GUIDE ON EU FUNDING 2014-2020 FOR THE TOURISM SECTOR

The European Commission recently published a guide on EU funding 2014-2020 for the tourism sector.
The guide explains the type of tourism-related actions eligible for funding, the type and level of funding available, who can apply and how to apply.
As tourism has no direct budget line in the EU's multi-annual annual financial framework 2014-2020, the publication of this guide is most welcome.

BRINGING PEOPLE WITH THE RIGHT SKILLS TO THE TOURISM SECTOR

I was invited by the Irish Regions Office in Brussels last year to participate in a European Commission project aimed at assisting the integration in EURES, the European job mobility portal, of dedicated sub-sectors for tourism.
This project is part of the Commissions's rolling plan of tourism actions, following the publication of its political framework for tourism in June 2010.
Ernst & Young, Bologna was the lead partner in the project, which was co-ordinated by DG Enterprise and Industry and DG Employment, Social Affairs and Inclusion.
The overall purpose was to develop a skills vocabulary relevant to tourism to facilitate a closer matching of skills/qualifications with jobs. Three emerging sub-sectors for tourism were reviewed, namely;

• Adventure Tourism (aerial, water and land adventure)
• Blue Tourism (cruise, yachting and coastal tourism) and 
• Cultural Tourism (heritage, cultural events and spiritual tourism) 

Following participation at a number of seminars and development of working documents, a final conference was held in Brussels to share the project results with institutional stakeholders including the International Labour Organisation and the OECD.
At this event, the mismatch between workers' competencies and that required by their job was a recurring theme.
As a guest speaker, I outlined the role that education and training can play in tackling skills mismatch.
It is intended that the final deliverables from the project will be included in the further development of the European Skills Passport, an electronic portfolio of an individual's skills and qualifications, which will help to match workers skills to jobs across the EU.

HOTREC MANIFESTO FOR EUROPEAN PARLIAMENT ELECTIONS 2014

HOTREC, the Brussels based organisation representing the hotel, restaurant and bar/café sector recently published a manifesto addressed to candidates in the European Parliament elections in 2014. It hopes to persuade the next set of EU parliamentarians to 'put tourism at the centre of European economic policy'.

Such an initiative, on the surface at least, sounds great, as tourism industry groups have been behind the curve in shaping the policy agenda. As a close observer of European tourism policy, I was naturally keen to see what HOTREC had to say.
The manifesto contains 16 demands which HOTREC highlights as 'priorities of the European hospitality sector' for 2014-2019.
These include...in it's own words;

• Accessibility - consider the burdens on SME's
• Copyright -  clear regulation of the audio-visual sector
• Cut red tape - reduce the administrative burden of enterprises
• Data protection - no extra burdens for SME's
• Distribution channels - ensure fair competition in online distribution
• Easier access to funds for SME's
• Food in restaurants  - ensure the use of fresh food is still possible
• Official controls in restaurants- no mandatory inspection fee
• Package travel - do no impair hotel bookings
• Payment cards - interchange fees must come down 
• Private accommodation - level the playing field for all participants in tourism businesses
• Smarter regulation - self-regulation should be promoted
• Social affairs - do not undermine job creation
• Subsidiarity must prevail
• VAT rates - maintain reduced rates for tourism
• Visa policy - facilitate the entrance of tourists to Europe

So it seems to me, that these demands are really just a 'wish list' of what hotels and restaurants want for their own individual businesses, rather than a justification for putting tourism at the centre of European economic policy.
While there is nothing wrong with this per se, this manifesto is, in my opinion, a lost opportunity.
If HOTREC is genuinely serious about elevating tourism's role within the EU, I would have expected a document outlining how tourism could contribute to the goals of the Europe 2020 strategy. It could also have taken advantage of the European Parliament's excellent resolution on tourism in 2011, to champion the strategic priorities for the sector. These include organisational structure, co-operation, research, innovation, technology, sustainability, training, entrepreneurship and funding. Such an approach would, I believe, certainly make future parliamentarians sit up and take notice.
A fairly obvious question which arises out of this then, is which organisation in Europe actually speaks on behalf of tourism to EU legislators?
Despite a plethora of interest groups, it is clear to me that there is no 'one voice' to speak for the sector at EU level. This leaves institutional representatives unsure how best to assist the sector and, as a result, other sectors get priority when political and policy decisions are made.
The HOTREC manifesto is unfortunately, yet another example, where the interest groups in tourism form a choir of soloists, where everyone sings their own song and where as a result, no one get heard.

