WP 4: Socio-economic trends and EU policy in offshore economymaribe.eu/wp-content/uploads/2016/09/wp4-external... · 2016. 11. 3. · 8.1. Introduction Definitions ... The sale of

WP 4: Socio-economic trends and EU policy in offshore

economy

D4.1-3

Chapter 8 – Tourism

Status: Final

23/02/2016

This project has received funding from the European Union’s Horizon 2020 research and innovation programme

under grant agreement No 652629

About MARIBE MARIBE is a Horizon 2020 project that aims to unlock the potential of multi-use of space in the

offshore economy (also referred to as Blue Economy). This forms part of the long-term Blue Growth

(BG) strategy to support sustainable growth in the marine and maritime sectors as a whole;

something which is at the heart of the Integrated Maritime Policy, the EU Innovation Union, and the

Europe 2020 strategy for smart, sustainable growth.

Within the Blue Economy, there are new and emerging sectors comprising technologies that are

early stage and novel. These are referred to as Blue Growth sectors and they have developed

independently for the most part without pursuing cooperation opportunities with other sectors.

MARIBE investigates cooperation opportunities (partnerships, joint ventures etc.) for companies

within the four key BG sectors in order to develop these companies and their sectors and to

promote the multi-use of space in the offshore economy. The sectors are Marine Renewable Energy,

Aquaculture, Marine Biotechnology and Seabed Mining. MARIBE links and cross-cuts with the

Transatlantic Ocean Research Alliance and the Galway Statement by reviewing the three European

basins (Atlantic, Mediterranean, and Baltic) as well as the Caribbean Basin.

Coordinator:

Partners:

Acknowledgement The work described in this publication has received funding from the European Union’s Horizon 2020

research and innovation programme under grant agreement No 652629

Legal Disclaimer The views expressed, and responsibility for the content of this publication, lie solely with the

authors. The European Commission is not liable for any use that may be made of the information

contained herein. This work may rely on data from sources external to the MARIBE project

Consortium. Members of the Consortium do not accept liability for loss or damage suffered by any

third party as a result of errors or inaccuracies in such data. The information in this document is

provided “as is” and no guarantee or warranty is given that the information is fit for any particular

purpose. The user thereof uses the information at its sole risk and neither the European Commission

nor any member of the MARIBE Consortium is liable for any use that may be made of the

information.



Chapter 8 – Tourism Dimitrios Pletsas, Sara Barrento, Ian Masters, Jack Atkinson-Willes

Executive summary Coastal Tourism & Recreation (TR) is considered by Maribe one of the Blue Economy sectors that can

help unlock the potential of multi-use of space at sea by engaging with Blue growth sectors such as

Aquaculture and Marine Renewable Energy among others. While the project scope is to exploit

opportunities in the offshore, coastal TR is mainly based onshore with very few exceptions (i.e.

cruise industry) that also depend on land infrastructure (ports) to serve their customer segments.

The current work provides insights into the trends that exist in the TR Blue Economy sector focusing

around the current life cycle stages identified in subsectors of this industry. Any existing and future

supply and demand gaps will be identified by studying the supply chain of TR. An emphasis will be

placed highlighting regional variations in four different basins (Baltic, Atlantic, Mediterranean,

Caribbean). Life-cycle learning from each sub-sector will be gained keeping note of any different life

stages observed for the same subsector at different regions (i.e. local, national, EU, Caribbean and

international) and any geographic focal points for development. Also social trends will be identified

including: employment, migrations associated with BG opportunities and associated pressures (e.g.

social; public services and infrastructure).

8.1. Introduction Definitions Tourism definition according to the United Nations World Tourism Organization UNWTO:

“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. These people

are called visitors (which may be either tourists or excursionists; residents or non-residents) and

tourism has to do with their activities, some of which involve tourism expenditure.”

Leisure industry is the segment of business focused on entertainment, recreation, sports and tourism

related products and services. Some examples of marine activities include the following:

Sports Heritage Arts Education Food

Sailing

Diving

Surfing

Fishing

UNESCO Coastal villages

Archaeological sites of interest

Museums

Art galleries

Eco-tourism

Field courses

Seafood restaurants

Seafood festivals

For the purposes of this study the following definitions apply:

Leisure is defined as activities associated with tourism alone including relevant divisions such as

recreation and the above mentioned activities.



Tourism and Leisure (T&L) will be studied as a mature Blue Economy sector which can be mapped to

Blue Growth industries including Ocean Energy (OE), Aquaculture (AQ), Blue Biotechnology (BB),

Sea-Bed Mining (SBM) and Multi-Purpose Platforms (MPP).

The current study will focus around the following Tourism and Leisure sub-sectors under 3 themes as

shown in the table below:

Table 8.1. Definition of tourism and leisure sub-sectors

8.2. Market

8.2.1 Market key facts Tourism is one of the most important economic activities worldwide, but especially in the Caribbean

and the EU. T&L besides having a direct economic impact, it also has significant indirect and induced

impacts.

All major components of T&L recorded growth in 2014, as did all world regions. However growth

was weaker than anticipated one year before. Growth is highly dependent on the macroeconomic

performance.

