Committee Reports > List of Committees > Joint > 1985 > Committee on Small Businesses > Report No. 03 - Tourism, Catering, and Leisure

Appendix 2

Tourism Policy in Selected European Countries

This Appendix outlines Tourism Policy in a selection of seven European countries, both large and small, EEC and non-EEC.

1. Austria

The National Tourist Board in Vienna which is funded by the Federal government and the Chamber of Commerce is involved in the broad outlines of Tourism policy and it also runs tourist offices abroad. Each of the provincial governments e.g. Salzburg or the Tyrol - has a main tourist office of its own which solely promotes Tourism in that area. Since Tourism is a major industry in Austria these offices are highly developed and very autonomous e.g. the Tyrol and Salzburg regularly attend travel exhibitions abroad promoting Tourism in their province rather than in Austria as a whole. At the city, village or resort level, the local tourist office is usually integrated into the local travel agency. This can cause problems in relation to marketing as some larger resorts can be very competitive to the detriment of the smaller resort areas.

There is an allocation of S. 8.2bn (IR£370m.) for the Austrian Tourism Promotion Programme for the period 1980/89.

The basic objectives are to:

attract more Austrian tourists;

promote Tourism in remoter areas;

provide more support for tourist organisations;

improve the supply of all-weather catering, accommodation and social facilities e.g. congress centres in hotels;

improve presentation of cultural heritage;

find ways of prolonging the summer season.

The Austrian Tourist Board is also involved in providing special grants to Hotels to improve the quality rather than the capacity of their accommodation. The provincial Governments as well as municipal authorities offer grants and incentives to develop facilities such as hiking trails and car parks. In the majority of cases, at both the Federal and provincial level, projects are funded in conjunction with private investment.

An important aspect of Tourism in Austria is the fact that over 55% of visitors are German therefore the emphasis in marketing and promotion in relation to this group is very important and very extensive. Besides Germany there are 87 trade offices abroad which promote Austrian Tourism.

2. Denmark

Tourism policy in Denmark is implemented through the Danish Tourist Board, an independent organisation which is almost 100% funded through the Ministry of Industry. The aim of the D.T.B. is to “increase Tourism into the Danish Kingdom through co-operation among Danish tourist organisations, trade and industry, cultural institutions and public authorities”. Co-ordination between the D.T.B. and the regional areas is provided through the Tourist Council consisting of representatives from the tourist trade, tourist associations, counties and municipalities, together with the Ministers of Industry and Finance.

The Board’s long and medium term plans include:

(1)more flexibility and more effectiveness in the field of information and booking access, including the use of new technology and the strengthening of the regional organisation within the country,

(2)development of more specialist holiday products e.g. Danish Castles and Manors,

(3)continuous co-ordination of other sectors of the Economy which affect Tourism e.g. physical planning,

(4)concentration on changing the image of Denmark as an expensive holiday destination,

(5)intensification of marketing efforts in “near markets” namely Scandinavia, Germany, U.K. and the Netherlands.

Some innovative tourist programmes in Denmark are for example DANMEAU - a system whereby more than 700 restaurants, hotels and inns throughout Denmark will serve a two-course meal at a fixed price. A similar arrangement exists for cafeterias and in both cases a special symbol must be displayed by participating businesses. Also there is the “Copenhagen Card” which is available for 1, 2 or 3 days. It provides for free travel by bus and rail in the whole metropolitan region of Copenhagen and also included is free admission to many parks, galleries, and museums.

The Danish Tourist Board is represented abroad by 16 offices in various countries. These offices are funded by the Danish Tourist Board which also governs their operation.

3. Federal Republic of Germany

The German National Tourist Office, a Federal Government agency promotes tourism at home and abroad at National level. However responsibility for Tourism is largely vested in the State (Lander) governments. Even still, it must be noted that the Federal and State governments rely to a very large extent on private Tourism organisations to implement Tourism support measures. There is also a great degree of difference in the emphasis on the various State governments place on Tourism e.g. Tourism is a very important industry in Bavaria where it is highly developed, unlike North Rhine-Westphalia which includes the main industrial centres of Germany.

