COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 02.07 1997 
COM(97) 332 final 
REPORT FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
ON 
COMMUNITY MEASURES 
AFFECTING TOURISM 
(1995/96) 

TABLE OF CONTENTS 
1. GENERAL INTRODUCTION 
1.1 Scope of the report 
1.2 Overview 
2. ENCOURAGING MOBILITY AND PROTECTION OF TOURISTS 
2.1 Improving freedom of movement for tourists 
2.2 Ensuring the protection of tourists as consumers 
2.3 Facilitating access to tourism for certain groups of the population 
2.4 Encouraging responsibility - combating child sex tourism 
3. REINFORCING THE COMPETITIVENESS OF THE EUROPEAN 
TOURISM INDUSTRY 
3.1 Stimulating a favourable environment for tourism business 
3.2 Fostering the modernisation of the tourism industry 
3.3 Stimulating tourism development in less developed areas 
3.4 Encouraging tourism development in third country partners 
4. ENCOURAGING RESPONSIBLE USE OF TOURISM 
RESOURCES 
4.1 Strengthening sustainable tourism development 
4.2 Enhancing the partnership between tourism and culture 
5. CONCLUSIONS 
ANNEX 
1. Tourism in the Balance of Payments - 1996 
2. Number of bedplaces in hotels and similar establishments - 1996 
3. Nights spent by tourists in all types of registered tourist accomodations - 1996 
4. Community contributions allocated to tourism in Single Programming Documents 
and Community Support Frameworks (Structural funds 1994-1999). 
1. GENERAL INTRODUCTION 
1.1 Scope of the report 
This report, which presents an overview of Community measures affecting tourism 
undertaken in 1995/96, is presented in accordance with Article 5 of the Council Decision 
92/421 /EEC of 13 July 1992 on Community actions to assist tourism1. 
Most of the actions described in the report have been implemented within the framework 
of a wide range of Community policies and programmes which, while not specifically 
designed in terms of tourism objectives, have nevertheless an important influence on the 
development of the tourism industry, on the interests of tourists, and on the exploitation 
and preservation of the assets which are utilised by tourism. 
In order to give the clearest possible view of the impact of the measures on the main 
components of tourism, namely the tourist, the tourism industry and tourism resources, 
the structure of the report follows this typology. Nevertheless, it should be borne in mind 
that these components as well as the related measures are directly interlinked. The 
specified objectives, financial implications, beneficiaries, together with measurable 
outputs and progress made, are described in respect of each main area of Community 
activity relevant to tourism. A more exhaustive catalogue of information on these aspects 
is available by way of a Working Document of the Commission Services. 
The Commission has already forwarded to the Council of Ministers and to the European 
Parliament a report2 on the evaluation of the Community Action Plan to assist tourism 
(1993-95), in relation to the actions launched in the first two years (1993 and 1994). As 
regards 1995 many of the projects launched in that year will only come to fruition in June 
1997 and one of the most important pilot actions-launched under the Plan will only be 
concluded in 1998. Evaluation of these measures will therefore be undertaken later. Due 
to the nature of this exercise, the financial and control aspects of the implementation of 
the Plan are not addressed in this report, and will be dealt with by the Commission in a 
separate report to the Court of Auditors. 
An effective evaluation of the large number of actions affecting tourism carried out under 
other Community policies and programmes (indirect measures) raises several issues in 
relation to methodology, selectivity, cost effectiveness etc. Besides, some of the actions 
to be evaluated in a tourism perspective, for example in relation to the structural funds, 
would be evaluated in terms of the objectives set for the policies concerned. The issues 
arising will be the subject of ongoing review by the Services concerned; more effective 
co-ordination is, of course, an essential pre-requisite to assessing priorities for the 
purpose of evaluation of indirect measures related to tourism. 
1.2 Overview 
Tourism is a phenomenon which involves the majority of European citizens, as users and 
providers of tourist-related services, in Member States and in a wide range of third 
country partners. 
The European Union still maintains its leading position in world tourism with a growth 
rate in 1996 of 4.2% in terms of international arrivals and of 4.5% in terms of receipts. 
1 OJ L 231 of 13.8.1992, p.28. 
2 COM(96) 166 final of 30.04.1996 
Despite Europe's decrease of world market share - between 1990 and 1996 it has been 
reduced by 7% in terms of receipts and 4% in terms of arrivals - it is the main originating 
area as well as the main destination of international tourist flows in terms of 
arrivals/departures, of receipts and of international commercial exchanges. EU Member 
States account for 12 out of 40 top tourist destinations in the world and in 1996 they 
accounted for 40% of arrivals, 38% of receipts and 42 % of expenditure in international 
world tourism. Tourism activities employ directly 9 million people, representing 6% of 
total employment. It has an important indirect effect on employment in connected 
services, and in some tourism intensive economies its contribution in terms of jobs is 
substantially higher than the average. It is estimated that, by the end of the next decade, 
travel and tourism jobs will have increased by some 2 million, and will represent over 9% 
of total employment in the European Union3. 
1995/96 represents an important period in the progressive involvement of the European 
Community in assisting tourism, both in the case of direct and indirect Community 
measures affecting tourism. Indirect measures comprise programmes and policy 
measures which affect tourism but which are not developed or executed in order to attain 
specific objectives in the field of tourism. On the other hand direct measures have 
specific tourism objectives and comprise in large part pilot or exploratory actions 
designed to show what could be achieved on a wider scale. 
From an institutional point of view, the launch of a wide consultation on the basis of the 
Commission's Green Paper4 in April 1995 on the role of the Union in the field of 
tourism, which culminated with the European Tourism Forum held by the Commission 
in December 1995, represented a major effort in the assessment of the needs and scope of 
Community action. The outcome provided a direct contribution to the work of the 
Intergovernmental Conference, which however has not taken a decision in relation to 
whether the present reference to tourism in the Treaty should be made more specific. 
From an operational point of view this period was marked by the finalisation of several 
programmes, the evaluation of their implementation, and the definition and launch of 
new initiatives and proposals such as the Commission's proposal for a first Multiannual 
Programme to Assist European Tourism , "Philoxenia" (1997-2000)5. 
The measures relating to tourism undertaken by the European Community in 1995/96 
continued to reflect the multi-disciplinary and horizontal nature of tourism activities, in 
the full respect of competences assigned to the European Union in this field, and without 
impinging on the direct responsibility of Member States in tourism matters. 
These measures have been influenced by the specific objectives prescribed under the 
Community Action Plan (1993/95) to assist tourism,6 the mandate of the Tourism 
Advisory Committee7 composed of representatives from the Member States, and by the 
objectives prescribed for the purpose of other Community policies and programmes 
3 WTTC, Travel and tourism - Jobs for the millennium, London, 1997 
4 COM(95)97 final of 4.4.1995 
5 COM(96) 168 final of 30.4.1996 and COM(96) 635 final of 4.12.1996. 
6 OJ L 231 of 13.8.1992, p.28 
7 OIL 384 of 31.12.1986, p.52 
which are of particular relevance to tourism (regional policies, environment, transport, 
consumer, education, training, cultural programmes, etc.). 
In the implementation of the Community Action Plan in 1995/96, particular attention has 
been given to: 
• Gaining and improving knowledge about European tourism; 
• Promoting transnational co-operation to stimulate the quality of tourist services; 
• Strengthening co-operation and consultation with public and private bodies and 
organisations concerned, and improved internal co-ordination within the Commission. 
Over the same period, relevant measures taken under other Community programmes and 
policies have contributed to: 
• facilitate citizens' mobility and access to tourism, as well as to improve protection of 
tourists as consumers; 
• improve the economic and social environment for the development of tourist 
activities; 
• bring about a sound relationship between tourist activities and natural, man-made and 
cultural resources, in the interest of balanced and sustainable tourism development. 
