Tourism policy options for the next decade

Tourism policy options for the next decade:
BY CHRISTOS PAPOUTSIS

(EU Commissioner with responsibility for Energy and the Euratom Supply Agency, Small and Medium-Sized Enterprises and Tourism)

It is important, as we face into the twenty first century, to discuss the perspectives of this complex and rapidly developing industry.

In Europe, tourism is a topic which interests almost everyone. It no longer concerns only a privileged minority. Europeans of all ages are substantial and sophisticated consumers in this field.

Our recent surveys show that only 18% of persons over fifteen years of age have never taken a holiday; and in 1997, one in every two Europeans had been away from home on holiday.

When going abroad, the main choice of European tourists is a European destination. When asked about their perception of 'European citizenship', young people, between fifteen and twenty four, stress the notion of freedom to travel, before all else. And, when young people travel abroad, in 87% of the cases it is for holidays.

Tourism's impact on society:
But tourism does not concern only the tourists and the tourist industry. It is a phenomenon which affects every part of our society.

It is commonly acknowledged that tourism is closely related to the cultural, social and natural environment.

Tourism contributes valuable resources to the preservation of historic monuments, and to the conservation and development of traditional arts and crafts. Tourists are often an important influence, affecting and changing social characteristics, traditions and ties at tourist destinations.

Of course, we all know that, if tourist development is not directly accompanied by continuous environmental protection, it can cause immense damage. Tourism can, and must provide the important resources we need for the protection and conservation of the natural environment.

But, tourism also plays an important role in two other areas: Regional development, especially in the more remote areas and job creation - two objectives which are at the top of our political agenda.

Tourism: regional development and job creation:
For this reason, we are investing € 7.3 billion during the period 1994-1999 through the Structural Funds of the European Community, to equip tourism to contribute to the development of the less developed regions of the European Union.

As far as employment is concerned, the Council of Ministers at its meeting last November recognised the immense contribution of tourism to employment creation. The Council endorsed the need for further work in this area.

We are now actively involved in setting up a high level group to explore the issues, and help prepare a report, to be presented to the Council of Ministers, before the end of this year (see Press Release (European Commission, Spokesman's Service), IP/98/222 (9.3.98) and IP/98/267 (23.3.98)).

Institutional aspect:
Speaking about tourism in Europe, I would like to touch briefly on the institutional aspect, because we are dealing with a rather special situation. First of all, because public policy has different implications at different levels of competence or authority in the European Union, and it is defined at Community, national and regional level.

But, at the same time, public policy must take into account also the international context. Competition does not take place only between regions or Member States, but also between continents and whole regions of the world. And, with the rapid development of technology, including that of information and transport, we can expect that tourists will become more and more demanding. And, they will fix their horizons well beyond traditional geographical limits.

Therefore, when we discuss policy options, we are obliged to take into account the interconnections, and seek to avoid contradictions and conflicts at all those levels.

At the same time, given the horizontal characteristics of tourism, and its impact on various sectors of social and economic life, we must take into account the relationships between the various public policies.

I am referring to policies like spatial planning, transport, environment, consumer protection, health and safety, and human resources, which often have different perspectives and priorities.

Decision-makers at all levels are called upon to find the right balance and combinations in this complex policy environment, including giving a proper weight to the legitimate interests of the tourism industry.

Quite often the industry complains that they do not receive the treatment they deserve from the public sector. Tourism directly employs nine million people in the European Union, and contributes at least 5.5% of GDP. It accounts for one third of international trade in services, and demonstrates excellent prospects for further growth.

Industry representatives often claim that despite these facts, tourism is often seen as the 'Cinderella' of national and European policy.

There is the feeling that tourism, because of its mixture of different components, may be condemned to take second place at best, when policies for closely related sectors are being developed. I myself believe that there is more than a grain of truth in such reproaches.

The big question:
Today, we are faced with a big question: What place are we really prepared to assign to tourism in our policies?

