Lessons from planning in Yugoslavia's tourist industry

The post-war history of tourism in Yugoslavia is briefly described. Three main conclusions are: (1) that uncoordinated development of a tourist sector can lead to gross imbalances between, for instance, parts of the country or the kind of tourist being attracted; (2) that providing the right incentives can lead to rapid growth in tourism; and (3) that the direction in which such incentives can move the industry is not always the ideal one. These and other lessons may be relevant to other countries building up their tourist sectors.