Digitalization, Communication, and Nautical Tourism 6x9

DIGITALIZATION, COMMUNICATION,
AND NAUTICAL TOURISM
MAIN AUTHORS
Đorđe Nadrljanski, Mila Nadrljanski, Mira Pavlinović
CONTRIBUTING AUTHORS
Branimir Jelavić, Kristina Vidović, Marko Košuljandić, Jelena Zanić Mikuličić, Marko
Nikić, Antun Čagalj, Petar Puljić, Tea Bakota, Ino Jurišić, Stipe Lozina, Ivan Brković,
Marina Vlaić
SUCCESS PUBLICATION
PREFACE
The book was created as a result of the expert conference on Digitalization, Communication,
and Nautical Tourism in 2021. In writing the book, we relied on the most successful works of
the authors who presented at the mentioned conference. The book is divided into seven
chapters:
In the first chapter, basic concepts of nautical tourism are discussed.
The second chapter deals with quality management in ship construction and servicing
processes.
The third chapter focuses on knowledge management.
The fourth chapter discusses socio-social changes on the Adriatic coast under the influence of
tourism.
The fifth chapter talks about the research of inspection and personnel management jobs.
The sixth chapter covers the development strategy of nautical tourism.
The seventh chapter discusses the cybernetic model of nautical tourism.
We thank all the authors who contributed to the quality of this book.
Authors
1. BASIC CONCEPTS OF DIGITALIZATION IN NAUTICAL TOURISM,
p. 1.
Professor Dr. Đorđe Nadrljanski, University College ARCA, dekan@visokaskolaarca.hr
Branimir Jelavić, MSc. Port Authority Split, brane.st3@gmail.com
Kristina Vidović, MSc. University College ARCA,
kristina.vidovic@visokaskolaarca.hr
2. QUALITY MANAGEMENT IN SHIP CONSTRUCTION AND

SERVICING PROCESSES, p. 25.
Marko Košuljandić, AZIMUT d.o.o., markokosulja@gmail.com
Stipe Lozina, University College ARCA, stipelozina5@gmail.com
3. KNOWLEDGE MANAGEMENT, p.101.

Professor Dr. Mila Nadrljanski, University of Split, Faculty of Maritime Studies,
mnadrljan@pfst.hr
Doc. Dr. Mira Pavlinović, University of Split, Faculty of Maritime Studies,
mpavlinovic@pfst.hr
Jelena Zanić Mikuličić, University of Split, Faculty of Maritime Studies, jzanic@pfst.hr
4. SOCIO-SOCIAL CHANGES ON THE ADRIATIC COAST UNDER

THE INFLUENCE OF TOURISM, p. 122.
Doc. Dr. Marko Nikić, University Adriatik Bar, manikic@gmail.com
Dr. Sc. Antun Čagalj, University College ARCA, ante0cagalj@gmail.com
Petar Puljić, MSc, petar.piljic@gmail.com
5. RESEARCH ON JOBS AND WORKING CONDITIONS OF

INSPECTION AND HUMAN RESOURCES MANAGER, p. 170.
Tea Bakota, prof. High School Split, tea.bakota@gmail.com
Ino Jurišić, MSc in Naval Architecture, Brodosplit, ino.jurisic@brodosplit.hr
6. NAUTICAL TOURISM DESIGN STRATEGY, p. 188.

Mr. Sc. Ivan Brković, University College ARCA, brkovic@viosokaskolaarca.hr
Marina Vlaić, graduate engineer of marine fisheries, marine traffic engineering - navigation
specialization, marina.vlaicst@gmail.com
7. CYBERNETIC MODEL OF NAUTICAL TOURISM ORGANIZATION,

p. 208.
1. BASIC CONCEPTS OF DIGITALIZATION IN
NAUTICAL TOURISM
Branimir Jelavić, MSc. Port Authority Split, brane.st3@gmail.com

SUMMARY
The significance of digitization is that it will change the business and strategies of boaters in
the future. First of all, the digitization of equipment generates a new business logic for
manufacturers and new business models for creating economic and social value. A wide range
of decision support systems for the optimization of ship operations, (nIS nautical information
systems)1 for port logistics support and tools for policy makers are the legacy of modern
digitalization of equipment. The future development of yachting tourism predicts that onboard
maintenance procedures will benefit from advances in the integration and automation of
control platforms. Technologies are constantly advancing and in an area like connectivity
where demand is growing, it's only a matter of time before innovative new options enter the
market. Technology and innovation, along with digital transformation, are top priorities in the
plan, participation in large projects of high technological complexity of systems and digital
platforms. Technologies are constantly advancing and in an area like connectivity where
demand is growing, it's only a matter of time before innovative new options enter the market.
Technology and innovation, along with digital transformation, are top priorities in the plan,
participation in large projects of high technological complexity of systems and digital
platforms. Technology and innovation, along with digital transformation, are the main
priorities in the plan to participate in large projects of high technological complexity. Digital
solutions are emerging that complement the traditional strategic orientations of existing
1
Using nIS applications significantly reduces the time required for the navigation safety service to react to
accidents or other extraordinary events at sea, it is easier to identify perpetrators of maritime violations, and
users always have accurate information about the state of the sea, they can contact the nearest emergency public
service, as well as ports, anchorages or similar in the exact location where it is currently located. Nautical
Information Service (nIS) is a multilingual free smartphone application published by the Ministry of the Sea,
Transport and Infrastructure of the Republic of Croatia intended for yacht managers
1
yachts. This is due to modern shipping companies that coordinate their business activities
through a combination of traditional and radical digital business models, in which digital
assets are the main strategic resource, together with traditional (analog) shipping business
models. Strategic embeddedness and digital leadership are decisive factors of digitization.
Opportunities for digital innovation are: digital transformation strategy, technology
partnerships, external and internal collaboration, technology standardization and new
business units and structures.
Keywords: digital technology; digital transformation; nautical tourism; Industry 4.0

technology;
1. INTRODUCTION
The main intention of the author with this work is oriented towards the development and deeper
understanding of digitalization technology and its implications on nautical tourism2, based on
available evidence. Despite increased awareness of the economic and ecological significance
of maritime and coastal tourism, significant research on the importance and development of
nautical tourism from various aspects has only emerged in recent years. The tourism sector has
undergone significant change due to advances in digitalization processes and the
transformation resulting from that progress. The aim of this research is to identify the factors
that drive the tourism industry to opt for digitalization and establish a hierarchical relationship
among them. The paper also aims to address how digitalization affects various stakeholders in
the nautical industry. Tourists have a strong dependency on information, whether it is for
communication or expression, but the traditional tourism industry cannot meet the needs of the
public. When discussing the role of nautical tourism, it should be emphasized that it is a
phenomenon that has recorded one of the highest rates of development in the European and
Croatian economy in recent years. These events are still in their early stages, but they indicate
an urgent need: the sooner advanced digital techniques are adopted, the better they will be able
to build, save lives, and limit environmental impact.
Terms such as: the nautical industry encompass boat production, equipment, trade, services,
and the nautical tourism sector, including marinas, boat charter/rental in coastal and inland
2
In foreign literature, in addition to the term nautical tourism, the terms marine tourism, yachting tourism,
sailing tourism, leisure boating, etc. are often used. Source: Strategy for the Development of Nautical Tourism
HR 1.pdf (gov.hr) for the period 2009-2019 .
2
waters, and water sports. This sector comprises 32,000 companies, over 95% of which are small
and medium-sized enterprises. They employ 280,000 people directly, with thousands more in
the supply chain. European regions that are coastal, peripheral, island-based, as well as those
with inland waterways and lakes, heavily rely on this industry. Approximately 48 million EU
citizens regularly enjoy boating and marinas, making it an attractive pastime3. Some of the best
nautical tourism destinations in the world4 include Croatia, the Netherlands, Australia, South
America, and the United States.
The SaMMY project5 has developed a unique marine application aimed at becoming a modern
communication and information tool for skippers, boat crews, and marina managers. The
application is offered to end-users for free on smartphones and mobile devices such as tablets
with Android or iOS operating systems. This project involves collecting several parameters to
address various issues related to marinas. For this purpose, three different types of Waspmote
Plug & Sense! Sensor platforms with a wide range of sensors are integrated into the
construction of wireless infrastructure.
In the material related to the Action Plan for the development of nautical tourism, it is written:
"The system of available data on yachting tourism in Croatia is not sufficient for proper
management and monitoring of the nautical/yachting tourism system. Therefore, it is necessary
to define the type and set of data to be monitored, the way they are collected, and
disseminated."6. Clearly, at that time, one sentence symbolically indicated the issue of
digitization in nautical tourism development. Nowadays, modern yachts must be equipped with
GPS, chartplotter, and AIS. All three of these tools are mandatory when traveling in open
waters to avoid accidents or mishaps on the way.7
In principle, yacht navigation equipment includes a speedometer, depth gauge, wind
instruments, autopilot, radar, GPS chartplotter, VHF, handheld compass, winch handles,
binoculars, navigation charts, nautical guides, divider, protractor, pencil, lighthouse
information, etc. Newer and larger charter boats are generally better equipped. Many of
them have additional equipment such as a bimini top, sprayhood, bow thruster, teak
3
Data taken from: office@europeanboatingindustry.eu
4
Source: 63 types of tourism in world practice:| Complete Guide - ColorWhistle Web Development Company,
Website Design Services B2B Digital Agency India (colorwhistle.com)
5
Source: SaMMY: www.sammyacht.com.
6
Cited by: Action plan for the development of nautical tourism: Program 4. Improvement of the information
base, Zagreb, 2015.
7
Source: https://ecdis-info.com/the-top-3-navigation-equipment-every-yacht-must-have/
3
deck, electric winch, cockpit GPS plotter, CD mp3 player, cockpit speakers, LCD TV,
DVD player, internet access, water tank, generator, heating, air conditioning, radar,
dishwasher, freezer, microwave, and more.
Digitalization is changing the entire perspective of tourism worldwide. Digital tourism is

implemented using information and communication technology in an effort to increase the
potential of tourist destinations, provide tourist services, and make tourist marketing more
accessible. Digital tourism leads to shifts in consumption patterns in the form of experiences
gained through travel activities in line with a lifestyle.
In the more recent version of the National Tourism Strategy (2009-2020) - Croatia and the
Action Plan for the Implementation of the Strategy, there is mention of the need for the
digitalization of tourism.8 However, digitalization is quite different from digital transformation.
Digital transformation and innovation are strategies for sustainable growth in nautical tourism.9
Digital transformation is conceptualized as a creative process activated by knowledge
management and knowledge transfer, aiming to create new business opportunities or models.
In reality, digital transformation requires nautical organizations to better cope with changes,
essentially making change a core competency as nautical tourism becomes end-to-end
customer-driven.
Nautical tourism attracts attention worldwide and is considered an important segment of

tourism in general. As a form of special interest tourism, it is very important for Croatia due to
the numerous benefits it brings. The development of nautical tourism in Croatia began
modestly in the late 1960s and is now a significant social category. Besides many positive
effects, especially socio-economic benefits, nautical tourism also poses challenges and
8
86% of Croatia is covered by a fixed broadband network of the new generation and is in the EU average,
however, when it comes to the widespread use of broadband access with a speed of 100 Mbps or more, Croatia
with a result of 6% is still significantly behind the EU average of 26 %. Source:
https://digitalna.vecernji.hr/#digital-sec
2
National tourism strategy (2009-2020) - Croatia. The Strategy contains the vision and strategic goals of the
further development of nautical tourism in accordance with the principles of sustainable development, as well as
the Action Plan for the implementation of the Strategy, which elaborates the measures, activities, carriers and
deadlines for the implementation of the Strategy for the period 2009 - 2019.
4
uncertainties regarding navigation safety, environmental protection, and coastal area
development, especially during the construction of nautical infrastructure.
Nautical tourism has experienced exponential growth on the European coast, and its importance
as a strategy for local development and diversification of the tourist offering is widely
recognized. The European nautical industry contributes to policies regarding nautical tourism,
given the importance of boating and water recreation (such as water sports) for the broader
tourist economy.10 Essentially, digital transformation is a reevaluation of how nautical brands
organize their structures and staff to leverage hyper-fast, sophisticated technology that can do
more and do it better. Based on a comprehensive coastal and maritime tourism strategy, the
European Commission has published a dedicated approach to nautical tourism.11 Europe
provides a perfect environment for over 48 million European boaters, along with nautical
tourists from outside the EU. Recreational vessels stationed in European waters exceed 6
million, compared to 4,500 marinas offering 1.75 million berths, according to "CNA Research
on Dynamics and Market Prospects of the Yacht Nautical Industry."12
It recognizes the potential of nautical tourism for employment and growth. The main proposed
actions include:
• Recognition of licenses for professional skippers
• Recognition of licenses for private skippers
• Safety equipment
• Integration of nautical, marinas, and the hinterland
• Cruising/used boats
• Innovation for the nautical industry
10
Development of the strategy is led by British Marine Scotland in partnership with the Royal Yachting
Association Scotland, Scottish Canals, and Sail Scotland, with the support of Stuart McMillan MSP, the
convener of the Cross Party Group on Recreational Boating and Marine Tourism. Source:
https://www.rya.org.uk/gbni/scotland/representation/marine-tourism
11
Strategy for the diversification of nautical and maritime tourism; Adopted on 30.3.2017. - Decision date of
the Presidency: 20.9.2016. Reference: INT/808-EESC-2016-05923-00-00-ac-traOfficial Journal: OJ C 209,
30.6.2017, p. 1.
12
CNA Research Survey: The greatest risk facing the yacht industry is in the technical domain.
5
As a strategic tourism product, nautical tourism contributes to reducing seasonality, enhancing
environmental and natural resource valuation, and can be considered a factor of differentiation
in terms of tourism, responding to the growing demand for more active experiences.13
The global recreational boat market in 2021 increased by 3.9 percent to 17.6 billion euros.
Despite the growth, signs of market saturation are evident, and strong future growth is
uncertain. Therefore, the average sales growth is expected to fall below two percent by 2021,
according to a new study conducted by Interconnection Consulting.14 Cruising yachts witness
growth driven by improved comfort, speed, and expedition capabilities. The cruising yacht
market held around 50% of the quantity share in 2020. Deliveries of cruising yachts are
expected to reach 1,800 units by 2027. These yachts are equipped with smart technologies
to offer guests a luxurious onboard experience. Prominent industry participants are focused
on building new cruiser models to capture a significant market share.
Yachts ranging from 24 to 45 meters are expected to experience a growth rate of nearly 5%
by 2027. They are suitable for small groups and families, spacious, stable, and designed for
enhanced comfort. Motor yachts measuring 30 meters have cabins for 10-12 guests and offer
all kinds of amenities, from theaters to water sports equipment. A certain number of sailing
enthusiasts choose yachts in this size range for their convenience in navigation. Yachts of
this size may also appeal to buyers looking to downsize their yacht, allowing them to
continue to enjoy the benefits of yachting. Boat builders are developing new custom models
to meet increasing customer demands. 15 In a market where luxury has already been taken to
extremes, the pursuit of yacht industry perfection and innovation never stops.
13
UNWTO. International recommendations for tourism statistics 2008. Vol. M no. 83/R, Report on the
Millennium Development Goals 2010, p. 1–145. New York (2010)
14
Source: https://www.interconnectionconsulting.com/de/
15
Cited from: Gladkikh, T., Séraphin, H., Gladkikh, V., Vo-Thanh, T. (2022). Conclusion: Luxury Yacht - New
Insights and Additional Questions. In: Gladkikh, T., Séraphin, H., Gladkikh, V., Vo-Thanh, T. (Eds.) Luxury
Yacht. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-86406-4_12
6
The emergence of gadgets16 and advances in connectivity encourage nautical tourists to adopt
new technologies for improved utility. Yacht manufacturers collaborate with technology
companies to ensure fast and reliable broadband connectivity in the middle of the ocean and
develop products for enhanced safety and entertainment onboard. Terms such as artificial
intelligence (AI), electrification, wearable technologies, and other major technological
advancements have a positive impact on the boating industry statistics overall. AI is
transforming the market and is expected to play a key role in the future of the maritime
industry. Today, mobile Wi-Fi is commonly available in many marinas, and even from
neighboring boats. However, the low power of mobile devices like smartphones and tablets
doesn't always provide a strong connection due to range limitations. As the next generation
of internet accessibility, bonded internet combines a range of different internet connections
from different service providers to create a unique, faster connection for yachts. For
advanced internet browsing at sea, a satellite system is required.
The present is characterized by an increasingly interconnected and interdependent world

with digital progress changing how information is disseminated, personal behaviors are
changing, and innovation is being encouraged. The fact is, we not only need new tools, but
also new capacities and ways of thinking. Therefore, innovative projects, initiatives, and
partnerships are being devised worldwide. The sheer size of global tourism and its impact
on many other sectors, as well as all sustainable development goals, place it at the forefront
of social responsibility, which goes hand in hand with innovation at all levels.
Yacht owners interested in improving efficiency by adopting new technologies: machine

learning (ML), artificial intelligence (AI), big data, Internet of Things (IoT), cyber security
in maritime traffic, vessel performance monitoring, maritime intelligence, vessel data
analytics, and other automation for fleet management optimization. An innovative business
allocates resources in terms of staff time and money for research to stay ahead of
opportunities for its industry; has a process that enables ideas and solutions to be delivered
16
The definition of a gadget is often understood as a small mechanical or electronic device with practical use,
but it is often considered a novelty. A device that is simple in form and function, useful in a specific area of
application. In Croatian, the anglicism "gadget" falls under computer terminology.
7
to the management team for testing and development; and tells its customers that it's okay
to fail as long as they fail fast and learn from the experience. Harnessing innovation and
digital progress provides tourism, especially nautical tourism, with opportunities to enhance
inclusivity, empower global and local communities, and efficiently manage resources,
among other goals within the broader sustainable development plan. Digital transformation
implies providing benefits to everyone. Digital transformation actually means any company
can use ever-changing technology to support its sustainable growth. How are innovations
connected to digital transformation? The term innovation is probably the most frequently
used but often misunderstood word in today's business language. Digital technologies have
provided a positive boost to societies and economies worldwide. 17 Newgen18 is a leading
provider of a unified digital transformation platform with native process automation, content
services, and communication management capabilities. Globally, successful enterprises rely on
Newgen's industry-recognized low-code application platform for developing and deploying
complex, content-driven business applications that attract customers to the cloud. From
onboarding to service requests, lending to underwriting, and many other use cases across
various industries. Newgen differentiates with simplicity, speed, and agility. They've connected
nations globally, helped empower the most vulnerable, and become crucial allies in sustainable
development. The challenge is to continue harnessing this power constantly while guarding
against risk. Digitalization won't overpower the human component or replace people's passion.
There's a need for boosting innovation in the tourism ecosystem and speeding up business
processes. Most small and medium-sized businesses involved in travel and tourism are keeping
pace with their customers, as consumers embrace digital tools to enhance their lifestyles, and
technology companies invest heavily in innovating new products to stay among the world's
best-performing companies. The rapid spread of mobile devices and the relentless development
of software and data systems are pushing boaters to become more digitally engaged than
companies that refuse to utilize them.
2. DIGITAL TRANSFORMATION
Digital transformation leverages digital applied sciences to change business models, creating
new alternatives, revenues, and values. Although digital transformation has expanded across
17
Source: www.newgensoft.com. Newgen is a leading provider of a unified platform for digital transformation
with native process automation, content services, and communication management capabilities.
18
See: Newgen Software Technologies Ltd Retrieved: August 23, 2022, at 09:36
8
all sectors of operation, there are some areas with more prospects for future development than
others.
Digital transformation and innovation - strategies for sustainable growth in nautical tourism.19
Nautical tourism has experienced exponential growth on the European coast, and its importance
as a strategy for local development and diversification of the tourism offer is widely
recognized. The European nautical industry contributes to policies related to nautical tourism,
considering the importance of navigation and water-based recreation (such as water sports) for
the broader tourism economy.20 Data management and strategy are also fundamental
challenges for many nautical systems that want to implement digital transformation. Based on
a comprehensive strategy for coastal and maritime tourism, the European Commission has
announced its dedicated approach to nautical tourism.21 It recognizes the potential of nautical
tourism for employment and growth. The main proposed actions include:
- Recognition of professional skipper licenses

- Recognition of private skipper licenses
- Safety equipment
- Integration of nautical activities, marinas, and the hinterland
- Coastal navigation/worn-out boats
- Innovation for the nautical industry
As a strategic tourism product, it contributes to reducing seasonality and enhancing the

environment and natural resources. It can be considered a differentiating factor in tourism,
responding to the growing demand for more active experiences.22
5
National Tourism Strategy (2009-2020) - Croatia. The strategy outlines the vision and strategic objectives for
the further development of nautical tourism in line with the principles of sustainable development. It includes an
Action Plan for the implementation of the Strategy, detailing measures, activities, responsible parties, and
implementation deadlines for the period 2009-2019.
20
The development of the strategy is led by British Marine Scotland in partnership with the Royal Yachting
Association Scotland, Scottish Canals, and Sail Scotland, with the support of Stuart McMillan MSP, the leader
of the Cross Party Group for Recreational Boating and Marine Tourism. Source:
https://www.rya.org.uk/gbni/scotland/representation/marine-tourism
21
Strategies for diversification of nautical and maritime tourism; Adopted on March 30, 2017. - Decision date
of the Presidency: September 20, 2016. Reference: INT/808-EESC-2016-05923-00-00-ac-tra
Official Journal: OJ C 209, June 30, 2017, p. 1

22
UNWTO. International recommendations for tourism statistics 2008. Vol. M no. 83/R, Report on the
Millennium Development Goals 2010, p. 1–145. New York (2010)
9
Today is characterized by an increasingly interconnected and interdependent world with digital
advancements that change the way information is obtained, personal behavior is altered, and
innovations are encouraged. The fact is that not only new tools are needed but also new
capabilities and ways of thinking. Therefore, innovative projects, initiatives, and partnerships
are being devised worldwide. The sheer size of global tourism and its impact on many other
sectors, as well as on all sustainable development goals, places it at the forefront of social
responsibility, which now goes hand in hand with innovation at all levels. An innovative
business allocates resources in terms of staff time and money to research to stay current with
opportunities for its activity; it has a process that allows ideas and solutions to be delivered to
the management team for testing and development; and it tells its customers that it's okay to
fail as long as they fail fast and learn from the experience. Leveraging innovation and digital
progress provides tourism, especially nautical tourism, opportunities to enhance inclusivity,
empower the global and local community, and effectively manage resources, among other
objectives within the broader sustainable development plan. Digital transformation implies
delivering benefits to everyone. Digital transformation actually means how any company can
use ever-changing technology to support its own sustainable growth. How are innovation and
digital transformation related? The term innovation is probably the most commonly used but
misunderstood word in today's business language. Digital technologies have brought a positive
impulse to societies and economies worldwide. Croatia initiated the "Digital Croatia"23
campaign through the daily newspaper "Večernji list" to inform the citizens of the Republic of
Croatia about the phenomenon of the digital age.24 They have connected countries on a global
level, helped empower the most vulnerable, and become key allies for sustainable development.
The challenge is to continue harnessing this power constantly while guarding against the risks.
Digitalization will not overcome the human component or replace people's passion. There is a
need for increasing innovation in the tourism ecosystem and speeding up business processes.
Most small and medium-sized companies in the travel and tourism sector are keeping pace with
23
Digital Croatia in 2021 brings the best topics of the digital age, accompanied by education and advice from
top experts. The significant interest of citizens and the attendance of Vecernji's digital bus indicated the need for
expert guidance in digital spheres such as e-banking, financial literacy, and digital business. Therefore, this year,
we provide citizens with all the necessary information through specialized and attractive features with the aim of
making digitization come to life in its full sense.
Learn more about it at: https://www.vecernji.hr/vijesti/uspjesan-projekt-vecernjeg-lista-vraca-se-u-novom-ruhu-

sve-sto-trebate-znati-o-digitalizaciji-na-jednom-mjestu-1480708 - www.vecernji.hr
24
The significant project of Vecernji list continues its mission under the motto – everything you need to
know about digitization in one place. "With the project Digital Croatia, keep up with the times: We reveal
all the benefits of digitization and provide you with the knowledge needed to master digital platforms that
will make your everyday life easier."
10
their clients as consumers embrace digital tools to enhance their lifestyles, and technology
companies invest heavily in innovating new products to have a broad impact among the world's
best-performing companies. The fast spread of mobile devices and the relentless development
of software and data systems require mariners to be more digitally engaged than the companies
they want to use.
Digitalization or digital transformation trends in different aspects and industries of life

undoubtedly have a great impact on how the popular industry is perceived in everyday life,
such as health, logistics, insurance, manufacturing, etc. Among the most commonly used
industries, travel and tourism are certainly no exception, especially in the midst of the chaos
and uncertainty caused by the rapid rise of the known epidemic. The industry has undergone
significant changes due to all digital moves affecting every part of it, transforming the travel
industry into one of the most active supporters of digital transformation. The main goal of
digital transformation is to solve the challenge of isolated data and connect both on the internet
and beyond. In simple terms, data is the fuel that powers the transformation.
Although yacht sizes can be larger than 70-80 meters, they are rarely 100 meters or more.
Larger vessels of such size fall under the purview of cruise ships or passenger ferries, as
mentioned earlier. There are a few exceptions. Cruise yachts: These are conventional yachts of
varying sizes designed for passenger enjoyment and relaxation. These vessels are allowed to
travel long distances to moderate ocean depths. They are generally of the displacement type.
Luxury yachts often fall into this category. Cruise yachts are characterized by a rise driven by
improved comfort, speed, and expedition capabilities. The cruise yacht market held about 50%
of the quantity share in 2020. It is predicted that cruise yacht deliveries will reach 1,800 units
by 202
7. Cruising Yachts: These are recreational vessels designed primarily for pleasure and leisure.
They include various classes such as racing, cruiser-racers, and cruisers. Racing yachts are
usually around 7 to 12 meters in length and constructed of lightweight materials like carbon
fiber, to optimize speed. Cruiser-racers are suitable for both racing and cruising, while cruisers
are focused more on comfort and interior spaces, making them suitable for long-distance
cruising. It is important to note that yachts can fall into multiple categories based on their usage
and design.
11
As for the innovative and digital transformation aspects of nautical tourism:
1. Digital Booking and Management: The digital transformation in nautical tourism is evident
in online booking platforms and management systems. Yacht charter companies and marinas
have adopted digital booking systems that allow customers to easily reserve vessels, select
itineraries, and manage their trips online.
2. IoT and Smart Yachts: Many modern yachts are equipped with IoT (Internet of Things)
technology, allowing for remote monitoring and control of various onboard systems. This
enhances the safety, comfort, and convenience of the passengers.
3. Mobile Apps: Mobile applications are becoming increasingly popular for nautical tourism.
These apps provide real-time weather updates, navigation assistance, and information about
nearby attractions and services.
4. Sustainable Practices: Digital transformation in nautical tourism includes the adoption of

sustainable practices. This includes eco-friendly navigation routes, waste management, and
energy-efficient technologies on board.
5. Data Analytics: Data analytics is used to gain insights into customer preferences and
behavior, helping businesses tailor their services and marketing strategies.
6. Online Reviews and Ratings: Online reviews and ratings play a significant role in shaping
the reputation of nautical tourism providers. Businesses actively manage their online presence
and customer feedback.
7. Virtual Reality and Augmented Reality: Some nautical tourism providers are using virtual
reality and augmented reality to offer immersive experiences and training programs.
8. Automation and Robotics: Automation and robotics are making their way into nautical
tourism, with innovations like autonomous vessels for specific purposes or tasks.
12
9. Sustainability and Green Technologies: The industry is increasingly focusing on sustainable
and green technologies, such as electric and hybrid propulsion systems, to reduce its
environmental footprint.
10. Customer Engagement: Digital transformation enables businesses to engage with

customers through social media, email marketing, and other online channels, creating a more
personalized and responsive service.
In conclusion, nautical tourism is undergoing a significant transformation driven by digital

advancements and innovation. This transformation encompasses various aspects of the
industry, from booking and management to sustainability and customer engagement. As
technology continues to evolve, nautical tourism is likely to see further innovations that
enhance the overall experience for travelers and contribute to the sustainable growth of the
sector.
3. DIGITALIZATION OF NAUTICAL TECHNOLOGY
In recent years, the commercial shipping industry has had to face various external pressures,
from environmental concerns and Globalization 4.0 to new technologies and increasing
digitization, further burdening the sector's ability to grow and progress. To achieve operational
efficiency, many ship operators are in the process of digitizing their processes, and as the
volume of data transmitted to and from ships continues to grow, connectivity becomes
increasingly crucial. Until now, the high cost and limited bandwidth of satellite connections
between ship and shore have been obstacles to widespread technology adoption. However, the
number of vessels with internet access on board has almost doubled in the last five years, thanks
to the introduction of VSAT and high-throughput satellites, and it is now estimated that 75%
of ships have some degree of internet access.
The number, speed, and adoption of technological innovations are growing exponentially.
Digital transformation trends have become a pressing issue as they have proven beneficial for
the growth of the tourism industry. Therefore, a bright future can be seen in the travel and
tourism industry in the Mediterranean. The transition to digitization is accelerating in the
maritime industry. The goals are increased competitiveness, greater operational efficiency, and
improved safety. Digitalization of travel has changed the way people travel and made yacht
13
charter much more accessible than before. Due to the exponential growth of digital media and
the strong relationship between tourism and technology, the digital transformation of the
tourism industry will be evident. The aim of this paper is to present the technological equipment
and its impact on the tourism industry. The growing popularity of nautical tourism requires the
development of sailing infrastructure along the shores of inland water bodies. The main
components of sailing infrastructure are boat ports and yacht harbors. Ports and marinas25 offer
various basic and complementary services. Basic services include berths for yacht mooring.
Ports are pools for mooring yachts and other recreational vessels in harbors that should allow
safe mooring for up to 50 boats.
Marinas are gateways that provide access to water. As the largest Mediterranean chain of
marinas and the leading marina operator, ACI26 marinas are the first choice for sailors from
around the world. The sailing market continues to develop rapidly and has high growth
potential. Sailing is one of the most popular types of recreational activities. Today's waterfront
facilities are far from simplistic. They must be designed and manufactured to withstand
variable environmental influences such as wind, waves, currents, seismic activity, and ice,
while being attractive, accessible, and safe at the same time. They must also provide services
and amenities to meet the needs of the 21st-century nautical community seeking a "home away
from home" atmosphere. Marinas and numerous nautical companies work in partnership as
part of the recreational boating industry that creates jobs, strengthens property values, and
generates taxes in various forms from which governments benefit. Studies in developed
nautical markets have shown that $6.50 to $10.00 is generated in the community for every
dollar spent in the marina. There is no reason why this would be different in new markets.
Other studies estimate that the typical owner of a large yacht will spend about 10% of its value
annually on maintenance and upkeep. Many factors contribute to this figure, including
payments to marinas, crew, shipyards, contractors, stores, food suppliers, bunkers, and
insurance companies.27
Marinas provide an improvement in the quality of life for active and passive recreation.
Marinas provide shelter and services to boats and boaters. Sometimes, a modern marina affects
25
There are several well-known schemes for "clean marinas," such as the Blue Flag, Golden Anchor, Blue Star
Marina. In France, for example, "Clean Port Guidelines" provide such confirmation.
26
Adriatic Croatia International Club, commonly referred to as ACI Club.
27
Source: Global Marine Business Advisors and its affiliated website www.gmba.blue
14
the aesthetics of the waterfront28 and immediate surroundings. It enhances the enjoyment of
customers, tourists, and the public as a whole. Very often, there is also an educational element
in which people learn to sail, learn about the marine environment, the maritime heritage of their
country, and the need for its preservation. But ultimately, marinas thrive only where regulatory
and tax regimes support ownership of vessels, regardless of whether boaters are domestic,
transient, or tourist.29 Until recently, the Regulation30 classified nautical tourism ports (Article
5) as:
• Anchorage;
• Storage of floating objects;
• Dry marina;
• Marina.
Namely, the aforementioned classification of nautical tourism ports has changed because, since
2019, a new Regulation on the categorization of nautical tourism ports and the classification of
other facilities providing services for the connection and accommodation of floating objects
has come into effect.31 According to this Regulation, the term "nautical tourism port" includes
only marinas, while other facilities providing services for the connection and accommodation
of floating objects are classified into nautical anchorage, nautical mooring, storage of floating
objects, and dry marina. Modern marinas deserve modern technologies. Digital design enables
them to surpass operational standards and revolutionize what is possible in terms of form and
function. Managing successful marina operations essentially boils down to two main factors:
fully understanding user needs and providing uncompromising, high-quality service that insists
on repeat transactions.
28
Riva is, technically, a part of the riverbank or shore that has been modified so that boats can dock parallel to
it.
29 The value of investments in marinas: coastal and inland marinas, of which there are more than 6000 in
Europe, are essentially linked to the local economy and tourist offerings. Boaters visiting marinas
contribute income to the local economy, restaurants, and shops. It is estimated that for every 25 berths,
one direct job is created, and for every 4 berths, one indirect job is created. The average spending per
recreational boat is estimated at €6000 annually. Approximately two-thirds of the fee goes to local or
national activities. Source: office@europeanboatingindustry.eu
30
Regulation on the categorization of nautical tourism ports (NN 72/08)
31
See: NN, no. 120/19.
15
The International Convention for the Safety of Life at Sea (SOLAS)32 of the International
Maritime Organization requires the installation of an Automatic Identification System (AIS)33
on ships of international navigation with a gross tonnage (GT) of 300 or more and on all
passenger ships regardless of size. Although AIS transceivers/receivers are commonly called
transponders, they generally transmit autonomously, although coastal stations can interrogate
Class B transponders on smaller vessels for additional information. In addition, navigational
aids often have transponders called RACONs (radar beacons) designed to stand out on the
ship's radar screen.
The progress of information, communication, and satellite technologies has led to the
development of modern tools that are increasingly used in sailboats and sailing tourism.
The concept of smart ports aims to adopt modern information technologies to enable better
planning and management within and between ports. Strong drivers of digitization are
investments in technology and collaborations to promote information exchange and better
coordination and cooperation, which is often considered a stumbling block in highly
competitive environments.
With PowerPlex®, the internal systems of a yacht can be monitored from the helm, salon, or
shore via a smartphone, tablet, or personal computer, all with a touch of a button. This modern
technology replaces mechanical circuit breakers and fuses with digital modules for managing
the circuit or virtual switches.34
prebacivanja
In theory, this involves the connection between brands, for example, a Raymarine plotter
connected to the Digital Yacht AIS and Garmin autopilot, a simple plug 'n play solution that
allows the selection of the best products, value, and features for installation. NMEA is the
National Marine Electronics Association (NMEA), an American trade organization for marine
32
The main objective of the SOLAS Convention is to establish minimum standards for the construction,
equipment, and operation of ships that are compatible with their safety. Flag States are responsible for ensuring
that ships under their flag comply with its requirements, and the Convention prescribes a series of certificates as
evidence that this has been done. Control provisions also allow Contracting Governments to inspect ships of
other Contracting States if there are clear grounds for believing that the ship and its equipment do not
substantially comply with the requirements of the Convention - this process is known as a port State control.
33
The Automatic Identification System (AIS) is a system for coastal short-range tracking of ships and maritime
traffic. It enables ships to exchange data with each other (ship flag, type, status, speed, direction, length and
width of the ship, draft, destination, time). Also, ships and ports exchange such data. In addition to ships and
ports, AIS is available to any Internet user in 17 languages, including Croatian.
34
Source: https://powerplex-e--t--a-com.translate.goog/marine/what-is-digital-switching/
16
electronics that sets communication standards for maritime electronics. Currently, there are
two main standards: NMEA 0183 and NMEA 2000.
It is powered from the network itself and creates a local WiFi hotspot for connecting a mobile
phone, tablet, or computer. Once connected, it easily accesses functions via a web browser,
eliminating the need for complicated software installation. NAVDoctor is a portable NMEA
2000.
Today's modern yacht must be equipped with GPS35, chart plotter, and AIS.36 Yachts must
have some type of navigation equipment to find their way. The three most important navigation
equipment are chart plotter, radar system, and GPS system.
The chart plotter displays the yacht's position on charts and uses GPS data to determine its
location at any given time. The plotted course also gives the captain an opportunity to determine
how far away he is from a certain area or if he is sailing in the wrong direction. GPS, which
stands for Global Positioning System, helps yachts accurately determine their exact location
and provides precise speed and position using satellites. AIS allows vessels to identify other
vessels that may not be broadcasting a VHF call sign or MMSI (unique ID) number. This helps
avoid collisions in areas where AIS use is not mandatory but is required when mandated by
law. Additional equipment includes a depth sounder used to determine the water depth beneath
the yacht. The Electronic Chart Display and Information System (ECDIS), as an alternative to
paper nautical charts, allows quick access to tasks performed during vessel operation.
4. DIGITAL TRANSFORMATION IMPACTING THE TRAVEL AND

TOURISM INDUSTRY
Digital business strategy is longitudinally and consistently articulated with "tactical and
operational" goals of cost reduction, process improvement, operational excellence, as well as
supplier and customer engagement goals, insights, and decision support goals. With
technological capabilities, smart tourism has influenced the tourism sector in its entirety.
Digital transformation has a profound impact, completely changing the way people live and do
business. The digital revolution in the tourism industry has redefined how companies operate.
Over the last two decades, tourism, especially nautical tourism, has been significantly altered
35
GPS, which stands for Global Positioning System, helps yachts precisely determine their exact location and
provides accurate speed and position using satellites.
36
AIS (Automatic Identification System) enables vessels to identify other ships that may not be broadcasting
VHF call signs or MMSI (unique ID) numbers. This allows avoiding collisions in areas where AIS is mandatory
for use or when required by law.
17
by digital technologies. One of the most significant outcomes of the digital transformation
process is the provision of more affordable services in terms of convenience and accessibility.
Many tasks once performed by humans are now taken over by robots or automated systems
such as chatbots. They have become widespread throughout the industry and are designed to
help people find and book tours, transportation, and accommodation by asking a series of
questions.
Highlighted innovations range from business management methods and technologies such as:
a. mobile technologies/cloud computing, automation and advanced robotics, blockchain, data

analytics, to technologies producing innovative tourism products,
b. services and experiences, such as virtual/augmented reality, the Internet of Things,
c. technologies that help understand and connect with markets, such as data analytics, cloud
computing, and artificial intelligence.
Data analysis of trends, consumer behavior, and competitor actions alone can yield interesting
results, but only by analyzing the industry as a whole can the fundamental changes that the
tourism industry is experiencing be appreciated. Many companies are not ready or willing to
invest in adapting to the new digital model. On the other hand, new technologies and
communication channels also provide business opportunities, rejuvenation, and freshness to
the industry, as well as new ways of communicating with customers. Companies should
generally promote the implementation of customer-centric practices as a new business model.
They face a natural selection process where only those who can adapt will remain competitive
and be able to offer their customers an optimal experience.
Tourism companies that do not undergo the process of digital transformation will lose
competitiveness in the long run, as customers are familiar with the benefits offered by the new
digital environment. The tourism industry is thus being updated, as it is one of the main
industries.
Recently, tourism mobile software has dominated, becoming increasingly popular, relating to
the more widely accepted way of connecting tourism companies with their clients. In this, the
presence of mobile applications plays a crucial role due to the huge number of users that are
18
growing daily. With the rapid increase in mobile users globally, the potential for using mobile
software to assist tourism companies is on the rise.
Some reports show that around 85% of people have installed at least one travel app on their
mobile phones.37 In these apps, they could actively search and manage their orders. From the
perspective of tourism companies, tourism mobile apps increase market presence by surpassing
geographical barriers. Furthermore, they can use mobile apps as a bridge to connect with
millions of active users with integrated marketing and sales solutions. Undoubtedly, travel
software is constantly adapting to the way people experience travel. Outsourcing38 is usually
the most efficient way for small businesses. This part of the paper discusses the impact of
travel-based mobile apps on innovations in the tourism industry, as well as some discussions
on acquiring a professional company for the development of mobile apps tailored for
development. Users increasingly use mobile apps to plan their trips, share opinions about
destinations, and discuss their experiences while staying at the destination. The information
generated by customers has become one of the key elements for other users to decide which
destination to travel to and where to use mooring services. Customer-generated feedback may
not reach conventional channels, so it is crucial to actively listen on social media, websites,
and tourism apps.
5. NAUTICAL TOURISM IN THE TOURISM DEVELOPMENT

STRATEGY IN CROATIA
Observing the global goals of the tourism development strategy in Croatia is based on building
consensus around a shared vision for the future of the tourism industry in the Republic of
Croatia. Nautical tourism in Croatia is becoming increasingly important, yet it still does not
achieve adequate material gains considering its potential. In this sense, various approaches are
methodologically used to create a common vision, mainly achieved through participatory
planning methods where stakeholders gather to envision and describe the tourism industry they
would like to see for their country. Assessing the state of nautical tourism, the assessment is
given in the following statement: "Despite established higher tourist spending, the share of
nautical tourism in officially estimated total tourism impacts is very small. The reasons for
such indicators are, on the one hand, inadequate statistical monitoring, covering only a part of
37
From the report on this, you can see in the article:
Digital%20transformation%20in%20travel%20industry.html Adamo Software delivers state-of-the-art
customized software development outsourcing solutions.
38
Outsourcing is a business practice of hiring a third party outside the company to perform services and create
products that are traditionally not done by the company itself.
19
what nautical tourism involves, and, on the other hand, in the structure and quality of the offer
of still insufficiently connected and managed nautical tourism system, which, with the
mentioned high-value resource base, represents its greatest development opportunity."39
Croatia has the world's largest nautical fleet, with 4,378 boats and yachts and 56 marinas for
safe navigation. It also has 1,244 islands, islets, and rocks, hidden coves located in the Adriatic
Sea.40
The basis of the future tourism development strategy, according to the information presented
in the materials of the Sustainable Tourism Development Strategy until 2030,41 will prescribe
the vision of tourism development, taking into account the principles of sustainable
development, the development needs and potentials of tourism, as well as prescribe strategic
goals, key performance indicators, and targeted indicator values. The strategy will also cover
public policies of other sectors closely interacting and interdependent with tourism, providing
a basis for the comprehensive inclusion and further concretization of issues and measures
concerning the tourism sector in the development of their national plans.
In the last thirty years, with the significant development of nautical tourism in Croatia, it has
proven to be one of the most propulsive and stable forms of tourism. Utilizing its comparative
advantages, nautical tourism attracts the most demanding clients and triggers a series of related
business activities and foreign investments. Nautical tourism attracts great attention, both
globally and in Croatia, and is considered one of the most significant economic activities for
the tourism sector. Croatia is a globally recognized tourist destination, competitive and
attractive for investments. Additionally, it is one of the leaders in international nautical tourism.
In this regard, the goal is to determine the possible representation of nautical tourists in the
Republic of Croatia. Research obtained through qualitative and quantitative methods confirms
the assumption that the development of nautical tourism is an important factor in its
representation and can increase its competitive position among international competitors.
Indicators are an important factor in the strategic plan for defining measurable goals that can
be used to measure the results of the strategy implementation process.
39
Quoted source: Study on the Development of Nautical Tourism in Croatia | HHI, Study on the Development of
Nautical Tourism in Croatia
40
Quoted from: Adria Europe Group - Nautical Tourism in Croatia - a short guide for a perfect voyage
https://croatia.hr/en-GB/experiences/nautika
41
Strategy for the development of sustainable tourism until 2030. The development is led by the Ministry of
Tourism and Sports (MINTS). It is based on the study: Survey of attitudes towards tourism in the framework of
the development of the Strategy for the Development of Sustainable Tourism until 2030.
20
Croatia is among desirable nautical destinations, as evidenced by the data indicating that, in
the current part of the year,42 there have been over 537 thousand arrivals and 3.5 million
overnight stays in the nautical charter segment, representing a 12 percent increase compared to
the same period in 2021. The significant success achieved during this time for nautical tourism
has resulted in significant development in its relevant business segments. As a specific type of
recreational tourism, nautical tourism has a positive economic impact on coastal areas and
makes a significant contribution to the local economy. Croatia has many advantages that allow
it to gain a dominant position in the development of yacht tourism, such as authentic local
attractions, natural coastal resources, etc.
The recently adopted Government Strategy43 envisions the construction of 5,000 new berths in
existing ports and 5,000 berths at new locations along the Croatian coast and islands, as well
as 5,000 locations for boat accommodation on land over the next 10 years. Further plans include
the construction of marinas for megayachts near airports and major cities where, if the existing
infrastructure is capable of accommodating large vessels, these plans will be implemented.
Digitalization is accompanied by changes, and changes can lead to resistance, potentially

hindering the adoption of new ways of working.
6. CONCLUSION
Digital technologies and platforms are disrupting the way the tourism sector operates end-to-
end. Digital platforms offer global access to consumers and enable service providers to enhance
the development of the tourism sector and its competitive standards. Many low-income
economies can potentially benefit from this digital transformation, while others face the danger
of being neglected if they do not embrace this moment. In the last 30 years, the three core
industries of nautical tourism (marina, charter, and cruise industries) have consistently recorded
high growth rates. In this crisis time, with a lack of inventiveness and investment, nautical
tourism and its sectors become a new opportunity for development. Its growth is evident at the
local and regional levels, and its components become potential local economic leaders. This
research focuses on three fundamental segments of the digitalization of nautical tourism
42
The data is from August 1, 2022. Published by Nautical Promotion throughout Europe - Giornal.hr
43
Ibidem op. citatum.
21
(marina, charter, and cruise industries), which are not sufficiently studied both theoretically
and practically.
Insufficient use or lack of tools for analyzing data on tourist movements and habits significantly
diminish the ability to respond to needs and demands in a timely manner, leading to reduced
competitiveness.
The relative disinterest of private yacht owners in investing in digital transition. Surveyed
questionnaires showed that yachts are mostly aged between 2012 and 2019.
Digitalization can particularly positively impact environmental and spatial sustainability
through the management of nautical flows, especially in overloaded destinations.
Although current generations growing up in the digital age should not have problems accepting
new digital nautical vessels - just like in any other domain.
It is crucial to ensure the acceleration of the digitalization process. Digital transformation
allows the analysis of data on tourist movements and the habits of sailors, enabling the
prediction of trends and thus greater competitiveness.
Investments related to digital transition with the support of recovery and resilience funds are
being implemented on a reduced scale due to the lack of interest in the surveyed nautical sector
for transition.
There is no significant impact on technological changes in nautical tourism.
According to the results of the initial research, it can be concluded that accelerated
technological changes in nautical tourism do not have a significant impact.
It is observed that sailors will experience their vessels becoming increasingly digitized and thus
more dependent on computerized technology, advocating for additional digital education and
training.
From the responses in the initial research, it can be concluded that the fusion of maritime and
digital skills is the right path, and every surveyed individual who wants to build a career
expressed a desire for acquiring and continuously building their competencies in technical and
business skills within the digital sphere.
The use of data-driven decision-making in combination with new digital capabilities will
transform fundamental nautical operations, accelerate results, and drive tourism superiority.
Insufficient adaptation to technological changes - digitization can lead to a decline in
competitiveness, especially regarding the use of promotional and sales channels.
22
LITERATURE
1. Dulčić, A. (2002), Nautički turizam i upravljanje lukom nautičkog turizma,
Ekokonomski fakultet, Split
2. Gračan, D. i sur. (2011), Strateška usmjerenja nautičkog turizma u Europskoj uniji,
Fakultet za menadžment u turizmu i ugostiteljstvu, Opatija
3. Cusumano, M. A., Gawer, A., & Yoffie, D. B. (2019). The business of platforms:
Strategy in the age of digital competition, innovation, and power. HarperCollins.
4. Nadrljanski, Đ., Nadrljanski, M., Pavlinović, M., Digitalno poslovanje u pomorstvu,
Redak, Split, 2021.
5. Nadrljanski, Đ., Nadrljanski, M., Vidović K., Teorija odlučivanja, Redak, Split, 2021.
ONLINE SOURCES:
1. Strategija razvoja nautičkog turizma HR 1.pdf (gov.hr) za razdoblje 2009-2019.
(15.12.2022.)
2. office@europeanboatingindustry.eu (15.12.2022.)
3. 63 vrste turizma u svjetskoj praksi:| Kompletan vodič - ColorWhistle Tvrtka za web
razvoj, Usluge dizajna web stranica B2B Digitalna agencija Indija (colorwhistle.com)
(15.12.2022.)
4. www.sammyacht.com (15.12.2022.)
5. https://ecdis-info.com/the-top-3-navigation-equipment-every-yacht-must-have/
(15.12.2022.)
6. https://digitalna.vecernji.hr/#digital-sec (17.12.2022.)
7. https://www.rya.org.uk/gbni/scotland/representation/marine-tourism (17.12.2022.)
8. https://www.interconnectionconsulting.com/de/ (17.12.2022.)
9. www.newgensoft.com.(17.12.2022.)
10. https://www.rya.org.uk/gbni/scotland/representation/marine-tourism (18.12.2022.)
11. www.vecernji.hr (18.12.2022.)
12. https://www.gartner.co.uk/en (18.12.2022.)
13. https://tracxn.com/d/companies/upicus.com (18.12.2022.)
14. https://www-stackpath-com.translate.goog/edge-academy/what-is-fog
computing?_x_tr_sl=en&_x_tr_tl=hr&_x_tr_hl=hr&_x_tr_pto=nui,sc (18.12.2022.)
15. https://www-networkworld-
com.translate.goog/about/about.html?_x_tr_sl=en&_x_tr_tl=hr&_x_tr_hl=hr&_x_tr_
pto=nui,sc (18.12.2022.)
16. https://www.aeresearch.net/request-sample/764372 Aeresearch.net. središte je za
proizvode i usluge tržišne inteligencije.(18.12.2022.)
17. https://misterbooking.com/yacht-charter-software-42-0-presentation-specialist-
nautical-softwar.html (18.12.2022.)
18. https://www.marinaahoy.com/post/marina-app-for-better-customer-service-things-to-
think-before (19.12.2022.)
19. https://www.lama.hr/en/solutions/application-solutions/lamarina/ (19.12.2022.)
23
20. Best Marine Software 2022 - Reviews on 30+ Tools | GetApp Izvor
https://www.getapp.com › marine (19.12.2022.)
21. www.pinpointworks.com (19.12.2022.)
22. https://www.raymarine.com/marine-charts/navionics.html (19.12.2022.)
23. https://www.researchgate.net/figure/Infra-Red-Gas-Analyzer-IRGA-analysis-of-full-
expanded-leaves-of-different-wheat-cvs_fig1_305219501 (19.12.2022.)
24. http://www.nauticalsoftware.com/ (19.12.222.)
25. Prema tekstu objavljenom na: Marine Vessel Management Software,
https://www.crunchbase.com/organization/abs-nautical-system (19.12.2022.)
26. Nautical Software Solution pomorska je tvrtka koja podržava nautičku industriju,
support@nauticalsoftwaresolution.com (19.12.2022.)
27. http://www.nauticalcharts.noaa.gov/ENCOnline/enconline.html (19.12.2022.)
28. https://tourismmarketing.agency (20.12.2022.)
29. office@europeanboatingindustry.eu (20.12.2022.)
30. mosoftware.license@bureauveritas.com (20.12.2022.)
31. info@mooring-yachts.com+31(0)75 631 85 36 (20.12.2022.)
32. https://www.furuno.com/en/ (20.12.2022.)
33. https://www.xn--arter-gya.hr/trendovi/brodska-oprema-garmin-uredaji-za-vrhunski-
performans (20.12.2022.)
34. https://powerplex-e--t--a-com.translate.goog/marine/what-is-digital-switching/
(20.12.2022.)
35. https://www.furuno.com (20.12.2022.)
36. https://www.txtreport.com/news/2022-07-22-state (20.12.2022.)
37. Analiza scenarija.pdf (gov.hr) (20.12.2022.)
38. https://europa.eu/european-union/about-eu/ (20.12.2022.)
39. Studija razvoja nautičkog turizma RH | HHI (20.12.2022.)
40. https://croatia.hr/hr-HR/dozivljaji/nautika (20.12.2022.)
41. https://www.adriatic-sailing.hr › cr (20.12.2022.)
24
2. QUALITY MANAGEMENT IN SHIP
CONSTRUCTION AND SERVICING PROCESSES
Marko Košuljandić, AZIMUT d.o.o., markokosulja@gmail.com
1. INTRODUCTION
Given the complex nature of shipbuilding, quality should remain at the forefront of the overall
strategy of shipbuilders. Most shipbuilders are both manufacturers and assemblers. In addition
to ensuring that all produced products meet quality standards, shipbuilders must also ensure
the quality of components coming from their supply chain.
Quality management in shipbuilding and ship servicing processes plays a significant role due
to potential risks that may arise from damages to the ship caused by poor quality. Quality
management becomes an important tool to reduce failures in various components and
structures. Shipbuilding involves specific processes, and quality management should
encompass all processes during construction and servicing. The key processes during
construction are welding, testing welded joints, distortion treatment, and painting. For each of
these, qualified personnel, qualifications for the involved procedures, and qualifications needed
for assessing materials and consumables are required. Operational procedures for each
manufacturing step and for auxiliary operations must comply with certain quality standards.
The concept of quality comes from the Latin word "qualitas," which translates to property,
capability, and value. Defining the concept of quality is challenging but is often associated with
value and utility. Quality is a measure or indicator of the extent or amount of utility to meet a
25
specific need at a particular place and time. Quality is an absolute assumption of its social
recognition and transformation.
Shipbuilding is the most important means of transporting goods worldwide. Poor ship structure
can involve three types of damages: loss of human lives, damage to shipped goods, and
environmental issues ranging from minor to major disasters related to the marine environment.
Due to all these problems, failures in maritime structures should be avoided, and it starts with
the design and ends with the operation of the ship.
Shipbuilding-specific production includes cutting processes, welding processes, distortion

removal, along with auxiliary processes related to the application of the main operation.
Standards cover the main requirements for quality, but specific conditions usually exceed the
requirements contained in the standards. These situations are addressed by developing a control
plan aimed at discovering the discussed characteristics. The document or plan is the basis of
control applied before, during, and after ship construction. The manufacturer of welded
constructions should take responsibility for all points of the document. Therefore, it can be said
from the above that quality is a characteristic of the finished product, in this case, a ship that
meets all set requirements. The quality features determine the functionality of the ship and
determine its reliability and durability.
1.1. RESEARCH PROBLEM

