Determination of Gamzigrad Spa Development Strategies Using TOPSIS and ELECTRE Gabrijela POPOVIC, Biljana ILIC, Dragisa STANUJKIC Faculty of Management Zajecar Megatrend University Belgrade Park suma Kraljevica bb 19000 Zajecar SERBIA gabrijela.popovic@fmz.edu.rs http://www.fmz.edu.rs Abstract: - The paper proposes an evaluation model based on TOPSIS (Technique for Order Preference by Similarity to Ideal Solution), and ELECTRE (ELimination Et Choix Traduisant la REalité) to help the decision makers in selection of the optimal strategy for Gamzigrad spa development. AHP method is used as ancillary method to determine the weights of criteria. A real case study is used to illustrate the effectiveness and utilization of the proposed model for determination of the development strategies. Key-Words: - Strategies determination, MCDM, TOPSIS, ELECTRE, AHP, spa development, Gamzigrad spa 1 Introduction Gamzigrad spa has a great potential for the tourism development, and because of that it is necessary to determine appropriate strategies for achieving the desirable improvement. But choosing the appropriate strategy is not easy task and very important question is: Which strategy is the appropriate choice for present conditions? The answer to this question could be obtained by using MCDM (Multi-Criteria Decision-Making) methods. Many authors have discussed MCDM methods in the papers and example of that are reviews include: [1-7]. This paper presents the possibility of finding adequate strategy for sustainable development of Gamzigrad spa by using TOPSIS and ELECTRE. Criteria weights are determined by using AHP method. The paper is organized as follows: in section 2 the methods are explained; section 3 contains numerical example; and conclusions are discussed in section 4. 2 Methods 2.1 The AHP method AHP was proposed by Saaty [8, 9] to model subjective decision-making processes based on multiple criteria in a hierarchical system. This method is very convenient for determining the relative criteria weights. Three of the most used methods for determining the weights in AHP are:  average of normalized columns (ANC),  normalization of row average (NRA), and  normalization of the geometric mean of the rows (NGM) [10]. The AHP method includes following steps: Step 1. Construct a pairwise comparison matrix using the fundamental scale of the AHP (Table 1). Table 1 Fundamental scale of AHP The evaluation scale Definition 1 Equally important 3 Slightly more importance 5 Strongly more importance 7 Demonstrably more importance 9 Absolutely more importance 2, 4, 6, 8 The medium value of the adjacent scale Table 2 Pairwase comparison matrix 1 C 2 C 3 C … j C 1 C 11 a 12 a 13 a … j a 1 2 C 21 a 22 a 23 a … j a 2 . . . . . . . . . . . . j C 1 j a 2 j a 3 j a … jj a In the pairwase comparison matrix where ij a denotes the comparative importance of criterion i C with respect to criterion j C . In the matrix 1  ij a , when j i  and ij ji a a  . Advances in Fiscal, Political and Law Science ISBN: 978-1-61804-191-3 267