Opinion of the Committee of the Regions on "The role of local and regional authorities in tourism development and the impact of European Union measures in the sphere of tourism"

(1999/C 293/08)

THE COMMITTEE OF THE REGIONS,

having regard to the decision taken by its bureau on 13 May 1998, under the fourth paragraphe of Article 198c of the Treaty establishing the European Community, to deliver an opinion on "The role of local and regional authorities in tourism development and the impact of European Union measures in the sphere of tourism";

having regard to the draft opinion (CdR 157/98 rev. 1) adopted by Commission 5 on 26 January 1999 (rapporteur: Mr Lazaridis),

adopted the following opinion at its 29th plenary session (meeting of 3 June ).

1. Introduction

1.1. At first glance, the role of local and regional authorities in tourism development may appear to have little bearing on the impact of EU measures in the sphere of tourism. It is the first aspect with which we are mainly concerned and which we must consider, analyse and ultimately place and promote - through actions and not just words - in the Community framework.

1.2. EU interest in tourism was first expressed officially in 1986 with the setting up of the Advisory Committee on Tourism, comprising representatives from the competent government bodies of the Member States of what was then the EEC and representatives from sectoral associations at European level. The task of the committee was to advise the European Commission, notably Directorate-General XXIII, which has a unit dealing with tourism. It was considered necessary to set up this body owing to the enormous economic importance of tourism in most of the Member States and for Europe as a whole, despite the fact that tourism is not mentioned anywhere in the founding treaty of the EEC as an area of Community competence. Appropriately, the Commission itself recently linked tourism with culture and the environment in the context of its policy to promote territorial employment pacts (Commission seminar on culture, the environment, tourism and employment in Viareggio on 2-3 October 1997, see Annex 1).

A quick glance at the figures shows us that in 1997 Europe (including the Community) registered 360816 million tourist arrivals from outside its borders, and that it is still the world's top tourist destination (among the continents or wider geographical entities), with 58,8 % of total global arrivals and 49,2 % of global revenues from tourism. The European Community received 247951 million, or 68,7 %, of these tourists and earned US$ 167156 million, or 76,7 % of total tourist revenues in Europe. In 1997, 11 Member States were among the top 20 world tourist destinations in terms of number of visitors and 12 Member States were among the top revenue-earners. Twelve Member States are also among the 20 countries with the highest world expenditure on tourism, since Europe is both a huge source market and a huge destination market for tourism. Thus the European Union clearly has a very important tourism industry on the demand and supply sides, with equally important economic and social implications, an industry that should be considered of crucial significance first for the EEC, and now for the EU. In addition to the direct impact of tourism on job creation, which is analysed in detail above, we must not ov erlook its contribution to social cohesion, not just in the Member States, but also in countries outside the EU. Free movement of tourists leads to exchanges of experience and information on cultural traditions, as well as bringing people closer together.

2. Contribution of local and regional authorities to the development of tourism in the EU

2.1. Tourism and products of the tourism industry are directly connected to the natural and man-made environment, and thus to the geography of the area where they are provided. Moreover, the environment itself is an important asset for cities and regions, which can be harnessed in a context of sustainable tourism. Tourism is therefore of immediate relevance to regions and localities, which is why the regional and local authorities of the Member States originally acquired a role in tourism development.

2.2. "Tourism products" can be defined as an unbroken chain of infrastructure and services provided by public (local and regional) authorities that starts with transporting the tourist by some means to a destination, and is affected by the quality of the road network and private or public transport systems, the water supply and sewage systems, environment (natural and urban), specific tourist amenities, quality of life in tourist areas, accessibility and planning of archaeological sites and monuments, organisation of cultural and recreational activities, provision of tourist information, and accurate promotion of tourist areas at home and abroad. As well as enriching "tourism products" through regional cultural programmes, cultural development can contribute to local and regional economic vitality in the following ways: a) by creating jobs in the culture industry or the cultural heritage sphere, b) increasing the attractiveness of a region for potential investors, and c) promoting the social integration of marginalised groups (cf. European Commission paper on culture as a regional resource), d)encouraging relations with regions sharing common characteristics or cultural traits, through the creation of cultural networks, and e) contributing to the conservation and restoration of the regional heritage.

