a project financed by the european union, the medalliance ......this tourism sector strategy paper...

Project implementation by the MedAlliance consortium under ANIMA coordination

A project financed by the European Union, the MedAlliance and the local authorities of Marseille - PACA

Sector Strategic Paper

Tourism

May 2014

Summary

This Tourism sector strategy paper aims to develop a comprehensive and integrated strategy for the adoption of a road map regarding the Tourism sector, with a coordinated approach involving relevant actors from the research, environment, transport and internal market perspectives of the policy-making world.

EUROMED INVEST Sector Strategic Paper: Tourism Sector May 2014

Table of Content

1 Introduction ............................................................................................................. 3

1.1 Context and objectives ............................................................................................... 3

1.2 Methodology ............................................................................................................. 5

1.3 Sector definition ........................................................................................................ 5

2 State of the art of the sector in the EU ..................................................................... 7

2.1 Strategy & orientation ................................................................................................ 7

2.1.1 Tourism evolution in EU ..................................................................................................... 7

2.1.2 Tourism trends ................................................................................................................. 8

2.2 Main challenges ....................................................................................................... 13

2.2.1 Monetisation of the Tourism sector .................................................................................. 13

2.2.2 Sustainable Tourism ........................................................................................................ 14

2.3 Priority niches ......................................................................................................... 16

2.3.1 « Experience » Tourism ................................................................................................... 16

2.3.2 Cultural & Gastronomy Tourism ....................................................................................... 16

2.3.3 Cruise Tourism ................................................................................................................ 17

2.4 Main programmes to support the Tourism sector among EU and MED countries............ 18

2.5 Key events and players in the Tourism sector ............................................................ 22

2.5.1 Clusters and business communities .................................................................................. 22

2.5.2 Exhibition fairs and events ............................................................................................... 22

3 State of the art of the sector in the Mediterranean ................................................ 23

3.1 Strategy & orientation .............................................................................................. 23

3.2 Main challenges ....................................................................................................... 24

3.2.1 Mediterranean coastal Tourism ........................................................................................ 24

3.2.2 Restoring confidence ....................................................................................................... 26

3.3 Priority niches ......................................................................................................... 27

3.4 Specific advantages of the Mediterranean region in the sector: in what way is the MED

region attractive for EU companies in this sector? ................................................................ 29

3.5 Main programmes to support the Tourism sector among EU and MED countries............ 31

3.6 Exhibition fairs and events ....................................................................................... 32

4 Focus on foreign direct investments in the sector ................................................. 33

4.1 Foreign Direct Investment (FDI) volumes .................................................................. 33

4.2 Origin and destinations ............................................................................................ 34

4.3 Major 15 European FDI projects in the sector (2009-2013) ......................................... 35

5 Conclusion & Recommendations ............................................................................ 37

6 Bibliography ........................................................................................................... 39

7 Annexes ................................................................................................................. 41


1 Introduction

1.1 Context and objectives

The overall objective of the Euromed Invest project is to boost private investments and business within the Euromed area to contribute to an inclusive economic development of the region. In this sense, Tourism has been identified as a strategic sector for the development of the Euro-Mediterranean region due to the key role it plays in a country general economy, in some cases contributing significantly to local development and representing a main source of income for residents. The region represents the World’s leading tourist destination in terms of international and domestic Tourism. Tourism is a major pillar of Euro Mediterranean countries, so the sector is a source of growth and contributes to the competitiveness of the region. On both shores of the Mediterranean Sea, the sector generates wealth, and for some Mediterranean countries it is one of the strategic lines to follow and develop. It is also important to point out the positive impacts that the Tourism has on the economy, boosting product diversification and opening new markets, building long-term development and strategies, and, last but not the least, increasing regional cooperation and the knowledge transfer. It also promotes infrastructural development, while also benefitting social and environmental progress. Both shores of the Mediterranean Sea are extremely linked and depend on each other ever more now because of the economic crisis and the Arab revolutions. Tourism is one of the key sectors, common in both shores, with significant perspectives and challenges regarding the political changes, economy, competition, changing consumer and for creating new business models, preserving heritage and sustainability. While the European market is more mature, it is evident that the perspectives for growth of the sector in the Mediterranean partner countries (MPC) are thus much higher than the European market which has a relatively diversified offer. The World Tourism Organization estimates that in 2030, 1.800 million tourists will travel internationally, including 744 million to EU destinations, 46 million to North Africa and 149 million to the Middle East. In addition, it is estimated an annual percentage growth of international Tourism in the period 2010-2030 of a 2.3% for Europe, 4.6% for North Africa and 4.6% for Middle East. This growth of the sector in MPC countries, which shows the high potential that the area has, should be framed in the context of previous experiences tried and tested on the northern shores, with varying degrees of success, learning from both best and poor practices1 (see figure 1).

1 UNWTO Publications: Faits saillants OMT du Tourisme. Édition 2013.


Figure 1: Actual trend and forecast of the Tourism sector in UE 1950-2030.

(Source: European Alliance for Responsible &Tourism and Hospitality. UNWTO Tourism Highlights 2013 Edition).

This Tourism sector strategy paper aims to develop a comprehensive and integrated strategy for the adoption of a road map, with a coordinated approach involving relevant actors from the research, environment, transport and internal market perspectives of the policy-making world. The main goals of the strategic paper are:

Define the Euro- Mediterranean region in terms of the Tourism sector.

Analyse the Tourism sector trends and the strategies which should be followed to face the

coming challenges in the Euro-Mediterranean area.

Determine the main programmes and the most relevant EU programmes and policies

which support the Tourism sector in the Euro-Mediterranean region.

Identify the main niches for the Euro-Mediterranean region and the main stakeholders and

events of the Tourism scenario.

The paper ends with a conclusion section which will compile some future strategic

recommendations that have been reached after the analysis conducted in the previous

paragraphs.


1.2 Methodology

The purpose of the paper is to focus and determine the strategic lines of action within the Tourism sector, which will later form the framework for the selection process for projects to be financed under the Euromed Invest initiative. In this sense, it has been followed a working methodology which consists of:

Compiling the main existing literature about the Euro- Mediterranean Tourism sector and

provide the crucial and more relevant information.

Seeking and classifying the most relevant stakeholders involved in the Euro-Mediterranean

Tourism sector.

Compiling the major EU projects and programs about the Euro-Mediterranean Tourism

sector.

Researching influential EU policies and strategies related to the Euro-Mediterranean

Tourism sector.

1.3 Sector definition

According to the UNTWO2, “Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes”. UNTWO generalizes six basic forms of Tourism:

Outbound Tourism: Comprises the activities of a resident visitor outside the reference country, as a part of an internal or outbound Tourism trip.

Internal Tourism: Compiles internal Tourism and inbound Tourism, which means, activities done by residents and non-residents visitors of the reference country, as a part of their internal or international Tourism trips.

International Tourism: Includes inbound and outbound Tourism, ie the activities of resident

visitors outside the country of reference, as part of their touristic internal or outbound trips, and the activities of non-resident visitors in the reference country, as part of their inbound Tourist trips.

Domestic Tourism: Comprises the activities of a resident visitor in the reference country, as part of an internal or an outbound Tourism trip.

National Tourism: Comprises internal and outbound Tourism, involving the activities of resident visitors within and outside the country of reference, as part of their domestic or outbound Tourism trips.

2 World Tourism Organization. (2014, 20 th May). http://media.unwto.org/content/understanding-Tourism-basic-glossary

http://media.unwto.org/content/understanding-tourism-basic-glossary


Inbound Tourism: Comprising the activities of a non-resident visitor in the country of reference, as part of an outbound Tourism trip.

Tourism, directly and indirectly generates an increase of the economic activity in the visited destinations (and beyond them), mainly because of the demand of goods and services to be produced and provided. In the economic analysis of tourism, one must distinguish between the 'economic contribution' of tourism which refers to the tourism direct effect, and the 'economic impact' of tourism, which is a wider concept which compiles direct, indirect and induced tourism effects and must be estimated by applying models.


2 State of the art of the sector in the EU

2.1 Strategy & orientation

The Tourism sector is a vital source of employment and income for the European Union, directly and indirectly responsible for 10% of the entire EU GDP3. The direct interaction of Tourism activities with practically all sectors of society (commerce, accommodation, leisure, agriculture, transport, environment etc.) is a key factor that shapes and defines the transversal nature of Tourism unlike any other sector, making it important to take a holistic approach to Tourism, rather than treating it in isolation. Setting up a transversal approach is also essential to formulate and implement a sustainable Tourism.

2.1.1 Tourism evolution in EU

International tourist arrivals in Europe rose by 3% in 2012 on top of a strong 2011 (+6%), a remarkable result in view of the lingering economic difficulties. Accounting for 52% of all international arrivals worldwide, Europe reached 534 million tourist arrivals in 2012, 18 million more than in 2011.Growth was led by destinations in Central and Eastern Europe which saw 7% more international arrivals in 2012. Thus, there is a clear trend growth through 2012 and this trend is expected to continue in the coming years (see Figure 2)4.