The key components of tourism, namely the tourist, the tourism industry, and natural and 
cultural resources have all been affected by actions undertaken at Community level in 
1995/96. 
For reasons which have been widely indicated,8 many of the actions carried out in the 
early part of the Tourism Action Plan (1993/95) have turned out to be problematic. The 
Commission is carrying out a full review of all completed actions undertaken under the 
Tourism Action Plan in earlier years and will proceed to raise recovery orders and to 
pursue irregularities where necessary. The disappointing results from the Plan represent a 
lost opportunity both in terms of the identification of problems and opportunities for 
tourism in Europe and in making valuable experience and information available to the 
managers of other Community policies and programmes. Worthwhile projects have 
nevertheless been launched under the Plan, especially in the latter years, and the 
experience gained will be invaluable in the management of future actions. 
2. ENCOURAGING MOBILITY AND PROTECTION OF TOURISTS 
Recent analysis shows that the internationalisation of tourist flows is growing faster than 
domestic tourism. Within the European Union the number of nights spent abroad by non­
residents has increased by 4.5%, while domestic tourism has increased by 1.9% in the 
last two years9. 239 million international tourists arrivals (40.3% of world market share) 
Court of Auditors Report 3/96 on tourist policy and the promotion of tourism, together with the 
Commission's replies OJ C 17 of 16.1.1997, p.l; and COM(96) 166 final of 30.04.1996 
European Commission, Tourism in Europe - Key Figures 1995-96, OOPEC, Luxembourg, 1997 
4 
and, according to the World Tourism Organisation, the equivalent of 165 billion dollars 
of receipts (39% of world market share) were registered10 in Member States in 1996. 
The tendency for Europeans to take shorter but more frequent holiday trips during the 
year, together with renewed interest from the United Slates and from Japan in visiting 
several EU Member States, are contributing to the expansion of the European tourist 
market. This is also one of the direct effects of the progressive establishment of the 
Single Market and, to an extent also of the development of the consumer policy, factors 
which tend to add to the confidence of tourists venturing outside their country of 
residence. 
Likewise, the gradual liberalisation of air transport rules and lower cost of fares have 
stimulated long-haul travel and have encouraged significant growth in tourists' flows, 
especially from southern to northern European countries, and more generally from EU to 
overseas countries. Moreover, the desire for greater mobility on the part of both the 
young and the elderly, and the disabled also has led to an increasing focus on their 
specific needs in terms of tourism related services required. 
The improvement of arrangements to ensure free movement of persons within the Union, 
the protection of consumers' rights, and facilitating the integration of the disabled, have 
been among the priority questions at Community level in the context of encouraging 
tourist activities. The emphasis on these aspects is a practical illustration of the efforts of 
the European Commission to place the citizen at the centre of the construction of Europe. 
2.1 Improving freedom of movement for tourists 
The right of the EU citizen to freely visit any Member State without restriction has been 
one of the earliest and most visible achievements of the European Community. The 
elimination of border controls between EU countries, the central element of the single 
market programme, represents a further commitment of the Union in favour of greater 
mobility of people within Europe, and ensuring their freedom to travel throughout the full 
Community territory without hindrance. 
The final implementation of this principle has not however progressed as rapidly as had 
been anticipated, in accordance with article 7A of the Treaty. The removal of controls at 
EU internal frontiers has been fully implemented only with regard to customs - in respect 
to luggage of travellers - and, as far as individuals are concerned, only in those countries 
which have implemented the Schengen agreement (Belgium, Germany, Spain, France, 
Luxembourg, Netherlands and Portugal). 
With a view to fostering the establishment of an area without "barriers" ensuring the removal of 
controls on persons at Member States' frontiers and facilitating persons from third countries as 
regards getting a visa to the European Union for the purpose of travel throughout its territory, the 
Commission proposed two complementary directives in 1995, which have been revised 
following the European Parliament's opinion of October 1996". The implementation, since 
10 World Tourism Organisation, Regional Report - liurope, Madrid, 1997 
1 ' COM(95) 346 and COM (95) 347 of 12.7. ] 995 revised by COM (97) Ï 06 of 20.3.1997 
11996, of two Council Regulations12 of particular interest to tourists from third countries, namely j 
one in re'atton to a unique EU model of VISA and the second indicating third countries of origin \ 
for which a Visa is required to enter EU territory, should contribute to strengthening the image 
of Europe as a single tourist destination. 
In parallel at the level of intergovernmental co-operation, the implementation of the Schengen 
agreement between seven European countries (Belgium, Germany, Spain, France, 
Luxembourg, Netherlands and Portugal) since 1995, and its further enlargement to three j 
other countries (Italy, Greece and Austria) envisaged in the course of 1997, will show the clear 
advantages for tourists in the removal of controls on persons at internal frontiers. 
2.2 Ensuring the protection of tourists as consumers 
Actions undertaken in the last two years have ensured in particular: 
the improvement of information to tourists in order to raise awareness of their 
rights in accordance with Community legislation in place; 
the assessment of particular problems considered of general relevance and 
affecting the economic and safety interests of tourists; 
the consolidation of legal instruments improving consumer protection at 
Community level and which benefit tourists; 
the definition of a new action plan13 identifying targeted priorities in consumer 
policy over the period 1996-1998; even if the plan does not specifically identify 
tourists as such as a priority category its implementation will ensure more 
effective tourist protection, insofar as its implementation is likely to touch on 
major concerns of tourists. 
; Regarding information, three complementary instruments have been finalised in 1996. Within 
| the framework of the Community Action Plan to assist tourism an electronic guide relating to 
facilities available to tourists in Europe has been distributed to many associations and enterprises 
I concerned. Following the initiative "Citizens first" launched in Î996, in order to better inform 
European citizens of their rights under the single market, a user-friendly brochure devoted to j 
"Travel in another country of the European Union" will be made available in all official j 
languages and widely disseminated in 1997. Under the 2nd Consumer Policy programme, a newj 
j edition of the European Consumer guide has been published, which includes a specific chapter j 
jon tourists' rights; an updated version of the guide will be made available in 1997. j 
I As regards assessment of problems involving tourists' interests, the Commission is evaluating 
khe results of the studies carried out on the implementation of the package travel Directive, on 
! fire security in hotels and similar establishments, and on overbooking in hotels, the latter carried 
j out within the framework of the Tourism Action Plan. ( 
i 
[Relevant legislation introduced in the framework of Consumer policy and which is of interest tc 
\tourists, include measures for improving information to be provided in the case of "Distance, 
12 OJEC n° L164 of 14.7.95, p.l; OJEC n° L 234 of 3.10.95, p.l, 
13 COM (95) 519 of 31.10.1995 
selling" contracts - following the Directive finally adopted in 199714 on this specific form of sale 
- and provisions for simplifying procedures on access to justice and settlement of individual 
consumer disputes by way of conciliation. 
The general commitment of the Commission to ensure a better integration of consumer 
policy into other Community policies, as well as the recognition of the need to improve 
internal co-ordination with regard to Community measures affecting tourism, should 
contribute towards more effective protection of tourists in Europe and of European 
citizens travelling abroad. 
2.3 Facilitating access to tourism for certain groups of the population 
Psychological and physical barriers, which make it more difficult to travel and take 
holidays in the case of persons concerned, are factors which can compromise full 
integration and participation of these citizens. The disabled and the elderly, who often 
suffer from reduced mobility, and which represent a significant part of both the EU 
population and of visitors from third countries fall into this category. Persons with 
disabilities of one type or another in the EU are reckoned to account for upwards of 10% 
of the population15, and to represent potential demand for commercial tourism related 
accommodation estimated at 350 million nights accommodation16. The part of the 
population over 65 years is increasing rapidly and is especially important to tourism from 
the point of view of time available for leisure all year round; this category represents 
16% of the total EU population and it is expected to increase by a further 5% or 61 
million by the year 200017. 
