As part of the “Civil Society for European Integration” project, funded by the European Union and co-financed by the Friedrich Ebert Foundation, ALDA Moldova has released its second Public Budget Monitoring Report. This comprehensive report delves into the tourism sector, a critical economic driver with the potential to significantly impact growth, employment, and social development in the Republic of Moldova.
Key Insights from the Public Budget Monitoring Report on Moldova’s Tourism Sector
The report, titled “Monitoring the State Budget of Central Public Authorities for the Development of the Tourism Sector: Budget Allocations by the Ministry of Culture and the Ministry of Infrastructure and Regional Development,” was the focal point of a roundtable discussion held in Chisinau on Thursday, August 29. The event brought together key stakeholders from various sectors to discuss the findings and explore strategies for advancing Moldova’s tourism industry.
Viorica Tudos, Director of ALDA Moldova, provided an overview of the current state of tourism development in Moldova. Her presentation focused on the implementation of state policies, performance programs, and the budget allocations for 2021-2023, with projections extending to 2024-2026. Tudos also offered a series of recommendations aimed at enhancing the sector by adopting international best practices.
Stakeholder Engagement and Collaborative Insights
The roundtable event was attended by representatives from several key organisations, including the National Association for Inbound and Outbound Tourism, the Ministry of Culture, the Ministry of Infrastructure and Regional Development, the Ministry of Finance, the Ministry of Economic Development and Digitalisation, and the Entrepreneurship Development Organisation, among others. These stakeholders praised the report’s findings and shared their perspectives, emphasising the importance of this analysis in refining state budget planning and aligning resource allocation with Moldova’s strategic tourism development goals.
Detailed Analysis of Budget Allocations for Tourism Development
The report scrutinises state budget allocations for the two primary institutions overseeing tourism in Moldova: the Ministry of Culture and the Ministry of Infrastructure and Regional Development. The Ministry of Culture is responsible for developing policies and strategic visions, while the Ministry of Infrastructure and Regional Development manages regional infrastructure through the National Fund for Regional and Local Development.
Tourism in Moldova is managed by various state entities at both central and local levels, with programs designed to foster a favorable environment for infrastructure development, SME support, regional promotion, and national tourism branding.
Tourism Growth and Budgetary Challenges
Moldova’s tourism sector has seen growth, with over 500,000 tourists recorded annually by 2023. However, a significant portion of this figure comprises Moldovans traveling abroad, with only 9% representing inbound tourists. This disparity underscores a critical challenge that Moldovan authorities must address to strategically develop the sector.
Between 2021 and 2023, state budget expenditures for tourism exceeded 234 million lei. However, for the period 2024-2026, planned expenditures for tourism development constitute just 0.04% of the total state budget. Despite this modest allocation, improvements in services, sustainability investments, and marketing efforts have contributed to a 5.6% increase in both domestic and inbound tourism in 2023. Notably, tourism revenue saw a 26.1% rise compared to 2022, driven primarily by outbound tourism earnings.
Looking Ahead: The “Tourism 2028” Program
Globally, tourism contributes up to 10% of GDP in developed countries, while in Moldova, it currently accounts for only 3.3%. To address this gap, the upcoming “Tourism 2028” Program, now in the final stages of consultation, proposes a budget exceeding 752 million lei. This program aims to allocate up to 0.26% of the state budget to tourism, with the goal of increasing the sector’s contribution to GDP to 6.3% by 2028. Key strategies include strengthening the policy framework, stimulating investment in modern infrastructure, adapting to evolving tourism needs, and promoting a diverse tourism product that supports local community development.
About the Report
For more detailed information, you can access the full report here (available in Romanian).
The project is implemented by the Independent Analytical Center Expert-Grup, in partnership with the Institute for European Policy and Reform (IPRE), AO Institutum Virtutes Civilis (IVC), and the Friedrich Ebert Foundation.