Table 8.2. World Ranking based on 12 regions (Source: WTTC, 2014a,b) European Union Caribbean

GDP direct contribution 2013 USD 552.1 bn

3.3 % of total USD 15.3 bn 4.4 % of total

Forecast 2014-2024 3.6 % of total 4.5 % of total GDP total contribution

2013

Forecast 2014-2024

USD 512.4 9 bn 9.0% of total 9.8 % of total

USD 49. bn 14.0% of total 14.5 % by 2024

Employment direct contribution

2013 9,006,000 jobs 4.1 % of total

607,000 jobs 3.6 % of total

Forecast 2014-2024 4.8 % of total 3.9 % of total

Tourism & Leisure sub-sectors

Definition

Theme 1: Selling directly to the customer

The sale of products and services from a supply chain company (e.g. hotel owner, cruise operator, online or high-street travel agent ) directly to consumers:

Business tourism – business trip package, flight, local transportation, hotel, conference/exhibition.

Pleasure tourism- holiday package, flight, local transportation, resort/hotel.

Leisure – beach/water sports, recreation, heritage, arts, entertainment, education, shopping, gastronomy.

Theme 2: Selling directly to corporate

The sale of products and services from a supply chain company to another also known as “Tier 1 suppliers” prior to reaching the consumer: e.g. hotel owner sells to tour operator; water sports centre sells to hotel; flight operator sells to tour operator; software/app designer sells to online travel agent ..

Theme 3: Vertical integration

A combination of the above where companies have ownership on large parts of the Tourism and Leisure supply chain: e.g. Online travel agent has shares on airline and/or holiday destination hotel/resort and/or other product and services companies (Monarch group, TUI group etc.); Cruise liner owner sells cruises and has stakes in destinations.



Employment total contribution

2013 21,922,500 jobs 10% of total

1,909,000 jobs 11.3 % of total

Forecast 2014-2024 11.1 % of total 12.2 % of total Visitor Exports

2013 USD 428.6 bn 5.5 % of total

USD 26.3 bn 17.6 % of total

Forecast 2014-2024 5.7 % of total 18.2 % of total Investment

2013 USD 135.8 bn 4.7 % of total

USD 6 bn 11.3 % of total

Forecast 2014-2024 5.1 % of total 12.5 % of total World Ranking

GDP direct contribution GDP total contribution

Employment directcontribution Employment total

contribution Visitor Exports

Investment

12 12 10

11 12 11

11 10 7

9 10 10

Also the contribution to growth from leisure is more stable than the contribution from business

travel, especially considering that there has been general cut on business travel spending, in

particular by the Chinese government. Growth seems to be the general trend in both the EU and the

Caribbean, and the forecasts are all positive until 2024.

A research report conducted by SRI International for the Global Spa & Wellness Summit found that

wellness tourism represents a US$439 billion market, equivalent to 14 percent of world tourism

expenditures. Wellness tourism category will grow nine percent annually through 2017, 50 percent

faster than “regular” tourism (GSWS, 2014).

World’s top tourism destinations

Europe consolidates its position as the most visited region in the world and accounts for 41% of

worldwide international tourism receipts.

All the 4 MARIBE sea basins are represented in the top ten most visited countries. From a sea basin

perspective, worldwide the most visited is the Mediterranean, followed by the North Atlantic, the

Caribbean and in last comes the Baltic Sea. Nevertheless, the tourism industry in the Baltic Sea

region contributes significantly to the economies of the countries in the region, with a total of 73

million international arrivals in the region. Europe accounts for half of the world's total tourism – the

Baltic Sea region accounts for around 13 percent of the tourism in Europe and 7 percent of the

world's tourism measured by arrivals.

Due to the geomorphology of Europe there is a vast coastal region which provides a lot of natural

and cultural wealth and this is exploited by T&L and interrelated (e.g. recreation) BE industries.



Europe is the most visited region with over half of the world’s international tourists and arrivals

increased in 2014, reaching a total of 588 million.

Tourism has been a major contributor to the European economic recovery. Northern Europe and

Southern and Mediterranean Europe led growth (both +7%), while results were more modest in

Western Europe (+2%). Arrivals in Central and Eastern Europe (0%) stagnated after three years of

strong growth.

Table 8.3. International tourist arrivals per selected countries (Source: UNWTO (2015); CDI (2013))

Country International tourist arrivals 2014

Relation to MARIBE

France 83.7 million North Atlantic and Mediterranean USA 74.8 million Caribbean and North Atlantic Spain 65.0 million Mediterranean and North Atlantic China 55.6 million Not relevant for MARIBE Italy 48.6 million Mediterranean Turkey 39.8 million Mediterranean Germany 33.0 million North Atlantic United Kingdom 32.6 million North Atlantic Russian Federation 29.8 million Baltic Sea Mexico 29.1 million Caribbean

8.2.2 Selling directly to the customer Integrated Leisure Tourism Business (LTB)

Package holiday products to choose from (e.g. TUI Travel)

8.2.2.1 Selling directly to the customer market overview OTA market

The Online Travel Agent (OTA) market dominates the current Theme. It is enabled by companies

which have strong online presence with access to tools to help the customer throughout his decision

making and transaction process (i.e. travel booking). Hence the customers are able to research and

apply their personal criteria prior to booking their holiday experience. Numerous T&L product

suppliers provide online access for booking hotel, flights, car rental or combinations of these,

including: online tour operators (e.g. Expedia and its subsidiaries), budget airlines (e.g. EasyJet),

research enabling (Trip Advisor), and leisure specialist & activity companies (mainly based at

destinations).

