TRANSITIONAL PRIVATIZATION OF TOURIST ENTERPRISES – THE MAIN REASON FOR NON-COMPETITION AND SLOW TOURISM DEVELOPMENT IN THE REPUBLIC OF MACEDONIA

Abstract

After the 1991 there’s a period of economic transition and structural reforms in all spheres of the economic system and creation of a new integrated market economic system in the Republic of Macedonia. The transition process has opened the issue of privatization of state and community property. Privatization in the Republic of Macedonia has not produced the expected results in efficiency of privatized enterprises. In the period after the political independence of the Republic of Macedonia, tourist enterprises develop in market conditions. Tourist agencies, hotels and restaurants which before 1991 were state-owned, they are transformed into private enterprises, some of them were closed, but also built new hotels and accommodation facilities in smaller size and usually family business. These restructuring in the tourism sector brought with them a series of problems that will be presented in a paper. The problems that arose as a consequence of privatization contributed to a slowdown in tourism development and reduced competitiveness of the Republic of Macedonia as a tourist destination.