Rural tourism development in Lithuania (2003–2010) — A quantitative analysis

Abstract

The objectives of the Rural Development Programme for Lithuania for the period 2007 to 2013 are to: (a) preserve natural and cultural heritage objects, (b) support complementary activity in the rural areas, and (c) generate rural tourism as an economic sector. The aim of this study is to identify current trends specific to the Lithuanian rural tourism sector and propose potential means of development. This study focuses on an inter-county assessment of rural tourism flows within Lithuania by the means of an index decomposition analysis. Consequently, an analysis was undertaken covering factors including the number of the rural tourism farmsteads, spatial distribution of those farmsteads, and capacity, an amended Defert Index, and duration of stay effects. The analysis suggests that the Lithuanian rural tourism sector was negatively affected by the 2008 recession. Indeed, the impacts exhibited relatively high elasticity of demand for rural tourism. Hence, there is a need for the further development of appropriate marketing and information dissemination strategies aimed at both middle and lower income consumers.