Tourism is a major economic activity with a broadly positive impact on economic growth and employment in Europe. It is also an increasingly important aspect in the life of European citizens, more and more of whom are travelling, either for leisure or business. As an activity which impinges on cultural and natural heritage and on traditions and contemporary cultures in the European Union, tourism provides a textbook example of the need to reconcile economic growth and sustainable development, including an ethical dimension. Tourism is also an important instrument for reinforcing Europe's image in the world, projecting our values and promoting the attractions of the European model, which is the result of centuries of cultural exchanges, linguistic diversity and creativity.

 

Early data for this year show mixed results with nearly as many countries posting visitor declines as increases. International visits are barely positive in the first quarter. Still, industry data for aviation, lodging, and expectations show we are on an upward, though modest, path to recovery.
Part of the reason for the halting recovery is the Icelandic volcano ash cloud which affected 6 million European travellers in April and May, costing European airlines and destinations US €1.7 billion in net sales. However, hotel occupancy rates through May indicate recovery is taking place across the region. However, this appears to reflect strength in domestic travel as well as the temporary demand from stranded passengers. The global economic recovery is underway with emerging economies in Asia and the Americas exhibiting robust growth. However, growth in the second half of the year is expected to moderate as the rebound in manufacturing subsides and stimulus spending is removed. This will be especially true in Europe as fiscal conditions have necessitated austerity measures in a number of countries, dampening the prospects of an already weak recovery. Nevertheless, we have reason to be cautiously optimistic for the remainder of the year. Both the euro and sterling have weakened significantly against the dollar, raising prospects for global visits to parts of Europe and increasing the incentive for intra-European travel.
In addition, the latest travel industry surveys show continued optimism over the very near term. Taking all this into account, Tourism Economics projects modest growth in international travel to European destinations this year. After a 6% decline in visits last year, international visitation is expected to grow roughly 3% in 2010. Growth will accelerate in 2011, when 2008 visitor levels will finally be regained.

 

 

This difficult background for the tourism industry has highlighted a number of challenges which the European tourism sector must face. In order to respond, it is essential that all operators in the sector combine their efforts and work within a consolidated political framework that takes account of the new EU priorities set out in the 'Europe 2020' strategy: 

Europe must remain the world's No 1 destination, able to capitalise on its territorial wealth and diversity.

 

 

Growing economic importance
Tourism is an economic activity capable of generating growth and employment in the EU, while contributing to development and economic and social integration, particularly of rural and mountain areas, coastal regions and islands, outlying and outermost regions or those undergoing convergence. With some 1.8 million businesses, primarily SMEs, employingapproximately 5.2 % of the total workforce (approximately 9.7 million jobs, with a significant proportion of young people), the European tourism industry1 generates over 5 % of EU GDP, a figure which is steadily rising.2 Tourism therefore represents the third largest socioeconomic activity in the EU after the trade and distribution and construction sectors. Taking into account the sectors linked to it,3 tourism's contribution to GDP is even greater; it is estimated to generate over 10 % of the European Union's GDP and provide approximately 12 % of all jobs.

In this regard, observing the trend over the last ten years, growth in employment in the tourism sector has almost always been more pronounced than in the rest of the economy. In addition, the European Union remains the world's No 1 tourist destination, with 370 million international tourist arrivals in 2008, or 40 % of arrivals around the world,4 7.6 million of them from the BRIC countries (Brazil, Russia, India and China), a significant increase over the 4.2 million in 2004. These arrivals generated revenues of around EUR 266 billion, 75 billion of which was from tourists coming from outside the Union.5 As regards journeys by Europeans themselves, they are estimated at approximately 1.4 billion, some 90 % of which were within the EU. According to estimates by the World Tourism Organisation (WTO), international tourist arrivals in Europe should increase significantly in the coming years. Finally, European tourists are one of the largest groups travelling to third countries, providing an extremely important source of revenue in many countries. These elements justify providing more detail of the external dimension of EU tourism policy, in order to maintain tourist flows from third countries but also to support EU partners, particularly in the Mediterranean.

 

 

Competences defined by the Lisbon Treaty added to an extensive track record
The European Commission, in cooperation with the Member States and associationsrepresenting the sector, has invested considerable effort over a number of years in implementing a series of actions intended to strengthen European tourism and itscompetitiveness.6 At the same time, the Commission has also set up an integrated and highly developed system to protect passengers and consumers, including those with disabilities or reduced mobility, on all means of transport.

