How Much Money Does Europe Invest In Their Tourism?

Are you curious about How Much Money Does Europe Invest In Their Tourism? SIXT.VN is here to guide you through the intricate landscape of European tourism investment. From supporting small businesses to promoting sustainable destinations, Europe’s commitment to its tourism sector is substantial. Discover how these investments shape the travel experiences and economic growth across the continent. Let’s dive in and explore the financial side of Europe’s thriving tourism industry, offering you insights to plan your next adventure with confidence.

1. What is the Legal Basis for EU Tourism Investment?

The legal foundation for the European Union’s involvement in tourism policy lies within Article 6(d) and Title XXII, Article 195 of the Treaty on the Functioning of the European Union (TFEU). This framework allows the EU to support, coordinate, and supplement the actions of its Member States in the realm of tourism.

1.1 How Does the EU Utilize This Legal Basis?

The EU leverages these articles to implement various initiatives aimed at bolstering the tourism sector. This includes coordinating efforts to enhance tourism infrastructure, promote sustainable tourism practices, and ensure the safety and rights of tourists. These legal provisions enable the EU to play a pivotal role in maintaining Europe’s status as a leading global tourist destination.

1.2 Why is a Legal Basis Important for Tourism Investment?

Having a solid legal basis ensures that the EU’s tourism investments are legitimate and aligned with its broader objectives. It provides a framework for allocating funds, setting standards, and implementing policies that benefit both tourists and the tourism industry. This legal foundation fosters stability and predictability, which are crucial for long-term growth and development in the tourism sector.

2. What are the Objectives of EU Tourism Investment?

The primary objectives of the EU’s tourism investment are to maintain Europe’s standing as a leading destination, maximize the industry’s contribution to growth and employment, and promote cooperation between EU countries. The EU’s tourism industry is a significant economic driver, comprising 2.3 million businesses, mainly SMEs, and employing approximately 12.3 million people.

2.1 How Does the EU Plan to Achieve These Objectives?

To achieve these objectives, the EU focuses on several key strategies:

• Supporting SMEs: Providing financial and logistical support to small and medium-sized tourism enterprises.
• Promoting Sustainable Tourism: Encouraging practices that minimize environmental impact and preserve cultural heritage.
• Enhancing Cooperation: Facilitating collaboration between EU countries to share best practices and develop joint tourism initiatives.
• Innovation and Digitalization: Investing in technology and digital solutions to improve the tourist experience and industry efficiency.

2.2 What Impact Does Tourism Have on the European Economy?

Tourism accounts for 10% of the EU’s GDP, demonstrating its significant impact on economic growth, employment, and social development. It serves as a powerful tool in combating economic decline and unemployment by creating jobs and stimulating local economies.

3. What are the General Policies for EU Tourism Investment?

Since 2001, the European Commission has outlined its policy guidelines for the tourism sector. The most recent communication, published in 2014, provides a comprehensive framework for developing tourism across the EU.

3.1 Key Areas of Focus in EU Tourism Policies

• Competitiveness: Enhancing the competitiveness of the European tourism industry by supporting innovation and quality improvements.
• Sustainability: Promoting sustainable tourism practices to protect the environment and cultural heritage.
• Skills Development: Investing in training and education to ensure a skilled workforce in the tourism sector.
• Accessibility: Improving accessibility for all tourists, including those with disabilities.
• Digitalization: Encouraging the adoption of digital technologies to enhance the tourist experience and streamline operations.

3.2 How Do These Policies Impact the Tourism Industry?

These policies provide a roadmap for sustainable growth and development in the tourism sector. They guide investment decisions and ensure that resources are allocated effectively to support the industry’s long-term success. By focusing on competitiveness, sustainability, and innovation, the EU aims to maintain Europe’s position as a leading tourist destination.

4. What Special Measures Benefit Tourists?

The EU has implemented special measures to enhance the travel experience for tourists, including steps to make border crossing easier and protect both the health and safety and the material interests of tourists. These measures include directives and regulations on fire safety in hotels, timeshare properties, and package travel.