Figure 2: Europe Inbound Tourism due to International arrivals. (Source: UNTWO: World Tourism Barometer. Volume 12. January 2014)

3 Enterprise and Industry. EU policy background. (2014, 20th May).

http://ec.europa.eu/enterprise/sectors/Tourism/background/index_en.htm

4 UNWTO Publications: European Alliance for Responsible &Tourism and Hospitality. Édition 2013.

http://ec.europa.eu/enterprise/sectors/tourism/background/index_en.htm


2.1.2 Tourism trends

The Tourism flows and trends have always adapted to the economic and social contexts of the time in which they occur. During the 80's, a New Age of Tourism appeared due to the new developments carried out in several fields (especially in regard to the field of new technologies) and to the importance that information technologies acquired.

This new era of Tourism is characterized by offering unique and very competitive experiences which focus on quality and efficiency. The supply has to satisfy the needs of customers, whose demand is individual and often extremely specific. The tendency of stronger personalization is growing - holiday organization trends to be more and more an individually selected and cherry-picked combinations

Tourists are clearer on their needs, because now, they have previous experiences as a reference, and wish to have new and exciting ones. In this sense, tourists are very aware of what they want: quality at the best prize. In this New Age of Tourism, price competition must give way to competition in product differentiation (especially in mature destinations). Market research and business positioning and strategy are key elements for companies to stay in this new paradigm. The tourist demand can be then based on four key ideas which are: sophistication, specialization, segmentation and satisfaction.

ICT’s have impacted on the ways consumers (especially middle aged and young consumers) plan and purchase their holidays. It has also affected how Tourism providers design, shape, promote and sell their products and services. The traditional travel agency has come under pressure from online intermediates or online travel agencies (OTAs). Since the emergence of the Internet, travel information, searches and booking has been one of the top 5 most popular on-line tasks. In the case of Spain for example, 22,7% of the market share is now held by OTAs, while a further 36% use both traditional and online travel agencies, depending on the needs of the customer5. Indeed these customers value greatly the solutions provided by both, adapting to the particular circumstances of the planned trip6. There’s a rise of a hyper-informed tourist because the use of specialized touristic websites (e.g lonelyplanet.com or routard.com) and mobile applications (e.g. TripIt, GateGuru, iMedJet, Hipmunk, Kayak, Picksie …etc). The tourist can often learn about what is available to do in his destination, its quality and price. They know where the best bars are, the pop-up exhibitions and the location of street performers. They are linked into people in their destinations that share the same interests and passions and they even know which residents may accommodate them (Air BnB or Couch Surfing). These travellers are often coming from markets far afield, and have planned itineraries through multiple countries. We could site in particular the growing Chinese market, which places great value on the Schengan Area Visa when visiting Europe, often taking advantage of the opportunity to visit various countries7. Indeed this is particularly the case for people making the trip to Europe for the first-time, whilst those who have been on more than one occasion tend to spend more time in one location8.

5 Primer estudio estratégico de las agencias de viaje españolas, Amadeus España y Asociación Catalana de

Agencias de Viajes, 2012

6 Ibid

7 The Chinese Outbound Travel Market – Understanding Chinese Outbound Tourism, 2012 Update, World Tourism Organisation

8 Ibid


This market share does not rely as heavily on traditional Tourism operators, but instead make use of new commercialisation channels, such as online intermediaries, e.g. edreams, Trip Advisor, TriVaGo. Interestingly, users of these sites are much more demanding and willing to compare numerous offers, creating more competition among online sites. While customers will compare on average 2 traditional operators before contracting their preferred option, online customers compare on average 5 OTAs before completing their transaction9.

In conjunction with ever evolving ICT tools, as the market share grows for this individualised Tourism, we are seeing a move to new online intermediaries in the Tourism sector, with business models distinct from traditional avenues of previous decades.

Thanks to the aforementioned ICT boom, new accommodation models have emerged during the last few years. Two representative activities that represent this segment are: the “couch-surfing”( often free form of lodging, often free, where one stays on acquaintance's couches, previously registered in the web page) or the airbnb (locals rent their own space and advertise it directly to an online community).

The peer to peer Tourism has also affected the transportation field. Examples such as BlaBlaCar or Co-voitureage can be mentioned, in which users contact directly with others travelling to the same destinations. Each user pays the driver an agreed sum of money in order to amortize the costs of the travel, rendering the journey less expensive for all.

In many the above mentioned practices are not yet legislated and are in a legal vacuum. Some of them are encountering opposition from the affected sectors (as the hotel sector, the rental of apartments sector or the transport sector) calling for a limitation of their duties throughout specific legislation.

City breaks

Due to some crucial factors such as economic short direct scale flights and last minute offers, Europeans short holidays or city breaks have increased in market share in recent years. City Tourism is the most important growth area for the most important growth industry in Europe as people’s perception of cities has changed from being an entry or exit point to a country, to a desired destination in its own right. In Europe, the proportion of the population travelling at least once a year has plateaued, while the total number of trips taken per market continues to grow.

This trend towards city breaks is the result of a number of underlying factors. At the global level, there has been a mass relocation of people from rural to urban areas. We are now at the point where half the world’s population now lives in towns and cities and this number is expected to grow by 61% to almost five billion by 203010. The more people live in cities, the more they associate with cities and the more they want to visit other cities. Furthermore, due to the ongoing economic crisis which began in 2008, EU tourists continued travelling but have adapted their behaviour to the current economic and social circumstances by selecting nearer locations, reducing length of stay and expenditures on-site. The beneficiaries of this trend are the cities like Barcelona,

9 Primer estudio estratégico de las agencias de viaje españolas, Amadeus España y Asociación Catalana de Agencias de Viajes, 2012

10 ETOA (European Tour Operator Association) Publications: Cities, Tourists and the Future of Europe’s Tourism. Travel and Tour World Post. Edition April 2014


Amsterdam, Paris, London or Rome11.Lisbon has been awarded Best City Break Destination in Europe for 2013 by the World Travel Awards (WTA).

A key factor crucial to the choice of destinations for city breaks is the availability of direct flights to the destination. In this sense, many European cities are making great efforts to get direct flights to their airports in order to position themselves within the most chosen destinations. Moreover, these cities are employing further strategies to enter into this market, such as expanding its cultural offer (diversity of museums, concerts…etc) or even creating its own commercial brand (as an example it can be cited the case of Barcelona’s brand, which has an international power associated to success, innovation, talent and creativity12).

In this regard, the emergence of low-cost airlines has revolutionized the flights sector (between July 2010 and June 2011, 183 million passengers in Europe used the services of low-cost airlines) A low cost airline (or no frill or low fare) is an airline which offers flights at very competitive prices eliminating, much of the services for passengers (flight meals, pre-assigned seats, etc...). In Europe, "low cost airlines" or "low cost carriers" entered the market thanks to the Irish company Ryanair and Easyjet. However, today the term low cost can also be used for cheap flights operated by airlines which are generally more expensive.

Experiential Tourism

Experiential tourism is a trend that includes those segments (such as rural tourism, nature ...) that involve a maximization of the emotions and experiences of tourists, looking for special and unique moments which involve knowledge of culture, lifestyle, customs and traditions and the authenticity of the destination and the people.It is a tourist typology closely related to sustainable and responsible tourism with the environment. This type of tourism tends to include what the OWT call the three “E” Tourism: Entertainment, Excitement and Education

The boom of this type of Tourism has been boosted thanks to the proliferation of what is called ' gift boxes'. This is a box with an interchangeable gift coupon for an experience (e.g. Plan B! Wonderbox, Life is Beautiful or Smartbox ) which has succeed because it’s a kind of product which allows the costumer to find personal and unique experience at an affordable prize.

Leisure Events Tourism

As discussed in previous sections, Tourism trends today differ from traditional trips in which tourists spent most of their time visiting the most typical places of their chosen destination. Tourists today look for experiences and events that take them into know deeply the customs and local celebrations of the place where they have travelled to. Therefore, events such as “Feria de Abril” or “San Fermines” in Spain, Oktoberfest in Germany and the Venice Carnival in Italy have, year after year, increased their number of visitors.

11 Europapress. (2014). http://www.europapress.es/turismo/nacional

12 Fira Barcelona News. (December 2012). http://fira-news.com/ca/marca-barcelona-2/

http://www.europapress.es/turismo/nacional

http://fira-news.com/ca/marca-barcelona-2/


Furthermore, cultural events related to the tourist hobbies and preferences also determine the final destination that the tourist chooses for his holidays. In this sense, it’s quite usual that European tourist spends his holidays in places where events such as the ”Berlinale Internationale Filmfestspiele”, the “Milan Fashion Week” or the “International Cannes Cinema Festival in France” happen.

