STATE AUDIT OFFICE

Press release -

Skopje, 10 August 2022

 

Low implementation of government measures in tourism sector

 

Absence of timely, consolidated and clear data on allocated financial support made it impossible to make timely and efficient analyses on the effects of government measures in the tourism sector

 

The State Audit Office carried out performance audit on the topic “Effectiveness of measures taken and policies for reducing effects of the pandemic in the tourism sector” in line with SAO Annual Work Program for 2021.

The audit objective was to answer the question “Are measures and policies taken by RNM Government and competent institutions in the function of developing tourism and reducing effects of the pandemic crisis in the tourism sector?”

The auditors concluded that creation of measures and policies should be carried out with medium and long-term strategic planning at national level by defining goals and priorities. In addition, it is necessary to make analysis on the impact of measures, which would ensure monitoring of the efficiency of measures’ implementation and provide future directions for action.

The absence of timely, consolidated and clear data on the granted financial support makes it impossible to prepare timely and efficient analyses on the effect of measures in the tourism sector.

The auditors found low degree of implementation of the measures in the tourism sector as presented in the table.

The low degree of realization of measures does not correspond to the objectives set for dealing with the pandemic crisis.

With regard to the legal framework that regulates tourism sector, auditors identified the need for amendments due to difficulties in the implementation of the legal solutions, which leads to more difficult realization of tourism development programs.

With the analysis of the National Strategy for Tourism Development 2016-2021 and the Action Plan 2019-2021, we found that the implementation of planned activities is not monitored and there is insufficient level of implementation of Action Plan activities, which affects planning, creation, adoption and implementation of policies and measures in the field of tourism.

Concerning realization of program activities of competent institutions in the field of tourism, we identified continuous reduction of funds for this purpose in the period 2018-2021, with the exception of 2020.

In addition, auditors identified the need of improving institutional capacity, cooperation and coordination of activities at central and local level and setting up Tourism Committee as a body of highest rank responsible for tourism in the country.

With the termination of the Coordination Body for Tourism, there is no full coordination between institutions and holders in the tourism sector, and individual action has reduced the influence of the sector in creating intervention policies for dealing with COVID-19 crisis, type of measures, their timely adoption and fast realization.

Regarding economic measures for dealing with the pandemic, we identified absence of documentation for prior analysis and assessment, which serve as basis for planning scope and necessary funds for each economic measure, and conditions and criteria for allocation. The absence of analysis of the impact of measures and defining objectives to be achieved in the short, medium and long term makes it difficult to monitor the success of their implementation and lack of future guidance for action.

RNM Government has not set up a system for monitoring each measure separately. Central database has not been developed and published with information on the level of realization of each individual measure with data on planned funds, number of business entities and citizens for which the measure is intended, sources of funds, degree of utilization and unused funds, reasons for non-realization of the measure.

Regarding control over fulfillment of conditions for granted financial support to travel agencies from the sixth package of measures, it was concluded that the manner of control has not been defined, no competent institution has been selected to perform the control, and no measures have been defined in case of non-compliance with criteria and not refunding of the financial support.

Auditors obtained reasonable assurance that RNM Government through the adopted anti-crisis measures for support of economy/tourism sector with focus on the citizens, their jobs, social security, solidarity and creating environment for easier overcoming of the economic consequences of the corona virus, as well as the program activities of competent institutions for tourism had partial impact for efficient dealing with the consequences of the pandemic and for reducing the effects of the crisis in the tourism sector.

 

Press contact:

Albiona Mustafa Muhadziri +389 72 228 203 [email protected]

Mijalche Durgutov +389 70 358 486 [email protected]

Martin Duvnjak +389 75 268 517 [email protected]