Are urban and rural destinations competitors or complements? A Hotelling model perspective on Serbia’s tourism future

The given research discusses the question of whether urban and rural destinations in Serbia are competitors or supplements and the consequences of introducing the integrated Tourist Combo Card instrument. With the help of the survey data and interviews, using the Hotelling model made it possible to quantify the preferences of tourists and simulate the potential types of behaviour. The findings support a strong complement: there is a consistent practice of joint visits by tourists, particularly between Novi Sad–Sremski Karlovci and Belgrade pairs, but the Belgrade pairs are operating in a mixed regime. It is shown by simulations that the implementation of the Tourist Combo Card (discounts and free transportation) would stimulate the combined visits, lessen the number of people in the city centres and improve the agritourism portion of the overall consumption. This provides opportunities of implementing a new tool that would work towards a more equal redistribution of tourist flows and a more sustainable destination development in Serbia.