SMALL AND MEDIUM-SIZED ENTERPRISES IN TOURISM AND THEIR PUBLIC SUPPORT

Activities of small and medium enterprises in tourism are linked to a number of specific features and issues that are based on nature of tourism supply and demand. SMEs play a crucial role in shaping of tourism supply, strongly influence consumer behavior, functionality of overall system and performances in tourism. As in other economic areas, there exist some natural barriers, where part of them public sector can help to solve and minimize. Those barriers have become a justification for intervention of public sector in tourism. However, these interventions are often ineffective, dysfunctional and even in some cases they harm the market environment in tourism. This article is devoted to the specifics and functioning of SMEs in tourism, interventions and public subsidy of tourism and their impact on tourism. Public support of tourism from the program frameworks in the Czech Republic is thoroughly analyzed with emphasis on small and medium business.