Against this background and bearing in mind the importance of the various segments of 
tourism demand, the Commission completed in 1996 an assessment of basic 
requirements and best practices with regard to the production, marketing and supply of 
tourist services to people with disabilities and to senior citizens. The joint work 
undertaken by the competent Commission Services has helped to develop the necessary 
synergy in the exercise of the Community instruments available; the direct implication 
of public authorities, and of the main European and national associations active on these 
issues, has helped to consolidate the co-operation process at a European level. This 
avoids overlapping of initiatives and helps identify best practices in the interest of 
tourists. 
The main actions finalised in the framework of the Community Action Plan to assist tourism, 
include two guides, one on special assistance and dedicated services available for tourists with 
disabilities in the EU and EFTA countries18, and the second on good practices to be considered 
by tourism operators for meeting the basic requirements of the disabled when organising and 
taking holidays19. With regard to senior citizens, an analysis of trends, needs and behaviour of 
14 European Parliament and Council Directive 97/7/EC of 20.1.1997. 
15 Eurostat, Statistics in Focus, Disabled persons:statistical data, 1995/10, Luxembourg. 
16 European Commission, Making Europe accessible for tourists with disabilities, OOPEC, 
Luxembourg, 1996 
17 Eurostat, Yearbook 1996, OOPEC, Luxembourg, 1996. 
18 European Commission, Travel Guides for disabled travellers ( to be made available in 1997). 
19 European Commission, Making Europe accessible for tourists with disabilities, OOPEC, 
Luxembourg, 1996 
this category has been developed in a report supported by the Commission and available to 
interested parties20. 
fn the context of social policy and of transport policy, the actions carried out in favour of tourists 
with disabilities have permitted, on the one hand, to explore the question of training measures 
for tourism professionals and of specific accommodation facilities and, on the other hand, to 
progress the work of defining the technical requirements for facilitating accessibility to different 
modes of transports. 
The wide dissemination of results of the work achieved will contribute to raise awareness 
of the specific needs of the elderly and of tourists with disabilities. The growing 
awareness of these issues by the tourism industry, supplemented by greater attention 
given to these issues at national and local level, will contribute towards a situation of 
equality of opportunities for persons often denied access to tourism facilities in the past. 
2.4 Encouraging responsibility - combating child sex tourism 
1996 was a year in which the awareness of the problem of child sex tourism came to the 
fore among European public opinion, tourists and the tourist industry in particular. 
Recognising the many dimensions of the problem and that co-ordinated action must be 
taken to discourage this phenomenon, led the Commission to adopt a communication on 
combating child sex tourism in November 199621. The communication provides a 
reference framework for Community action in this field, placing it in a medium and long 
term perspective, with the emphasis on a limited number of targeted objectives. The 
comprehensive set of proposals for action included in the communication are designed to 
help deter and punish child sex abusers, stem the flow of sex tourists from Europe, help 
to combat sex tourism in third countries and encourage Member States to take a united 
stand against child sex tourism. The approach set out is based on reinforcement of 
consultation and concertation, involving the member States, the tourism industry and the 
non-governmental organisations principally concerned. 
3. REINFORCING THE COMPETITIVENESS OF THE EUROPEAN 
TOURISM INDUSTRY 
Rapid changes in the world economic environment and greater internationalisation of 
both demand and supply of services are having a significant impact on tourism-related 
activities, in particular in Europe, which continues to represent the driving force of 
tourism world-wide. However, the traditional leadership of European tourism, built 
mainly on the diversity of its business activities and on the richness of its attractions, 
cannot be taken for granted. 
The combination of increasing challenges in the form of increased competition among 
tourist destinations, the opportunities offered by expanding segments of demand, 
coupled with greater expectations on the part of customers, require adjustments to 
tourism development strategies as far as the conception, production, marketing and 
provisions of tourist services are concerned. The effectiveness of these adjustments 
depends on the dynamism and efficiency of tourism enterprises and also on a wide range 
ÎQ ÂIT-FIA, La mobilité et les personnes âgées, Brussels, 1995 
11 COM(96) 547 Final of 27.11.1996 
of other activities which have a direct impact on the success of the tourism industry, 
without necessarily being part of the industry. 
Bearing in mind the significant contribution of tourism activities to the EU economy in 
terms of GDP (5.5%), of employment (6% of total employment), and of foreign trade 
(about 1/3 of trade in services), there is a continual need to promote the conditions for a 
favourable economic environment in which European tourism can develop. 
Within the framework of Community programmes and policies four main aspects have 
been considered central to improving the competitiveness of the European tourism 
industry and ensuring its development: 
fair competition among tourism enterprises; 
the modernisation of the tourism industry, and improving quality of tourist 
services through the training and qualification of the workforce; 
tourism development in less developed areas of the Union; 
encouraging quality-led tourism policies in third country partners. 
3.1 Stimulating a favourable environment for tourism business 
The effectiveness of the tourism market mechanism depends on the application of the 
single market, the respect of competition policy, and on better knowledge of the market 
structure and its evolution; more generally a "business-friendly" legislative environment 
is also essential. 
The structural characteristics and demography of the tourism industry make it particularly 
sensitive to full implementation of the requirements of the single market and of 
competition policy. The tourism industry involves a wide range of activities and several 
different branches, covering businesses which include a. limited number of very large 
multinational companies together with a very large number of Small and Medium-size 
Enterprises (SMEs); all parts of the industry must be familiar with the various segments 
of rapidly -evolving demand, which is influenced by several external and unpredictable 
factors. The need for reliable information explains the particular attention given by the 
Community to the development of a European statistical system on tourism, which can 
help decision-makers to better define their market strategies and to assess their 
psrto nuance. 
The preponderance of SMEs in tourism is evident. In the case, for example, of the 
"HoReCtd mzioi (covering hotels and other lodging accommodation, restaurants, 
canteens imâ catering), which accounts for more than 1.3 million enterprises in the EU 
{about 8.5% of the total) and generating 5.2% of total employment and 269 billion ECU 
in turnover, half of the 5.3 million persons employed work in small businesses (1 to 9 
employees), a further 1:5% are "one-mar." enterprises, and some 10% of persons 
employed work in large enterprises (more then 250 employees)22. The importance of 
large HoReCa enterprises in employment is especially significant in some countries, for 
example twice as much in the case of France and three times in the case of Finland, the 
European Commission, Enterprises in Europe - Fourth report, OOPEC, Luxembourg, 1996 
European. Union average; in other kfenfoe;. Etales: (Gc-tttiFJiy. Cpcdn. itph) xhr-
impcrtarxe of large enterpriser is bedew the I.LU average. 
As regards international comparison, in the case of the I «'£/*. ar.o Jacar die process of 
restructuring, which is stimulated arguai;';• by a. mere favourable business eindromnent, 
has taken place earlier than. in. Europe; in (here oases the ii:r.?cr.ri.c <: of r;nad business in 
ternir, of employment is on average fou;, times less signifiea;:.t in lapa.t; and afout three 
times less in the US than in Europe. 
An analysis* of the creatior of new em:ewrites23. while not oww^we in terms of 
coverage of ail Member Stales» confirms dw potential and Ike dynamism of tourism-
related enterprises: half of one million nevcy created fmr.s in AS'92 'wre in. die Trade 
and IioP.eCa sectors, in countries such as rrarce and the kfrlbTrkiKjS. riiî survival late 
after five years of activity in the HcReCa seetca is respectively dlnc and eidf:. virion is 
rcenerally fairly typical of small firm P. 
Ilcceiit analysis confirms? thai \he full milisation of Community instrirrents haï positive 
effects on the competitiveness of basinets, en employ mem. arc on the economy in 
general24. On die corirar;, a conservative anpmaeh tmvaras mamtmrirp barrier:? to non­
resident operators and unjustified projeclicnkt measures vend te frusvaiv nem 
entrepieneuriai initiatives and put a brake en burines: s <i y 11 ami am. 