The OTA market is made of online travel suppliers some of which are subsidiaries of a corporate

group. A common strategy for the latter is to invest on individual brands rather than in high profile

mergers as consumers typically visit multiple travel sites prior to booking travel. Hence having a

multi-brand strategy increases the likelihood that those consumers will visit one or more of a large

subsidiary group sites.

A market summary overview is shown below:

International arrivals reached 1.087 billion people in 2013, a 5% increase from 2012

In Europe the leisure travel market grew 5.4%



Travel and tourism accounts for 9.5% of global GDP and 1 in 11 jobs worldwide

Market growth is forecast to rise 4.2% per annum from 2014 – 2024

Market continues to be driven by high growth in online bookings

8.2.2.2 Selling directly to the customer market trends & future outlooks

Customers are increasingly moving towards online channels to fulfil their travel and

accommodation needs. This trend has been noticed in the past 5 years and is expected to

continue

Online travel and accommodation continues to be two of the fastest growing segments in

the leisure travel industry, driven by the growth in online bookings and supplemented by

strong demand from the emerging markets.

Tour operators who offer package holiday products

o invest heavily in online presence

o increasing participation in social media

o move towards an online-driven company culture

Demand (and growth) for holiday travel and online accommodation is expected to continue

for the near future (Source: TUI Travel, 2014)

Online booking accounts for 45% of total travel sales in Europe (PhoCusWright)

market maturity drives acquisitions of products from other industries (e.g. food industry:

Priceline’s purchase, of OpenTable, a restaurant-reservation website)

market has matured in many rich countries with limited scope for expansion beyond the

45% of total travel share. Remaining 55% is accounted for (e.g. business trips handled by

specialist corporate-travel agents)

market is increasingly growing with online travel gaining share on an estimated global travel

market of over $1 trillion.

These trends are driving the innovation of new technologies (e.g. apps, online booking tools,

management software, interface tools).

During 2012, a monthly average of approximately 60 million unique visitors come to Expedia

sites to research, plan and book travel (Expedia, 2013)

o Holistic approach required (ETOA)

Travel companies need to adopt a holistic approach

They need to follow customers through-out all of the steps in the booking

funnel

If not, they will face threats from companies active at other stages of the

funnel

From a MARIBE perspective,the largest European destination for online

hotels sales is the Mediterranean basin, mainly represented by Spain, US$6

billion (2013). This trend seems to be consistent and considering that Italy

achieved the sharpest growth in 2013 (+26%), followed by Spain (+24%).

(Source: European monitoring International (2014); The Economist (2014); ETOA, 2010; Expedia, 2013)



8.2.3. Selling directly to corporate (not the customer) Tier 1 suppliers: i.e. not dealing with customers directly – hotel owner sells to tour operator;

water sports centre sells to hotel; flight operator sells to tour operator; software/app

designer sells to online travel agent...

Case study: Olympic Holidays, Thomson, HIT

8.2.3.1. Selling directly to corporate travel market overview The corporate travel market offers an opportunity for rental, hotel, activity and restaurant services

in tourist destinations to greatly improve return on marketing effort while ensuring a reliable influx

of visitors. As visitors are also booked well in advance, this allows for further investment and

improved revenue predictions. Additionally, it presents a large opportunity for emerging markets as

corporations can have more focussed advertising, or an established existing customer base, in these

markets. By selling directly to corporate, visitors will be easier to manage and cater for as visitor

details and demographics are known prior to arrival. Also, environmental impact is reduced due to

coach travel etc. However, reduced cost and risk comes at a price as corporate customers will expect

a reduced deal (on price per room, for example).

Package holidays are the most common example of selling directly to corporate tourism. Resurgence

in popularity in recent years has resulted in 46% of UK holidaymakers in 2013 opting for package

holidays when travelling abroad, increasing to 51% in 2014.

8.2.3.2. Selling directly to corporate market trends & future outlooks (ABTA, 2014, 2015;

ETOA, 2010; Euromonitor International, 2013))

Mobile apps from tour operators and OTA have the potential to increase the success of the

corporate travel market to ease of use. Package travel may grow in popularity compared to

booking hotels and flights individually.

Growth in Chinese and Middle Eastern tourist travel to Europe – growing target market for

package operators (particularly luxury ones), which may result in an increase in corporate

tourism business success.

Growth in peer-to-peer travel (tourists receiving services from individuals facilitated by

websites or apps such as Airbnb or Blablacar. This poses a risk to corporate tourism as they

cannot match ‘authenticity’ that these means can provide. However, ease and simplicity of

package tours will remain a large draw for many tourists.

City breaks overtook beach holidays as the most popular type of holiday in 2014 (within the

UK). Package holidays can easily adapt to these changing trends as ‘weekend breaks’ can be

advertised to the public, particularly outside of the summer months.

Wellness and spa break holidays are also an increasing trend in 2015, and the market is set to grow.

By selling directly to corporate tourist companies, businesses can better capitalise on their growing



popularity by using the corporation’s capital and resources to better advertise the destination. This

will grow the client base and reputation of the destination.

8.2.4. Vertical integration T&L Supply chain ownership. E.g. Online travel agent has shares on airline and/or holiday

destination hotel/resort and/or other product and services companies (Monarch group, TUI

group etc.); Cruise liner owner sells cruises and has stakes in destinations ..

