GLOBAL TREND IN SUPPLY OF SMALL AND MEDIUM-SIZED HOTEL ENTERPRISES

The global trend of offering local product in SMHE's is one of the major factors of increasing the competitiveness of local farmers and SMHE's. Considering the fact that tourism and agricultural production activities are of a great interest for Croatia, as well as the fact that there is a growing trend in production of domestic food worldwide, Croatia should explore its high production potentials due to its geographical position and natural conditions. Organically produced foods are becoming an increasing attraction to tourists and herein lay an opportunity for small and medium-sized hotel enterprises to enhance their gastronomy offer. The main purpose of this study is to analyse the impact of local products on competitive abilities of small and medium-sized hotel enterprises. The survey results show that supply quality is significantly influenced by the offer of dominantly local products and also tourist satisfaction is significantly influenced by the offer of dominantly local products. The offer of dominantly local products is not significant for market share and quality of business cooperation with suppliers. The study also investigates that in small and medium-sized hotel enterprises, which mainly offered local products from farmers the share of organic ingredients is higher and that they give priority to domestic meals.