IDENTIFYING THE IMPACTS OF NPOs ON TOURISM IN ORDER TO INCREASE THEIR FINANCIAL SUSTAINABILITY

Abstract

NPOs as associations of citizens gather individuals with the same or similar interests who come together to solve some present social problem. While having positive impact on life quality of a particular community, in a tourist destination they potentially improve the diversity and quality of tourist offer. Purpose -The purpose of this paper is to determine the direct and indirect impact that NPO's activities have or may have on tourism, to point out the possibility of funding their work through tourism and that way increase the level of self-earned funds and decrease their dependence on public funds. Methodology -Direct and indirect impacts of NPOs on tourism have been delimited according to the scope of activity by Register of Associations (NPOs). Data of the number of registered NPOs were compared with the tourist traffic in four major Croatian destinations by using a simple linear regression model for each of the four destinations. The four models were estimated using the OLS method. Findings -The results show that the number of NPOs has a significant influence on tourism traffic (tourist arrivals). Future research should focus on the defining the models of NPOs' funding trough tourism in order to increase their financial sustainability. Originality of the research -This paper improves the existing knowledge with new theoretical contribution about the influence of NPOs in the field of tourism. The linkage between NPOs and tourism traffic was empirically tested on the sample of four major tourist destinations in Croatia. The paper provides the basis for NPO's board members for reconsidering their positon within the tourism system and finding innovative and creative ways of connecting their activities with tourism for funding purposes.

Improving the financial sustainability of nonprofit organizations through tourism‐related activities

“…The primary research group, formed on the basis of two criteria, is made up of:Nonprofit associations that, with regard to the types of activities they engage in, are listed in the Register of Associations of the Republic of Croatia under one of the fields of activity that have a direct or indirect effect on tourism: cultural associations, sports associations, associations engaged in the field of hobby activities, environmental and nature protection, health protection and sustainable development (Dadić & Maškarin Ribarić, 2017). Nonprofit associations that are registered in territory of one of the four most developed Croatian tourist destinations in the past 10 years in terms of tourism traffic.…”

“…On the one hand, NPOs influence tourism development through their work and the wide range of their activities and, on the other hand, the tourism industry provides NPOs with opportunities to finance the work they do. The activities that NPOs undertake in the tourism industry can have a direct as well as indirect impact on tourism and can enable NPOs to generate income directly and indirectly through tourism (Dadić & Maškarin Ribarić, 2017). Direct sources of NPO funding through tourism refer to the tourism‐related economic activities of NPOs through which income is directly generated.…”

Self-funding as a key element of financial sustainability of non-profit organizations

“…U novije vrijeme, govori se o mogućnostima samofinanciranje neprofitnih organizacija i putem turizma, povezivanjem aktivnosti udruga sa turizmom (Dadić, Maškarin Ribarić, 2017).…”

Npo Fundraising Through Tourism

“…Given the wide range of possibilities for associations to operate in tourism, it is of particular importance to detect possible impacts of associations' activities on tourism. In that context, Dadić and Maškarin Ribarić (2017) have detected direct and indirect impacts of associations on tourism. Direct impacts of associations on tourism refers to all the associations' activities that can be directly related to tourism and are most commonly carried out by the associations in the field of culture and art, hobby activities and sports associations.…”

“…This paper explores non-profit organizations and their relation to tourism as a possible source for financing their activities. Dadić and Maškarin Ribarić (2017) have identified opportunities for reducing the dependence of associations on grants by connecting the associations' activities with tourism and in doing so have detected the potential influences of associations on the tourism development of a destination. They point out that associations that perform their activities in tourism have numerous opportunities to finance their own activities, and these possibilities particularly refer to associations whose activities bring them closer to tourists, such as cultural and sports associations, sustainable development associations, etc.…”