8.2.4.1 Vertical integration T&L market overview By providing services at multiple levels within the same supply chain, it is much easier for an

organisation to capture a larger portion of the market. Within the tourism industry, vertical

integration usually presents itself in the form of a single organisation that is simultaneously a travel

agency, airline and tour operator. The organisation is then better placed to control their pricing and

interact with companies at all levels of the chain. This results in more comprehensive package deals

to its customers at a more competitive rate. This also serves to reduce the amount of risk that an

organisation takes when introducing a new service, as it can use other levels within the same supply

chain to steer reliable income towards that area. For example, if an organisation wished to begin a

flight service to a new destination, the travel agency owned by that organisation could then begin

promoting this to its customers, and any hotels owned by the organisation at that destination could

begin offering reduced price deals for prospective visitors.

This example of vertical integration in tourism is most commonly seen with the ‘Big Four’ of the UK

tourism industry, compromising of TUI Group, First Choice, MyTravel and Thomas Cook. Each of

these companies owns multiple travel agents, airlines and hotels and as such have significant

influence over the UK travel market.

8.2.4.2. Vertical integration T&L market trends & future outlooks

Rise of independent and peer-to-peer travel is a threat to vertical integration, as it gives

organisations less of a control over the market as customers cannot be steered into selecting

certain deals or offers.

Websites and apps such as Airbnb provide an unbiased service for accommodation. Smaller

companies are then able to capture back some of the market as it is easier to communicate

their services to prospective customers.

While these developments do pose a challenge to vertical integration tourism, the tourism

market continues to grow steadily year on year. As vertical integration generally allows for

the least expensive and best advertised deals, it is likely that this tourism theme will

continue to see widespread use in the coming years.

Large companies, such as the big four, are well placed to expand into new forms of tourism

as they emerge. For example, wellness tourism businesses, such as spa breaks or retreats,



can be purchased by these large organisations to add to their portfolio of holiday

destinations and activities.

Due to their advertising power, large organisations are also well placed to move into the

growing Arabic and Chinese markets.

(Source: Lafferty and van Fossen, 2001; Tremblay, 1998)

Europe Caribbean Growth from 2003-2013 172.5%

Northern Europe > Mediterranean 37 %

“From a MARIBE perspective Europe has seen bed day capacity increase by 172% over

the 10-year period, rising from 18.2 million bed days to 49.6 million. Within Europe,

the growth in Northern Europe has been stronger than that in the Mediterranean as a

result of an actual decline in deployed capacity in the Mediterranean in 2012 and

2013. As a consequence European capacity has increased from about half of that

deployed in the Caribbean in 2003 to 103% of Caribbean capacity in 2013. Now, the

Caribbean and Europe account for more than 70% of the global capacity of the cruise

industry.”

(Source: CLIA, 2013)

8.3. Sector industry structure and lifecycle In general tourism & leisure is a mature industry aiming at diversification; from a Maribe context

only the T&L in the Baltic is not yet considered a matured sector.

Table 8.4. Lifecycle of the Tourism and Leisure industry within the studied basins

T&L selling directly to the

customer

T&L selling directly to

corporate

T&L vertical integration

North Atlantic MATURE MATURE MATURE

Caribbean MATURE MATURE MATURE

Baltic GROWING GROWING GROWING

Mediterranean MATURE MATURE MATURE



8.4. Working environment

8.4.1. Employment and skills 8.4.1.1. Social trends The coastal tourism sector is not attracting or maintaining enough skilled personnel due to its

seasonality and lack of long term career opportunities which can lead to problems in service quality

and hamper competitiveness.

The sector needs well qualified professionals, service minded and multilingual. It also needs dynamic

and creative entrepreneurs who can link local enterprises, administration and stakeholders and deal

with the following challenges:

1. energy and GHG emissions (particularly relevant for the cruising industry)

2. water consumption (particularly relevant in the Mediterranean and Caribbean)

3. waste and pollution management (also in conflict with other industries, cargo transport,

petrol and gas extraction, agriculture)

4. loss of biological diversity; (of special interest in the Mediterranean and Caribbean)

5. effective management of cultural heritage (all basins)

6. aging population (all basins)

From a client’s perspective there is a growing consumer population concerned about the ethical

labour conditions in the places they are visiting (ILO, 2010b). On the other hand, Rheem argues that

less than a third of American travellers indicate a willingness to pay some sort of premium for

“green” travel, higher prices (cost premium) being seen as a demand barrier for 67 per cent of

respondents (Rheem, (2009). Therefore, visitors attitudes and perceptions from different countries

will affect the visiting countries in different ways, for instance if in the Caribbean the main visitors

are from the United States of America there will be less incentive to develop a “green” travel

approach, whereas in Europe it might be the opposite case.

8.4.2. Economic Climate for Operations

The cruising industry generates business opportunities, but for coastal regions it is not always easy

to capture economic benefits generated by cruise tourism, while pressures to invest in port

infrastructures and to preserve the environment are increasing.

These problems can be tackled and the EU has invested in two projects to address these specific

issues the EU developed :

1. The SubArcheo project to facilitate the re-skilling of fishermen by developing new distance-

learning methodologies and materials for the training of Underwater Archaeologists and

Guides in coastal areas around the Mediterranean.



2. The Europe-wide online platform TourismLink connecting small businesses with travel

agents and tour operators

The maximum monetary value of ecosystem services for tourism, per hectare per year, has been

estimated for coastal systems (US$41,416), coastal wetlands (US$2,904), inland wetlands

(US$3,700), rivers and lakes (US$2,733) and tropical forests (US$1,426).

(Source: EC, 2014a).

