EN Official Journal of the European Union CE 33/76

(2004/C 33 E/072)

WRITTEN QUESTION P-0743/03

by Helena Torres Marques (PSE) to the Commission

(4 March 2003)

Subject: EU funds for the Caribbean tourism sector

The European Community, its 15 Member States and the 77 ACP countries (Africa, Caribbean and Pacific) are in the process of ratifying the Cotonou Agreement, signed in June 2000, providing a framework for EU-ACP trade and cooperation for the next 20 years.

The cooperation aid with ACP countries is channelled through different instruments: Direct cooperation aid through the ninth European Development Fund and loans through the European Investment Bank, as well as various support facilities like the Centre for Development of Enterprise, Proinvest or the European Business Assistance Scheme.

Some sub-regions in the ACP countries, like the Caribbean islands, are fiercely competing with EU destinations in the share of world tourism destinations. Does the European Commission have data on the total amount of funds and financing made available by the EU to the Caribbean tourism sector? How much of the money is available for private investments?

Answer given by Mr Nielson on behalf of the Commission

(26 March 2003)

The Commission, like many other donors, sees the tourism sector as a potential key player in achieving poverty reduction, to the extent that it can contribute to economic growth and job creation.

The Commission is particularly keen on promoting sustainable tourism, supporting the setting up of appropriate policy frameworks and setting standards, especially in the environmental field. It also wishes to support representative national and regional associations, promote training and other business development services to local small hotels and tourism related producers and service providers. In the past, support has been provided to facilitate at tourism fairs, participation for local operators, which is no longer envisaged. In specific cases, the preservation of historical monuments and the setting up of eco-tourism projects has been ensured.

Overall, through the 7th and 8th European Development Fund (EDF), EUR 20,8 million has been approved for regional tourism development programmes in the Caribbean.

The all African, Caribbean and Pacific States (ACP) programme Proinvest (8th EDF), which aims at strengthening foreign direct investments in the ACP States and cooperation agreements, is also likely to be active in the tourism sector in the Caribbean to support the setting up of partnership agreements between local and European players.

Other resources (about EUR 10 million) of the 7th and 8th EDFs have been devoted to tourism development under national programmes for countries like Surinam, Dominica and the Organisation of Eastern Caribbean States (OECS).

Only one country, Grenada, has identified tourism as focal sector under the 9th EDF. A small EUR 3,2 million project, centred on the renovation of a fort, has been envisaged.

No funds have been allocated through the EDF for capital investments in the tourism sector in the Caribbean in order to support new economic infrastructure.

Even if not specifically targeted on the tourism sector, some resources have been devoted to the tourism sector through national/regional or all-ACP programmes aiming at supporting the strengthening of local enterprises through access to business development services. In that respect, one can note the EUR 0,8 million awarded by the Union-ACP Business Assistance Scheme (EBAS) programme to Caribbean tourist operators (associations, hotels, tour operators, etc.).

Only the European Investment Bank (EIB) — not the Commission — directly supports private capital investments. As far as the EIB is concerned, the institution tries to limit its direct support to projects having a significant socio-economic benefit, especially when promoted by local operators. In this respect based on data available to end 2001, only two EIB direct loans are relevant, both with local promoters: in Anguilla: The Great House — EUR 1,5 million and in Grenada The Resort Hotel for EUR 1,5 million — both projects were financed from risk capital resources.

Through its global loans to financial intermediaries the Bank has also supported around 70 small hotels mostly owned and managed by indigenous non-foreign-chain affiliated small and medium-sized enterprises (SME's). While such support for this indigenous private sector investment in the sector is very appropriate, it does, however, mean that the Bank is most exposed in that part of the hotel sector that is the least profitable and the most risky.

The Community is committed to pursuing its support of the tourism sector in the future.

As far as the possible impact on the European destinations, one can point out the following elements:

— The Caribbean is a specific tourist destination, which means it is unlikely to be a direct competitor for most European markets. Moreover, one can be reasonably confident that tourist demand will continue to increase, as it has done consistently over time despite the recent fluctuation. Under these conditions there should be no cause for concern about the possible negative impact of new competitors in the tourist market. Their presence should absorb increased demand and provide an incentive for European destinations to improve the quality of their provision within a competitive market;

— Strengthening the local operators and associations can benefit European tourist operators, in that they will be able to enter more easily in partnership with reliable local partners;