Governmental Investments statistic and tourism at the Balkans

Abstract

The Balkan region has proved to be a controversial territory. Through a long history and many controversies, the area rose to a popular destination. Common and uncommon elements make it a unique destination. Tourism has provided a sustainable source of revenue, as in every destination. Public investments are an important element of every activity to flourish and to bring private investments. Through public investments in infrastructure, superstructure, and education, we can provide a better tourist experience. In our paper, we discuss 5 countries of the region, Greece, Serbia, Bulgaria, Montenegro, and the Republic of North Macedonia. All of these destinations drew the attention of other countries and investment institutions like China and Russia. To take a look at public investments and tourism development, we compare core national accounts like the Gross Domestic Product (G.D.P.), Gross Capital Formation (G.C.F.), Gross Fixed Capital Formation (G.F.C.F.), and the inbound tourism at under investigation countries. Data indicate that there was a slowdown in each country’s economy during COVID-19 but then the production increased (Gross Domestic Product (GDP)). The Gross Capital Formation (G.C.F.) has a stable rate for the first years and then increases for each country. Data for the Gross Capital Formation (G.C.F.) for the tourism industry exist only for Bulgaria and show a decrease and a negative Gross Capital Formation (G.C.F.) indication that assets must have been sold. Data for the Gross Capital Formation (G.C.F.) for the transport equipment and total construction have fluctuations without extreme increases or decreases, showing a stable rate of asset accumulation. The findings from the research conclude that till COVID-19 all the economies had a stable rate of growth, and the decrease in tourism activity had a small impact on the decrease of Gross Domestic Product (GDP), except Bulgaria all the other economies slowed down during COVID era, Gross Fixed Capital Formation (G.F.C.F.) for Montenegro and North Macedonia remained stable for the period under study in contrast of the rest countries that were exhibiting a rise from time to time, the general Gross Capital Formation (G.C.F.) accounts always indicate growth in contrast to sectional accounts as they the total accumulated investments or production. Finally, there is insufficient data for the Gross Fixed Capital Formation (G.F.C.F.) for hospitality and tourism which does not allow the researchers to make any assumption with robust data for either the investments or the capital that occurred in other to be invested in the future.