8.4.3. Contribution to GVA In Europe tourism is the biggest maritime sector in terms of gross value added.

A critical challenge facing mature tourism destinations worldwide is how to maximize the economic

impact of tourism spending (Alegre and Cladera, 2006; Kozak and Martin, 2012).

Many mature Caribbean and Mediterranean ‘sun and sand’ holiday destination like Malta, southern

Spain and the Balearic Islands, Greek islands and more recently Turkey, are following the well-

documented path towards greater product diversification in an attempt to target the most

profitable visitors (Bramwell, 2004; Kozak and Martin 2012).

Knowing this need for product diversification The European Union is put in place several funding

schemes that should contribute to GVA :

The European Structural and Investment Funds can co-finance sustainable tourism

investments linked to ICT, entrepreneurship, SME’s competitiveness, energy efficiency,

employment and labour mobility, etc., and can promote the exchange of good practice,

transnational networks and clustering

Horizon 2020 is the financial instrument for the EU’s research and innovation strategy, with

Blue Growth as one of its focus areas. The COSME framework programme aims to enhance

SME competitiveness, increase tourism demand, diversify offer and products, and enhance

quality, sustainability, accessibility, skills and innovation.

The Creative Europe programme supports synergies between cultural and nature tourism,

including coastal and maritime heritage.

The Erasmus+ programme helps in terms of employability, new sector curricula and

innovative forms of vocational teaching and training.

The LIFE+ programme can co-finance innovative projects affecting coastal and maritime

tourism and resource efficiency. The Proposal for the 7th EU Environment Action

Programme is also linked to coastal and maritime tourism. In addition, the European

Investment Bank provides SMEs with financing for investments in tourism and/or in

convergence regions.



8.4.4. Revenues Coastal and maritime tourism is the second largest maritime activity in Europe generating a total of

€ 183 billion in gross value added and representing over one third of the maritime economy. To see

a description per basin please see summary Table 8.8.

The tourism industries in the Baltic region accounts for between 1.8 percent (Sweden) and 3.2

percent (Estonia) of the total employment in the countries.

Figure 8.1. The Blue economy in the EU, unit thousand euros (Source: EC, 2014b)

Tourism has also established itself as an essential activity for many Caribbean economies; its

earnings can easily make up more than half the country’s GNP:

Progress has been significant in the newer destinations such as Cuba (1,915 million US dollars in

2005 compared to 243 in 1990) and the Dominican Republic (from 900 million in 1990 to 3,180 in

2004), and the impact has been considerable on the more disadvantaged economies such as Panama

(685 million in 2004), Nicaragua (187 million in 2004 compared to 129 in 2000) and Honduras (29

million in 1990, 260 in 2000 and 396 in 2004).

Figure 8.2. Contribution to national GNP of the Tourism industry in selected Caribbean countries



8.4.5. Wage costs Coastal and maritime tourism is the largest maritime activity in Europe and employs almost 2 million

people. To see a description per basin please see summary Table 8.8.

Figure 8.3.The Blue economy in the EU, unit thousand jobs (Source: EC, 2014b).

8.4.6. Infrastructure and support service requirements Traditional mass tourism such as “sun-and-sand” resorts has reached a steady growth stage. In

contrast, ecotourism, nature, heritage, cultural and “soft adventure” tourism, as well as sub-sectors

such as rural and community tourism are taking the lead in tourism markets and are predicted to

grow most rapidly over the next two decades. It is estimated that global spending on ecotourism is

increasing by 20 per cent a year, about six times the industry-wide rate of growth. Nature-based

tourism is an important economic component of the entire tourism market (TEEB, 2009).

Also, a research report conducted by SRI International for the Global Spa & Wellness Summit (GSWS)

found that wellness tourism represents a US$439 billion market, equivalent to 14 % of world tourism

expenditures. Wellness tourism category will grow 9% annually through 2017, 50 % faster than

“regular” tourism.

Considering these 2 areas it can be foreseen that the following infrastructures and areas will be

required:

sustainable ports (desalination treatment, renewable energy usage, pollution containment

or prevention)

sustainable design of hotels and lodges (water treatment, using renewable energies, eco-

friendly materials, energy efficient, aesthetically balanced with the natural environment)

biotechnological developments to produce cosmetics and smart foods



8.4.7. Cluster and “triple helix” The EU through its funding programs has invested in creating links between the different states, the

private sector and universities, also known as the Triple Helix.

The European Network of Maritime Clusters is a confederation of Clusters or equivalent structures.

It has to be understood as a best practices dissemination and exchange platform through the

website, informal talks and an annual summit during which each country gives a brief presentation

of the economic situation of its maritime sector and the recent actions of its national organization.

The aim is to establish a framework for future common targeted actions.

BioMarine© is the only international investment platform dedicated marine bio resources. It brings

together 300 Executives and CEOs from marine ingredients, marine cosmetics, marine

nutraceuticals, aquaculture, aquafeed, marine bio energy, pharmaceuticals and clean tech. It is not

only the place of meetings and exchanges for professionals in our industry, but above all it is the

strategic centre of action and initiatives for key stakeholders in the marine bio-resources sectors.

Finance, research and industry have learned to use the platform to diversify their cross-sectorial

knowledge, strengthen their existing partnerships and build new opportunities.

8.4.8. Export potential Visitor exports are a key component of the direct contribution of Travel & Tourism.

In the Caribbean by 2024, international tourist arrivals are forecast to total 30,114,000,

generating expenditure of USD38.6bn, an increase of 3.6% pa.