In parallel with the improved application of the single market and ccmpetidGn iules, 
positive results can he expected for tourism enterprises follo'-vini; die launch of a ranpe of 
actions at Community level devoted to imp:*cv:ro the ermpeddveness of Imropean 
enterprises, Eramphs are to be found, in the rnnplijieation of adi ni nistmhve procedures 
and legislation, the arrangements for assistmr business to mane best \i^^ of opportunities 
such as the network of "Euro-info cenlmsd or dr stimulating business co-operation and 
internationalisation (such as "PC-NET" and "bkRE/'). These instruments are bedrp used to 
a gmvring extent (for example 575 business pre nies for the HoReCa rector ale ne have 
been introduced via the ERE network in iSS'5-9c for the purpose of research; np a 
partner), and the implementation of the Third Mulfiannua.! Programme for SI-dEs25 
adopted in. 1996 and covering the period Î v9?-2000 will vvovic^ further opportunities for 
tourism-based S M Es. 
Transport is an importait'., area of activity which influences tourism development and the 
competitiveness in tourism. Significant progress has been made at Community level in 
1 c95/96 towards the implementation of important objectives in this area. Despite the fact; 
that the majority cf tourists continue to prefe; the car as their main mode of travel, the 
growing importance of air transport, especially for international tourists, has been directly 
influenced by the progressive implementation of the liberalisation measures applied by 
the Community, and which entered their final phase from 1 April 1997. Liberalisation 
has already created increased opportunities for European travellers in terms of better 
connections, greater choice and lower fares. As an illustration of this, the production 
capacity of the Community air traffic market (seats offered per KM) reached 370 billion 
23 ibidem 
24 Communication from the Commission to the European Parliament and the Council on the impact 
and effectiveness of the Single Market. CCM(96) 520 final of 30.10.1996 
25 JCL6of 10.1.1997, p.25 
10 
in 1995, of which more than half (56%) is managed by charter companies26. The 
proportion of air passengers travelling with reduced ticket prices on regular flights has 
increased from 60.5% in 1985 to 70.9% in 1995; when charter passengers are included 
the share represented by reduced prices is between 90% and 95% of the total market. The 
problem of air traffic congestion and delays27, which was the subject of a White Paper in 
March 1996, compromises the efficiency of the European air transport system and causes 
serious difficulties for tourists; the revision of the provisions governing the Code of 
Conduct on Computer Reservation Systems (CRSs^ should help to bring about greater 
transparency and effectiveness to the systems through which most air booking is made. 
CRSs play a fundamental role in the tourism industry and, with the diffusion of internet 
based services and applications (e.g. World Wide Web), industry is now undergoing 
radical changes. By 2005 it is expected that 30% of the tourism-related information and 
20% of commerce will pass through Internet. 
The adoption of Community guidelines for the development of the Trans-European 
networks and of several measures devoted to improving safety in different means of 
transport, will contribute to a safer and more comprehensive system of mobility in 
Europe, as well as bringing many European tourist destinations within easy reach of 
greater numbers of people. 
The significant volume of transfrontier commercial transactions and payments for tourist 
services gives rise to a particular interest for the tourism industry in progress being made 
in the preparations for the changeover to the European Single Currency (EURO). The 
tourism industry and tourists are important targets in the general campaign launched by 
the Commission with a view to increasing the awareness of enterprises and of citizens of 
the practical aspects of the introduction of the EURO. Representatives of the main 
tourism-related sectors are part of the Round Table established by the Commission for 
this purpose. Moreover, it is intended to launch a study on the specific tourism aspects in 
1997. 
Efforts made in recent years to improve statistical information related to tourism have been 
consolidated with the adoption by the Council of Directive 95/57/EC on tourism statistics28. Its 
implementation started already in 1996, with the aid of financial assistance from the 
Commission. Preliminary results were made available to tourism operators in 1996 and in 1997, 
by way of new publications presenting key figures on European tourism. Assistance is being 
provided also to third countries in Central and Eastern Europe and in the Mediterranean region 
with a view to extending the European system to them. Improving knowledge of tourism was 
also the aim of specific studies undertaken within the framework of the Tourism Action Plan, in 
particular on business and conference tourism and yield management in tourism SMEs. The 
dissemination of the results began in 1996, notably in the context of work-shops and conferences 
involving the participation of industry representatives. 
As part of its work in monitoring the implementation of the single market, the Commission has 
been addressing the question of tourist guides and tour managers professions; the respect of the 
26 Communication from the Commission to the European Parliament and the Council on the impact 
of the Third package of liberalisation measures of air transport, COM(96) 514 final of 
23.10.1996. 
27 COM(95) 318 and White paper on air traffic management "Freeing Europe's Airspace" of 
6.3.1996. 
28 OJ L 291 of 6.12.1995, p.32 
11 
right of establishment as hotel manager has also been considered and a motivated opinion has' 
been addressed to a Member State considered to be in breach of the rules. As far as competition 
policy is concerned, several cases regarding tourism-related activities have been examined and 
accepted by the Commission in the framework of the state aids regime and of the control of 
mergers and acquisitions. 
As regards direct taxation there is a need for greater transparency and cc-operation between 
Member States, notably regarding tourism-related services which are often treated differently z± 
the national level. The development of a general tax framework envisaged by the Commission 
in its 1996 report, which reviews tax systems in the Member States, could lead to opportunities 
for developing enterprise and job creation in tourism. With regard to indirect taxation, VAT 
applicable to tourism-related services, and the future of duty-free sales are the main issues on 
which concern has been expressed by the tourism industry. With regard to duty-free scdes which 
are not compatible with the principles of the Single Market, both the Commission. ?.nd the 
Council have confirmed the deadline of 1999 for the end of the transitional period, thus avoiding 
further distorsion of competition vis-à-vis businesses selling goods tax-paid, and between 
different means of transport. Regarding VAT, in the framework of the foilov-up to the 
programme set up by the Commission in 1996 on a common VAT system and a timetable for the 
presentation of formal proposals to introduce this system, there will be specific opportunities to 
allow the tourism industry to state its opinion. The Council decision in 1996 on the standard rate 
of VAT should help to reduce existing disparities in relation to the treatment of tourism services. 
Despite much progress, there is still a certain lack of awareness of business in relation to 
European Community opportunities provided at Community level and insufficient co­
operation and consultation between all the parties concerned at the local, regional, 
national and European levels. The Commission's proposal of April 1996 on the First 
Multiannual Programme to Assist European Tourism "Philoxenia", still under 
examination of the Council, envisages a coherent framework within which measures ma}' 
be taken to help overcome this situation. In the meantime, efforts will continue in order 
to stimulate a better environment for tourism by identifying some of the more important 
problems and opportunities to be faced by the tourism industry. 
3.2 Fostering the modernisation of the tourism industry 
Up-grading human resources and techniques as well as improving management skills are 
basic requirements for speeding up the process of modernisation of the tourism industry 
in Europe; this is all the more important in that tourism is acknowledged as among those 
offering the best prospects for growth and job creation29. 
This process, already well advanced in the main EU competitor tourism markets, is being 
implemented more gradually in Europe; many tourism enterprises, especially SMEs, 
have difficulties in overcoming structural deficiencies in respect of education and 
vocational training on the one hand, and technological innovation on the other hand. 
Tourism-related activities, generally considered capable of regular growth and of high 
levels of employment, have confirmed this potential over many years. The skills of the 
29 CSE(96) 6 final of 27 November 1996, Communication from the Commission to the European 
Council, "Putting services to work"; WTTC, Travel and Tourism - Jobs for the millennium, 
London, 1997. 