Another European tourist trend is aimed at music lovers. In recent years the events related to music festivals have increased (e.g, Roack am Ring in Germany,Glastonbury Festival in UK, Graspop Metal festival in Belgium, Roskilde Festival in Denmark, Primavera Sound in Spain…etc ). Consequently, music lovers have travelled massively to these events.

MICE Tourism

Referred to as MICE, Meeting, Incentives, Conferences and Exhibitions is a burgeoning sector which is ever more prioritised by some of Europe’s largest cities in order to redistribute peak Tourism across the seasons.

It is a form of business Tourism linked to the achievement of business and professional activities carried out at business meetings. The typical MICE tourist usually travels alone and with little time available during working hours. They tend to look for leisure activities and rest at night and on weekends. After business meetings, investors tend to be interested to know about the culture and traditions of the country in which they are or will be operating. This can be positively correlated with offering packages that, not only include accommodation in hotels, but also sports programmes .While on the one hand, MICE Tourism creates regular visitors who are often likely to return to the destination in various occasions, it can also be an opportunity to give the traveller a taste of the city, increasing the likelihood that they may return with family on another occasion on a leisure break. The typical business visitor usually spends more than a personal traveller, so the challenge lies in determining a competitive offer and while satisfying the visitor in terms of down-time and care.

There is also the Tourism Business group which has different variants; such as conferences, conventions, fairs, exhibitions and incentive trips and the conventions Tourism, which brings together different professionals of the same sector in order to create commercial relationships, to display and learn about new products, to treat strategic planning for the new campaign, etc.

In order to see the huge touristic mass that this king of tourism generates, and consequently reported profits, as an example in the below table 1, some of the most important events in Europe and the number of visitors received during 2013 are shown.


Event Country Visitors number in 2013

FITUR: International Tourism Fair Spain 207.23913

World Mobile Congress Spain 72.00014

Foire de Bordeaux France 300.00015

Milan expo Italy 200.000€16

Fair For International

Transport And Logistics Management Germany 52.00017

Table 1: Examples of European events and its number of visitors in 2013.

Cruise Tourism

Cruise Tourism is a Tourism trend which has increased during the last years. Cruises allow the possibility to visit different cities and countries in a short period, while thematic cruises may define specific itineraries covering niche cultural or experience related packages.

Figure 3 shows a breakdown of flows of the cruise sector, and the number of cruise passengers purchasing these deals in Europe. The port of Barcelona is the 1st in Europe (4th worldwide). These cruises brought 2,6 million passengers to Barcelona, recording an annual growth of 8% in 2013. In the first trimester of 2014, the passengers’ movements increased 14, 7%. The economic impact of Tourism on the city is calculated to be over 300 million euros in 201318. Civitavecchia is ranked second, being the only other port visited in 2013 by more than 2, 5 million cruise passengers and Venice stands as the third major in terms of total passenger movements. The number of passengers increased a 2% in 201319.

13 www.ifema.es 14 http://www.europapress.es/portaltic/sector/noticia-mobile-world-congress-2013-.html

15 http://www.gazette-salons.fr

16 http://www.madeexpo.it

17 http://www.transportlogistic.de/en/Home

18 Pollis,T.,Arapi,K., Papachistou,A. (2014).A MedCruise Report: Cruise Activities in Medcruise Ports: Statistics 2013.

19 Ibid

http://www.ifema.es/

http://www.europapress.es/portaltic/sector/noticia-mobile-world-congress-2013-.html

http://www.gazette-salons.fr/

http://www.madeexpo.it/

http://www.transportlogistic.de/en/Home


Figure 3: Major Total Cruise Passengers 2013

(Source: Cruise Activities in Med Cruise Ports. Statistics 2013). The above mentioned data, show the importance of the cruise sector in Europe. This is certainly an area of interest for the entire Mediterranean region, as the development of comprehensive itineraries which can improve linkages between EU member states and MPCs.

2.2 Main challenges

Tourism is an important means of promoting Europe's image in the world. However, it must do a great effort to adapt to the new economic and social paradigm which defines it. In this sense, the sector faces new challenges which will be defined in the following sections.

2.2.1 Monetisation of the Tourism sector

One of the key challenges of the EU Tourism sector lays on monetising it more efficiently and investing in a kind of Tourism with a greater added value. This means that (as mentioned in the previous section 2.1) the Tourism model is changing from a quantity vacations model (free days without leisure activities) to a quality vacations model (shorter vacations with a huge and more specialized offer of leisure). Consequently, holidays are shorter but with a higher added value with respect to the economy, culture and environment. In order to achieve this new Tourism model, several actions throughout the sector should have to be carried out in order to model it. Among others, some of these actions are:

Increasing daily expenditure per tourist20.

Increasing total income from Tourism.

Increasing income outside high season.

Increasing the average length of stay per tourist.

Increasing the tourist repeat rate.

Increasing the tourist satisfaction rate and improving territorial balance in GDP from Tourism.

20 See Annex 1 for evolution of the number of nights spent at their destination, from 2002 to 2012


2.2.2 Sustainable Tourism

The competitiveness of the European Tourism industry is closely linked to its sustainability, as the quality of tourist destinations is strongly influenced by their natural and cultural environment and their integration into the local community. Long term sustainability requires a balance between sustainability in economic, socio-cultural and environmental terms and will lead to the development of innovative, quality Tourism products and services and make European destinations even more attractive. During the Earth Council of 1995, sustainable Tourism was defined as it follows: "Sustainable Tourism development covers the needs of present tourists and of host regions while protecting and strengthening the opportunities for the future. It is expected that the management of all resources in a way that economic, social and aesthetic needs can be covered without losing cultural integrity, essential ecological processes, biological diversity and the support system of life”. The major challenges for sustainable Tourism include:

Preserving natural and cultural resources.

Limiting negative impacts at tourist destinations, including use of natural resources and waste production.

Promoting the wellbeing of the local community.

Reducing the seasonality of demand.

Limiting the environmental impact of Tourism related transport.

Making Tourism accessible to all.

Improving the quality of Tourism jobs.

Ensuring the safety of tourists and local communities.

Several precise and strategic actions have to be carried out in order to address the above mentioned challenges. Consequently, the CE has developed a Sustainable & Competitive European Tourism Agenda which compiles the main principles to achieve these goals. One of the main principles relies on taking a holistic and integrated approach of the sector when planning new strategies and developing key policies (trying to avoid the lack of continuity of Tourism plans and investments in various regions, normally due to political changes). In this tourism Agenda it is also compiled a key postulate which states that all the stakeholders involved in the touristic sector, should be taken into account, taking into special consideration the coordination between private and public actors, which need to work together and join forces. Best practices related to sustainability and competitiveness should also need to be shared in order to modify the current situation. For this reason the EU, in addition to mobilising financial instruments, should also support the organisation of conferences and studies and the cooperation between universities, research institutes, public and private observatories, Tourism education and transnational training. Environmental impacts of Tourism The European Environment Agency has indicated that the main sectors impacting on Europe's environment are transport, energy, industry and agriculture. Tourism is therefore, not considered as one of the major activities impacting negatively on the environment. However, this differs among the area that is being considerate (particularly the Mediterranean coastal areas, which have

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0621:EN:HTML:NOT

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0621:EN:HTML:NOT


been dominated by massive Tourism development during the last decades). Nonetheless, some level of impact attributed to the transport sector may well be as a result of Tourism activity21.

Air transport is expected to show the largest increase at 190% especially for flows originating from the new Member States and for long distance trips. Rail demand comes second and is expected to grow significantly between countries with recent high-speed link realisations. Volume by road is predicted to increase in some areas but to decrease in others22. Climate change is by far the most significant environmental transport impact and is followed by air quality. Air transport has a share of 50%-78% of all impacts and was responsible for 80% of greenhouse gas emissions in the Tourism transport sector in 2000. Road transport causes the greatest impacts on air quality while rail, coach and ferry represent almost 20% of all trips but have a very limited environmental impact due to relatively low emissions on a per passenger basis23. Environmental policies in Tourism should therefore consider measures reducing both air transport and intercontinental travel as these sectors have the strongest growth and are associated with the strongest environmental impacts.

21 Ellul, A. Tourism and the environment in European countries. No. 116.Council of Europe Publishing

22 Agenda 21 for the Travel & Tourism Industry: Towards Environmentally Sustainable Development

23 Ibid


2.3 Priority niches

While the typical image of Tourism is often associated with tourists invading monuments, it is necessary to understand that the Tourism comprehends much more than that. Tourism is a much more open concept and several activities are now integrated in the tourist sector and considered integral to strategic tourist sector plans. Regarding the trends that the tourism sector is following and that have been previously mentioned in section 2.1.2, three strategic activities have been highlighted and will be explained in the following sections, as they have been considered as key strategic lines for a further development of the sector.