In the EU by 2024 visitor exports are expected to rise 3.3 % pa to USD 626.3 bn.

In the Mediterranean by 2024 visitor exports are expected to rise by 3.2% pa to USD413.5bn

in 2024.

Table 8.5. Visitor exports within the Mediterranean, Caribbean and the EU

Visitor Exports

2013 USD bn

Visitor Exports 2014 %

Growth

Visitor Exports

Contribution to Exports 2014-2024% growth pa

Mediterranean 286.8 5.6 3.2

Caribbean 26.2 5.5 3.6

European Union 428.7 4.0 3.3

8.4.9. Public Policy Regulatory Framework

8.4.9.1 European Union The ratification and implementation of the Treaty of Lisbon has brought about an increased role for

the European Commission within the area of tourism.

Stakeholders have 2 main visions of the EU regulations and Legislations:



1. Positive

2. Negative

For a full description of each directive and legislation burden and impacts please check Annex 8.1.

Table 8.6. The positives of the EU Directives and Legislation. 1CALYPSO project facilitating transnational low season exchanges in Europe for certain target groups (such as seniors, young people, families with economic difficulties and persons with reduced mobility). 2Roaming charges for mobile phones and compensation payments in the event of denied boarding, cancellation and long delay of flights, etc.

Tourists Welfare Strategies for seasonality

Reducing uneven regional development

Ongoing work

Timeshare Directive CALYPSO 1 Development of regional airports

Roaming charges for mobile phones 2

European Tourism Quality Principles 2014

Baltic Region Strategy Services Directive.

Consumer Rights Directive Danube Region Strategy VAT systems implementation

Package Travel Directive

Regulation (EC) No 810/2009 on visa policy

Enforcement activities on airlines’ sales

Regulations on air passenger travel rights

Table 8.7. The negatives of the EU Directives and Legislation

EU/National Regulation burden on business

Differences in Implementation of EU legislation

Differences in Quality Labelling and Standards

Obstacles for non-EU Inbound Tourists

Emission Trading Scheme

VAT Directive Common regulatory framework impractical

To obtain visas is time consuming

Working Time Directive

Tour Operators Margin Scheme

Costly to introduce Schengen visa is expensive

Services Directive No independent controlling body

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 652629

Table 8.8. Summary of working environment North Atlantic Caribbean Baltic Mediterranean

Employment and

Skills Social trends Stable Stable Highly variable due to

international policy climate Highly variable due to international policy climate

Skills Need to re-skill for a new digital world, the eco-tourism and wellness

No skills shortage BUT re-skilling needed

Skill shortage& Re-skilling needed Need to re-skill for a new digital world, the eco-tourism and wellness

Migration Dependent on international policy & economic situation

Dependent on international policy & economic situation

Highly unstable and dependent on international policy & economic situation

Potential negative publicity from African migrants and refugees from the middle East (Syria)

Highly unstable and dependent on international policy and economy

Public sector Highly qualified Highly qualified Highly qualified Highly qualified

Economic Climate

for operations Contributions to GVA Product diversification

subsidized by the EU ? Some degree of subsidisation but

less than in NA & Med Product diversification subsidized by the EU

Revenues

Wage costs

Infrastructure and support services requirements

Ports Ports Ports Ports

Waste water management Waste water management Waste water management Waste water

management

Ecotourism & Wellness




Alternative Sustainable & Ethical Travel




Cluster and triple helix

Public Policy Regulatory framework

Baltic Region Strategy

South Baltic Programme 2014 – 2020

EU migration policy



8.4.9.2 National, EU and Global policy review EU Policies which are relevant to or have an impact on tourism fall into the following categories:

1. Agriculture and rural development; 2. Development and cooperation.

3. Climate change; 4. Internal market and services;

5. Competition; 6. Justice;

7. Education and culture; 8. Maritime affairs and fisheries;

9. Employment, social affairs and inclusion; 10. Mobility and transport;

11. Energy; 12. Regional policy;

13. Enlargement; 14. Research and innovation;

15. Environment; 16. Taxation;

17. Health and consumer protection; 18. Trade; and

19. Home affairs; 20. Communications Networks, Content and

Technology;

The Natura 2000 is an EU-wide network of nature protection areas, established under the 1992

Habitats Directive, aimed at ensuring the long-term survival of Europe’s most valuable and

threatened species and habitats, including in the marine environment. Successful management of

the sites allows their enjoyment as part of holiday experiences and their conservation for all future

users.

Table 8.10. Advancing tourism: world policy, programmes, codes and guidelines

United Nations

Education

&Trainning

UNWTO Capacity programme

UNWTO.TedQual programme

Climate Change

The Davos Declaration puts tourism in the forefront of the global response to climate change

THROUGH:

The Davos Process on Tourism and Climate Change

Global Sustainable Tourism Criteria

Sustainability

UNWTO Global Code of Ethics for Tourism

UNWTO Technical Cooperation Programme

Sustainable Tourism – Eliminating Poverty Initiative (ST-EP)

Tourism and Poverty Alleviation: Recommendations for Action

Global Sustainable Tourism Criteria

Tourism, Microfinance and Poverty Alleviation

UNWTO Sustainable Development of Tourism Programme

Lusaka Declaration on Sustainable Tourism Development, Climate Change and Peace

Kuala Lumpur Declaration on Climate Change and Tourism

Legazpi Declaration on Tourism's Response to Climate Change



Djerba Declaration

Biodiversity

UNWTO Recommendations on Tourism and Biodiversity.