EU FUNDING PROGRAMMES FOR TOURISM LACK COHESION

In September 2011, the European Parliament adopted a resolution calling for a direct budget line for tourism in EU funding programmes, specifically in the multi-annual financial framework (MFF) 2014-2020.

This is very welcome, as tourism has the capacity to create employment faster than any other sector of the economy. For example, according to the U.S. Travel Association, the travel and tourism industry has created jobs at a pace that has been 26% faster than the rest of the U.S. economy since employment recovery began in March 2010. More recently, a 2011 study by Oxford Economics for the British Hospitality Association showed that 236,000 net additional new jobs could be created across the UK by 2015, if the hospitality sector was positioned firmly as a key driver of economic recovery.  

However, current EU funding programmes for tourism are scattered across other policy areas and lack cohesion. This makes it very difficult for operators to understand the type and level of supports on offer. RPA recently conducted a study on the impact of EU policies on tourism including a guide to funding instruments for the sector.
It provides proof if any were needed, that EU financial measures for tourism need to be radically overhauled.

A BANK FOR HOTEL AND TOURISM DEVELOPMENT

With well known hotels such as The Burlington, Parknasilla and Tinakilly House currently on the market and tourism SME's struggling to get finance, I think that the creation of a specialised bank for hotel and tourism development in Ireland might be worth considering.
Austria has such a bank since 1947. The Austrian Bank of Hotel and Tourism Development is a subsidiary of the three largest Austrian banks and provides finance for and subsidies to Austrian tourism businesses. While it is privately owned, it has a contractual relationship with government to provide long-term capital to the sector at favourable interest rates. Last year, it received a €100 million loan from the European Investment Bank to support tourism SME's, even though unlike Ireland, the Austrian tourism sector has been relatively untouched by the recent global economic crisis.
As a new banking system in Ireland emerges from the economic crisis, our tourism sector needs an alternative financial model to that currently available.

MAKING TOURISM A PRIORITY OF IRELAND'S EU PRESIDENCY

Ireland holds the presidency of the EU Council for six months starting January 1st 2013. During this time, it is expected that final agreement on the EU's 2014-2020 budget (otherwise known as the Multi-annual Financial Framework 2014-2020) will be reached. 
Ireland should make tourism a priority of its presidency and establish a direct budget line for tourism, thus completing the work begun by the authors of the Madrid Declaration.
By so doing, budget lines used for the support and coordination of tourism initiatives will be consolidated under a coherent and comprehensive financial framework for tourism. And, just as importantly, the potential of tourism to stimulate long-term job creation and economic growth across Europe will be made clear.

SIGNIFICANT INCREASE IN VISITOR ARRIVALS IN 2012

International tourist arrivals worldwide grew by 5.7% in the first two months of 2012 according to the UNWTO's recent World Tourism Barometer. Europe's results were ahead of expectations  (+5%), with destinations in Northern Europe and Western Europe performing even better (+6%).
Unfortunately, while this represents good news for Europe, the news for Ireland isn't quite so positive. The total number of trips to Ireland decreased by 1.2% in the period January-March 2012 compared with the same period last year.
It will be very interesting to see if the 6% increase in visitor numbers to Northern and Western Europe can be sustained for the rest of the year. Watch this space!

ASIA TOURISM FORUM 2012

Last week, I attended the Asia Tourism Forum 2012 in West Java, Indonesia, where I delivered a paper titled "The new political framework for tourism in Europe - A Lesson for Ireland". Organised by the Bandung Institute of Tourism, the conference brought together researchers, tourism industry practitioners and policy makers with the objective of assisting the development, marketing and mangement of Asia's tourism industry.

The quality of speakers was extremely high and I was particularly impressed with the contributions from Professor Kaye Chon, Director of the School of Hotel and Tourism Management at Hong Kong Polytechnic University and Professor Geoff Wall from the University of Waterloo, Ontario, Canada.