2.3. Tourism involves a wide spectrum of anticipatory and regulatory activities - programmes and services - that have already been undertaken to a large extent by regional and local authorities, thanks to the general principles and trends within the EU towards decentralisation, as well as a range of non-specific EU funding programmes. These activities and measures must be incorporated into integrated tourism development strategies - in conjunction with culture, education, employment, the environment, infrastructure and spatial planning - to help the private sector and increase the investment appeal of regions and cities, creating an environment conducive to smooth cooperation and coordinated business measures between the public and private sectors. Their knowledge of local matters means that local authorities have an important role to play in coordinating tourism management activities.

The EU and the Member States must help local and regional authorities to put their activities on a professional footing and organise viable programmes which really meet current and future needs and so create sustainable employment.

2.4. Some regions are regularly represented at major tourist exhibitions in other countries and produce many specialised tourist publications (in paper and electronic form); these are regions that, with the help of EU funding and programmes, have made appropriate decisions on tourist infrastructure projects to promote and enhance their tourism products.

2.5. We can also see local and regional authorities that are mustering not just national resources but also, and most importantly, resources from the private sector, which they are involving, as part of a clear and specific partnership - in their efforts to promote the tourism products available. In this way, local and regional authorities are trying to find partners - e.g. businessmen, restaurant and café owners, even taxi drivers - among people who make their living from tourism, and to create specific tourism development programmes, making improvements to local tourism products and correcting their weaknesses.

2.6. Some local and regional authorities have drawn up a tourism development plan for their areas with the aim of taking stock, mobilising local players and laying down broad policy lines in the sphere of tourism. Local and regional authorities have put much effort into developing local infrastructure (beach facilities, cultural centres, town squares, signposting, organising inspections, etc.), and have also done business directly and indirectly in the tourism sector, with significant economic successes.

2.7. These activities are carried out with the help of the following strategies:

2.7.1. funding available to the regions from national and Community budgets (which the regions have full responsibility for allocating);

2.7.2. special taxes;

2.7.3. national institutional support structures;

2.7.4. national legislation that provides for policy-making powers and incentives in the sphere of tourism.

3. Aims and objectives of local and regional authorities' activities

3.1. As the linchpins of development in the sphere of tourism, local and regional authorities can make a positive contribution by:

3.1.1. Facilitating links between private operators in the tourism industry so as to optimise coordination of their activities.

3.1.2. Promoting communication between the social partners so that results can be achieved through joint action and coordination. Since they operate at local level, local and regional authorities can ensure optimum tailoring of tourism products, making the necessary environmental, cultural and other measures consistent with the type of tourism that is being developed in the region (summer, winter, sports, etc.). Within the framework of territorial employment pacts, which emphasise tourism and cultural development, this bottom-up policy can produce qualitative and quantitative improvements in the tourism sector (cf. the large number of pilot pacts for the Community's regions approved by the Commission that include tourism measures, Annex 2). Cooperation between local and regional authorities and the private tourism sector is therefore essential as it will lead to more appropriate use of the potential resources of the locality or region.

3.1.3. Being constantly in touch with local and regional issues, local and regional authorities receive immediate feedback on the impact of measures, and can therefore monitor more directly and effectively and develop flexible action programmes. Where there is no proper decentralisation, their current lack of power often slows or stymies achievement of the desired results. The greater their institutional dependence on central authorities, the more they refuse to take on those bodies' tasks because they are aware of their lack of power. The lack of proper decentralisation to the regional and local level slows or stymies these activities.

Private companies also need to review their business behaviour, moving towards a more extensive, intelligent use of the environment in which they are located, using all potential public resources to enhance and improve their range of tourism products; this would boost employment policies, economies and related products. In short, they should attempt to boost all aspects of the regions and localities through tourism.

3.1.4. The more responsibility local and regional authorities have for many of tourism's "production processes", the more tourism will develop. These authorities need to be involved not only in monitoring processes, but also in the on-going processes of development, innovation and competitiveness in tourism. This higher level of commitment must also include the immediate acquisition of technical skills and know-how by those responsible for tourism in the regional and local authorities.

3.1.5. The lack of any proper or strategic interregional communication often creates an inability to exploit opportunities for mutual cooperation that would be of benefit to tourism in the regions involved. Our tourism network needs to fulfil the following two requirements: an individual remit for each region and direct cooperation with other regions for mutual benefit.

3.1.6. The intangible, multidisciplinary and innovative aspects of many tourism activities prevents them being adequately understood and interpreted by many social and economic players; this makes it impossible to create a coherent competitive environment. Europe's regions must therefore make an effort to understand tourism in order to organise this sector that is vulnerable and fragile, but at the same time dynamic and promising.

3.1.7. At the stage of land-use planning and management, local and regional authorities, as well as central government, must remember that they have to be able to satisfy not just the local population, but also all visitors and tourists, thus helping to make land use sustainable and well-balanced.

3.2. Inadequate interregional communication at national and European level creates a situation of imperfect competition, resulting in distortions and causing effort and resources to be wasted in trying to achieve objectives.

3.3. In certain cases, the fact that it is easy to formulate subjective goals distorts the development of tourism, not just at national level but also at regional, and even local, level. Well-balanced local and regional tourism development must not only prevent changes and distortion in the specific features of a locality or region, but must enhance these features, since both local people and visitors are demanding more and more distinctive characteristics.

3.4. The fact that local and regional authorities' understanding of the technical aspects of tourism is still limited, and that national and international institutions are unable to provide them with the necessary technical support, is slowing the development and promotion of tourism products. There is a need for regions and localities to be encouraged to see their own distinct tourism goals within the framework of national or European strategies, in order that these different goals can be integrated thereby maximising their impact.

3.5. Local authorities nevertheless provide substantial financial resources for tourism development. New technologies in particular can be used to improve the promotion and development of areas across national and European frontiers. Local and regional authorities must also endeavour to counter the negative effects of tourism often caused by concentrating tourist development too much in one place, because this type of development further exacerbates regional problems such as crime, which makes residents less secure, as well as the degeneration of local features and undermining of distinctive local resources. Local and regional authorities must counter the adverse impact of many tourism activities, although they also need to improve services that make it possible to reconcile ordinary life in cities and regions, with the presence and passage of tourists.

This problem is often exacerbated in the declining traditional European seaside resorts and similar destinations where failure to invest and adapt to structural change in holiday trends has resulted in a degeneration of resort infrastructure, rising unemployment, low average earnings and increasing levels of crime and urban deprivation. Local and regional authorities must therefore endeavour to implement with the help of national and European authorities regeneration plans that aim to provide more stable employment in modern tourism growth markets and outside the tourism sector.

3.6. To take steps to ensure that the tourist policy of the regional and local administrations is transversal and that it requires the various tiers of authority to coordinate their activities in order to produce a multiplier effect for actions which, instead of being segmented by area, would be inter-linked in order to achieve the same objectives.

4. Current Community action: strengths and weaknesses

4.1. Obviously there are at present wide variations in the degree of development of tourism both between and within Member States, and neither local nor regional authorities have become sufficiently aware that tourism, as a complementary product, must be more energetically promoted if convergence criteria are to be met. However, at the moment Member States' interest in tourism is not equally great from a social and economic point of view; differences exist, and it is clear that there are differences as to whether they favour more or less Community intervention. A crucial difference tends to be the level of demand in each country, since demand and supply sides involve quite contradictory interests.

4.2. Certain Member States probably do not want Community intervention - regulatory or otherwise - in their tourism markets, on the grounds that a totally free market functions perfectly; it may be that they do not wish more Community funds to be allocated to the tourism sector in the Member States than are already being provided through the structural funds. Thus these countries have reservations, in the sense that they would like to restrict Community intervention (reflecting the current trend in the EU), or on financial grounds, fearing that new funding will be requested. At the same time, other Member States are calling for more Community interest and intervention (because they believe that there are distortions in the functioning of the tourism market, e.g. excessive power of tour operators).

4.3. The European Union has therefore not yet managed to introduce a Community tourism policy in a treaty revision, a deficit that we feel needs to be rectified as soon as possible. The European Union should therefore be enabled, as part of its remit, to provide appropriate support for the tourism policy pursued by Member States and by regional and local authorities. Bearing in mind that Community policies are being formulated in areas that have implications for tourism - e.g. consumer protection, environmental protection and transport - sufficient account should be taken of the justified concerns of the European tourism industry so as to ensure competitiveness on the international tourism market.

In particular, attention should be paid to the fact that spatial development action and initiatives do not regard tourism as a priority issue. Tourism policy becomes, as we have seen, a specific compartment of more general actions and policies.

4.4. Tourism is thus often required to bear costs and adapt to conditions that have no relation to its needs and practical potential, when Community legislation is implemented as prescribed by other Community policies. Moreover, the lack of a clear and distinct tourism policy is distorting the social dialogue: a typical example is the fact that the European confederation linking the different tourism sectors is not an equal partner in the social dialogue, but is represented by the trade and industry confederation (which speaks for a part of the economy whose situation and needs are quite different), to which it acts as "special adviser".

The lack of a tourism policy is also making it impossible to define jointly goals and measures specific to tourism, e.g. the objective of social justice, while satisfying the legitimate expectations of the general public regarding the right to holidays and leisure for everybody.

4.5. Increased cooperation on tourism policy between the Member States and regions could be necessary, especially considering that the slice of the international tourist "cake" taken by Europe's tourism industry is steadily diminishing owing to the high cost of holidays and competition from distant (exotic) destinations. The Member States and regions, who are the relevant players in Community tourism policy, should step up their efforts to formulate and implement an appropriate and consistent strategy for maintaining its position in the international market. A glance at the statistics shows us that within one decade (1988-1997), the European Community's share in tourist arrivals in the continent as a whole fell from 74 % to 68,7 % and its share in revenues from 82,9 % to 76,7 %.

Furthermore, given the economic and social importance of tourism for the coming years and recent forecasts of the World Tourism Organisation (WTO) that international tourism will triple over the next 20 years, there is an urgent need to:

- strengthen the competitiveness of tourism in Europe, focusing on tourism development in priority land-use planning areas;

- improve systems of development planning and management of the most popular locations.

4.6. The EU has hitherto focused on certain areas, such as keeping uniform statistics, improving skills transfer in the sphere of tourism, protection of the tourist as a consumer, promotion of the cultural heritage (achieved by associating tourism with cultural assets), sustainable tourism, etc. Efforts are now being made to develop and promote the potential of tourism as a high-employment sector, as a source of jobs, in a Europe scourged by unemployment, especially among young people and women. To this end, a committee with representatives from the tourism sector has been set up which has presented its conclusions regarding Community action. The small team in the European Commission is consequently running study and information programmes, e.g. on the development of tourism in cities and their historic centres, and on introducing the euro in the tourism sector. (The main conclusions of the High Level Group are that the contribution of tourism to growth and employment requires greater political recognition at all levels, and that this should lead to positive action which will reinforce the potential of the tourism industry to bring further and sustainable growth. Besides, the greater integration of tourism preoccupations and priorities into the development and implementation of Community programmes and policies presents a unique opportunity for the Community to contribute to greater competitiveness of the European industry. EU action in the tourism sector must be better attuned and backed by improved coordination of measures, e.g. budgetary measures, taken by the various Commission Directorates. Also the development of effective consultation and cooperation among the parties concerned at local, regional, national and European levels is an essential prerequisite to maximising the contribution of tourism to growth.).

4.7. Now, more than ever before, there is an awareness of how important it is to use non-renewable resources responsibly and to ensure that resources are passed on to future generations. According to a 1996 Eurobarometer survey, 98 % of Europe's population believe that protecting the environment and combating pollution should be priorities for the Union, and a majority (82 %) consider these problems to be urgent and to necessitate immediate action. This awareness of the environment is also reflected in people's holiday plans: increasingly, quality - including environmental conditions - and personal safety are crucial factors in tourists' choice of destination. All branches of the tourist industry and public authorities in the main destination areas must address the problems associated with the impact of tourist activities on resources. The environmental impact of major projects must be routinely assessed. On the positive side, there is the question of how tourism can help to preserve the wealth of human, natural and cultural resources.

4.8. This direct link between tourism, cultural heritage and the environment is widely recognised. Given that tourism depends on these resources and that they are seen as vital elements in the production and marketing of leisure activities, it is an ideal testing ground for pursuing and applying the principle of sustainable development. The main aim of Community action in this sphere is to encourage a "virtuous circle" that will help to lead the relationship between the economy and the environment in the sphere of tourism towards long-term sustainability.

4.9. Despite the laudable efforts of the tourist industry and various public and private organisations and individuals in tourism planning and management, there is still room for coordinated projects that would enable those involved to look more systematically at measures being implemented in various Member States and regions with the aim of identifying and promoting better practice. Efforts should also be made to inform tourists and businesses involved in tourism about the state of the environment and of cultural sites in tourist destinations, and to encourage them also to participate in environment-friendly treatment of sensitive resources.

Moreover, tourism services should be teamed up with the local craft industry and artistic/cultural offerings. These could provide a real springboard for spatial development.

4.10. Improving the quality of the natural and man-made environment is crucially important to the success of tourist destinations and the tourism industry, and is a basic prerequisite for achieving sustainable tourism. However, within the single European space where free movement of people is allowed, concern for the security of all citizens (including tourists) must prompt the legal and security authorities of all the Member States to improve their cooperation in order to prevent and combat organised crime, different forms of abuse and ill treatment, crimes against children, racism, xenophobia, drug trafficking, terrorism, etc.

4.11. When the relevant Community policies and measures were implemented in 1995/1996, a persistent effort was made to incorporate the principle of sustainability into measures and practices for tourism development. It should be noted that tourism is one of the five basic sectors identified by the Commission where the principle of sustainability is to be applied in other policy areas. After this policy had been evaluated, Community action focused on standardising existing measures and introducing selected new legislative and financial measures relating specifically to tourism development.

4.12. It is a known fact that tourism benefits greatly from the EU structural funds, Community initiatives and other special Community programmes. For example, it receives funding for accommodation, special tourist infrastructures and specific promotional activities under the second Community Support Framework, under initiatives such as Interreg II, Leader II, and LIFE Tourism is also supported by the structural funds, through large-scale general infrastructure projects to build major road routes and harbours, modernise the railway network, etc. A comprehensive analysis of progress made towards achieving economic and social cohesion and the means by which the various types of assistance offered by the Community have promoted this goal is presented in the first report on economic and social cohesion, which was approved by the Commission in 1996. This report gives examples of measures relating to tourism that are funded by the Community. Although there is no doubt that Community measures designed to promote tourism have made an important contribution to economic and social cohesion, it is difficult to ascertain more precisely the impact of these measures. It is very difficult to evaluate accurately the effects of the structural policies, particularly over a relatively short period of time. Evaluating the way measures affect tourism is even more difficult, since tourism embraces a broad range of economic activities of varying scope.

4.13. Tourism is increasingly proving to be a sector in which skilled and permanent jobs are created, and also as relevant to land-use planning in the sense that it is an industry whose workforce cannot be relocated, a sector made up of job-creating SMEs established over a wide area. Tourism development in less-developed regions can enable such areas to catch up in social and economic terms and to improve land-use equilibrium by capitalising on their particular features and assets.

These attributes warrant the recognition of tourism at European level so that the resources are provided to meet the challenges faced.

5. Proposals

5.1. The members of the Committee, given their proximity to the real problems of tourism and their role in managing these problems at local level, must address them as part of their remit and give an example to the other EU bodies.

5.2. The Committee of the Regions believes that:

the efforts of local and regional authorities to achieve sustainable development will be particularly boosted if:

5.2.1. the EU ensures that consideration is also given to the needs of the tourist sector when formulating Community policies which also have an effect on tourism such as its consumer protection, environment and transport policies. In particular, care should be taken to ensure that the market operates freely, that monopolies and oligopolies are prevented from developing and that Member States gear their national policies towards the need for free movement of people and capital.

Local and regional authorities should be more actively involved in forging and implementing policies affecting the tourism sector. This would require initiating a consultation procedure on the objectives sought, and coordination of future action relevant to the sector, within the framework of the process of financial reforms under way in the EU (Agenda 2000 and the framework programme for culture 2000).

5.2.2. the EU promotes decentralisation, so that local and regional authorities have equal economic power with respect to development, in particular tourism development, especially as regards schemes to revive crafts activities that draw on local traditions.

The EU must guarantee the efficient use of resources; it must not support isolated measures with no clear Community added value; preferably, it must focus efforts on boosting measures involving cooperation between local and regional authorities, particularly when these have a transnational dimension, or when they may have a significant impact on the tourist sector as a whole.

5.2.3. the European Union pursues independent funding programmes and in so doing transfers responsibility for long-term deployment of these funds to local and regional authorities, thereby enhancing the role of those authorities who would take over these functions, or who already perform them;

5.2.4. The Member States are urged to earmark a proportion of Structural Fund aid for tourism under the relevant development plans and programmes, in order to strengthen (a) direct EU cooperation with local and regional authorities and (b) interregional, transnational and cross-border cooperation on the further development of tourism.

5.2.4. a it is made easier for Community funded programmes to dovetail - within the confines of permitted levels of state aid - with national funding systems for the development of enterprise and jobs in the tourism sector;

5.2.5. an improvement in training and the reciprocal recognition of qualification by increasing excellency in the training of professionals and thereby consolidating high-quality tourism is supported;

5.2.6. the impact on employment is taken greater account of in distributing aid and priority is given to "year-round" employment;

5.2.7. Cooperation between regions is promoted to make better use of tourist potential from other countries. It would be particularly useful to create transnational networks for the exchange of technical know-how and joint promotion of tourist packages, traditional products and experience, especially between regional and local authorities, by encouraging the creation of regional tourist routes and fostering action by the Council of European Municipalities and Regions and the Assembly of European Regions as well as that of sectoral and geographic networks set up by regional and local authorities. It would also be extremely useful to set up a uniform system of statistics and quality assessment.

5.2.8. What is needed now in Europe is economic and social convergence, favourable development conditions for national, regional and local economies, and the provision of jobs. Tourism is undeniably an economic, social, cultural and environmental growth sector, which contributes to job creation. The EU must therefore foster cooperation between the public and private sectors, acknowledging the leading role of local and regional authorities in such interactions to achieve integrated tourism management objectives by disseminating examples of best practice in this area.

Brussels, 3 June 1999.

The President

of the Committee of the Regions

Manfred DAMMEYER

APPENDIX I

to the opinion of the Committee of the Regions

List of pilot territorial employment pacts

The tourist and cultural schemes are being operated in the underlined regions in the table

(Source:

DG XVI)

Liste des promoteurs techniques hommes des pactes territoriaux pour l'emploi

>TABLE>

APPENDIX II

to the opinion of the Committee of the Regions

TABLEAU N° 1

Nombre d'emplois culturels directs dans les pays de l'Union Européenne

>TABLE>

TABLEAU N° 2

Nombre d'emplois culturels directs dans les pays de l'Union Européenne, sans les métiers d'art

>TABLE>

TABLEAU N° 3

Nombre d'emplois culturels directs dans les pays de l'Union Européenne en % de la population active

>TABLE>

TABLEAU N° 4

Nombre d'emplois culturels directs dans les pays de l'Union Européenne en % de la population active, métiers d'art exclus

>TABLE>