Specialized Unit on Tourism and Biodiversity

UNWTO Consulting Unit on Tourism and Biodiversity

Practical Guide for the Development of Biodiversity-Based Tourism Products

Ethics

World Committee on

Tourism Ethics

Global Code of Ethics for Tourism

UNWTO Ethics & Social Dimensions of Tourism Programme

Protect Children from Exploitation in Tourism and Travel

The Responsible Tourist and Traveller

Green Economy UNEP – Green Economy Initiative

UNWTO – Journey to Rio+20

8.5. Innovation Innovation is following the general trends and tendencies and is developing new products in the

following areas:

Online tools (mobile applications; see annex 3)

Information technology (wearable devices)

Cultural tourism (festivals, outdoor installations in heritage sites profiting from technology

such as light shows)

Wellness tourism (sport industry developing innovative ways of exercising, sleep cycles

controlled by light technology, for more examples see annex 3)

Eco tourism (development of natural trails, marine reserves, bird watching, dolphin

watching, whale watching).

8.6. Investment Mediterranean

Travel & Tourism is expected rise by 3.8% pa over the next ten years to USD139.2bn in 2024.

Travel & Tourism’s share of total national investment will rise from 6.0% in 2014 to 6.8% in

2024.



EU

Travel & Tourism is expected to rise by 3.2% pa over the next ten years to USD194.1bn in

2024.

Travel & Tourism’s share of total national investment will rise from 4.8% in 2014 to 5.1% in

2024.

Caribbean

Travel & Tourism is expected rise by 3.5% pa over the next ten years to USD8.9bn in 2024.

Travel & Tourism’s share of total national investment will rise from 11.6% in 2014 to 12.5%

in 2024.

Table 8.11. Investments in the Mediterranean, Caribbean and the EU.

Capital investment

2013 USD bn

Travel & Tourism

investment 2014 %

Growth

Travel & Tourism Contribution to Capital

Investment 2014-2024% growth pa

Mediterranean 93.3 2.3 6.8

Caribbean 6.0 5.5 3.5

European Union 135.8 4.1 3.2

8.7. Uncertainties and concluding remarks Coastal and maritime tourism is an important sector worldwide. In general there are no specific

uncertainties within the tourism sector; it is a consolidated, mature sector, well-regulated and

innovative:

In Europe is the biggest maritime sector in terms of gross value added and employment and

is expected to grow by 2-3% by 2020.

In 2012, Cruise tourism alone represented 330,000 jobs and a direct turnover of €15.5 billion

and is expected to grow.

As a consequence tourism has been a major contributor to the European economic recovery.

Investment is expected to rise in the next 10 years in all sea basins



However, general uncertainties apply to the coastal tourism sector as well as the other sectors

within the blue economy:

Fluctuation in fossil fuel prices

War conflicts

Migration policy

Food security

Disease outbreaks

Supply chain dependencies

Climate change and extreme weather events, including:

Ocean level rise

Tsunamis

Hurricanes

Heat waves

Flooding

Storms

The combination of different blue economy sectors and tourism is already a reality and many more

are projected to happen in the very near future (see annex 2).

Below are well established joint combinations which already taking place between tourism and

other sectors of the blue economy (more info in annex 2):

1. Fisheries

2. Aquaculture

3. Off shore wind farming

It is vital that we plan for new approaches to tourism that are complementary and original, better

integrated into the host societies and their environment, and that are able to deliver alternatives to



the classic resort-based mass tourism as well as taking on board the concept of sustainable

development.

Politicians, policy makers, CEOs of other industries not directly related to tourism but also

researchers often underestimate the importance and impact of tourism on the economy.

Previous reports from other EU projects (e.g. MARINA), also show a lack of vision or deeper

understanding of the tourism sector and its importance as a driver for other sectors within the blue

economy.

Historically, tourism has been already driving important sectors of the economy and has contributed

to prevent the loss of traditional production practices (e.g. endemic strains of wines and artisanal

fisheries practices). Tourism and its humanitarian nature – direct relationship with people from

different backgrounds; is also an education tool that can connect people from different countries,

re-connect people to nature and the local environment and introduce new technologies (renewable

energies such as the offshore wind park visitor centres).



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Ellis, S., (2011). The International Medical Travel Journal (IMTJ). Are wellness and medical tourism industries two different topics?

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Annex 8.1 - Burdens and impacts of the EU directive and legislation Burden on businesses from increased EU/National Regulation or Outdated EU legislation

Emission Trading Scheme (ETS)

o airline sub-sector considers that this scheme results in additional costs for European

airlines compared to non-EU airlines, with larger impacts for the low-cost carriers

segment

Working Time Directive

o Accommodation industry stakeholders suggested that the tourism sector requires

flexible working time arrangements

Impacts on Competitiveness from Differences in Implementation of Relevant EU Legislation

VAT Directive each Member State can decide the level of taxation autonomously (within the

limits set by the EU)

The Tour Operators Margin Scheme (TOMS) aimed to simplify tax payments but general

rules have been interpreted differently in different Member States, leading to very different

VAT rates being applied to tourism products across EU. This leads to a competitive

disadvantage for tour operators in some Member States.