12 
workforce do need, nevertheless, to be improved. In the case of hotel, restaurant and 
catering activities, where educational attainment levels are significantly below average in 
all Member States, 54% of those employed in 1995 had not progressed beyond basic 
schooling and only 7% had university degrees or the equivalent. The sector has registered 
the highest unemployment and long-term unemployment rate for woman (18%) and the 
second highest for men (15%)30. The contrast between the positive growth rates of the 
sector and the high unemployment rate registered might be explained by the high turn­
over of persons employed in the HoReCa sector. This could arise from the fact that this 
sector is often considered as transitional by job-seekers and the fact that many tourist-
related activities are seasonal. Tourism due to its structural conditions, has been among 
the first sectors to experiment with various forms of flexibility in the labour market; 
nevertheless it has proved very difficult to reduce precarity in employment or to limit the 
effect of seasonality on the professional carreers of employees. 
These problems have been addressed by representatives of employers and employees of 
the HoReCa sector both in the framework of the social dialogue platform and by way of 
several projects presented by tourism operators and supported by the Commission in 
1995 and 1996 which are within the framework of improved Community measures to 
encourage the employment and development of human resources. The main principle 
underpinning many of the projects concerned is the development of trans-national co­
operation among public authorities, the industry, and education and vocational training 
institutes. This approach should facilitate the exchange and development of best 
practices, thereby helping to overcome deficiencies of knowledge and of experience on 
several aspects of tourism activities. 
As an example of what can be achieved, encouraging results have been recorded through 
the progressive use by tourism business of the European Employment Services (EURES), 
which was established by the Commission in co-operation with the public employment 
services of the European Economic Area, with a view to facilitating worker mobility 
among participating countries. 
The application of technological development to tourism services - information oriented 
by the nature of their business - is also an important area of activity. The situation in 
Europe, while improving, falls short of the progress achieved in other major markets 
such as the United States. The sale of on-line travel services is considered a major 
success in the US market where they account for more than half of electronic commerce31 
and have expanded the turnover from 142 million dollars in 1994 to 600 million in 1996; 
a turnover of 3 billion dollars is estimated for the year 200032. In the US more than 70% 
of hotel reservations are made through a central reservation system to which the hotel is 
linked; by contrast to the case of France, a leader in Europe in this field, the largest hotel 
groups which are linked to an international reservation system attract only 8 to 10% of 
their total reservations through the system33. Internet-based integrated traveller 
information systems which combine tourism, culture and leisure information with travel 
and mobility information aspects are appearing in the marketplace. These open-systems 
could support a better approach to mobility and a more rational use of tourist resources. 
In this context new challenges and opportunities will also arise for the European tourism 
30 European Commission, Employment in Europe - 1996, OOPEC, Luxembourg, 1996 
31 Forrester Research consultants. 
32 "Les nouvelles technologies", Cahier Espaces n° 50, p.5 i, Paris, 1997 
33 ibidem, p. 10. 
13 
industry, especially for SMEs; peripheral and less known tourist destinations can now 
count on a new ally to improve marketing and management of tourist services. Delay in 
availing of up to date technological facilities will deprive European enterprises of 
opportunities for further market expansion and could in some cases compromise existing 
markets. Research in several scientific fields are still needed (e.g. multilingual aspects, 
search methods, user interface, business process). SMEs, which have a limited capacity 
to invest in innovation, will need training courses, support for learning best business 
practice in the new electronic environment, transfer of knowledge about telematics 
opportunities, development of common procedures and protocols. This is an aspect which 
the Commission is taking into account in the development of relevant Community 
Programmes. 
Conscious of the strategic influence of new technologies on the competitiveness of the 
European tourism industry, between 1994 and 1996, some 31.8 million ECU has been 
allocated for new technology applications for tourism services within the 4th Framework 
programme for Research, technological development and demonstration activities, in 
particular under the "IMPACT II" and "Telematics" programmes. Most of the selected 
projects, developed in partnership with tourism operators and specialised firms across 
several Member States, have focused on the development of information-tools for SMEs 
and for tourists capable of appreciating and promoting natural, cultural and other tourist 
attractions, and facilitating sustainable use of tourist facilities and of natural resources. 
Consultation and concertation at Community level between the social partners representing the 
HoReCa sector have progressed within the framework of the Social Dialogue Committee 
focusing in particular on the problems linked to professional profiles, worker mobility, and 
working conditions. 
For the purpose of implementing the Community initiative "Employment and development of 
human resources" (1994-1999), rural tourism as a source of employment has been considered in 
one of the networks established for local employment development actions. Under the European 
| Employment Services programme (EURES), a network of 450 advisers provides assistance and 
guidance to workers on work availability and social security rights. The specific section of the 
job vacancy data base devoted to tourism, which is part of the programme, has been often 
| solicited for the research of workers in the HoReCa sector and in well established tourist theme 
parks. Another example is the seasonal placement project for hotels and guesthouses in the 
(regions of South Bavaria and Baden Wurttemberg, co-ordinated by EURES and the German 
\3undesanstalt fur Arbeit, which creates an opportunity to place 260 Irish workers every year. 
t Under the renewed Community programmes Socrates34 and Leonardo35 (1995-1999), over the 
'first two years of implementation support has been provided for 16 projects in the field of 
\tourism, catering and hotel management aimed at curricula development, teaching staff and 
! student mobility, and for 40 projects dealing with the analysis and development of vocational 
training methods and activities in tourism professions, as well as trainee exchanges. 
[Under the ESPRIT III programme, where the development of computerised and multimedia-
tourism oriented tools have been supported, and within the framework of the various sectorial 
t applications of TELEMATICS, projects have also been supported in relation to the provision of 
I information on tourism facilities, and on cultural attractions and events. 
34 Decision No. 819/95/EC of the European Parliament and the Council. OJ No. L C7 of 
20.4.1995, p. 10 
35 Council Decision No. 94/819/EC OJ No. L 340 of 29.12.1994, p.8 
14 
The focus at Community level on developing instruments for the effective monitoring 
and evaluation of employment and labour market policies, and on establishing 
employment and innovation as key priorities for Europe will be of particular interest to 
the tourism industry. The Commission will support the activity of the social partners 
meeting in the context of the European social dialogue with the aim of promoting 
integration of the human factor as an indispensable element in the development of 
tourism. 
3.3. Stimulating tourism development in less developed areas 
The recognition of tourism's contribution to economic growth and to employment is 
reflected in the increased interest of Member States and of the Community in better 
exploiting its potential, especially in the less developed areas. The reduction of regional 
disparities is essential to ensure balanced economic development and to encourage the 
changes required throughout the Community in order to adapt to the requirements for 
successful participation in the Single Market. European structural policies are a key 
instrument in this process and tourism is an activity covered by most of the operational 
programmes of the Member States. 
The interlinkage between tourism and regional development is evident as shown by the 
number of measures (some 300 up to 1996) supported under the Structural Fund 
programmes and Community Initiatives, which specifically identify tourism as a subject 
for action. Most measures relate to infrastructure, human resources and to productive 
investments. The Structural Funds also contribute to the development of tourism in a 
wider sense. In rural areas, for example, they contribute to the preservation of the 
countryside, to maintaining local cultural traditions and skills, to the restoraion of 
villages - all important factors in increasing the attractiveness of Europe's rural areas to 
visitors - as well as to the development of newer rural tourism markets such as "eco-
tourism", "sport tourism", etc. The main objectives of the operational programmes 
established in partnership between the member States and the Commission aim at: 
• improving tourist accommodation, facilities and attractions; 
• developing tourism related enterprises; 
« upgrading professional qualifications and management resources in tourism; 
» stimulating the tourism product and market development. 
The breakdown of the amount made available by the Community for tourism related 
measures under the structural funds is estimated as follows: 
• 5850 million ECU, for the period 1994-1999, is available in regions whose 
development is lagging behind (Objective 1) and in regions of northern Europe with 
sparse populations (Objective 6); 
• 600 million ECU, mainly for the period 1994-1996, is available for measures in 
regions worst affected by industrial decline (Objective 2); 
• 800 million ECU, for the period 1994-1997, is available for measures in designated 
rural areas (Objective 5b). 