4.1 Examples of Tourist-Focused Measures

• Council Recommendation 86/666/EEC: Focuses on fire safety in hotels to ensure the safety of tourists during their stay.
• Directive 2008/122/EC: Regulates timeshare properties, protecting tourists from fraudulent or misleading practices.
• Directive (EU) 2015/2302: Covers package travel and linked travel arrangements, ensuring that tourists are protected in case of cancellations or other issues.
• Directive 2006/7/EC: Focuses on the management of bathing water quality, ensuring that tourists can enjoy clean and safe beaches and swimming areas.

4.2 How Do These Measures Improve the Tourist Experience?

These measures provide tourists with a sense of security and confidence, knowing that their safety and rights are protected. They contribute to a more enjoyable and stress-free travel experience, encouraging tourists to visit and return to Europe.

5. What are the EDEN Initiatives for European Tourism?

The ‘EDEN’ (European Destinations of Excellence) initiative focuses on promoting European tourist destinations of excellence, which are little-known or emerging destinations that observe sustainability principles.

5.1 How Does EDEN Promote Sustainable Tourism?

EDEN promotes sustainable tourism by:

• Highlighting Unique Destinations: Showcasing lesser-known destinations that offer authentic and sustainable tourism experiences.
• Encouraging Best Practices: Promoting sustainable tourism practices and environmental protection.
• Supporting Local Communities: Investing in local communities and economies through tourism development.

5.2 What Are Some Examples of EDEN Destinations?

EDEN destinations are diverse and offer a range of unique experiences, from eco-friendly resorts to cultural heritage sites. These destinations demonstrate a commitment to sustainability and offer tourists an opportunity to explore Europe’s hidden gems.

6. How Does the EU Support Sustainable Tourism?

The EU supports sustainable tourism through various initiatives, including the European Green Belt (6,800 km of paths from the Barents Sea to the Black Sea), which promotes the transformation of the former Iron Curtain into a cross-border network of walking and cycling paths.

6.1 What is the European Green Belt Initiative?

The European Green Belt initiative aims to:

• Promote Cross-Border Cooperation: Encouraging cooperation between countries along the former Iron Curtain.
• Conserve Biodiversity: Protecting and restoring natural habitats and biodiversity.
• Develop Sustainable Tourism: Creating opportunities for sustainable tourism, such as hiking and cycling.

6.2 What Other Sustainable Tourism Projects Does the EU Co-finance?

The EU co-finances various cross-border sustainable tourism projects to diversify tourism options in Europe. These projects focus on:

• Eco-tourism: Promoting environmentally friendly tourism activities.
• Cultural Tourism: Preserving and promoting cultural heritage.
• Rural Tourism: Supporting tourism in rural areas to boost local economies.

7. What is the DiscoverEU Programme?

The ‘DiscoverEU’ programme allows 18-year-old Europeans to travel across the EU and learn more about the diversity of Europe. This initiative aims to promote cultural awareness, encourage exploration, and foster a sense of European identity among young people.

7.1 How Does DiscoverEU Promote Tourism?

DiscoverEU promotes tourism by:

• Encouraging Youth Travel: Providing young Europeans with the opportunity to travel and explore different parts of the EU.
• Promoting Cultural Exchange: Fostering cultural exchange and understanding among young people from different backgrounds.
• Supporting Local Economies: Encouraging young travelers to visit and support local businesses in various regions.

7.2 What Are the Benefits of the DiscoverEU Programme?

The DiscoverEU programme offers numerous benefits, including:

• Cultural Enrichment: Providing young people with a chance to learn about different cultures and perspectives.
• Personal Development: Fostering independence, self-confidence, and a sense of adventure.
• European Identity: Promoting a sense of belonging to the European community.

8. How Does the EU Support Tourism Regions?

The EU supports the creation of networks between the main European tourist regions and offers a range of funding sources to help tourism contribute to regional development and employment.

8.1 How Does the EU Facilitate Regional Cooperation?

The EU facilitates regional cooperation by:

• Creating Networks: Establishing networks between tourist regions to share best practices and develop joint initiatives.
• Providing Funding: Offering financial support for tourism projects that contribute to regional development.
• Promoting Innovation: Encouraging innovation and the adoption of new technologies in the tourism sector.