 

Over the years, the European Union has been able to lay the foundations for a European tourism policy, stressing those factors which determine its competitiveness while taking account of the need for sustainable development. With the entry into force of the Lisbon Treaty, the importance of tourism is recognised; the European Union now has powers in this field to support, coordinate and complement action by the Member States. 

 

CHALLENGES AND OPPORTUNITIES FACING THE EUROPEAN TOURISM INDUSTRY
European tourism faces major challenges, which are at the same time opportunities. On the one hand, the industry must adapt to social developments which will influence tourist  demand; on the other, it must face up to the constraints imposed by the sector's current structure, its specific characteristics and its economic and social context.
European tourism has recently faced a difficult economic situation, aggravated by the eruption of the Eyjafjöll volcano.
Firstly, the economic and financial crisis affecting all economies since 2008 has had a considerable effect on demand for tourism services. Although they have continued to travel, Europeans have adapted their behaviour to circumstances, in particular by preferring less distant destinations and reducing the length of stay or their spending.  Tourist activity in Europe therefore fell by approximately 5.6 % in 2009. This overall figure conceals wide disparities: some regions, especially in eastern or northern Europe, were particularly affected and recorded a net fall of up to 8 % in the number of tourists. The crisis is ongoing, and the prospects for growth in tourist activity are poor. Thus, although WTO estimates foresee a rise in international tourist arrivals from 2010, it appears that recovery will be slower in Europe than in other regions of the world such as Asia.

 

This situation has been aggravated by the interruption of air traffic during April and May 2010 due to the presence of volcanic ash clouds. Although the disruption is difficult to assess, some estimates put the number of cancelled international tourist arrivals at over 2 million, and the direct cost to tour operators at approximately EUR 1 billion. To this can be added the revenues lost by the hotel sector and other tourism-related activities, which are hardly balanced out by the gains made by some services, such as car hire or taxi services. The consequences of this suspension of flights and certain courses of action were examined during the videoconference organised by the European Commission with the Ministers and Secretaries of State for Tourism on 28 April 2010 to assess the impact of the volcano crisis on tourism.

This situation requires the sector to adapt to new constraints. A number of factors are today affecting the development of tourism activity in Europe.
As with every other sector, the tourism industry is facing increasing global competition, with emerging or developing countries attracting increasing numbers of tourists. Faced with this competition, Europe must offer sustainable and high-quality tourism, playing on its comparative advantages, in particular the diversity of its countryside and extraordinary cultural wealth. It must also strengthen cooperation with those countries whose population can provide a source of visitors to European destinations as their standard of living increases. Another significant challenge relates to the demographic trends observed in Europe and the new tourist behaviour or expectations which result. These changes require the industry to adapt quickly in order to retain its level of competitiveness. In particular, the number of persons aged over 65 is expected to reach 20 % of the population in 2020.

This population group, consisting of individuals with both purchasing power and leisure time, represents significant market potential but also requires changes in the sector to meet its particular needs. The same applies to accommodating the increasing number of tourists with reduced mobility (recently estimated at 127 million persons), who have specific needs and must be integrated into the tourist supply and service structure. Other structural challenges must be fully integrated into tourism policy. Thus the supply of tourism services must in future take into account constraints linked to climate change, the scarcity of water resources, pressure on biodiversity and the risks to the cultural heritage posed by mass tourism. Tourism businesses need to reduce their use of drinking water where there is a risk of drought, and reduce their greenhouse gas emissions and environmental footprint.

In the coming years, climate change in Europe could determine a restructuring of travel models and affect certain destinations. Moreover, declining snow cover in Europe's mountainous regions could cause a fall in winter tourism. At the same time, rising sea levels could bring changes for tourism in coastal areas. European and national tourism policies will need to take account of all these structural changes, both by taking measures to relieve structural unemployment and by ensuring effective distribution of tourism-related investment. The development of information and communication technologies (ICT) and their increasing use by consumers has also radically changed the relationship between the tourism industry and its customer base. An assessment of the level of awareness, accessibility and use of these services by the various operators concerned has shown that they use ICT in different ways by virtue of factors such as their basic skills, their size and their relative position in the tourist chain.

 

AMBITIOUS OBJECTIVES FOR A NEW ACTION FRAMEWORK
In the face of the crisis and the increasing constraints on its activity, European tourism must evolve. This requires changes at all levels. The European Union must contribute to this and encourage a voluntary policy to speed up growth and create the conditions for making tourism more attractive.
In line with the Lisbon Treaty, the main aim of European tourism policy is to stimulatecompetitiveness in the sector, while being aware that in the long term, competitiveness is closely linked to the 'sustainable' way in which it is developed. 