15 
The overall effort is greater than the sums indicated might suggest as they do not include 
measures which at this stage are not directly identifiable in respect of tourism. This is the 
case also for assistance which can be provided to farmers for diversification into tourism 
under objective 5a; and, more generally, for additional resources from public and private 
sources which in most cases complement the Community contribution. 
Tourism projects have also been supported under the Structural Funds within the 
framework of the Community Initiatives launched by the Commission in partnership with 
the Member States; these include actions designed to encourage local development in 
particular areas of the Community, as for rural areas under LEADER II, the SME 
Initiative, as well as measures designed to encourage cross-border and inter-regional co­
operation. 
Tourism related projects supported in the framework of Community initiatives, concern: 
local development in rural areas ("LEADER II"), where almost all of the 98 programmes 
approved, up to 1996, include measures to assist tourism activities; it is estimated that 
some 40% of funds available (Community contribution 1.755 billion ECU for the period 
1994-1999) will be made available for actions concerning the development of rural 
tourism; 
transborder and interregional co-operation ("INTERREG II"), for example five tourism 
oriented projects involving in particular Germany, Denmark, Luxembourg and Greece 
for which 68.7 million ECU have been made available; 
economies of the remote regions, most of which have a dependence on tourism 
activities, so as to strengthen their integration with the rest of the Union; one such 
project, financed for an amount of 29.5 MECU, concerns the Canary Islands; 
local development in areas depending on fishing ("PESCA"), contributing to reconvert 
human resources, and diversification/reconversion of activities in coastal zones to other 
sectors, including tourism. For the period 1994-99, approximately a total of 50 MECU 
(EC contribution) have been allocated to tourism projects36. The United Kingdom and 
Germany, for example, have each allocated 5 MECU for tourism projects, while other 
countries may benefit from a more general PESCA measure regarding "reconversion to 
other activities". In this framework a transnational co-operation project ("sea houses" 
network) has also been supported involving Portugal, Denmark, France, the United 
Kingdom, Italy, Greece, Sweden and Spain; 
alternative investments and employment in areas hit by the decline of the defence sector 
("KONVER II"), where six tourism projects presented by Germany, France, Denmark 
and Belgium, for an amount of 8.1 MECU have been approved; the proportion of funds 
available for use by tourism projects is particularly high in the case of the Wallonia 
region of Belgium (61%); South Normandy in France (87%) and Saarland in Germany 
(62%); 
economic conversion of coal-mining areas ("RECHAR II"), where eight tourism-related 
projects presented by Germany, the United Kingdom and France have been adopted for a 
total amount of 15.9 MECU; and economic conversion of areas affected by the decline 
of the steel industry ("RESIDER II") where six such projects for an amount of 6.8 
36 Within the 13 programmes of coastal Member States. 
16 
MECU concerning France, the Netherlands and several regions in Germany have been 
approved. 
the process of peace and reconciliation in Northern Ireland ("PEACE"), the special 
support programme agreed in 1995 includes a tourism project involving co-operation 
with Ireland for an amount of 49.9 MECU. 
In June 199537, the Commission presented its Communication on "a European strategy 
for encouraging local development and employment initiatives", highlighting both the 
potential that exists at local level for the creation of new jobs and the structural obstacles 
that have to be removed in order to ensure their development. The tourism sector was 
identified as one of 17 areas offering untapped job-creation potential. 
Since then, the question of local employment development has become a major theme in 
the context of Community action and has been the subject of numerous initiatives not 
only at the political level but also in terms of assistance from the Community Structural 
Funds38. 
Following the Commission President's initiative aimed at establishing a European 
Confidence Pact, the Florence Summit of Heads of State and Government (June 1996) 
gave a favourable response to the Commission's suggestion that around sixty territorial 
employment pacts be launched by way of experiment. These also related to tourism, and 
would be partly financed by exploiting the scope for manoeuvre available within 
structural policies. 
A full analysis of progress made towards achieving economic and social cohesion and on 
the manner in which the various instruments provided at Community level have 
contributed to that goal, is developed in the First Report on Economic and Social 
Cohesion adopted by the Commission in 199639. In this context, examples of Community 
financed tourism-related activities are provided. While it can be stated with confidence 
that Community measures designed to encourage tourism have contributed significantly 
to economic and social cohesion, more precise indications of the impact of such measures 
are difficult to determine. There are significant difficulties in any event evaluating the 
precise impact of structural policies, especially over a relatively short time scale. An 
evaluation of measures in terms of tourism is even more problematic in the sense that 
tourism comprises a wide range of economic activities and to varying degrees. 
The improvement in co-operation with Member States and in internal co-ordination 
within the Commission is essential for the purpose of proper assessment of the Structural 
Funds measures, which represent the main source of assistance to tourism development 
made available at Community level. Further initiatives are certainly required, as 
acknowledged by the Commission and confirmed by the Court of Auditors in its special 
report on tourism adopted in 199640, by the European Parliament, by the Economic and 
37 COM(95) 273 final of 13.6.1995 
38 COM(96) 109 of 20 March 1996, Community structural assistance and employment 
39 European Commission, First report on Economic and Social Cohesion, OOPEC, Luxembourg, 
1996 
OJC17of 16.1.1997 p. 1 40 
17 
Social Committee and by the Committee of the Regions, in the course of resolutions and 
opinions adopted in 1995 and in 199641. 
3.4 Encouraging tourism development in third country partners 
Recognising the role that tourism can play in the economic and social development of our 
partners and in the re-enforcement of relationships with Member States tourism is 
included among the areas of co-operation in most of the bilateral and regional 
agreements in place, as well as in the Lomé Convention, whose signatories now total 70 
African, Caribbean and Pacific countries. 
The support of the European Community has taken various forms and has involved 
allocation of significant levels of funding in accordance with the priorities established by 
the beneficiary countries and agreed by the Union. Examples of actions supported by the 
Community in this field, relate to the exchange of know-how; planning in tourism 
development; enhancement of training and education systems; and development of 
marketing tools. 
Central and Eastern European countries on the one hand, and Mediterranean countries are 
areas which have received particular attention within the framework of reinforced co­
operation with the European Union. 
Progressing the pre-accession strategy with a view to the enlargement of the Union in the 
case of the ten associated countries of Central Europe and of Cyprus is an important 
objective. The Commission, in co-operation with the national authorities concerned is 
evaluating the financial and legislative implications of the Community activity in the 
field of tourism. In the course of on-going bilateral meetings with tourism authorities of 
these countries, their particular interest in Community actions relating to tourism has 
been confirmed. The implementation of specific tourism projects approved under the 
Community programme "Phare" has also progressed; total EU funds of 38.9 MECU have 
been made over the period 1991 to 1995. Support has also been made available within 
the framework of 1995 Russian Action Programme, with a view to strengthening training 
and management in tourism skills. 
Following the adoption of the Barcelona Declaration in December 1995 and of the 
Council resolution of 13 May 1996 on Euro-Mediterranean co-operation in the field of 
tourism, co-operation in the field of tourism statistics has been promoted by the 
Commission, this being one of the priority domains foreseen by the Council and by our 
partners. It has not been possible to take measures in the two other domains, namely 
training and promotion in the field of tourism, but the elements for a coherent working 
programme of co-operation on tourism, including training and promotion, will be 
explored in 1997. The contribution which tourism and European professionals can 
provide in the framework of two of the main axes of Euro-Mediterranean co-operation, 
namely on the economic and social side as well as on the cultural side, will be further 
considered and encouraged by the Commission, taking into account the position 
41 OJ C347 of 18.11.1996, OJ C30 of 30.1.1997, OJ C42 of 10.2.1997 
18 
expressed by the European Parliament in its Resolution regarding the follow-up of the 
Barcelona Conference42. 
Regarding the Lomé Convention, with a view to ensuring more effectiveness in the 
implementation of the 8th European Development Fund (EDF) and to define a more 
coherent co-operation strategy in the field of tourism, an analysis of achievements and of 
the needs for future action should be finalised by the end 1997. 