The research problem contributes to understanding the importance of quality in shipbuilding
and ship servicing processes. Shipbuilding is a large industrial sector, a complex economic
activity that takes place on the coast and has been one of the primary economic activities at sea
since the beginning of human civilization. This complex economic activity encompasses both
shipbuilding and ship repair activities. Quality is essential in key processes crucial to ship
construction, such as cutting parts, welding, testing parts and welded joints, straightening parts
that have undergone distortion due to processing and after construction—these are essential
processes in building the structure to protect the ship from corrosion. Also, the quality system
is crucial in blasting and painting, the last two very important processes. Therefore, when
applying the quality system, special attention should be paid to relationships at the management
26
level and relationships at the coordination level. Welding is one of the most critical operations
in shipbuilding. When welds fail, the entire structure often fails. More than sixty years of
research and development in the field of welding have enabled shipbuilders to have production
processes that are easily automated, can reliably produce consistent welds, and/or can weld
thick parts in one pass for controlled distortion. Expectations for the quality of welds have
never been higher. This paper summarizes how consistent weld quality is achieved in practice
through the rules of classification societies, welding procedure qualification, welder
certification, and weld supervision and control. However, no matter how rigorous quality
control is, sometimes things go wrong. There are also a variety of methods that can help
mitigate the consequences of poorer weld quality. For shipbuilding, repair welding is usually
the main strategy, and the importance of repair welding will be discussed. However, it may not
always be necessary to cut out the weld and start over. Methods such as fitness-for-service
assessment and fatigue improvement techniques can be applied to justify whether imperfect
welds are still suitable.
1.2. RESEARCH SUBJECT

The subject of this research is to analyze the importance of quality in shipbuilding and ship
servicing processes. The project marks the beginning of ship construction, i.e., the shipyard
management conducts an economic analysis based on the project and technical feasibility.
Depending on the type and complexity of the project, top management selects the project
manager. The project manager will be in charge and will apply direct supervision over the
coordination of the process. The second level relates to the coordination of the involved
processes. Coordination of quality control, materials involved in production, technology to be
used in production, logistics required for the implementation of technology (equipment,
devices, tools, etc.), types and levels of qualifications, environmental impact, and production
efficiency should be considered primarily. The new quality concept is based on an opposite
vision compared to the actual and common vision, i.e., the step-by-step construction and
production application, taking into account the minimum requirements that can prove the
quality of the ship's structure. Then the concept should start with inspection planning, i.e., apply
the first necessary inspection, which is the inspection planning document, i.e., the document
that the manufacturer must constantly complete from receiving the construction project to
product delivery. This document covers all requirements for the manufacture and installation
27
of general structural components. The document, i.e., the inspection planning, contains the
following chapters:
Documentation - receipt and availability of all necessary (approved) documentation (e.g.,

drawings, procedures, checklists, certificates, etc.)
Personnel - check the qualifications of welders, inspector qualifications, operator

qualifications,
Tools – check if the certificates of the required tools are available and correct (e.g., tools for
tightening, lifting, measuring, welding, cutting, etc.)
Material - check if the certificates of the required materials are available and correct, check if
received materials are delivered according to the order (e.g., type, size, weight, etc.), check the
thermal number of materials, check the conditions for storing materials and consumables
Cutting – approval of the cutting plan, verification of the performance and calibration of cutting
equipment and measuring tools, check environmental conditions, check dimensions after
cutting, check the final cut,
Welding – approval of welding procedure specifications, approval of welding performance,

qualification, operation check, and calibration of welding machines and equipment for
monitoring, check of consumables; check environmental conditions, check welded joints,
check repaired welds.
Blasting and Painting – check if the certificates of the required abrasive particles for blasting
and consumables for painting are available and correct, check if received abrasive particles and
paint are delivered according to the order,
Final inspection – perform final visual inspection, control dimensions (size, weight)
Final delivery and documentation – approval of final documentation, final delivery.
From the above, it can be seen how the shipbuilding process is a complex process, and the
inspection planning document needs to address precisely those outputs that need to be under
control. Therefore, the shipbuilder is obliged to enable control and supervision of his work.
Supervision of the shipbuilder and his work is carried out as supervision by a classification
28
society. This supervision begins from the first drafts and lasts until the completion of ship
construction, and even during sea trials, where the functionality and correctness of the ship and
its devices are checked and tested. Also, constant supervision of the ship construction process
is needed, controlling the quality of the materials used to build the ship.
1.3. RESEARCH OBJECTIVE

The general aim of the research is to explain the concept and purpose of quality, as well as the
role and importance of quality in shipbuilding and ship servicing. The goal of the paper is to
present the concept of quality management dedicated to processes specific to shipbuilding.
Building a ship involves the processing of certain materials. The aim is to highlight how
improper execution of work can result from incorrect or poor performance and the use of weak
or insufficiently quality materials. According to the new quality concept based on the
inspection planning, the goal is to emphasize how quality control is carried out according to
processes such as cutting parts, welding, straightening, non-destructive methods of quality
control, straightening processes, and blasting and painting processes.
1.4. RESEARCH HYPOTHESES
Research hypotheses:
H1: Quality has an impact on the value and usefulness and is an indicator of utility value
in shipbuilding and ship servicing.
H2: The quality management system in shipbuilding influences the improvement of

overall ship performance and its longer exploitation.
H4: The new quality control concept based on the inspection planning plays a significant
role in quality control in shipbuilding.
H5: The cost of poor quality in shipbuilding cannot be completely eliminated, but it can
be minimized because quality costs are part of the overall cost structure during ship
construction.
29
1.5. RESEARCH METHODS
In the preparation of the paper, secondary sources of scientific and professional literature and
internet sources relevant to the field of quality and shipbuilding were used. In accordance with
the stated subject and problem of the paper and the set goals, methods of analysis, synthesis,
classification, comparison, induction, and deduction will be used.
− The synthesis and analysis methods will define basic concepts and their breakdown.
− The compilation method sets already proven conclusions of other authors.
− The comparison method facilitates the explanation of certain facts and phenomena.
− The induction and deduction methods will bring conclusions and assertions.
1.6. SIGNIFICANCE OF THE RESEARCH

The purpose and significance of this paper are to provide a theoretical contribution to
understanding the importance of quality in shipbuilding. By presenting facts and insights, the
paper contributes to understanding the procedures for evaluating quality in ship construction
and ship servicing.
The proposed paper will provide answers to the following theoretical questions:
• What is quality?
• Why is quality important in the shipping industry?
• What techniques and procedures are applied in assessing the quality of ship construction?
• How is the new quality concept based on the inspection planning implemented?
• What are the techniques and procedures for ship servicing?
• Does quality affect safety in the maritime industry?
In the paper, the importance of the new quality control concept based on the inspection planning
will be emphasized. Specifically, through all stages of ship structure construction, such as
cutting parts, welding parts, testing parts and welded joints, straightening parts, and corrosion
protection and blasting, it will be explained how the quality control system is implemented.
30
2. CONCEPT OF QUALITY
Defining the concept of quality is challenging, but multiple definitions are possible.
Quality requires observation through its polarity, which is quality in relation to non-quality. It
is also necessary to consider the constant of human action throughout all evolutionary periods,
which may influence management within that polarity.1
Shipbuilders must adhere to strict industry standards. An effective quality management system
can manage suppliers at levels 1, 2, and 3, including their subordinates. This is an important
consideration because ERP systems usually do not enable tracking of subcontractors. Real-
time data exchange for corrective actions of suppliers, documents, non-conformities, delegated
inspections, surveys, and audits significantly improves collaboration with suppliers and leads
to higher quality products. Supplier performance data can be used to improve the supplier's
cost of quality. Managers can also see supplier management details such as approval status or
approvals for specific processes.
Shipbuilders may consider the resulting distortion from welding as a major problem. Any
process using a localized heat source, such as welding, is likely to result in some distortion.
However, distortion can be minimized in welded joints using low heat input and avoiding
excessively large welding bead sizes. The use of templates and fixtures or pre-positioning
components to compensate for potential distortion can also help. Most distortions are corrected
after welding using localized flame heating to restore the required dimensions.
Distortions associated with welded joints can cause problems for the strength and stiffness of
the ship's structure and the appearance of the finished vessel. Preventing and rectifying
distortions can be a significant cost in shipbuilding. Despite being a major topic itself,
distortion is even associated with the best-welded joints and is not a problem of weld quality
per se, so it will be addressed in this paper.
1
Drljača, M., Troškovi kvalitete – povijesni razvoj spoznaja i perspektive, Zbornik radova 5. Simpozija Suvremena
stremljenja u upravljanju kvalitetom, Hrvatsko društvo menadžera kvalitete i Oskar, Zagreb, Trogir, 2003, str.
151-159.
31
2.1. DEFINITION OF QUALITY
The concept of quality comes from the Latin word "qualitas," which means property,
capability, value. Quality can also be defined in various ways. One of the most commonly used
definitions of quality is: "quality is customer satisfaction."2
Defining the concept of quality is challenging, but it is often associated with value, utility, or
even price from the consumer's perspective. The meaning of the concept of quality has
expanded to include error-free production, continuous improvement, and customer focus.3
Manufacturing companies began focusing on quality improvement in the 1980s to achieve
competitiveness and higher profits.4
Quality is a measure or indicator of the extent or amount of the utility of a product or service
to meet a specific need at a particular place and time.5 Thus, the quality of a product is the
ultimate assumption of its social recognition and transformation into a commodity, thereby
simultaneously being a fundamental condition for the life and work of any producer and their
presence in the market.
Quality is a characteristic of a product or service that meets all specified requirements. Quality
features are classified into three basic groups:6
− Features that determine the functionality of the product,

− Features that determine the reliability and durability of the product,
− Features that constitute a hedonistic addition to the product.
2
Lazibat, T., Baković, T., Poznavanje robe i upravljanje kvalitetom, Zagreb: Ekonomski fakultet, 2012., p. 151.
3
Lazibat, T., Upravljanje kvalitetom, Znanstvena knjiga, Zagreb. 2009. , p. 12.
4
Pekanov Starčević, D., Mijoč, J., Vrdoljak, T. Mjerenje utjecaja potpunog upravljanja kvalitetom na financijsku
uspješnost hrvatskih poduzeća. Ekonomski vjesnik : Review of Contemporary Entrepreneur ship, Business, and
Economic Issues, XXV(2), 2012., p. 293.
5
Gašpar, A., Sustav upravljanja kvalitetom, https://hvk.hr/hrv/skupovi/vdani11/prezentacije/pdf/gaspar-
sustav_upravljanja_kvalitetom.pdf (12.03.2022.)
6
Jolić, N., Kvaliteta i normizacija,
https://www.fpz.unizg.hr/njolic/dip/pdf/Kvaliteta_i_normizacija_Predavanja.pdf, (02.03.2022.)
32
Meaning of
quality
Manufacturer's Buyer's
perspective perspective
Quality compliant Design quality

Production Marketing
with requirements
Compliance with Quality

specifications characteristics
Cost
Cost
Usability value for

the customer
Figure 1. Meaning of the Concept of Quality
33
Source: Quality System and Risk Management, a mini guide for the business community, 2015, p. 12.
For quality, it is important that customer satisfaction comes first since the ultimate judgment
of quality, and consequently the market success or failure of a product or service, is made by
the customer. Manufacturers associate quality with the design and production of products to
meet consumer needs. The quality of a specific product or service can be interpreted differently
due to the uniqueness of opposites and socio-historical categories, under the direct influence of
three parameters, such as:7
− Performance from the standpoint or observation point where participants in the process of
creation, exchange, and use of a particular product have different perspectives on the quality of
that product.
− Replacement effect where the direct dependence of product placement (low-quality, high-
quality, and luxury) on a particular market depends on the purchasing power of the average
buyer. It indicates that all users have the ability to distinguish quality products, but they will
buy the product they can afford.
− Transformation effect indicates how certain market and time-related changes occur in
individual quality parameters.
Thus, quality could be attributed different meanings in different circumstances. The word
"quality" does not only mean the quality of the produced product. It can refer to the quality of
processes (i.e., people, materials, and machines), and even the quality of management. When
a quality-produced product is called or defined as product quality, it is the degree to which it
meets customer requirements. It is not absolute but is judged or achieved by comparison with
specific standards.
Quality begins with product design according to needs, includes established measurement
standards, the use of appropriate materials, the selection of a suitable production process, etc.,
because quality is a relative concept and is generally used in relation to the ultimate use of the
product. The quality of a product or service is the suitability of that product or service to meet
or exceed the intended use according to customer requirements.
7
Lazibat, T. op. cit., p. 12.
34
QUALITY
(from an
effectiveness
standpoint)
Quality from
Quality from Quality from Quality from
the
the consumer's the market the societal
manufacturer's
standpoint standpoint standpoint
standpoint
Construction Manufacturing
Design quality
quality quality
Figure 2. Quality According to the Performance Perspective
Source: Lazibat, T. Quality Management, Scientific Book, Zagreb. 2009.
Quality from the user's perspective relates to the level of inherent utility of a product or service
in meeting a specific need. If the inherent utility is higher than the desired/required value, it is
considered a luxury item. If the utility value is equal to the desired/required value, it is a quality
item, and if the utility value is lower than the desired/required value, it is a low-quality item.
Quality from the manufacturer's perspective is a measure that indicates how successful a
particular product intended for the market was:8
1. Conceptual parameter showing how well the conceptual project (later the finished product) met
the desires and requirements of the customer (user) to satisfy a certain need, especially in
comparison to similar products of competitors.
2. When defining the quality of the concept, it is very important to know the needs, taste, desires,
and conception of the target user group in the future product. Constructional (how high is the
construction quality). The relationship of utility values between two conceptually equally
quality products.
8
Ibid., p. 13.
35
3. Performance-based (how high is the manufacturing quality). The level to which the
manufacturer can realize the qualities of the concept and construction in regular production on
each individual obtained product.
Quality from the market perspective is the degree to which a particular product better satisfies
a specific customer compared to similar products from competitors. Quality from society's
perspective (state, region) is the degree to which certain products and services have passed the
buying and selling process, confirming themselves as goods and making a profit in the process.9
The process through which standards are established and met is called control. This process
involves observing the performance of activities, comparing performance with a standard, and
then taking action if the observed performance significantly differs from prescribed and given
standards.
Shipbuilders can leverage the benefits of effective quality management solutions to manage
the CAPA process, non-compliances, receiving inspections, and quality audits. The system will
enable testing and recording of defects throughout the product lifecycle. Without this
functionality, components are certainly prone to failure. All artifacts supporting "As Built" in
relation to standard ERP versions can be recorded within the software to facilitate audit
concerns.
An integrated quality solution for the sales area can help shipbuilders achieve a paperless floor.
Real-time quality data can be synchronized with production data for an accurate picture of the
company. Redundant data entry and manual processes are eliminated, while automatically
creating an online repository of essential quality documents.
Today's shipbuilders face numerous challenges and uncertainties. With an established system
for effective quality management, they can establish a competitive advantage. The cost of
quality is reduced through less waste, rework, and warranty recalls. Using quality software
automation can achieve industry compliance and complete inspections.
9
Zambelli, S., Rajić. D., Analiza sustava kvalitete u certificiranim i necertificiranim hrvatskim vanjsko trgovinskim
poduzećima., Poslovna izvrsnost 8.1, 2014., p. 83-100.
36
2.2. FUNDAMENTAL FACTORS INFLUENCING QUALITY
Several fundamental factors influencing quality control can be identified. There are nine
fundamental factors that affect the quality of products and services, namely: markets, money,
management, people, motivation, materials, machinery, and mechanization. Contemporary
information methods and product assembly requirements:10
1. Markets: Due to technological advancements, many new products satisfying customer desires
can be observed. Simultaneously, customer desires are dynamically changing. Therefore, the
role of companies is to identify needs and then satisfy them with existing technologies or by
developing new ones.
2. Money: Increased global competition requires significant expenditures for new equipment and
processes. This should be rewarded with improved productivity. This is possible by minimizing
quality costs associated with maintenance and improving the level of quality.
3. Management: With the increased complex structure of business organizations, quality-related
responsibilities lie with individuals at various levels within the organization.
4. Human Resources: The rapid growth of technical knowledge leads to the development of
human resources in various specializations. This requires groups like systematic engineering
groups to integrate the idea of full specialization.
5. Motivation: If responsibility for achieving quality is instilled in every individual in the
organization using appropriate motivation techniques, there will be no issues in producing
designed quality products.
6. Materials: Selecting appropriate materials that meet the desired tolerance limit is also an
important consideration. Quality attributes such as surface finish, strength, diameter, etc., can
be achieved through the proper selection of materials.
7. Machinery and Mechanization: To have quality products leading to higher productivity in every
organization, advanced machines must be used, and various operations must be mechanized.
8. Contemporary Information Methods: Modern information methods help in storing and
retrieving data necessary for production, marketing, and servicing.
9. Product Assembly Requirements: Product diversification to satisfy customer tastes leads to
complexity in design, production, and quality standards. Therefore, companies should plan an
adequate system to address all these requirements.
10
Kvaliteta, upravljanje proizvodom i poslovanjem, https://www.wisdomjobs.com/e-university/production-
and-operations-management-tutorial-295/quality-9624.html, (02.03.2022.)
37
2.3. QUALITY DEVELOPMENT
The history of quality is divided into five phases:11
1. Supply is less than demand; customers couldn't find the products they wanted.
2. Balancing supply and demand; establishing harmony between customer demand and product
supply.
3. Increased product supply; facing challenges in the market due to high competition.
4. Change and expanded understanding of products; emphasis on services, increasing significance
of product quality.
5. Customers are no longer the sole focus; other areas such as the environment become important,
leading to the development of integrated management systems.
Supply less Balancing Increased Greater Integrated

than supply and product emphasis manageme
demand demand supply on quality nt systems
Figure 3. Phases of Quality Development

Source: World of Quality, available at: http://www.svijet-kvalitete.com/index.php/povijest
(01.03.2022.)
The concept of company quality is difficult to define, and its size cannot be measured. The
quality of a company can be expressed as: 12
- Product quality,
- The quality of service provided by the manufacturer to the consumer during the consumption
process of their product, e.g., services, parts availability, etc.
- Fairness in relationships with partners, customers, suppliers, in terms of accuracy in fulfilling
their obligations,
- Fairness towards employees, respecting their rights, caring for advancement, etc.
- Compliance with laws, morals, and customs, and the inclusion of respective moral norms in
business policy,
- Environmental protection, general safety in the production process and in the consumption
process of the produced product, and so on.
11
Svijet kvalitete, available on: http://www.svijet-kvalitete.com/index.php/povijest (01.03.2022.)
12
Skoko, H., Upravljanje kvalitetom, Sinergija, Zagreb, 2000., p. 9.
38
2.4. QUALITY MANAGEMENT SYSTEM
Every company implements a certain quality management system, and the reason for
this is that a service cannot survive in the market if it does not have its customer.
Types of quality management systems:13
- Standardized quality management systems,

- Management of changes and improvements.
Standardized management systems are based on international forms. Standards usually do not
have mandatory application. The obligation is determined by documents issued by state
institutions authorized for control. In this case, the state usually obliges to apply standards
related to product quality and health and environmental protection, while the application of
other standards is left to market mechanisms.14
Objectives of standardization:
1. Ensuring the suitability of a product, process, or service to serve its purpose under certain
conditions,
2. Limiting diversity by choosing the optimal number of types or sizes,
3. Ensuring compatibility of various products,
4. Health protection, safety, environmental protection,
5. Removing barriers to trade.
Some of the most commonly used standardized quality management systems are:
- ISO 9001:2008 standard

- ISO 14001:2004 standard sets requirements for planning, establishing, implementing, and
controlling an environmental management system.
In the following work, TQM will be explained in more detail, and greater attention will be paid
to the ISO 9001 standard.
13
Sustavi upravljanja kvalitetom, available on:
file:///C:/Users/X/Downloads/4%20Sustavi_upravljanja_kvalitetom_QM02_2013.pdf (02.03.2022.)
14
Kuliš, Šiško, M., Upravljanje kvalitetom, Ekonomski fakultet Split, 2010., p. 150.
39
2.5. QUALITY MANAGEMENT SYSTEM (QMS)
A Quality Management System (QMS) is a set of interrelated processes for controlling
service provision with the aim of maintaining and continuously improving quality. The system
comprises elements that are interconnected and operate together. The management system is a
documented and tested method implemented step by step, directed towards the organization's
functioning through standard practices. The management system is a system by which the
established policies and objectives of the organization are achieved.15
There is a whole range of management systems designed for various areas of operation. Thus,
a quality management system can deal with:16
− Quality issues,
− Health and safety, or
− Issues of energy efficiency.
Management systems in organizations have the possibility of being implemented and

maintained individually, but the use of integrated management systems is becoming more
common. The official definition of the American Society for Quality (ASQ) states that quality
management is the application of formalized systems to achieve maximum customer
satisfaction while minimizing total costs and achieving continuous progress. A formalized
quality management system requires documented:
− Organizational structure,
− Employee responsibilities,
− Procedures necessary to achieve effective progress in terms of quality.
Certain approaches to quality management are still evolving, but several elements are
fundamental, such as focusing on customer needs, including benefits, weaknesses,
opportunities, and threats. Quality management represents the top of the quality pyramid for
several reasons:17
− Quality management builds on the concepts of quality assurance and quality control. Quality
management occupies an important place in strategic planning, i.e., it is based on strategic
15
Britvić, J., Moderni sustavi upravljanja u organizacijama, Praktični menadžment, vol.2, .br.2, p. 72.-80.
16
Ibidem.
17
Lazibat, T., op.cit., p. 14.
40
decisions made by the company's management, which are then sought to be realized through
various methods and tools throughout the company.
− Quality management is actually part of strategic planning. Strategic planning is defined as a
systematic approach to defining the long-term goals of the company and the means to achieve
those goals.
− Quality management as an integral part of strategic planning begins with creating the mission
and vision of the company.
Total Quality Management (TQM) is a management technique that involves continuous

efforts by the management and employees of an organization to ensure customer
satisfaction, gain their loyalty for future business opportunities, and attract other potential
clients. This management approach has been used in other industries for a long time.
The maritime industry today is highly competitive. Due to reduced freight rates and
increased operating costs, the profit for shipowners is constantly decreasing. They have
realized that, to survive in their business, they must provide a service that will be beneficial
for both shipowners and clients. If the customer is satisfied, they will be loyal to the service
provider.
Total Quality Management is a user-oriented management technique that ensures that every
employee works on improving work culture, processes, services, and systems, ultimately
resulting in the customer getting what they want, and perhaps even more, within the
required timeframe and desired quality.
All ship classification societies require the use of approved welding procedures. For
example, DNV allows the approval of welding procedures in one of three different ways.
First, if the Welding Procedure Specification (WPS) is based on another approved welding
procedure. Second, based on the review of documentation showing the successful
application of the WPS over an extended period. Third, and most commonly, the approval
of the welding procedure is done by reviewing the Welding Procedure Qualification Record
(WPQR), collected from the assessment of the test weld made using the WPS. The
International Association of Classification Societies (IACS) standard for shipbuilding and
repair quality (1999) also requires that the welding procedure be supported by such a record
of welding procedure qualification.
41
2.6. ISO 9001 STANDARD FOR QUALITY MANAGEMENT SYSTEMS
The development of standards for quality management primarily occurred due to the
belief that such standards would significantly enhance and facilitate international trade. A
product manufactured according to an international standard can be sold anywhere in the world
where that standard is adopted, greatly facilitating trade. The establishment of standards for
quality management systems brought another significant advantage, namely, all products from
a manufacturer certified according to an internationally recognized quality management system
automatically received a "passport" for the international market.18
ISO 9001 sets criteria for a quality management system and is the only standard in the family
that can be certified (although certification is not a requirement). Any organization, regardless
of size or industry, can use it. In fact, there are over a million companies and organizations in
over 170 countries with ISO 9001 certification. This standard is based on several quality
management principles, including a strong customer focus, motivation and implication of top
management, a process approach, and continuous improvement. These principles are further
explained in the ISO quality management principles. The use of ISO 9001 helps ensure that
users receive consistent, quality products and services, bringing many business benefits in
return.19
ISO 9001 was applied when a company had the entire product (life) cycle of the product—
from design to service.20 The development of quality manuals originated in the United States,
where in the 1950s there were already high requirements for quality in the field of military
industry and later high requirements for the safety of nuclear power plants. The development
began in 1963 with the MIL Q 9858 standard and expanded in all Western countries.21
Then, a whole series of manuals emerged: factory, industry-specific, and national, which were
eventually consolidated into the international ISO 9000 series. From the MIL Q 9858 standard
in the early 1970s, the NATO AQAP manual was developed. In NATO member countries, it
became a mandatory integral part of contracts to ensure quality in deliveries of goods for the
18
Ibidem.
19
Šuman, S., Kovačević, A., Davidović, V. Quality standards–still unused potencial. Zbornik Veleučilišta u Rijeci,
1(1), 2013., p. 291-306.
20
Upravljanje kvalitetom, http://www.svijet-kvalitete.com/index.php/upravljanje-kvalitetom/472-upravljanje-
kvalitetom (04.03.2022.)
21
Ibidem.
42
military. With the development of international trade and the increase in its volume, there was
a need for a unified international quality assurance system.
Thus, the International Organization for Standardization (ISO) issued the international
standards of the ISO 9000 series in 1987, which also come as European standards EN 2900.
The standard was issued to standardize requirements related to quality in the mutual trade of
European countries and countries trading with European countries.
The standard was developed with five basic objectives:22
1. Achieving, maintaining, and seeking continuous improvement of the quality of products

(and services) concerning the specified requirements.
2. Improving the quality of operations aimed at continuously meeting the implied needs of
customers and stakeholders.
3. Providing trust to internal management that quality requirements are met.
4. Providing trust to customers and other stakeholders that quality requirements are embedded
in delivered products and services.
5. Providing trust that the requirements of the quality system are fulfilled.
Globalization, an increasing number of competitors, a more demanding market, the

requirements and needs of employees, partners, and clients, the speed of changing business
environments—all pose increasingly challenging tasks for every company, as well as a
challenge to prove capability and responsibility. The crucial market factor that sets a particular
company apart from all others, and at the same time is the most competitive weapon of
numerous companies worldwide, is the quality of products and services. This can be achieved
through a certified or non-certified quality management system in the company.23
22
Upravljanje kvalitetom, op.cit. (04.03.2022.)
Miletić, A., Krajnović, A., Bosna, J., Upravljanje kvalitetom hrvatskih tvrtku- izvoznica EU, Tranzicija, 16(34),
23
2014., p. 93.
43
2.6.1. HISTORY OF THE ISO ORGANIZATION
The International Organization for Standardization was established in 1947 by a group
of delegates from 25 countries. Sixty-seven original technical committees of ISO came together
with the common goal of ensuring safe, reliable, and quality products and services. ISO is an
independent, non-governmental international organization with membership from 167 national
standards bodies. Through its members, it brings together experts for the exchange of
knowledge and the development of voluntary, consensus-based, market-relevant international
standards that support innovation and provide solutions to global challenges.24
Figure 4. ISO Organization Logo
Source: ISO, https://www.iso.org/about-us.html, (04.03.2022)
Back in 1947, the purpose of the newly established organization was to facilitate the
coordination and harmonization of standards developed by its member bodies, all of which
were national standardization bodies in their respective countries. The founders decided that
the organization would be open to all countries willing to collaborate with equal rights and
equal responsibilities. These fundamental principles still apply today, and the ISO family has
flourished, including 163 members from almost every country worldwide. Standardization has
come a long way, and ISO international standards, now covering almost all aspects of
technology and business, will continue to bring positive changes to the evolving world.25
24
ISO, https://www.iso.org/about-us.html, (04.03.2022)
25
Ibidem.
44
After the organization's creation, 67 groups of experts (called technical committees)
were established in specific technical areas such as tools, maritime technology, food, textiles,
paints, and laboratory equipment, with a mandate to develop international standards. This led
to the creation, in 1951, of the first ISO standard (then called "Recommendations") - ISO/R
1:1951, Standard Reference Temperature for Industrial Length Measurements. Since then, the
ISO portfolio has expanded to over 22,000 standards that support all significant technological,
environmental, and social changes that have occurred globally.26
ISO has spent 70 years creating standards that have shaped history and accompanied the world's
greatest innovations. From standardizing materials, components, and equipment for the
aerospace or automotive industry to measuring environmental pollutants, from establishing
management systems to ensure food safety in the supply chain to creating guidelines for
human-robot interaction, the need for international standardization has always evolved in line
with the needs of industry and society.
ISO has expanded its stakeholder base, bringing different areas of operation and production
into standardization, such as consumers or developing countries. In the 1950s, numerous new
ISO member bodies joined from developing countries. To address the needs of these members,
ISO established the ISO Committee on Developing Country Matters (ISO/DEVCO) in 1961,
helping them maximize the benefits of participating in standard development. Today, three-
quarters of ISO members are from developing countries.
Another vital role of standards is to help improve consumer satisfaction and safety. Integrating
their perspectives into standard development is crucial because real-life insights help ensure
that issues such as safety and quality are adequately addressed. The importance of influencing
consumers was confirmed in 1978 with the establishment of the Council Committee on
Consumer Policy, now officially known as the ISO Committee on Consumer Policy
(ISO/COPOLCO), to promote and encourage consumer interests in standards.27
26
Sustavi upravljanja kvalitetom, op.cit., (02.03.2022.).
27
Ibidem.
45
Effective and comprehensive stakeholder participation is crucial for maintaining the relevance
of international standards. To ensure a strong connection between standards and innovation,
ISO has built collaborative relationships with a network of global and regional organizations,
including partnerships with the International Electrotechnical Commission (IEC) and the
International Telecommunication Union (ITU), and established connections with over 700
international organizations working in areas related to standardization. Furthermore, the
contribution of large and small businesses, regulatory bodies, and governments worldwide is
fundamental to the proper functioning of ISO.
"In the last 70 years, ISO has developed standards that drive industrial progress, promote global
trade, and improve health, safety, and the environment. Looking to the future, it is clear that
the world is facing numerous challenges that transcend national borders. Climate change, water
scarcity, cybersecurity, and large-scale migrations are just some of the issues companies face
today, requiring integrated, international action. Many of these challenges are included in the
17 Sustainable Development Goals (SDGs) adopted by the United Nations as part of its 2030
Agenda for Sustainable Development. Launched in 2015, the SDGs have set ambitious goals
for the next 15 years and will help focus international action on ending poverty, protecting the
planet, and ensuring prosperity for all. The ISO community has many standards that can help
organizations and companies address this plan.
Therefore, ISO standards provide:28
− requirements,
− specifications,
− guidelines,
− characteristics.
The purpose is to ensure that products and services are safe, reliable, and of good quality. ISO
standards are developed by groups of experts (representatives from the industry, non-
governmental organizations, governments, and other stakeholders) from around the world
28
ISO, op.cit., (04.03.2022.)
46
within technical committees. ISO standards are developed using a consensus-based approach,
combining feedback from all stakeholders. The development process follows a series of well-
defined stages, from proposal to publication. The International Organization for
Standardization has a six-stage process for standard development. The stages include the
following:29
1. Proposal stage: The first step in developing a new standard begins when industrial associations
or consumer groups submit a request. The relevant ISO committee determines whether a new
standard is genuinely needed.
2. Preparatory stage: A working group is established to prepare a working draft of the new
standard. The working group is composed of experts in the subject area and stakeholders from
the industry. When the draft is deemed satisfactory, the parent committee of the working group
decides on the next phase.
3. Committee stage: This is an optional stage during which members of the parent committee
review and comment on the draft standard. When the committee reaches a consensus on the
technical content of the draft, it can move on to the next phase.
4. Enquiry stage: The draft standard in this stage is called the Draft International Standard (DIS).
It is distributed to ISO members for comments and, ultimately, voting. If the DIS is approved
in this stage without any technical changes, ISO publishes it as a standard. If not, it moves to
the approval stage.
5. Approval stage: The draft standard is submitted as the Final Draft International Standard (FDIS)
to ISO members. They vote to approve the new standard.
6. Publication stage: If ISO members approve the new standard, the FDIS is published as the
official International Standard.
ISO members participating in the process vote on standard approvals. A standard must receive
affirmative votes from at least two-thirds of participating members and negative votes from no
more than one-fourth of participating members.
29
Ibidem.
47
2.6.2. ISO CERTIFICATE
Concerning ISO standards, certification is the assurance from a certification body that
a service, product, or system meets the requirements of the standard. While ISO develops
standards, third-party certification bodies certify compliance with these standards. According
to ISO, the term "ISO certification" should never be used to imply that a product or system is
certified by a certification body as compliant with an ISO standard. Instead, ISO suggests
referencing certified products or systems using the complete identification of the ISO standard.
For example, instead of saying "ISO certified," ISO recommends using the term "ISO
9001:2015 certified." This fully identifies the standard being certified, including the version—
ISO 9001, in this case, published in 2015. Although ISO does not issue certificates, its
Committee on Conformity Assessment works on standards related to the certification process.30
2.6.3. REVISIONS TO THE ISO STANDARD

Internal audits of ISO 9001 are inspections in which a company assesses whether all
ISO 9001 requirements are being followed. Internal audits are conducted not only during the
implementation of ISO 9001 but also periodically after obtaining ISO 9001 certification. All
internal audits are carried out by a company employee trained to audit ISO 9001. The auditor's
job is to confirm that the company complies with the requirements of the Standard as described
in the Manual. After the audit, if no significant irregularities are found, the company will be
ready for the review of the ISO 9001:2015 certificate. To achieve ISO 9001 certification, an
independent third-party auditor is needed, who visits the company and conducts a certification
audit. The ISO 9001 certification audit can be conducted soon after completing the internal
audit.
The introduction and certification of a quality management system according to the ISO
9001:2015 standard depend on the size of the organization and the diversity of processes,
products, or services, typically taking between 3 to 12 months on average. Management
support, proper organization, the existence of already implemented individual elements of the
30
https://www.iso.org/about-us.html (04.03.2022.)
48
quality management system, employee education, and motivation can expedite and facilitate
the introduction and maintenance of the quality management system.31
Benefits of implementing ISO 9001:2015 include reducing overall business costs, increasing
profit, managing business risks, ensuring customer satisfaction, better market opportunities,
building customer trust, controlling all processes, greater employee responsibility, better
employee training and education, achieving teamwork, increasing employee awareness of
quality, better use of time and resources, continuous improvement of quality and efficiency,
and positioning in society as successful, among others.32
Some of the most popular ISO standards include:33
− ISO/IEC 27000: These security standards define a six-step process for developing and
implementing information security policies and processes.
− ISO/IEC 17799: This security management standard lists over 100 best practices for business
continuity, access control, asset management, and more.
− ISO/IEC 20000: This ISO standard creates a technical specification and codifies best practices
for IT service management.
− ISO/IEC 12207: This ISO standard establishes a consistent life cycle management process for
all software.
− ISO 9000: This family of standards defines how organizations can establish and maintain
effective quality assurance systems for manufacturing and service industries.
In 2000, there was a significant revision of the ISO 9000 standard. The reasons for the revision
included:34
− Lack of knowledge
− Underestimation
− Certification as the sole objective
− Incorrect interpretation of the three basic models
− Excessive additional standards, guidelines, and recommendations
− Strong connection with material production
− Static nature
− Disregard for resources
31
Sustavi ISO, https://www.oskar.hr/poslovno-savjetovanje-iso-sustavi/iso-9001-sustav-upravljanja-
kvalitetom/, (05.03.2022.)
32
Ibidem.
33
ISO, op.cit., (04.03.2022.)
34
Lazibat, T. op. cit., p. 15.
49
− Absence of systematic improvement (kaizen)
− Lack of a designed feedback system
− Insufficient focus on the customer
− Lack of connection with related areas
− Weak measurement and analysis techniques
− Profanation
One of the fundamental objectives of the standard revision was to bring it closer to the ideal of
total quality management (TQM). This is most evident through the fulfillment of the following
requirements:35
− The organization must have a process defining customer needs and expectations, translating
them into internal requirements, and measuring customer satisfaction or dissatisfaction.
− Management must convey the importance of the ISO 9000 standard to all employees, integrate
the standard into business plans, set measurable objectives, and conduct management reviews.
− Organizations must view their tasks as processes and manage a system of interconnected
processes.
− Analysis of customer, product, and process satisfaction must be conducted, with an emphasis
on achieving continuous improvement.
− The effectiveness of education must be verified to give employees an impression of the
importance of their role in achieving quality.
− While the previous version of the standard required organizations to implement preventive and
corrective actions, the new version mandates having a process for achieving improvement.
− The standard dictates that the organization continually improves the effectiveness of the quality
management system (QMS).
2.7. TECHNICAL QUALITY CONTROL

The quality of construction and the quality of comfort are two significant steps in which
quality is incorporated into the product in line with expressed consumer needs and desires. The
final judgment on how successful the manufacturer has been in this regard is made by the
customer, based on their perception of the product's quality. The quality of construction is
determined by market research and specifications, with the purpose of market research being
35
Ibidem.
50
to identify consumer needs. The construction concept results in a set of product specifications,
such as drawings, components, etc.
Perfectionism in construction quality appears in the form of:36
- Product durability that outlasts its obsolescence

- Expensive processing on a part of the object that is not visible or has no significance.
The quality of comfort means producing a product that meets specifications. For example, an
inexpensive product will be of high quality if it is made to specification, and if it does not meet
specifications, it will be of low quality. Perfectionism in comfort quality appears as:37
- Establishing comfort criteria above real consumer needs

- Establishing comfort quality criteria above economic justifications.
Quality control is carried out in different phases. Checks that are more frequently performed
include:38
− Inspection upon receipt of raw materials and parts that will be used in production or finished
products for further sale.
− Pre-production inspection. Usually, one unit or piece will be produced, and if it passes
inspection, production will continue.
− In-process inspection. Inspections will be conducted at intervals during the production process.
− Inspection after production. For many, this is considered the final stage of inspection and
testing. A sample or 100% of finished products will be inspected and tested.
− Inspection before dispatch. Orders issued by the customer will be reviewed and will not be
shipped until the final inspector approves them.
36
Skoko, H., Upravljanje kvalitetom, Sinergija, Zagreb, 2000., p. 47.
37
Ibidem.
38
Kontrola kvalitete prije isporuke, https://www.cleverism.com/quality-control-shipping-product/,
(15.03.2022.)
51
2.8. APPLICATION OF THE QUALITY SYSTEM IN MARITIME AFFAIRS
An obligation to implement a management system has been introduced at all levels of
the maritime community, specifically for:39
a) Classification societies, as independent organizations conducting ship inspections and

certification, often on behalf of International Maritime Organization (IMO) members. A
certified management system (ISO 9001, ISO 17021, QSCS standard) became a requirement
for their operation, starting in 1995.
b) Maritime companies managing vessels from safety and environmental perspectives (ISM Code
- implementation began in July 1998, with full application for all vessels over 150 GT in July
2006). Organizations involved in maritime education and training for seafarers (ISO 9001 -
implementation started in 2000).
c) Ports/terminals where cargo handling takes place (ISO 9001 - implementation began after
2004).
d) Shipyards, manufacturers of materials, machinery, and equipment installed on ships
(manufacturer approvals, material certification according to classification society rules -
implementation started in 1996).
e) Maritime administrations of IMO member states (usually ISO 9001 and other management
systems - implementation began after 2005).
Simultaneously, an internationally recognized independent inspection (assessment) system has

been developed at all levels of the maritime community, with penalties if there is evidence of
non-compliance. The most well-known ship inspection (assessment) system is called Port State
Control (PSC), which, in addition to inspecting technical standards on ships, includes
assessments of management systems established on ships. The implementation of the system
began in July 1982 with the signing of the Paris Memorandum known as the Paris MOU.
The IRI Maritime Services Group (MSG) is registered by BSI Assurance UK Limited, has an
ISO 9001:2015 certified quality management system under the American National
Accreditation Board (ANAB) and the United Kingdom Accreditation Service (UKAS). This
quality certification covers the management of operational and administrative functions of the
maritime registry program.
39
Bukša, T., Diferencijacija upravljanja kvalitetom kod cikličkih projekata u brodograđevnoj industriji
(disertacija), Rijeka, Tehnički fakultet Sveučilišta u Rijeci, 2012., p. 114.
52
ISO 9001:2015 is a quality standard used by companies whose products or services have
already been marketed, tested, improved, and approved. These companies focus their quality
efforts on maintaining and improving existing quality systems. ISO defines a management
system as a set of interrelated or interacting elements of an organization to establish policies
and objectives and processes to achieve those objectives, and quality as the degree to which a
set of inherent characteristics fulfills requirements. This includes organizational structure,
responsibilities, procedures, processes, and resources needed to implement a sustainable
quality management system. In the case of the RMI Maritime Administrator (Administrator),
this ISO 9001:2015 certification covers the registered activities IRI Maritime Operations has
the ISO 9001:2015 certificate.40
The Administrator was the first maritime administrator to receive the ISO 9002 quality
management system certificate. On March 16, 1995, IRI's MSG in Reston and New York were
certified and registered as having established a quality management system according to ISO
9002-1994. As a maritime administrator since 1948, IRI's MSG has developed an extensive
vessel registration program and maritime administration, continuing to provide quality-based
technical and administrative services to our clients worldwide. This experience allowed IRI to
initiate and successfully complete the ISO 9002 quality management system process in a very
short period. In 2003, MSG was certified according to the new ISO 9001:2003 standard.41
IRI is committed to maintaining this certification and continually improving and providing
high-quality services to vessel owners and operators worldwide. IRI's MSG in London also
successfully went through this rigorous process in 1998 for the ISO 9002 and again for the ISO
9001:2000 certificate. In 2008, IRI's MSG in Piraeus received the ISO 9001:2000 certificate.
In 2016, IRI expanded the list of approved locations to a total of 21 offices conducting the
above-mentioned activities. In 2017, IRI completed an extensive transition process and was
certified according to ISO 9001:2015.42
40
Ibidem.
41
Maritime general information quality information, https://www.register-iri.com/maritime/maritime-general-
information/quality-management/, (05.03.2022.)
42
Ibidem.
53
While quality management systems were originally developed for the manufacturing industry,
an increasing number of ship management and maritime service companies have or are in the
process of obtaining quality management system certification. The Implementation of IMO's
Flag State Implementation (FSI) Subcommittee also addressed the ability of maritime
administrations to ensure quality management and proper implementation of international
maritime conventions and regulations.
Certifying the quality management system of a maritime administration can be a significant

advantage in overcoming negative connotations of open ship registries and verifying the flag
state's ability to implement and administer international rules and regulations in today's
evolving maritime regulatory climate. ISO 9001:2015 certification provides an opportunity for
well-managed maritime administrations to document their operations, management, and
administrative functions with internationally recognized, impartial third-party auditors, such as
BSI Assurance UK Limited.43
These techniques can also be applied in the shipping/maritime industry. Regarding the ship's
chief engineer's role, clients would include the company, shipowner, and charterer. In terms of
overall quality management, important factors for customer satisfaction would result in:
− No incidents of downtime due to engine failure.
− No detentions/deficiencies during inspection checks.
− Low maintenance costs.
− No major deficiencies related to ISM.
− No losses or penalties for MARPOL violations.
− Sufficient time for processing.
Requirements related to cargo can cause significant losses for the charterer and shipowner. For
the chief engineer, it is essential to maintain all equipment in operation and in a state of
readiness at all times to ensure smooth loading, unloading, and transit. All alarms and shutdown
sensors should be tested ideally before each operation. Cargo heating coils should be tested for
leaks.44 Cargo handling cranes should be inspected and properly maintained. Cargo pumping
systems should operate with optimal efficiency, as well as cargo compression systems in gas
43
Ibidem.
44
TQM management, https://dieselship.com/management/total-quality-management/, (03.03.2022)
54
carriers. All staff responsible for maintaining cargo equipment should be well-trained and
familiar with its operation and maintenance. Critical spare parts should be identified, and the
inventory should be kept up to date.
Many ships, especially containers, have a dense schedule and must be loaded and unloaded
within a specified timeframe. Delays in shipping can lead to significant losses and potential
charter loss. For this reason, all machinery related to propulsion should be in optimal working
condition. Regular testing of alarms and shutdowns, as well as periodic maintenance for
components prone to rapid wear, is necessary. All standby equipment is tested and put into
operation at regular intervals. Adequate spare parts must be available on board.45 Responsible
engineers should be trained and familiar with the maintenance procedures for their machinery.
The trade of tankers greatly depends on successful inspection checks, i.e., zero observations
during inspections by oil companies. Charterers prefer to give their cargo to a ship that has a
good passage during inspections, and for newer ships, the rules are even stricter. Additionally,
many terminals require ships to have a good inspection record before allowing them to enter
their facility. The same applies to PSC inspections; detentions or a large number of deficiencies
can be very harmful to the reputation of the shipowner/manager. Also, the cost of rectifying
these deficiencies can be quite high, not to mention the lost time and costs when the ship is not
in charter. Considering all this, it is absolutely essential to motivate the entire engine room staff
to maintain high maintenance standards and overall ship performance.
As in any industry, profit increases when operating costs decrease. The same applies to a ship.
Running the ship at an optimal RPM for better fuel efficiency, as well as monitoring engine
performance and subsequent adjustments, can lead to reduced fuel costs. Ensuring the
availability of an updated inventory of spare parts on board will reduce demands, thereby
reducing unnecessary spare parts costs. While checking the draught to see if components can
be reused before replacement is another way to reduce costs. Inventory and records of
lubricating oil consumption help track oil consumption.46 Maintaining stocks of consumables
such as chemicals also reduces unnecessary orders and allows the ship to order these items in
45
Ibidem.
46
TQM management, op.cit., (03.03.2022.)
55
advance for the company to plan and organize in a suitable port, reducing delivery and
transportation costs. Proper planning and workload distribution can reduce crew overtime.
It is a well-known fact that all states are very strict regarding compliance with MARPOL
requirements. Companies spend thousands of dollars to train ship personnel on MARPOL
regulations and how to comply with them. Detention for violating MARPOL can be very
damaging to the company's reputation. Also, fines/costs imposed for MARPOL violations can
reach millions of dollars. It is important to comply with MARPOL regulations to prevent
imprisonment and personal fines.
Therefore, it is the duty of the chief engineer to ensure that the engineering staff is fully aware
of MARPOL regulations related to the ship they serve on and that they also comply with them.
All MARPOL equipment must be in good working condition and well-maintained, with
adequate spare parts inventory. The appropriate documentation and reporting procedure should
be followed. MARPOL equipment should be used, not just kept in a state of readiness for
display during inspections.47 All engine officers should be trained to use MARPOL equipment,
rather than assigning this duty to just one person.
A ship that can be loaded/unloaded quickly saves a lot of money in terms of port costs and
allows the charterer to plan more trips. Maintaining mooring winches in good condition will
help in faster mooring and unmooring. If the captain feels that the ship's maneuverability is
compromised, they will refuse to bring the ship into port. This can lead to high lay-up berth
costs. Therefore, it is necessary to keep the main engine well-maintained. If any maintenance
of the main engine is done in port, checks should be carried out well in advance before leaving
the pilot stations. Cargo facilities must be ready before operations begin.
Therefore, these objectives can only be achieved through teamwork. It is the duty to maintain
a good working environment in the engine room. An environment that encourages suggestions
and feedback regardless of rank. Deficiencies should be identified and appropriate training
47
Ibidem.
56
ensured. This will improve the overall planning process and ensure smooth operations,
ultimately leading to a high level of quality.48
2.9. QMS OF SHIPPING COMPANIES