Kaye Chon identified leadership as the key ingredient for a successful tourism industry. He went on to describe Hotel Icon in Hong Kong, the world's first teaching hotel with full integration of teaching and learning in a full-service hotel environment. It only opened a year ago and today, it is number two on Trip Advisor's guide to Hong Kong hotels. This is some achievement for a university owned and managed hotel, in a city where all the leading luxury hotel brands are represented.
Geoff Wall on the other hand, discussed the concept of 'sustainable development', something which invariably is highlighted in any disucssion on tourism planning today.  He pointed out that it is, in fact, an oxymorom, posing questions such as what is to be sustained and what is development? Ultimately, he argued that the concept of 'sustainable livelihoods' is perhaps a much better organising framework.
It was my first time to Indonesia and I was really struck by the hospitality of the people, the warmth of their welcome and the quality of service I received. It was top class.  

Congratulations to Noviendi Makalam, Director of the Bandung Institute of Tourism, his staff and students for being superb hosts. I am very much looking forward to returning in the near future.

CONSULTATION ON THE EUROPEAN TOURISM QUALITY LABEL

Following the entry into force of the Lisbon Treaty in 2009, the European Commission now has specific powers to direct tourism activity in the EU. In June 2010, it published a communication on a new political framework for tourism in Europe. This framework outlined twenty one actions aimed at helping the European tourism industry promote sustainable, responsible and high-quality tourism, in order to enhance the sector's competitiveness.

Within this framework, one of the actions envisages the development of a European Tourism Quality Label (ETQ Label). Currently, there is a wide variety of public and private initiatives in this space, but they lack consistency and coordination.

The objectives of this initiative, according to the Commission, would be three-fold:

• For tourism businesses, it could serve as a management tool
• For consumers, it could be an information tool
• For Europe, it could be a competitive instrument

The possible future label would not abolish, but would complement existing tourism quality evaluation systems, which comply with the common European principles and criteria.

The Commission is currently undertaking an open consultation on this initiative, in the form of a relatively straightforward questionnaire. The consultation is open from 10 April-13 July, 2012. Given the experience of businesses and individuals with quality systems in the past, I'm sure there are many who might be interested in contributing to this important debate.

ERRIN TOURISM WORKING GROUP

I recently attended a meeting of the European Regions Research and Innovation Network (ERRIN) Tourism Working Group.

I gave a presentation to the group on how, South Dublin County Council, as a local authority, is successfully leading the development of tourism in the south-west Dublin region.

For those unfamiliar with the ERRIN tourism working group, it is part of ERRIN, a Brussels based network of more than ninety European regions with the objective to ;-

• Strengthen the research and innovative capacities of European regions by facilitating knowledge exchange, joint actions and project partnerships
• Influence EU policies, and engage in debate with EU institutions to make them respond better to the regional needs

ERRIN has thirteen working groups covering diverse areas such as biotechnology, health, ICT, energy and climate change, design and creativity, innovation funding, transport and nanotech.

The tourism working group is involved in shaping EU tourism policy, participating in projects and sharing best practices among European regions. Its links with NECSTour (the Network of European Regions for a Sustainable and Competitive Tourism) has resulted in a very ambitious joint programme of activities for 2012. I was amazed to discover that there is no direct Irish representation on the ERRIN Tourism Working Group and that no region in Ireland is a member of NECSTour.

Why is this significant? Well, even though tourism is the largest indigenous sector of the Irish economy, Ireland is losing a valuable opportunity to participate in and shape ongoing EU tourism developments, at the very time that Europe's new political framework for tourism is taking shape.

It would be impossible to imagine the Irish farming community missing out on such an opportunity.

2nd ANNUAL TOURISM POLICY WORKSHOP DROMOLAND 2011

The 2nd annual tourism policy workshop took place at the week-end (Nov4-6). The programme was very wide-ranging with topics on tourism development, the Irish economy, innovation, public policy, employment, marketing, technology, culture, the arts, and tourism in the west of Ireland. I gave a presentation on tourism developments in Europe and their implications for Ireland here

Overall, the workshop was excellent and I was particularly impressed with the attendance of Minister Leo Varadkar at almost all of the sessions. He also gave a very interesting address in which he outlined the following:

• The commitment of the government to the development of the tourism sector
• A reduction in the tourism marketing budget of approximately 5% year on year for the next few years
• A statement on aviation policy to be published next year
• The possible rationalisation of state agencies involved in tourism marketing and development
• The creation of a Centre for the Irish Diaspora
• A sustained focus on competitiveness

Jim Deegan and the team at UL deserve lots of credit for organising the event as does Mark Nolan and his team at Dromoland for looking after everyone so well.