2.3.1 « Experience » Tourism

As mentioned in section 2.1.2, Experiential tourism is a trend that includes those segments (such as rural tourism, nature ...) that involve maximizing the emotions and experiences of tourists, looking for special and unique moments which involves knowledge of culture, lifestyle, customs and traditions and the authenticity of the destination and the people.

Taking into account this definition, Europe must offer sustainable and high-quality Tourism, playing on its comparative advantages, in particular the diversity of its countryside and extraordinary cultural wealth.

Tourists look for true experiences related to their hobbies (sports, nature…) or other activities which are of their interest (wellbeing or a city break). Tourism policies will need to adapt to these trends and develop a quality offer promoting local cultures and traditions and paying attention to sustainable aspects: preservation of the heritage, of the landscape, of the local culture.

2.3.2 Cultural & Gastronomy Tourism

Europe is indeed a key cultural Tourism destination, with a large number of major sites and a strong flow of international and domestic visitors. It is estimated that cultural Tourism accounts for around 40% of all European Tourism24.

"European Cultural Routes" crossing several regions or countries are a good starting point to promote the variety and complexity of European cultural Tourism offer. Cultural routes have a strong Tourism potential, still mostly unexplored. They are both transnational and representative of European common heritage and values. They are also regarded as being a sustainable, ethical and social model, because they build on local knowledge, skills and heritage assets, they often promote lesser known European destinations.

Active cooperation with the Council of Europe, the European Travel Commission, UN World Tourism Organisation and other international partners is contributing to further develop European Thematic Tourism Routes. At the time being, there are 26 trans-national itineraries connecting several cities, villages, rural communities across the continent and representing Europe as a single Tourism destination. Furthermore, the European Institute of Cultural Routes (a non-profit association based in Luxembourg) aims to help the Council of Europe, as a technical body, in the

24 Industry and Enterprise-Culture Tourism: http://ec.europa.eu/enterprise/sectors/Tourism/cultural-routes/index_en.htm

http://www.coe.int/t/dg4/cultureheritage/culture/Routes/Default_en.asp

http://www.etc-corporate.org/

http://unwto.org/en

http://unwto.org/en

http://www.coe.int/t/dg4/cultureheritage/culture/routes/default_en.asp

http://ec.europa.eu/enterprise/sectors/tourism/cultural-routes/index_en.htm



establishment of European Cultural Routes. As some examples, some of the most popular European routes will be listed as follows:

Cultural routes ( The European Mozart Ways between Milano and Salzburg; European; Routes of the Jewish Heritage; The Vikings and Normans routes, The Legacy of Al-Andalus);

Religious (Pilgrim Routes like the Way of St. James to Santiago de Compostela or the Via Francigena between Rome and Canterbury);

Travelling through Europe, one can also find numerous gastronomic fairs, festivals and trails to taste the unique local products and dishes (e.g. the asparagus day of Croatia, the Beer Festival in Denmark…etc). These products promote lots of destinations and consequently lots of travels to these particular areas/regions with unique culinary traditions.

The cultural routes, are also routes of taste of the flavours and products of determined European areas that are maturing in the Tourism area, producing opportunities and challenges for the gastronomical cultural Tourism professionals. Some examples can be mentioned, as the Route of Wine in Oporto, the Nahe Wine Route or the Lower Saxony Milk Route.

This living heritage contributes to the economic development of certain businesses, notably in the areas of industry linked to gastronomy. Between the producers and the consumers, a whole range of professions and expertise comes together to preserve and create this heritage. The values upheld by the cultural routes are also to be observed in this process. Sustainable development, respect for the products and for the processes of production, Tourism, land management and the development of expertise are all areas which have been developed by the different routes in their interaction with gastronomy.

Gastronomical Tourism is arguably a development from traditional passive Tourism forms towards more active involvement of the tourist in the cultural life of the places they are visiting. Gastronomical Tourism is also about actively learning skills that tourists will take home with them. Keeping track of these developments will be one of the major priorities for policy-makers, marketers and Tourism academics in the future.

2.3.3 Cruise Tourism

The cruise industry in Europe is a dynamic source of economic activity providing economic benefits to virtually all industries and countries throughout Europe. Cruise Tourism in Europe impacts all of the major aspects of the industry, including: ports of embarkation, ports-of–call, shipbuilding, ship maintenance, provisioning, sales and marketing, staffing of cruise ships and administrative facilities25.

Europe is also the centre of and world leader in cruise ship construction and refurbishment. After three successive years of decline, spending for new buildings and maintenance at European shipyards stabilized with a slight expansion of 0.3% to €3.85 billion in 2012.The spending by the cruise lines and their passengers and crew generated an estimated 326,9047 jobs in Europe through the direct, indirect and induced economic impacts. This is a 3.6% increase from201126.

25 CLIA : Cruise Lines International Association. The cruise industry : Contribution of Cruise Tourism to the Economies of Europe.2013 Edition.

26 Ibid

http://en.wikipedia.org/wiki/Wolfgang_Amadeus_Mozart

http://en.wikipedia.org/wiki/Milano

http://en.wikipedia.org/wiki/Salzburg

http://en.wikipedia.org/wiki/Way_of_St._James

http://en.wikipedia.org/wiki/Via_Francigena

http://en.wikipedia.org/wiki/Via_Francigena

http://en.wikipedia.org/wiki/Rome

http://en.wikipedia.org/wiki/Canterbury


The future of cruises in Europe seems to be brimming with potential. Over the period from 2013 to 2016, 22 cruise vessels have been scheduled for delivery for worldwide trading with capacity for 66,917 passengers of which 20 will be constructed in Europe and two in Japan. Out of the total, 12 ships with 27,257 berths (40.6% of capacity) will primarily serve the European source market, representing an investment of 5 billion €. Many of the others will visit European destinations. This new investment underlines the cruise industry’s continuing commitment to the future of its business both in Europe and elsewhere in the world27.

2.4 Main programmes to support the Tourism sector among EU and MED

countries

Program Purpose Specificity

CALYPSO

The Calypso initiative has 3 main objectives.

1- Give an opportunity to underprivileged European citizens to travel to Europe's holiday spots.

2- Create new jobs and business opportunities during low season

3- Boost and support local economies during the offseason

Targeted people:

- Young people (between 18 and 30)

- Older travellers (≥ 65 years old) - Disabled people

- Low-income families

Social Tourism

EDEN ( European

Destinations of Excellence)

The EDEN project aims to promote sustainable Tourism

development models across the European Union. It is a

yearly national competition around an annual theme which the goal is the selection of a tourist “destination of

excellence” for each participating country.

Main objectives :

1- Give more visibility to emerging European destinations,

2- Creates a platform for sharing good practices across Europe

3- Promotes networking between awarded

destinations The key feature of the selected destinations is their

commitment to social, cultural and environmental sustainability.

Sustainable Tourism

European Capitals

of Culture

The European Capitals of Culture initiative is drawn to:

1- Highlight the richness and diversity of cultures in Europe;

2- Celebrate the cultural features Europeans share;

3- Increase European citizens' sense of belonging to a common cultural area;

4- Foster the contribution of culture to the development of cities.

In addition, the initiative create an excellent opportunity

Cultural Tourism

27 CLIA : Cruise Lines International Association. The cruise industry : Contribution of Cruise Tourism to the

Economies of Europe.2013 Edition.


for:

1- Regenerating cities; 2- Raising the international profile of cities;

3- Enhancing the image of cities in the eyes of their

own inhabitants; 4- Breathing new life into a city's culture;

5- Boosting Tourism.

European

Regional Development

Fund (ERDF)

The ERDF aims to strengthen economic and social

cohesion in the European Union by correcting imbalances between its regions.

The ERDF focuses its investments on several key priority areas. For the period (2014- 2020) the ‘thematic

concentration” are the following’:

1- Innovation and research; 2- The digital agenda;

3- Support for small and medium-sized enterprises (SMEs);

4- The low-carbon economy.

The ERDF resources allocated to these priorities will depend on the category of region.

In more developed regions, at least 80 % of funds must focus on at least two of these priorities;

In transition regions, this focus is for 60 % of the funds;

This is 50 % in less developed regions.

Furthermore, some ERDF resources must be channelled specifically towards low-carbon economy projects:

More developed regions: 20%;

Transition regions: 15%; and

Less developed regions: 12%

Transversal sector

COSME (2014 – 2020)

COSME is programme for the Competitiveness of

Enterprises and Small and Medium-sized Enterprises

(SMEs). COSME will support SMEs in the following area.