While Federal and State governments encourage the development of a tourist infrastructure, there is no specific Tourism development programme. Instead, support for Tourism is generally incorporated into regional policies for areas designated by law for development purposes. In addition to tourist infrastructure public assistance of up to 15% of private investment may be given for the extension and improvement of hotels and catering establishments.

Although tourist marketing is left mainly to the travel trade itself the Federal Government helps the Industry by paying in part for consultancy services and has also commissioned a study into the major changes that will be brought about by the introduction of computers to the travel trade.

A major problem for the German tourist industry is that a majority of Germans take their holidays abroad.

4. Italy

Since 1909 there has been a National Tourist Body in Italy with two major functions (1) to promote overseas tourists to Italy and (2) to co-ordinate Tourism policy within Italy. The Minister of Tourism has overall responsibility for Tourism but each of the 20 semi-autonomous regions has its own Minister for Tourism who has responsibility for implementing Tourism policy in his own Region. Co-ordination between the central government and the regions is provided through an Administrative Council consisting of approximately 40 representatives - Minister of Tourism, 5/6 Regional Ministers, Tourist Associations e.g. National Parks, Hotel Association and a number of Tourism experts who hold honorary positions.

The internal structure of the regions consists of county tourist associations and town tourist boards. Each of these organisations, in co-operation with the regions, market and promote Tourism in Italy and abroad through the National Tourist Board offices. Every town or resort must be designated as a “tourist area” by the Ministry of Tourism in Rome before it can begin to promote itself as a tourist attraction. This also impinges on the tourist infrastructure of the area e.g. one may not build a hotel in a place that is not a “tourist area” and likewise one may not extend a hotel or build a new one unless there is proof of demand. Grants for the development of tourist facilities are offered at both national and regional level.

Since 1981 a series of important legislative measures have been taken in order to encourage the promotion of Italian Tourism abroad. In the area of marketing an attempt has been made to give greater attention to the considerable architectural, folklore and cultural heritage Italy possesses in an effort to avoid Italy being seen as merely a “sun and sea” holiday location. This marketing strategy is carried out by the 27 offices of the Italian National Board located throughout the world. The Board also has 37 Correspondents Offices in which Alitalia (Italian National Airlines) or other agencies assist the Board in promoting Italian Tourism. These offices are funded directly from the central government.

A major facility these offices provide is the opportunity to buy petrol coupons which the touristscan use when they arrive in Italy. The coupons are a “package” in the sense that they also include motorway toll reductions and a breakdown service. The petrol coupon idea has been shown to be very popular among foreign tourists to Italy.

5. Sweden

Tourism is of growing importance in the Swedish economy helped by the establishment of the Swedish tourist Board in 1976. The founders of the Swedish Tourist Board are the Government, the Swedish Association of Local Authorities, and the Association of Swedish County Councils. The S.T.B. has a board of directors appointed by the Government - although it is not a Government agency. Like the Danish Tourist Board which has many similarities with the S.T.B. it is funded 100% by the Government but in this case via the Ministry of Agriculture. The S.T.B. is responsible for developing and marketing both domestic and foreign Tourism. It maintains nine offices abroad which are located in Sweden’s most important foreign markets.

The main objectives of the Swedish Government’s Tourism policy are:

(1)to provide further improved services and recreational amenities for an increased number of tourists in Sweden,

(2)to encourage the development of a competitive Tourism industry, adjusting its produce to the demand in domestic and foreign markets.

(3)to make these products more readily available through the use of computers.

Swedish local authorities, by law, have extensive powers in the field of Tourism, and a close co-operation exists between local/ regional bodies and the Swedish Tourist Board especially in the areas of product development and marketing. Therefore the Swedish Tourist Board is in many ways the co-ordinator of Tourism policy between the Government and the regions.

Government grants are available for projects in the fields of Tourism and recreation to improve existing facilities and to encourage investment in new promising tourist areas. Projects eligible include - hotels, youth hostels, camping sites and hiking trails. Local authorities also provide public funds for investment in projects connected with tourism and recreation. The development of tourist facilities is largely the responsibility of local and regional agencies.