World Tourism Day September 27th

On September 27th, the UNWTO will celebrate its 32nd World Tourism Day. This date was chosen to coincide with an important milestone in world tourism: the anniversary of the adoption of the UNWTO Statutes on 27 September 1970. Its main purpose is to foster awareness among the international community of the importance of tourism and its social, cultural, political and economic values. The day also provides an opportunity to highlight to government the major contribution the sector makes to our economy. From an Irish perspective, I've been searching to see at what events are happening here to celebrate the day, but unfortunately, I can't find anything. But that's not the case elsewhere. For example, in Valencia, the Tourism Foundation is preparing a range of offers for all those tourists who find themselves in the city on September 27th. These include

• 20% off a range of attractions
• free entry to the municipal museums
• guided city walks, followed by a glass of Valencian horchata for just €5
• free breakfast in selected hotels to guests to check in the previous day
• 2 for 1 spa offers

Now I know that Culture Night in Ireland on September 23nd is a superb event, with lots happening across the country. And of course we celebrate Arthur's Day the day before. With World Tourism Day falling on the 27th, I think that much of the infrastructure required to host a National Tourism Week is already in place. What do you think?

TOURISM IS SWEDEN'S FASTEST GROWING INDUSTRY SECTOR

Governments in developed countries are increasingly beginning to recognise the importance of tourism to their economies and so, I decided to take a look at what's happening in Sweden. The Swedish Agency for Economic and Regional Growth publish a very comprehensive data set annually on the effects of tourism on the economy, employment, volumes, behaviour and supply and demand. The most recent report 'Tourism in Sweden' contains some interesting facts as follows:

• Total turnover for tourism in Sweden rose by over 6% to SEK 251.7 billion (about €29 billion)
• There are more employees in tourism (160,000) than in the following major companies combined: Ericsson, Volvo AB and sunsidiaries, Volvo Cars, Saab Group, Husqvarna, Scania, ABB, Scandvik, Skanskam TeliaSonera, AtlasCopco, SCA & AstraZeneca (155,000)
• The industry's ability to boost employment in recent years has assumed significant importance. It increased by over 35% in the past ten years while the numbers working in agriculture, forestry and fishing have declined by 20% over the same period
• Tourism is the only export sector bringing direct VAT to the Treasury. VAT on foreign visitors' consumption increased by almost 150% since 2000 (from SEK 8.1 billion to SEK 13.6 billion)
• Between 2000 and 2009, the export value of tourism increased by 130% compared with an increase of just 43% in Sweden's total exports of goods and services
• Tourism's export value has more than doubled in the last ten years and its export value as a percentage of total exports of goods and services has risen from 3.9% to 6.2%

Interestingly, there is no such report published annually here. While the CSO's Tourism Trends Report 2008 is the nearest equivalent, it excludes any comparision with the performance of other sectors of the economy. If a more robust data set was available on Irish tourism, I believe we would see much more effective co-ordination by agencies whose direct and indirect activities, impact on the sector.

GERMANY REDUCES HOTEL VAT RATES

This week, political leaders gathered in Germany to celebrate the 20th anniversary of the fall of the Berlin Wall. German hoteliers had other reasons to celebrate. From the 1st of January 2010, VAT on hotel accommodation will fall from 16% to 7%! But it's not all one way. VAT on other services (including restaurants) is being increased by 3% to 19%.

VAT IN FRENCH RESTAURANTS & CAFÉS REDUCED FROM 19.6% TO 5.5%

In a sign of the times, the French government has shown imagination and reduced VAT in all restaurants and cafés throughout France effective from today (1/7/09). The rate falls from 19.6% to 5.5%. The VAT rate applied to restaurants in Ireland is 13.5%. Duty levied on a bottle of wine here is €2.98 inc vat, the highest in the EU.