 

http://ec.europa.eu/enterprise/sectors/tourism/files/communications/communication2010_en.pdf

 

 

Travel and tourism in Europe

Practical information on travelling in Europe and advice on what to see and do in the different countries. You can now travel round much of this culturally diverse continent without being stopped at borders or having to change currencies.

Travelling in Europe 2010

Travelling in Europe is the European Union’s official website for people travelling in the 27 countries of the EU. Whether you are on holiday or on business, you will find practical advice and helpful tips on a wealth of subjects, from what documents you need, to getting healthcare and using your mobile phone.

There is so much for the traveller to discover and all this has been made much easier thanks to the European Union. You can cross many borders within the EU without being checked and the euro makes it easier to shop around for bargains. So take advantage of all that is on offer and explore.

 

Money

The euro is used in 16 EU countries. Find out more about the euro, the exchange rates of other currencies and using cash and cards.

The euro is the legal tender for around 329 million people in 16 EU countries. The symbol for the euro is €.

The euro notes are identical in all countries but each country issues its own coins with one common side and one side displaying a distinctive national emblem. All the notes and coins can be used in all EU countries that have adopted the euro, including many of their overseas entities, such as the Azores, the Canaries, Ceuta and Melilla, French Guiana, Guadeloupe, Madeira, Martinique, Mayotte, Réunion, and Saint Pierre and Miquelon.

Monaco, San Marino and Vatican City have adopted the euro as their national currency which also gives them the right to issue a certain number of euro coins with their own national sides. A number of countries and territories use the euro as their de facto currency such as Andorra, Kosovo and Montenegro.

Denmark, Sweden and the United Kingdom do not currently use the euro. The eight countries that have entered the EU since 2004 are committed to adopting the euro when they are ready.

 

Staying healthy
As an EU citizen you can get free or reduced-cost healthcare should you fall ill on your travels. Find out here how the European Health Insurance Card is making this simpler. Check out bathing water quality or ozone levels before you go and decide what suncreams to take.

Access to healthcare

As an EU national, you can get free or reduced-cost healthcare if you are suddenly taken ill or have an accident during a temporary visit to any EU country, Iceland, Liechtenstein, Norway or Switzerland. Only publicly-funded health treatment is included in this scheme and each country has its own rules for public medical provision. In some, treatment is free, in some you pay part of the cost, in others you have to pay the full cost and then claim a refund. So keep all your bills, prescriptions and receipts.
A European health insurance card simplifies procedures, cuts red tape and helps to speed up the reimbursement of costs. If you do not yet have a card, get it from your local social security or sickness insurance office. Some countries incorporate the European card on the reverse side of a national card and others issue separate cards.

Travel insurance
You may want to take out travel insurance as only some EU countries pay the full cost of medical treatment. Illness or an accident abroad may mean extra travel, accommodation and repatriation costs, for which you may want to be insured.

Medicines
Take your prescription with you if you are carrying prescribed medicines. Do not exceed the quantities needed for your personal use during your trip, as large quantities of drugs can create suspicion.

Immunisation
There are, in general, no immunisation requirements when travelling in the EU. However, there are requirements or recommendations for certain of the EU’s overseas territories. Check with your doctor before you go or go to the World Health Organization website.

Bathing water
Strict standards are set for bathing water throughout the EU and the overall water quality is improving. An annual European Commission report gives useful water quality information for holiday-makers on both coastal and inland waters. There is also an interactive map where you can check on the state of bathing water anywhere in the EU.
If you see a Blue Flag on a beach or at a marina, you can be assured that it has reached specific standards on water quality, safety, services, environmental management and information. Over 2 700 beaches and marinas in the EU were awarded a Blue Flag in 2008/09. This voluntary scheme is run by the Foundation for Environmental Education.

Sunscreen products
Choosing the appropriate sunscreen product to take on holiday is becoming easier as a result of EU recommendations on clearer labelling. Choose something that protects against both UVB and UVA radiation. UVB radiation contributes to the risk of cancer and causes sunburn. The SPF factor, in numbers up to 50, indicates the level of protection against UVB radiation. UVA radiation results in skin ageing and interferes with the immune system and there will now be a UVA logo to indicate the required UVA protection, based on a standardised testing method. Misleading terms such as 'total protection' or 'sun block' will disappear. Using sunscreen products is, of course, only one way of protecting against the harmful effects of the sun.