniture and equipment Self – service cottages Main features: operation mainly in summer season, because of the lack of heating systems. 1997 European Union and National subsidies become available Development of Bed & breakfast services

Main features: investments in renovations and new constructions; separation from the owners houses; special attention to furnishing and equipment Self – service cottages Main features: special attention to the customers demand of privacy – as a result new constructions are building; good equipment of the kitchens and heating systems Offer of the private party facilities (as the weddings, parties and company's meetings)

Facts and figures Fig. 1.2 Number of accommodations and bed places in countryside of Latvia (according to the Latvian Country Tourism Association “Lauku ceļotājs” statistics)

3790

Accommodations Bedplaces

4137

3154

1880

416

20 1994

200 70 38167 46 1995

1996

1997

494 98 1998

732 116 1999

172 2000

210 2001

240 2002

275 2003

In the following figure 1.2. Number of accommodations and bed places in countryside of Latvia, we can observe how the situation during nine years (1994 – 2003) has been successfully changing for the Latvian rural enterprises. Firstly, due to the increased level of Bed & Breakfast services and secondly, to the European Union and National subsidies. This development of the Rural Tourism in Latvia has given a lot of possibilities for diversification of rural economy, agricultural production and farming, and have increased interest of society about this new trend and as a result, type of tourism.

Fig 1.3. Proportional division of spent nights by countries in the countryside of Latvia (according to the Latvian Country Tourism Association “Lauku ceļotājs” statistics)

Foreign tourists Local tourists

18%

16% 29%

31% 39%

82%

1999

84% 71%

2000

2001

69%

2002

61%

2003

It is seen in the Fig 1.3. Proportional division of spent nights by countries in the countryside of Latvia, that during five years (1999 – 2003) the percentage of foreign and local tourists spending nights in the countryside of Latvia has been grown considerably. As an example, we can observe that proportion of the main tourist flow visiting and staying at the rural areas of Latvia was 4:1, which means that there were four times more foreign tourists in the countryside of Latvia than local tourists. But due to the facts, that Latvian economy has been developing fast and new trend of a healthy rural tourism became more and more popular, and as a result more demanded, already in the year 2003 proportion of foreign and local tourists has been changed to 3:2, which means, that almost a half of the tourists spending nights in the Latvian countryside are local tourists.

Main distribution channels Rural Tourism product in Latvia According to the previous section it becomes obvious that Rural Tourism product has become considerably more demanded, so as a result, new and already existing distribution channels of this particular product in Latvia have been developed. Firstly, to make the picture more clear, I would like to characterise traditional distribution channels for tourism product in general. Which are the following: