A4-0078/98

Resolution on the euro and tourism

The European Parliament,

- having regard to Rule 148 of its Rules of Procedure,

- having regard to the EC Treaty, and in particular Article 3(t) thereof,

- having regard to its opinions of 28 November 1996 on the proposal for a Council Regulation on some provisions relating to the introduction of the euro ((OJ C 380, 16.12.1996, p. 47.)) and the proposal for a Council Regulation on the introduction of the euro ((OJ C 380, 16.12.1996, p. 50.)),

- having regard to its resolution of 28 November 1996 on the report of the European Monetary Institute on the changeover to the single currency (C4-0559/95) ((OJ C 380, 16.12.1996, p. 58.)),

- having regard to the study of the Monetary Subcommittee of its Committee on Economic and Monetary Affairs and Industrial Policy on 'the euro and tourism', carried out following the hearing of 21 May 1997,

- having regard to its document 'Tourism and the 1996 Intergovernmental Conference' (IGC Task Force, PE 166.461, 31 October 1997),

- having regard to the Commission communication of 1 October 1997 on 'practical aspects of the introduction of the euro' (COM(97)0491),

- having regard to the Commission Green Paper on 'the role of the Union in the field of tourism' (COM(95)0097),

- having regard to the Eurostat publication on 'Tourism in Europe', Ref. CA8694230ENC (1994),

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0078/98),

A. whereas Europe is still the most attractive tourism destination accounting for approximately 60% of the world market,

B. whereas the Union's market share fell by some ten percentage points between 1975 and 1996 (from 69.2% to 58.7%), and whereas, over the same period, its share of the world total of tourist revenue decreased by approximately 14%,

C. whereas tourism is one of the most important and dynamic activities at world level and has significant multiplier effects, both upstream and downstream, on economic activity; whereas it is estimated that over the next ten to fifteen years demand in the sector could double worldwide and increase by some 30% in Europe,

D. whereas the tourism industry is one of the most dynamic in terms of creating jobs and is particularly accessible for women and all those seeking their first job; whereas the employment generated by the sector, which currently accounts for 12.8% of all jobs in the EU (a figure which could rise to some 13% around 2007, creating 1.85 m new jobs), is to a large extent thanks to the labours of small and medium-sized undertakings (SMUs), which account for 95% of enterprises in the sector, some of them being micro-enterprises (employing fewer than ten people),

E. whereas recent trends at world level tend to justify this optimism, among them being the following factors: the expected improvement in the standard of living of consumers in many regions of the globe; the gradual ageing of the population in the industrialized countries; the impact of the gradual reduction in working time and the corresponding increase in leisure time; the trend to greater political and economic openness in the developing economies, etc.,

F. whereas other crucial factors include the recent advances in European integration, including the project for the single currency, the internal market, the Schengen agreement and the launching of enlargement negotiations with a substantial number of countries, whose citizens will have additional motivation to travel in the Union in order to become better acquainted with their new partners, benefiting for this purpose from easier mobility,

G. whereas the single currency and the resulting elimination of currency conversion costs, bank commissions, bureaucratic expenses and other obstacles and anti-efficiency factors which today characterize crossborder payments and transfers - given that almost two-thirds of cash value evaporates purely from the commissions charged for the successive conversion of the Union's currencies - will constitute a major incentive to the mobility of persons, goods and capital within the Union, thus stimulating the development of tourism,

H. whereas, with the introduction of the single currency and the consequent fading of the risks and uncertainties associated with exchange rate variation, business will be facilitated and there will be a more favourable climate for the development of new projects; whereas it is hoped that there will be a substantial increase in investment in the euro zone, in the tourism sector and in the economy in general, thanks to the actions of the Union's citizens and enterprises and, no less importantly, those originating outside the Union, resulting in a significant rise in business-related tourism,

I. whereas the creation of a single currency, stable and less subject to inflation, will contribute to reinforce Europe as a tourist destination, and will make it much easier to travel and invest within the Union, especially in the euro zone, potentially leading to a substantial increase in tourist numbers, with obvious advantages for the sector and for the EU economy,

J. whereas the introduction of the European currency and the abolition of border controls between the countries which have signed the Schengen agreement will have a simulating effect on tourist traffic,

K. whereas the non-participation of certain Member States from the moment of launching of the group of the euro's founder members, as appears will be the case with the UK, Denmark, Sweden and Greece, does not mean that those countries will not eventually accept the euro or that they will not come to adopt it as an international reserve currency, thus using it in their international exchanges, albeit, as appears obvious, to less advantage in global terms than if they were members of the euro zone; whereas, therefore, there is no reason as things stand to rule out the possibility that tourists will be able to use their euros in those Member States which do not join the euro zone from the beginning,

L. whereas exchange rate variations obviously have an impact on tourist movements and on the performance of tourism operators; whereas, following the introduction of the single currency, it will no longer be possible to justify relative price differences in terms of factors external to the tourism market proper - e.g. national exchange rate policy - rather than real tourist preferences; whereas this will be to the global benefit of the industry and will have a knock-on effect on operators' prices,

M. whereas prices will become far more transparent, with a consequent rise in competitive pressure, as members of the public will be able to compare prices directly - at least to some extent - without having to make currency conversions as in the past (something not immediately accessible for all tourists),

N. whereas this increased transparency will also highlight differences in indirect taxation rates, VAT in particular, which affect the tourism sector,

O. whereas the travel and tourism market will become more transparent and consequently more attractive with the introduction of the single currency, with a consequent overall improvement in price to performance ratio; whereas, however, this will have a major impact on competition in the sector, calling for a significant effort on the part of operators to adapt to the new commercial framework,

P. whereas the introduction of the single currency will also entail costs, in view of the nature of the activities concerned and the fact that 95% of enterprises in the sector are SMUs, arising from the need to adapt computer, accounting and other systems, the existence of a dual price system and of two different currencies over the period - preferably as short as possible - when the national currencies and the euro will both be in circulation, and the need to provide suitable staff training and information for tourists,

Q. whereas congress and business tourism is an expanding market worldwide; whereas the EU is set to gain a large share of this expanding market, particularly following the introduction of the euro which will enhance the EU's competitive advantage in this area,

R. whereas from 1 January 1999 the principle of 'no compulsion, no prohibition' will apply, meaning that for a three-year period both tourists and enterprises operating within the tourism market may continue to use the national currencies or, at any moment, opt for the euro (even though the latter will not be circulating in the form of notes and coins) for their contracts, accounts, banking transactions, etc,

1. Recognizes that tourists will be - from 1 January 1999 - the first and most important group to use and disseminate the euro and to experience the direct advantages of the European currency, with the disappearance of commission charges and of the discrepancy between buying and selling rates;

2. Considers that the euro is potentially a major instrument for decisively improving the present overall trends in the tourism industry, leading to an increase in its market share worldwide;

3. Considers that the tourist industry lives by its good standard of service to customers, and that the transition to the euro will present it with considerable challenges;

4. Considers that those involved in the tourist industry (travel agents, hoteliers, innkeepers, transport firms etc.) make contact with millions of customers daily and can thus play a constructive role as providers of information;

5. Recommends, therefore, that the tourist industry, as a token of its willingness to provide a good service, should show flexibility in meeting customers' wishes in the context of the transition to the euro. Accordingly firms should allow for the fact that some customers will want their bills made out in euros, and will wish to use euros to make non-cash payments, as early as the beginning of 1999;

6. Recommends that the Union and the Member States make use of their external representations to promote the euro among potential tourists, operators sending tourists to the EU and would-be investors;

7. Recommends that the Commission promote the euro with the main hotel chains as an instrument for the security and stability of their investments;

8. Recommends that all organizations in the tourist sector should begin as soon as possible to express their prices in euros; recommends the definition of specific programmes for tourism promotion with a view to preparing for the euro (particularly the adaptation of computer equipment and the purchase of new cash management systems) and, in particular, promoting the euro through tourism; to this end, the Member States and all associations in the sector should begin, as soon as possible, to express their prices in euros; such programmes should include all euro zone members, with special attention to the more remote regions;

9. Recommends that the particularly difficult situation of the tourist industry in the regions bordering on the future euro zone should be relieved by stepping up programmes, particularly Interreg, though not at the expense of undertakings in traditional tourist regions;

10. Recommends that, as a matter of urgency, programmes be defined for aid to staff training and the adaptation of the industry's human resources to the new reality of the single currency, encompassing the various areas affected: dealing with clients, management and accounts, tax matters, marketing and sales personnel, etc;

11. Reaffirms that the above programmes must take into account ecological and sustainable tourism; recommends that information campaigns be launched to promote regional tourism so as to ease the pressure on the environment caused by travel;

12. Recommends that particular importance be attached to providing information for those working in the industry; precise replies to customers' questions about the euro will only be possible where staff have themselves been informed in good time;

13. Recommends that the public information and explanation campaigns spell out the benefits of the euro for tourists, recalling that the success of the single currency projects will be largely dependent on its acceptance by the public; campaigns should, in particular, be targeted on particular groups of citizens, such as older people, young people, the blind and others, who, owing to their specific needs, stand to gain the most from being able to use a single currency for travel and tourism in the euro zone;

14. Insists that measures must be taken to protect tourists in their capacity as consumers, as many of the goods or services offered by the tourism industry are, by reason of their nature, paid for in advance on the basis of existing information, which means that information and publicity campaigns will be required;

15. Recommends that the tourist industry begin volunteering information and explanations about the euro at an early date; in particular it will be important to allay suspicions that the transfer to the new currency will be used as a smokescreen for unjustified price increases;

16. Recommends that the tourist industry in particular should be chary of rounding prices up since its customers are bound to be very attentive to price changes after the introduction of the euro;

17. Recommends that the national, regional and local authorities take account of the needs of the tourism sector in the process of adaptation to the euro, especially in the field of taxation;

18. Proposes, therefore, that distortions of competition such as the levying by Member States of antiquated special service taxes, which are harmful to tourism, should be rapidly abolished;

19. Recommends that measures be taken to ensure preferential treatment in accounting and fiscal terms, including a shorter amortization period for direct or indirect investment related to the process of introducing the single currency where it is established that it is connected to the introduction of the euro;

20. Calls, in the light of the increased competition to which tourist firms will be subjected, for every effort to be made to set up special finance programmes to help the innumerable small family firms with no access to the capital market make the transition to the euro and fund their future investments;

21. Recommends that measures be taken to harmonize taxation affecting the sector, especially VAT, to ensure that differences in fiscal treatment do not distort competition, and to ensure the highest possible transparency of price mechanisms;

22. Considers that every effort should be made to simplify considerably the VAT regulations for travel agencies, which are complex and hard to understand;

23. Recommends that large companies providing services to tourists and other undertakings involved in the sector (transport, communications, energy, etc) introduce the euro as soon as possible as an official means of payment;

24. Recommends that action be taken as soon as possible on a number of outstanding practical problems;

25. Recommends that, in view of the small size of undertakings in the sector, the period of dual circulation of the euro and the national currencies should be as brief as possible;

26. Recommends that, since the date of introduction has been fixed, tourism operators make the greatest possible use of electronic payment means, the rates for which must be made as attractive as possible given the intensive use which will be made of them and the increased competition;

27. Recommends that the EU institutions should take advantage of the great European tourism events - namely Universal Exhibitions (Lisbon 98 and Hanover 2000), World Football Championship (France 1998), Jubilee 2000 in Rome and the Millennium in London - as exceptional opportunities to promote the euro with the large tourist flows that will be generated towards and within Europe;

28. Recommends that hoteliers opt at an early stage to express their prices in both currencies, particularly for tour operators and travel agents; price lists for the 2001/2002 winter season should as far as possible be based on calculations in euros;

29. Proposes that the Commission should, from the year 2002, include in its reports on tourism in the EU a chapter on the impact of the euro on tourism levels and investments in the sector;

30. Recommends that travel agencies which work with electronic reservation systems should ascertain in good time when these systems will be able to work in several currencies;

31. Instructs its President to forward this resolution to the Commission and Council, and to the governments and parliaments of the Member States.

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