It is interesting to note how shipping companies approach quality management. Firstly,
the ISM Code has incorporated many quality-related issues, mainly focusing on improvement
and compliance. The adoption of a quality management system should be a strategic decision
for every company. This system is an integrated SMS and quality management system that
blends both requirements (ISM and quality). The quality management system helps the
Company enhance its overall performance and become an integral part of sustainable
development initiatives. The design and implementation of the company's quality management
system are influenced by the Company's context and changes in that context. It aims to:49
1. Understand customer requirements and ensure the ability to meet those requirements.
2. Accordingly, maintain employees receiving adequate training regarding quality requirements.
3. Keep records to ensure that the system complies with quality requirements.
4. Measure performance, analyze results, and continue with appropriate changes (if necessary).
5. Continuously improve the performance and effectiveness of the quality management system.
Despite challenges, the implementation of a quality management system can be beneficial to

any organization and contribute to its overall success. Moreover, meeting quality requirements
can improve the industry's overall quality level by providing better services, satisfying the
requirements of all stakeholders, and respecting other important factors such as the
environment, health, safety, and social responsibility.
By applying classical tools and techniques of quality management in repetitive projects, it is

possible to establish an efficient quality management and improvement system. The expected
result of such a system would be directly proportional to recognizing error-prone points and
eliminating the consequences they cause. Given that shipyards are generally large business
systems, establishing a comprehensive and efficient 488 quality management and improvement
48
Ibidem.
Bukša, T., op.cit., p. 98.
49
57
system, which would permanently operate at all points of the production process, would be
challenging at the current moment in the Croatian shipbuilding industry.
Through a differentiated approach to quality management, i.e., targeted corrective and

proactive actions in recognized points of the production processes where errors occur, certain
improvements are achieved. The duration and degree of improvement are conditioned by
numerous factors of circumstances and systems. The results or improvements obtained through
this differentiation provide the basis for further quality improvement measures in the
shipyard.50
Quality assessment will be based on predefined requirements or standards set by the company.
In the context of conducting quality control before shipment, every product or unit of the
product that does not meet minimum standards will need to be reworked, disposed of, or dealt
with accordingly by the company, instead of being shipped to the end user.
When constructing a ship, it is necessary to perform a quality control check before delivering
the ship to the client or buyer. The final quality control check conducted before ship delivery
is primarily to ensure accuracy. This is crucial if the company has a quality control system in
place practically at every stage of the production and distribution process. However, if this is
not the case, there is nothing wrong with conducting a product defect check before shipment.
It is essential as it reduces costs associated with shipping errors, as well as the costs that both
the customer and the company will incur in processing any returns due to faulty or inaccurately
delivered products.
Quality control provides assurance that products are accurate and of good quality, helping to
safeguard the brand, the shipyard's name, and reputation. Ensuring that the right products are
delivered, and the quality meets standards, will eliminate delays in delivery.
50
Ibidem.
58
Conducting quality checks at all stages, not just before shipment, will help the shipyard monitor
its products and processes and make important decisions to improve its current system. In a
way, this is one way of collecting data for improving efficiency. The ability to identify
problems and deficiencies will enable them to correct these errors and respond appropriately.
Quality assurance before shipping is a way to establish a good relationship with the market.
Quality control conducted before the shipment of the ship is the final activity that will be carried
out. Quality control adds value to the company's products. Often, companies that have
maintained high-quality control standards and ensure that they are adhered to the letter
ultimately use them as justification for raising prices.
Ultimately, conducting quality control before delivering products and at any other stage of the
business process, even before shipping and distribution, will help reduce costs and the risk of
losses, shorten delivery times, and facilitate the timely delivery of the ship.
59
3. QUALITY MANAGEMENT IN SHIPBUILDING AND SERVICING
PROCESSES
Shipbuilding involves many phases of the construction process, making a quality
management system crucial for all manufacturing procedures. It is expected that dimensional
variations may occur during these processes, and if not managed properly, they could lead to
dimensional issues resulting in additional corrections and delays. This problem can be
controlled and minimized through good practices in dimension management known as
accuracy control systems. Accuracy control systems in the shipbuilding industry have proven
to reduce production time, rework, and also improve productivity.51
Quality assurance in shipbuilding, ship repair, or retrofitting aims to prevent errors or

deficiencies, ensuring that the end product meets requirements and avoids issues during ship
delivery. There are procedural and administrative activities attempting to achieve this goal.
The objectives of quality assurance are to produce a product suitable for its purpose and to do
it right the first time to avoid costly rework and errors. On the other hand, quality as quality
control is focused on the final product and concentrates on identifying defects. Quality control
will not be successful if valid quality procedures are not taken during the shipbuilding process.
Certain accidents were recorded in India during 2013-2014 that led to loss of life.
The lack of quality in shipbuilding leads to:
1. Loss of life and subsequent closure of shipyards by regulatory authorities.

2. Loss in the market, as the business ultimately comes down to fixing errors, resulting in lost time
and delayed ship delivery.
3. Loss of health and good interpersonal relationships between different departments due to more
time spent on defect rectification.
4. Loss of prestige, self-confidence, self-esteem, and an overall poor reputation of the shipbuilder,
leading to closure or reduced business, a natural consequence.
5. Inability to attract the best and motivated workers available in the country due to the
aforementioned poor reputation.
51
Eldho Paul, Babu, D., Paul, B., Design of anaccuracy control system in shipbuilding industry, 2014., p. 40.
60
Within this section, specific procedures significant in shipbuilding will be highlighted, where
the quality management system is of particular importance. Additionally, an analysis will be
conducted based on failures that lead to quality loss and what can be done to improve quality.
3.1. QUALITY IN SHIPBUILDING PROJECTS

Quality management (QM) in the maritime environment is subject to significant requirements.
Quality management is crucial for:
− Supporting operations,
− Preparing and formulating work,
− Replenishing materials,
− Repairs,
− Trial processes, and so on.
To increase productivity and availability, the following parameters need to be included:

− Quality assurance (QA) and quality control (QC), including reliability-centered
maintenance (RCM),
− Condition-based maintenance (CBM) and failure mode effects and criticality analysis
(FMECA) are needed for monitoring preventive and corrective maintenance with a
focus on ISO.
− QA and QC processes should be in line with complete Pre-Upkeep Machinery
Assessments (PUMA),
− Dynamic machine testing (DMT) for predicting and formulating intended renewals,
followed by standard post-maintenance testing.
The entire process can be stimulated when health and safety are integrated. The research instrument is
based on purpose-built structures to predict employees' 'thinking' in their perception of future
improvements.52
The qualification of welders or welding operators often goes hand in hand with the qualification
of the welding process. It is common for a welder who has produced a test weld to also be
approved for that specific welding process. All classification societies require welders and
welding operators to be appropriately skilled and qualified for the job; welders usually must be
certified. The qualification (and/or certification) of welders is obtained after a satisfactory
assessment of the test weld, the execution of which is usually witnessed by an examiner,
52
Ibid., p. 41.
61
supervisor, or testing body. The approval test examines the skill and ability of the welder to
produce a test weld of satisfactory quality.
Accuracy affects productivity. Therefore, accuracy is a major and ongoing concern for
professional shipbuilding engineers. Accuracy control, i.e., the ability to regulate accuracy, is
primarily considered a management tool for continuous productivity improvement.
Shipbuilding engineering managers who oversee A/C programs must at least understand basic
statistics. Other prerequisites relate to the required data. The A/C database is a significant
investment. Initially, it requires systematic recording of thousands of measurements. Such
efforts are costly. They will deter traditional managers from short-term goals. These people are
more likely to apply sporadic and unsophisticated preventive measures in response to a specific
user's request for a certain degree of accuracy.
The lack of long-term application negates the central importance of statistically valid data
describing the normal performance of the shipyard's accuracy. Such data is the basis for
continuing to collect measurements through mathematically determined sampling and for
continuing analysis and interpretation. Competitive shipbuilders consider their database a
capital investment and a production asset equally indispensable as a crane or construction dock.
The significant cost of implementing A/C programs makes sense only when amortized through
future projects, just like any other major capital investment.53
3.2. APPLICATION OF QUALITY SYSTEMS IN SHIPYARDS

In European shipyards, the emphasis on quality management in shipbuilding only
became prominent after Chinese shipyards entered the global market. State subsidies were
granted. Chinese shipyards, coupled with significantly lower labor costs than in Europe,
increased the competitiveness of Chinese shipyards in the global market. This is especially true
in the construction of simple design ships such as bulk carriers, container ships, and tankers.
The Chinese approach to shipbuilding has led to the closure of a large number of European
cf., Chirillo, Louis D., Storch, Richard Lee, Analiza procesa putem kontrole točnosti, 1982.
53
62
shipyards. It has also prompted the restructuring of large shipyard cooperatives, such as those
in the former German Democratic Republic and the Baltic states, where restructuring involves
reengineering business and production processes to improve the quality of the final product.54
Moreover, a new market approach in the production process has been adopted. It focuses on
the production of high-tech ships. On the other hand, there are shipyards in countries like
Poland, Romania, Bulgaria, and Croatia that did not adapt to the new market situation in time
and are now making every effort to survive in the market.
Shipyards that have managed to maintain a favorable position in the newbuild market and
gained a lot of experience in creating high-quality competitive products share the following:
− Efficient management,
− Timely reengineering, and
− Continuous quality improvement processes.
Actions and methods for improving quality are usually attributed to the following:55
− Compliance with agreed-upon and/or predefined standards,

− Work discipline, and
− Insistence on establishing operational excellence and independence.
Most recent research projects in shipyards dealing with quality management have focused on
establishing a fully quality system (based on various models) with the introduction of
preventive and proactive measures. Supervisors or quality surveyors were responsible for this.
After identifying an error, corrective measures are taken. It is possible to conduct a quantitative
analysis of the costs of corrective action in terms of monitoring costs and an analysis of the
costs of non-compliance (defects). The amount of the cost of non-compliance can be analyzed
as the ratio of the amount invested in quality assurance to the damage caused by the error.
Bukša, T., op.cit., p. 98.

54
55
Ibidem.
63
Due to the cyclical nature of projects carried out in serial ship production, it is possible to make
a comparison and statistical analysis of costs arising from non-compliance. Additionally,
differentiation can help identify production process models for adopting and evaluating quality
assurance measures.56
Companies should have their own control procedures manual, which inspectors conducting
quality control would apply. This applies even if the company engages the services of an
external inspector. Of course, an external inspector will likely have their own inspection or
quality control system, and quality assurance agencies and inspectors use standard industry
processes in their inspections. However, possessing a manual will still be helpful for them to
know what points to focus on during the inspection. The manual will include the company's
quality policy and an overview of the processes and existing quality system. Procedures may
vary depending on the quantity of products, whether 100% or a sample. The inspector checks
all shipment tools or only a certain percentage of the whole. Large quantities would usually
imply checking only a specific size of the sample.
All items are inspected one by one, or the inspector randomly selects a few items for inspection.
Random selection is often used for large quantities of products for inspection before shipment.
Quality control procedures will vary depending on the nature or type of the product. There are
certain products that require testing, while others require only visual inspection.
Shipbuilding is a complex activity. Shipbuilding is a partially manufacturing and partially

assembly industry that is fully oriented towards work. Quality is a driving factor for
shipbuilding organization. When purchasing a product, the buyer (shipowner) will always
consider value for money because they are investing. Even if the price is high, the quality of
the product will prompt the buyer to purchase it.
56
Ibid., p. 97.
64
Quality also involves cost reduction through various methods such as TQM. Quality enables a
company to be competitive. The main driving force for quality is that the shipbuilding industry
must compete in the open market with its products (ships) at lower prices with better quality.
The shipbuilding industry has a history of using classification society rules to ensure quality
ship construction. The qualification of welders and welding procedures is an effective way to
ensure that these quality requirements are met. Quality has become a very important dimension
of production management. Producing items in the required quantities at the right time is not
sufficient for customer satisfaction.
Customers demand that quality be built into the product and the service that goes along with it.
They will appreciate that without quality, every other aspect loses its importance. Thus, quality
becomes a strategy for survival and market expansion. Quality is a marketing strategy for
entering the market or competing with existing manufacturers. Quality is the foundation for
achieving customer satisfaction. As a result, brands are created. The quality control department
actively participates in the inspection of various systems, documentation, Test & Trials reports,
and guides all departments during the process of various activities through interaction and
maintaining good relations with class/owners to achieve the set goal successfully. Therefore,
the role played by the quality control department helps ensure the quality of the product phase
by phase until the final product is successfully achieved in the shipyard with relevant standards.
The foundation of quality lies in product performance and the perception of the service.
Ingredients or components that enhance the performance of the product (ship) are built into the
design process and operations. Also, when providing services, attention needs to be paid to
appropriate care, either independently or as part of the product.
Certification is another aspect of quality as it gives public recognition to the company's

achievements. It enhances compliance with processes and improves employee performance.
Customer perception of adequacy, rather than excellence, greatly contributes to establishing
long-term relationships, which is the plan of the shipbuilding organization. The importance of
65
maintaining quality directs activities not only to a specific department but also across all
functions of the shipbuilding organization. Quality circles are very effective, involving low-
key and unobtrusive methods of improving productivity and quality throughout the
shipbuilding organization. With the help of automation, 100% inspections of components can
be achieved, ensuring the desired quality. Experiences are gained worldwide on different ships
in construction organizations, total quality management has different approaches to quality
achievement. The primary goal of each of them is to achieve excellence.
3.2.1. DIFFERENTIATION OF QUALITY MANAGEMENT AND IMPROVEMENT

SYSTEM IN A SHIPYARD
Due to the continuous production process in shipbuilding, especially in the serial
production of ships, attention should be paid to the phases where there are increased costs of
non-compliance (CN) when designing the quality management system. Identifying places with
increased costs due to non-compliance means identifying places where these costs occur.
Identifying such places requires not only being familiar with the organization of the production
process and the likelihood of errors causing non-compliance but also an approach based on the
differentiation of quality management focused on these identified points where errors are likely
to occur.57
The point where errors are likely to occur is a term coined from experience and implies a
location or process with an increased likelihood of defects. The point where errors are likely to
occur is a point within the production process where the risk of non-compliance with
established quality standards is higher than in other surrounding places due to its specific
characteristics or past events. The phase where errors are likely to occur is not a static concept
but a dynamic value that changes its position depending on technological complexity and a
range of internal or external factors.
57
Ibidem.
66
3.2.2. DIFFERENTIATION OF QUALITY MANAGEMENT SYSTEMS AND
IMPROVEMENT IN PROCESS ORGANIZATION
Quality management systems can differ based on the differentiation of products for
which these systems are established. Often, products of the same type differ in terms of the
technological level of production and usability, which is vertical differentiation, and according
to their attributes, which is horizontal differentiation:58
a) Horizontal differentiation is evident in serial consumer products (color, design, equipment, etc.,
needed in the market), and it is not widely applicable in shipbuilding.
b) Vertical differentiation is applicable in shipbuilding because vessels can be significantly
different. More complex projects usually require rates.
In the organization of processes in a shipyard, in line with the requirements of high product
quality and the quality management system, it is oriented towards a high level of technological
complexity of the product.
Sometimes, the quality can be affected by unfavorable environmental conditions during

welding at the construction site. The construction of a vessel hull is usually carried out in stages
involving the assembly and fabrication of subassemblies, which are then joined in a dry dock
for final assembly and welding. This final stage of construction is potentially more exposed to
weather conditions, so, where possible, the welding environment should be kept dry and
protected from drafts. Controlled welding consumables should be kept dry and clean. A study
of weld quality was conducted on a newly built FPSO to address concerns that weld quality is
poorer when inspection is not required or if inspection equipment is not available.
3.2.3. DIFFERENTIATION OF QUALITY MANAGEMENT SYSTEMS AND

IMPROVEMENT IN PROJECT ORGANIZATION
For a modern shipyard, it is more acceptable to have differentiation of quality
management systems implemented in the project organization, which is adopted when the
Bukša, T. op. cit. p. 97.

58
67
project begins and ends as soon as the project is completed. With this approach, it is possible
to do the following:59
− Take targeted actions at identified places that create non-compliance,

− Adopt preventive measures,
− Adopt control measures,
− Create a chain of responsibility,
− Calculate the costs of non-compliance,
− Calculate the costs of the QMI project, and
− Calculate the total quality-related costs when the project is completed.
Data on measures taken and project results are recorded, and since shipbuilding projects are
cyclical, databases are created to assess the quality management costs in the next project.
Thanks to project organization and a project-oriented approach to quality management in
shipbuilding, the project is not analyzed according to its technological complexity. Instead,
differentiation is done within the project itself. This way, external characteristics of the vessel
present in the project organization are avoided, and each new construction is approached in the
same way.60
Table 1 shows a simplified example of vertical differentiation of quality management in a

project according to phases of the production process.
Table 1. Vertical Differentiation of Quality Management in a Project
Source: Bukša, T., et al. A Differentiation-Based Approach to Quality Management in Shipbuilding Taking into
Consideration Errors in Manufacturing Processes. Brodogradnja, vol. 64, no. 4, 2013, p. 488.
Table 2. Vertical Differentiation in the Assembly Phase
59
Bukša, T., etal., A Differentiation-Based Approach to Quality Management in Shipbuilding Taking into
Consideration Errorsin Manufacturing Processes. Brodogradnja, vol. 64, br. 4, 2013, p. 488-503.
60
Bukša, T., op. cit., p. 97.
68
Source: Ibid., p. 490.
During the design of new construction, the most demanding phase of complexity is the
technological phase of the section, requiring the highest level of knowledge, skills, and
capability. It is important to emphasize that special attention is given to meeting quality
requirements in this phase, and stricter supervisory controls need to be established. All non-
compliances that were not noticed in previous phases become apparent in this phase.
Further differentiation can be made at any step of the project cycle, i.e., in any phase of the
production process. An example of differentiation in the assembly phase of the section, which
is the most demanding phase, is shown in Table 3 below. As illustrated in Table 3, the
machinery space is the most demanding area in terms of technical complexity.
Table 3. Vertical Differentiation in the Assembly Phase of Sections (Project Approach)
Source: Ibid, p. 491.
Therefore, in accordance with the previous analyses of vertical differentiation, this area must
meet more demanding quality requirements than others. Hence, the quality management and
improvement system must pay significant attention to it. Further differentiation pertains to the
elements constituting the machinery space and activities related to their assembly.61
Bukša, T., etal., op. cit. p. 491.

61
69
It can be concluded that vertical differentiation according to the level of technical complexity
demonstrates that the most challenging phase of the production process under conditions of
technological complexity is the assembly phase of the pipe production section in the machinery
space. As increased technological complexity arises from demanding quality and class
requirements, the quality management and improvement system will be directed towards
meeting the specified requirements and standards. This is facilitated by a differentiated
approach.
The simplified differentiation of quality management projects, as described above, is the

starting point for establishing models of quality management differentiation. However, besides
theoretical considerations, it is necessary to conduct empirical research to confirm or reject the
hypothesis regarding the advantages of a differentiation-based approach used in the quality
management and improvement system. This can be achieved by analyzing defects and non-
compliances in previous projects, providing relevant data for calculating the probability of error
occurrence or risk and identifying places where the frequency of defects is higher than in other
process locations. In this way, targeted action can be taken to ensure the necessary quality.62
3.3. QUALITY-RELATED COSTS IN THE PROJECT

ISO 9004 defines quality-related costs as costs that mainly occur during the
implementation of the quality system, i.e., costs that mainly arise from actions to prevent non-
compliance and assessment actions, as well as costs of internal or external audits. Costs related
to quality can be practically observed as the sum of costs invested in the quality management
system and costs of non-compliance:63
CQ = CQMI +CN
Where:
CQ – costs related to quality
62
Ibid., p. 492.
63
www.iso.org. (05.03.2022.)
70
CQMI – costs of the quality management and improvement system
CN – costs of non-compliance
Costs of the quality management and improvement system (CQMI) include all investments in
the production process necessary to ensure a high-quality product or service. They include:64
a) prevention costs (Cp),

b) assessment costs (Ca), and
c) costs of quality improvement (Ci).
1) Prevention costs (Cp) are costs incurred to maintain minimal failure and assessment costs.
2) Assessment costs (Ca) are costs incurred in determining the degree of compliance with quality
requirements.
3) Costs of quality improvement (Ci) are costs of improvement and innovation. These costs
include awards for innovations, consulting services, or commissioned studies.65
Costs of non-compliance include all expenses incurred to correct identified non-compliances.

They can be divided into the following two categories: costs of internal errors (Cie) and costs
caused by external failures (Cef).
It can be concluded that costs related to quality include all costs incurred by eliminating
discovered errors, as well as those incurred to prevent such errors. Costs related to quality
transform useless actions into useful ones, or improve current actions, thereby increasing
competitiveness. Therefore, the quality management and improvement system faces the
challenge of the increasing survey control and costs of quality management and improvement.
This is why shipyards tend to use a quality management approach based on differentiation to
focus on the causes of non-compliance and have a flexible and efficient quality management
and improvement system. Quality management systems differ concerning the differentiation
of the product for which they are established. In the project approach to quality management
in shipbuilding, the project is not classified according to its technological complexity. Instead,
differentiation is conducted within the project itself. In this way, external features of the ship,
addressed in the organization of the process, are omitted, and each new construction is
Bukša, T., etal., op. cit. p. 493.

64
65
Ibidem.
71
approached in the same way. The approach to the management system based on differentiation,
adopted when the project starts and ends as soon as the project or life cycle phase is completed,
allows targeted action to be taken against identified points where errors are likely to occur.
This includes establishing adequate preventive and control measures, creating a chain of
responsibility, and calculating costs of non-compliance, costs of quality management project,
and improvement system, as well as the total costs related to quality when the project is
finished. The data on measures taken and results obtained create a database that aids in
assessing costs related to quality in the next project.66
3.4. NEW QUALITY MANAGEMENT CONCEPT IN SHIPBUILDING

Shipbuilding faces significant quality requirements due to potential risks specific to the
operation of maritime vessels. Quality management becomes a crucial tool in reducing the
vulnerability to failures in various construction components. Specific processes and quality
management are involved in shipbuilding. The Inspection and Test Plan (ITP) should be the
first step in quality management, preceding any action related to construction. Sometimes, this
step may be necessary even before the design of maritime structures. The key processes
required to meet the ITP include welding, inspection of welded joints, distortion treatment, and
painting. Operational procedures for each production step and for auxiliary operations should
be developed, discussed, and approved by the quality manager.
Shipbuilding is a vital means of transporting goods worldwide. Failures in ship construction

can involve three types of damages: loss of human lives, damage to shipped goods, and
environmental issues ranging from minor to major disasters associated with the maritime,
coastal, or internal river environment. Due to all these concerns, defects in maritime structures
that begin during construction and end during operation should be avoided.
Shipbuilding-specific production includes:
− Cutting processes,
66
Ibidem.
72
− Welding processes,
− Distortion testing plans, and
− Painting processes,
− Along with other auxiliary processes related to the application of major operations.
Standards cover the main quality requirements, but specific conditions often exceed the
requirements included in the norms.
These situations are addressed by creating a testing plan aimed at discovering the discussed
characteristics. The plan or document serves as the basis for research that will be applied
before, during, and after construction. The manufacturer of welded constructions should
continuously adhere to all documents until the ship or ship structure is delivered.
Entering the ship construction project marks the beginning. The highest management of the
shipyard receives the project and undergoes the process of technical and economic analysis.
Depending on the type and complexity of the project, the project manager is selected by top
management. The project manager will be responsible for direct supervision of coordinating
the process. The second level pertains to the coordination of the involved processes. The group
of five main processes presented above will be in full operation during construction.67
Coordination should take into account the control of the following outputs:68
− Documentation related to records required by the quality system,

− Materials involved in production,
− Technology that will be involved in production,
− Logistics needed for the implementation of technology (equipment, devices, tools, etc.),
− Staff with specific types and levels of qualifications,
− Environmental impact, and
− Production efficiency.
67
Storch, R.L., Gribskov, J.R., Accuracy Control for U.S. Shipyards, Journal of ShipProduction, Vol. 1, No. 1, Feb.
1985, p. 64.
68
cf., D. L. Goetsch, S. B. Davis, Total QualityHandbook, Prentice-Hall, New Jersey, 2001.
73
The new QM concept is based on the opposite vision compared to the actual and common
vision. The common QM organization is building step-by-step production, considering
minimal requirements that will be able to prove the quality of the ship's structure.69 The new
concept is to start with planning inspections and controls. In other words, it is necessary to
determine which inspection is required. This is the first question the shipyard asks. The answer
could be provided by creating an accurate test plan dedicated to the inspection required by
standards and/or the user.
3.4.1. INSPECTION AND TESTING PLAN (ITP)

The Inspection and Testing Plan (ITP) is a document that the manufacturer must adhere to
throughout the entire process, from receiving the shipbuilding project to delivering the product.
The ITP covers all requirements for the fabrication and installation of general structural
components such as PLEM structures, temporary supports, seating platforms, staircases, etc.
Not only the shipyard but also the user of the maritime product or the supervisor appoint
representatives, and these representatives have the right to conduct inspection or testing of
goods or services during any production phase where the quality of the finished product may
be affected. They can also perform inspection or testing of raw materials.70
In this concept, the ITP includes the following chapters:71
− Documentation - receipt and availability of all necessary (approved) documentation (e.g.,

drawings, procedures, checklists, certificates, etc.)
− Personnel - check the qualifications of welders, inspector qualifications, operator qualifications,
− Tools – verify the availability and correctness of certificates for required tools (e.g., tightening
tools, lifting tools, measuring tools, welding tools, cutting tools, etc.)
− Materials - check the availability and correctness of certificates for required materials, check if
received materials are delivered as ordered (e.g., type, size, weight, etc.), check heat numbers
of materials, check the storage conditions of materials and consumables,
69
Storch, R.L., Gribskov Jon R., op.cit., p. 64-67.
70
Dănuț, I. Vasile, S., Gheorghe, M., New concept of quality management in shipbuilding, Vol. 13, 2015., p.
332-340.
71
Storch, RL., Gribskov, J.R., op.cit., p. 64-67.
74
− Cutting – approval of the cutting plan, verification of the performance and calibration of cutting
equipment and measuring tools, check environmental conditions, check dimensions after
cutting, check the final cut,
− Welding – approval of welding procedure specifications, approval of welding performance,
qualifications, verification of the operation and calibration of welding machines and equipment
for monitoring, check consumables; check environmental conditions, check welded joints,
check repaired welds.
− Sandblasting and painting – check if certificates for required abrasive particles for sandblasting
and consumable material for painting are available and correct, check if received abrasive
particles and paint are delivered as ordered,
− Final inspection – conduct a final visual inspection, dimension control (size, weight)
− Final delivery and documentation – approval of final documentation, final delivery.
3.5. CUTTING PROCESS

Preparing pieces for assembly within the ship's structure involves cutting surfaces into
appropriate shapes and dimensions.72 The Inspection and Testing Plan for this process should
follow these steps. The type of cutting process to apply should be determined through an
analysis of possibilities:
− Plasma cutting,
− Oxygen and gas cutting,
− Laser cutting,
− Water jet cutting,
− Mechanical, or others.
Optimization should be performed using specific criteria:
− Distortions caused by the process,

− Cutting width,
− Imprints in the cutting area,
− Oxidation of the cutting area.
72
Magheţ, T., Maehrlein, J., Durabilitatea produselor utilizate pentru construcţii - Protecţiaîmpotrivacoroziunii -
Cerinţeşicalificareapersonalului, Sudura no. 2/2014., p. 12.
75
Optimizing cutting parameters should be done considering the nesting solution. High
productivity might involve distortions greater than tolerance, so the selection of the most
recommended consumable material is necessary.
An illustration of analysis of staff capability to perform these tasks, which involves assessing
the qualifications and certification of personnel. Cut pieces may deviate from the intended
shapes and sizes, exhibit distortions, or have various types of defects specific to the cutting
technology used. Additionally, the inspection should focus on the shapes and dimensions of
the pieces and potential distortions or defects. This entails direct measurement or visual
inspection using specialized tools, and the inspection should involve certification of tool
calibration and range.73
3.6. WELDING PROCESS

First, it is necessary to decide which type of welding process to apply; some possibilities
include:
− Arc welding,
− Laser welding,
− Laser arc hybrid welding.
When making this decision, analysis from both technical and economic perspectives is needed,
considering elements that will be inspected during and/or after production. Optimization of
welding parameters, considering potential distortions, is crucial. Voltage, current, and welding
speed for controlling heat input, along with the flame angle or heat treatment if necessary,
should be optimized considering the shape and size of the weld, distortions, and imperfections,
all subject to inspection (visual inspection, NDT inspection, direct measurement, etc.).
Usually, in shipbuilding, Quality Management (QM) begins by organizing the conditions for
implementing the processes involved in production. Eventually, a review of the construction
will provide feedback, meaning repairs and corrections. A new QM concept has been
Dănuț, I. Vasile, S., Gheorghe, M., op.cit., p. 332-340.

73
76
introduced, consisting of starting with inspection conditions and optimization among
parameters.
In production, the Inspection and Testing Plan (ITP) is the main tool for analyzing future
quality control. It is used to understand which parameters need optimization before starting
production. The ITP concept consists of a series of questions that the project manager or
process coordinator should pose to the system. The main questions are what needs to be
inspected and how to inspect it. The ITP is specific to all involved processes:74
− Cutting sheet metal pieces,

− Welding cut pieces according to shipbuilding project.
Technological solutions are easily developed after implementing the developed ITPs. After applying
the new system in shipyard production, the repair of welded structures due to deformations and the
repair of the paint layer have been reduced by more than 20% compared to the old quality management
system. The project manager needs to apply prevention and better control the quality of production.75
Welding cut parts is a process that most affects the quality of construction and environmental
impact. The quality of welded joints cannot be directly assessed, and therefore, ISO 3834
defines welding as a special process. The impact of the welding process affects the quality of
the weld, i.e., the quality of construction. Reviews on the weld where there may be:
− Imperfections,
− Mechanical characteristics,
− Geometry, dimensions,
− Heat-affected zone, etc.
− On materials and consumables,
− On personnel,
− On technology,
− On the environmental impact, etc.
For mechanized and automated welding processes, including laser welding, joint monitoring
offers the potential for improved quality assurance by allowing on-line adjustment of the
74
Ibid., p. 333.
75
Ibidem.
77
welding head position relative to the workpiece to compensate for small variations in joint
position and fit-up. Real-time seam tracking is performed by a sensor that first detects the seam
position and then guides the welding equipment automatically. The sensor communicates with
the welding head to send path corrections, maintaining the central point of the tool in the
optimal position in the joint. The high degree of accuracy achieved during welding significantly
improves productivity by reducing the amount of required supervision and operator
intervention, increasing welding travel speed, and reducing rework costs.
Vision-based sensors are currently used for most seam tracking systems for applications in arc
and laser welding, due to their high accuracy and signal update speed. Some other tracking
systems used for arc welding processes, such as tactile sensors or passing arc sensors, are not
suitable for laser welding applications due to a general lack of accuracy and a low signal update
rate. For laser welding, faster data handling is required due to the high welding speed, which
increases the system's response and required processing speed. Vision-based sensors also use
an additional low-power infrared or visible laser focused to form a line on the weld surface,
which detects the seam profile and gap.76
Limitations related to welded seams concern shapes, sizes, and penetration on one side, and
material imperfections and distortions on the other. All of these need to be examined, and the
immediate elements subjected to inspection are:77
− Competence of personnel, where the performance testing of welders is proven by certificates

of competence and approved technology, with the process demonstrated by qualified WPS and
welding procedure qualification records.
− Quality of base materials and consumables (welding wires, electrodes, shielding gases, fluxes).
− Certified quality/compliance certificates issued by the manufacturer or after self-testing.
− Equipment, which needs to be capable of implementing technology, proven by calibration
certificates and its own scope of work.
Visual and NDT inspection conducted at the construction site immediately adjacent to welding
should reveal the operator's ability to perform inspections, demonstrated by certificates of
76
Ibidem.
77
Ibid., p. 335.
78
competence for NDT operators and confirmation of NDT equipment calibration. Usually, only
visual inspection is conducted immediately after the welding process, but for special
constructions, such as LNG tanks, NDT testing is also required. For common ship
constructions, NDT testing is applied after certain production sequences or only at the end of
production. Direct measurement reveals compliance with shapes, dimensions, and
distortions.78
Components that are face-welded must be aligned as accurately as possible. Therefore, sections
welded for this purpose should be left unwelded at the ends on the formwork. Places where
their quality meets the requirements applicable to the welded joint should be carefully removed
before permanent welding. Clamping plates, temporary ties, and alignment wedges must be
made of the same or similar material as the base material and should not be used more than
necessary. Any damage incurred during their removal must be competently repaired.
Protection against weather conditions, i.e., the occurrence of preheating, such areas to be
welded must be adequately protected from climate influences such as wind, moisture, and cold
and, if necessary, preheated. The need for preheating and the preheating temperature must be
determined by factors such as chemical composition, plate thickness, heat dissipation, and
ambient temperature. Preheating must be applied uniformly across the entire plate thickness
over a width four times the plate thickness but not less than 100 mm.
Welding is usually performed in the optimal welding position. The sequence of welding must
ensure a minimum of stress relief and deformation in welded constructions. In certain cases,
the registry may require the submission of a welding schedule. The welding workshop must
ensure that welding parameters are respected and that welding work is professionally
performed. Components that are not fully welded and need to be handled or turned must have
welded joints of appropriate strength. Cracked adherent welds must not be welded but must be
processed before welding. Welds must have sufficient penetration and must exhibit a clean,
78
Ibidem.
79
proper surface with a smooth transition to the base material. Excessive weld metal, undercuts,
or notches that may affect weld quality should be avoided.79
3.6.1. NON-DESTRUCTIVE QUALITY CONTROL METHODS

Non-destructive methods refer to procedures for conducting testing without destroying
welded joints, according to methods and scopes applicable to various areas. There are specific
standards to be adhered to when performing non-destructive testing (NDT) of welds. When
standards differ from rules, the latter takes precedence. Certain requirements apply to NDT
providers, for example, companies offering NDT services on ships and offshore
structures/components are also subject to classification. These requirements are mandatory for
independent NDT companies or NDT departments that are part of a company providing NDT
services for new constructions.
Testing without destroying welded joints of ship steel hulls during construction and ship repair
is carried out in accordance with the requirements for methods and quality levels for advanced
non-destructive testing of materials and welded joints during ship construction. The choice of
testing methods, equipment, and testing equipment for each specific case is determined, among
other things, based on the weld shape, material, and expected defects (type and location). In
general, they must adhere to the following basic requirements:80
1. For wall thickness and welds up to 30 mm, radiographic inspection is the preferred method; for
greater thicknesses, ultrasonic testing is used as the primary testing method.
2. For wall thickness or welds of 8 mm and above, radiographic or ultrasonic tests are applied in
consultation with the Registry.
3. For radiographic inspection, X-ray sources will be used wherever possible. Gamma ray sources
may only be used in agreement with the Registry based on testing and approval of the test
method.
4. For magnetic materials, surface crack testing must be performed using the magnetic particle
method; the use of penetrants for magnetic materials must comply with the Registry.
79
Ibidem.
80
Rules for the classification of ships, 2021., https://www.dnv.com/news/rules-for-classification-of-ships-july-
2021-edition-203529, (06.03.2022)
80
The testing method must be such that it enables the detection of possible external or internal
defects. If necessary, two or more testing methods can be used in combination. The specific
testing method to be used must be specified in the inspection schedule. Testing equipment, as
well as the media used, must comply with the requirements of relevant standards and will be
properly used and serviced.
3.6.2. QUALITY CONTROL SUPERVISORY STAFF

Non-destructive testing of welds is performed by individuals trained only in the use of
relevant testing methods and equipment, possessing practical experience. The Registry should
provide appropriate documentary evidence of the training and experience of personnel for
specific non-destructive testing methods of welds.81
81
Ibidem.
81
Figure 5. Quality Control Supervision of Ship Hull
Source:
http://www.bangkokdock.co.th:8080/km/Quality%20Control%20in%20Shipbuilding.pdf,
(21.03.2022.)
Quality control of hull inspection is carried out:82
Before construction
− Contract review,
− Team members,
− PSPM (Project Site Manager),
− Budget review.
During construction
− Material inspection,
− Cutting, assembly, fabrication,
− Status review of plans,
− Structure and weld testing, tank testing, etc.
After construction:
− Certificates,
− Budget summary,
− Full hull report, status, etc.
− What is built,
− Service feedback.
3.6.3. INSPECTION SCHEDULE AND INSPECTION REPORT

The inspection schedule for welded joint testing includes the following information:83
− Welded joint components to be tested;

− Scope and method of testing;
− Areas to be examined (location, section, product);
− Criteria to be adhered to;
82
http://www.bangkokdock.co.th:8080/km/Quality%20Control%20in%20Shipbuilding.pdf. (21.03.2022.)
83
Rules for the classification of ships, op.cit. (06.03.2022.)
82
− Testing method and/or standard if different from the one stated.
If different standards than those stated are applicable, the inspection schedule submitted to the
registry for approval will be followed. Inspection reports are prepared based on all test results
and are submitted to the Registry with other relevant documentation.
3.6.4. TESTING TIME

Non-destructive testing of welded joints must generally be carried out after all welding
processes are completed on the respective components. Before these tests, welded joints must
undergo visual inspection, and all surface defects that could cause misinterpretation of test
results must be addressed. Components subjected to heat treatment after welding are usually
checked after heat treatment. In the case of higher strength, especially high-strength structural
steels, where delayed testing may result in cracking (due to the presence of hydrogen in the
weld metal), testing must not be conducted earlier than 48 hours after completion of welding
work. The registry may require longer waiting times (e.g., 72 hours up to a maximum of 7
days) or repeat testing (based on random sampling) after the appropriate waiting time.84
3.6.5. PREPARATION AND CONDUCTING OF TESTS

The areas under examination must be sufficiently clean and smooth for the applicable testing
method. Irregularities include:85
− Residues of auxiliary weld seams,

− Weld spatter,
− Slag residues, etc.
In special cases (e.g., Ultrasonic testing of transverse defects), weld treatment and the
associated edge surface may be necessary. In the case of radiographic testing and certain
surface testing methods, symbols specified in HRN EN ISO 6520-1 are used to identify defects
in testing. For the evaluation of individual steel cross-sections of welded constructions,
evaluation categories according to HRN EN ISO 5817 are used, and for the assessment of
84
Ibidem.
85
http://www.bangkokdock.co.th:8080/km/Quality%20Control%20in%20Shipbuilding.pdf., (06.03.2022.)
83
individual parts of welded constructions made of aluminum alloys, evaluation categories
according to HRN EN ISO 10042 will be used.
The test results are assessed by the quality control department, while the final assessment will
be made by the geometrist in the Registry. In the case of radiographic inspection, the results
are evaluated according to the table, and for ultrasonic inspection, the results are assessed in
two categories:86
− Acceptable, and
− Unacceptable (repaired or rejected).
The acceptability of welded joints (radiographically tested) can be evaluated using a five-grade
or three-grade evaluation category. Quality assessment, according to the five-grade evaluation
category, is carried out according to the standard recognized by the registry. If the percentage
of defects exceeds the prescribed one, the registry may expand the scope of inspection
supervision.
3.6.6. REPAIRS, RE-INSPECTION

Welded joints are repaired in consultation with the Registry. Repaired welded joints must be
re-inspected and specifically noted in the inspection report and on the radiograph (R=repair).
Visual inspection includes (if necessary, using optical devices) the following:
− Completeness (if everything that needs to be welded is welded),

− Dimensional accuracy,
− Compliance with the specified weld shape,
− Presence of unacceptable external defects.
86
Ibidem.
84
Figure 6. Irregularities Identified During Subsequent Inspection of the Ship's Hull
Source:
(22.03.2022.)
Dimensional accuracy is verified using appropriate measuring instruments, based on random

sampling. When checking the shape and external defects, special attention will be given to:87
− Reinforcement of welds or indentations;

− Weld edge angle;
− Inconsistencies in edges;
87
Rules for the classification of ships, op.cit., (06.03.2022.)
85
− Undercutting;
− Visible porosity and slag inclusions;
− Weld spatter;
− Impact of the arc on the base material;
− Concave root surface and incomplete root penetration;
− Fusion;
− Cracks;
− Unequal side lengths (in corner welds).
Figure 7. Welding Defect
Source:
(22.03.2022.)
Repair of visible cracks is mandatory. X-ray inspection uses X-ray sources. In special cases,
by agreement, gamma ray sources can be used for radiography.
86
3.7. COMPLIANCE OF TESTING DEVICES WITH ISO STANDARDS
Radiographic parameters prescribed in HRN EN ISO 17636-1 for test category A
will preferably be used in shipbuilding and for test category B in steam boilers, pressure
vessels, and pipeline production. Each radiograph must include a quality indicator image
according to HRN EN ISO 19232-1 (wire indicator). Each radiograph also includes
appropriate symbols (marks) to uniformly identify its structure as a test report. The
inspection report will contain the following information along with sketches with
explanations (where necessary):88
− Job number, assembly part, inspection schedule number, inspection location; materials
− Welding procedure;
− Thickness of the specimen or weld;
− Date and time of inspection;
− Radiation source;
− Tube voltage during inspection;
− Radiographic parameters (according to HRN EN ISO 17636-1), position of the wire indicator;
− Type of film;
− Testing category, image quality index;
− Symbol indicating the defect.
Usually, the initial assessment is carried out by the quality control department, and the final
evaluation based on radiographs and relevant reports is conducted by the surveyor in the
Register.
Material testing is performed by identifying the label and comparing it with the product, as
well as the heat number, size, and stamp. General visual inspection is also performed to check
for material damage and its thickness, as well as dimensions.
88
Ibidem.
87
Figure 8. Inspection and Material Control
Source:
(22.03.2022)
Ultrasonic testing, where testing devices consist of probes and other accessories, must
comply with relevant standards (e.g., HRN EN ISO 7963 or HRN EN ISO 17640).
Calibration of instruments before inspection must be performed on calibration blocks
according to HRN EN ISO 7963. Depending on the required echo sensitivity (height),
sensitivity adjustment is carried out according to HRN EN ISO 16811.89
The testing surface of the weld must be smooth and free from impurities, rust, and welding
spatter on both sides. Colors and protective coatings that are unlikely to affect the test results
do not need to be removed before testing. The testing process depends on the geometry of the
weld and the possible orientation of defects. Continuous echo indication, which is a point on a
systematic weld defect (e.g., root defects due to incomplete penetration or rows of pores),
requires repair even if the repair limit values are not reached. Echo indications that detect the
presence of cracks anyway require repairs. If the assessment of echo indications raises doubts
about the need for repair, the assessment can be supplemented by radiographic inspection for
an accurate assessment.
89
Ibidem.
88
Inspection reports (prescribed in HRN EN ISO 17640) must be prepared for all tests and
contain essential information. If the report also lists echo indications below the repair limit
values, each identified defect must be marked (e.g., leave as is or repair):90
− a - acceptable, or
− b - not acceptable.
Magnetic particle testing devices and media must comply with the requirements of
relevant standards (e.g., HRN EN ISO 17638; HRN EN ISO 23278). Magnetizing
equipment must be equipped with measuring devices that show the strength of
magnetization. Magnetic particles (black or fluorescent) in a suitable suspension, under
the influence of magnetic current, will accumulate at the boundaries of defects. The choice
of magnetization method depends on the geometry of the component and is coordinated
with the registry. The testing surface must be free of loose scale, rust, welding spatter,
and other impurities. Gaps, recesses, scratches, and edges that can cause false indications
should be removed before inspection.
Thin, dry layers (e.g., thickness up to 20 µm) should not be removed unless they interfere
with inspection. Any accumulation of magnetic particles that is not the result of false
indication must be noted in the inspection report and must be repaired. In the case of
small cracks, this can be done by grinding. Larger cracks should be machined, and the
repair-welded. The inspection report must include the following details:91
− Component or inspected weld details;

− Magnetization data;
− Magnetizing equipment data;
− Testing medium;
− Test results;
− Location and time of testing, testing body, and
− Person performing the test.
90
https://www.dnv.com/news/rules-for-classification-of-ships-july-2021-edition-203529., (06.03.2022.)
91
Rules for the classification of ships, op.cit., (06.03.2022.)
89
Penetrant testing, testing devices, and media must comply with the requirements of relevant
standards (e.g., HRN EN ISO 17635; HRN EN ISO 23277). Colored or fluorescent penetrants
can be used as penetrant media. Penetrant removers and developers must be compatible. The
testing surface must be completely free of scale, corrosion, grease, oil, and paint before
applying the penetrant to allow penetration into any surface defect. The penetration time is
chosen according to the manufacturer's instructions but must not be less than 15 minutes for
workpiece temperatures of 15°C and above, or less than 30 minutes where the temperature is
below 15°C. After this procedure, excess penetrant must be completely removed. The
developer is applied evenly and thinly as much as possible to the dried surface. The
development time will be the same as the penetration.
Visual inspection is carried out at the end of the developer application time. Test results are
assessed analogously. The inspection report includes the following:92
− Component or welded joint details;