8.2 What Types of Funding Are Available for Tourism Regions?

The EU offers various funding sources for tourism regions, including:

• European Regional Development Fund (ERDF): Supports regional development projects, including tourism infrastructure and services.
• European Agricultural Fund for Rural Development (EAFRD): Supports tourism in rural areas, promoting sustainable agriculture and rural tourism.
• European Social Fund (ESF): Supports training and employment initiatives in the tourism sector.

9. What is the EU-wide System for Protecting Geographical Indications?

In April 2022, the Commission adopted a proposal for creating an EU-wide system on the protection of geographical indications of non-agricultural products (such as handicrafts). These products are often significant for local identity and attract tourism.

9.1 How Does Protecting Geographical Indications Boost Tourism?

Protecting geographical indications (GIs) boosts tourism by:

• Preserving Local Identity: Ensuring that unique local products and traditions are protected and promoted.
• Attracting Tourists: Drawing tourists to regions known for their distinctive products and cultural heritage.
• Supporting Local Economies: Boosting local economies by increasing demand for regional products and services.

9.2 What Are the Aims of Revising the Regulation on Geographical Indications?

The aims of revising the regulation are to:

• Boost Regional Economies: Supporting economic growth in regions known for their unique products.
• Promote Tourism: Attracting tourists to these regions and enhancing their travel experience.
• Protect Cultural Heritage: Preserving and promoting cultural traditions and local products.

10. How Does the EU Collect and Share Tourism Statistics?

Harmonized statistics on tourism have been compiled in the EU since 1996. Regulation (EU) No 692/2011 of 6 July 2011 established a common framework for the systematic development, production, and dissemination of European statistics on tourism collected in the Member States.

10.1 Why Are Harmonized Tourism Statistics Important?

Harmonized tourism statistics are important because they:

• Provide Accurate Data: Offering reliable and comparable data on tourism trends across the EU.
• Support Policy Making: Helping policymakers make informed decisions based on accurate data.
• Enable Benchmarking: Allowing countries and regions to benchmark their performance against others.

10.2 What is the Virtual Tourism Monitoring Centre?

In 2013, the Commission created a Virtual Tourism Monitoring Centre to coordinate the collection and storage of data and to guarantee a greater degree of synergy between the levels at which tourism policy decisions are taken.

11. What is the EU Tourism Dashboard?

In October 2022, the Commission launched the EU tourism dashboard, a tool to assist regional and national policymakers in directing policies and strategies in the tourist sector by increasing the accessibility of tourism statistics and aiding destinations and public agencies in monitoring their progress in the green and digital transitions.

11.1 How Does the EU Tourism Dashboard Aid Policymakers?

The EU Tourism Dashboard aids policymakers by:

• Providing Accessible Data: Making tourism statistics easily accessible to policymakers.
• Monitoring Progress: Helping destinations and public agencies monitor their progress in the green and digital transitions.
• Guiding Policy: Supporting the development of effective policies and strategies for the tourism sector.

11.2 What is the Transition Pathway for Tourism Strategy?

The EU Tourism Dashboard is one of the proposed measures in the Commission’s ‘transition pathway for tourism strategy’ of 2022. This strategy aims to:

• Promote Green Transition: Encouraging sustainable tourism practices and reducing the environmental impact of tourism.
• Foster Digital Transition: Supporting the adoption of digital technologies in the tourism sector.
• Enhance Resilience: Strengthening the resilience of the tourism industry to face future challenges.

12. What is the Regulation on Data Collection and Sharing Related to Short-Term Accommodation Rental Services?

In November 2022, the Commission adopted a revision of Regulation (EU) 2018/1724 on data collection and sharing related to short-term accommodation rental services. This initiative seeks to develop responsible, transparent, and fair growth in short-term rentals as part of a well-balanced tourist ecosystem.

12.1 Why is Data Collection Important for Short-Term Rentals?

Data collection is important for short-term rentals because it:

• Ensures Transparency: Providing data on the number of short-term rentals, their location, and occupancy rates.
• Supports Regulation: Helping authorities regulate the short-term rental market and ensure fair competition.
• Promotes Responsible Growth: Encouraging responsible and sustainable growth in the short-term rental sector.

12.2 How Does This Regulation Benefit SMEs?

This regulation focuses on SMEs in particular and aims to:

• Create a Level Playing Field: Ensuring that SMEs can compete fairly with larger players in the short-term rental market.
• Promote Responsible Growth: Encouraging sustainable and responsible growth in the short-term rental sector.
• Enhance Transparency: Providing SMEs with access to data and information that can help them make informed decisions.

13. What Focused Measures Has the Commission Organized?

The Commission organized a Showcase Conference on Tourism that took place in Brussels on 19 March 2019, highlighting best practices and innovative approaches in the tourism sector.

13.1 What Was the Purpose of the Showcase Conference on Tourism?

The purpose of the conference was to:

• Share Best Practices: Showcasing successful tourism initiatives and strategies from across Europe.
• Promote Innovation: Encouraging the adoption of innovative technologies and approaches in the tourism sector.
• Foster Collaboration: Facilitating collaboration and networking among tourism stakeholders.

13.2 What is the Planned Regulation on Digitalizing Travel Documents?

In 2023, the Commission is planning to adopt a regulation on digitalizing travel documents. This would make traveling easier, as digital travel documents are simpler to issue, which would benefit the tourism industry.

14. What is the European Parliament’s Role in Tourism Policy?

The European Parliament has adopted a series of resolutions on the Commission guidelines and initiatives concerning tourism. Parliament plays a crucial role in shaping EU tourism policy through its legislative and oversight functions.

14.1 How Does Parliament Influence Tourism Policy?

Parliament influences tourism policy by:

• Adopting Resolutions: Expressing its views and priorities on tourism-related issues.
• Legislative Role: Participating in the legislative process to shape EU laws and regulations on tourism.
• Oversight Function: Monitoring the implementation of EU tourism policies and holding the Commission accountable.

14.2 What Resolutions Has Parliament Adopted on Tourism?

Parliament has adopted several key resolutions, including:

• Resolution on Europe, the world’s No 1 tourist destination: Outlining Parliament’s vision for the future of European tourism.
• Resolution on establishing an EU strategy for sustainable tourism: Calling for a comprehensive strategy to promote sustainable tourism practices.
• Resolution on new challenges and concepts for the promotion of tourism in Europe: Addressing the challenges and opportunities facing the tourism sector.

15. How Did the COVID-19 Outbreak Impact the Tourism Sector?

The COVID-19 outbreak had a significant impact on the tourism sector, with Europe seeing a dramatic 44% decline in international tourist arrivals during the first four months of 2020 compared to the same period in 2019. Tourism job losses in Europe in 2020 ranged from 14.2 million to 29.5 million.

15.1 What Measures Did the EU Take to Address the Crisis?

The Commission deployed different rapid response tools, including:

• Suspending Airport Slot Rules: Proposing to suspend the rules obliging airlines to use their allocated slots at EU airports.
• Providing Guidelines on Passenger Rights: Offering guidelines on EU passenger rights and border checks.
• Assisting in Repatriation: Helping to repatriate EU travelers during the lockdown.

15.2 What Communications Did the Commission Put Forward?

In May 2020, the Commission put forward its communication entitled ‘Tourism and transport in 2020 and beyond’, bringing together guidance and recommendations to safely restore unrestricted free movement and reopen internal borders.

16. What Actions Did Parliament Take During the COVID-19 Pandemic?

Parliament debated the COVID-19 outbreak during its plenary sessions and adopted its position on three legislative proposals: launching the Coronavirus Response Investment Initiative, extending the EU Solidarity Fund to cover public health emergencies, and temporarily suspending airport slot rules.

16.1 What Resolutions Did Parliament Adopt on Tourism and Transport?

At its plenary session of 19 June 2020, Parliament adopted a resolution on tourism and transport in 2020 and beyond, calling for rapid, short-term, and long-term support for the transport and tourism sectors to ensure their survival and competitiveness.

16.2 How Did Parliament Address Sustainable Tourism During the Pandemic?

In March 2021, Parliament adopted a resolution entitled ‘Establishing an EU strategy for sustainable tourism’, in which it called on the Member States to fully implement common and coordinated criteria for safe travel without delay.

17. What is the Action Plan for Fair and Simple Taxation?

In July 2020, the Commission adopted an ‘Action plan for fair and simple taxation supporting the recovery strategy’. In this plan, the Commission outlined its goal to revise the VAT Directive, in particular the VAT special scheme for travel agents.