1- Better access to finance for Small and Medium-

sized Enterprises (SMEs) 2- Access to markets

3- Supporting entrepreneurs 4- More favourable conditions for business creation

and growth (Sectorial actions such as Tourism)

Transversal sector

(sectorial action such as

Tourism – area 4)

European Alliance for Responsible

Tourism and Hospitality

(EARTH)

Since 2008, the European Alliance for Responsible Tourism

and Hospitality (EARTH) has been the first European

Network created by experts of responsible Tourism.

One main goal: to transform and unite Europe in “One

Europe for Responsible Tourism”.

In the framework of the Tourism sector, the network

focuses on 3 main principles:

1- Sustainability,

2- Fairness

3- Solidarity

Responsible Tourism


Main activities:

1- Sharing the tools and good practices needed to develop sustainable and competitive Tourism

to both small and micro-enterprises

2- Supporting the EARTH network as a medium of conveying to its Members the core vision of the

European Agenda on responsible and competitive Tourism

3- Approving and implementing a CSR (Corporate

Social Responsibility) system

The network is composed by private organisations based in 7 European countries (Austria, Belgium, Ireland, Italy,

Germany, France, and Spain).

European Neighbourhood and

Partnership

Instrument (ENPI CBC MED)

The multilateral cross-border cooperation "Mediterranean Sea Basin Programme" is part of the European

Neighbourhood Policy (ENP) and of its financing

instrument (European Neighbourhood and Partnership Instrument - ENPI) for the 2007-2013 period.

It aims at reinforcing cooperation between the European Union (EU) and partner countries regions placed along the

shores of the Mediterranean Sea.

4 main priorities have been defined :

Priority 1: Promotion of socio-economic development and

enhancement of territories,

Priority 2: Promotion of environmental sustainability at

the Basin level,

Priority 3: Promotion of better conditions and modalities for ensuring the mobility of persons, goods and capitals

Priority 4: Promotion of cultural dialogue and local governance,

Transversal sector

As listed above, the listed programs boost the Tourism sector, supporting initiatives, creating favorable conditions, creating opportunities to boost the economy through SMEs activities. Some examples of projects supported can be found in the following table:

Project Purpose Program Priority

niche

MedDieT

Mediterranean Diet and Enhancement of

Traditional Foodstuff

The main objective is to increase

awareness of the Mediterranean

diet, as an integral part of our lifestyle and a vehicle for the

development, stability and solidarity in the Basin

ENPI CBC MED Gastronomy


SLOWMED

Slow food as a means of dialogue in

Mediterranean

Contexts

3 main objectives:

1- To encourage the Mediterranean culinary

heritage preservation and

conservation. 2- To promote the

recognition of food as a form of cultural and

artistic expression.

3- To foster nutrition education based on the

Mediterranean culinary heritage.

ENPI CBC MED Gastronomy

UMAYYAD ROUTE

Improvement of Mediterranean

territorial cohesion through setup of a

tourist-cultural

itinerary

The principal purpose is to

contribute to the improvement of territorial cohesion in order to

overcome the seasonal

misbalances in Tourism sector within the Mediterranean territory

through promotion of sustainable Tourism based on synergies

derived from the design of a

cultural itinerary focusing on the Umayyad heritage.

ENPI CBC MED Cultural route


2.5 Key events and players in the Tourism sector

2.5.1 Clusters and business communities

European communities:

European Alliance for Responsible Tourism and Hospitality: http://earth-net.eu/

European Network for Accesible Tourism: http://www.accessibleTourism.org/

DG Enterprise&Industry: http://ec.europa.eu/enterprise/index_en.htm

Clusters in Italy:

Regional Economic Promotion AgencyCentro Studi Turistici: http://www.cstfirenze.it

Clusters in Spain:

AEPT: Asociación española de profesionales del Turismo: http://www.aept.org/

Exceltur: Alianza para la Excelencia Turística de España: http://www.exceltur.org/excel01/contenido/portal/default.htm

Mesa del Turismo: http://www.mesadelturismo.com/

ICTE - Instituto Calidad Turística Española: http://www.icte.es/ESP/m/1/Inicio/Inicio

AECIT: Asociación española de expertos científicos en turismo: http://www.aecit.org/

2.5.2 Exhibition fairs and events

COUNTRY EU TOURISM TRADE FAIRS

International (ASCAME) MEDITOUR

FRANCE Salon Mondial du Tourisme <www.salonmondialduTourisme.com/fr/index.html

GERMANY ITB Berlin: www.itb-berlin.de/en)

GERMANY IMEX Frankfurt :www.imex-frankfurt.com

ITALY BIT Milan Rho, 14 - 17/02/2013

ITALY Buy Tuscany Florence, Stazione Leopolda: http://buytuscany_en.eventi.toscanapromozione.it/

ITALY BIT Milan - Borsa internazionale del turismo: http://www.bit.fieramilano.it/en

ITALY BTO Buy Tourism Online, Florence: http://www.buyTourismonline.com/?lang=en

ITALY Agri&Tour Arezzo, Arezzo Fiere e Congressi http://www.agrietour.it/#

SPAIN FITUR Madrid - International Tourism Trade Fair: www.ifema.es/fitur_01

SPAIN EIBTM Barcelona - The Global Meetings and Events Expo: www.eibtm.com

UK WTM London - World Travel Market : www.wtmlondon.com

http://www.accessibletourism.org/

http://www.cstfirenze.it/

http://www.aept.org/

http://www.exceltur.org/excel01/contenido/portal/default.htm

http://www.mesadelturismo.com/

http://www.icte.es/ESP/m/1/Inicio/Inicio

http://www.aecit.org/


3 State of the art of the sector in the Mediterranean

3.1 Strategy & orientation

The 1990s and 2000s saw a period of unparalleled growth of Tourism in the MPCs, with the region recording the highest rates in inbound Tourism worldwide, with these inbound rates also matched with a significant increase in dometic Tourism28. Strong progress was made in the years preceding the Arab Spring, with 2010 a landmark year for the region in terms of international tourist arrivals. Egypt in particular lead the charge, attracting over 14 Million visitors, followed by Morocco and Syria with 9.3 and 8.5 Million visitors respectfully for the same year, with the remaining countries generally growing the number of arrivals year on year (see Table 2 where the data are indicated in miles of visitors) .

Countries 1990 1995 2000 2005 2009 2010 2011 2012

Algeria 137 520 866 1.443 1.912 2.070 2.395 3.200

Egypt 2.411 2.871 5.506 8.608 11.914 14.051 9.497 11.200

Israel 1.063 2.215 2.672 1.916 2.321 2.803 2.820 2.900

Jordan 572 1.075 1.427 2.987 3.789 4.557 3.975 4.290

Lebanon 210 450 742 1.140 1.851 2.168 1.655 1.300

Libya 96 56 174 170 260 271 26 104

Morocco 4.024 2.602 4.420 6.077 8.341 9.288 9.342 9.450

Palestine .. .. 1055 88 391 522 446 482

Syria 562 815 3.015 5.838 6.092 8.546 5.070 2.000

Tunisia 3.204 4.120 5.244 6.975 6.904 6.902 4.782 5.950

Total 12.279 14.724 25.121 35.242 43.775 51.178 40.008 40.876

Table 2: Number of visitors of main of the Mediterranean countries from 1990-2012.

(Source: UNTWO Barometer) Indeed the beginning of the Arab Spring in 2011 brought an abrupt halt to this steady growth, slowing drastically on a regional level and contracting in the countries affected by political transitions. Two revolutionary countries, Egypt and Tunisia, registered a sharp drop in international arrivals of 33% and 31% with respect to 2010, and a fall in international Tourism revenues of 51% and 26%, respectively. Furthermore, the Middle East felt the consequences of the Egyptian revolution and the Syrian crisis, with a drop in international arrivals of 41% in Syria, 24% in Lebanon and 16% in Jordan. Israel, Algeria and Morocco were the only MPCs having continued to experience growth of international arrivals, though admittedly much slower (0.6% and 1.6%, respectively)29, displaying resiliance despite the regional regional tendancies. While 2013 marked a 6% increase on the year previous for the region as a whole30, suggesting a modest trend towards stabilisation, there is a lot of work to be done in restoring confidence – particularly among the european market who are instead opting for northern mediterranean destinations31 – that the MPCs is the safe and welcoming destination it was seem to be in the years preceding the Arab Spring. Development of Tourism in the Mediterranean countries remains quite unbalanced. In Algeria and Libya development of the Tourism sector must be seen against the backdrop of a rapidly-growing

28 Lanquart, R. (2013). Tourism in the Mediterranean: Scenarios up to 2030.

29 Ibid 30 UNTWO World Tourism Barometer 2014

31 Weigert, M. (2012) The challenges of Tourism in the Mediterranean region. Economy and Territory |

Productive Structure and Labour Market.


energy sector, while in Egypt, Jordan, Morocco and Syria, the growth of Tourism has been faster than growth in other sectors, resulting in its growing share in the economy.32 Tourist affluence to countries of the Middle East (Syria, Lebanon, Israel and Palestinian Territories) varies in alternating cycles according to the political crises striking the region, although in spite of a seemingly fractured outlook, the general trend is also moving towards a growth33.