6. Switzerland

Under a Federal decree of 21st September 1939 a public body called the “Swiss Office of Tourism Promotion” was established - in 1955 its name was changed to the Swiss National Tourist Office. It was subsequently specified by statute that the SNTO “shall organise and carry out Tourism publicity for Switzerland as a whole, both at home and abroad, and shall work closely together with the regional, cantonal and local tourist offices”. The SNTO is provided with a budget of 13.5m. Sw.Fr. each year and in its effort to promote the common interests of approximately 200 local tourist offices it has divided Switzerland into 11 tourist regions. The SNTO is funded via the tourist section “Service de Tourisme” of the Swiss Transport Ministry.

In Switzerland the organisation of the Tourism sector is very decentralised because of the fact that the Federal Constitution contains no provisions relating to tourism, the Federal Government therefore has no legislative power in this field. The “Service” was created in an effort to co-ordinate the Tourism activities of SNTO, cantonal authorities and specialised bodies.

There is no detailed plan whereby the Federal Government provides grants for the development of tourist facilities. Grant schemes are incorporated instead into the major cantonal plans or are part of the Federal Government’s regional development programmes. Since a majority of regional development programmes deal with mountainous areas where Tourism is a very important industry, each programme devotes a number of sections to investment in tourist facilities. Also the Federal Government through the Swiss Hotel Financing Association (SCH) guarantees and make loans for renovations and extensions to existing hotels or for the construction of new hotels. In 1982 SCH granted 7.3m. Sw.Fr. in loans and also guaranteed loans amounting to 21.6m. Sw. Fr. for the modernisation of hotels.

The SNTO finances 22 offices located throughout the world whose function is to attract tourists to Switzerland.

7. United Kingdom

Responsibility for tourism matters in the United Kingdom is shared between the Secretary of State for Trade and the Secretaries for Scotland, Wales and Northern Ireland. It is recognised however, that other areas of Government also have an influence on tourism development. Under the Development of Tourism Act, 1969 four co-equal tourist organisations were established: the British Tourist Authority (BTA), the English Tourist Board, the Scottish Tourist Board and the Welsh Tourist Board. Each is financed mainly be a direct grant from the Government although each is an independent statutory body. The British Tourist Authority has specific responsibility for promoting tourism to Britain from overseas through its world-wide network of offices. The BTA may also carry out promotion overseas on behalf of Northern Ireland, the Channel Islands and the Isle of Man.

The principal responsibilities of the English Tourist Board, as set out in the 1969 Act, are to encourage people to visit England especially those from the U.K. itself and also to stimulate the provision and improvement of tourism amenities and facilities. Both the Scottish/Welsh Tourist Boards have identical functions in Scotland and Wales respectively. The English Tourist Board stimulates private investment in tourist development projects and it also has funds of its own to give to such projects. In its developmental role the ETB works very closely with the 12 Regional Boards in England which provide an invaluable link with the local authorities and are the initial point of contact for individual developers. The Board’s financial assistance usually takes the form of grants and they are given to projects in 7 areas - Hotels, Caravan/Campsites, Farm & Youth Accommodation Holiday Centres and Tourist Information. The grant is usually only a proportion of the capital cost (approx; 15-20%) and is often paid in stages. For projects with a capital cost of between £5,000-£100,000 a simple procedure has been established called “Streamlined Aid” which consists of a one-shot payment, the payment not to exceed 25% of the capital cost.

The Scottish Tourist Board likewise is involved in the development of tourist facilities and is helped by the network of 32 Area Tourist Boards and the Scottish Confederation of Tourism (SCOT) which consists of representatives from the A.T.B.’s and various tourist associations throughout Scotland and functions as a coordinating committee. Like the E.T.B. the Scottish board provides grants to tourist developers and it also has a “Streamlined” procedure but it is only for projects with a capital cost of up to £20,000. In 1983 a wide variety of projects were assisted ranging from the signposting of Tourist Information Centres, to Hotel refurbishment and the establishment of important heritage projects. The Welsh Tourist Board administers two grant schemes which are very similar to those of the ETB/STB except that in Wales a heavier emphasis is placed on the employment opportunities of each project.

The Development of Tourism Act 1969 is at present under comprehensive review, a major factor being that in 1981 the travel account of the balance of payments moved into deficit for the first time in 14 years.