As far as other regions are concerned, the Commission has noted the interest expressed 
by several countries in Central and Latin America and Asia in fostering co-operation in 
the field of tourism, which can be of mutual benefit for business in the EU and in the 
beneficiary countries. 
Consistent with the progressive liberalisation of trade in tourism-related services, the 
enforcement of the General Agreement on Trade in Services (GATS) which came into 
force on 1995 applies also to tourism. A large number of the World Trade Organisation's 
members have made commitments under this Agreement; this could lead to new 
opportunities being opened to European tourism business in providing services in a 
global market, in establishing a commercial presence abroad, and in supplying services in 
other countries. An assessment of the implementation of the GATS with regard to 
tourism and of its implications for the European tourism industry is the subject of 
ongoing examination. 
[in the framework of the Phare programme, the specific projects concerning tourism cover 
several years and concern Poland, Hungary, Estonia, Latvia, Lithuania, Romania and Slovenia; 
they focus in particular on: 
the provision of technical assistance for the establishment of a legal and institutional 
framework for tourism; 
training activities for tourism professionals; 
!- improvement/establishment of tourist information offices and of promotional tools; 
credit facilities for enterprises investing in the sector. 
Cross border co-operation projects on tourism have been supported by the Phare programme in 
1995 and include: 
co-operation between sea border regions of Estonia, Latvia, Lithuania, Poland, 
j Germany, Denmark, Sweden and Finland, (1.4 million ECU); 
! - co-operation between border regions of Hungary and Austria (1.2 million ECU); 
; - development of a tourist border zone between regions of Slovenia and Austria (0.45 
j million ECU). 
! . . , 
S Under the Tourism Action Plan, six complementary projects encouraging transnational co­
operation on tourism product development and culture and involving certain EU Member States, 
PECO, Maghreb countries, Cyprus and Malta, have been supported in 1995 and are due to 
I terminate in 1997 (0.8 million ECU). 
Under the financial instrument for the Euro-Mediterranean co-operation ("MEDA"43), the 
| project of co-operation or\ tourism statistics for the period 1997-1999 will benefit from an j 
E?, Resolution on the joint report by the Presidency of the Council and the Commission on 
Mediterranean Policy (EP.257.133 of 13.3.1997). 
Council Regulation 3483/96 of 23.7.1996 (OJ LI89 of 3C.7.1996) 
19 
allocation of 2.8 MECU. In the framework of the Middle Hast "Peace Process''5 programme, two! 
projects have been financed in 1995/96. These concent the establishment of a "University of 
Tourism and Culture for Peace", involving the Palestinian Authority, Israel, Morocco, Algeria, 
Tunisia and France (1.2 MECU); and the creation in Europe of a branch of die "Middle East and s 
Mediterranean Travel Agency and Tourism Association" (0.2 MECU). 
In the framework of the Lomé Convention and, on the basis of funds made available for the 6th 
and 7th European Development Fund (EDF), 27 tourism-related projects have been financed in 
1995/96, for a total amount of 3.3 MECU bringing to 69 MECU the allocation for tourism 
programmes over the period 1990 to 1996. The projects cever various measures of assistance 
such as marketing of the destination, training, tourism planning and product development. 
The range of instruments of co-operation which are being made available at Community 
level, in full respect for the needs of our third countries partners and in the mutual interest 
of both parties, can help decision-makers to meet opportunities and challenges in 
evolving tourism markets in the interest of encouraging growth and employment. Their 
effectiveness will depend on sound management of the resources available, of the 
efficiency of the enterprises concerned and of the action of public authorities in 
beneficiary countries in implementing a long-term tourism development strategy which is 
balanced and sustainable. 
4. ENCOURAGING RESPONSIBLE USE OF TOURLSM RESOURCES 
There is now greater awareness than ever of the importance of the responsible use of non­
renewable resources and of the need to ensure their transfer to future generations. 
According to the results of a Eurobarometer survey in 1996, 98% of the European 
population believes that protecting the environment and fighting pollution is a priority for 
the Union, and most (82%) consider that the problem is an immediate one requiring 
urgent attention44. This sensitivity to the environment is also 'reflected in the public's 
approach to planning holidays; the increasing importance of quality, including 
environmental conditions, is a factor which influences tourists' choice of a destination. 
All branches of the tourism industry and public authorities in the main destinations must 
focus on the problems linked with the impact of tourism activities on resources; and, on 
the positive side, it raises also the question of what tourism can bring by way of 
contribution to safeguarding the wealth of man-made., natural, and cultural resources. 
This direct link between tourism and cultural heritage, and the environment is widely 
recognised. As tourism depends on these resources as essential factors for die production 
and marketing of leisure activities it represents an idea! test-bed for monitoring the 
implementation of the principle of sustainable development. Tiie main object of 
Community activity in this field has been to stimulate a "virtuous circle" which helps to 
guide the economic environment relationship in tourism towards long-term 
sustainability. 
Despite commendable efforts undertaken by parts of the tourism industry and by various 
public and private organisations and individuals in favour of ;our:sm planning and 
management, there is scope for concerted actions which allow the parties concerned to 
44 Eurobarometer, nc 43.1 bis. June 1996 
20 
explore, in a more systematic way, measures applied in various Member States and 
Regions with a view to the identification and dissemination of the best practices. Care 
should be taken also to provide information to tourists and to tourism enterprises on the 
condition of the environment and of cultural sites in tourist destinations, and to encourage 
them to contribute to environmentally friendly use of sensitive resources. 
4.1 Strengthening sustainable tourism development 
Strengthening the quality of the natural and man-made environment is central to the 
success of tourist destinations and business, and an essential pre-requisite to achieving 
sustainable tourism development. 
Implementation of the relevant Community policies and actions in 1995/96 has involved 
continued efforts to integrate the principle of sustainability into tourism development 
strategies and practices. It is appropriate to underline that tourism is one of the five key 
sectors identified by the Commission for integrating this principle into other policies. 
Following an assessment of this policy45, Community activity has focused on the 
consolidation of existing measures and on the launch of selective new legislative and 
financial instruments which are of particular relevance to tourism development. The 
extension of the "LIFE" instruments from 1996 to 1999 have provided valuable financial 
support for pilot projects on sustainable tourism development. 
In the framework of the 5th Community Action Programme on the Environment, which 
has been reviewed in 1996, coastal zones have been the subject of special attention. The 
object is more effective systems of integrated management of areas often faced with 
serious problems generated by tourists flows, especially when concentrated in space and 
time46. As regards urban areas, an expert group set up by the Commission has made 
good progress in the definition of policy options and orientations for local development; 
the object is to combine the positive effects of tourist activities in cities with the 
safeguard of their human, cultural and environmental assets. 
Other measures, more of legislative nature, concern: 
the proposal for a revision of the Council Directive on Environment Impact 
Assessment47, which includes tourist facilities and resorts in its field of 
application; 
the establishment of a list of sites of Community importance and of a European 
network of protected areas ("Natura 2000"), in which some forms of "soft 
tourism" could be admitted, and which would contribute to the protection and 
management of these sites. 
It should be noted that the structural funds can also make a positive contribution to the 
development of environmentally sustainable forms of tourism, for example in rural areas 
45 See progress report from the Commission COM(95) 624 final of 10.01.1996. 
46 See COM (95) 511 of 31.10.95 and the Council conclusions on integrated management of coastal 
zone adopted on 18.12.95. 
47 Council common position of 25.7.1996 on a Proposal for a Directive amending Directive 
85/337/EEC. 
21 
where a high quality natural environment is one of the key attractions for tourists; 
^ programmes under Objective 5(b) and the Community Initiative LEADER II are 
[ promoting actions which develop tourism in rural areas based on learning about and 
| preserving the natural environment. 