3.2 Main challenges

Tourism in the Mediterranean region is a pillar for its economy and growth, some actions should have to be carried out in order to boost the sector and to stimulate demand and lure back tourism operators. As an example, it can be mentioned the initiative of the Jordan’s minister of tourism, which has decided to allocate 20% of entry fees to the kingdom's archaeological sites for maintenance and development.

Other successful initiatives to engage with tourists such as the adoption of mobile technology to showcase the tourism assets (such as the ‘Definitely Dubai’ mobile app, which helps locate attractions, landmarks, hotels, shops and restaurants, find deals and promotions etc.), or the use of live streaming tourism webcams with views of some of the country’s most treasured and visited locations (Jordan was the first country in the Mediterranean to use this technology) had also very good results34.

Even though the aforementioned initiatives, efforts need to be geared,towards restoring market confidence and stimulating tourism demand as quickly as possible. The sector has to overcome existing difficulties regarding the current context of the sector and face key challenges which will be treated in the following sections.

3.2.1 Mediterranean coastal Tourism

One of the challenges currently being faced by the Tourism industry in MPCs, one of the most pressing is the overwhelming focus on coastal Tourism. Despite the success of this approach in the socioeconomic development of subregions of the mediterranean (such as the Red Sea in Egypt or the Tunisian Sahel for example), this emphasis on coastal Tourism engenders a number of inherent problems, from the economical to the environmental35. The general lack of diversity of the Tourism offer, places certain stresses on national economies of the MPCs and eastern mediterranean countries, where the Tourism sector generally represents 10% of GDP36 and 12% of direct and indirect employment37. The most notable effects of this approach are the casual jobs related to the sector, dependent on demand, generally unskilled and highly susceptible to fluctuations in the market. Furthermore, this seasonal approach leads to imbalances in local economies, inhibiting optimisation of the ressources invested in infrastructure and return on investment of related developments38.

32 Aston Centre for Europe. (2012) Sustainable Tourism in the Mediterranean.

33 Weigert, M. (2012) The challenges of Tourism in the Mediterranean region. Economy and Territory | Productive Structure and Labour Market. 34 UNWTO: Snapshot report on markets performance and prospects in the MENA region –April 2013.

35 Ibid

36 Ibid





The fact that this propensity for coastal Tourism is generalised throught the region, also leads to a situation where, due to the similarity of supply between competing resorts in neighbouring countries, competition is often reflected in price, with continually decreasing prices in efforts to entice sun-seeking tourists further squeezing returns on investments.39 It is important to mention the impressive development of new Tourism products and services such as nautical, cruises, medical, religious and cultural Tourism, which should certainly give rise to a reexamination of the traditional brand identity without focusing only in the sun and beach attraction. Furthermore, the significance of cultural and religious values is becoming more apparent in this century than previously. Mediterranean countries must innovate in products and services emphasizing its’ own customs and traditions. Indeed, developing a branding strategy in this period of global economic crisis in the northern and MPCs Mediterranean will be critical in the new global geostrategic situation. Impacts of Mediterranean coastal Tourism Tourism is an activity that takes place in a space (territory) and that has consequences for the local population or resident which cannot always be framed in a positive scenario. When a huge development of Tourism happens in a specific area (like costal areas) with a rich cultural, environmental and social heritage as the one of the MPCs, if a conservation strategy of the area does not take place, the identity of the area can stagger importantly. In this sense, in addition to the economic effects related to the emphasis on seaside Tourism, we should also consider negative externalities associated. Coastal resort developments often occurs to the detriment of the local environment and impacting on existing natural and cultural heritage sites, increasing adding to pressures already generated by the lack of coherent development strategies. Some examples can be mentioned like Côte d'Azur (Cannes, France), Costa del Sol (Torremolinos, Spain) or the Red Sea Riviera. Indeed, the World Wildlife Foundation (WWF) estimates that large-scale mass Tourism is one of the main forces behind the ecological loss and destruction in the region, particularly in coastal and marine areas that still maintain high natural value and are important to safeguard biodiversity40. These impacts are particularly highlighted when it comes to impact on local ecosystems due to Tourism related urbanisation developments in sensitive zones, as well as freshwater supply and it’s seasonal use in MPCs countries increasinly affected by desertification41. The impact of Tourism on the environment is accentuated by the seasonal nature of this activity and puts strains on water resources, erosion of coastline, use of land and waste discharge. Now more than ever these issues are critical to the Mediterranean Sea. Measures to reduce the environmental impact of Tourism will necessitate the adoption of an environmental marketing strategy aimed at protecting the most vulnerable sites and to re-directing tourist taxes towards “eco-touristic” structures, such as agro-Tourism and bed and breakfast42. As such, the negative impact of Tourism development can gradually destroy the environmental resources on which Tourism depends. This does not have to be the case however, as Tourism has the potential to create beneficial effects for the environment by contributing to environmental

39 Ibid

40 WWF: Tourism threats in the Mediterranean: http://mediterranean.panda.org/threats/ 41 Ibid

42 Santonocito S.D. (2005), Sustainable Tourism and Carrying Capacity in the Mediterranean Area Focus On

Sicily.

http://mediterranean.panda.org/threats/


protection and conservation. It is a way to raise awareness of environmental values and it can serve as a tool to finance protection of natural areas and increase their economic importance.43 Mediterranean coastal Tourism has also impeded countries in taking advantage of Tourism’s territorial planning function, so the interstices between major centres of Tourism and the hinterland have remained poorly planned areas, unconnected to tourist routes and therefore powerless to attract them. Furthermore, other externatlities will have to be considered, such as the rise of prices (inflation) resulting from an increased purchasing power of tourists and the abandonment of other key activities due to the major dedication to Tourism activities. With rare exceptions, the MPCs have not implemented policies of restructuring that would allow them to enhace the Tourism sector and paliate all the aforementioned impacts . Recent political changes, however, will certainly provide the opportunity to adopt new strategies44.

3.2.2 Restoring confidence

The Arab revolutions and the continued political unrest have created certain reluctance in travelling to south eastern Mediterranean. In Yemen, continued kidnappings of foreigners, has had a very negative impact on the tourism sector, which was a major source of employment and income for many Yemenis before the crisis. In Syria, the ongoing civil war has led to the closure of many small tourist facilities and loss of jobs in the tourism sector. Political uncertainty has the potential to impact negatively on visitors’ perceptions, not only regarding personal safety but also suitability of access, availability of accommodation and the likelihood of disruption to travel plans. Swift implementation of a communications response is crucial to reassure tourists that the destination is safe, accessible, ready and able to receive visitors45. However, the enhancement of Tourism activity in these countries will depend more on tourist attitudes, so improving security and organizing public campaigns are a must46. In this regard, managing the impact of political change in the region is a key challenge of the MPCs. Labor market issues and the quality and training of human resources are of fundamental importance for this development. The provision of appropriate education and training schemes is a key area for the promotion of innovation and for the achievement of productivity improvements in the Tourism industry47. Some Mediterranean Countries such as Egypt, Tunisia and Jordan have made innovative use of social media to engage with potential travelers and to reassure them that it is safe to visit their country. We can consider the following examples48:

Egypt became the first Arab country to be the official partner at ITB Berlin held in March 2012, and employed unique promotional tactics such as live broadcasting and live tweeting from Egypt to showcase its culture and motivate visitors to return to Egypt. Its touristic




45 UNWTO: Snapshot report on markets performance and prospects in the MENA region –April 2013.

46 Ibid




campaigns have also been promoted through online social networks such as Facebook and YouTube.

Tunisia’s promotional campaign under the slogan "Rediscover Tunisia" was aimed to promote the tourist product of Tunisia and search for new markets using the latest communication technologies and social networking.

The Jordan Tourism Board has been actively using social networking sites such as Twitter, Facebook and YouTube to promote Jordan. It has also sponsored several blogger visits to Jordan in order to counter safety concerns and to showcase its diverse attractions.

3.3 Priority niches

Consumer trends are constantly evolving, but the internet has considerably changed the international Tourism industry and the way in which it interacts with consumers49. While in the past, tour operators were a pivotal part of the travel value chain, nowadays travellers can communicate directly with international providers both large and small, putting the consumer to a certain extent in charge of the supply chain50, ensuring that they find the experiences and adventures they are seeking. Conversely it is also a wonderful opportunity for niche operators who can communicate directly to their target market. Indeed, research suggests that the most reliable and accessed means of communication today are: Internet sites (69.8%), events (69.7%), and recommendations from friends’ or family (66.1%)51. Some of the most evident displays of this change in dynamics are holidays for singles, retired people and money-rich/time-poor short-break travellers who are developing into major market segments in addition to the traditional annual family holiday. Other emerging niches include adventure, active and higher involvement experiences, indulgent and luxury travel, a search for unique experiences and demand for authenticity. In this sense, customers are increasingly experimental, willing to try new products, foods and attractions and are unwilling to give a second chance to destinations providing poor products or services.52New potential markets and segments, are being executed in Mediterranean countries which were overlooked in the past and need to be boosted. In order to have a clear picture of the situation, the most relevant segments have been compiled in table 3.

Culture Beauty

and wellness

Luxury Eco

Tourism MICE Cruise Hollidays Sport/Golf Nature Religious Medical

Morocco ++ ++ + ++ ++

Tunisia ++ ++ + ++ + + ++

Algeria ++ ++ + +

Egypt + ++ + + ++ + +

49 Ibid

50 Ibid

51 Towards a Mediterranean Tourism Brand. Invest in Med. Study nº 19. September 2010.



Israel + + + + +

Jordan + ++ + ++ + + + + +

Lebanon + + + + +

Libya + +

Palestine + + + + +

Syria +

TOTAL 13 12 3 6 7 4 2 6 3 5 2

Table 3: Most relevant segments in Mediterranean countries.

+ Segments highlighted by OMT

+ Segments highlighted the Ministries of each country

Cultural Mediterranean Routes

In particular, a key area for development is the increasingly marketed concept of cultural routes, which add great value to the diversification of the Mediterranean touristic offer, which can be seen to correspond, to desire, to explore new territories through ancient cultures.

Indeed this is an area which is receiving extensive promotion from international actors, notably the European Union and the Union for the Mediterranean, in particular through the EuroMed Heritage instrument, which is promoting itineraries being developed in recent years for The Al-Andalus Route, The Route of the Olive Tree, The Phoenician Route or Odyssea. Of particular interest in linking these heritage routes to the Tourism offer, is the potential to generate flows of Tourism from south to south as well as north to south and vice versa, while at the same time exploiting the rich cultural heritage that exists all across the region.

Furthermore, promotion of cultural routes can go some way to redressing imbalances related to seasonal, coastal Tourism and intensify and diversify the Tourism offer of the region in sustainable and social manner.

Eco-Mediterranean Tourism

Another niche Tourism offers which is of great potential is that of EcoTourism, which has seen spending increase at roughly the industry rate of growth over the last number of years53.

The Mediterranean region presents an extremely rich vegetation and wildlife that makes it one of the top biodiversity hotspots in the world. Each area is composed of varied topography and characterized by its own habitats and wildlife, marked by extraordinary biodivesity.

Tourism is at the same time a growing source of income and an increasing driving force for combating negative impacts in the Mediterranean coastal regions. Protected Areas ( such as the Kneiss islands in Tunisia, the Port Cros islands in France or the Gata Cape) are the best example of this: they look at the tourists as additional “financial resources” for weak institutional budgets, but at the same time fear the impact of large groups of tourists, concentrated in peak season.

53 Facility For Euro-Mediterranean Investment And Partnership (Femip). Technical

asistanceProposal.Feasibility Study on the Creation of a Mediterranean Brand.February 2011.


Eco tourists come from around the world to utilize the exceptionally biodiversity waterways of the Mediterranean. As a result of this biodiversity, fishing and diving are very popular pastimes on both the north and south sides of the sea. Tourists will find a thriving sea-faring industry and many opportunities to enjoy the fruits of what the sea has to offer.

Environmental sustainability creates both challenges and new business opportunities for companies in virtually all sectors. The Tourism industry faces such opportunities and challenges in a more immediate way than many other industries due to its often direct dependence on the natural environment as an attraction. However, many companies still tackle the issue in a defensive or passive way (e.g. introducing environmental reporting, or isolated attempts to reduce CO2 emissions), instead of looking at it as a future business opportunity around which the company can innovate and build competitive advantage.54

3.4 Specific advantages of the Mediterranean region in the sector: in what way

is the MED region attractive for EU companies in this sector?

Current trends would seem to suggest continued growth in the coming years for the Mediterranean Tourism sector. However, political turmoil in the region is causing a severe cleavage between flourishing countries and those suffering from considerable political and/or social unrest. Regardless of political context however, longer term visions need to take into account that this sector is towards a new “Tourism model”, and new market possibilities are being opened. In this sense, it is clear that strategic and considered investments in this area could yield a high probability for success.The Mediterranean region will always be attractive for companies in the Tourism Sector because of its incredible potential; its physical and climatic attributes are unrivalled, while the region is endowed with abundant and important cultural heritage attractions. A potential which is still far from fully exploited and which is now in a stand by mode in some regions.

A big part of the region's potential is the proximity to the EU market, which is very attractive for European companies. Furthermore, Northern mediterranean operators are experienced carriers of know-how in tourist destination development, and there is a huge potential for the transfer of business models developed on the northern shores. Also, since the majority of Mediterranean tourists come from the European zone, the development and support of Tourism by EU companies is much easier since the end user is quite well identified and understood. Ample experience between big and small tourist enterprises and the tourists themselves, have already rounded many corners in the past decades and paved way for a broad and mutually beneficial relation between the two parts, giving EU companies a solid basis in future improvement of the sector.

In order to capitalise on the aforementioned specific advantages, there should be further efforts to reduce restrictions on movement in the Euro-Mediterranean region. An important barrier detected regarding the Tourism sector in the Mediterranean countries relies on the visas requested in some countries. It urgently needs streamlining and the harmonisation of policy regarding this issue. Several issues should have to be tackled regarding the visa, which are summarized as follows:

Revision of the visa waiver program.

Enforcement of the 15-days time limit for decisions on visa applications.

54 OECD: http://www.oecd.org/

http://www.oecd.org/


Reducing / harmonizing the common list of supporting documents for Schengen visa applications.

Facilitating visa applications from commercial intermediaries.

Facilitating multi-entry Schengen visas procedures.

The hassle of visa bureaucracy is a major obstacle that has to be overcome by the potential client due to lack of information, time cost and direct payments and with a risk of cancellation of the entire voyage. A paradoxical situation thus arises where visa clearance is necessary to confirm travel plans while travel plans are necessary to apply for a visa. While enabling large charter companies, this significantly reduces the amount of clients with individual planning initiatives. Some initiatives regarding a facility or elimination of travelling visas have been carried out (like the Egypt initiative that in a move to bolster the country’s tourism industry, the country cancelled the visa requirements for visitors coming from the Arab Maghreb countries: Libya, Tunisia, Morocco and Algeria)55 and have given great results.

In this regard for facilitating movement and tourist flow, we can highlight the “Open sky” initiative and how Morocco and Tunis took the opportunity to boost Tourism and benefit from liberalization of the sky.

Open skies or the liberalization of the rules and regulations of the international aviation industry, especially commercial aviation, boosts a free-market environment for the airline industry. This liberalization benefits particularly low-cost companies. The opening of new international air corridors and between unconnected airports, has improved the connections over the Mediterranean.

Open skies and the creation of new routes, have had a major impact on income from Tourism. According to the World Travel and Tourism Council reports, Morocco registered a steadily growth of its foreign visitors since 2002 and it is expecting a growth rate of a 6% per year until 2020. Before the Arab revolution, we observed a similar process in Tunisia. The growth of the Tourism sector, in particular representing a 6,5% of the countries’ GDP in 2010, is highly dependent on a flexible and extensive air transport network. These observations can be detected in other Mediterranean countries from both sides of the sea.

This liberalization had positive impacts on Tourism (increase the flow of tourist), allowed discovering larger destination, and creating hubs, such as the Casablanca airport.

Several are the initiatives that show that the MPCs countries are a good opportunity for European investment, such as56:

Egypt’s central bank announced an initiative to boost investment in the country's tourism sector. It will provide financing facilities to tourism-related activities, including the construction of hotels and tourist projects, travel agencies and booking services, land transport companies, restaurants and other entertainment activities.

Bahrain's Khalifa Bin Salman Port drastically reduced passenger fees for each cruise ship in

a bid to lure back operators


56 Ibid


To serve the two countries’ tourism interests, Jordan and Egypt reopened the Taba-Aqaba tourist maritime line, following 18-month closure.

Lebanon launched a 50-day promotional campaign offering discounts up to 50% on airlines

tickets, hotels, car rentals as well as at restaurants and shopping centres.

3.5 Main programmes to support the Tourism sector among EU and MED countries

Program Purpose

Euromed Heritage

It is a regional programme with 57 million euros to fund partnerships between conservation experts and heritage institutions from the countries of the Mediterranean region. Almost 400 partners from the Member States of the European Union and MEDA countries (Algeria, Palestinian Authority, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia and Turkey) have benefited from the Programme during its past 4 phases. The last phase of Euromed Heritage (Euromed Heritage 4) represents a further milestone in the process of recognizing 'culture' as a catalyst for mutual understanding between the people of the Mediterranean region. A total of budget of 17 million euros, Euromed Heritage 4 intended to facilitate the appropriation by people of their own national and regional cultural legacy through easier access to education and knowledge on cultural heritage.