− Testing medium (type, brand name);
− Description of the testing procedure;
− Test results;
− Location and time of testing, testing body, and
− Person performing the test.
3.8. STRAIGHTENING PROCESS

The welding process applied to steels or aluminum alloys, both being the most
commonly used materials in shipyards, creates distortions. By employing appropriate
technology such as:93
− optimized heat input,

− optimized welding pass sequence, and
− selection of the most recommended welding process for a specific application, etc.
Through these procedures, the straightening process can be maintained at a low level of
distortion due to uneven heating of the base material plate. The application of a new concept
92
https://www.dnv.com/news/rules-for-classification-of-ships-july-2021-edition-203529, (06.03.2022.)
93
Ibidem.
90
begins with input information that is essential for assessing distortion compared to approved
tolerances. The solution involves personnel involved in the straightening process, and they
must be trained for this task. The staff will respond with the method applied and which needs
to be performed according to an approved procedure (mechanical or thermal straightening,
thermal with or without accelerated cooling, regular heating, etc.). The equipment used will
respond to reducing distortion directly, and measurements will be applied to assess distortion
and its evolution.
Straightening actions (thermal or mechanical) must not compromise the quality of materials
and welded joints. The registry may require an assessment of the suitability of straightening
methods (e.g., by examining the welding procedure). Tolerances for welded constructions are
specified in the production documentation and must comply with the given standards.94
During construction, the following steps are carried out:
a) preparation of edges,
b) alignment of the structure,
c) visual inspection of welding before painting,
d) NDE (PT, RT, UT),
e) forming,
f) dimension verification.
94
Ibidem.
91
Figure 9. Shipbuilding Processes
Source:
(22.03.2022.)
3.9. SANDBLASTING AND PAINTING PROCESSES

Sandblasting and painting extend the lifespan of the ship. Therefore, discussions
revolve around personnel, consumables, technology, and direct measurement of the coating
layer(s). When project managers or painting coordinators inquire about the technology, they
should consider creating specific procedures for each step to be followed because each type of
paint has its specificity in terms of the coating process.
By using the ITP system, meaning what needs to be inspected and how to inspect it, it is
necessary to revert to the parameters of the considered processes that affect the elements that
need to be inspected. The optimization of these parameters is the task of the project manager
to achieve the best results when conducting inspections.
92
3.10. QUALITY MANAGEMENT IN THE SHIP SERVICING PROCESS
Regarding maritime organizations, quality relates to the satisfaction of all stakeholders,
but there is another factor that is crucial to address: safety. In this case, quality is sometimes in
conflict with safety requirements. However, from a safety perspective, the demand for higher
speeds can be risky because safety practices sometimes consume a lot of time. From this aspect,
to balance the two poles, safety versus quality, organizations should clearly indicate the level
of quality they offer and where quality is limited due to safety requirements.
Furthermore, quality is also expensive, and for some companies, adopting quality management
may not be an easy task. By the time a shipping company establishes the level of quality it
offers, it will automatically establish the market where it competes, until it is ready to raise the
level. Levels of quality management escalate as follows:
1. Level – Inspection:
At this level, inspections are carried out to ensure compliance with requirements. This level of
quality management includes reviews aimed at discovering errors and faults in the management
system. Despite efforts to correct errors, there is no further investigation seeking the root cause
of these errors. This practice results in the continuous recurrence of the same errors, and no
improvement in the company's performance is noticed.
2. Level – Quality Control:
At this level, after correcting errors, additional investigation follows to discover the root causes
of incidents. This tactic prevents the recurrence of the same errors, but this mechanism is only
activated after system failures since there are no preventive actions or risk assessments
protecting the system from adverse incidents.
3. Level – Quality Assurance:
The company is at quality level three or "quality assurance level" when quality management is
adopted and proven in written standards. Requirements are integrated into companies, and its
compatibility is displayed in documents.
93
Companies accepting quality standards are established by IMO, ISO (ISO 9000 for quality
management) or can be found in the requirements of the ISM Code. Actions of the previous
two levels continue, but internal audits are also conducted by the company and third parties to
ensure compliance with requirements. The error rate can be reduced because these written
procedures attempt to indicate acceptable behaviors and actions that staff should follow.
4. Fourth Level – Total Quality:
Total Quality Management (TQM) stands on the other side of the previous levels because the
audit is not the basic mechanism. At this level, the company's efforts to meet quality
requirements are mainly focused on learning how to improve performance and provide high-
quality services not only by looking for errors to correct but especially by creating opportunities
for improvement.
94
4. CONCLUSION
In conclusion, based on the previously set hypotheses, the following conclusions can be drawn:
Quality is a measure or indicator of the extent or amount of the utility value of a product or
service to meet a precisely defined need at a specific place and time. Manufacturers associate
quality with the design and production of products to meet consumer needs. Quality begins
with the design of the product according to needs, includes established measurement standards,
the use of appropriate materials, the selection of an appropriate production process, etc.
Because quality is a relative concept, it is generally used in relation to the ultimate use of the
product. The quality of a product or service is the suitability of that product or service to meet
or exceed the intended use. The obligation to introduce a management system has been
introduced at all levels of the maritime community. Classification societies, as independent
organizations conducting inspections and certification of ships, often on behalf of the member
states of the International Maritime Organization (IMO), have introduced a certified
management system as a condition for their work (ISO 9001, ISO 17021, QSCS standard,
starting implementation in 1995). Maritime companies managing ships from the perspective of
safety and environmental protection, organizations dealing with the education and training of
seafarers (ISO 9001 - starting implementation in 2000). Ports/terminals where cargo handling
takes place (ISO 9001 - starting implementation after 2004).
Types of quality management systems include standardized quality management systems and
change and improvement management. Standardized management systems are based on
international forms. Standards usually do not have mandatory application. The obligation is
determined by documents issued by state institutions authorized for control. In this case, the
state usually obliges standards related to product quality and the protection of health and the
environment, while the application of other standards is left to market mechanisms. The
development of quality management standards primarily occurred because it was believed that
such standards would significantly improve and facilitate international trade. A product
produced according to an international standard can be sold anywhere in the world where that
standard is adopted, significantly facilitating trade. The construction of standards for quality
95
management systems has brought another significant advantage, and that is that all products of
a manufacturer certified according to an internationally recognized standard for quality
management systems automatically received a "passport" for the international market.
The new QM concept is based on the opposite vision compared to the real and common vision.
The usual organization of QM is the step-by-step construction of production, taking into
account the minimum requirements that will be able to prove the quality of the ship structure.
The new concept is to start with the planning of inspections and controls. It is necessary to
determine which inspection is needed. This is the first question the shipyard asks. The answer
could be given by creating an accurate test plan dedicated to the inspection required by
standards and/or the user. The new concept has significantly contributed to quality control in
shipbuilding.
As in any industry, profit increases when operating costs are reduced. The same applies to
ships. Operating the ship at the optimal number of revolutions for better fuel efficiency, as well
as monitoring engine operation and subsequent changes, can lead to a reduction in fuel costs.
Ensuring the availability of an updated inventory of spare parts on the ship will reduce
demands, thereby reducing unnecessary spare parts costs. While the pull check that needs to
be done to see if components can be reused before replacement is another way to reduce costs.
Inventory and records of the consumption of lubricating oils help monitor the consumption of
lubricating oils.95 Maintaining stocks of consumables such as chemicals also reduces
unnecessary orders, allowing the ship to order these items in advance for the company to plan
to organize them in a suitable port, reducing delivery and transportation costs. Proper planning
and work distribution can reduce crew overtime. Due to the continuous production process in
shipbuilding, especially in the serial production of ships, in quality management system
projects, it is possible to pay close attention to phases where there are increased costs of non-
compliance (CN). Identifying places where there are increased costs due to non-compliance
means identifying places where these costs occur. Identifying such places requires not only
being familiar with the organization of the production process and the probability of error
occurrence causing non-compliance but also an approach based on quality management
focused on such identified points where errors are likely to occur.
95
TQM management, op.cit., (03.03.2022.)
96
In conclusion, it can be said that shipbuilding is a system consisting of a series of process
components, and during ship construction, it is necessary for each individual process to
undergo quality control so that the end product will be of high quality without incurring
additional costs for possible modifications.
97
LITERATURE
BOOKS:
1. Chirillo, Louis D., Storch Richard Lee, Analiza procesa putem kontrole točnosti, 1982.
2. Eldho Paul, Babu D., Paul. B., Design of anaccuracy control system in ship building
industry, 2014.
3. Goetsch, D.L., Davis, S.B., Total Quality Handbook, Prentice-Hall, New Jersey, 2001.
4. Kuliš, Šiško, M., Upravljanje kvalitetom, Ekonomski fakultet Split, 2010.
5. Lazibat, T., Baković, T., Poznavanje robe i upravljanje kvalitetom, Zagreb, Ekonomski
fakultet, 2012.
6. Lazibat, T., Upravljanje kvalitetom, Znanstvena knjiga, Zagreb, 2009.
7. Skoko, H., Upravljanje kvalitetom, Sinergija, Zagreb, 2000.
ARTICLES:
1. Britvić, J., Moderni sustavi upravljanja u organizacijama, Praktični menadžment,

vol.2.br.2, str. 72.-80.
2. Bukša, T., Diferencijacija upravljanja kvalitetom kod cikličkih projekata u
brodograđevnoj industriji (disertacija), Rijeka, Tehnički fakultet Sveučilišta u Rijeci,
2012.
3. Bukša, T., etal. A Differentiation-Based Approach to Quality Management in
Shipbuilding Taking into Consideration Errorsin Manufacturing Processes.
Brodogradnja, vol. 64, br. 4, 2013, str. 488-503.
4. Dănuț, I. Vasile, S., Gheorghe, M. New concept of quality management in
shipbuilding, Vol. 13, 2015., str. 332-340.
5. Drljača, M., Troškovi kvalitete – povijesni razvoj spoznaja i perspektive, Zbornik
radova 5. Simpozija Suvremena stremljenja u upravljanju kvalitetom, Hrvatsko društvo
menadžera kvalitete i Oskar, Zagreb, Trogir, 2003.
6. Magheţ, T., Maehrlein, J., Durabilitatea produselor utilizate pentru construcţii -
Protecţiaîmpotrivacoroziunii -Cerinţeşicalificareapersonalului, Sudura no. 2/2014.
7. Miletić, A., Krajnović, A., Bosna, J., Upravljanje kvalitetom hrvatskih tvrtku-
izvoznicaEU, Tranzicija, 16(34), 2014.
98
8. Pekanov Starčević, D., Mijoč, J., Vrdoljak, T., Mjerenje utjecaja potpunog upravljanja
kvalitetom na financijsku uspješnost hrvatskih poduzeća. Ekonomski vjesnik : Review
of Contemporary Entrepreneurship, Business, and Economic Issues, XXV(2), 2012.
9. Storch, R.L., Gribskov, Jon R., Accuracy Control for U.S. Shipyards, Journal of Ship
Production, Vol. 1, No. 1, Feb., 1985.
10. Šuman, S., Kovačević, A., Davidović, V., Quality standards–still unused potencial.
Zbornik Veleučilišta u Rijeci, 1(1), 2013.
11. Zambelli, S., Rajić. D., Analiza sustava kvalitete u certificiranim i necertificiranim
hrvatskim vanjskotrgovinskim poduzećima, Poslovna izvrsnost 8.1, 2014.
ONLINE SOURCES:
1. Gašpar, A., Sustav upravljanja kvalitetom,
https://hvk.hr/hrv/skupovi/vdani11/prezentacije/pdf/gaspar-
sustav_upravljanja_kvalitetom.pdf (02.03.2022.)
2. Jolić, N., Kvaliteta i normizacija,
https://www.fpz.unizg.hr/njolic/dip/pdf/Kvaliteta_i_normizacija_Predavanja.pdf,
(02.03.2022.)
3. Kvaliteta, upravljanje proizvodom i poslovanjem, https://www.wisdomjobs.com/e-
university/production-and-operations-management-tutorial-295/quality-9624.html,
(02.03.2022.)
4. Svijet kvalitete, dostupno na: http://www.svijet-kvalitete.com/index.php/povijest
(01.03.2022.)
5. Sustavi upravljanja kvalitetom dostupno na:
file:///C:/Users/X/Downloads/4%20Sustavi_upravljanja_kvalitetom_QM02_2013.pdf
(02.03.2022.)
6. Upravljanje kvalitetom, http://www.svijet-kvalitete.com/index.php/upravljanje-
kvalitetom/472-upravljanje-kvalitetom (04.03.2022.)
7. ISO, https://www.iso.org/about-us.html, (04.03.2022.)
8. Sustavi ISO, https://www.oskar.hr/poslovno-savjetovanje-iso-sustavi/iso-9001-sustav-
upravljanja-kvalitetom/, (05.03.2022.)
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iri.com/maritime/maritime-general-information/quality-management/, (05.03.2022.)
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(03.03.2022.)
99
11. Rules for the classification of ships, 2021., https://www.dnv.com/news/rules-for-
classification-of-ships-july-2021-edition-203529, (06.03.2022.)
100
3. KNOWLEDGE MANAGEMENT
Professor Dr. Mila Nadrljanski, University of Split, Faculty of Maritime Studies,

mnadrljan@pfst.hr
Doc. Dr. Mira Pavlinović, University of Split, Faculty of Maritime Studies,
mpavlinovic@pfst.hr
Jelena Zanić Mikuličić, University of Split, Faculty of Maritime Studies, jzanic@pfst.hr
“ Learning never exhausts the mind.” - Leonardo da Vinci
“ There are only two ways a manager can influence employee performance:
motivation and training.
If you're not training, then you're actually neglecting half the job."
What is knowledge management and what is it for? In the knowledge society that is being built
today, knowledge is the most important asset that organizations possess. Knowledge
management lays the foundation for operations and communication within and outside the
organization. It helps in assigning roles and responsibilities while striking a balance in
delegating the authority of analytics through knowledge management software helps identify
knowledge gaps and helps remediate them with organization-wide alignment. A workflow is
initiated for employees to establish a standard code of conduct for work operations.
1. INTRODUCTION
In recent years, a trend can be observed that lifelong learning is becoming more and more
popular. The main purpose of this paper is to conduct a theoretical review and analysis for the
fields of knowledge management and to explore the future trend of knowledge management
research. Also, the essence of this work refers to a brief review of the existing literature on the
goals and tasks of adult education. The presented material emphasizes research aimed at
delineating the relationship between set goals and the individual, social and economic progress
of adult participants.
For a simple introduction to knowledge management, this paper will briefly outline the
following:
• What is knowledge management
101
• Objectives of knowledge management
• Benefits of knowledge management.
In recent years, knowledge has been widely recognized as the most important competitive
advantage. Knowledge refers to a theoretical or practical understanding of a subject.
Knowledge management has become a very common term in the twenty-first century, as it is
applied to a wide range of activities and areas for the purpose of managing, creating and
improving intellectual property. Knowledge management is not a stand-alone thing – it must
be part of the corporate way of working. Knowledge management is ultimately about sharing
knowledge and therefore involves people proactively providing and seeking knowledge. By
reviewing related works, it was observed that there are more concepts and terms in the field of
knowledge management.
This paper considers what knowledge management (KM) is, the different types of knowledge
it deals with, the business needs it helps solve, and the common tools and approaches that help
knowledge get where it needs to be. This paper also talks about continuous professional
development as a process of recording and reflecting on learning and development. It is a
multidisciplinary approach to achieving organizational goals by providing access to the right
knowledge to all. Education and training are increasingly becoming the main means of self-
awareness, belonging, progress and self-fulfillment. Education and training, whether acquired
in the formal education system, in the workplace or in a more informal way, are crucial for
employees in controlling their future and personal development. During the 20th century, on-
the-job training became increasingly common, until it became standard practice in most
organizations.
There are different types of education and training that employers can offer their workers, from
formal courses to work-based training, to seminars and online learning modules. Employee
training improves employee skills, which translates into better quality of work, higher
productivity and profitability. Over the past few decades, computers, mobile devices, and
digital training tools have become more prominent, resulting in blended training programs that
use both human trainers and computers.
2. BASIC TERMS FROM LIFELONG EDUCATION

2.1. Lifelong education is a form of self-initiated education aimed at personal development.
Although there is no standardized definition of lifelong learning, it is generally considered to
refer to learning that takes place outside of a formal educational institution, such as a university,
or corporate training. Lifelong education is a key factor in improving knowledge, competences,
work opportunities and quality of life.
102
The terms lifelong education and lifelong learning are more recent. The concept of lifelong
learning was developed in the sixties of the last century and was created as a response to the
problem of mismatch between the education of young people and adults.
Key competences for lifelong learning and functioning in society according to the
recommendations of the Council of the European Union and the European Parliament (2006)
must be acquired during initial education, and they include language, mathematics and basic
competences in science and technology, digital, methodical (learning how to learn) , social and
civic competences, competences of initiative and entrepreneurship, cultural awareness and
expression.
2.2. Continuing education includes formal and informal training. Individuals can earn college
degrees through formal programs, focus on professional development courses focused on
personal enrichment in an informal setting, or participate in programs that include both formal
and informal elements. In general, continuing education refers to classes and seminars that
focus on job-related skills and knowledge . Continuing education programs benefit both
companies and workers. Businesses encourage continuing education to maintain a highly
skilled and specialized workforce with cross-task skills or workers with "cross-functional"
skills. Employees, on the other hand, can advance, gain more power in the labor market, or
become more valuable by enrolling in continuing education programs. While advances in
technology have played a role in creating the need for continuing education, it has also created
new avenues for providing continuing education. The Internet, for example, has reduced the
burden of improving business skills by allowing professionals to study at home whenever it is
convenient for them, reducing the commute and time constraints associated with traditional
classes. Continuous learning in the workplace has the potential to expand an employee's skill
set, increase retention of skills and knowledge, generate new ideas and perspectives, boost
morale and increase overall employee effectiveness.
2.3.Improvement is the process of developing new skills for continuing the advancement of a
personal existing career. Upskilling is important to remain competitive in the job market for
new jobs, as well as for individuals to be competitive for advancement opportunities in their
current field.
2.4. Adult learning refers to a series of formal and informal learning activities, both general
and vocational, undertaken by adults after completing initial education and training.
Continuous professional development strengthens self-motivation and self-confidence. In
simple words, lifelong learning, whether formal or informal, is a prerequisite for success in
personal and professional domains. This is the reason why Erasmus+ has been one of the most
important programs for the professional and personal development of all educators for so many
years. People need to update their knowledge, skills and competences to fill the gap between
their education and training and the demands of the rapidly changing labor market. The latest
resolutions and guidelines of the bodies of the European Union emphasize the need to
implement the principles of the concept of lifelong learning in all forms of acquiring knowledge
and skills, including as many citizens as possible, regardless of age, social status and previous
education. In this sense, lifelong learning can be formal professional (permanent professional
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development), formal outside the profession (personal development), informal professional
(learning within professional activities) and informal outside the profession (learning related
to various life activities).
Agenda of the workforce development system in the Nova Ideja program focused on these
four goals: (1) closing the perceived job skills gap; (2) training employed and displaced
workers to prepare for changes in the economy; (3) achieving wage progression for low-income
individuals; and (4) integrating workforce development programs into newly developed
professions.
2.5. Knowledge represents the totality of everything known in a certain field, facts and
information, and awareness or connection gained through the experience of a fact or situation.
Knowledge is a system or logical overview of facts and generalizations about objective reality
that man has adopted and permanently retained in his consciousness. Knowledge also consists
of all the facts, information and skills that a person acquires through experience or education.
It is a theoretical or practical understanding of a problem.
2.6. Knowledge management is the process of creating, sharing and maintaining knowledge
and information in the organization. Knowledge management is multidisciplinary in nature,
including: organizational science, cognitive science, information technology, linguistics,
technical writing, ethnology and sociology, teaching, communication studies, collaborative
technologies such as computer-based collaborative activities, intranets, extranets, portals, and
other network technologies . Knowledge management helps all institutions to improve their
ability to gather information and knowledge and apply them in problem solving and decision
making . It is a way of using a multifaceted strategy to make the best use of each organization's
knowledge resources to achieve higher business goals. Effective knowledge storage will help
an institution improve performance, share insights, drive innovation and continuously improve
its business and organization. Or knowledge management is the process of collecting,
developing, sharing and effectively using organizational knowledge. It helps organizations
make the most of knowledge. Knowledge management is a way of working. It has to be part
of the organization's culture and the way things are done . With the development of increasingly
complex operational procedures and systems, there is an increasing demand for the
construction of knowledge support systems. Such systems will help companies maintain their
place in the competitive market.
2.7. A knowledge management system is a tool used by companies and organizations to help
organize documentation and other information so that it can be easily accessed by employees
and users. Using a knowledge management system in a company can help keep documents up-
to-date, help customers find answers to questions they have, and manage access to knowledge.
It's a system that's valuable to both small startups and large companies. Knowledge
management systems are part of the organization's learning process. They are focused on
managing knowledge as a business asset that can be shared by workers and employees. The
ultimate goal of knowledge management is to connect people who are looking for knowledge
with those who are willing to provide it.
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2.8. Training is a systematic change in behavior through learning that occurs as a result of
instructions, education, development and planned experience, while learning is considered a
relatively permanent change in behavior that occurs as a result of practice or experience.
Learning is defined as the process in which employees acquire knowledge, skills and attitudes
through experience, thinking, learning or instruction.
2.9.Training can also be defined as a planned process for changing attitude, knowledge or
behavior skills through a learning experience in order to achieve effective performance in an
activity or series of activities. Its purpose in the work situation is to develop the abilities of the
individual employee and meet the present and future needs of the organization.
Nowadays, knowledge plays an increasingly important role in success, both in life and in
business. In this paper, the emphasis is more on the business level. Knowledge is used as an
input and as an output. The number of workers who use their knowledge in new employment
is 80%. In production technologies and products, the share of knowledge and information is
increasing significantly. In the most developed parts of the world, more than half of the gross
domestic product is based on knowledge, which is the same example in which direction we
should direct our own economy. Knowledge is also the ability of people to use information to
solve complex problems and adapt to change. It is the individual's ability to overcome the
unknown, which is very important in economics. Business brings new obstacles, ups and downs
every day, and success will only be achieved if we have enough knowledge and persistence to
overcome these obstacles and solve problems. Because of such situations, a new discipline was
born that deals with exactly that, namely knowledge management. Knowledge management
(KM) is a business philosophy and a constant process in organizations that consider knowledge
and innovation as their strategic weapons. Knowledge management consists of various
methods and procedures that ensure that the goals of the organization are achieved through
effective knowledge creation, communication and sharing of knowledge, its collection and
storage and reuse. Effective knowledge management is impossible without an appropriate
corporate culture, and it is supported by IT tools. The aim and objectives of this work are related
to the interpretation of the concept, significance and essence of knowledge management.
Knowledge management, simply put, is all the procedures and infrastructure that enable the
knowledge that exists in the organization, which any employee of the organization has, to be
available to every other employee, when he needs it, if he has the right to it. It also enables
timely discovery that some knowledge is needed, that it is not available and how to acquire it.
The first generation of knowledge management: data, information, knowledge and wisdom;
types of knowledge and transformation of one type of knowledge into another; context,
hermeneutic circle; expert systems and knowledge management. New knowledge management
(Second generation): life cycle of knowledge; knowledge management versus knowledge
processing; nested domains and knowledge repositories; organizational learning; social
innovation as capital; sustainable innovation. Knowledge management strategies: human
dimension, content dimension and technological dimension; guiding principles of strategy;
management metrics; risks and assumptions of successful implementation of strategies.
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Knowledge is a fluid mixture of shaped experience, values, related information, and expert
opinion that provides a framework for evaluating and incorporating new experiences and
information. It originates and is applied in the minds of the connoisseurs. In organizations,
knowledge is often stored not only in documents or repositories (knowledge bases) but also in
organizational routines, processes, practices and norms.
3. ORIGIN AND DEVELOPMENT OF KNOWLEDGE

MANAGEMENT
Knowledge management has a long history, starting with conversations and discussions at the
workplace, corporate libraries and professional training programs and programs with mentors.
Knowledge management systems help create a smooth transition between these forms and the
many other transitions companies may go through.
Until recently, training was usually in the form of apprenticeships and work-based learning. It
cannot be denied that organizations invest a large amount of time and resources in training new
employees. An investment of time, money and resources is essential for organizations to make
their training initiatives as effective as possible. New hires would start working for their
employer, often at a young age, and immerse themselves in their new role until they achieved
mastery. During the 1800s, industrial technology began to enter the world of work and with
this new technology came the need for more specialized skills. Formal training programs
quickly became commonplace in factories and began to spread to other types of business. The
lack of a good knowledge management system deprives staff of the ability to access vital
information needed for optimal productivity. The need for training as well as for the acquisition
of new knowledge, new skills and new attitudes has become a daily part of the working life of
employees. The worlds of learning and work are changing, and so are the demands for
education, continuing education and further education.
In some cases this requires a complete change from one occupation to another, but in others it
may be merely an updating process.
Knowledge management is the creation, sharing, use and management of an organization's

information. It is a multidisciplinary approach to achieving organizational goals by providing
access to the right knowledge to all.
Knowledge management is how a company creates, stores, distributes, uses and manages
knowledge and information - making it available to everyone.
If a company's operations are going through the following stages, they should consider setting
up a knowledge management system:
• The retirement of experienced workers creates a need to document their knowledge.
• Need to train new employees on company roles, responsibilities and procedures.
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• The need to create a pool of resources, ideas and knowledge that can be shared between
several teams on a current project.
The history of knowledge management dates back to the earliest periods when valuable
information was preserved and prevented from being lost from generation to generation. the
acquisition of knowledge at any cost led to some of the most famous ancient civilizations.
In today's world, knowledge and innovation are the main business drivers of the economy, and
management
knowledge enables the identification of the most strategically important knowledge for the
improvement of any organization and the organization of the most effective flow of knowledge
and data in order to increase the efficiency of the organization. By following basic rules and
using knowledge management methods, it is easier for organizations and companies to become
and remain competitive in today's markets.
Knowledge management is a method of systematic organization, storage and sharing of

collected knowledge in order to achieve the goals of an organization.
Knowledge management systems are used in organizations for a variety of reasons. The goal
at the end of the implementation is to achieve growth and productivity. Different types of
knowledge management systems help companies achieve their goals.
Knowledge management is still a relatively new concept that has not been fully academically
researched, and in Croatia it is even a very rarely applied system. Due to the fact that it has not
been fully explored, it has great potential, but also a high price in the form of the need for
further research, spreading knowledge and familiarization in practice.
Knowledge management mainly focuses on organizational goals such as performance

improvement, competitive advantage, innovation, distribution of learned knowledge and
continuous improvement of the organization. Knowledge management overlaps with
organizational learning, and can be recognized because it emphasizes the sharing and
distribution of knowledge to individuals and groups to reduce or completely eliminate
unnecessary work, reduces the period of adaptation and learning for new employees, and
facilitates the organization's easier adaptation to the constantly changing environment and
markets.
Even today, knowledge management is an unexplored branch of science, and it was very rare
in practice. Several projects that can be called the beginning of putting knowledge management
into practice were started by General Motors under the leadership of the Chief Knowledge
Manager, who at that time was Vince Barabba. . A few more companies that brought innovation
with projects within the company were Huges Aerospace And Electronics (a system for
recording recurring problems in various fields), Xerox, HP and IBM.
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There are many different theories about the science of knowledge management that do not have
common points of agreement, the approaches differ from author to author . Given the
importance of clarifying these terms for use by users, the subject study aimed to examine
concepts related to the field of knowledge management . According to the cited authors, thirty-
seven concepts have been singled out that are most relevant to the field of knowledge
management. There was no clear boundary between them and they wandered. In order to avoid
additional confusion, terms are classified according to their semantic relationship.
As science ages and is increasingly studied from an academic point of view, there are more and
more academic debates related to both the theoretical and the practical part of knowledge
management. Some of the perspectives are:
• Techno-centric – focuses on technology, most often on technology related to improving

the distribution of knowledge
• Organizational - focuses on how best to design an organization to make the best use of
knowledge
• Ecological - focuses on the interaction between people, identity, knowledge and the
ecological factor as a complex system of adaptation similar to the natural ecosystem.
Learning is a way of creating new knowledge and improving existing ones. Although there is
great debate about the mechanisms and extent of learning, in its simplest form it is no different
for organizations. This can refer to the formalized part of the organization. Each company will
tend to have different instructions on how employees should behave in order to do their job (eg
problem solving). These instructions are often specific and narrowly focused, limiting the
individual to a set path. A good model can integrate different elements and show relationships
in a way that is much more difficult to do in written form. Because of this, there is no such
thing as an integrated and fully detailed learning management framework, i.e. a framework that
encompasses all relevant aspects in appropriate detail. Each model must choose its own focus
and origin, as well as its own limitations.
4. MODELS OF KNOWLEDGE MANAGEMENT

A good model can integrate different elements and show relationships in a way that is much
more difficult to do in written form.
There are five ways of creating knowledge:
• Acquisition
The creation of knowledge through acquisition implies the creation of knowledge through the
collection of customer orders from the supplier side. Collected orders provide information to
the supplier about what kind of products the customer wants, what is the trend of certain
products or services, and in which direction to direct the organization in order to achieve the
greatest customer satisfaction.
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• Dedicated resources
Dedicated resources are resources that the organization owns and are intended for the creation
of knowledge. Companies have resources intended for internal knowledge management, most
often as part of the department for business strategy, IT or human resources management.
• Connection
In the case of a merger of two companies, the knowledge and experience of both parties are
collected and new knowledge is created.
Such knowledge can contribute more than just the knowledge that the company had before the
merger, but it needs to be adapted to the needs of the company before the company can start
applying it.
• Adaptation
In the very beginning of the organization, many changes follow, to which the organization must
adapt in order to survive. In the process of these adaptations, a lot of knowledge is acquired,
starting with the structure of the organization and ending with the market in which the
organization participates.
• Knowledge networking
Knowledge networking means joining the knowledge of two or more sectors of the
organization. On
example by creating a database that will be used simultaneously by the company's procurement
and production in
intentions for the data to be valid and timely updated.
The following initial steps are required to develop a knowledge management system (Hired
Gun Consulting) :
1. Gain commitment from all organizational plans to create a management initiative
knowledge.
2. Provide funding to ensure the successful completion of the initiative.
3. Research of IT / IS resources needed to create a knowledge management system.
During the decision-making process of creating a knowledge management system
(intelligence, design, selection and implementation), the organization must ensure the result
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of their investment in creating a knowledge management system.
At the most basic level, knowledge management consists of the following steps:
• Identification of needs
• Identification of sources of knowledge
• Acquisition, creation or disposal of knowledge-related

resources/processes/environments
• Retrieving, applying and sharing knowledge
• Knowledge storage
It is important to emphasize that none of these processes are independent and all of them are
influenced by countless factors. Because of this, knowledge management frameworks are
usually very different and can be presented in different ways.
In 1999 ., the term personal knowledge management appeared for the first time, which refers
to knowledge management at the individual level.
Knowledge management in an organization means that the company consciously and

comprehensively collects, organizes, distributes and analyzes its knowledge in terms of
resources, documentation and human skills.
Technology is constantly evolving day by day. New technology releases and updates come
frequently. What worked yesterday may be slower than what works today. There are constant
changes in the technology used today, so there is a need to monitor and implement updates.
When there is an urgent technology update, it is initially a pain and a challenge, but that
technology update usually brings more opportunities in the end. It is also challenging because
they will have to get used to the new technology and understand it before starting with it.
The complexity of upgrading and updating deprives an organization of the benefits of a

knowledge management system. This means that the right management tools are needed to
advance its benefits and the ability to plan update procedures in advance, before the new
technology can be used.
4.1. TYPES OF KNOWLEDGE MANAGEMENT SYSTEMS
Every company has its own unique needs for a knowledge management system. The
implementation of a knowledge management system in an enterprise depends on the objectives
of the enterprise and the way in which they serve their employees and customers. Many
organizations and businesses use knowledge management systems to implement reliable
procedures that increase sales and productivity.
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An internal knowledge management system is used to optimize knowledge sharing among
staff, support employees to do their jobs, and improve productivity and performance.
An external knowledge management system is a system that involves the dissemination of

relevant knowledge to clients or anyone outside the organization itself. It helps improve your
own business experience for customers and extend business insights to those outside the
organization.
Companies use many different types of knowledge management systems. They include:
4.2. RESEARCH AND INSIGHT LIBRARIES
The platform's research and insight libraries are cloud-based that store slides, industry news,
customer interviews and research reports. Some companies create one research library for
finalized content they share with stakeholders and use another library for client interviews.
Research and insight libraries are good for your business because they help increase the impact
of user insights in your organization by making it easier to access research materials and apply
relevant ideas to support decision making. These cloud-based platforms will help you cut down
on unnecessary research. A well-structured knowledge management system is easily accessible
and helps you track current knowledge and use it to develop insights.
4.3. CUSTOMER SERVICE KNOWLEDGE BASES
A knowledge base is a self-service online library of information about an organization's

product, service, department, or topic. Many knowledge bases are structured on the basis of
artificial intelligence that can communicate and respond to user inputs. Others are simply
indexed encyclopedias. There are also machine-readable knowledge bases that store content in
system-readable forms. The solutions are based on what we call automated deductive
reasoning. When the user enters a query, the software helps narrow down the solution.
Data in the knowledge base can be obtained from anywhere. Usually contributors who are well
versed in relevant topics add to and expand the knowledge base. Content can vary from HR or
Legal details to explaining how the product works. The knowledge base may include FAQs,
manuals, troubleshooting guides, manuals, and other information your team may want or need
to know. Customer service knowledge bases provide customers with complete explanations
about the organization and its products, providing easy access to frequently asked questions. A
customer service knowledge base can be created and managed using a website that allows
customers to help themselves by finding answers to many frequently asked questions. They
can also be internal knowledge bases that give customer service representatives easy access to
the information they need to answer customer questions. Customer service knowledge bases
increase customer satisfaction and loyalty. By providing customers with easily accessible
answers to their questions, employees will have more time to focus on other issues instead of
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answering routine and repetitive customer questions. Organizations use knowledge bases for
many reasons. And they find new uses almost every day. How you use the knowledge base
depends, of course, on what the organization does and who it serves.
4.4. LEARNING MANAGEMENT SYSTEMS (LMS)
Learning management systems focus on hosting, tracking and distributing learning and training
materials. A learning management system will help employees access learning materials
anywhere. One of the advantages of a learning management system is that it allows employees
to improve their skills, which increases job satisfaction. New hires can be on-boarded faster
with customizable learning paths, and their knowledge can be assessed with interactive quizzes.
4.5. ONLINE COMMUNITY FORUMS
An online community forum is a website or application that allows visitors to share their
interests and areas of expertise on an issue. They provide a space for visitors to network and
provide peer-to-peer support. Some organizations will create an online community forum to
receive feedback from their users and provide them with the necessary support by answering
questions and concerns.
Online community forums are one of the best options to keep customers engaged and happy.
Smart business owners use information in online community forums to conduct market
research using feedback from their customers and innovate their desired product based on the
results.
4.6. TYPES OF KNOWLEDGE THAT SHOULD BE INCLUDED IN THE

KNOWLEDGE MANAGEMENT SYSTEM
Any good knowledge management system is structured to accommodate different forms of

knowledge. These types of knowledge are essential to the productivity of business operations.
At the end of the training, the defense team can learn to communicate with these types of
knowledge as they take on multiple tasks.
4.7. EXPLICIT KNOWLEDGE
Explicit knowledge is written down and available. This knowledge is captured in documents
such as manuals, reports and guides. Whenever data is structured, organized and interpreted,
the result is known as explicit knowledge. Explicit knowledge is easier to share because it is
recorded, transmitted and stored. Information in textbooks, company fact sheets, white papers,
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research reports, and encyclopedias are great examples of explicit knowledge. Explicit
knowledge does not have to be written, it can also be audiovisual.
Explicit knowledge is the most basic form of knowledge and is easily transferred between
individuals. Any form of data that passes through the organization and is structured and
interpreted can be called explicit knowledge. New employees and workers can use this
information. They learn from information that has already been stored and shared.
4.8. IMPLICIT KNOWLEDGE
Implicit knowledge includes personal wisdom, experience, insight and intuition. It is

knowledge gathered from experience and stored in memory. Implicit knowledge cannot be
easily expressed or conveyed to another person through the use of words. Some examples of
implicit knowledge are understanding the meaning of body language, finding a new location
on a map, and using complex computer language. Regardless of how it is structured, a
knowledge management system is an information technology (IT) system that helps an
organization collect, store, and retrieve knowledge and information to improve understanding.
Knowledge management primarily exists within the organization and is used by its employees
and users. It is known that the ultimate goal of knowledge management is to capture all useful
resources so that they can be easily accessed and create better results. However, in order to
achieve this, it is useful to set several smaller goals.
Analysis of the initial situation - the main goal of this phase is to create an integrated view of
the current situation in the organization of knowledge management, from the perspective of the
user and his strengths and weaknesses.
The initial state analysis phase consists of the following basic activities:
1) creation of a survey on sources of knowledge,
2) defining knowledge development in the organization,
3) analysis of the current state of process knowledge in the organization,
4) description of organizational processes,
5) findings from the current state of organizational culture,
7) analysis of strengths and weaknesses of the current situation in the organization.
Creating a knowledge strategy - the main goal of this phase is to create a knowledge strategy
that will support business strategies and identify activities, especially knowledge, that will
support the achievement of business goals and knowledge management.
This is necessary for the performance of this activity:
1) creating a list of knowledge management activities,
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2) choice of activities,
3) creation of plans and projects,
4) creating a knowledge strategy,
Realization of knowledge management activities - the main goal of this phase is to carry out
various activities, projects or plans leading to knowledge management. It is obvious that these
activities will differ in the form, time and resources required, orientation, amount, or specific
goals to be achieved in each organization.
What is logistics management anyway?
Logistics is generally the detailed organization and implementation of a complex operation. In

general business terms, logistics is the management of the flow of goods between the point of
origin and the point of consumption to meet the demands of customers or corporations. Supply
chain management and logistics management are interrelated. Logistics includes the process of
collecting materials, production, packaging, transportation from production to sending to
shopping centers and stores. Logistics organizations can track and effectively manage assets
using logistics asset management and asset tags. Organizations use tags for organized asset
management. Marks are marked on the property; these tags usually have a unique path by which
the asset is tracked.
What is maintenance management?
Maintenance management is the process of monitoring and maintaining assets in the best
condition.
The goal of maintenance management is to reduce downtime, minimize maintenance costs,

optimize asset performance, etc. to achieve this goal, the pursuit of regular inspection and
supervision, so that whenever any problem occurs, maintenance is done quickly. If assets are
not maintained, productive work is delayed, resources are wasted and productivity suffers. If
the issues are not resolved, it can become a chaotic process.
Until a few years ago, everything was manual and imprecise because they used the pen and
paper method. But not anymore, thanks to CMMS software , trained employees, best practices
and an organized strategy. Usually, maintenance is carried out based on two factors, the first is
when the asset has failed, and the second is planned maintenance. In both cases, property
maintenance is done when the property is in good condition or when it is too late. This is where
condition-based monitoring maintenance comes into play. This maintenance is proactive, and
maintenance is provided to the property when it is needed. For this purpose, assets are regularly
inspected, several asset tracking techniques are used, such as IoT . It helps provide real-time
information and managers can utilize assets to the maximum extent possible.
5. EMPLOYEE EDUCATION
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Employees are eager to learn new skills to advance their careers and rely on their employers to
help them do so. Scientists often quote futurist Alvin Toffler and his remarks and thoughts
in the book Future Shock are often cited by scientists. "You have to think about the 'big things'
while doing the little things, so that all the little things go in the right direction." Toffler
predicted that rapid change and globalization would demand greater mobility and flexibility in
learning. A well-designed employee education program contributes to motivation and loyalty,
but unfortunately, continuous employee education is often an afterthought. Many companies
choose not to spend their time and money on employee development; in their shortsightedness
they do not see the importance of employee education for business success. A well-designed
plan can give employees a sense of value and self-worth. People tend to be more confident in
their jobs when they have more to offer. Providing lifelong learning gives employees the
opportunity to acquire a broader set of skills, which can result in increased productivity. On
the other hand, employees who feel inadequate and unmotivated tend to procrastinate and
become apathetic, resulting in low productivity. Such flexibility requires learning to be a
continuous process that lasts throughout life – a fundamental discipline in a knowledge-based
organization.
The process of team learning and raising the level of individual skills requires the development
of reasoning and emotional skills. There are three areas of human learning: mental skills,
attitude or emotional skills, and psychomotor or physical movement. All changes require new
job requirements and new work methods that again require a different combination of expertise,
knowledge and skills. In this environment of growing uncertainty, organizations must be aware
of the need for their businesses to seek new answers to productivity and quality issues. These
changes require new job requirements and new work methods that again require a different
combination of expertise, knowledge and skills. In this environment of growing uncertainty,
organizations must be aware of the need for their businesses to seek new answers to
productivity and quality issues. Strategic investments represent the company's choices/options
to enable and improve said processes (eg knowledge sharing) and offer help in defining which
knowledge is relevant (ie in line with strategic goals) and which is not.
Peter Senge in his book The Fifth Discipline, popularized the concept of a learning
organization "where people constantly expand their capacity to act to achieve the results they
really want, where new and expanded ways of thinking are nurtured and where people
continuously learn how to learn together ". Employee education opens the door to employment
or job advancement. These opportunities provide tangible benefits that extend from personal
to organizational and societal levels. At the organizational level, employee education increases
the number of talented people in the company. As a result, the more skilled and educated people
are, the better the company's operations will be in terms of revenue and profitability.
Seng's basic disciplines are:
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5.1. Personal skill. Individuals must commit to lifelong learning for the betterment of personal
and organizational growth. The desire to learn must be for the purpose of seeking an
explanation of personal viewpoints and visions and the role in the organization.
Systematic thinking. One of the elements of learning is the possibility of studying

interconnections in complex dynamic systems.
5.2. Mental models. Senge recognized the importance of mental knowledge and its
communication in the socialization process. He emphasized planning as a process of sharing
and distributing knowledge that encourages individuals to envision and share solutions—
creating a shared understanding of goals, problems, alternatives, and solutions.
5.3. Shared vision. An organization that shares a collective aspiration must learn how to
connect the individual visions of individuals into a single entity without conflict or competition,
creating a shared commitment to achieving a set of organizational goals.
5.4. Team learning. A learning organization must embrace and understand the diversity of its
membership and adapt its behavior and dialogues to enable growth in individual and
organizational knowledge.
6. THE IMPORTANCE OF DIGITALIZATION IN THE