17.1 What Are the Aims of Revising the VAT Directive?

The aim of the initiative is to revise the special VAT scheme for travel agents, VAT rules on passenger transport, and the VAT exemption regime for non-EU travelers.

17.2 How Will This Action Plan Support the Tourism Sector?

This action plan will support the tourism sector by:

• Simplifying Tax Rules: Making tax rules more straightforward and easier to comply with.
• Ensuring Fairness: Creating a level playing field for all businesses in the tourism sector.
• Supporting Recovery: Helping the tourism sector recover from the impact of the COVID-19 pandemic.

Taxation and financial planning

18. What Measures Were Taken to Establish Safe Travel During the Pandemic?

On 17 March 2021, the Commission put forward a communication entitled ‘A common path to safe and sustained re-opening’, as well as a proposal for a regulation on a framework for the issuance, verification, and acceptance of interoperable certificates on vaccination, testing, and recovery to facilitate free movement during the COVID-19 pandemic (Digital Green Certificate).

18.1 What is the EU Digital COVID Certificate?

The EU Digital COVID Certificate was accepted in all Member States, helping to ensure the right to freedom of movement for all EU residents. Following a revision of the regulation, the Digital COVID Certificate Scheme was extended until June 2023.

18.2 How Did These Measures Support the Tourism Sector?

These measures supported the tourism sector by:

• Facilitating Travel: Making it easier for people to travel safely within the EU.
• Restoring Confidence: Helping to restore confidence in travel and tourism.
• Supporting Recovery: Contributing to the recovery of the tourism sector.

19. What is the Transition Pathway for Tourism?

In February 2022, the Commission adopted its plan entitled ‘Transition Pathway for Tourism’. The updated EU industrial strategy stressed the need to strengthen the tourism sector’s resilience and accelerate the digital and green transitions in light of the COVID-19 pandemic.

19.1 What Are the Key Areas of Measures for the Transition Pathway?

The transition pathway identified 27 areas of measures for the green and digital transitions and to make the EU’s tourism industry more resilient.

19.2 What is the EU Agenda for Tourism 2030?

In response to this plan, the Council adopted the ‘EU agenda for tourism 2030’ in December 2022. The agenda focused on five priorities: the green and digital transitions; resilience and inclusion; skills and support; and the governance and policy-enabling framework, with several actions included under each priority.

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FAQ: European Tourism Investment

1. Why does Europe invest in tourism?

Europe invests in tourism because it’s a major economic driver, contributing significantly to GDP, employment, and social development. Investment helps maintain Europe’s position as a top tourist destination and promotes sustainable growth.

2. How does the EU support small tourism businesses?

The EU supports small tourism businesses through financial aid, logistical assistance, and by fostering networks that encourage collaboration and the sharing of best practices.

3. What is the EDEN initiative?

EDEN (European Destinations of Excellence) is an EU initiative that promotes lesser-known, emerging tourist destinations that prioritize sustainability.

4. What is the DiscoverEU program?

DiscoverEU allows 18-year-old Europeans to travel across the EU, promoting cultural exchange and a sense of European identity.

5. How does the EU ensure tourist safety?

The EU ensures tourist safety through measures like fire safety standards in hotels, regulations on timeshare properties, and directives on package travel, protecting tourists from fraud and ensuring their well-being.

6. What is the European Green Belt?

The European Green Belt is a 6,800 km network of paths promoting sustainable tourism and biodiversity conservation along the former Iron Curtain.

7. What role does data collection play in EU tourism policy?

Data collection provides accurate and comparable tourism statistics, supporting informed policy-making and enabling benchmarking among regions and countries.

8. What is the EU Tourism Dashboard?

The EU Tourism Dashboard assists policymakers by providing accessible tourism statistics, monitoring progress in green and digital transitions, and guiding effective policy development.

9. How did the COVID-19 pandemic impact EU tourism investment?

The COVID-19 pandemic led to a significant decline in tourist arrivals and job losses, prompting the EU to implement measures like suspending airport slot rules, providing passenger rights guidelines, and assisting in repatriation efforts.

10. What is the Transition Pathway for Tourism?

The Transition Pathway for Tourism is an EU plan that aims to strengthen the tourism sector’s resilience, accelerate digital and green transitions, and address the challenges posed by the COVID-19 pandemic.

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