Services Directive, licences to operate were required for travel agents in 15

Member States, but not in the other 12 this could lead to additional costs for travel

agents in some Member States, putting them at a competitive disadvantage with travel

agents in Member States where licences to operate are not required.

Impacts on Competitiveness from Differences in Quality Labelling and Standards

very difficult to find common national regulatory frameworks across the EU-27 which makes

proposals for European standards impractical.

standards are very costly to introduce especially for SMEs

lack of a European independent controlling body to check whether companies that carry a

label fulfil all requirements was seen as an obstacle to the credibility of the schemes.

Travel-related Obstacles for non-EU Inbound Tourists

lengthy procedures to obtain visas in various third countries, especially

emerging ones showing high growth rates and increased potential as tourist



generating markets, such as Russia, India and China; and

the high costs of a Schengen visa for third country visitors.



Annex 8.2. Examples of well-established combinations between tourism and

other sectors of the blue economy In the past 2 decades tourism has been driving the primary sector (agriculture, fisheries, and more

recently aquaculture).

The wine industry is a well-known primary sector that has benefitted from tourism and in some

countries has even contributed to its expansion (e.g. Chile, New Zealand, Portugal).

Soon after the fisheries industries followed this trend and today there are many examples of

successful companies combining seafood production – aquaculture and agro food.

Definition: Recreational fishing, also called sport fishing, is fishing for pleasure or competition.

Recreational fishing is a multi-billion dollar industry. In the USA, about 12 million recreational

saltwater fishers generate $30 billion in economic impact and support 350,000 jobs.

Companies benefitting from tourism and fisheries include:

manufactures and retailing of fishing tackle

builder companies of recreational fishing boats

companies providing fishing boats for charter and guided fishing trips

local heritage centres (museums, historic houses)

local restaurants

local hotels, Inns (accommodation providers)

Companies benefiting from tourism and aquaculture include:

manufacturers and retailing of aquaculture apparel (cages, ropes, pumps etc.)

builder companies of vessels adapted for aquaculture operations (e.g. mussel

harvest)

aquaculture farms providing touristic services (events such as conference venues,

weddings).

local heritage centres (museums, historic houses)

local restaurants

local hotels, Inns (accommodation providers)

Three examples of aquaculture farms, and joint cooperation’s between aquaculture, fisheries and

tourism already providing touristic services:

Scotland: Lock Fyne oysters, restaurant and oyster bar (http://www.lochfyne.com/)

http://www.lochfyne.com/



Indonesia: Visit a Seaweed Farm on a Serene Island near Bali

(https://www.govoyagin.com/activities/visit-a-seaweed-farm-on-a-serene-island-near-

bali/1127)

Belgium: Maritime Oostend - a joint local cooperation of fishing, farming and

tourism enterprises dedicated to attract visitors to Oostend, Belgium

(http://translate.google.pt/translate?hl=en&sl=nl&u=http://www.ostendaise.be/&prev=sear

ch)

Offshore wind farms and tourism In the Baltic and North Sea regions, tourism services and offshore wind energy have already been

successfully combined to integrate offshore wind energy into regional development concepts.

Thisinclude different type of touristic services:

Boat tours

Sightseeing flights

Routes for motor and sailing boats

Offshore restaurants and merchandising products

Routes for motor and sailing boats

Combined offshore and onshore wind energy tour

Viewing platform with telescopes

Offshore information centre

(Source: Business LF (2013); Stiftung Offshore-Windenergie (2013))

https://www.govoyagin.com/activities/visit-a-seaweed-farm-on-a-serene-island-near-bali/1127

https://www.govoyagin.com/activities/visit-a-seaweed-farm-on-a-serene-island-near-bali/1127

http://translate.google.pt/translate?hl=en&sl=nl&u=http://www.ostendaise.be/&prev=search

http://translate.google.pt/translate?hl=en&sl=nl&u=http://www.ostendaise.be/&prev=search



Annex 8.3 – Innovation Technology and product innovation are primary growth drivers.

Mobile phones and tablets are increasingly being used by tourists to search for and book

travel with increasing numbers of mobile application downloads (Expedia: 90m downloads in

1 year; annual report, 2013)

New Channel Penetration is primary growth driver. Technological innovations and

developments are creating new opportunities including travel bookings made through

mobile devices.

Companies need to build flexible technological architecture to reach consumers on all

screens

Impact of wearable technologies and connected cars (ETOA)

Wearable technologies reach connected consumers for alerts and customised service

Expedia working on the development of software for Google Glass, ahead of its release

Connected cars allow on-the-go consumers find information, book hotels and other

services

Peer-to-peer and the sharing economy (ETOA)

Thanks to social media, travellers have been sharing their reviews and other content for

years

Travel services is the second stage in the peer-to-peer and sharing trend

Consumers are now active in providing holiday apartments, cars, meals and tours

Personalisation through Big Data (ETOA)

Travellers expect a more unique and tailored consumer experience

Big data helps companies to present customers with targeted options

Kayak makes use of big data to build search results and to predict future flight prices

Rising demand for real-time services (ETOA)

Always connected consumers expect to receive real-time services from travel companies

Companies need to provide personalised alerts and information

Customer service needs to be available 24/7 and easy to access via mobile devices

Wellness design

Hypoallergenic environments

Cutting-edge sleep

Productivity-enhancing lighting (sleep/wake cycle)

Anti-bacterial surface

Remote patient monitoring

Floatation pools - “suspending gravity” or “floating” trend is rising up.