In order to answer this question, I believe we need to define the challenges facing us.

A common challenge for both the industry and the policy-makers is, of course, to satisfy the tourists' needs so as to maintain and increase our clientele. But, at the same time, policy-makers are faced with the challenges of growth, local development, environmental protection and job creation.

Partnership:
In order to respond to these challenges, I believe that the key word is partnership.

Business to business partnership
Small businesses can have common interests with big enterprise, since both at the destination, as well as in the originating markets, they are all part of the same process.

Public and private partnerships
The tourism business is mainly a network, which includes producers, intermediaries, providers and promoters of a wide range of tourism-related services, and also different complementary segments of the markets and public authorities at different levels. Partnership should be seen as an opportunity, rather than as a burden.

In the growing process of modernisation and consolidation of the larger tourism companies, vertical and horizontal alliances as well as negotiations with public authorities play a significant role.

But, small and medium-sized enterprises, which are also part of the tourism chain, and which contribute to determine the degree of satisfaction of tourists, are too often isolated. SMEs find it difficult to be part of a balanced integrated process of development.

Some worthwhile Community instruments, for example in the framework of the general SME policy, could be better used for this purpose. And I am committed to exploiting this opportunity in the interest of tourism businesses.

Partnership between public authorities
This is especially important at European level mainly for two reasons:

- the Community can play a catalytic role in the identification and exchange of best practice, and the development of common projects and innovative solutions

- this co-operation is even more necessary, as many visitors from third countries see Europe as a single destination.

As regards the policy options at European level, our actions can and must be complementary to those of the Member States and provide real added value. They must be based on consultation and co-operation with the Member States, the industry and all those involved in tourism.

Competitiveness and quality:
I believe that the strategic goals for European tourism must be competitiveness and quality.

Competitiveness
The word speaks for itself, but it covers not only the competitiveness of the single firm but also that of related sectors of the economy, transport and logistics, finance and taxation, education and labour market. All of these together contribute to the competitiveness of tourism, of its component parts and, of course, of tourist destinations.

Quality
This is traditionally associated with sustainability, environment, cultural aspects, but in many ways it is closely related to competitiveness.

To achieve these goals, I believe that we need an adaptable framework, which will ensure:

- that we will be able to collect and disseminate information and knowledge on tourism

- that all Community policies affecting tourism will take account of its interests

- that we will be able to undertake concerted actions on issues of common interest, and help the process of learning from each other.

At European level there is now a widespread consensus on the objectives and on the model for achieving those objectives. I am sure that sooner or later the political authorities will find a more effective way to put into effect this approach. This way we can provide a secure long-term framework, within which, policy can develop at the European level.

We cannot neglect the external dimension of our policy: The introduction of the single currency, the EURO, which will make Europe more attractive to travellers from third countries, and the preparation of the enlargement of the European Union; our co-operation with our partners around the world and the progressive liberalisation process of trade in services.

All these developments raise many problems and opportunities, which will have to be addressed together.

Conclusion:
At the crossroads of the new millennium, nobody has any doubt that tourism's potential in terms of the creation of wealth and employment is immense. There is little doubt either that the success of tourism requires effective public policies, which will recognise and facilitate the smooth operation of a public/private partnership. Other imaginative initiatives will be required to contribute to the future of this industry, which will continue to be at the forefront in applying new technologies, and in responding to new market demands.

At European level, I do feel that we have identified all the elements necessary to establish a proper framework. What we need now is the political will, which will enable us to put into effect solid, yet flexible instruments, which will enable us to respond to changing times.

I want to assure you of my commitment to continue working for the sustainable development of our tourism industry, thus contributing to the achievement of the goals of the European Union. I want also to assure you of my willingness to develop fully essential tools of co-operation both inside and outside the European Union.

The text of a speech by EU Commissioner Christos Papoutsis at a Ministerial Conference, Berlin, 6 March 1998.

For information sources on the European Union and tourism see Section 14.7 in 'Recent References' in each issue of European Access.