J Complementary measures implemented in 1995-96 in the framework of the Action Plan 
j to assist Tourism have focused on increasing the awareness of tourism operators to 
| environmental issues, and on encouraging the dissemination of best practices which 
j combine tourism development and sustainability. The "European Prize for Tourism and 
:| the Environment" was awarded for the first time in 1995 following a competition among 
| 269 tourist destinations in the European Economic Area. This allowed several regions 
and destinations to be identified and recognised for their outstanding efforts in the 
planning, development and management of "sustainable tourism". There is a widespread 
interest in repeating this initiative as confirmed by the results of the specific evaluation 
\carried out in respect of each phase of the Prize. Within the framework of the Tourism 
Action Pian, eight demonstration projects focusing on traffic and visitor management and 
on the development of a network on tourism and the environment involving the main 
actors in this field, were launched in 1995. The results will be available in 1997. 
4.2. EnlifcLiciitg the partnership between tourism and culture 
European heritage, and more generally European culture, is rightly considered as one of 
the oldest and most important generator of tourism; it continues to contribute to the 
attractiveness of European cities and regions for visitors from ail over the world, and 
highlights awareness of the European identity. 
According to a survey carried out at major cultural sites in Europe, 60% of visitors 
interviewed are international tourists and a further 25% are domestic tourists48.The 
attraction of heritage has been a major factor in tourism expansion in several European 
destinations and has influenced the implementation of more effective policies of 
marketing, while preserving cultural sites. 
Community actions on culture undertaken in 1995/96 in accordance with Article 128 of 
the Treaty, contribute to this process49. Pending the adoption of the Commission's 
proposal for a multiannual programme called "Raphael"50, over 300 pilot projects relating 
to the conservation of European architectural heritage have been supported in 1995-96, 
with a contribution of 17.5 MECU by way of Community funding. With regard to 
contemporary culture, the Community has continued to support the European City of 
Culture and the European Cultural Month initiatives and, within the Kaleidoscope 
programme51, a range of pilot projects have been initiated based on transnational 
partnerships for the organisation of cultural events; these contribute to attracting greater 
numbers of tourists. 
48 G.Richards- C.Bonink, Marketing cultural tourism in Europe, in "Journal of vacation marketing", 
vol.1, n°2, 1995. 
49 For the assessment of all Community actions interesting culture, see the "First Report on the 
consideration of cultural aspects in European Community action", COM (96)160 final of 
17.04.1996. 
50 COM (95)110 final of 29.3.1995 
51 After the implementation of working programmes on annual basis, following a Commission's 
proposal, the European Parliament and the Council have adopted the multiannual programme 
"Kaleidoscope 2000" on 29.3.1996; OJ L 99 of 20.04.1996. 
22 
Within the Community Action Plan (1993/95) to Assist Tourism, the focus is on visitor 
management techniques for cultural sites. The results of projects supported in previous 
years have been disseminated and discussed on the occasion of specific workshops 
organised in 1996. On that occasion also, as a result of the joint co-operation established 
with other international organisations, such as the Council of Europe and Unesco, the 
need for a reinforced partnership between tourism enterprises and cultural interests has 
been underlined, and the value of full involvement of the Community in this process is 
evident. 
On the question of a more responsible use of energy in tourism activities, a number of 
pilot actions which encourage the use of renewable energy and energy consumption 
efficiency in tourism facilities and resorts have been supported under the Community 
energy policy52. 
5. CONCLUSIONS 
The review of Community actions affecting tourism in 1995/96, shows that the great 
majority of Community programmes and policies either now include a tourism dimension 
or have a significant impact on tourism-related activities. In this way Community 
policies affect directly or indirectly, European citizens, public authorities at various 
administrative levels, European enterprises and, in certain cases also, tourism interests in 
third countries. The progressive impact of Community actions reflects the recognition of 
the potential contribution of tourism to achieving the general objectives of the Union (as 
confirmed by article 3t of the Treaty on European Union) and the value added which 
Community actions bring in terms of the balanced and sustainable development of 
tourism. 
Despite the lack of a specific legal basis on tourism in the Treaty the Community has 
been able to undertake a wide range of tourism related measures based on the general 
provisions of the Treaty and/or on the provisions relating to sectoral policies. 
Nevertheless, as indicated by the Commission in its report to the Council on Civil 
Protection, Tourism and Energy, the continuity and coherence of Community action in 
this field could be facilitated by inserting provisions into the Treaty which would make 
such action more efficient and more visible53. 
From a tourism perspective, the impact of the important global effort could be further 
improved if the objectives and instruments of tourism measures could be taken into 
account more fully in the definition and implementation of other Community policies; 
improved co-ordination and joint actions between the Commission Services on key issues 
relating to developing the potential of tourism and which would contribute also to 
achieving the Union's objectives will help this process. 
In summary, the improvement of co-ordination and consultation with Member States and 
organisations representative of the various branches of tourism, is an essential pre-
52 See in particular Community programmes THERMIE ( in OJ L 185 of 17.7.1990), SAVE (in OJ 
L 307 of 8.11.1991) and ALTENER (in OJ L 235 of 18.9.1993). 
53 See SEC(96) 496 final of 03.04.1996, p.6. 
23 
requisite to the practical implementation of this approach and, within the limits of the 
current framework and resources applicable to tourism, is being developed as far as 
possible. 
Building on the experience of recent years, including the conclusions of both the Court of 
Auditors and of the evaluation of Community actions to assist tourism54, and of the wide 
consultation launched following the Green Paper on the role of the Union in the field of 
tourism, the key issues relating to the future of Community tourism policy have been 
addressed very fully by the Commission in 1995/1996. The Community needs to make a 
qualitative leap in its activities in the field of tourism which, taking full advantage of new 
developments and opportunities becoming available notably with regard to the 
"information society", will make the tourism industry more dynamic and more capable of 
creating new and better jobs. 
A more imaginative approach to Community tourism measures, focused on real priorities 
and attainable goals, can help Europe to maintain its leading position in the world 
tourism market and can bring value to the efforts of Member States and regions which 
will continue to exercise primary competence in this area. 
Under its proposal on the First Multiannual Programme to assist European Tourism -
"Philoxenia" 1997-2000 the Commission has proposed a framework which will provide a 
sound basis for action to encourage a more competitive industry and to improve quality 
in tourism in Europe. The proposal was presented to the Council of Ministers on 13 May 
1996 and has been the subject of a Resolution of the European Parliament55, and opinion 
of the Economic and Social Committee56 and of the Committee of the Regions57. The 
Council has not yet taken a decision on the proposal. 
54 COM(96) 166 final of 30.04.1996. 
55 OJC347 of 18.11.1996 
56 OJC30of30.1.1997 
57 OJC42 of 10.2.1997 24 
ANNEXES 
!<> 
ANNEX I 
Tourism in the balance of payments -1996 
Source: Eurostat 
24 
ANNEX 2 
Number of bedplaces in hotels and similar establishments -1996 
Source: Eurostat 
Sf 
ANNEX 3 
Nights spent by tourists in all types of registered 
tourist accommodation -1996 
Source: Eurostat 
2& 
iti'<il«i-A -f (Oi 
Community contributions allocated to tourism in Single 
Programming Documents and Communities Support Framework 
0°l 
ANNEX 4 b 
COMMUNITY CONTRIBUTIONS ALLOCATED TO TOURISM IU 
SINGLE PROGRAMMING DOCUMENTS AND COMMUNITY SUPPORT 
FRAMEWORKS (STRUCTURAL FUNDS 1994 - 1999) 
MECU 
250 500 
Kilometers |> «^— — \j>3 
3d> 

ISSN 0254-1475 
COM(97) 332 final 
DOCUMENTS 
EN 16 01 
Catalogue number : CB-CO-97-327-EN-C 
ISBN 92-78-21850-2 
Office for Official Publications of the European Communities 
L-2985 Luxembourg