KNOWLEDGE MANAGEMENT PROCESS
Technology-driven trends in modern society have transformed the way people think and
communicate. The latest technological artifacts and devices have a profound impact on the
forms of interaction between individuals, and also significantly affect the process of co-
construction of knowledge. The worlds of learning and work are changing, and so are the
demands for education, continuing education and further education. Digitization is changing
the nature of occupations and skills needed in various economic activities. The increasing use
of digital technologies is also driving changes in the tools and modalities of learning,
assessment and certification along with the provision of career guidance, job matching and
labor market services. The labor market in the future will be affected by the lack of skilled
workers. At the same time, advanced digitization will require business roles and skills that do
not yet exist today. A key part of knowledge management in the digital age is ensuring that the
organizational team on which jobs need to become active in order to effectively engage with
their target audience. When asked what digital transformation is, the simplest answer would
be: It is a company that uses technology to continuously improve all parts of its business
models, it is a digitally smart organization. What it offers, how it communicates with
consumers and how it does business. Digital transformation changes the entire business model
of the organization. As technology advances, employees must prepare for greater competition
as organizations will begin rewarding employees based on their ability to perform tasks that
machines cannot perform. The Action Plan for Digital Education (2021-2027) is a renewed
policy initiative of the European Union that sets a common vision for high-quality, inclusive
and accessible digital education in Europe, and aims to support the adaptation of education and
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training systems of member states to the digital age. . The European Commission is developing
a set of non-binding requirements for EU member states regarding the provision of digital
skills. This policy input summarizes EUA's input ahead of an eventual Council
recommendation and reminds of the critical importance of digital skills for successful digital
transformation. For this to happen, Europe must identify and implement the technical
foundations that enable interoperability and empower institutions and learners. Specifically,
EU member states and other EHEA members should consider regulatory barriers to digital
education, investment in infrastructure and university staff, as well as prioritize open source
and open standards.
The previous experience and qualifications of the workers would become less important.
Today's employees are shortlisted based on their ability to collaborate with machines that have
cognitive functions. This makes knowledge management even more meaningful as companies
become dependent on cognitive machines for highly repetitive and complex work. First of all,
it should be emphasized that digital knowledge management is the process of identifying,
collecting, documenting, organizing and centralizing company information and organizational
knowledge, especially in digital form. A key part of knowledge management in the digital age
is ensuring that the company knows which channels to become active in to effectively engage
with its cause.
The evolution of technology is driving two related trends. On the one hand, distance learning
technologies, microlearning, and the evolution of support technologies such as scheduling
software significantly expand the capacity of institutions to offer flexible learning opportunities
at times and places that are driven by student needs rather than institutional needs.
The continuous digitization of processes within the industry obligates workers to return to
education or training at several stages of their working career in order to remain relevant.
Indeed, the notion of a 'career' over a worker's lifetime is gradually being lost. Typically,
workers and companies prefer that such education or training be seamlessly integrated into the
workplace or that it can take place concurrently with the demands of the workplace, without
disrupting normal work flows. The demands of just-in-time learning are also driving significant
innovation in the areas of skills assessment, with more companies and governments developing
tools that can assess an employee's current skills and suggest new skills that can aid career
development. Digital knowledge management is the process of identifying, collecting,
documenting, organizing and centralizing information about companies and organizational
knowledge, especially in digital form. Digital knowledge management is the process of
digitally identifying, collecting, documenting, organizing and centralizing organizational
knowledge for client and/or internal use. Digital knowledge management systematizes these
data-related processes, enabling disparate teams to all become more data-driven over time. In
other words, you will be able to make better use of events and circumstances, presenting your
product in a way that increases its reputation in the eyes of users.
Most educational software packages tend to be specific or highly tailored to the needs of
specific industry segments. Others are more affordable and function as more general training
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programs. It is often most cost-effective to provide employees with appropriate training on
these technologies in the workplace. This means that they further strengthen the value
proposition for training and other forms of work-based learning. The number of people
participating in lifelong learning is constantly growing. There are, however, several important
factors that are still quite uncertain and that should be taken into account when an educational
institution wants to develop lifelong learning. This is largely the role that government and
industry will play in the development of lifelong learning. The outcome of this will largely
decide what type of lifelong learning to focus on. The application of digital approaches in
entrepreneurial education is necessary to prepare employees for technological changes,
especially digitalization today; until now, an entrepreneurial education curriculum based on
digital technology has been considered essential.
New technologies such as artificial intelligence, robotics, the Internet of Things (IoT),
autonomous vehicles, 3D printing, nanotechnology, biotechnology, materials science, energy
storage and quantum computing are creating new types of jobs.
Knowledge management, artificial intelligence and their role in digital transformation is a

challenge for new knowledge management technology. In practice, knowledge management,
especially knowledge management focused on "digital systems" that selfish manufacturers and
sellers advertise as a "salvation solution". In most of such digitized centric models of
knowledge management based on the paradigm of scientific management, managerial (and
academic) understanding of human beings (today's mind workers) is the basic brake for
achieving better results.
CONCLUSION
Every new advancement in communication and technology has led to new possibilities for
recording and retaining knowledge and its distribution. If CD-ROM is the new papyrus as some
claimed in the late 90s, what is the Internet today? Blogs? Knowledge is captured in an
incredible number of ways and places, most of which are accessible to everyone, and the
question arises as to what this means for knowledge management. In any case, the Internet has
brought us many benefits in terms of communication and the spread of knowledge. It has never
been easier to learn something that users need or are interested in than it is today. This global
network of knowledge will enable anyone to have knowledge on any subject.
The possibility of accessing information and knowledge from anywhere in the world,
information and knowledge presented by experts in their fields can only have a positive effect
on the younger generations who are actually the workers of the future. These huge amounts of
knowledge available to everyone will force future generations to think critically and to be able
to make critical and objective decisions for any information received.
Knowledge management is a trend that is spreading more and more in business circles, both in
smaller companies, as I mentioned in this paper, and in larger organizational structures.
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The concept of knowledge management is taking on ever-increasing proportions and is
becoming the basis for the high-quality and successful functionality of every organization. By
using information technology in the management of knowledge, organizations do not have to
be centralized because it facilitates the expansion to foreign markets. Organizations that use
the resource of human potential as a basic resource in business by applying knowledge
management significantly improve business by reducing costs and increasing the quality of
products or services. The famous sentence of the writer Mark Twain "Knowledge becomes
wisdom only after it is practically applied" would best represent the need to introduce a
knowledge management system in every organization.
As machines learn to solve problems, human affairs will evolve to the creative task of finding
pressing business and societal problems, and then finding ways to apply machines and
technology to solve that problem. To succeed in this new paradigm, employees will need to
cultivate their curiosity and learn to find problems.
Knowledge management refers to the key issues of every organization: adaptation, survival
and development of competences in the era of discontinuous changes in the environment. It
primarily refers to organizational processes that seek to create synergistic effects by combining
and processing information and data obtained with the help of IT with the creativity and
innovation of human beings.
Managing knowledge in an organization actually means "knowing what you know and
profiting from that knowledge" and "making your own knowledge useless before others do." It
refers to the conversion of data and information into specific human behavior and effects. In
this context, the following questions arise:
1. In what way is the data transformed into purposeful meaning?
2. In what way is meaning transformed into decisions based on objective and subjective
interpretations?
3. In what way does the process of creating meaning (ie data interpretation) affect behavior?
4. In what way does the behavior affect the final effects?
The current situation in practice indicates an extremely low success rate of KM technologies.
The reasons for this should first of all be sought in the prevailing management practice and the
literature used in the education of managers. In order to understand the growing "disconnect"
between increasingly "intelligent" and more acceptable technology and the final effects of
knowledge management systems, we need to understand the process of transition from the
industrial economy to the information economy as well as the process of transition from the
information to the knowledge economy.
The big problem lies in the fact that today's managers are indoctrinated with the model of
scientific management that was used in the past and is based on deterministic control. However,
the new time is characterized by the rapid dynamics of unpredictable changes, so such a model
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of deterministic control results in failure - especially when applied within large systems -
because the uncontrollable is trying to be controlled.
Managerial practice, books, articles and academic research in the past have propagated the
model of deterministic control and thus moved significantly away from fundamental reference
disciplines such as psychology. The advent of the knowledge-focused digital age has resulted
in total chaos: managers who increasingly use control even though it is economically
unsustainable and proven harmful to the survival of an increasing number of "uncontrollable"
systems. Therefore, the abstract (intangible and implicit) nature of knowledge-based work as
well as problems in separating work and private life will increase pressure on the command
and control model of management that characterized the era of mass production and conveyor
belts.
An online self-service library of value-added information or guides about the features of a

company's product or service. Users use this user portal to search queries and get actionable
solutions in a segmented category.
Mechanistic thinking is in the background of the early activities of IT equipment manufacturers

and various analysts who called every process of data and information processing "knowledge
management". This is how a logic was created that overemphasizes the routine and structured
processing of data and information, on which only simple decisions can be based, and gives
them primacy in relation to complex decisions characterized by non-routine and unstructured
interpretations (of data and information), which is necessary for solving complex problems,
etc. and for today's leadership. The combination of artificial intelligence and knowledge base
software can be a game changer for call centers. The last thing to understand about digital
knowledge and reputation management is that both are ongoing, never-ending processes. There
will always be something more that can be done to better assert themselves to clients and
improve the company's overall reputation. What effective online reputation management
means in the digital age, along with online reputation management tips and tricks you might
want to consider.
• Brand Management Guide.
• What is online reputation management.
• Where to monitor your online reputation.
• Tips for managing traffic on the Internet.
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LITERATURE:
• https://www-referenceforbusiness-com.translate.goog/encyclopedia/Con-
Cos/Continuing-
Education.html?_x_tr_sl=en&_x_tr_tl=hr&_x_tr_hl=hr&_x_tr_pto=sc#ixzz7mxiV8Y
aF
• Dalkir K. Knowledge management in theory and practice. Boston: Butterworth-
Heinemann. in 2005
• Pircher R, Pausits A. Management of information and knowledge at higher education
institutions. Management Information System 2011; 6 (2): 8–16. [ Google Scholar ]
• ITSM Basics: A Simple Introduction to Knowledge Management March 5, 2019
• Shaham Yazdani, Snor Bayzaidi,Amir Ali Mafi: Current understanding of knowledge
management concepts: A critical review Med J Islam Repub Iran. 2020; 34: 127.
• http://en.wikipedia.org/wiki/Knowledge_management
• https://www-softwareadvice-
com.translate.goog/cmms/?_x_tr_sl=en&_x_tr_tl=hr&_x_tr_hl=hr&_x_tr_pto=sc
• http://en.wikipedia.org/wiki/Alvin_Toffler
• http://www.infed.org/thinkers/senge.htm
• Senge P.M. (2006). The fifth discipline: The art and practice of the learning
organization. Broadway Business.
• The Digital Education Action Plan (2021-2027)
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4. SOCIO-SOCIAL CHANGES ON THE ADRIATIC
COAST UNDER THE INFLUENCE OF TOURISM
Doc. Dr. Marko Nikić, University Adriatik Bar, manikic@gmail.com
Dr. Sc. Antun Čagalj, University College ARCA, ante0cagalj@gmail.com
Petar Puljić, MSc, petar.piljic@gmail.com
PREFACE
Various attitudes of the local population towards tourists and their expectations are
fundamentally dependent on whether the residents are economically dependent on tourism. In
this sense, a phenomenon of change among the local population under the influence of tourists
has been identified. Tourism alters the local environment in which it takes place, and tourists
bring their own culture. They often express a desire to learn about the tradition, language,
cultural and historical heritage, and the way of life of the local population, showing particular
interest in facilities and environments designed to meet their needs. Changes occurring in the
local population due to the influence of tourism are constant, and their effects can be both
positive (employment opportunities, infrastructure improvement, etc.) and negative (traffic
congestion, crime, exceeding carrying capacity, etc.). Interactions between tourists and local
residents in the destination lead to the formation of various relationships based on their
involvement in everyday activities. In response to the increased responsiveness of visitors in
tourist destinations, there is a need for a better understanding of the impact of locals on tourist
behavior. The purpose of this paper is to understand the interaction between tourists and hosts
in the context of their mutual influence on the overall quality of the tourist experience. The
attitude of tourists towards hosts is a poorly researched topic in academic literature. Therefore,
this paper uses social exchange theory, tourism development cycles, and the concept of
segmentation (traditionally used to explain residents' attitudes towards tourism/tourists) to help
understand tourists' attitudes towards hosts. Similarly, there are few studies that explore tourist
harassment by the local population. Tourists' attitudes towards the local population, i.e.,
negative attitudes and behavior towards tourists and their potential to cause dissatisfaction with
the overall quality of the tourist experience, have been investigated. This paper is dedicated to
researching how and to what extent tourism affects changes in the local population.
Specifically, how interested the local population is in participating in tourism development.
The quality of life of the local population must not be jeopardized, as this would result in a loss
of contribution from economic development stakeholders. Life satisfaction in the destination
is higher and increases during the maturity phase of tourism development because residents
materially feel the consequences of tourism development. However, when this development
begins to decline, the quality of life in the local population also declines. One of the key
elements of tourism development is encouraging the participation of the local population
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because it is the essence of the sustainability of the tourism industry. Although the literature
suggests numerous roles that local communities could take on in tourism development, little
emphasis has been placed on how local communities should participate in tourism
development. The aim of this paper is to contribute to understanding the roles of the community
in tourism development by examining the attitudes of the community in the City of Split. The
findings have proven that the local population wants to be involved in shaping tourism policy,
and policymakers need to develop solutions that meet the needs and desires of stakeholders
and address their concerns. They also want to be part of tourism development decisions to
ensure that their needs are accepted.
Tourism is considered one of the world's largest and fastest-growing sectors. Its high growth
rates and development bring significant amounts of foreign exchange earnings, infrastructure
development, job creation, regional development, economic multiplier effects, and the
introduction of new managerial and educational experiences actively influencing various
economic sectors, positively affecting the social and economic development of the Republic of
Croatia. However, the tourism industry also generates a range of other negative socio-economic
and cultural impacts on the local community. Therefore, the study examines the main social
and economic impacts on the local community through tourism development in the area. This
research paper mainly aims to identify social and economic impacts on the local environment
and their perception of tourism development. The methodology was adapted in the paper, and
data were collected through a questionnaire survey. It was concluded in the paper that the local
environment has developed positive attitudes towards tourism development, and tourism is
accepted as a source of income through active and passive participation. As usual, the tourism
industry has generated both positive and negative impacts in the area. However, negative
impacts are minimal compared to positive ones. It is suggested, in conclusion, that there should
be more awareness and education programs in the local environment to achieve positive
benefits and minimize the negative impacts of tourism.
ABSTRACT
The attitude of tourists towards hosts is a insufficiently explored topic in academic literature.
Therefore, this paper utilizes the theory of social exchange, tourism development cycles, and
the segmentation concept (traditionally used to explain residents' attitudes towards
tourism/tourists) as aids in understanding tourists' attitudes towards hosts.
Tourism, as a concept, is defined through numerous definitions, all based on the fact that it is
an extremely complex social phenomenon. Each type of tourism is characterized by a specific
purpose and is unique to regions where the desired objective can be achieved through the
existence of specific facilities. Tourist areas are characterized by a certain type of travel or the
convergence of certain types, which can vary over time.
Split, as a Mediterranean city, is abundant in various cultural, geographical, and other factors.
Tourism is one of the most dynamic economic sectors globally, as well as in Croatia, especially
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in Split. New trends and emerging needs in tourism initiate and result in numerous new
activities, projects, and content.
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INTRODUCTION
The Mediterranean region has been one of the most prominent tourist regions in the world for
many years, accounting for approximately more than one-third of total international tourism
revenue and half of international tourist arrivals worldwide. The Mediterranean area is the
leading tourist region globally, contributing about one-third of the world's tourism revenue and
half of the world's tourist arrivals. The aim of this paper is to analytically and empirically
demonstrate how tourism can impact relations with the local population, using the example of
the city of Split. The results confirm the hypotheses regarding changes in residents based on
tourism, providing policymakers with confirmation that it is justified to encourage the creation
of conditions to enhance competitiveness in tourism, essentially promoting economic growth.
Concrete examples of existing solutions from the Mediterranean city and strong tourist
destination, Split, have already proven this. Tourism, as a concept, is defined through numerous
definitions, all based on the fact that it is an extremely complex social phenomenon. The
research problem of this research paper is the phenomenon of tourism and its impact on the
environment, referring to the influence that tourism has on the social, cultural, and biological
heritage of a locality. Tourism encompasses the activities of individuals who travel and stay in
places outside their usual environment for no more than one consecutive year for leisure,
business, and other purposes not related to paid activities in the place visited. Every person
spending at least one night in accommodation is considered a tourist, regardless of age and
gender.
The premise that society and culture relate to lifestyle and behavior is well-known. The
question is, how is this connected to tourism? For example, the way local residents and tourists
live, how they relate to each other, their customs, and characters. Society and culture
significantly influence how they behave towards each other, what makes them comfortable,
how they like to be treated, how they interact, and what they respect and value.
"The contact of two different identities, tourists and hosts, brings numerous changes both in
the local community and in the tourist understanding of the destination. Stereotyping,
questioning authenticity, and inventing tradition are common occurrences. The dangers these
phenomena pose, if not recognized and removed, can have an extremely negative impact on
various aspects of tourism business (economic, social, cultural, psychological)."
It is assumed that tourism should operate in partnership with the local population, ultimately
providing employment and economic benefits for the community, as well as helping to value
the cultural and natural heritage of the destination. Societies and cultures are diverse, and that's
what makes tourism exciting, as it is an opportunity to see how other people live their lives and
relate to their environment. Many tourist destinations often embrace tourism without
understanding the impact it can have on the culture and society of the destination. The social
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and cultural impacts of tourism can result in changes in behavior patterns, lifestyles, and the
quality of life for tourists or the local population. Tourism, like all business ventures, can have
an impact on communities and can be positive or negative, sometimes both. Areas where
tourism can significantly impact the community and its residents include: quality of life,
employment and business opportunities in facilities and amenities, development of
infrastructure, e.g., hotels, resorts, population growth. Authorities often encourage tourism
development regardless of its effects on the local population.
Traditional measures of residents' attitudes do not include this evaluative component, limiting
the understanding of residents' attitudes. A stakeholder perspective is used to show how
permanent residents and owners of other houses evaluate the importance of different items
related to tourism, including economic, sociocultural, and environmental impacts. In
combination with traditional measures of residents' attitudes, this approach can improve the
management of tourist destinations. The importance measure is confirmed by applying tests of
convergent and discriminant validity and analyzing affirmative factors. The importance
measure study, conducted in a Swedish coastal resort, reproduces differences in attitudes
between permanent residents and owners of other houses identified in previous studies.
However, it also emphasizes the directing effect of local resident involvement, changing the
relationship between the type of stay and the importance of items that impact tourism. The
conclusion is that local involvement, rather than the type of residence, has greater significance
when discussing the attitudes of different residential groups.
This study conducted a survey that shows that the impacts (both positive and negative)
expressed by the respondents align with the majority identified in the literature. Many
researchers have concluded that local communities generally support further tourism
development, which also supports this work. However, this study also shows that there is a
desire in Split for well-managed and limited tourism growth, as some parts of the city already
show negative effects of tourism. Another conclusion that can be drawn from the results of this
study is that tourism has changed the structure of the Split population, affecting residents'
attitudes. Overall, Split residents are aware of the positive impacts of tourism, especially in
terms of the economic aspect and opportunities (employment) that this sector brings.
Tourism in Split has experienced a dramatic increase in recent decades. As a result, conflicts
may arise between tourists, tourist organizations, and residents. The recent rise of the so-called
sharing economy has added an additional dimension to the discussion. The ability to assess and
resolve such conflicts is important for how tourism in Split can develop in the future. This
paper attempts to contribute to understanding the mechanisms behind the nature of these
conflicts and ways to manage and control them. Additionally, it shows how data generated on
social media (applications) can be used for these purposes. In addition to theoretical
considerations of the importance of tourism in the city of Split, this research paper will explore
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the attitudes of the local population of Split, and other effects that tourism leaves on their
quality of life. Effects include: increased living standards due to increased production of goods
and services, increased prices of housing for purchase and rent, lack of jobs not solely focused
on tourism, effects on ecology, noise, pollution, entertainment and cultural content, and other
effects that will be considered during the presentation of the paper. Based on the obtained
results, the perception of the impact of tourism on the quality of life of the local population will
be examined in relation to the mentioned effects. The development of tourism is always linked
to a specific area whose characteristics and resources (natural and socio-cultural) must have
elements of attractiveness for tourists. Split was mostly a transit city for tourists vacationing
on the coast in the earlier period. Tourists would arrive in Split through various means of
transportation, such as planes, to Split Airport, or by their own vehicles and buses, and then
move on to the islands or other destinations via Split. The city of Split as a tourist destination
is inextricably linked to tourism, which is by its nature two-way. In recent years, Split has truly
become one of the unavoidable global tourist destinations. "Tourism encompasses all activities
of persons traveling and staying in places outside their usual environment for no longer than
one year for the purpose of leisure, business, and other reasons." According to data from the
Tourist Board of the City of Split, in the first six months of that year, there were 327,865
arrivals, which is 12 percent more than in the same period in 2018, and 853,646 overnight
stays, or 15 percent more than in the same period last year, in line with the strategic goals of
increasing tourist traffic in the preseason. Bed occupancy in the first half of the year increased
by seven percent. Numerous authors have investigated the attitudes of the local population
regarding the impacts of tourism, and have concluded that these impacts can be divided into
three main categories: economic, ecological, and social or sociocultural. As Zaidan notes, the
impact of tourism on the local population, according to its perceived effect, can be divided into
three key categories of costs and benefits: economic, environmental, and social. Tourism
changes the environment in which it develops and brings about changes in the local population.
Changes occurring in the local population due to tourism development happen continuously
and can be both positive (employment opportunities, improved infrastructure, etc.) and
negative (traffic congestion, crime, exceeding carrying capacity, etc.). Different relationships
are formed between tourists and local residents in the destination, resulting from different
participation in everyday activities. The goal of the paper is to identify tourist needs and their
impact on the local population in the conditions of globalization. Tourists come with their
culture and intentions to learn about local traditions, language, and cultural-historical heritage.
Meanwhile, the local population lives in an environment designed to meet the needs of tourists.
That is, it is about the extent to which tourists influence changes in the local environment. This
is a phenomenon of great economic importance, but also a complex sociological phenomenon
that has a significant impact on socialization and the development of interpersonal
relationships. Tourism causes far-reaching consequences on the economy, social and social
characteristics of the destination, cultural content in the function of the tourist destination offer,
guided policy, and on the environment. Tourism represents one of the most profitable and
important economic sectors in many countries worldwide, including the Republic of Croatia.
The term "tourism" first appeared in the Oxford English Dictionary in 1811, where, after
explaining the etymology of the word, it is concluded that it is about circular travel. Other
interpretations stem from the French word "tour" (bell tower, tower), which denotes circularly
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constructed buildings. Only when the adjective "grand" was added to the word "tour" a few
centuries ago did this word acquire the characteristics of today's tourism. The grand tour was a
term associated with the travels of younger members of the upper class in England for the
purpose of enriching the mind and strengthening the body so that they could gain experience
about the real world around them and then better perform their social functions.
In the course of its development, tourism has undergone numerous changes in appearance,
structure, function, space, qualitative, and quantitative form. Although it inevitably left both
positive and negative but profound traces in the social, economic, and spatial segments, its
significance, role, and contribution to the development of modern society through encounters,
acquaintance, understanding, connecting, cooperation, and tolerance are immensely
significant.
Tourism, primarily, boils down to providing services in a specific environment. Besides

changes in the demographic structure of the population, shifts in the character and structure of
tourist demand are influenced by changes in value systems. The contemporary expansion of
tourism has triggered many alterations, not only in theoretical debates, tourist movements, and
tourism policies but also in the vocabulary and terminology of tourism, the social community,
and the social, economic, cultural, and political issues concerning the local population, tourists,
and their mutual relations. Long-term and sustainable tourism is not possible without involving
the local population in the tourist development of the local community. However, it is crucial
not to allow tourism to govern the destination; rather, the destination must manage tourism.
Furthermore, this research paper explores the possibilities of general tourist education for the
local population within the framework of education and adult education, particularly in tourist
underdeveloped or insufficiently developed potential tourist destinations.
Accepting new knowledge acquired from developed countries worldwide, the abilities, work
habits, and other important factors need to change previously acquired work habits, thinking,
and behavior. In some countries with a tourism-oriented development, general tourist education
for the local population is intentionally encouraged. It is essential to educate employees in the
tourist community, public sector workers, association members, service providers, and
programs to raise awareness of the importance of tourism in the destination.
Tourist education for the local population represents a more detailed tourist derivative of the
previous formulation, referring to the permanent residents of a specific tourist destination who
are not professionally connected to the tourism sector, nor do they possess formal professional
tourism education. Indicators to observe are the local population and its characteristics (age,
gender, education, employment, nationality, religion, etc.), workforce availability, the seasonal
nature of jobs, cultural identity, the relationship between the number of local residents and their
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guests, spatial-ecological conditions (tourists, people in vacation homes, relatives and friends),
visitor satisfaction level, etc.
Intense competition in the international tourist market and an increasing number of participants
with developed and quality offerings necessitate a broader choice of services. Tourist service
providers are expected to deliver high-quality overall services. A growing number of tourists
seek a more meaningful vacation, shaping their leisure according to their desires. They demand
to be intrigued, attracted, and retained by the offerings. Natural beauty is no longer a sufficient
factor of attractiveness, especially for more demanding market segments that lean towards
more meaningful and active leisure. Influenced by the increase in their own standard of living,
many are willing to "sacrifice" natural resources, the devastation of cultural monuments, and
are open to changes in the social environment, etc. This willingness to sacrifice is reflected in
the readiness for loss, thus in a certain correlation with expected benefits. While these two
factors are balanced, problems generally do not arise. However, when there is an imbalance
among them, for example, due to an excessive number of tourists, the need for different actions
arises, and it is decided that the benefits no longer justify the negative impacts that occur.
1.1. RESEARCH SUBJECT
Understanding the attitudes of local residents towards tourism development is a key factor for
the success and sustainability of any form of tourism development. Numerous studies have
examined the attitudes of residents and the factors likely to influence these attitudes. Most of
these studies suggest that residents have a positive attitude because they see tourism as a means
of economic development. This paper is inspired by a modified version of the study of
residents' attitudes towards the model proposed by Gursoy and Rutherford (2004) and further
improved the model by examining the attitudes of Split citizens towards two different types of
tourism development, mass tourism and alternative tourism, in another competitive country.
The results of this paper have both theoretical and practical implications. However, residents'
perceptions of impacts and their level of support tend to change as the destination moves from
one phase of its life cycle to the next, as suggested by Butler's cycle of evolution. Support from
residents decreases as tourism development progresses, and destinations change in later stages
of development. At this stage, traditional economic assessment and research tools may not be
sufficient to assess residents' perceptions of tourism impacts and their level of support because
positive effects need to be considered, as well as negative socio-cultural impacts in addition to
economic and environmental impacts.
Successful tourism is based on a good relationship between tourists and residents. To date, the
relationship between residents and tourists has been understood through two main approaches.
Studies emphasizing the industrial aspects of tourism consider tourists as customers who bring
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economic benefits to the destination, and residents as users incurring costs from tourists during
their travels. Other studies that view the resident-tourist relationship in terms of host-guest
relationships assume that residents, as hosts, should treat their guests with respect, neglecting
the industrial aspects of tourism. These two approaches have reinforced a distorted and
incomplete understanding of the relationship between residents and tourists, neglecting the
importance of reciprocity and the shared purpose of exchange in this relationship. Tourism
development in a destination always brings about significant changes and specific effects.
These changes are directly influenced by the local population, so tourism planners must take
them into account, even involving residents in the development process. The success of tourism
depends on the approval, support, and hospitality of residents. This paper focuses on
determining the state and behavior of residents, especially how attitude affects tourists, and, on
the other hand, how the attitude of tourists affects the actions of residents. The aim is to analyze
whether and how tourist impacts are perceived and how they affect the attitude of residents in
Split.
Tourism is one of the most important drivers of economic development worldwide. Tourism is
a multidimensional social phenomenon. Over the past twenty years, tourism has evolved into
a significant factor in the context of sustainability, both positively and negatively.
Characteristics of modern tourists, such as high education, habits, and an active lifestyle, are
the basis for demanding new content in tourism offerings. Consequently, the tourism market is
increasingly divided into specialized forms, such as sports, nautical, religious, rural, congress,
health, adventure, Robinson, and cultural tourism. Tourism represents one of the most
important economic activities in the Split-Dalmatia County (SDC), primarily conditioned by a
quality and extremely diversified tourism resource base (mild Mediterranean climate, long and
indented coast, rich cultural-historical heritage, etc.), but also by a long tourism tradition. The
issue of sustainable growth and development is increasingly in the focus of various publics. In
recent years, Split has indeed become one of the unavoidable global tourist destinations. The
growth in the number of tourist arrivals and nights, the increase in tourist spending, the growing
interest in traveling to the SDC in major European and even global emitting markets, show that
the efforts invested in tourism development were justified.
Local residents can represent the main potential on which tourism depends, and their impact
on a specific place at a specific time can be a crucial factor in the development of tourism itself.
Tourism economy and social sciences are based on a multidisciplinary social-scientific
approach to understanding the importance and role of tourism in contemporary society. Today,
tourism represents a very complex social and economic phenomenon, manifested in a large
number of types and forms, and has multiple social and economic functions. Tourism
undoubtedly leads to changes, primarily social stratification. In this context, the economic
aspect primarily represents money in relation to social stratification, in relation to origin or
reputation. This aspect of tourism also contributes to the increase of social inequalities, as it
creates new social stratification, especially within the middle class. It is considered that the
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first studies were fundamental assumptions that the community in the destination goes through
different stages of tourism development, so that the reactions of the local population completely
change, from euphoria to depression.
The tradition of tourism in Dalmatia is more than a century old, and favorable natural-
geographical and socio-geographical factors provide a framework for future tourism
development. Croatia is now a tourist country, predominantly focused on sea-related tourism,
so tourism unquestionably represents one of the main pillars of the development of the
economy of the City of Split. Local residents, with any spontaneous general tourist self-
education, represent a specific tourist potential of the corresponding destination, which, in well-
thought-out destination management, can be used as an important subject of its development
and management. Some scientific research has been put in the context of socio-economic
impacts after it was learned that the impact of tourism on the local community is both positive
and negative and that this impact needs to be managed. However, there is very limited empirical
evidence that is specifically focused on how local residents actually or potentially mimic
tourists.
In principle, social sciences apply relevant theories to understand tourism and its impact on
societal changes. Each chapter deals with a specific socio-scientific discipline, and the research
paper includes extensive cross-inclusion between chapters to highlight the multidisciplinary
nature of the impact of tourism effects on socio-economic changes in the City of Split. The key
theme of the paper is how the economic and political structures of society affect the
manifestation of tourism at the local level. It then considers a series of contemporary societal
issues that go beyond tourism, including citizenship and social exclusion; tourism as a form of
trade; consumerism; social, cultural, and environmental consequences of tourism; feminism
and ethics. In addition to the broader understanding of the role of tourism in society, the aim
of the paper is to present reflections on changes in the society in which the citizens of Split
live. In the integral study of tourism, especially when it comes to its sociological aspects, its
socio-cultural dimension comes to the fore. According to the classification of the World
Tourism Organization (UNWTO), tourism resources are divided into: natural tourism
resources, cultural-historical heritage in tourism, climatic conditions, infrastructure and tourist
services, and content.
The foundation of this paper relates to the mutual interaction between local residents and tourist
guests, many phenomena arising from this sociological phenomenon, and possible
consequences that arise, as well as what the future holds for these relationships. In this case, it
concerns the mutual interaction of local residents towards tourist guests, or how individuals
perceive a group of guests and how their worldviews, attitudes, and perceptions influence their
relationship with them. A characteristic of tourist demand is the fact that it influences tourism
supply more than the other way around. This indicates that it is difficult today to create demand
and generate users of a specific offering through supply; instead, the opinions and attitudes of
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tourists should be examined first, what interests them, what would satisfy their needs, i.e., what
service or product could meet their desires (needs), and accordingly create a suitable offer
based on their requirements. The impact of tourism on the lives of individuals and societies
involved in this process is one of the most important subjects of research on socio-economic
changes under the influence of tourism. The development of a tourist destination is influenced
by several interest groups, who have a direct interest, are involved, invest in the destination,
and have the desire to benefit from tourism activities in the long term. The development of a
tourist destination involves satisfying the needs and interests of all stakeholders who, directly
or indirectly, participate in strategic planning and destination management. The interaction
between tourists and the local population in the Split area aims to establish understanding and
goodwill among them, representing a significant social benefit of tourism. Local residents may
resist tourism development if they do not find any benefit for themselves, and thus such
resources may remain lost for tourism use forever.
As an economic phenomenon, tourism consists of a large number of different and

interconnected activities of economic and non-economic significance, directly or indirectly
related to mass tourist migrations, by satisfying specific needs of tourists during their travels
and temporary stays away from their permanent residence.
Key changes in the Republic of Croatia are the result of the early stages of the industrial
revolution, during which there was a movement of the workforce from rural areas to urban
centers and the development of a new social structure, including a new entrepreneurial class
called the "bourgeoisie" and an industrial working class or "proletariat." As a prototype of what
other industrializing countries were supposed to follow in various degrees of similarity, Great
Britain is considered. This paper will explore the attitudes of the local population, specifically
the young population in the city of Split, regarding the effects that tourism has on their quality
of life. The effects include: an increase in the standard of living due to increased products and
services, rising prices of housing for purchase and rent, a lack of jobs not solely oriented
towards tourism, ecological effects, noise, pollution, entertainment and cultural amenities, and
other effects that will be considered throughout the paper. Based on the obtained results, the
perception of the impact of tourism on the quality of life of the local population will be
examined with respect to the mentioned effects.
For example, in England, the year 1851 is taken as a marker of central changes in British
society; Clarke and Critcher comment that "this was the first time that the majority of the
population lived in urban areas, and 30 percent of the workforce is now employed in industry,
with 20 percent working in agriculture." Accordingly, for comparison, Split had a relatively
slow increase in the number of inhabitants until World War II. However, accelerated
industrialization and the development of tertiary activities after World War II created the need
for a large workforce, which was the occasion for intensive migration, especially in the 1960s
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and 1970s. Split, the largest city in Dalmatia, has been an immigration area for decades. In the
period after World War II, intensive migration and natural increase were the reasons for the
increase in the number of inhabitants. Immigration influenced the increase in the number of
inhabitants, as well as the gender-age, educational, economic structure of the population, and
the structure of households. The development strategy of the City of Split also contributes to
cultural tourism, business tourism, ethno-gastronomic and sports-recreational tourism. This is
significant for the research addressed in this research paper: "Migration of the population
affects the size of the total population, its spatial distribution, natality, mortality, and structures
of the population (demographic, socio-economic, national, etc.)." Year after year, Split has
become the subject of visitation by an increasing number of tourists, and this city has definitely
become a tourist "hotspot" with 2.8 million tourist overnight stays annually.
Local residents represent a significant interest factor, and their satisfaction or dissatisfaction
with tourism development and participation in it will depend on the quality of the tourist
destination and the tourism product. Tourism affects local residents in both positive and
negative effects. As noted, the impact of tourism on local residents is twofold. On the one hand,
it stimulates some positive characteristics of local behavior (promotes self-awareness, pride,
self-confidence, and solidarity among the population), while, on the other hand, it causes
dissatisfaction due to the presence of tourists (leading to feelings of boredom, opposition, and
even hatred towards tourists).
When planning long-term activities in a destination, special attention should be paid to

incorporating the opinions and attitudes of the local population. If residents do not agree with
the vision of destination development at the political level, such development cannot represent
effective destination growth in the long run. Tourism can stimulate investments in the
destination by attracting investors who recognize business opportunities due to the increased
number of people staying in the destination. This leads to the construction of accommodation
and hospitality facilities. Also, due to increased cash flow, investors engage in new projects,
resulting in a growth in investments. If residents share similar views and want to take action
regarding tourism, whether positive or negative, their collaboration can greatly contribute to
mutual satisfaction. Improving infrastructure due to the impact of tourism can encourage the
renovation and restructuring of specific destination facilities in poor condition, ensuring their
renewal for optimal use. Excessive dependence on tourism can cause various issues, including
environmental, cultural, and social problems, strongly affecting the local population. This
requires a new approach to destination management, systematically adapting the tourist offer
to user needs and desires while respecting local values and contemporary tourism trends.
Tourists arriving can bring aspects of their culture and customs, which can be beneficial for the
local population. This allows them to gain insight into other cultures and customs, how they
are portrayed, and the pride associated with them. The local population is the one delivering
the tourist service, making the positive attitude of the local population towards tourism
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development crucial for improving the quality of life in the city of Split. Developing
relationships between tourism and the local population can be enhanced by researching the
attitudes of the local population towards tourism development and its effects. This issue is often
the focus of tourism research because the positive and negative consequences of its
development most significantly impact the local population.
Impact on Local Standard of Living
Successful tourism development in Split requires the establishment of a responsible and

sustainable tourism management mechanism that benefits both tourists and the local
population. Each local entity must adapt to tourist needs by creating products/services that best
satisfy tourist needs while allowing the local entity to achieve its goals and profit. The increase
in the standard of living and personal consumption can be a result of tourism. Tourism
significantly enriches the social structure of the local population. The fundamental relationship
between hosts and guests establishes a dialogue of cultural and national identities, bringing
about numerous changes in both the local community and tourism understanding.
Changes Induced by Tourism
Changes in moral norms of the local population, language, religion, and more are attributed to
tourism. Cultural changes provoked by tourism are the most challenging elements to quantify,
especially since culture itself undergoes continuous evolution. Tourism has become an integral
part of global society and should be observed not only as a matter of individual preferences but
also as a type of behavior reflecting the societies from which tourists come and which influence
the society they visit.
Tourism and Society
Tourism is a social system with various independent interest groups. The relationship between
tourism and society is not entirely regulated, as our society focuses on the development of the
business and institutional sectors in tourism rather than the social reception of tourism.
Contemporary tourism is marked by various socio-economic trends that significantly influence
the pace and quality of tourism development in destinations. Tourism affects the local
community that is the subject of attractions, making it a matter of interest for key groups in
community-based tourism planning.
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Regarding the local community, a redirection of part of the population under the influence of
tourists is noticeable. Due to this possibility, the local population has no reason to seek
employment elsewhere, especially the younger generations. Simultaneously, tourism attracts
external labor, especially concerning vacant positions and from other economic sectors such as
agriculture. Tourism can also have a significant impact on labor policy, especially in terms of
gender. Tourism has provided many women with employment opportunities in various tourist
sectors such as services, hotels, and souvenir production.
Social problems arising from the emergence of tourism as a mass phenomenon have prompted
the development of a specific discipline within sociology to approach these issues from a
sociological perspective. Research has been framed within the socioeconomic impacts,
acknowledging that the influence of tourism on the local community can be both positive and
negative, requiring effective management. In this context, the regulation of tourism policies,
particularly in coastal Croatia, becomes crucial. Just regulation involves urban planning issues
and the development of policies related to maritime assets in coastal Croatia. The sociology of
tourism focuses on studying tourism as a social phenomenon, including the motivation and
behavior of tourists and the impacts it has on destinations and their people. Anthropology of
tourism, on the other hand, concentrates on individual experiences in tourism, while sociology
acts upon them. The challenges of mass tourism, a dominant form of tourism in Croatia,
especially in Split, have led to various negative societal consequences. These include
uniformity in the tourist offer, a decline in quality, loss of distinct identity, environmental
degradation, infrastructure problems, and the local population's attitude towards tourists.
Unplanned tourism development based solely on the allure of "sun and sea" is deemed
unacceptable. The idea that tourism can sustain the entire economy is flawed. Therefore, a more
fruitful approach involves studying the socio-cultural factors of tourism, as indicated by the
proposed research paper. Tourism's development is a compelling and contemporary topic for
sociological studies and analyses, aiming to apply these findings to the city of Split.
Sociological research into tourism seeks to comprehend the interaction between tourists and
hosts within the context of their mutual influence on the overall quality of the tourist
experience. The second part of the research paper addresses the problem and subject of
research, defines research questions and objectives, presents research methods, and contributes
to the exploration of the research topic. The purpose is to understand the interaction between
tourists and hosts regarding their mutual impact on the overall quality of the tourist experience.
The third part classifies various types and forms of tourism based on different travel
motivations or purposes. The fourth part provides an overview and analysis of the tourist
potential of the city of Split, highlighting cultural and artistic landmarks such as Diocletian's
Palace, Split Cathedral, Croatian National Theatre, Meštrović Gallery, and other museums. The
fifth part, based on theoretical and empirical research, answers research questions and proposes
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possible future developments in the relationship between the impact of tourists and changes in
local citizens. In the concluding remarks, based on the research results, it is affirmed that the
local community has developed and nurtures positive attitudes toward tourism. Finally, the
research paper lists the literature used, tables, graphs, and images illustrating the relevant
content.
1.2. AIM AND PURPOSE OF THE RESEARCH
The fundamental goal of the research is to understand the role of tourism and its impact on
society. However, an equally important objective is to prompt the researcher to contemplate
the society in which they live. To explore this question, this paper suggests examining residents'
perceptions of tourists, their relationship with them, and how, in turn, it influences residents'
intention to attract tourists to the market or in some other way draw specific tourist markets
into their tourism community. Specifically, borrowing the concept of the relationship between
tourists and hosts from business literature and interaction relations from social psychology
literature, this paper is based on the concept of tourism attractiveness, satisfaction, and
commitment of residents. It then examines the impact of tourism attractiveness on residents'
satisfaction to determine whether greater tourist attractiveness leads to greater resident
satisfaction.
Those responsible for tourist destinations face the need to create a tourism development model
compatible with the essence of the local community they manage. These models must be
sustainable, both environmentally and socially, and must also become drivers of the local
economy. However, tourists also create negative impacts on the locality, which, when residents
notice them, can lead to visitor rejection. Therefore, it is necessary to improve tourism
management. Hence, it is important to know residents' perception of the impacts of tourism.
Additionally, measuring the effects on their satisfaction with destination public administration
can be of great benefit. This research falls into such a research line as it proposes a model for
measuring their impact and satisfaction.
Social sciences place tourism in the broader context of issues society faces, and this research
paper fundamentally provides users with an analytical basis for interpreting what is happening
around that society, and also provides a foundation in some larger social issues faced by the
residents of Split at the beginning of the twenty-first century. Each social science discipline
has its interests and its role to be an authoritative science that explores a specific social issue
or phenomenon. In this context, promoting a stimulating and constructive discussion on how
social sciences should be used to make sense of tourism is crucial. To date, perhaps with the
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exception of economics, the application of social sciences to tourism research has been
relatively weak compared to other areas of social research. This is partly because the growth
of tourism as an activity at the global level is a relatively recent phenomenon, but also because
tourism is often seen as an unserious field of study not suitable for mature researchers. This
research paper also aims to help change such a viewpoint and encourage future researchers to
think about possible paths of research on the impact of social and other sciences on tourism in
a local destination and its residents.
However, the increasing mobility and greater availability of tourist attractions lead to tourism
becoming an integral part of modern leisure. The true nature of tourism and its consequences
are such that it leads to conflicts related to land exploitation and changes in the economic and
social characteristics of these areas. Therefore, any tourism policy must be based on the
principles of sustainable development, which implies the ecological aspect of tourism and
imposes concern for future generations, which have the right to the same resources and natural
beauty. The tourism sector is exposed to various influences in this process. Changes in
ownership structure occur according to a model that generates negative "cases" rather than
positive examples that can guide this process. Just as a comprehensive understanding and
foundation of this extremely complex phenomenon require an interdisciplinary approach,
connecting a range of social sciences, sociology is of particular importance. Studying available
sociological literature generally leads to the conclusion that the development of tourism
inevitably leads to various consequences in tourist destinations. In this sense, the research paper
primarily deals with the impact of tourism, especially on the socio-economic changes of the
population of Split. The tourist is a fundamental factor in the chain of interactions in the system,
so the basic purpose of the tourism potential is to meet the needs of tourists by applying the
principles of sustainable development of natural and cultural heritage and preserving the
authentic way of life of the local community. The question of tourism for the economic
development of the city of Split is also significant, that is, the impact of tourism on natural
habitats and biodiversity, the degradation of natural resources by uncontrolled growth and
development of tourism.
The goal of the research paper is to demonstrate how tourism and tourist offerings change
people in terms of changes in contemporary society. Regarding the impact of tourism on the
quality of life, it is observed that tourism, as a seasonal activity, affects the organization of
traditional characteristics of society. Cohen defines this interaction between tourists and
residents as a series of encounters between visitors, who act and move to entertain themselves,
and residents, who are relatively stable and have the task of satisfying the desires and needs of
tourists. It can be concluded that tourism has various consequences influenced by a large
number of factors, especially the community's ability and readiness to accept changes. For the
fundamental concept of research in the proposed research paper, it can be said that it is a social,
complex, and layered system of symbolic and concrete relationships with other beings,
institutions, nature, i.e., concrete and abstract reality on an equally concrete and abstract level.
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The relationship between tourist satisfaction and local residents is tested through the test of
whether residents or tourists are more satisfied. It encourages the favorable intentions of local
residents to engage in a future relationship with tourists. In addition, the paper explores the
social factors influencing the relationship between residents and tourists to understand
residents' perceptions of the current contextual situation faced by the destination of Split and
how this perception affects the relationship between residents and tourists. The fact is that it is
an activity where, to survive, concrete strategies for attracting tourists must be applied, even at
the expense of local competitors. For some countries, tourism is one of the few options for
economic survival. For others, tourism is a combination of positive and negative factors (the
most common situation). Thus, there are communities where tourism has created a large
number of external negative effects for which the population was not prepared. The research
problem is based on the sample of the local population's research on the development of tourism
in the destination and its impact on changes in the overall destination. In this regard, efforts are
highlighted to direct these attitudes towards positive trends, and sustainable and responsible
tourism management is encouraged to contribute to the construction and improvement of the
development of the city of Split, or the local population.
1.3. RESEARCH HYPOTHESES
Tourism should have an economic and socio-cultural impact related to local society and
changes in their general, existential, and developmental values.
Auxiliary Hypotheses:
1. The content of the tourist offer can significantly influence the ways and contents in
which tourists affect the local population.
2. Tourism can bring benefits, such as economic resources or support for the protection
of certain cultural-historical values. Natural landmarks are often the main reason for
tourist visits.
3. Since tourists who often visit historical sites in different destinations also emphasize
these places more and provide a chance for the protection of historical buildings and
monuments.
4. Tourism provides opportunities for local employment, which is not only a positive
social and economic factor.
1.4. RESEARCH METHODS
The methods used in the research paper are one of the most important parts used to assess the
overall quality of the work. In addition, the research methods subsection should provide enough
information for other users to replicate the experiments. The research problem, besides being
multidisciplinary, is also interdisciplinary, as the chosen approach is considered necessary to
achieve a more comprehensive understanding of tourism. This is a view advocated by some
authors who comment, "No single discipline can simplify, treat, or understand tourism; it can
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only be studied if disciplinary boundaries are crossed, and a multidisciplinary perspective is
sought and formed." After that, although the chapter titles of this work relate to individual
disciplines and areas of study in social sciences, they should not be seen as rigid or intolerant.
Different social sciences can argue that they are the correct research approach to understanding
tourism. However, accepting such a narrow and rigid approach denies the richness that different
disciplines can bring to a broader and more complete understanding of tourism.
The requirement for a multidisciplinary approach to tourism is further emphasized by the

difficulty of trying to categorize the field of tourism research into unique social science
disciplines. For example, when considering the tourism industry dealing with the sale of daily
creams in the culture of consumerism, and tourists filling motivations and fantasies through
tourism participation, which social sciences such as psychology, sociology, or anthropology
are the best or correct disciplinary approach to understanding this? In reality, each can enhance
our understanding of tourism through its specific theories and methodological approaches.
Sociology studies social life, human groups, and society, and the field of study relates to human
behavior as social beings.
Each social science discipline has its interests and its share to be an authoritative social science
that explores a specific social issue or phenomenon. Consequently, this research paper is
expected to be open to criticism from different disciplinary perspectives. However, this should
be welcomed in the context of promoting a stimulating and constructive debate on how social
sciences should be used to make sense of tourism. Local government has long relied on a
limited set of statistical data, such as the number of tourist arrivals, employment surveys, and
tourist satisfaction assessments when monitoring tourism in its destinations. Based on these
statistical data, it is impossible to gain a complete understanding of the impact of tourism on
the local population. Collecting data on a range of issues important for assessing the impact of
tourism on the local population and the environment will enable a precise picture of the impact
of tourism on the local population. The impact of tourism on each destination will be
determined by very different factors: the volume of tourist arrivals, the structure of the local
population, types of tourist activities, socio-cultural differences between hosts and tourists, and
the sensitivity of the local environment. It is known that tourism offers whose internal
organization better adapts to the demands of tourists achieve better results; this can also be
applied to providers offering services, in this case, the tourist product as a destination product.
The different lifestyle of tourists, especially in less developed environments, affects the
weakening of traditional morals, as well as the acceptance of norms that do not correspond to
the environment or the socio-political system. In the attempt to create this research paper and
prove the hypotheses set out in the work, scientific research methods suitable for processing
the research subject and proving the hypotheses were used. The fact that, in the effort to
understand the role of tourism in society, the role of scientific disciplines that have special
usefulness in this task is interdisciplinary methodology. Various methods and research
approaches were used in the creation of this paper, both in its theoretical and empirical parts,
to achieve the goal and purpose of the research and collect all relevant information.
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Basic methods used in the research:
• Method of collecting secondary data: collecting all relevant sources and professional
literature related to the subject and problem of the research paper.
• Descriptive method - the procedure of simple description of facts and confirmation of
relationships and connections in the research subject and applied research processes.
The main way of collecting data in this initial phase of research is observation.
• Internal research method – all available secondary data sources will be processed
(scientific and professional literature, articles published on the topic of tourism in
Croatia, laws, regulations, rules, and regulations, statistical indicators and
announcements, professional journals in the field of sociology and tourism, computer
database, and the internet).
• Method of analysis and synthesis - the method of analysis involves breaking down
complex concepts, judgments, claims, and conclusions into simpler component parts
and studying them in relation to other parts. The synthesis method involves the
scientific research process and explaining reality by synthesizing simpler claims into
more complex ones.
• Comparison method - the procedure of comparing the same or similar concepts and
determining similarities in their behavior and intensity, as well as determining the
differences that result from it.
• Induction and deduction method. Deduction will be used as reasoning from the general
to the specific, while induction is a method that will be applied for inferences from the
specific to the general.
In addition to the mentioned methods, the research will also use the survey method, through
which primary data and information, attitudes, and opinions about the research subject will be
collected. For the purpose of empirical research, the Likert scale was used, which is the most
commonly applied scale for measuring attitudes. Empirical research is based on the application
of the Likert scale, which is a psychometric scale used to determine the degree of agreement
or disagreement of respondents with a certain statement "their attitude toward a statement" on
a continuum from absolutely positive to absolutely negative attitude toward the research object.
It is applied in research that uses the survey method "or structured interview" to collect data.
Each statement is accompanied by five possible answers. They express the degree of agreement
or disagreement with the attitude expressed in the statement (completely agree, agree,
indecision - neutrality, disagree, completely disagree). Numerical values (points) are assigned
to individual response categories, and the respondent's attitude is expressed by the sum of
points based on the answers the respondent chose. Because of this, the Likert scale is also called
a summative scale. The higher the sum, the more positive the respondent's attitude toward the
object. This is an interview conducted according to a precisely determined plan. Following this
plan, the interviewer maintains control over the process by systematically collecting all the
necessary information. The advantage of this interview is that it puts all candidates in the same
position: everyone has the opportunity to answer the same questions.
1.5. SIGNIFICANCE OF THE RESEARCH
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Turizam može osigurati radna mjesta i poboljšati ekonomski status domicilnog Tourism can
create jobs and improve the economic status of the local population. Many countries aim to
develop tourism to enrich themselves and enhance the quality of life for their residents.
However, when a large number of visitors go to one place, it is called mass tourism. This can
have both positive and negative impacts on the area. Jelinčić writes that the impact of tourism
on the local population can be twofold:
a) stimulates some positive characteristics of local behavior: promotes self-awareness,