MEET (Mediterranean Experience of Eco-

Tourism)

Aiming to achieve a better seasonal and geographical spread of Tourism arrivals. To develop an integrated strategy in order to settle an eco-Tourism development model for the Mediterranean area that boosts a better seasonal distribution of Tourism flows, starting from the “European Charter for Sustainable Tourism” approach, through the establishment of a network amongst supply-side stakeholders (Natural Parks).

Facility for Euro-Mediterranean

Investment and Partnership (FEMIP) -

EIB

The overall objective of FEMIP is to support the EU's policies regarding the modernization and opening-up of the Mediterranean partner countries' economies. FEMIP has two priorities: supporting the private sector and creating an investment-friendly environment. FEMIP also represents a forum for meetings and dialogue between the Euro-Mediterranean partners.


3.6 Exhibition fairs and events

Some of the main fairs and events of the Mediterranean Partner Countries regarding the tourist sector are summarized below:

MOROCCO

CASABLANCA MAROCOTEL International Show for Professional Equipment for Hotels & Catering.

TUNISIA

TUNIS M.I.T. (Marche International du Tourisme)

20th International Tourism & Travel Fair.

ISRAEL

TEL AVIV IMTM 20th International Mediterranean Tourism Market.


4 Focus on foreign direct investments in the sector

Tourism is the second sector of FDI and business partnerships, in volume, addressed by the Euromed Invest project. The performance of this sector has been particularly low since 2008 and the global sequence of financial crisis, economic and debt crisis in Europe, political crisis in the MED countries.

Europe and the Gulf countries are the main investors in this sector, the latter investing in much larger projects (double size per project in average). In Europe, France, Spain and UK are the bigger provider of projects (in number and in volumes), while Belgium and Austria also originated large projects in the Mediterranean.

Over the past decade, Morocco (13€bn), Turkey (8€bn) and Lebanon (5€bn) are the top 3 countries for FDI attraction, while Algeria, Egypt and Jordan are also performing well (between 3.5 and 4€bn).

All data are extracted from the ANIMA-MIPO observatory.

4.1 Foreign Direct Investment (FDI) volumes

0

10

20

30

40

50

60

70

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of FDI projects Tourism, catering

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

FDI amount (€m) Tourism, catering


4.2 Origin and destinations

Cumulated FDI amounts per year and per country of destination (2003-2013)

Number of FDI projects (2003-2013)

Amounts of FDI by region and country of origin (€m)

0

1000

2000

3000

4000

5000

6000

Algeria Egypt Israel Jordan Lebanon Libya Morocco Syria Tunisia Turkey

Tourism, catering

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

50

100

150

200

Europe Gulf MED-11 Other countries

USA-Canada

Tourism, catering

0

5 000

10 000

15 000

20 000

25 000

Europe Gulf MED-11 Other countries

USA-Canada

Tourism, catering


4.3 Major 15 European FDI projects in the sector (2009-2013)

Host country

Company /Investor

Origin Project description FDI €m

Morocco

CDC - Caisse des Dépôts

et Consignatio

ns

France

The group to win a BOT contract to build and manage the 'Sindibad by Walibi' amusement park

near Casablanca in team with four Moroccan partners

197

Lebanon Kempinski

Hotels Switzerlan

d

The hospitality chain to open in 2012 a new 5-star hotel in Beirut's city centre, the Summerland, with

the support of an incentive package from IDAL 110

Morocco Pierre et Vacances

France The group to launch the 1st phase of its project with

the building of Tourism complexes in Marrakech, Rabat, Casablanca and Fez by 2012

100

Morocco

Aerium / Aerium Atlas Managemen

t

UK Monegasque Monte-Ca to launch a high-standard

hotel 'Jawhar Resort' project in Marrakech, through an investment of the Aerium Atlas Investment fund

94

Morocco Sienna

Investment UK

The Guernsey-based fund to invest in a luxury resort in Cabo Negro near Tetouan, to be managed by the

famous hospitality group Ritz Carlton 75

Morocco Exotic

Property Sales

UK The property developer to invest in a Tourism and

residential complex in Cabo Negro near Tetouan, the 'Playa Vista Primera'

72

Morocco Philippe Soulier

France The businessman to invest in the Palais Nasmakar, a luxury hotel due to open in Marrakech in March 2012

under the management of the Oetker group 50

Morocco Accor /

Accor Maroc (Risma)

France The hospitality group to increase the capital of its Moroccan affiliate Risma, based in Casablanca, in order to finance its 2014-2018 development plan

45

Turkey Barcelo Spain The Spanish hotel chain to take the management of

3 new hotels in the country by 2013, in Istanbul, 40

0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000

Austria

Belgium

France

Germany

Greece

Ireland

Italy

Luxemburg

Netherlands

Spain

Switzerland

UK

Tourism, catering


Antalya and Bodrum

Morocco Accor /

Accor Maroc (Risma)

France The group's 35% controlled subsidiary Risma to

launch two Sofitel in 2012: the Tour Blanche in Casa City Center and the other in Agadir

29

Host country

Company /Investor

Origin Project description FDI €m

Tunisia Vinci / CFE France The construction group to bring 25% of the total

investment required to realise the 'Marina Cap 3000' project

22

Turkey Accor France The group to open an Ibis hotel and a Novotel in the South-Eastern province of Gaziantep, in partnership

with local construction firm Akfen 21

Morocco Husa Spain The hotel group to launch an affiliate, Husa Maroc, in order to launch new hotels in addition to the three it

already manages in 2012 21

Morocco Accor /

Accor Maroc (Risma)

Belgium The hospitality group to inaugurate its new hote in Essaouira, Sofitel Mogador Golf & Spa, owned by local Risma group, in which it holds 35% stake

21


5 Conclusion & Recommendations

During the course of this paper we have seen the state of the art of the Tourism Sector among EU and Mediterranean Partner Countries, and how strategic this sector is to an inclusive social economic development in the region.

While the events a of recent years – such as the lingering economic crisis and the Arab Spring – have had a considerable impact on economies worldwide, there is also much room for positivity with the performance of the Tourism industry in the Euro-Mediterranean region, which has generally speaking proved resilient in the face of these crises. The overall tendency is towards the growth of the sector in the medium to long term.

Strategies need to be put in place, however, to ensure the consistent and sustainable development of the sector, specifically to improve the touristic offer in the region and simultaneously investing in priority niches that have a high economic, social and environmental added value. These niches represent considerable growth potential for both the northern and southern/eastern shores of the Mediterranean, and therefore should be considered as strategic to the implementation of EUROMED Invest activities in support of the Tourism sector.

The three priority niches most relevant to both EU countries and MPCs are those of Cultural Tourism, Experience Tourism and Eco-Tourism. While these niches represent expanding markets which cater to the needs of the modern tourist, these niches must also be considered strategic as they :

Are adaptable to the growing trend of personalization in the Tourism industry due to the uptake of information communication technologies.

Present sustainable practices which offset seasonal Tourism.

Take into account environmental considerations.

Build on the social, cultural and natural heritage of the region, ensuring more inclusive development.

The Tourism sector is transversal in nature, and the spill-over effects in the Euro-Mediterranean economies of investment in these key niches can play a strong role in increasing positive externalities resulting from increased activities.

FDI in the Tourism sector shows the low performance of this sector, mainly due to the global sequence of the financial crisis in Europe and political crisis in the MED countries. Even though, it is widely recognized the strategic and key role of this sector regarding the economy and social growth of these regions. In order to help boosting the remaining potential of the sector from which it has not been taken profit yet, initiatives under the EUROMED framework should:

Promote the internationalization of promising SMEs of the Tourism sector.

Encourage innovation in the Tourism industry, through dialogue and promotion of joint initiatives.

Integrate and coordinate with relevant initiatives which could create added value for the capitalisation of EUROMED Invest initiatives.

Identify local practices of high added value and disseminate on a regional level.

Support policy which fosters the growth of the Tourism industry in a sustainable and inclusive manner.


The EUROMED Invest initiative is uniquely placed to reunite 86 actors from 26 countries in order to respond to the needs of the Tourism sector, while coordinating with and involving the key agents outside of the consortium in order to boost synergies and spillover effects in the region.

The projects and activities conducted during the EUROMED Invest project will serve and compliment ongoing initiatives as well as proposing new measures to stimulate the Euro-Mediterranean Tourism sector.


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http://mediterranean.panda.org/threats/


7 Annexes

Annex I: Number of nights spent at tourist accommodation establishments, EU-28, 2002–12

a project financed by the european union, the medalliance ......this tourism sector strategy paper...

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