INNOVATION IN TOURISM: PERCEPTION OF TOURISM PROVIDERS FROM CROATIA AND SERBIA

Innovations represent a challenge that every company faces during its life cycle no matter what kind of business sector it operates in. In today’s world of competition and fastgrowing industries, it is paramount to be innovative, especially in tourism. The main aim of this study was to determine how businesses and their employees in two countries - Croatia and Serbia, are directed toward new innovations, which innovations are most important to them, what are the main barriers to implementation and if there is a difference between innovation implementation in those two countries. For this purpose, the study was conducted in 13 tourism companies in Croatia and 20 in Serbia, in the period July-October 2016. The results indicate that companies in Croatia (M=3.86) are more open to innovations than Serbian tourism companies (M=3.50). Furthermore, the study showed that respondents have similar wishes and motives when implementing new ideas or innovations, such as educated workforce, health and well-being of people or improved business management. However, when it comes to key areas for innovation implementation, in Croatia emphasis should be on training and education of the workforce, while in Serbia emphasis should be placed on the introduction of new technologies. In addition, the key limiting factors of innovation implementation that stood out only in Serbia are lack of funds and poor ownership structure. However, there is willingness to implement innovations and readiness to work towards it. Education and a capable workforce are deemed essential to accomplish and implement new innovations in most companies