pride, self-confidence, and solidarity among the local population; or
b) causes displeasure due to the presence of tourists: leads to feelings of boredom,
opposition, and even hatred towards tourists.
Tourism, with its continuous development and growth in recent decades, brings about certain
changes in the local population and the environment, the preservation and quality of which
depend significantly on it. The city of Split has exceptional natural resources, as well as a very
attractive historical and cultural heritage. This is the primary reason to explore, in this work,
the attitudes of the local population regarding the economic, social, ecological, and cultural
impacts of tourism development. Today's tourists are experienced consumers who can shape
the structure of tourism needs and tourism in line with global trends, new values, patterns, and
lifestyles.
A tourist destination involves various local components in which social, political, and
economic actors interact and organize, aiming to expand the tourism potential. It is a complex
economic and social system. Tourism creates new jobs and significantly contributes to the
gross national product, attracting substantial capital investments and exports. By assuming the
role of a leader and achieving a significant share in the global gross national product and overall
employment, tourism has also taken on significant responsibility for the economic, social,
cultural, and natural environment. Thus, the concept of sustainable tourism development has
emerged, emphasizing the balance between the social and economic aspects of tourism, the
need to apply sustainability principles in all tourism segments, and general goals such as
poverty reduction. However, negative effects of tourism arise from expansion, aggressiveness,
and degradation, as its fundamental negative characteristics. Tourism also plays a significant
role in the economic system. Trends in the tourism market indicate that destinations with a
highly competitive product that fully satisfies the needs of the increasingly demanding modern
user have a chance to survive in the market. Information and communication technology (ICT)
are the most dynamic drivers of globalization processes and the development of the world
economy, with tourism being one of the most significant and fastest-growing economic sectors.
Establishing a stronger recognition of Split in the tourism market should be based on its
positioning as a regional destination with recognizable tourism. Creating an image and
recognizability involve promoting elements that best reflect Split's advantages and capabilities,
namely preserved nature and a quality tourism workforce. Sustainability principles apply to
environmental, economic, and socio-cultural aspects of tourism development. To ensure the
long-term sustainability of tourism development, a proper balance must be established among
these three factors. Attractive to modern tourists are quality accommodation, a rich offer,
entertainment, various facilities, services, and transportation. It is unrealistic and unfeasible to
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focus on the desires of all segments, as evidenced in the social and societal dimension. What
continental tourism is and how much it can offer in tourism development. What Split can offer
in tourism and how to plan and position its tourist attractions. This work will answer these
premises and explain the importance of a modern and integrated approach in destination
management systems while clarifying the sustainability of tourism through specific forms of
tourism. Additionally, the emphasis in the work is on project planning and project collaboration
as the most important elements of the new destination organization system in tourism. Croatia
is one of the countries that attract visitors more with the features of its natural space and the
richness of its cultural and historical heritage than with the quality, availability, and/or diversity
of newly created tourist offerings.
1.6. OVERVIEW AND EVALUATION OF SOME PREVIOUS RESEARCH
There are some works and studies on the topic of this research paper by both international and
Croatian authors - researchers. Numerous studies have focused on exploring the attitudes and
perceptions of the local population regarding tourism and tourism development. Based on the
works of foreign and domestic authors collected and studied so far, it can be determined that
only some aspects of the theme of this research paper have been partially explored and
presented to the public, and that there is no research in the Republic of Croatia addressing the
issue of the impact of tourism on changes in the local population. Some authors emphasize the
role of the local population in the development of destination tourism, considering the social
environment of the destination visited by tourists as one of the driving factors in tourism
development.
The English scientist Doxey (1975) proposed a measure called the Irritation Index or "Irridex,"
based on the relationship between the change in attitudes of local residents towards tourists and
tourism development in different phases of the life cycle of the domicile destination. Different
phases are primarily a consequence of tourism development in terms of various social,
economic, cultural, sports, accommodation, and environmental impacts on the destination. This
model assumes that resulting circumstances with negative sociocultural impacts can lead to the
manifestation of irritation in the local community. According to Doxey, there are four phases:
euphoria, apathy, irritation, and antagonism, explaining the worsening response of local
residents to tourism development. Euphoria, during the first phase, occurs when the number of
tourists is small, and the local community welcomes tourism. The local population seeks a
positive relationship with tourists by feeling pride and gaining knowledge about the diversity
of social and cultural values. In the second phase of apathy, the number of tourists increases,
and the relationship between tourists and residents becomes a formal procedure. The third
phase is irritation, which causes concern among residents due to the further increase in tourist
arrivals and growing competition for available resources. In the final stage, antagonism, tourists
are held responsible for all the negative consequences in the host community (Doxey, 1975).
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The most obvious conflict arises from the relationship between "tourist-host," likely due to
differences in their situations. While the tourist is on vacation, the host is working. While the
tourist comes with expectations, many hosts are unaware of their expectations.
Although Irridex is currently considered one of the most important types of relationships
between the local population and tourists, existing limitations remain unchanged. The
classification criteria of the Irridex relationship, as a concept, are not the result of empirical
research. According to the literature (Fridgen, 1991), as a unidirectional model, it indicates the
current overall attitudes of local residents. According to the author Cordero, the flaw in the
Doxey model is that it assumes the existence of a degree of homogeneity and a linear, unified
attitude, neglecting the complexity within the host community and the multidimensionality of
tourism impacts. Therefore, it ignores various factors in the relationships among members of
the local community, such as individual economic, social, and cultural characteristics, failing
to clarify differences between individual residents and their community (Zhang). The local
population often comprises non-homogeneous environments composed of multiple
nationalities, with different values and traditions. Furthermore, Irridex does not define
management models and tourism management strategies that could help reduce tourism
pressures on the local community. It is evident that tourism development has economic,
environmental, social, and cultural effects on domicile destinations. Therefore, the irritation
index is a theoretical model that requires constant and contextual empirical testing, as it can
change depending on the tourism area, issues, and even research goals.
Despite this, the model serves as a useful framework for understanding changing resident
attitudes and developmental stages of destinations. Further scientific research and support from
the tourism community, which may not have been present or explicit in previous endeavors,
are needed for its application in tourism research and practice. Future research could shed light
on the model from a comparative and empirical perspective.
Excessive tourism transforms Croatian cities and settlements into theme parks that only come
alive for three months during the summer and are entirely subservient to the needs of tourists.
Such tourism is alienated from local culture and people, where the host and their way of life
are not part of the tourist offer, with the majority of earnings going abroad.
In recent years, tourism has experienced significant development worldwide, especially in

developing countries. Tourism is a multi-layered activity with positive and negative impacts
on destinations, connecting economic, social, and ecological components of sustainable
development. The attitude of the local community is an important factor for future tourism
planning, management, and the development of tourist destinations. In Split, the local
population is a significant functional sphere because the future and success of the product
143
depend on its acceptance or rejection of tourism development and the creation of the tourist
product (especially heritage-based). The residents of Split will be satisfied with the tourism
production if they are provided with the means of livelihood and other vital benefits, i.e., if
their quality of life is not affected. Tourism as a social potential is structurally changing under
the influence of new technologies and global crises, making new knowledge in communication
a priority for managing knowledge and human development potential in tourism.
Most of the research essential to this research problem is part of foreign literature, while a
smaller number is dedicated to research in the Republic of Croatia. First, we will point out
works that are theoretically or empirically focused primarily on the explication of sociological
aspects of tourism. Then we will briefly show how it is applied in other scientific fields or
activities that touch on the phenomenon of tourism. On the theoretical level, we would mention
a significant work, "Sociology of Tourism" by A. Todorović. This book has raised many
questions related to the phenomenon of tourism in contemporary society. With a
methodological approach, various social phenomena related to tourism (environment, culture,
values, ideologies, personalities, snobbery, etc.) and tourist propaganda were discussed. The
author starts from the possibility of constituting the sociology of tourism. On the perception of
the local population of the actual benefits of tourism for the local community, and ultimately,
the real change in terms of the quality of life of the local population. The author also states how
the degree of acceptance of tourism as a way of earning a living or the degree of involvement
of the local population in the development and management of tourist content will be
determined.
The author Beeton refers to the work of Doxey, who identifies a simple set of phases describing
the perception and involvement of the local community in the increase of visitors to a
destination. In the early stages of tourism, the local community is euphoric, and hosts are
welcoming because they are aware of the economic and social benefits that tourism can bring.
Author Jelinčić believes that the impact of tourism on the local population can be twofold:
• Stimulating some positive aspects of local behavior: promoting self-awareness, pride,

self-confidence, and solidarity among the local population; or
• Provoking displeasure due to the presence of tourists: leading to feelings of boredom,
opposition, and even hatred towards tourists.
For example, encouraging certain types of tourism where tourists want to use local goods and
services rather than imports provides an opportunity to reduce possible misunderstandings
between foreign tourists and the local population. This approach is often equated with the
development of alternative forms of tourism such as ecotourism, nature-based tourism, and
hotels based on various activities.
Due to non-uniform spatial concentration, it is known that tourism has different effects on
different scales and locations in Split. These effects are often perceived as either positive or
144
negative. For instance, the economic income generated by tourism stimulates the local
economy and can drive significant economic growth. It has the potential to create jobs, generate
taxes, revitalize cultural communities, and regenerate areas. Additionally, tourism can
potentially threaten local identity and authenticity, overcrowd areas, and increase property
prices.
It should be noted that negative effects for certain residents may imply positive effects for
others. For example, property prices may rise unfavorably for residents with lower incomes
who rent property but favorably for real estate investors. However, the use of such a strategy
does not necessarily have to overcome the challenges of overtourism and could likely lead to a
decrease in the overall level of tourism income in countries with an established tourism
industry. According to the cited authors who state: "a tourist destination implies a broader,
integrated space that builds its tourist identity on the concept of cumulative attractions,
enabling an experience and, with additional tourist infrastructure, represents a space for the
gathering of tourists. A tourist destination is conditioned by the desires, preferences, interests,
and needs of tourists."
145
2. TYPES AND FORMS OF TOURISM
Tourism is one of the world's fastest-growing industries and a major generator of currency and
employment in many countries. It is one of the most prominent economic and social
phenomena. Types of tourism primarily result from different travel motivations, that is, the
very purpose of the journey. Each type of tourism is characterized by a specific purpose and is
specific to regions where the desired goal can be achieved by the existence of certain specific
facilities.
Tourist areas are characterized by a certain type of travel or the combination of types that can
vary over time. Many forms of tourism can be classified based on typical features of spending
time during a stay in a particular destination. The classification of types of tourism is possible
according to various criteria, such as: Coastal tourism includes: seaside recreation, water sports
(swimming, rowing, sailing, surfing, windsurfing). Mountain tourism: hiking, climbing,
cycling. Sports tourism: winter sports - skiing, snowboarding, cross-country skiing. Summer
sports, extreme sports (rafting, paragliding, water diving, etc.). Sporting events (world
championships). Cultural tourism: historical sites, buildings, and monuments, places of
historical events, e.g., battles (Waterloo), disasters (Pompeii). Health tourism: spas, fitness,
relaxation, wellness. Rural tourism. Ecotourism: tourists work on farms that raise animals,
participate in processes, milk processing, vineyard processing, horse care, etc. Event and
gastronomic tourism. Music, theater, or beer festivals. Tasting wines and dishes from a specific
area abroad. Shopping tourism: going abroad for shopping due to lower prices of goods, etc.
Business tourism: international/national/regional/local conferences, seminars, business trips,
etc. There are other classifications of types of tourism, such as: According to the time period:
short-term (up to 3 days); long-term (more than 7 days). According to the method of
organization: organized (by travel agencies), individual (families independently). According to
the destination: international tourism (predominant in Europe); Domestic tourism
(predominant in large countries - the USA, Canada). According to the direction of tourist flows:
incoming tourism, i.e., outgoing tourism. Tourism is an industry branch among those economic
activities that, besides realizing direct economic profit, directly or indirectly affect the
development of many other industries. Tourism, through tourist movements, has a significant
impact on geographical space, and this effect is reflected in all elements that make up space,
and these effects can be economic, social, public, and environmental.
Tourism consists of two basic components: tourist movement and consumption, tourist
movement is the basic spatial element, while tourist consumption is the basic element of the
tourism industry that expresses the economic impact of tourism. Tourist movement necessarily
drives tourist consumption. In this context, the question arises: what drives tourist movement?
The answer is: recreational-tourist resources are the main initiators for tourist travel and a very
important tourist motive that stimulates tourist movement. If recreational-tourist resources are
characterized by greater attractiveness, better ambiance, and greater curiosity value, etc., this
146
will initiate more massive tourist movement and greater tourist consumption. In addition to the
mentioned classifications, for this paper, the contribution proposed by the Institute for Tourism
regarding the translation of UNWTO definitions is interesting. The paper presents only those
types of tourism that are relevant to the topic being addressed.
Cultural tourism is a type of tourist activity in which the primary motivation of visitors is to
learn, discover, experience, and consume tangible and intangible cultural attractions/products
at a tourist destination. These attractions/products relate to a set of distinctive material,
intellectual, spiritual, and emotional characteristics of society, encompassing art and
architecture, historical and cultural heritage, culinary heritage, literature, music, creative
industries, and living cultures with their lifestyles, value systems, beliefs, and traditions.
Ecotourism is a type of tourism activity based on nature, where the primary motivation of
visitors is to observe, learn, discover, experience, and appreciate biological and cultural
diversity with a responsible attitude to protect the integrity of ecosystems and improve the well-
being of the local community. Ecotourism increases awareness of the conservation of
biodiversity, the natural environment, and cultural assets among both locals and visitors and
requires specific management processes to minimize the negative impact on the ecosystem.
Health tourism involves those forms of tourism whose primary role is to contribute to physical,
mental, or spiritual health through medical and wellness activities that enhance individuals'
ability to meet their needs and function better in their environment and society. Health tourism
is an umbrella term for subtypes such as wellness tourism and medical tourism.
Business tourism is a type of tourism activity in which visitors travel for a specific professional
and/or business purpose to a location outside their workplace and residence with the aim of
attending a meeting, activity, or event. Key components of business tourism are meetings,
incentives, conferences, and exhibitions. The term "meeting industry" in the context of business
tourism recognizes the industrial nature of such activities. Business tourism can be combined
with any other type of tourism during the same trip.
Gastronomic tourism is a form of tourism that relates to the tourist's experience with food and
related products and activities during travel. The quality and type of accommodation and food
offerings influence many tourists, and although food is not an attraction in itself, it is an
essential part of almost every journey and can enhance the overall attractiveness of a
destination. Tourists seeking nature and culture are particularly interested in tasting local food
products and authentic regional recipes. In addition to activities related to original, traditional,
147
or innovative culinary experiences, gastronomic tourism may also include other related
activities such as visits to local producers, participation in food festivals, and attendance at
cooking workshops.
Coastal tourism refers to land tourism activities such as swimming, surfing, sunbathing, and
other coastal leisure, recreation, and sports activities that take place on the shores of the sea,
lake, or river. The proximity of the coast is a condition for services and facilities that support
coastal tourism. Maritime tourism refers to maritime activities such as cruising, sailing,
boating, and nautical sports and includes their land services and infrastructure.
Sports tourism is a type of tourism activity related to the travel experience of tourists who either
observe as spectators or actively participate in a sporting event, which typically includes
competitive and non-competitive activities of a commercial nature.
Nautical tourism is considered a type of tourism, although some authors consider it a specific
form of tourism, some include it in selective types of tourism, but nautical tourism is a
phenomenon that goes from selective tourism to a mass tourism phenomenon, and the reason
for that is its spatially wide-ranging activity and the fact that it is not time-limited only to the
summer season.
Educational tourism covers those types of tourism that are the primary motivation for tourist
engagement and experience in learning, self-improvement, intellectual growth, and skill
development. Educational tourism represents a broad range of products and services related to
academic studies, training breaks, school trips, sports training, career development courses,
and language courses, among others.
Religious tourism is an important part of the tourism industry, also called special interest
tourism, usually referring to followers of certain religions who visit places considered holy.
Religious places are visited not only by pilgrims but also by non-religious tourists because they
have cultural, historical, and religious significance.
148
3. TOURIST POTENTIAL OF THE CITY OF SPLIT
Split, the second-largest city in Croatia, is known for its cultural landmarks, sandy beaches,
and rich nightlife. Recently, Split has become a popular tourist destination with millions of
visitors throughout the year, including both foreign and domestic tourists. Below are details
about the main beauties of Split that attract so many people each year.
"One of the main reasons tourists come is the rich tourist offer of Split and numerous events
throughout the year." Tourism, in its developmental path, has undergone numerous changes in
appearance, structure, function, space, qualitative, and quantitative forms. The World Tourism
Organization has defined the classification of tourist potentials, including natural tourist
capacities, cultural-historical capacities in tourism, climatic conditions, infrastructure, and
tourist services and facilities.
Tourism is crucial for the success of many economies worldwide. There are several advantages
of tourism in host destinations. Tourism increases the economy's revenue, creates thousands of
jobs, develops the country's infrastructure, and fosters a sense of cultural exchange between
foreigners and citizens. The number of jobs created by tourism is significant and spans various
sectors such as agriculture, communication, health, and education. Many tourists travel to
experience the culture, different traditions, and the cuisine of their destination.
Tourist demands change the relatively variable supply, while the domestic supply is relatively
fixed, changing gradually. Tourism inevitably leaves positive and negative but deep traces in
the social, economic, and spatial segments. Its significance, role, and contribution to the
development of contemporary society through encounters, understanding, connecting,
cooperating, and tolerating are immensely significant. Split is built on a peninsula between the
eastern part of Kaštela Bay and the Split Channel.
Split has many cultural and artistic landmarks, including Diocletian's Palace, Split Cathedral,
the Croatian National Theatre, the Meštrović Gallery, and many other museums. Most of these
landmarks are located in the city center.
Diocletian's Palace, the most significant cultural tourist attraction in Split, was built during the
reign of Emperor Diocletian, a Roman ruler known as a persecutor of Christians. He spent the
last years of his life in this luxurious palace, located in the heart of the city of Split. Although
called a "palace," it is more like a large tower surrounded by walls and towers.
The Split Peristyle is considered the most beautiful square in Split and one of the most beautiful
in Croatia and even in Europe.
The Split Theatre is the most important theater institution in Dalmatia. The theater building is
a protected cultural property. Split Summer is the most famous cultural event in Split, held
during July and August each year. It consists of numerous theater performances, musical
performances, and art exhibitions.
In the historic core of Split, Diocletian's Palace stands out, which has been on the UNESCO
World Heritage List since 1979, not only because of the exceptional preservation of the Palace
149
itself but also because the Palace and its city (or the city and its Palace) continue to live a full
life. In that structure, all historical layers from ancient Rome through the Middle Ages to the
present are visible. Walking through the ancient city allows time travel, observing outstanding
examples of ancient architecture like the Peristyle, medieval Romanesque churches and Gothic
palaces, Renaissance portals of noble houses, Baroque facades, all the way to modern
architecture exceptionally integrated into rich heritage.
"Such layering is also reflected in the daily life of Split. Local residents sit in the same cafes,
restaurants, and shop in the same stores as tourists, giving them the impression that by coming
to Split, they have become an integral part of the city and its rhythm. The market and fish
market in the center are the lifeblood of every Split family, as the entire social life of the city
of 200 thousand inhabitants is reflected on its Riva, where every guest who respects themselves
will have coffee sitting next to the noisy, temperamental Split residents."
Split is much more than a magnificent architectural backdrop. It is a city where you can enjoy
excellent gastronomy and wines, find numerous cultural events such as film and theater
festivals, exhibitions, top-notch museums, and concerts, a city that offers entertainment from
numerous clubs and bars to street events and festivals like ULTRA Europe, attended by up to
100 thousand young people from hundreds of countries worldwide.
Split, with its dozens of Olympic and other medal winners, also has a sports tradition like few
other cities of its size in the world.
Split traditionally retains vitality. It is reflected in strengthening the city's position as a tourist
destination, increasing traffic frequency, as well as entrepreneurial innovation, promoting
small businesses, education for jobs needed by the local economy, and continuous
encouragement of university development.
Split is the center of Dalmatia, both touristically, academically, and economically, ranking
among the sunniest places in Europe. Split, as a Mediterranean city, abounds with numerous
cultural, geographical, and other factors. Tourism is one of the most propulsive economic
sectors, both globally and in Croatia, especially in Split. New trends and needs in tourism
initiate and result in numerous new activities, projects, and contents. The city of Split is
characterized by a constant growth in tourist demand at the destination level and an increasing
growth in tourist nights. However, what characterizes the tourist economy in Split, as well as
in the entire coastal area, is the seasonal duration period. The rich cultural and entertainment
offer places Split at the forefront of tourist dominance on the Adriatic. Split is connected to the
entire Europe through transport.
It is connected to Zagreb via the A1 Zagreb-Split highway and, through the Adriatic Highway,
is connected to Rijeka. Coastal lines connect Split to the entire Adriatic coast and islands, and
there are also fast and ferry lines to neighboring Italy. By railway, Split is connected to Zagreb,
from which one can reach any other destination in Europe, and the airport connects Split to
Zagreb, with flights to many other cities worldwide.
150
In today's time, tourists seek more demanding and complex products and services, so it is
necessary to adapt the offer to such a demand structure. Outdated, traditional forms of tourist
offer need to be replaced with modern, variable demand. In addition to the mentioned social,
historical, cultural, and other potentials, the City of Split has some traditional industrial
capacities: shipbuilding (Brodosplit), cement industry, food production, etc. Split is an
important maritime and shipping center (Jadroplov, a vessel rescue company Brodospas).
Although deindustrialization has erased numerous industries from Split in the last decade,
today, activities such as trade, fair activities, development of new technologies, and
construction entrepreneurship are significantly developed in Split.
This research paper focuses on the tourist perspectives of the residents of the city of Split. In
recent times, the region has become popular for tourists from European and non-European
countries, especially in Split during the summer months, which has led to a negative response
from local residents. Following this, the research paper examines whether local residents are
affected by changes in tourist demographics, and if they are negatively affected, what strategies
might exist to improve interactions between the two groups. The study analyzed the current
situation in Split using two research instruments: a survey conducted with local stakeholders
and a survey conducted with tourists. Based on the results, local residents have a rather negative
attitude toward tourists from some countries, despite being aware of the economic benefits for
them. People feel that almost all aspects of the Split destination are negatively affected, but
they are mainly concerned about the increasing traffic congestion, cultural differences between
residents and tourists, and stereotypes also play a very important role in this case. In the end,
the author provides recommendations for improving the host-guest relationship based on
responses from the survey questionnaire and recommendations from interviewees. Ultimately,
the author recommends that to improve the situation, both sides need to be informed about the
cultural habits, tradition, and rules of either side to promote mutual understanding.
151
4. EMPIRICAL RESEARCH
As the main research instrument, a survey questionnaire created for the purposes of this study
was used. In order to determine the impact of tourists on the local population of the city of
Split, a survey questionnaire was developed, addressing important elements that influence the
impact of tourists on the local population. The survey questionnaire for the purposes of this
study is structured to aid in assessing possible conclusions from which the relationships
between tourists and the local population can be examined. The survey was conducted by an
interviewer without suggesting answers to the respondents.
Through the survey, the attitudes of the citizens of the city of Split were examined regarding
the social, economic, ecological, and other dimensions of the tourist offer. This part of the
study focuses on questions related to local residents and their participation in tourism
development, attitudes and perceptions, factors influencing people's attitudes and perceptions
towards tourism development, the local population's access to the benefits arising from tourism,
and the costs incurred due to tourism development. Understanding the relationships between
various parts of the system enables all stakeholders in tourism to improve the efficiency of
planning and management and increase the likelihood of success. Based on the survey
conducted among tourists and the local population, the results obtained show the perspective
of tourists on one hand and local residents on the other hand.
Table 1. Gender system of surveyed local residents.
Male Female
104 96
Graph 1. Gender system of surveyed local residents
Gender structure of surveyed residents of Split

106
104
102
100
98
96
94
92
Muški Ženski
Table 2. Educational structure of surveyed residents of Split
152
Primary school or less
26%
Secondary school 53%
Higher professional school 5%
University or higher 14%
Graph 2. Educational structure of surveyed residents of Split
Educational structure of surveyed residents of Split

60%
50%
40%
30%
20%
10%
0%
Osnovna škola ili Srednja škola Viša / stručna Fakultet ili više
manje škola
Table 3. Employment status of those surveyed
Status of the
respondent
Employed 31%
Unemployed 13%
Individuals engaged 4%
in household duties
Child, student 26%
Retiree 22%
Other inactive 3%
Graph 3. Employment status of those surveyed
153
Employment status of surveyed residents of Split
35%
30%
25%
20%
15%
10%
5%
0%
Zaposleni Nezaposleni Osobe koje se Dijete, učenik, Umirovljenik Ostali neaktivni
bave obavezama u student
kućanstvu
Table 4. Source of income for those surveyed
Income from regular 36%

employment
No income 33%
Various types of pensions 26%
Social benefits 5%
Graph 4. Source of income for those surveyed
Income of surveyed residents of Split

40%
35%
30%
25%
20%
15%
10%
5%
0%
Prihod od stalnog rada Bez prihoda Različite tipove Socijalne naknade
mirovine
When it comes to household income, 28% of the survey respondents refused to provide more
detailed information about their income. The highest percentage of surveyed households that
154
provided information about their income has less than 2000 kn per month (19%), followed by
families with incomes from 2001 to 4000 kn (18%), meaning that just over a third of
respondents have low incomes. A roughly equal percentage of households among the surveyed
(13% in the first category and 11% in the other two categories) have incomes between 4,001
and 6,000 kn, 6,001-8,000 kn, and higher than 8,001 kn.
Table 5. Household incomes
Less than 2000 kn 38 19%

2001 to 4000 kn 36 18%
4001 to 6000 kn 27 13%
6001 to 8000 kn 22 11%
More than 8001 kn 11 5,5%
Unemployed 57 28%
Graph 5. Household incomes
60
50
40
30
20
10
0
Manje od 2000 kn 2001 do 4000 kn 4001 do 6000 kn 6001 do 8000 kn Više od 8001 Nezaposleni
Series1
Participation of local citizens in the survey on tourism development. As shown in Table 125
(49.6%), respondents agreed with the statement that local people were involved in tourism
development, although, slightly lower, but almost a similar percentage of 120 (47.6%)
respondents disagreed with the statement that local people were involved in tourism
development.
155
Table 6. Participation of local residents in tourism development
Engaged in tourism development 125 49,6%

Not engaged in tourism 120 47,6%
development
Graph 6. Participation of local residents in tourism development
Involvement of the local population in deciding on the

development of tourism
140
120
100
80
60
40
20
0
Uključeni u razvoj turizma Nisu uključeni u razvoj turizma
What is expected from the local population in relation to tourists. The participants' attitudes
toward tourism in the research can be divided into two groups: a positive attitude towards
tourism and the negative consequences of tourism development. As positive aspects of tourism
development, respondents mention that tourism itself is never negative. Most of them state that
it is good that Split has become recognizable, and it is nice to see tourists, and they will gladly
help them find various locations in the city. In this sense, the results of the conducted survey
are cited.
Table 7. Survey Results
Knowing fundamental concepts of tourism 87,6%

Understanding entrepreneurship in tourism 75,4%
Being proficient in one's language 89,0%
Knowing other foreign languages 78,3%
Adhering to rules of etiquette 89,6%
Ability for tourist guiding 90,4%
Knowing one's local and regional identity 98,0%
156
Knowing the specific values of Split 93,2%
Understanding and discovering the specific 67,5%

identities of tourists
Respecting and honoring tourists 89,7%
Having ecological knowledge 93,2%
Using modern technology 74,7%
Possessing knowledge about professions in 89,5%
the tourism industry
Graph 7. Attitudes of the local population about tourism
Some attitudes of the local population towards tourism

120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
Poznavati
Znati temeljne pojmovepoduzetništvo
Dobro se služiti
o turizmu u turizmu
svojim Koristi
Poznavitijezikom
drugese pravilima
strane Sposobnost
jezikeljijepog ponašanja
za turističko
Poznavati vođenje
svoj lokalni i regionalni
identitet
In the tourist world, educational value is highly appreciated. Specifically, the creativity,
knowledge, and skills of the local population at the destination can yield excellent and multiple
results, from confirming identity to interpreting historical material. This questionnaire provides
concrete knowledge and skills, mostly in the field of tourism, that can be easily acquired.
Graph 8. Some attitudes of the local population about tourism
157
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
In the tourist world, educational value is highly appreciated. Specifically, the creativity,
knowledge, and skills of the local population at the destination can yield excellent and multiple
results, from confirming identity to interpreting historical material. This questionnaire provides
concrete knowledge and skills, mostly in the field of tourism, that can be easily acquired.
The local population should:
• Participate in consultation meetings and surveys organized by the tourist community

as part of the approach to designing, implementing, and monitoring integrated quality
management.
• Play an active role in improving care for tourists through attitudes, friendliness, and
helpfulness.
• Adhere to and assist in implementing measures and regulations adopted by local
authorities in areas such as cleanliness, building sanitation, environmental respect, use
of public transportation, and safety meeting standards and quality labels (as well as
ecological labels) and continuously strive to improve services and products offered to
tourists.
• Listen to visitors and their staff to provide food for thought and feedback for an
integrated quality management approach.
• Through individual and collective initiatives, help improve the attractiveness of the
destination.
• Ensure that visitors have a positive image of the urban destination and are aware of its
specific nature.
158
Tourism in Split mainly operates on earned income, and entrepreneurs and investors in tourism
are not primarily interested in investing in significant development. Their relationship is often
tied to the local community and the care for the protection of its resources. This is often
inversely proportional to the achieved level of development of a particular local community.
An example is the interest in solving the transportation network (traffic) in Split, given the
concentrated location of railway, bus, and maritime transport.
Out of 300 surveyed tourists, a total of 252 respondents (84%) consisting of 50.8% males and
49.2% females, filled out and returned the questionnaires (Table 1). The majority of
respondents (78.2%) were between 16 and 40 years old, while those under 15 and over 51 years
old accounted for only 6.8%. The age of the respondents varied significantly. Based on
occupation, the majority of respondents were students (35.7%), while the fewest were in the
"other" category (0.4%). Regarding the category of education level, high school and university
students comprised the majority of respondents (56%). In terms of length of stay, those
respondents who stayed in the study area for more than 20 days were the majority (27.8%), and
the length of stay varied significantly.
Table 8. Gender structure of survey participants
Male Female
50,8% 49,2%
Graph 9. Gender structure of surveyed tourists
Gender structure of survey participants

51.00%
50.50%
50.00%
49.50%
49.00%
48.50%
48.00%
Muški Ženski
Table 9. Detailed distribution of the age structure of respondents
159
10 – 15 years 3 1,2%
16 – 20 years 70 27.8%
21 – 30 years 75 29,8%
31 – 40 years 52 20,6%
41 – 50 years 38 15,1%
Graph 10. Detailed distribution of the age structure of tourists
Distribution of the age structure of respondents

80
70
60
50
40
30
20
10
0
10-15godina 16-20 godina 21-30 godina 31-40 godina 41-50 godina
Table 10. Educational structure of surveyed tourists
Elementary school 7
students
Elementary school 25
High school 141
College 48
University 31
160
CONCLUSION
The analysis of the impact of tourists on the local population is defined by the general
hypothesis: "Tourism should have an economic and socio-cultural impact related to the local
society and changes in their general, existential, and developmental values." The method of
analysis that compares and evaluates all the advantages and disadvantages of the relationship
between tourists and the local population is based on the analysis of positive and negative
effects.
Within the scope of this work, research was conducted based on empirical techniques in the
city of Split, and four sub-hypotheses were formulated to examine the situation through the
analysis of the respondents' attitudes from both groups. The main hypothesis and four
alternative hypotheses were defined, proven through a survey questionnaire. The first
alternative hypothesis, which relates to the content of the tourist offer significantly influencing
the ways and content in which tourists affect the local population, has been proven. The second
alternative hypothesis, which concerns the assessment of respondents that tourism can bring
benefits, such as economic resources or support for the protection of certain cultural-historical
values, has been proven. The use of descriptive statistics of the Likert scale was applied to
natural attractions, often the main reason for tourist visits, and the mutual correlation of
variables was visible, confirming the acceptance of the hypothesis.
The last sub-hypothesis is confirmed because tourism provides opportunities for local
employment, which is not only a positive social but also an economic factor.
Research results have determined that the local community has developed positive attitudes
towards tourism. The local community has accepted that tourism, through active and passive
participation, is the main source of income. Accommodation facilities have also made
numerous decisions and practices to ensure the provision of benefits of tourism to the local
community. As is typical for any industry, tourism creates both positive and negative impacts
on the area. However, negative effects are minimized compared to positive impacts. It is
suggested that more activities should be carried out in terms of awareness and education of the
local population to achieve positive benefits and minimize the negative impacts of tourism.
Understanding the perception of local residents about the impact of tourism and their attitude
towards tourism development is crucial for the success and sustainability of any type of tourist
development.
It is a well-known fact that tourism is a sector that can contribute to the economic growth of a
region. Furthermore, tourism produces social benefits in the region (i.e., the development of
small and medium-sized businesses, job creation, improvement of infrastructure, etc.).
161
Culturally, tourism is said to enrich the community through the encounter of different cultures.
Tourism can also positively contribute to the maintenance of the natural environment through
protection, creation, or maintenance of national parks or other protected areas.
The economic dimension of tourism is most noteworthy — the interconnectedness of tourism

and economic development. Tourism has been embraced as an alternative policy to stimulate
economic growth. In addition to approaching the tourism sector as a tool for the development
of the overall economy or state, it brings economic benefits to settlements. Tourism involves
sectors from transportation to entertainment and from shopping to accommodation.
Research into tourism development generally looks at the positive effects of such development.
Some studies often omit the negative impact of tourism, which may only appear after a longer
period and may result in uneven development among different groups within the local
community. An example of this is the concept of "overtourism," developed in recent years in
media reports on the negative impact of mass tourism on host communities and/or the natural
environment. The definition of overtourism was formulated in UNWTO documents in 2018
and is interpreted as "the impact of tourism on a destination or its parts that excessively
influences the perceived locations' quality of life for citizens and/or the quality of the visitor
experience in a negative way." A tourist area has its limitations arising from the available area
and reactions to tourist traffic.
Considering that the demonstrative effect is still a concept requiring further empirical testing,
the main contribution of this study lies in collecting specialized empirical evidence on how
tourist behavior can have (or not have) a direct impact on the behavior of the local population.
In this sense, by demonstrating that systemic approaches can lead to a deep and comprehensive
understanding of how people's lives change in tourist destinations, these findings suggest that
well-accepted concepts of the demonstrative effect need to be reconsidered.
Among the benefits and characteristics of the local population in tourism, it can be concluded:
• Local residents should be enabled to participate in all decision-making processes

democratically.
• Tourism emphasizes heritage management processes, not heritage products for
consumption.
• Tourism is likely to encourage collaboration with local artisans, artists, writers, actors,
and musicians.
• Often depends on significant voluntary efforts by local stakeholders.
• Focuses on the local identity and sense of the city of Split.
• Often encompasses and emphasizes the "geographical" territory that can define
different common characteristics.
162
• Encompasses both spatial and temporal aspects. Regarding time, in terms of continuity
and change over time. Therefore, its treatment is diachronic, not synchronic.
• Tourism often takes the form of a "fragmented museum" consisting of a network with
a center and various objects and places.
• Promotes the preservation, conservation, and protection of heritage site resources.
• Ideally, equal attention is given to both tangible and intangible cultural heritage
resources.
• Tourism encourages sustainable development and resource use.
• Enables changes and development for a better future.
• Promotes the current documentation program of past and present life and interactions
of people with all environmental factors (including physical, economic, social, cultural,
and political).
• Promotes multidisciplinary and interdisciplinary research approaches.
• Ideas about successful tourism encourage a holistic approach to the interpretation of the
relationship between nature/culture.
• Often tries to illustrate connections between: technology/individual, nature/culture, and
past/present.
• Tourism can provide an intersection between heritage and tourism stakeholders.
• Can bring benefits to local communities, such as a sense of pride, renewal, and/or
economic income.
Regardless of the attitudes of their governments, all countries that have experienced profound
transformations of their tourist spaces identify problems in collective decision-making.
However, there is some potential for the application of participatory tools and landscape
interpretation methodologies that have been tested and promoted in tourism development.
Committing them to work in practice is an intriguing intellectual challenge within "active"
tourism industry management.
The transfer of best practice experience requires changes in performance, communication, and
behavior. Therefore, the parties involved in exchanging best practices, the "source" (an
experienced expert in the tourism industry) and the "receiver" (local population), should work
together on knowledge and experience exchange, teaching, learning for the benefit of the
improvement process. In addition to removing barriers to the transfer of best practices,
organizations must create an environment that facilitates the transfer of best practices.
Organizations must adopt many features that facilitate the transfer of best practices. The most
common among them are:
• Comparison teams: they are formed to take care of internal and external project
evaluation.
• Good practice teams: good practice teams are a permanent part of the infrastructure
organization's networking.
163
• Knowledge and practice networks: facilitate practice communities to share expertise,
enabling them to become knowledge networks.
On the one hand, this research shows that while hedonistic and consumer behavior of tourists
is mostly visible (demonstrated) to the local population, consumption patterns are not the only
behaviors that the local population can mimic. In fact, it seems that local residents may adopt
or learn other forms of social behavior, habits, ways of thinking, and attitudes more frequently.
Sociocultural dimensions, instead of economic ones, are more represented in the demonstrative
effect. On the other hand, this study also shows that local residents do not blindly copy tourist
behavior. Although there seems to be a common assumption that local people, especially those
in developing countries, will automatically adopt demonstrated tourist behavior, the evidence
presented here warns that, instead of mimicking, local people may observe, analyze, and choose
or reject certain patterns of behavior that may represent a real or potential benefit for them.
Therefore, instead of being passive actors in the impact of tourism on social change processes,
local people think as actors who actively choose the changes they want to incorporate into their
lives.
Based on the results of this research and for monitoring tourist satisfaction with the offer, as
well as those elements of the offer that require more intensive improvement regarding the local
population's relations, the application of the results of this research is possible in practice. This
indicates elements and areas of action to improve the tourist offer, all with the aim of increasing
tourist satisfaction and improving the economic, social, and cultural effects of local population
development.
Tourism is truly an international/global industry. Tourism is vital to the country's economy,

and sustainable tourism development requires an understanding of the complex interactions
and interplay of a multitude of environmental factors and interdisciplinary forces that play a
crucial role in tourism development. Although the overall field of tourism has been extensively
researched, there are certain areas where there is not enough research, namely, competition
analysis, branding, and positioning. This paper contributes to an extremely important but
relatively less researched topic. Specifically, we examined the relationship between destination
development and the image of its brand. We developed a conceptual model that identifies
different constructs, processes, and relationships involved in the relationship between
destination development and the image of its brand. We proposed that the brand image has
three components corresponding to three stages of consumption/travel, i.e., before travel,
during travel, and after travel. Developing the proposed model is based on the interdisciplinary
nature of tourism based on various influences, such as economic, social, cultural, political
factors.
164
In future work, it is necessary to examine the development and scope of future research on nine
key concepts, including decision-making, values, motivation, self-concept and personality,
expectations, attitudes, perceptions, satisfaction, trust, and loyalty in the relationships of the
impact of tourists on the local population."
165
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169
5. RESEARCH ON JOBS AND WORKING
CONDITIONS OF INSPECTION AND HUMAN
RESOURCES MANAGER

Ino Jurišić, MSc in Naval Architecture, Brodosplit, ino.jurisic@brodosplit.hr
Inspection and personnel managers in maritime affairs are employed after completing their
studies at the College of Inspection and Personnel Management. The rights and duties of
inspectors for inspection and personnel management are related to activities on land.
The tasks of inspection and personnel management are mainly related to tasks connected with
control: Transport documents. Loading and unloading of cargo. Agency tariffs. Conditions for
performing maritime agency activities. Ship exploitation agreements. Incoterms1. Basics of
trade and financial business2.
In this research, the inspection and personnel managers from the following companies are
interviewed and included in the survey:
1. Europe - Van Weelde, Rotterdam, Split Ship Management d.o.o. Agency, Jadroinspektor
Koper Agency (Kopar)
2. USA - Southport Agencies Inc., Houston
3. China - SINO - Shipping Agency, Kosichang
4. South Amerika - Porto Agenciamontos, Santos (Brazil)
1
Incoterms, the official rules of the ICC (International Chamber of Commerce) for the interpretation of trade
terms, have been in use worldwide for more than 60 years. Apart from the fact that these terms have become
indispensable for the smooth conduct of international trade, their authenticity is recognized by all world courts
and other administrative bodies, and their inclusion in sales contracts significantly reduces the possibility of
misunderstandings that could lead to legal complications. In view of the changes and developments in trade
practice, the ICC has released a new version of Incoterms, Incoterms 2000, which are in force from 1 st January
2000.
2
Place: Pomorsko učilište Adriamare Consulto d.o.o. ,Draga 2, Šibenik
(ex. Slobodna plovidba)
170
5. Singapore - Pacmar Ship Agency, Singapore
In Split, the costs that make up the total cost of the ship in the port (Disbursement account) are
prescribed and issued by:
- Light Dues „Sjetlarina“, Plovput

- Pilot in/out „Pilotaža“, published by Pilot Split
- Berthing dues „berthing costs”, Port Authority
- Port dues „port charges”, Port Authority
- Mooring/Unmooring, Port Authority
Survey of inspection and personnel managers in maritime affairs

1. For your job, personal involvement is also a challenge (how motivated, emotionally
involved, and committed you are),
2. To what extent are inspectors and personnel in the maritime profession free to decide on the
manner of carrying out their tasks, time for ideas (whether employees have time to think about
things before they start acting),
4. Is your work dynamic (fulfilment of organizational life with events), support for ideas (are
there any means to test new ideas),
6. Is there trust and openness (do people feel confident to express their opinions and offer
different points of view),
7. Is there excitement and humour (how relaxing is your workplace, is open-minded
communication considered acceptable),
8. Are there any conflicts (to what extent do people get involved in interpersonal conflicts),
9. Are there discussions (to what extent do people engage in lively discussions on issues of real
interest)
10. How much is risk-taking acceptable (is failure considered normal).
EMPIRICAL RESEARCH
Isaksen and Kaufman constructed the SOQ situational review questionnaire based on these
guidelines. Based on the factor analysis, the dimension of dynamism was excluded, and the
questionnaire was reduced to nine dimensions. This instrument contains 50 items and is
designed to assess the extent to which each particular context supports creativity and change.
171
The goal of this research is the measurement of business creativity and the development of a
creative organizational climate in the field of inspection and personnel management in
maritime affairs.
The problem of this research can be formulated with the questions: How effective is an
inspector and personnel manager who nurtures a creative business climate? Can cultivating the
creative organizational climate in the reality of maritime economic organizations in practice
increase the level of organizational creativity as a whole?
The answers to these questions are aimed at developing knowledge about the variables that
enable the operationalization of the construct of the creative business climate as a factor in
improving the effectiveness of education of inspection and personnel managers in maritime
affairs.
The set research goals were achieved by the following tasks:
• determining the possession of attitudes and the latent structure of attitudes of inspection and
personnel managers in maritime affairs towards the creative organizational climate;
• determining the nature of the connection between the social status characteristics of members
of inspection and personnel managers in maritime affairs (gender, experience, position,
education ...) and their attitudes towards the creative organizational climate;
• discussing the results and drawing conclusions relevant to improving the effectiveness of
management by fostering a creative organizational climate.
Research hypotheses
Ha1: The level of business-organizational creativity of inspection and personnel managers in
maritime affairs contributes to the improvement of the overall creativity of the management of
maritime organizations, as well as the development of a creative organizational climate in the
maritime business.
Research
172
The subject research is of an empirical nature. In the implementation of field research, the
survey method was used, as the basic methodological approach, to collect data with the help of
several research instruments, which were processed, presented, and discussed by an appropriate
statistical procedure. This method was chosen because it proved to be a quite suitable method
used for field determination of facts with this type of variables, especially when it comes to
determining tendencies at the level of distributions and at the level of interconnectedness of
obtained results on distributions of attitudes. The method of theoretical analysis was used as a
supplementary method. The contents of scientific discussions and research dealing with the
problems investigated in this paper are analysed.
Research sample
The research sample was picked from all inspection and personnel managers in the maritime
sector who completed their studies at the College of Inspection and Personnel Management3.
The sample was identified by random extraction by the method of systematic sampling (each
n- from the list), with the original sample being the total number of surveyed organizations (it
was expected that 20-30% of organizations would not provide valid survey material). A final
sample from most companies with valid survey material was obtained. The sample was drawn
based on the willingness of maritime inspection and personnel managers to cooperate. The
survey process was conducted from September 2017 to January 2018. In the identified
organizations, all members of maritime agents were defined as respondents.
The sample of respondents included 20 maritime inspectors and personnel managers by the end
of the survey. The sample drawn in this way allows inference at the level of reliability p <0.05.
Variables
An electronic survey and a survey with the help of interviewers (the VŠIKM associates) were
used to collect data. The questionnaire contained the following sections:
1. Identification of observation units and respondents,

2. A battery of questions for identification of creativity climate in the organization,
3
This refers mostly to the students graduated from the College of Inspection and Personnel Management
173
3. A battery of questions about the subjective preferences, satisfaction, and proactive life
attitude of members of inspection and personnel managers in the surveyed maritime
organizations.
Data processing
The data were entered into the basic matrix and subjected to multiple control (logical control,
normality, requirements set by regression analysis, item analysis…). All variables were
subjected to bivariate analysis (crossing with a dependently changeable variable). In
accordance with the predominant nature of the data, a selection of statistical methods
corresponding to the categorical data was made:
• Non-parametric tests - Hi square test,

• Logistic regression,
• Path analysis.
Depending on the nature of the data, other methods of analysis were applied (a graphical
representation of variables for exploratory insight into the nature of distributions, etc.).
RESEARCH RESULTS
Reliability of variable systems

Before the analysis of data, it is necessary to determine to what extent the set of variables „hits”
the construct that is the basis of the research, namely, the construct of organizational
effectiveness and the construct of creativity. For this verification, an item analysis was
performed, and a reliability test was applied by calculating the Cronbach's alpha4.
The high value of Cronbach’s alpha (Cronbach alpha: .966550) suggests high reliability of the
variables used to include the constructs underlying this study.
The average correlation between variables is low (r = 0.00), which allows discrimination in
identifying the relationship (relation) of individual variables. Detailed analysis of individual
4
Cronbach alpha: .966550) points to the conclusion of the high reliability of the variables used to include the
constructs underlying this research.
174
variables, their contribution to the reliability of the whole sample of variables, indicates the
existence of variables whose exclusion from the sample of variables increases the value of
Alpha (33 variables) and variables whose exclusion from the total sample of variables causes
a decrease in Alpha (77 variables). The first category of variables has a lower value for
explaining the cognitive content to which the overall research is oriented, while the second
category has a high explanatory value.
The results of this test should be kept in mind when reducing a set of variables to a narrower
set of factor variables.
Characteristics of the respondents

Before starting the analysis of the results obtained by the survey, it is necessary to determine
the reliability of making conclusions based on statistical tests that represent the normality of
the distribution of variables. If it turns out that the appropriate distribution of data with the least
odrinal measurement scale is normal5 (Gaussian curve), then stronger parametric tests can be
applied, and if this is not the case, it is necessary to apply less strong parametric tests. The
results of parametric tests applied to data that do not satisfy the premise of normality can be
taken as an orientation in further analysis, but not as a reliable basis for reaching conclusions.
Analysis of demographic characteristics of respondents. The normality requirement is satisfied
by a variable Work experience (RDIS8). Other variables do not meet this requirement, which
must be taken into account when choosing statistical tests (shorter work experience). The
absence of normality in the distribution of most variables limits the reliability of conclusions
about the uniformity of the characteristics of respondents’ attitudes, to which variation
coefficients are indicated (except for the variable STRSP6, in which the variability deviation
from the average values is over 50%).
The gender composition of the sample of respondents deviates from the natural gender structure
of the population, but a ratio of 40:60 in favour of male respondents can be considered
satisfactory for the social circumstances of Croatia.
5
The normal distribution, or Gaussian distribution, is an important family of continuous probability
distributions, with applications in many fields. Members of the normal distribution family are defined through
two parameters, mathematical expectation, and variance σ2.
175
Urban origin of respondents - Data indicate that 90% of respondents are of urban origin, while
10% come from rural areas.
This distribution of respondents is a consequence of intentional sampling appropriate to the

requirements set by the topic of this paper - the requirement of research of inspection and
personnel managers in maritime affairs and its attitude towards creativity.
The school education of the respondents (success in their studies) is one of the prerequisites of
their ability to be involved in modern maritime processes, and especially to create a creative
organizational climate.
The work experience of the respondents measured by the years spent in employment shows
that the respondents belong to the younger generations of professional inspection and personnel
managers in maritime affairs, and these two categories of respondents are almost equal - 51%
vs. 48%. There are only three members of the older generation with over 20 years of work
experience among the respondents.
ATTITUDES ON THE FACTORS OF PROFESSIONAL DEVELOPMENT
Dimensions of professional development

Three following answers were offered to the question „Which dimension do you consider more
important for professional development?”:
1. Subjective - which is manifested in the expressed abilities, self-confidence, interests, and

attitudes, commitment to work, and other personal characteristics of the individual;
2. Objective - which is manifested in the objective conditions for professional advancement:
the existence of jobs and positions that differ in complexity, responsibility, and organizational
level;
3. They are equally important.
The analysis of the received answers shows that the respondents generally attach equal
importance to the subjective and objective dimensions of professional development (three-
quarters of the received answers).
176
This answer can be interpreted as an expression of insufficient immersion of respondents in the
specific importance of the mentioned dimensions of professional development.
Based on the answers of a smaller number of respondents, who gave priority to one of the two
dimensions, it can be stated that a relatively higher share of those who are turned to subjective
assumptions of professional development - 15%, concerning the personality of respondents and
a much smaller share is of those who give priority to objective factors - 9%, which they cannot
influence.
Characteristics of respondents important for successful professional development -

The question „In the following list, circle the number in front of the three characteristics that
you consider most important for the successful professional development of an individual” had
the task to lead respondents to define the priority of personality traits that contribute to
successful professional development. Choosing from the eleven offered traits, the respondents
singled out three traits they give priority to. Here is the list of offered features:
1. High intelligence
2. Nice physical appearance
3. Gender affiliation
4. Social origin and position of parents
5. Pleasant attitude towards people
6. Obedience and non-resentment
7. Moral integrity and independence
8. Work
9. Expertise
10. Reliance on connections
11. Entrepreneurship.
The analysis of the results showed that the three priority characteristics for the successful
professional development of an individual are the following:
1. High intelligence - 37.4%

2. Work - 44.9%
3. Expertise - 49.2%.
177
To these abilities
• Moral integrity and independence - 22.1% and

• entrepreneurship - 26.8% can be added.
The respondents considered the following characteristics to be the least important: gender,
social origin and position of parents, and reliance on relationships.
Based on these findings, it can be concluded that most respondents give priority to subjective
characteristics that are subject to change if the individual is motivated for such a change and if
cultural brakes do not prevent the implementation of the necessary change in an individual’s
behaviour.
Willingness to engage in improving professional development -

Three following answers were offered to the question „How ready are you for intensive
engagement (work, additional training, travel…) in order to improve your professional
development?”:
1. I am not ready at all

2. I am mostly not ready
3. I am, and I am not ready
4. I am mostly ready
5. I am quite ready.
The data shows that three-quarters of respondents chose answers 4 and 5 on the scale - I am
mostly ready and quite ready, and suggests that the jobs of inspection and personnel managers
in maritime affairs, whose work is analysed, are open to learning, which is an important
condition for developing a creative organizational climate.
Analysis of correlation of variables

An indicative observation from the analysis of correlations is that with the growth of education,
the readiness for efforts to further improve professional development decreases (rsp = 0.147
with p <0.012). With the increase in the urban environment in which the respondent grew up
178
in childhood and early adolescence, the readiness for additional efforts for professional
advancement increases (rsp = 0.122 with p <0.037). The same relation is observed in the
positive correlation between the level of school education and readiness for additional
professional advancement (rsp = 0.123 with p <0.037).
Satisfaction of respondents with the outcome and conditions of professional development

The respondents were asked about their satisfaction with the outcome and conditions of
professional development.
1. Satisfaction with one’s professional development.

