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Commissioner Verheugen: Tourism among EU Commission`s top priorities

The EU view that tourism`s contribution is vital to the future European economy was confirmed when four major associations representing the…

The EU view that tourism`s contribution is vital to the future European economy was confirmed when four major associations representing the European private tourism industry met with Commission Vice-President and Commissioner for Enterprise and Industry, Mr. Gunther Verheugen, on 18 February 2005.



This was Commissioner Verheugen`s first contact with the tourism industry since taking on his responsibility for Enterprise and industry. He emphasised that the strengthening of the competitiveness of Europe depends on the following conditions: a business friendly environment, a strong entrepreneurial spirit, a level playing field as well as better regulation. Tourism, he said, had been identified as one of three key sectors where sustainable growth and job creation were anticipated: Tourism has a huge potential in Europe that is not fully exploited, in particular after the EU enlargement. After stating that Tourism is a sector that needs much more political attention, Commissioner Verheugen explained how, before the end of the year, and in close consultation with the relevant stakeholders, he would present his policy proposal for tourism, not based on protectionism nor further regulation but rather on measures to support the realisation of the full potential of the industry.



The industry`s objective for the meeting was to stress the barriers to growth and job creation caused by the burden of regulation imposed on businesses within the EU. In this, Commissioner Verheugen was fully in agreement with the trade representatives. He recognised the administrative burden on tourism business, particularly small business. His intention was to ensure less bureaucracy, not more, during his term as Enterprise Commissioner.



Mr. Verheugen explained that when legislation is needed, the one-size-fits-all approach should be avoided. I will not accept future legislative initiatives without proper impact assessment he said, going on to explain that this would include asking Is the new proposed legislation creating any additional administrative burden? How will it effect competitiveness?. He also confirmed the Commission`s commitment to review the existing body of regulation with a view to Europe`s competitiveness.



In line with this, the President of ECTAA stressed the essential role for the European Commission`s Tourism Unit to monitor legislative developments by other Commission services and ensure the specific needs of the tourism industry are taken into consideration. As an example he cited the current developments in terms of VAT, which put travel agents and tour operators at a serious competitive disadvantage compared to other services suppliers as well as operators situated outside the EU.



To take this agenda forward, the Commissioner Verheugen offered regular contact and ongoing dialogue with the European tourism private sector, including his intention (diary permitting) to join the Tourism Forum in Malta and asked for the opportunity to address the tourism industry at high profile events. The 2006 ITB in Berlin was agreed as one such opportunity.



Full list of industry representatives

ECTAA – Travel Agents and Tour Operators in Europe
Mr. Norbert Draskovits, President
Mr. Michel de Blust, Secretary General



EFCO&HPA – Caravan and Camping Sites, Holiday Parks and Holiday Villages in Europe
Mr. Manuel Dias, President
Ms. Ros Pritchard, Secretary General



ETOA – Tour Operators bringing tourists to Europe
Mr. Tom Jenkins, Executive Director



HOTREC – Hotels, Restaurants and Cafes in Europe
Mr. Bernd Geyer, President
Ms. Marguerite Sequaris, Chief Executive



5 key figures on tourism

  • Tourist arrivals in Europe: an estimated 50% of arrivals in world tourism
  • The sector comprises about 1,5 million enterprises in the EU
  • These account for value added of 165 billion Euro
  • Workforce of 8 million, which represents 4% of total EU employment


Issues raised at the meeting included:

  • The burden of regulation and taxation on EU Tourism Business, reducing competitiveness with the tourism industry in countries outside the EU
  • Need to quantify the economic and social impact of tourism, drivers and barriers to tourism businesses to facilitate full impact assessment of regulatory proposals;
  • Regulation by the backdoor such as by standardisation bodies, the Commission`s Standing Committee on Food and Animal Health and by copyright and similar collecting bodies without the usual standards of consultation, transparency and accountability to stakeholders
  • Approved Destination Status vis-a-vis Chinese tourists and its follow-up.
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