International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 3, No.3, July 2013, pp. 162170 ISSN: 2225-8329 © 2013 HRMARS www.hrmars.com Situation of Tourism in B&H (Agencies Perspective and New Solutions) Muhammed Kürşad ÖZLEN 1 Musa TULIĆ 2 1 Business and Management Department, Ishik University, Erbil, Iraq Tel: +964662529841, E-mail: kursadozlen@yahoo.com 2 Faculty of Economics, International Burch University 71000, Sarajevo, Bosnia and Herzegovina Tel: +387 62 962 254 E-mail: tulicmusa@gmail.com Abstract The main objective of this study is to define current situation of tourism in Bosnia and Herzegovina, and to suggest proposals for improvement. Survey was prepared based on eight variables: travel planning, tourism decision, tourism marketing, customer satisfaction, technical capabilities, service quality, types of tourism, and customer characteristics. 102 respondents were surveyed. General results say that tourism situation of Bosnia and Herzegovina is in a quite good level, but there is still significant space for improvement. For further improvement of tourism sector, it is suggested that Bosnia and Herzegovina should work on elimination of visas requirement for tourists from the Middle East as an important target group, work more on development of family tourism and creating tourist villages that enable privacy for families and appropriate environment for kids. Additionally, more promotion of tourism of Bosnia and Herzegovina could be beneficial for the country as well. Since there is lack of literature about this issue in Bosnia and Herzegovina, this research may be good stimuli for writing on the same issues in the future, and finding new solutions for existing problems. Key words Tourism, sustainable Tourism, Improvement, Bosnia and Herzegovina DOI: 10.6007/ IJA RAFMS/ v3-i3/100 URL: http://dx.doi.org/10.6007/IJARAFMS/v3-i3/100 1. Introduction Tourism can be defined as the temporary movement of people from their place to different countries with the aim of fulfilling their socio-cultural and psychological needs such as sightseeing, resting, learning, and having fun. Despite tourism has both social and cultural dimensions, its economic aspect is generally assessed. It has had positive influences especially in the economies of developing countries since the 1980s (Kar, )orkirişçi & Yıldırıŵ, ϮϬϬϰͿ. According to Agency for Foreign Investment Promotion, the top seven investment sectors of FBiH are: Tourism, Agricultural and Food Processing, Energy, Wood, Transport, Mining and Metal Processing and Automotive industries (FIPA, 2008). This study aims to assess the situation of tourism in Bosnia and Herzegovina, identify its weaknesses aŶd propose solutioŶs for iŵproǀeŵeŶt aŶd ǁeakŶesses eliŵiŶatioŶ froŵ the tourisŵ ageŶĐies perspeĐtiǀe. Survey and interviews are conducted in order to achieve data. The collected data is analyzed descriptively. Furthermore, the study is supported by the interviews. The results revealed a positive agreement level in terms of travel planning, tourism decision, tourism marketing, customer satisfaction, technical capabilities and service quality. The paper is concluded with overall evaluation and recommendations for future studies and practice.