2. Satisfaction with the general social conditions for the professional development of inspection
and personnel managers in maritime affairs.
3. Satisfaction with the attention paid to the development and motivation of staff in their work.
4. Satisfaction with the opportunity to acquire new professional skills through various
educational programs.
Satisfaction with personal professional development is an aspect of the attitude of respondents

towards themselves which, in 50% of respondents, shows the highest positive attitude (average
level 3.93 with relatively lowest CV = 22.13%) (CV coefficient of variation), and in the other
25% the highest level satisfaction. Only 6.2% show extreme dissatisfaction in this regard.
The opposite attitude was shown by the respondents according to the general social conditions
for the professional development of professionals and inspectors and personnel managers in
maritime affairs (average level 2.86 with relatively highest CV = 39.51), with the proportion
of respondents who show dissatisfaction with social conditions significantly higher - 36, 1%,
of those who express a higher degree of satisfaction - 28.28.7%.
Satisfaction of respondents towards the situation in the organization, especially with the
attitude of employers towards the development and motivation of staff, takes a central position
on the satisfaction scale (average level is 3.42 with CV = 33.04%). It should be noted here that
a significant percentage of respondents are undecided or dissatisfied - 47.7% - in assessing
personnel policy in their organizations.
179
The same can be stated for respondents’ level of satisfaction about the possibility of acquiring
new professional or inspection skills through various educational programs (average level 3.40
with CV = 33.52). Nevertheless, 51.4% of respondents have above-average satisfaction with
the possibility of education.
Analysis of correlation of variables

The analysis of the correlation of variables shows a high positive correlation between the
variable Satisfaction with attention, which the organization dedicates to the development and
motivation of maritime agents, and the variable Satisfaction with the opportunity to acquire
new professional skills through various educational programs. There is also a strong
correlation between the variable Satisfaction with one's professional development and the
variable Satisfaction with attention, which is dedicated to the development and motivation of
staff in the organization. It can be concluded that the respondents perceive the attention paid
in the organization to the development and motivation of inspection and personnel managers
in the maritime sector as an important factor in creating a climate of satisfaction in their
organizations.
Characteristics of the personality of the respondents

The respondents were asked ten questions with implicit introspective assessments of
personality characteristics:
1. I am attracted to tasks or activities whose outcome depends on my abilities and efforts.

2. When I think about my success, I care more about meeting my inner criteria than comparing
myself to others.
3. When I am not interested in any task, I try to do it as best I can.
4. I work on solving tasks, although they require more effort.
5. Dedicating a long time to one problem is a waste of time for me.
6. Problems that require a lot of effort and time attract me.
7. I like tasks or activities that require independence and responsibility.
8. The demands I make on myself in terms of the scope and quality of the work done are within
the limits of what I can, know, and want.
9. I am indifferent if I do not carry out my work obligations.
10. I have the strength to do boring obligations well and on time.
180
The respondents were asked to express their estimates on the following measurement scale:
1. It never applies to me,

2. It rarely applies to me,
3. It sometimes applies to me,
4. It almost always applies to me, and
5. It always applies to me.
The respondents showed the highest level of assessment and mutual agreement (CV) in
question 7.
I like tasks or activities that require independence and responsibility (this characteristic was
identified in 81.6% of respondents) and
8. The requirements I set for myself in terms of the scope and quality of work done are within
the limits of what I can, know, and want (82% of respondents).
Independence and responsibility are important characteristics of creative personalities.
Orientation to activities that rely on abilities and effort, as a characteristic of one’s personality,
was identified by 73.5% of respondents.
About three-quarters of respondents - 75% identified the characteristic of introversion -

reliance on self-esteem without comparing their effects and success with others.
77.6% of respondents identified a tendency towards the increased effort in solving tasks at
work.
The set of personal characteristics that the respondents identified at a slightly lower degree, but
still at the level of „almost always applies to me” concerns the properties that are contained in
the variables in questions 3, 5, 6, and 10.
181
The trait of self-control in a situation when the job requires boring, repulsive, and uninteresting
tasks was identified by 68.9% of respondents, and over a quarter of respondents did not identify
with this characteristic - 28%.
Another characteristic of self-control in a situation when the set task is not of respondent’s
interest was also identified by a high percentage of respondents - 71%. However, even with
this characteristic, over one-quarter of the respondents - 27.8% failed to identify with this type
of self-control.
The question that implies a negative attitude towards the persistence of problem-solving,
contained in the variable Dedicate a long time to one problem for me is lost time, the
respondents were divided into two approximately equal groups, 49.9% of those who identify
with a reluctance to solve problems for a long time and those who identify such a long-term
attachment to solving problems in themselves - 48.7%. The same question asked in a positive
sense Problems that require a lot of effort and time attract me identified 57.6% of respondents
- those who identify a tendency to long-term problem solving and 45% of those who do not
find such a tendency. Finally, the question contained in the variable I am indifferent if I do not
fulfil my work obligations was identified by 75.9% of respondents with grades that indicate
their refusal to identify with indifference to the accepted obligations. There is the biggest
disagreement among the respondents on this issue, which is indicated by the relatively highest
coefficient of variation of 63.40%.
Relationship of subjective characteristics

An analysis of correlations within the batteries of subjective characteristics of respondents
shows that the strongest positive correlation has variables When I am not interested in a task, I
try to deal with it as best I can, and variable I'm working on solving tasks, although they require
more effort.
Variable I am attracted to tasks or activities whose outcome depends on my abilities and efforts
has a strong correlation with other variables of subjective characteristics of respondents:
• When I think about my success, I care more about meeting my inner criteria than comparing
myself to others.
• I work on solving tasks even though they require more effort.
182
• I like tasks or activities that require independence and responsibility.
• The requirements I set for myself in terms of the scope and quality of work done are within
the limits of what I can, know, and want.
The analysis of the creativity of inspectors and personnel managers in maritime affairs required
the grouping of respondents included in the sample into categories according to the value
processes attributed to all attitudes/statements calculated based on the scale applied in the
questionnaire. The variable levelcreat was obtained by calculating the sum of the values
attributed by each respondent to all the claims from the creativity questionnaire. However, this
variable measures respondents’ attitudes towards the level of creativity of the organizations in
which these individuals work. For this research, it was important to assess the level of creativity
for the organization, and it was necessary to determine the indicator of the level of creativity
based on the average grades of all respondents from the same organization.
For this purpose, the average values of several respondents in the same organization were
calculated (for most organizations with one respondent, the individual values were retained)
and in this way, the variables KREORG6 and kreorg_rng were obtained (ranking of the
organization in comparison with the average value of the KREORG variable where the value
is 100 average values of all organizations).
Creativity level measurement scale:
• 0 - Completely not applicable

• 1 - Slightly applicable
• 2 - Largely applicable
• 3 - Fully applicable
Having in mind that the average assessment of the level of creativity, given by all respondents
is 0.396 (median 0.428), it can be stated that in the sample of the observed organizations, the
level of organizational creativity is at „zero” level, that ideas and behaviours are yet to be
developed.
6
Kreorg 4r is an abbreviated name for the creativity of the observed organization for which the shipping agent
works
183
The analysis led to the finding that there is a connection between organizations and the level
of organizational creativity.
This association is strong with a weak negative correlation. The Lambda test suggests that the
level of organizational creativity is more influential in the organization than vice versa. This
finding is significant because it points to the role of inspection and personnel managers in
maritime affairs as a subject of caring for the creative organizational climate. Such a climate is
not born of itself, from the spontaneous initiative of employees, but represents the interest and
action of the leading staff of the organization, especially the role of employers. According to
the assumption based on literature and direct empirical insight, the subjective characteristics
of participants in the practice of maritime companies are an important factor in the acceptance
and development of relationships that characterize the creative organizational climate.
Verification of these hypotheses was performed by testing the correlation by grouping variables
of organizational creativity with the subjective characteristics of the respondents.
The tests of the connection of all variables from the battery of subjective characteristics of the
respondents confirmed that only SKOB47 school education is in a significant connection with
the group variable Kreorg4r The level of creativity of the organization.
The connectivity strength test indicates low levels of that connectivity. The Pearson’s
correlation coefficient shows a weak negative correlation of the observed variables. The
lambda test of the correlation direction of these variables confirms the justification of placing
a group of variables in the position of the dependent variable (inference error is reduced by
9.4% versus 0% if the variable SKOB4 is placed in this position). These results point to the
conclusion that school education is an important channel of intervention for employees in
organizations in the direction of their orientation towards creative behaviour. The relatively
insufficient level of school education of the respondents shows that there is a human factor
inclined to accept the demands of creativity, but that there is no necessary interest in
management structures to encourage such a tendency. A more detailed insight into the
7
SKOB – school education of inspection and personnel managers in maritime affairs. The education variable
measures the degree of education an individual has completed. This variable was also used in the cognitive
engagement model, and it was explained and interpreted there.
184
connection of the Kreorg4r8 variable group with the dimensions of creativity points to the
reasons for the mentioned absence of initiatives to create and develop a creative organizational
climate in the observed organizations.
Special attention is demanded by a variable formulated by the statement “Fights over

conspiracies, traps, over domination and territory, are common elements of life in the
organization” which describes the climate opposite to that postulated as a creative
organizational climate. A review of selected variables reveals that out of their total number,
only two variables belong to a subset of positively formulated claims, and the rest include
negative claims – respondents’ assessments of the lack of creative climate in their
organizations.
Identifying the factors that condition the existence and variation of levels of organizational
creativity in the observed organizations has led to an insight into an important area of
development of organizations and management in maritime affairs. The key finding of this
research can be expressed by the following conclusion: in the sample of the observed
organizations, the level of organizational creativity is at zero. Ideas and behaviours
inherent in the creative organizational climate are just emerging (the average assessment
of the level of creativity given by all respondents is 0.396, and the median is 0.428). To
concretize this finding, an analysis of the relationship between groups of variables of
organizational creativity with potential factor variables of organizational creativity was
undertaken.
Conclusion of the empirical research

The results of this research show that inspection and personnel management is largely
dissatisfied with current organizational practices and are therefore relatively often focused on
adopting modern approaches to improving the effectiveness of inspection and personnel
management, and their tendency to establish a creative organizational climate is positively
correlated with management as a whole, as well as that the observed socio-experiential
characteristics of inspection and personnel management belong to the system of determinants
of their attitudes towards nurturing the climate of creativity. Finally, the personality
8
Kreorg 4r is an abbreviated name for the creativity of the observed organization for which the inspector and
personnel manager works.
185
characteristics of inspection and personnel managers have a significant impact on the formation
of attitudes towards creativity. These findings imply that knowledge of the personality
characteristics of members of maritime management structures can be a significant factor in
achieving a high level of effectiveness of maritime management.
In concluding on the scope of this research, its limitations should be taken into account. The
empirical part of the research encountered certain significant limitations in determining the
sample - the choice of organizations in the sample could not be performed strictly in accordance
with the requirement of chance.
Failure to respond of one part of inspection and personnel managers in maritime affairs and
organizations to the submitted survey material resulted in the deliberate selection of
organizations that are willing to cooperate with researchers. This is certainly important when
generalizing the conclusions drawn from the obtained research results.
To compensate for this limitation, we used the triangulation requirement when analysing the
results. The results of this research confirm that the field of development of maritime
organizations is directed towards learning organizations - whose essential advantage over
classic organizations is a creative organizational climate, openness to innovation of all kinds,
and readiness for change management.
For the practice of development of inspection and personnel managers in maritime affairs, this
research raises the problem of the embryonic state of organizational creativity and ways of its
development to the level that enables these organizations as full competitors in the modern
knowledge economy. The research has shown that fostering trust, accompanied by transparent
measurement of processes and outcomes in current maritime organizations, can serve as a first
step on the rise to highly effective maritime management.
The conclusions of the research show that, although there are significant differences between
different program contents, the most important competencies are the ability of graduate
students to analyse and synthesize and the ability to solve problems. There is a significant
correlation between the opinions of graduates on the importance of general competencies for
employability, on the necessity of acquiring them during their studies, and on the rank of
individual competencies; the most important competencies are the ability to apply theoretical
186
knowledge in practice, the ability to adapt to new situations, the pursuit of quality, information
handling, independence, ability to work in a team, communication skills and interpersonal
skills.
187
6. NAUTICAL TOURISM DESIGN STRATEGY

Mr. Sc. Ivan Brković, University College ARCA, brkovic@viosokaskolaarca.hr
SUMMARY
The future of tourism will be impacted by large-scale social, economic, political,

environmental and technological changes, bringing new and often unseen challenges,
threats and opportunities. These “megatrends” are slow to form, but once they have
taken root, exercise a profound and lasting influence on human activities, processes
and perceptions, including for tourism. Four megatrends are likely to have significant
impacts and relevancefor tourism: a)evolving visitor demand; b) sustainable tourism
growth; c) enabling technologies; and d) travel mobility. Exploring the multi-
dimensional implications of these megatrends to 2040 is important to inform policy
and shape the future of tourism.
Keywords: nautical tourism, megatrend, tourism development,
INTRODUCTION
In the next 50 years, the center of gravity of the world economy is expected to shift to the east
south. By 2030, developing countries are expected to contribute two-thirds of global growth
and half of global output, and will be major destinations for world trade. Emerging economies
such as China and India are increasingly important markets for companies in many industries.
The new middle class is developing rapidly, which will lead to an increase in the consumption
of basic consumer products and other product categories. These demand-side factors mean that
emerging economies are likely to remain favored locations for manufacturing activity, while
significant shifts towards services will see China and other emerging economies gain large
shares of trade in services to the detriment of OECD countries in the long term1. Global tourism
has grown significantly in recent decades, benefiting from the rise of globalization and
technological advances that have led to cheaper plane tickets and also make it easier for people
to plan and book trips and then share their experiences with friends in real time. continued
growth, shifting environmental conditions, technological innovation and changing
demographics are likely to dramatically transform the face of tourism by 2040. To understand
how tourism might develop in the coming decades, this chapter examines those megatrends
most likely to affect the sector. Megatrends record significant, globally relevant, social,
economic, political, environmental and technological changes over the long term. They usually
have a long-term influence and, therefore, have the potential to fundamentally change and work
industries around the world, including the tourism sector. In order to identify and assess the key
megatrend that could affect tourism in the coming years, this paper is based on the responses to
the OECD survey of member countries and partner countries, feedback from participants in the
OECD workshop on analyzing megatrends to better shape the future of tourism (including
representatives of the government, international organizations and industry) results from the
emerging meeting grow twice as fast as in advanced tourism economies. Global travel spending
more than doubled between 2000 and 2016, increasing from $495 billion to $1.2 trillion and
accounting for 7% of global exports of goods and services1. In OECD countries, tourism
accounts for an average of 4.2% of GDP, 6.9% of employment and 21.7% of service exports.
Overall, the projected growth in the tourism sector may both help and hinder the identified key
megatrends. In order to effectively respond to and adapt to these megatrends, policymakers and
industry need to better understand what they are all about and what their likely impact will be
on tourism in the coming decades.
2. OVERVIEW OF GLOBAL MEGATRENDS

Numerous trends have emerged around the world that have the potential to transform society.
The most significant of these are megatrends, as they are large-scale and long-term in nature -
usually relevant for at least two decades.
Therefore, megatrends usually refer to circumstances that will occur around the world in a large
number of countries that can often move the global economy and society in certain directions.
Megatrends are likely to result in significant, long-term changes affecting social, economic,
political, environmental and technological issues. Despite their high potential, they often
develop slowly and follow relatively stable trajectories. Global megatrends likely to affect
1
UNWTO (UN World Tourism Organization) (2017a), UNWTO World Tourism Barometer, Volume 15, June
2017, http://mkt.unwto.org/barometer.
189
countries around the world in the next decade include demography, economic connectivity,
public debt, climate change and urbanization, among others. For example, a megatrend like
urbanization is likely to unlock social and economic opportunities, while straining
infrastructure and resources as more people live in cities. Although the exact outcomes of these
trends are uncertain, informed predictions can be made that will enable governments to begin
taking early steps to plan for them.2. To prepare for megatrends, one must first fully understand
them. Governments around the world need to be proactive and make decisions now that will
have long-term consequences, as well as to address potential challenges and take advantage of
the opportunities that may result. Therefore, policy makers must consider the implications of
megatrends in the areas they are responsible for, including ensuring economic prosperity,
security, social cohesion and environmental sustainability.
The tourism sector and related industries are part of the global economy that should be
influenced by various megatrends. For example, the International Air Transport Association
(IATA) predicts that passenger demand over the next 20 years will be influenced by the Council
of Europe's growing middle class in developing countries, diverse demographics, increasing
liberalization of aviation markets and climate change (IATA, 2016).3. Based on feedback from
member and partner countries, industry and international organisations, this chapter will
explore similar trends, in relation to:
● Increasing visitor demand,

● Sustainable growth of tourism,
● Enabling technologies,
● Travel mobility.
Global tourism has seen steady growth for more than six decades, peaking at an estimated 1.2
billion arrivals in 2016; a figure predicted to rise to 1.8 billion by 2030, with international tourist
arrivals in emerging economies projected to grow twice that of advanced tourism economies.
Global spending on travel more than doubled between 2000 and 2016, rising from $495 billion
2
KPMG and Mowat Centre (2013), Future State 2030: The global megatrends shaping governments,
MowatCentre, Toronto, https://mowatcentre.ca/wp-content/uploads/publications/75_future_state_2030.pdf.
3
IATA (International Air Transport Association) (2016), IATA Passenger Forecast – Global Report,
IATA,www.researchandmarkets.com/reports/3973478/iata-passenger-forecast-global-report.
190
to $1.2 trillion and accounting for 7% of global exports of goods and services 4. In OECD
countries, tourism accounts for an average of 4.2% of GDP, 6.9% of employment and 21.7%
of service exports. The tourism sector and related industries are part of the global economy that
should be influenced by various megatrends. For example, the International Air Transport
Association (IATA) predicts that passenger demand over the next 20 years will be influenced
by the Council of Europe's growing middle class in developing countries, diverse
demographics, increasing liberalization of aviation markets and climate change (IATA, 2016).
Based on feedback from member countries and partner countries, industry and international
organizations, this part of the paper will show similar trends, in relation to:
● Increasing visitor demand,

● Sustainable growth of tourism,
● Enabling technologies,
● Travel mobility.
Global tourism has seen steady growth for more than six decades, peaking at an estimated 1.2
billion arrivals in 2016; a figure predicted to rise to 1.8 billion by 2030, with international tourist
arrivals in emerging economies projected to grow twice that of advanced tourism economies.
Global travel spending more than doubled between 2000 and 2016, rising from USD 495 billion
to USD 1.2 trillion and accounting for 7% of global exports of goods and services. In OECD
countries, tourism represents an average of 4.2% of GDP, 6.9% of employment and 21.7% of
service exports5.
3. A MEGATREND THAT WILL TRANSFORM TOURISM

Overall, projected growth in the tourism sector may be helped and hindered by the key
megatrends that have been identified. In order to effectively respond and adapt to megatrends,
policymakers and industry need to better understand what the impacts are and are likely to have
on tourism in the coming decades.
4
KPMG and Mowat Centre (2013), Future State 2030: The global megatrends shaping
governments, MowatCentre, Toronto, https://mowatcentre.ca/wp-
content/uploads/publications/75_future_state_2030.pdf.
5
OECD (2016a), OECD Science, Technology and Innovation Outlook 2016,
OECD,www.oecd.org/sti/Megatrends%20affecting%20science,%20technology%20and%20innovation.pdf.
191
Megatrends are transforming tourism. When considering its likely development over the
coming decades, it is clear that tourism will be transformed by major social, economic, political,
environmental and technological changes.
Although they are slowly formed, once such "megatrends" have been eradicated, they engage
in a deep and lasting influence on human activities, processes and perceptions.
Megatrends bring new and often unprecedented challenges, threats and opportunities whose
impacts can vary between the economy as a whole and individual sectors. While we cannot be
sure how these impacts will present themselves to tourism, we can be sure that the structure of
the tourism economy will develop significantly between now and 2040, such as:
a) income and education levels are rising in emerging economies, the global population
continues to age, and new consumer groups are emerging;
b) that the global economy continues to move towards a low level of resource efficiency;
c) enabling technologies and platforms for joint use / joint use of classes to create new tourist
markets and business models; and
d) expected growth in the number of visitors, security issues and changes, changes in travel
facilitation policies, transport innovations, access infrastructure and aviation regulations affect
travel mobility.
It is crucial for governments and industry to explore and understand the multidimensional
implications of these megatrends in order to inform policy and shape the future of tourism. A
detailed discussion of such trends will better enable policymakers to bring currently unforeseen
and new issues onto the strategic policy agenda, develop potential scenarios and policy
responses, and better assist public and private actors to seize opportunities and challenges as
they arise.
192
4. STRUCTURAL CHANGE OF TOURISTS
Over the next few decades, the structure of the visitor economy will evolve as income and
education levels increase in emerging economies, gender imbalances are addressed, the global
population continues to age and new consumer groups emerge. In combination, these factors
will influence travel preferences as well as travelers' expectations. Although expected to grow
more slowly than in the past, the world's population is forecast to grow from 7.4 billion in 2015
to 9.7 billion in 2050, driven by growth in developing countries. Changing demographics will
have a major impact on visitor demand in the coming years. In particular, trends such as the
steady growth of the global middle class and aging. Populations mean that the global population
will generally be wealthier and older decades ahead. In addition, the prominent generation of
generations will further increase to take into account the current considerations that drive the
tourism market. Indeed, "millennials" and Generation Z will become key forces in mobility and
their travel behavior could lead to significant shifts in the tourism market.
As a result of these trends, not only the way people travel will change, but their needs and
requirements are likely to be quite different compared to tourism today - prompting new
opportunities and challenges for the future and a likely departure from the currently dominant
Western viewpoint that defines travel, vacations, and related practices6. Due primarily to
increased wealth in emerging economies, the world is experiencing: a significant and rapid
expansion of the global middle class. This large increase in the center's purchasing power and
spending class is likely to play a major role in the world's economies in the coming years.
Confirmed, given that the trend is estimated to break the world of years for the majority of the
world's population who are considered middle class7. Not only is the middle class expanding,
but it is doing so at a rapid rate. This trend will have wide implications, especially as the
growing demographic will have more consumption. The combination of this growth and
advances in technology means that middle class people will have greater access to goods and
services around the world.
6
Kyyrä, S. and O. Rantala (2016), Disoriented travellers or disoriented destinations? An
analysis of future travel trend studies for Visit Arctic Europe project. Unpublished
manuscript.
7
Kharas, H. (2017), The Unprecedented Expansion of the Global Middle Class: An Update,
Global Economy and Development at Brookings, Washington, DC,
www.brookings.edu/wp-content/uploads/2017/02/ global_20170228_global-middle-
class.pdf.
193
Despite this massively intensive expansion of the global middle class, the coming decades will
present other challenges. For example, the impact of technology and automation on the
workforce is one issue that could fundamentally change the number of people in the middle
class8. Indeed, inequality may continue to grow within this large demographic group.
Furthermore, growth trends differ in different parts of the world. The fast-growing middle class
mostly comes from emerging economies. Countries in the developed world will experience
much slower expansion, and in some Western jurisdictions it has stalled or declined. As the
middle class grows in developing economies, these parts of the world will play an increasingly
important role as a source of global tourism markets.
5. KEY FACTS AND PROJECTIONS

At the end of 2016, there were approximately 3.2 billion people considered to be in the middle
classes worldwide. About 150 million people join this demographic each year, with the majority
(an estimated 88%) living in Asia9. As of 2015, the global middle class spent $35 trillion
annually - about one-third of the world's total economy - however, this figure is projected to
nearly double ($29 trillion) by 2030, with only $1 trillion of the increase coming from
developed economies10. Other projections show that by 2030, this rapidly growing middle class
will result in increased population in major cities, especially in Asia 11.
One such example is reflected in the rise of multi-generational travel, which often includes
families, and which is encouraged by older tourists with high spending and significant leisure
time. About one third of retired people traveled with people of other generations12 (Age Wave
and Merrill Lynch, 2016). A unique challenge for destinations represented by a growing market
is the ability to develop and coordinate activities of interest to all members of the travel party.
8
Bremmer, I. (2016), These 5 Facts Explain the Unstable Global Middle Class, TIME,
http://time.com/4198164/these-5-facts-explain-the-unstable-global-middle-class/.
9
Kharas, H. (2017), The Unprecedented Expansion of the Global Middle Class: An Update,
Global Economy and Development at Brookings, Washington, DC,
class.pdf.
10
Ibidem
11
ESPAS (European Strategy and Policy Analysis System) (2015), Global Trends to 2030:
Can the EU meet the challenges ahead?, ESPAS, http://ec.europa.eu/epsc/sites/epsc/files/espas-
report-2015.pdf.
12
Age Wave and Merrill Lynch (2016), Leisure in Retirement: Beyond the Bucket List,
Merrill Lynch Bank of America C orpora tion, https://age wa v e.com/wp-
content/uploads/2016/05/2016 -Leisure-in- Retirement_Beyond-the-Bucket-List.pdf. ators
Research, Vol. 127, No. 1, pp. 303-322
194
Another target segment that is likely to experience significant growth in the coming years is
that of medical tourism. As the cost of medical insurance and procedures, whether for health or
cosmetic purposes, will continue to rise in developed economies, emerging economies are
becoming attractive options. As the quality of doctors and infrastructure improves and costs
remain low, relative to those in the original markets, tourists are likely to consider traveling
abroad for wellness purposes and/or combining a medical procedure with a short vacation.13
(Alén et al ., 2015).
6. CONSEQUENCES FOR THE TOURISM SECTOR

All of these demographic factors appear to represent significant growth opportunities for the
tourism industry. As the population ages and more people enter the retirement phase of their
lives, they are more likely to spend their income and savings on leisure activities such as travel.
Similarly, the overall growth of the middle class will mean that more people are likely to spend
on activities such as tourism. Although there is significant potential for tourism growth related
to the expansion of the global middle class, challenges may arise in the future. As the population
in Asia sees the most significant growth in the middle class, it is likely to experience the most
significant increase in demand in search of travel and tourism. However, the tourism industry
may have to consider potential conflicting interests, with rapid growth in emerging markets
contrasting with slow growth in developed economies.14. Furthermore, middle class growth
may not be stable, with the current trajectory vulnerable to the impact of geopolitical or
macroeconomic instability, while automation and new technologies could alter growth patterns
and expectations. Governments and industry will need to continue to monitor these signals,
assess their likely impacts and adjust long-term strategies and target markets where necessary.
With the aging of the global population, non-stop transport to and from destinations (including
the challenge of the "first" and "last" miles - traveling from a person's home to an airport, seaport
or train station, and then further from their point of travel to their destination ) is a strategic
issue that will increasingly have to be addressed. Tourism infrastructure, modes of transport
and information provision will need to be carefully designed and worked with to accommodate
more users with reduced mobility and limited communication skills, to help tourists navigate
13
Alén, E., N. Losada and T. Domínguez (2015), “The Impact of Ageing on the Tourism
Industry: An Approach to the Senior Tourist Profile”, Social Indic
14
Kharas, H. (2017), The Unprecedented Expansion of the Global Middle Class: An Update, Global
Economy and Development at Brookings, Washington, DC, www.brookings.edu/wp-
content/uploads/2017/02/ global_20170228_global-middle-class.pdf.
195
their destinations more safely. In the context of mobility, universal design refers to those
transport systems that cater for different abilities and needs. Adopting such an approach can
expand potential tourism markets to people with special needs, while also benefiting travelers
without mobility impairments. For example, footpath ramps provide access for tourists with
reduced mobility or wheelchair users, but also convenience for those with wheeled luggage or
parents traveling with a child in a wheelchair. Although the purchasing power of the elderly
population is predicted to remain high in the coming decades15 , the current trajectory could
change if work becomes less stable and retirement ages in countries continue to rise. This could
lead to an increased difference in power consumption for those approaching retirement in 2040.
Flexibility will be crucial to effectively respond to their evolving needs and changing
expectations. Various circumstances can influence the travel decisions of older tourists. For
example, those still in the workforce are more likely to make leisure travel decisions based on
whether they have the money or time to do so, while the travel decisions of those in retirement
are more likely to be influenced by their health status.16. It goes without saying that those people
who need to continue working beyond the traditional retirement age simply because they are
healthy enough to travel are unlikely to factor into any travel decision. Despite the predicted
market increase over the 60s in the coming years, "Millennials, Generation Z" and other
emerging generations will represent the majority of domestic and foreign tourists by 2040. An
increasing number of them will be middle-class and from emerging markets, for example,
recent research has found that Millennials in China - which have seen significant growth in the
middle class - place more importance on travel than Millennials in other countries 17. The
tourism sector will have to adapt to these trends and adopt innovative approaches in order to
meet the new demands and specific preferences of these individual groups. New Zealand's
marketing strategy in response to the growing importance of China as a source market is one
such example is given below. New Zealand Marketing to Chinese Travelers New Zealand has
already experienced some of the impact of the resulting visitor demand. China is currently New
Zealand's fastest growing source market and second largest overall. New Zealand's Ministry of
Business, Innovation and Employment predicts Chinese tourist visits will double between 2017
15
Dobbs, R., J. Manyika, J. Woetzel, J. Remes, J. Perrey, G. Kelly, K. Pattabiraman and H. Sharma
(2016), Urban World: The Global Consumers to Watch, McKinsey Global Institute.
16
Alén, E., N. Losada and T. Domínguez (2015), “The Impact of Ageing on the Tourism
Industry: An Approach to the Senior Tourist Profile”, Social Indicators Research, Vol. 127, No. 1,
pp. 303-322.
17
Airbnb (2016), Airbnb and The Rise of Millennial Travel, Airbnb, ww w.airbnbcitizen.com/wp-
content/uploads/2016/08/MillennialReport.pdf.
196
and 2023, expecting to grow to 913,000 visitors spending NZ$4.3 billion annually. These trends
have prompted New Zealand to develop efforts focused on helping the tourism industry respond
to the influx of Chinese travelers. The government's efforts also include a shift towards
independent travelers and away from tour groups. In light of this change, the Ministry of
Business, Innovation and Employment commissioned the China Visit Insight Program in 2015
to help the tourism industry better understand the needs and preferences of independent
travelers from China. The program provides webinars and online services on topics such as
market-specific product development and social media outreach. It is focused on marketing to
independent travelers as they are believed to be more likely to stay longer and travel further
distances. Workshops developed to support these efforts were attended by more than 1,000
tourism operators. Furthermore, the government is taking steps to encourage Chinese travelers
to visit during peak periods and new and newer destinations within New Zealand. Also, as part
of its efforts to assist the travel of visitors from China, the New Zealand government has been
streamlining visits for travelers from that country, such as extending the timeline for multiple
entry visas for Chinese visitors and giving them access to expedited border processing.
7. SUSTAINABLE GROWTH OF TOURISM

Tourism is widely recognized as a human activity that depends on natural resources and at the
same time contributes to the depletion of these same resources. As for many sectors, tourism is
a relevant factor in energy consumption and greenhouse gas production. It also contributes to
fresh water and land use, environmental degradation and unsustainable food consumption. The
sector also has various impacts on global biodiversity. The interconnection of tourism with
these resources can be direct or indirect, and although all tourism activities are ultimately local,
they add to phenomena of global significance. At the same time, tourism can also raise
awareness of cultural and ecological values, help finance the protection and management of
protected areas, and increase their economic value and importance. Built on the principles of
broad stakeholder engagement and principles of sustainable development, tourism can
contribute to inclusive growth by providing employment opportunities and economic
development in urban and rural areas and promote social integration. Tourism can play a key
role in driving the transition to a low-carbon, low-resource economy. Due to its combined
nature and close connection with many sectors, even small improvements will have an
important impact. In recognition of tourism's potential to advance the universal 2030 Agenda
for Sustainable Development - by integrating sustainable patterns of consumption and
197
production that are resource efficient and result in improved economic, social and
environmental outcomes - 2017 has been declared the UN International Year of Sustainable
Tourism for Development18.

Estimates of tourism-related emissions include all domestic and international leisure and
business travel, with an emphasis on transportation to and from destinations, accommodation
and activities at destinations. Collectively, the tourism sector is estimated to contribute
approximately 5% of global greenhouse gas emissions19. A more complete analysis would also
include food and beverages, infrastructure construction and maintenance, as well as tourism
retail and services. Transportation is responsible for about three quarters of the total tourist
traffic (aviation makes up 40% and cars about 32%), followed by accommodation (more than
20%) and cruises. International aviation has increased its emissions by 83% since 1990,
generating an estimated 781 million tons of carbon in 201520. In a business-as-usual scenario,
the sector is estimated to generate three times that amount by 2035 21. Tourism also depends on
fresh water sources and is an important factor in the local use of fresh water. Tourists need and
consume water when showering or using the toilet, when participating in activities such as
skiing (making snow) and when using spas, saunas, wellness areas or swimming pools. Fresh
water is also needed for the maintenance of hotel gardens and golf courses, and is embodied in
the development of tourist infrastructure (including accommodation), food and fuel production.
Changes in the availability or quality of water resources can have negative impacts on tourism22.
The growth of tourism and the trend towards higher standard accommodation and more
intensive activities on the water and the reduction of water resources will lead to increased
pressure on water resources in many destinations. As a consequence, tourism development may
18
UN (United Nations) (2017), World Population Prospects: The 2017 Revision, Key Findings
and Advance Tables, Department of Economic and Social Affairs, Population Division,
United Nations, New York,
https://esa.un.org/unpd/wpp/Publications/Files/WPP2017_KeyFindings.pdf.
19
UNWTO (2017b), “FAQ – Climate Change and Tourism”, in Sustainable Development of Tourism,
UNWTO, http://sdt.unwto.org/content/faq-climate-change-and-tourism (accessed 25 October 2017).
20
ATAG (Air Transport Action Group) (2016), Facts & Figures, ATAG www.atag.org/facts-and-
figures.html.
21
CREST (Center for Research in Economics and Statistics) (2016), The Case for
Responsible Travel: Trends & Statistics 2016, Center for Responsible Travel, Washington,
DC, www.responsibletravel.org/whatWeDo/
The_Case_for_Responsible_Travel_2016_Final.pdf.
22
OECD (2015), “A Review of Effective Policies for Tourism Growth”, OECD Tourism Papers,
2015/01, OECD Publishing, Paris, http://dx.doi.org/10.1787/5js4vmp5n5r8-en.
198
become less feasible or impossible due to declining water quality and the costs associated with
providing fresh water. Impacts will ultimately depend on several factors, including the relative
scarcity of fresh water in existing and potential tourism destinations, competition from other
economic sectors such as agriculture or biofuels, and the structure of the tourism industry (e.g.
small guesthouses versus large tourist hotels) and level of use. of water per overnight stay of
the guest. Regional conflicts over water use have already been recorded23, and they are
predicted to increase in the future due to increased demand and declining supply.
Food production and waste minimization have wide-ranging implications for sustainability. For
example 24, it is estimated that 25 billion tourist days were spent in 2005 alone. At an average
of three meals per tourist per day, this amounts to approximately 200 million meals per day.
When the number of international arrivals increased by over 50% by 2016, this figure increases
to 300 million per day. Consequently, hotels have significant power over food production and
waste minimization and can directly influence sustainable food production through regional or
organic food procurement policies. For example, the Scandic hotel chain's initiative to buy only
organic and fairly traded coffee affects the 20 million cups of coffee served annually25.
Each year, the World Travel and Tourism Council (WTTC) recognizes travel destinations and
businesses for best sustainability practices related to community, environment, innovation and
people. His latest report identified a number of key trends that provide insight into the future of
sustainable tourism26 :
● There was a significant increase in the quality and quantity of applications from urban
destinations, highlighting the growth of urban tourism as well as the increased use of tourism
for economic development by municipal authorities.
23
ITP (International Tourism Partnership) (2013), Water Risk Assessment, Stockholm
International Water Institute (SIWI).
24
UNWTO-UNEP (2008), Climate Change and Tourism – Responding to Global Challenges, UNWTO,
Madrid.
25
Gössling, S., B. Garrod, C. Aall, J. Hille and P. Peeters (2011), Food management in
tourism, Reducing tourism’s carbon ‘foodprint’, Tourism Management 32(3): 534-543.
26
WTTC (World Travel and Tourism Council) (2016), Sustainable Tourism: The Past, Present
and Future, World Travel and Tourism Council, www.wttc.org/-
/media/files/reports/special-and-periodic-reports/ sustainable-tourism_past-present-
future.pdf?la=en.
199
● Preservation of biological diversity has always been a constant priority over time. However,
as a result of the global push for climate action, climate change and greenhouse gas emissions
are increasingly seen as critical elements of any sustainability initiative.
● Social enterprises are becoming increasingly engaged in the tourism sector, partly due to the
role of social media and mobile technology in connecting people quickly and easily.
● The "people" aspect has become more prominent in the tourism sector, resulting in greater
promotion of employment, training and workforce participation as key drivers for industry
development.
● There is a greater focus on measuring and evaluating sustainability initiatives, which in turn
has raised general standards in this area.
9. CONSEQUENCES FOR THE TOURISM SECTOR

The consequences of climate change will be felt in the travel and tourism sector over the coming
decades. Existing tourism offerings in many countries will become challenged as the physical
environment changes and extreme weather events become common. For example, much of
international tourism occurs in coastal regions, which are under significant threat from storms,
floods and tidal surges. Southern destinations are likely to face extreme heat in the summer
seasons, and northern destinations that rely on winter outdoor activities will face shorter periods
of snowfall, leading to potentially greater seasonal variation in many countries. For both
government and industry, this will require serious rethinking of how travel activities are offered
and how tourism is managed in the long term (box 2.2). It will become increasingly important
for governments and industry to work together on a proactive approach to ensure the sustainable
development and management of attractions for the benefit and enjoyment of local communities
and tourists, both in the short and long term.
With international arrivals expected to reach 1.8 billion by 2030, and domestic arrivals
potentially four times that figure, the transition to a low-carbon, low-resource economy presents
a number of opportunities and challenges for tourism policymakers. They include the need to
better understand the current and potential impacts of different forms of tourism on the
200
environment and natural resources and provide the right incentives throughout the value chain
to promote sustainability, and demonstrate that environmental policies can also be good for
business.
In order to achieve greater efficiency, in addition to investing resources in green structures and
cross-sector synergies, it is necessary to consider different drivers of sustainability 27 (UNEP,
2011). They include, for i) increased costs and additions to carbon; government incentives; eco-
labels; as well as regulations / laws on energy efficiency; ii) water - price structures that reflect
water scarcity and responsible water management; and iii) biodiversity - regulation on sensitive
ecosystems, as well as national policy that attracts revenue through tourism to protect critical
biological habitats. According to such a green investment scenario, tourism could make a
greater contribution to GDP growth, while significantly reducing water consumption, energy
consumption and CO2 emissions compared to a business-as-usual scenario. In this context, due
to its combined and fragmented nature, tourism policy needs to be considered in a broader
policy context. Support and leadership from policy makers at the highest level can help ensure
consideration of the tourism impacts of related areas and initiatives. Linked between different
policy areas, together they create a combination of policies that shape how tourism develops in
the short, medium and long term. Therefore, an integrated government approach, with the role
and support of industry and civil society, is needed to address the multiple challenges facing
the tourism industry. They include the protection, management and enhancement of natural and
cultural resources and the development of infrastructure and skills necessary to meet expected
future needs. Such an approach will help ensure the longevity of tourism as an economic and
social force by focusing on environmental sustainability, inclusiveness, diversification,
innovation and strategic productivity improvements; rather than simply reacting or striving to
meet short-term goals to stabilize, adapt, or transition to new market opportunities.
10. ENABLING TECHNOLOGIES

New technologies continue to transform markets and sectors around the world, and the pace
and scale of disruption appears to be accelerating. From the sharing economy to the Internet of
Things, to autonomous vehicles and artificial intelligence and nanotechnology to big data
27
UNEP (2011), Towards a Green Economy: Pathways to Sustainable Development and
Poverty Eradication – A Synthesis for Policy Makers, www.unep.org/greeneconomy.
201
analytics, a range of new innovations promise to unlock more possibilities for people around
the world. Together, these trends could make travel more affordable, efficient and accessible to
many people. The conceptualisation of intermediaries is likely to mean that long-standing
models of tourism in areas such as accommodation or travel agencies will continue to be
radically reshaped, with more travelers connecting directly via a technology platform with a
service provider, rather than dealing with a hotel, agent or professional travel agent.
Policymakers will need to consider how to provide an enabling environment that promotes
innovation as new technologies emerge, with the potential benefit of more easily connecting
tourists to a wider range of business partners and destinations. But at the same time, new
technologies will have complex and less understandable consequences for workers employed
in the tourism industry. For example, the emergence of new technologies that can automate
human tasks through machine learning and artificial intelligence could completely change the
way people work, what they do, and generally how many jobs are available. Policy makers must
also consider how to manage these rapid changes to mitigate potential negative consequences.
In recent decades, technological advances have made travel more affordable, accessible and
simple for many people, and in the future technology has the potential to completely change
what tourism is considered to be (eg integrated tickets, mobile payment systems). For example,
as virtual reality technology continues to improve, one would imagine that virtual tourism could
supplement or replace physical travel for some travelers. Conversely, as people live
increasingly digital and connected lives, the opportunity to unplug and have an analog, natural
experience while traveling may become the preferred alternative to a purely digital experience.
How people's behavior will change in light of these types of paradigm-shifting technologies is
not yet clear, but the technology presents both broad opportunities and challenges to those who
want to ensure that their national and local economies are best positioned to thrive in the world
of tourism in 2040.

Digital platforms are often used to inform travel and their influence is likely to grow in
the coming decades. Indeed, online platforms are used to advertise and book vacations
online, making planning simpler and easier for travelers. In particular, social media is
often used to influence the decisions of emerging generations, such as Millennials or
Generation Z. While the increasing connectivity of social media presents opportunities
for these marketing destinations, it can also pose a threat to vulnerable destinations
(community, cultural or ecological attractions) unprepared or unsuitable for the rapid
202
growth of tourist traffic due to sudden popularity on one of several platforms. However,
as environmental conservation efforts must become more flexible, technology can also
be a solution. Despite the potential challenges, digitization is expected to greatly benefit
the tourism sector, generating an estimated value of between USD 305 billion between
2015 and 2016. During the same period, digitization in the airline, travel and tourism
industries is estimated to shift $100 billion worth of value from traditional players to
new competitors and create $700 billion worth of value28 (WEF,2017). However,
although the use of digital platforms can bring user benefits and increase passenger
accommodation capacity, there are also challenges that disrupt the traditional system.
In particular, economic division has grown rapidly in the last five years and has
encompassed a significant part of economic activities. Growth is most significant in
transport and accommodation, but continues in many other sectors as well. The top five
sectors of the sharing economy could see global revenues jump from $15 billion in 2014
to $335 billion by 202529. Home-sharing platforms such as30 Airbnb, HomeAway and
Couchsurfing are now significant competitors to the hospitality industry - Airbnb is
valued at $30 billion31, matching Hilton at $19 billion and Marriott at $35 billion.
Airbnb bookings continue to grow at a rapid pace, from 4 million room nights in 2011
to 40 million in 2014 and a projected 80 million in 2017 (Duryee, 2012; Somerville,
2015). Only one in 10 travelers from the United States used private accommodation in
2011, a figure that jumped to a third by 2015 (Quinby, 2016). However, concerns were
expressed about the quality of accommodation in houses compared to hotels. Some
jurisdictions have made progress in regulating home sharing, but many are still
determining how best to respond to its emergence and growth. Future growth in the
hospitality and tourism experience can also be expected in the economic divide, as
consumers become more comfortable and familiar with the opportunity to eat in
someone's home when traveling (via platforms such as BonAppetour and VizEat) or
take advantage of a tour or personalized experience via platforms such as Vayable,
ToursbyLocals and most recently through the Airbnb Trips feature32 that offers tours
and unique host experiences. Rapid advances in automation through robotics, machine
learning, and artificial intelligence are poised to disrupt labor markets worldwide over
the next two decades, potentially eliminating up to 69% of existing jobs in India, 47%
28
WEF (World Economic Four) (2017) Digital Transformation Initiative: Aviation, Travel and Tourism
Industry,White Paper, in collaboration with Accenture,
www.accenture.com/t20170116T084449 w /us-en/_acnmedia/Accenture/Conversion-
Assets/WEF/PDF/Accenture-DTI-Aviation-Travel-and-Tourism-Industry- White-Paper.pdf.
29
PwC (2015), “The Sharing Economy”, in Consumer Intelligence Series, PwC,
www.pwc.com/us/en/technology/publications/assets/pwc-consumer-intelligence-series-the-
sharing-economy.pdf.
30
Airbnb (2016), Airbnb and The Rise of Millennial Travel, Airbnb, www.airbnbcitizen.com/wp-
content/uploads/2016/08/MillennialReport.pdf.
31
Ibidem
32
Ibidem
203
in the United States, and 30% in the United Kingdom (Frey and Osborne, 2013; Kim,
2016). However, these disruptions in sectors ranging from manufacturing to retail to
administration are also likely to deliver more efficient, affordable goods and services
across a range of areas.
12. DEVELOPING PARTNERSHIPS WITH INDUSTRY, OTHER

GOVERNMENTS AND KEY STAKEHOLDERS
The effects of megatrends and the policymaking process in general intersect more sectorally
and jurisdictionally than ever before. Travel mobility issues involving visa and security
coordination across jurisdictions, sustainable approaches to tourism for resources shared
between countries, and the challenges of regulatory digital platforms operating globally all
illustrate the increased need to think beyond local and national issues to achieve effective
responses. Refocusing and investing in international and regional forums that effectively look
at horizontal issues and develop shared governance and policy responses is one way to ensure
balanced and effective responses. Furthermore, greater cooperation with key stakeholders
(industry and civil society) in tourism and related sectors should also be a priority. For example,
the Turkish Ministry of Culture and Tourism recently brought together over 300 tourism
stakeholders, including ministers, tourism leaders, local authorities and NGOs at a Tourism
Council meeting, to better understand key tourism trends and inform the preparation of a new
long-term tourism strategy and action plan. Understanding how best to accommodate the
infrastructure needs of older residents will require discussions with officials and representatives
from finance, infrastructure, housing, planning, social services and many other ministries.
Tourism policy makers will play a key role in articulating the issue, but policy tasks often lie
elsewhere. The need to work more closely with industry and ensure that the perspectives of
SMEs, emerging businesses and traditional operators are understood is vital as the sector takes
a different shape in the coming years and decades. Policy makers need to ensure that, while
developing approaches that prioritize the public interest, the perspectives of businesses that are
at the cutting edge of new and innovative approaches to service delivery are key to shaping
these decisions. Industry and industry views that consider medium- and long-term issues on
which action is a priority offer one possible way of developing and ensuring close and regular
engagement.
204
13. FINAL CONSIDERATION - TAKING STEPS TOWARDS A FUTURE-
PROOF TOURISM POLICY
Governments can often be challenged when faced with rapid change and a shift to the status
quo. Promoting a culture of innovation and change management within government is critical
to ensuring that long-term megatrends are taken into account in the decision-making process.
The use of innovation labs and design labs that address issues of the future through creative
engagement with a wide range of internal and external stakeholders is one potential means of
promoting a culture of continuous improvement and future-oriented thinking. Long-term
scenario planning exercises are another way to start conversations about potentially
transformative changes on the horizon. Examples of government approaches include Finland's
National Forecasting Network, which was designed to use data to inform decisions and prepare
for the future, as a potential model for forecasting and preparing for change33 (Hartikainen,
2015), while the Austrian Federal Ministry of Science, Research and Economics conducted an
extensive study and scenario planning to address trends that specifically affect the tourism
sector. Tourism-focused policymakers will also need to work closely with colleagues in other
ministries to develop systems that can measure and monitor megatrends such as demographic
change to better prepare for their impact. Where these systems already exist, they should be
used to anticipate and prepare for the potential changes in policy and service provision that may
be required. These systems also require reliable data to analyze and stay abreast of key
megatrends, how they are developing and whether corrections or adjustments in direction are
occurring or require action.
Finally, in a public sector environment where data increasingly drives decisions, the ability to
use and make sense of that data becomes increasingly important. Tourism policy makers must
ensure that they have the capacity to make data-driven decisions or that other departments with
this capacity are fully aware of key tourism trends and issues that play a supporting role.
33
Hartikainen, E. (2015), Strategic Government Programme calls for foresight information, Sitra,
www.sitra.fi/en/news/strategic-government-programme-calls-foresight-information/.
205
LITERATURE:
➢ Age Wave and Merrill Lynch (2016), Leisure in Retirement: Beyond the Bucket List,
Merrill Lynch Bank of America C orpora tion, https://age wa v e.com/wp-
content/uploads/2016/05/2016-Leisure-in- Retirement_Beyond-the-Bucket-List.pdf.
➢ Airbnb (2016), Airbnb and The Rise of Millennial Travel, Airbnb,
www.airbnbcitizen.com/wp-content/uploads/
➢ 2016/08/MillennialReport.pdf.
➢ Alén, E., N. Losada and T. Domínguez (2015), “The Impact of Ageing on the Tourism
Industry: An
➢ Approach to the Senior Tourist Profile”, Social Indicators Research, Vol. 127, No. 1,
pp. 303-322.
➢ Bremmer, I. (2016), These 5 Facts Explain the Unstable Global Middle Class, TIME,
http://time.com/4198164/these-5-facts-explain-the-unstable-global-middle-class/.
➢ CREST (Center for Research in Economics and Statistics) (2016), The Case for
Responsible Travel: Trends & Statistics 2016, Center for Responsible Travel,
Washington, DC, www.responsibletravel.org/whatWeDo/
The_Case_for_Responsible_Travel_2016_Final.pdf.
➢ Dobbs, R., J. Manyika, J. Woetzel, J. Remes, J. Perrey, G. Kelly, K. Pattabiraman and
H. Sharma (2016),Urban World: The Global Consumers to Watch, McKinsey Global
Institute.
➢ ESPAS (European Strategy and Policy Analysis System) (2015), Global Trends to
2030: Can the EU meet the challenges ahead?, ESPAS,
http://ec.europa.eu/epsc/sites/epsc/files/espas-report-2015.pdf.
➢ Gössling, S., B. Garrod, C. Aall, J. Hille and P. Peeters (2011), Food management in
tourism, Reducing tourism’s carbon ‘foodprint’, Tourism Management 32(3): 534-543.
➢ Hartikainen, E. (2015), Strategic Government Programme calls for foresight
information, Sitra, www.sitra.fi/en/news/strategic-government-programme-calls-
foresight-information/.
➢ IATA (International Air Transport Association) (2016), IATA Passenger Forecast –
Global Report, IATA,www.researchandmarkets.com/reports/3973478/iata-passenger-
forecast-global-report.
➢ ITP (International Tourism Partnership) (2013), Water Risk Assessment, Stockholm
International Water Institute (SIWI).
➢ Kharas, H. (2017), The Unprecedented Expansion of the Global Middle Class: An
Update, Global Economy and Development at Brookings, Washington, DC,
class.pdf.
➢ Kyyrä, S. and O. Rantala (2016), Disoriented travellers or disoriented destinations? An

analysis of future travel trend studies for Visit Arctic Europe project. Unpublished
manuscript.
206
➢ KPMG and Mowat Centre (2013), Future State 2030: The global megatrends shaping
governments, Mowat Centre, Toronto, https://mowatcentre.ca/wp-
content/uploads/publications/75_future_state_2030.pdf.
➢ OECD (2015), “A Review of Effective Policies for Tourism Growth”, OECD Tourism
Papers, 2015/01, OECD Publishing, Paris, http://dx.doi.org/10.1787/5js4vmp5n5r8-en.
➢ PwC (2015), “The Sharing Economy”, in Consumer Intelligence Series, PwC,
www.pwc.com/us/en/technology/publications/assets/pwc-consumer-intelligence-
series-the-sharing-economy.pdf.http://dx.doi.org/10.1787/9789282108000-en.
➢ UN (United Nations) (2017), World Population Prospects: The 2017 Revision, Key
Findings and Advance Tables, Department of Economic and Social Affairs, Population
Division, United Nations, New York,
https://esa.un.org/unpd/wpp/Publications/Files/WPP2017_KeyFindings.pdf.
➢ UNEP (2011), Towards a Green Economy: Pathways to Sustainable Development and
Poverty Eradication – A Synthesis for Policy Makers, www.unep.org/greeneconomy.
➢ UNWTO (UN World Tourism Organization) (2017a), UNWTO World Tourism
Barometer, Volume 15, June 2017,
➢ UNWTO (2017b), “FAQ – Climate Change and Tourism”, in Sustainable Development
of Tourism, 25 October 2017). Edition, Madrid, Spain.
➢ UNWTO-UNEP (2008), Climate Change and Tourism – Responding to Global
Challenges, UNWTO, Madrid. UNWTO and WTTC (2012), The Impact of Visa
Facilitation on Job Creation in the G20 Economies,
➢ WEF (World Economic Four) (2017) Digital Transformation Initiative: Aviation,
Travel and Tourism Industry,White Paper, in collaboration with Accenture,
www.accenture.com/t20170116T084449 w /us-
en/_acnmedia/Accenture/Conversion-Assets/WEF/PDF/Accenture-DTI-Aviation-
Travel-and-Tourism-Industry- White-Paper.pdf.
➢ WTTC (World Travel and Tourism Council) (2016), Sustainable Tourism: The Past,
Present and Future, World Travel and Tourism Council, www.wttc.org/-
/media/files/reports/special-and-periodic-reports/sustainable-tourism_past-present-
future.pdf?la=en.
207
7.CYBERNETIC MODEL OF NAUTICAL TOURISM
ORGANIZATION

Abstract:
The paper describes conceptual models of learning and teaching as a managed cyber system
for the achievement of knowledge and skills defined by the standards of nautical tourism. The
paper examines the learning process as a system for building a student's knowledge system that
is actively managed and directed by the teacher to achieve the intended learning goal. This
paper seeks to describe and analyze a case design approach as part of a strategic, technology-
driven university intervention to increase participation. A curriculum framework was created
for students who wanted to make their work the focus of their studies and could not easily access
the current university provisions. It was purposely assumed that this would require a
technologically inspired response to teaching, learning and evaluation. The information the
student receives is multimedia in nature. The recipient receives information through different
channels (sensors), vision, hearing, smell, taste and touch. The information received falls into
the short-term memory where it is processed - confronted with prior knowledge in the long-
term memory of the individual. Information and knowledge can strengthen and extend the
recipient's long-term knowledge system if they are logically consistent. The actual knowledge
system enables the individual to solve non-standard problems not only in everyday life, but also
in science and technology and in various research areas from which the necessary, appropriate
and usable cyber knowledge system is built.
Keywords: cybernetics, education, nautical workers
INTRODUCTION
Tourism is a complex, multidisciplinary economic branch, interdependent on other sectors and
numerous factors, without formal boundaries and strict structure. A tourist branch that is based
on content related to sailing and staying in ports of nautical tourism. Therefore, managing the
development of personnel for nautical tourism (destinations) is complex and requires a
multidisciplinary approach.
208
The European Strategy for Greater Growth and Jobs in Coastal and Maritime Tourism180
focuses on attracting work and the growth potential of this prosperous sector by promoting
skills and innovation, strengthening sustainability, maximizing available EU funding and
integrating EU policies affecting coastal and maritime tourism. The strategy also foresees a
number of activities to be undertaken in the field of nautical tourism (NT): i.) qualifications of
professional boats and recreational sailing, ii.) safety equipment for nautical tourism, iii.)
prevention, management of waste and marine waste and iv. ) innovation for the development
of marinas. The nautical tourism study explored two possible instruments for the adoption of
such an EU ProSL, namely the existing Directive 2005/36 / EC on the recognition of
professional qualifications as amended by Directive 2013/55 / EU and, more specifically, the
possibility of adopting certain common training frameworks or the adoption of a new and
dedicated Directive . The study concluded that the use of the existing Directive 2013/55 can
reduce the administrative burden, the development of certain CTF instruments will not be able
to deal with all aspects important for recognition decisions and such a solution. Access may
also leave some other barriers to trade unresolved. This may be the case if the Member States
will, in addition to the EU ProSL, maintain or introduce secondary requirements hindering
freedom of movement for shipping, such as special insurance requirements, adherence to certain
associations or others. However, such aspects could be covered by a new dedicated directive181.
As the relevant studies concluded, shaping the prosperous future of the nautical tourism sector
requires both circular industrial innovations and supportive public policies. Circular industrial
innovation based on circular economy concepts lies at the heart of this. Business values of
nautical tourism in the clean seas sector. Circular and autonomous charter yachts equipped with
the latest IT technologies can open up new market opportunities. New consumer trends and new
diverse / combined tourism products in a sustainable way that connect local communities and
tourism activities can open untapped opportunities for more jobs and growth. Information is a
strategic source for tourism companies. ICT provides new means to analyze this information,
providing new concepts and tools for effective business management. Revenue management
concepts and tools are designed to improve and support informed decision making. For travel
companies that work with several distribution channels, revenue management becomes more
important and challenging than ever before. Innovation and research and development
(especially basic and experimental research) should be promoted and encouraged to maintain
the competitive advantage of EU industry on world markets. A well-functioning single market
is crucial to achieving such developments in nautical tourism. Like any other sector, nautical
tourism had the right to take advantage of the Single Market. Obstacles such as mutually
recognized national shipping licenses and different national rules on safety equipment need to
180
COM(2014)86 final 20.2.2014.
181
TRECVET: 'Transnational Recognition of European Certification in Vocational Education and Study on the
competitiveness of the recreational boating sector ECSIP (Nov 2015)
http://ec.europa.eu/growth/sectors/maritime/recreational-crafts/ec-support/index_en.htm, Nov 2015 Training' as
extended by TCC-SCV: 'TRECVET Core Curriculum for Skippers of Small Commercial
Vessels' http://www.trecvet.eu/
209
be recognized and maximally addressed by the appropriate levels or by the most appropriate
parties, in order to unlock significant potential for further sustainable jobs and growth in
nautical tourism in markets in to the EU182.
2. SUBJECT OF RESEARCH
The problem of research in this paper is directed towards the research of education in nautical
tourism based on the findings of the modern science of cybernetics in the first place.
Cybernetics is the science of feedback, information that travels from a system through its
environment and back into the system. A feedback system is said to have a goal, such as
maintaining the level of a variable (eg, water volume, temperature, direction, speed, or blood
glucose concentration). Feedback reports the difference between the current state and the goal,
and the system acts to correct the differences. This process helps ensure stability when
disturbances threaten dynamic systems, such as machines, software, organisms, and
organizations. The complexity of the process in the education system and its excessive
inertness, along with insufficient capital investment, are just some of the reasons why the pace
of changes in education is slower. The cardinal problem in these interventions, however, lies in
the plan of insufficiently researched scientific solutions for versatile changes in education in
the world and our circumstances. The education system represents a great challenge and its
transformation must be carried out at the level of systemic changes in information technology
and civilization (society) of knowledge. In order to meet the realization of such an undertaking,
it is also possible to go through phased solutions, such as changing the approach to education,
which are discussed in the contents of this paper.
New reusable materials, new production techniques and new technologies can be opened up to
further markets. Stakeholders alerted Commission staff that the first canoe was produced using
a '3D printer'. 3D printing is generally considered to “increase the speed of production while
reducing costs and introducing consumer demand to greater speed and greater impact on
production183. Both can make manufacturing at or near headquarters cheaper than
manufacturing designs overseas while reusing materials from their old fleet. This may further
lead the industry to review production processes and adapt to new market opportunities. Also,
by combining a specially designed new yacht with a variety of service offerings tailored
specifically to younger and older people, it can increase revenue and bridge some of the
seasonal gap for marinas and hinterland businesses. The addition of sophisticated business
services to advanced manufactured goods can lead to innovations that are not easily replicated
by competitors and therefore provide significant competitive advantages184.
182
Study on the competitiveness of the recreational boating sector ECSIP (Nov 2015)
http://ec.europa.eu/growth/sectors/maritime/recreational-crafts/ec-support/index_en.htm, Nov 2015
183
European Commission - European Political Strategy Centre (EPSC) strategic notes Issue 7/2015 6
October: Integration of products and services.
184
EPSC Issue 7/2015 6 October: Integration of products and services.
210
Education can be seen as a process that is analogous to the functions of information systems in
informatics. Namely, in education there are processes that can be described as follows:
preparation (collection), broadcasting (teaching), transmission, reception, processing and
storage of data, as well as their use for the purpose of building knowledge, skills and habits
.Multiple systems participate in the described process. There are two basic ones: the first, which
prepares and broadcasts messages, and the second, which receives, processes and uses those
messages to form knowledge, skills and habits. Cybernetics is the science of managing
interconnected processes that occur in systems such as organisms, communities, and technical
devices. Key words of cybernetics are: system, management, control, regulation185. We manage
with the help of regulation. The goal of cybernetics is to discover and formalize
communications and to establish communication-based controls. Practically, we have already
stepped into the information society a long time ago, and one of its consequences is the very
large, and increasing every year, volume of knowledge that a student needs to master. At the
current level of development of science and technology, the cyber security of the country is
becoming one of the most important branches of the high-tech society. Cybernetic learning
principles stem from the implications of applying to learning the insights into the behavior of
living systems provided by cybernetics research186. Cybernetics is supported by the concept of
circularity and feedback between the system and its environment. Maturana and Varela
(1987)187 say that both the living system and the environment are structurally determined and
thus, through repetitive interactions and feedback, both will change according to their structure
as they interact, contributing to the creation of the world by living in it. This process is called
co-ontogenic structural outflow.
In this paper, we explore the relationship between the disciplines of cybernetics and design with
the specific and practical application of the interdisciplinary practice of learning design for
technology-enhanced learning (TEL- technology-enhanced learning), which encompasses a
range of topics from other disciplines, including learning theory to information engineering.
The change that occurs through this process is what they call learning. Instead of knowledge
being something static that is taken from the outside by the senses and stored somewhere, it is
a process of knowing that the results are from dynamic processes. Positive feedback regarding
economic results, performance, activities, communication and teamwork shows that it is
beneficial for both public and private companies to implement corporate policies aimed at
promoting organizational well-being.
Due to the widespread use of modern information technologies in all spheres of existence,
society has become vulnerable to cybernetic influences, which are increasingly becoming an
effective means of achieving fruitless control and management of both infrastructural objects,
as well as companies. as individual citizens and their associations. The flows of information
185
Đ. Nadrljanski i M. Nadrljanski:Kibernetika u obrazovanju, Učiteljski fakultet, Sombor 2005.
186
Murray J. (2012) Cybernetic Principles of Learning. In: Seel N.M. (eds) Encyclopedia of the Sciences of
Learning. Springer, Boston, MA
187
Maturana, H., & Varela, F. (1987). The tree of knowledge. Boston: Shambhala.Google Scholar
211
transmitted, stored and processed in cyberspace are constantly increasing, which requires its
adequate protection against unauthorized access with criminal intent.
The spread of digital media in professional and private life has increased the demand for the
use of these technologies in education as well. The reasoning is based essentially on the general
social significance, on the future professional relevance of digital media, on the pedagogical
effects in terms of improving learning and learning results, as well as on the potential of changes
that could be caused in institutions such as the education system.
Education today increasingly takes place in an environment of constant change and uncertainty.
The rapid development of new technologies, the changeability of structures and conditions, the
availability of information, are just some of the factors that promote changes in the educational
environment, which is becoming more and more complex and dynamic. An ever faster reaction
of the education system to changes is required, time along with information becomes a key
success factor. In order for the education system to be able to respond to changes quickly and
efficiently, it must be able to predict what will happen next, and the very fact that education
takes place in a changing environment makes this more and more difficult, and even impossible.
The development of knowledge management provides an interesting example of approaching

IT services to business, in a broader sense. The concept of knowledge management comes from
the demands of the economy. In an effort to find ways to make knowledge capital, many
systems are trying to transform themselves from an abstract category into a concrete,
measurable value. Such efforts are directly related to new concepts: from informatics and
technology, processes, all the way to a new business philosophy. Digital media create new
conditions for self-understanding and understanding of the world, students use them especially
in the process of informal learning. So far, little is known about this form of knowledge
acquisition and the possibilities to connect it with institutionalized learning processes. Dealing
with digital media should be part of everyday education and should be based on an
understanding of the correlation between culture and technology.
The globalization of the market highlights knowledge as the basic value of successful companies. Quality management of
knowledge hidden in the company becomes imperative for successful business.
The methodological basis of the research is the leading position of the scientific theory of
knowledge about the interaction and interdependence of the phenomena of objective reality;
systematic, cultural approaches to the comparative analysis of pedagogical phenomena;
philosophical-pedagogical ideas about a proactive approach in the development of modern
education; methodological principles of comparative pedagogical research; ideas of
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comparative studies based on diachronic and synchronous study of pedagogical, sociocultural
and economic reality.
This research paper is based on an analysis of the literature on organizational well-being. It is

quite specific and the consideration of private and public practices stems from the importance
of achieving high performance in the education of personnel for nautical tourism.
3. STAFF PROBLEMS IN NAUTICAL TOURISM FROM THE POINT OF

VIEW OF EDUCATION
Perspective research and analysis of new and changing needs for labor market requires research
and analysis at different levels: macroeconomic, regional, local, sectoral, professional and
entrepreneurial level. The aforementioned trends do not only affect tourism products and
services. According to our sources, there is a shortage of well-trained mid-level staff in the
tourism sector. Insufficient basic knowledge and skills in tourism products and services, target
areas, marketing, sales, customer orientation, electronic data processing and computerized
reservation and reservation systems are often cited as weaknesses. Employees also often lack
interpersonal skills, especially when advising and working directly with customers. They also
have an impact on the work of tourism workers. The evolution of tourism was constantly
accelerating.
New tourism trends, new technologies and growing demands of an increasingly individualized
clientele have created changed requirements for tourism employees. Today, we are more
concerned with European research on the issue of timely identification of skills needs, but this
is still quite limited and mostly focused on specific sectors, trades and professions characterized
by internationalization, where the mobility of people, jobs and services is high. Tourism is one
such sector. Tourism is very important for the European economy. It accounts for 5% of direct
employment and share in European GDP and has a huge multiplying effect other economic
sectors enjoy forecasting stable growth for the future. Tourism has one of the highest rates of
labor mobility in Europe, which allows the discussion of the emergence of a truly European
economic sector and labor market with a truly European dimension. Thus, the debate on new
occupations and future skills needs for the sector in Europe is of particular importance.
213
The issue considered in this part of the paper is the need for skills and qualifications for tourism
in general. The second part looks at the areas of occupation and the new types of skills that
these trends have demanded. Several specific occupations are identified and discussed here,
such as various occupations in barrier-free tourism, tourism wellness services, revenue
management, etc. Finally, the third part deals with the transfer of research results to policy and
practice, especially regarding the identification and exchange of examples of good practice ,
which will enable all interested parties to learn from each other and to face the respective
challenges in the best possible way.
When discussing the trends and needs of education and skills in tourism, it is always interesting
to start with some facts and figures about the current situation of European tourism. The general
outlook for this dynamic sector, compared to other traditional European economic sectors, is
positive and quite optimistic for the coming years. Tourism is generally and globally recognized
as one of the (very) few economic sectors that has more than significant prospects for growth
and is characterized as a catalyst for peace and well-being. Despite increasing competition in
overall world tourism, Europe is still the number one destination. It has the highest density and
variety of tourist attractions. If Europe wants it and if it is to stick to this position, the general
trends and skills needs in this sector are very important. Nevertheless, the decisions of
individual tourists are mostly subjective and sensitive to external influences. Recent history in
this regard shows us that tourists are very sensitive to scenarios of conflict and violence, health
risks and increasing environmental disasters. The entire decision-making process becomes even
more complex with changing habits. The possibility of internet booking and consequently
individual travel, the trend of delaying flexible travel decisions and the availability of cheap
carriers and the more intensive search for price advantages make tourism one of the most
reliable and dynamic economic sectors. In the discussion of trends or general social changes,
new forms or themes of tourism are also a great influence for the further development of this
sector:
(a) tourism and sustainability:
• a seismic shift in people's awareness of the impact of mass tourism on the environment;
• new awareness of the interest in original, small and local holiday experiences;
• a new tourist (he would eat in a local restaurant, use local guides, look)
for the true story behind the destination);
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• more travelers who work alone (more demanding and at the same time taking responsibility);
(b) tourism and accessibility: almost 40 million people in Europe are handicapped, and are
they also tourists; from a commercial point of view, these consumers must not be
neglected;
(c) tourism, rural and cultural heritage: there is a clear and growing non-traditional tourist
destination market for this;
(d) tourism and peace: tourism is associated with tolerance, cultural exchange, learning to
know each other, creating well-being and friendship;
(e) tourism and sports: this goes far beyond the Olympic Games, as the segment for
individual and group tourism is rapidly increasing;
(f) tourism and health:
• a healthy lifestyle and the promotion of a healthy diet among customers will become
a priority for travel companies;
• holiday companies will work closely with medical professionals;
• travelers will be better educated about the health risks for vacations as a whole;
(g) tourism and technology:
• broadband access will revolutionize the culture of communication and strengthen e-

commerce; will directly affect how we spend the holidays;
• mobile phones will be our personal holiday organizers;
• artificially intelligent agents in our computers will act as a personal holiday tour
Tourism is still a very specific sector, so specific knowledge about the sector is needed.
Therefore the workforce, however, there are still general and basic needs for all skills.
Hazard analysis and critical control point are internationally recognized food safety
methodologies. For example, the lack of knowledge of foreign languages by tourist
organizations of some European countries has recently been recognized as a permanent problem
215
and even as a lack of competition. Entrepreneurship - a concept that is still vaguely defined - is
taken more actively on board by education providers who work on this concept and thinking,
implementing it even at the level of a compulsory educational institution.
A broad agreement of employers and human resources managers was noted regarding the lack
of suitably qualified workforce for employment in the tourism sector. Personal and most often
sought-after social skills with additional capacity for learning and working independently gain
importance. Knowledge of foreign languages and specific knowledge and skills related to
technological innovation and information technology penetration in the sector are often cited
as insufficient.
4. CYBERNETIC MODEL OF EDUCATION

The time we live in is called the information age, in which new forms of data collection and
analysis will enable more efficient management of supply chains, regulation of energy
consumption, and even distribution of personal time.
As more and more types of devices, services, companies, institutions and finally people are
interconnected to create the Internet of Everything188 , the availability of data, products and
services will increase significantly by several orders of magnitude.
The appearance of new qualifications in companies that set trends is almost a natural process,
i.e. the areas of employment and business within tourism are developing and automatically
looking for new or adapted skills of employees. Since companies tend to express concern about
the lack of suitably qualified workers, rather than seeing a new type of demand, an open
dialogue between researchers and companies is crucial for identifying qualification trends.
Describing and analyzing work processes is a more effective way to monitor qualification
trends than traditional survey methods. Companies often only learn this or recognize it if they
are innovative and that they themselves are trendsetters who develop carefully. A strict
methodical sequence, including different levels of research, enables the possible identification
of a specific qualification trend.
188
Cisco. The Internet of Everything for Cities. 2013. Available online: http://www.cisco.com/web/about/
ac79/docs/ps/motm/IoE-Smart-City_PoV.pdf (accessed on 8 January 2016).
216
The range of new occupations and related skill requirements identified in this paper are limited
after division into the individual areas of vacation and vacation design, tourist management,
business travel organization and travel agency support. The project identified the following new
complex skills packages:
(a) travel designer, online travel agent and event designer in vacation booking and design;
(b) tour representative for people with limited mobility, entertainment and guest relations and travel
services representative;
(c) business travel manager for the organization of business trips;
(d) consultant for travel agent support agencies.
Following the chaos theory 189, the individual stages of the procedural model are understood as
complex dynamic systems that interact in many different ways. This leads to a decision-making
process in accordance with the principle of adverse selection190, i.e. choosing good enough
instead of optimal. This fact has led to the creation of aggregation and comparison services that
encourage users and potential users to make a decision. Other offers provide services through
electronic support throughout the transaction process (from bid and ask matching, to payment
and settlement, logistics and review). The architecture of the market space software system
(DMS) as a possible implementation, which enables the aforementioned decentralized and
context-centered scenario of e-business and the commercial exploitation of the possibilities of
smart systems in the yachting business. This will lead to new types of services and products
that were not possible before. These products and services, as well as their complex
combinations, can be customized to accommodate the individual needs and contextual demands
of consumers. Such visions of technologically mediated - and seemingly limitless - futures are
not new. They echo the technological futurism popularized by cybernetics at the end of the
twentieth century. Beginning with the publication of Norbert Wiener's 1948 book, Cybernetics:
or Control and Communication in Animal and Machine, cybernetics initiated the scientific
investigation of feedback and self-regulation in biological and mechanical systems. In the
189
Potraga za znanstvenom osnovom za određene značajke evaluacije (trendova kvalifikacija) - beskonačno
složenost, ovisnost o opisima elemenata sustava iz promatračeve perspektive, holističke prirode,
nije djeljivo na odvojene elemente, nelinearne procese u razvoju treninga koji ne mogu biti
svedeno na puke uzročno-posljedične veze - dovelo je do primjene teorije haosa.
190
Akerlof, G.A. The market for lemons: Quality uncertainty and the market mechanism. Q. J. Econ. 1970,
84, 488–500.
217
process, it provided the conceptual foundation for contemporary advances in fields such as
bioinformatics, operations research, game theory, and artificial intelligence. It is possible to
present a model of the educational system using a control system in which the real system is
the student himself, in fact his knowledge system. In short, designers are now engaged in
designing first and second order cybernetic systems, and sometimes conversational systems -
using methods that rely on cybernetics. These changes suggest that knowledge of cybernetics
and other aspects of systems thinking, such as system dynamics and complexity theory, is a
prerequisite for advancing design. The process that is managed is student learning, this means
the construction of a student knowledge system that should achieve standards for each of the
parameters or prescribed levels of the profile of a graduate. Motivation, work of the professor,
acquisition and processing of information (learning process) changes the real object. The ideal
system, which is compared with the real system, is expressed by standards. In the event that the
student does not reach the prescribed level of knowledge, based on the difference in knowledge,
it is necessary to apply the feedback regulator represented by the professor, through the
influence of the environment and the environment, by acquiring new knowledge from different
sources, and this indicates the student's learning process. The regulator of feedback (coupling)
information does not react to a positive difference, a situation when a student knows more than
prescribed by the standards. However, it can have a positive effect on student activities and can
increase motivation for independent learning191. Teaching in an educational environment is
considered controlled learning, the goal of which is to achieve a prescribed standard of
knowledge. Each individual builds his entire system of knowledge. An individual's knowledge
system is not an encyclopedia of isolated information units, but a knowledge system connected
with relationships that express the context into an organic whole. In education, there is a
selection of knowledge that a student should master, which is found in the curriculum created
by education experts in each educational system. The role of education is to create a stimulating
environment in which the student will be motivated to accept that choice of knowledge192 . If
there is a conflict between information and old knowledge and information - the conflict should
be resolved. The solution can be clarification of the knowledge system, correcting
misconceptions so that they are in line with objective reality and relevant knowledge about the
subject of study. So, learning is not the constant storage of isolated information and information
191
Stoffová, V. (2004) Počítač – univerzálny didaktickýprostriedok 1. vyd. Nitra : Fakulta prírodných vied UKF
v Nitre, 2004. 172 s. ISBN 80-8050-450-4
192
Stoffová, V. (2006) The Importance of Didactic Computer Games in the Acquisition of New Knowledge. In:
The European Proceedings of Social & Behavioural SciencesEpSBS. pp. 676-688. eISSN: 2357-1330. (on-line
access:http://dx.doi.org/10.15405/epsbs.2016.11.70
218
units in memory, but their transformation into active knowledge that is connected to logical
structures and forms the students' knowledge system.
4.1. DESCRIPTION OF NECESSARY PERSONAL CHARACTERISTICS IN

NAUTICAL TOURISM
New products are being developed based on technology and the international labor market
demands of professional education for tourism. The staff for this tourist service must have
educational and psychological qualifications and creative, theatrical, communication and sports
skills. Travel representatives should be helpful, friendly, enthusiastic, independent and
communicative, and possess organizational skills, significant initiative and the ability to
anticipate potential difficulties, maintain overview and work under pressure. Tourism
professionals need skills to successfully navigate the net worth of tourism: skills to recognize
opportunities for promotion and cross-promotion, skills to find an effective combination of
distribution channels, skills to manage sales through several distribution channels and make a
profit from the tourism business process. Additional requirements are general (job-related)
knowledge and skills in your specific field of activity, such as: sales and customer advice;
awareness of legal matters; knowledge of destinations, tourist products and services and
accessories; computer and internet skills; the possibility of using a variety of vacation and travel
booking software; basic educational and psychological training. Other prerequisites are
business sense and skills in areas such as economics, marketing, public relations, cost and
benefit accounting, auditing and statistics. Skills in foreign languages, communication and
presentation techniques, leading discussions and rhetoric remained important.
A change in the input values also causes a change in the output values. This change in
output values must also follow the temporal change in input values. Mathematically, the
following relation between the state, input and output of the system can be written,
y = Ø (x, u),
x – system state;
u – input size;
y – output size.
The part of the system marked in the figure with S transforms the input quantities u into the
state x, and the part of the system marked ø transforms the state x and the input quantities u into
the output quantities y.
219
Input quantities as a function of time and output quantities as a function of time are treated as
components of the input factor u (t) and the output factor y (t).
Figure 1. Conceptual cyber system in education for nautical tourism
It is critically important to provide feedback, i.e. information about output characteristics, in

order to take timely corrective actions to prevent the occurrence of unacceptable process
deviations and to stabilize and improve the process.
• The cybernetic approach forms the methodological basis of all system sciences.
• The systemic approach is realized with the help of the application of intellect (opinion),
technique and means based on systemic thinking and the general theory of systems.
4.2. Cybernetic model in education
Education is about a managed system and the development of certain psychological processes
and the student's personality, and this can also be considered a cybernetic process. In this sense:
1. Cybernetic considerations in education lead to a better understanding of the complex teaching

process, and thus many phenomena that have only been described so far can be explained.
2. With cybernetic considerations, practical rules in class are understood more quickly, because
they are observed and interpreted from a higher point of view.
3. Cybernetic considerations in educational research open up new problems that can be accepted
by both scientists and teachers in practice.
4. Cybernetic considerations lead to the rationalization of the teaching process. That is an
important fact. It has a stimulating meaning for the practical organization of the teaching
process.
Cybernetics (specially for educational cybernetics) is characterized by the application of the

same methods to subjects of human sciences (specially for educational science), that is, to
information, instead of matter and energy. In teaching, as in other areas of human activity, the
220
problem of management is current. The basic management task could be formulated as follows
- it is necessary to find such a technology for managing the teaching process that will allow
students to acquire significantly more knowledge in a unit of time, to acquire more perfect
skills, habits and abilities. The setting of the task formulated in this way suggests that solutions
are sought in management science. Management is usually defined as the process of making
choices and making decisions in order to achieve a predetermined goal. In management science,
there are different theoretical approaches to solving specific management problems. Teaching,
as a managed problem, has its own specificities that require research into authentic solutions.
However, in the conceptual approach, one can start from a systemic point of view and some
common (general) indicators can be singled out for all managed systems. Cybernetics provided
answers to three questions relevant to management:
• what is managed,
• what are the management criteria,
• how can management be realized?
Methodology for determining the concept of functioning of the education system. For the
education system to function as a system, it must have its own concept of functioning. It is used
to determine the connection of conceptions according to which certain elements function in the
conception of functioning of the whole. "Each conception of functioning represents a set of
ideas that predict what should be achieved as a result of functioning and how the system should
function.
The concept of the functioning of the education system represents a set of ideas, postulates and
principles that define the elements and functions of that system and in the function of the
intensification of scientific and technological development. Education is a complex system that
cannot be viewed and solved based on experience. That is why it is necessary to approach
complex problems with scientific methods. And if the problem is more complex, the methods
of approach and solution must be more complex. To that extent, the chosen methodology
includes a greater number of sciences and their achievements.
The functioning of education as a system is influenced by a multitude of factors, and as a rule

simultaneously. In order to include all these specificities and be able to study them, a new
221
approach must be used, as already said. That approach, which starts from the functioning of the
system, is a cybernetic approach.
In this case, cybernetics deals with the study of education as a system with its elements, its
development, its functioning, as well as its connections with other systems, that is, with the
social system of which it is a subsystem. Composing education as a system begins with
determining the subsystem of ideas as components (elements). This is how the concept of
functioning is formed.
A systemic approach to building education in tourism as a system should be based on the model
shown in Figure 4. Active elements of the education system are analyzed. Active elements of
the education system are those elements that depend in a certain way on other elements and the
environment. Therefore, in order for an element in the system to be active, it must:
- to influence the environment (that is, other active elements) and the environment on it,
and this means -- that each active element of the education system must have at least one
input and one output. According to this understanding of the system, the elements were
classified into:
- direct,
- auxiliary,
- traffic and
- developmental.
The direct active elements of the education system in tourism include: the program content of
all subsystems of education (according to the picture), students and teachers and other personnel
who realize the program goals, tasks and contents of the tourism education system.
Auxiliary active elements of the education system in tourism include:
- teaching facilities, i.e. all those facilities where program content is implemented, in
addition to educational facilities, this includes production plants, economies, traffic polygons,
facilities where practical contents of education (training) are implemented and other facilities,
222
- teaching aids (under teaching aids here are considered all those means, tools, machines,
apparatuses, devices and other things that enable the realization of program contents of
education);
- teaching methods, imply the application of traditional and modern methods for
managing teaching processes in tourism education.
Transport active elements of the education system in tourism include:
- requirements for education arising from the development strategy of nautical tourism,
the modern education system and the needs of everyday life and work of individuals;
- financial resources, which are used to secure investments and the costs of the functioning
of the education system;
- material conditions and components, such as energy consumption and others;
- information is the basis of communication in the education system, so the components
of traffic active elements of the education system are necessary.
The composition of teaching as a system also begins with the determination of subsystems of
ideas as components. This is how the concept of functioning is formed. First, the purpose of
functioning is determined and set in the form of requirements that the system should satisfy193.
Requirements are set by the higher system and the environment in a larger scope and form than
the functioning of the organization of education, teaching, specifically, can satisfy them. That
is why they are selected and reduced. In addition to external requirements for the functioning
of education (teaching), internal requirements are also set in the form of the possibility of
meeting external requirements. To harmonize needs - external requirements and possibilities -
internal requirements, reducing external requirements and expanding internal possibilities are
used. The modeling of teaching as a system is conditioned by the determination of the concept
of functioning, and (Figure 5). Another factor is the ability of the education system itself to
fulfill the set requirements. The curriculum (curriculum) provides the basis for the creation of
the teaching concept so that, among other things, certain conditions must be met. Teaching must
be coordinated with:
• law on education,
193
U ovom radu te zahtjeve smo definirali u točki 4.1
223
• curriculum,
• achievements of science - pedagogy, psychology, didactics, methodology,
cybernetics, informatics and subjects from the profession of nautical tourism and
others,
• the results of monitoring the success of classes, aligned with the criteria and
limitations, and success, etc.
ENTRANCE OBJECT
ENVIRONMENT ENVIRONMENT
OF STUDY
DATA
IMPROVEMENT
EVALUATION SYSTEM SYSTEM OPERATING

CRITERIA OBJECT OBJECT CRITERIA
NEW SYSTEM
KNOWLEDGE
MODEL
Figure 2. Model of educational process management in nautical tourism
5. ANALYSIS OF THE CYBERNETIC MODEL OF EDUCATION IN THE

FIELD OF NAUTICAL TOURISM
The approach used is one of action research, planning the framework of the curriculum,
confirming courses, lecturing and reviewing through interviews. Cybernetics was applied post-
hoc to analyze the obtained data194. Cybernetic notions of diversity and its absorption proved
useful in analyzing the framework and highlighted weaknesses in the framework's design
regarding the organization of instruction.
Clarity about the strategic purpose of a change intervention is vital - in this case raising the
level of critical discussion was more successful than recruitment. Establishing an independent
unit can be a more successful strategy than incorporating it into a university. Further work is
needed to understand new market approaches. Action research shows that the university can
Millwood, R. and Powell, S. (2011), "A cybernetic analysis of a university‐wide curriculum innovation",
194
Campus-Wide Information Systems, Vol. 28 No. 4, pp. 258-274. https://doi.org/10.1108/10650741111162734
224
develop curriculum designs that offer new groups of students access to higher education while
improving their work practices.
General competences are based on a comprehensive education that contains basic theoretical,
methodological and practical knowledge in the fields of economics, tourism, transport, spatial
planning, law, information technology and foreign languages. In all courses, in some explicitly,
in others implicitly, students are guided towards awareness of the application of business ethics,
professional and broad social responsibility of their future profession. Upon completion of the
study program, students will be able to provide arguments for their opinion, build team spirit,
present their work in the best possible way, support freedom of expression and adapt to the
demands of the work environment.
The personnel program, content and methodology for the graduate study should represent one
of the most innovative tourism studies in many countries. The program must be aimed at
developing the dynamic component of tourism. As part of the studies, basic theoretical,
methodological and practical knowledge from different branches and areas of social sciences
should be acquired, and by mastering theoretical and practical aspects, students acquire
competencies that fully prepare them for work in tourism in the world.
Special attention in the education of students must be devoted to the importance of the tourist
experience, within which students direct the observation of the tourist area holistically, through
an economic, anthropological and social perspective, which includes the areas of resources,
activities and experiences. The entire concept of the study program should follow the
development process of tourist destinations throughout the years (10 semesters), and in the last
year of study, with different "rejuvenation" strategies, so that students gain insight into the
methods of how, through concrete examples from practice, to recognize the indicators that
indicate on destination stagnation, analyze and recognize them, as well as recommend
improvements and new models for the successful operation of the destination as a complete
system195.
After graduation, students will be trained to perform managerial and administrative tasks in
tourist associations, travel agencies, associations, tourism associations, tourism departments in
195
Modified according to the text published at info@bernays.hr.
225
local governments and counties, tourism departments of the Ministry of Tourism, hotel
facilities, business systems, management companies events, national parks and protected areas,
marinas and ports, beaches, forms of entertainment, advertising agencies, marketing
communication agencies, marketing management departments, consulting services, etc.196.
6. CONCLUSION
Today's luxury customer is a nautical tourist, price conscious and highly educated about the
possibilities and attributes of quality. The brand should no longer be flashy, but meaningful.
Today, guests are looking for a multi-level experience service, a unique vacation where family
trips and children as a discerning designer brand of the client is becoming more and more
important. Therefore, value is attributed to spending more money on experiences that are the
new "currency" rather than on objects, as well as spending time alone with a spouse or family,
seeking privacy and intimacy, value and authenticity. Information and communication
technology should not be visible, but an option if requested. Most importantly, the technology
is expected to be used as a way to enhance, not replace, human touch. Personalization and
timing are highly valued, as are security, credibility and disclosure.
Initial vocational education systems are not ready to meet the new skill requirements of the
sector. Therefore, continuing training combined with practical work experience and on-the-job
training more effectively supports skill development. Although employers consider continuous
training important for promotion, mobility and flexibility of staff, most of them do not invest
in training. In addition to the employer's preference for work experience with formal training,
companies, especially small ones, do not have the resources and financial resources to invest in
training their employees. Furthermore, limited opportunities for internal promotion are the main
obstacle to motivating employees to seek - and employers to provide - training opportunities.
Discussions about work: employers, employees, teachers and students. Changes at work imply
difficulties for people to give meaning to their experience. Workers have to deal with instability,
fragmentation or insecurity typical of work
196
Ibidem
226
today as shown by Sennett (1998)197, Dubar (2000)198 or, for the specific field of tourism,
Mériot (2002)199 and Martínez (2003)200. Identity processes are formed in the interaction of self
with others. These processes occur through shared experiences and practices, through formal
and informal learning processes, acquisition of competence and shared meaning. Identity is
connected with representations and conditioned by the dominant cultural model.
Representations are types of knowledge, socially constructed and shared, with a fundamental
practice that enables a common reality for a social group, a sector in our case. Socialization
processes and skill acquisition are fundamental professional identities, to the extent that they
are responsible for the learning and relational influences that the individual assumes within the
professional context and group. Competence, therefore, includes procedural, technical and
conventional knowledge, but also semantic knowledge shared by members of a limited group
that forms a profession or occupation. all skills are adjusted according to the specific work
context and according to the judgment of the professional associate of the community of
practice relevant to the individual. That is why the work context is very important. It is
important to determine the conditions that contribute to the formation of identity. These are
defined not only by objective conditions but also by the way they are perceived and understood,
read by individuals.
Each science has its own methods and techniques in solving its problems. As cybernetics is an
interdisciplinary science that synthesizes many scientific areas, it contains methods known from
other sciences, but also those that have a specific, cybernetic feature. Of course, all these
methods are ultimately based on general methods of thinking.
The effectiveness of education in tourism is largely determined by the methods used in teaching.
In order to manage the goals and tasks of teaching, one must know the ways that lead to their
realization, that is, it is about knowing teaching methods. In the realization of the program
content of the education of tourism students, teaching methods are among the input variables
through which the teaching is managed. Teaching methods enable paths through which teaching
goals are achieved. There are a large number of definitions and classifications of teaching
197
Sennett, R. The corrosion of character: the personal consequences of work in the new
capitalism. New York: W.W. Norton, 1998.
198
Dubar, C. La crise des identités: l’interprétation d’une mutation. Paris: PUF, 2000.
199
Mériot, S.A. Le cuisinier nostalgique: entre restaurant et cantine. Paris: CNRS Éditions, 2002.
200
Martínez, I. Condiciones de trabajo e identidad laboral en el sector hotelero en la Comunidad
Valenciana. Valencia: University of Valencia, 2003.
227
methods, and a special classification of teaching methods is given by some authors for certain
teaching subjects such as nautical. The professor, as a manager in the teaching system, selects
teaching methods, teaching and other resources according to the criteria and specificities of the
teaching unit, the goals of realizing program content, students, working conditions, outcomes
and other factors of educational outcomes. Educational cybernetics has its own teaching
methods that in a certain way observe teaching as a managed system.
228
LITERATURE
Besteiro, B. 2004. “El desarrollo del Turismo Náutico en Galicia”. Cuadernos de turismo 13:
145-163.
Carrasco, S. F. 2001. “La relevancia del turismo náutico en la oferta turística”. Cuadernos de
Turismo (7): 67-80.
Carrasco, S. F. 2002. “El turismo náutico en el Mediterráneo”. Cuadernos deTurismo(9):9-32
Chapapría, V. E. 2000. “El planteamiento de infraestructuras para el turismo náutico”.
Cuadernosde Turismo(6):29-44.
Jay W. Forrester: WORLD DYNAMICS, Copyright 1971.,1973., Wright-Allen Press, The MIT
Press, Cambridge, Massachusetts, USA
George P. Richardson and Alexander L. Pugh III: INTRODUCTION TO SISTEM DINANICS
MODELLING WITH DYNAMO, THE MIT PRESS, Cambridge, Massachusetts, USA
Chen, C. F., and D. Tsai. 2007. “How destination image and evaluative factors affect
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Gómez, E. 2012. La gestión de instalaciones náuticas de recreo: su relación con el turismo náu-
tico en la Costa Blanca.
Guibert, C. 2013. “Les effets de la saisonnali- té touristique sur l’emploi des moniteurs de
sports nautiques dans le département des Landes”. Norois (2): 77-92.
Hall, M. 2001. “Trends in ocean and coastal tourism: the end of the last frontier?”Ocean
& Coastal Management 44(9-10):601-618.
Jugović, A., Kovačić, M. and A. Hadžić. 2011.“Sustainable development model for nautical
tourism ports”. Tourism and Hospitality Management 17(2): 175-186.
Kovačić, M., and Z. Gržetić. 2008. “Nautical tourism the basis of the systematic development”.
pomorstvo Journal of Maritime Studies(1332-0718) Vol. 22 Br./No.1: 31-51.
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stručničasopis za more i pomorstvo 54(1-2): 22-31.
Nadrljanski, Đ.: Kibernetske osnove modeliranja i projektovanja sistema usmerenog
obrazovanja, Misao, Novi Sad, 1982.
Pšunder, M.: Educational macrosphere=Edukativna makrosfera, Informartologija, Zagreb,
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229

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DIGITALIZATION, COMMUNICATION,

AND NAUTICAL TOURISM

In the first chapter, basic concepts of nautical tourism are discussed.

The third chapter focuses on knowledge management.

The sixth chapter covers the development strategy of nautical tourism.

The seventh chapter discusses the cybernetic model of nautical tourism.

2. QUALITY MANAGEMENT IN SHIP CONSTRUCTION AND

3. KNOWLEDGE MANAGEMENT, p.101.

4. SOCIO-SOCIAL CHANGES ON THE ADRIATIC COAST UNDER

5. RESEARCH ON JOBS AND WORKING CONDITIONS OF

6. NAUTICAL TOURISM DESIGN STRATEGY, p. 188.

7. CYBERNETIC MODEL OF NAUTICAL TOURISM ORGANIZATION,

Branimir Jelavić, MSc. Port Authority Split, brane.st3@gmail.com

Kristina Vidović, MSc. University College ARCA,

Keywords: digital technology; digital transformation; nautical tourism; Industry 4.0

Digitalization is changing the entire perspective of tourism worldwide. Digital tourism is

Nautical tourism attracts attention worldwide and is considered an important segment of

The present is characterized by an increasingly interconnected and interdependent world

Yacht owners interested in improving efficiency by adopting new technologies: machine

- Recognition of professional skipper licenses

As a strategic tourism product, it contributes to reducing seasonality and enhancing the

Official Journal: OJ C 209, June 30, 2017, p. 1

Learn more about it at: https://www.vecernji.hr/vijesti/uspjesan-projekt-vecernjeg-lista-vraca-se-u-novom-ruhu-

Digitalization or digital transformation trends in different aspects and industries of life

4. Sustainable Practices: Digital transformation in nautical tourism includes the adoption of

10. Customer Engagement: Digital transformation enables businesses to engage with

In conclusion, nautical tourism is undergoing a significant transformation driven by digital

3. DIGITALIZATION OF NAUTICAL TECHNOLOGY

4. DIGITAL TRANSFORMATION IMPACTING THE TRAVEL AND

a. mobile technologies/cloud computing, automation and advanced robotics, blockchain, data

b. services and experiences, such as virtual/augmented reality, the Internet of Things,

5. NAUTICAL TOURISM IN THE TOURISM DEVELOPMENT

Digitalization is accompanied by changes, and changes can lead to resistance, potentially

Marko Košuljandić, AZIMUT d.o.o., markokosulja@gmail.com

Stipe Lozina, University College ARCA, stipelozina5@gmail.com

Shipbuilding-specific production includes cutting processes, welding processes, distortion

1.1. RESEARCH PROBLEM

1.2. RESEARCH SUBJECT

Documentation - receipt and availability of all necessary (approved) documentation (e.g.,

Personnel - check the qualifications of welders, inspector qualifications, operator

Welding – approval of welding procedure specifications, approval of welding performance,

Final delivery and documentation – approval of final documentation, final delivery.

1.3. RESEARCH OBJECTIVE

1.4. RESEARCH HYPOTHESES

H2: The quality management system in shipbuilding influences the improvement of

1.6. SIGNIFICANCE OF THE RESEARCH

− Features that determine the functionality of the product,

Quality compliant Design quality

Compliance with Quality

Usability value for

Figure 1. Meaning of the Concept of Quality

Figure 2. Quality According to the Performance Perspective

Source: Lazibat, T. Quality Management, Scientific Book, Zagreb. 2009.

Supply less Balancing Increased Greater Integrated

Figure 3. Phases of Quality Development

Types of quality management systems:13

- Standardized quality management systems,

- ISO 9001:2008 standard

Management systems in organizations have the possibility of being implemented and

Total Quality Management (TQM) is a management technique that involves continuous

The standard was developed with five basic objectives:22

1. Achieving, maintaining, and seeking continuous improvement of the quality of products

Globalization, an increasing number of competitors, a more demanding market, the