Socio-economic trends and EU policy in offshore economy: TOURISM

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
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
Visitor Exports
2013 USD 428.6 bn
5.5 % of total
USD 26.3 bn
17.6 % of total
Investment
2013 USD 135.8 bn
4.7 % of total
USD 6 bn
11.3 % 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 Ecotourism & Wellness Ecotourism & Wellness Ecotourism & Wellness
Alternative Sustainable &
Ethical Travel
Alternative Sustainable &
Ethical Travel
Alternative Sustainable & Ethical
Travel
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).

8.8. References
Alegre, J., & Cladera, M., (2006). Repeat visitation in mature sun and sand holiday destinations.
Journal of Travel Research, 44, 288-297.
ABTA, (2014). Travel Trends Report 2014.
ABTA, (2015). Travel Trends Report 2015.
Bramwell, B., (2004). Coastal Mass Tourism: Diversification and Sustainable Development in
Southern Europe. Channel View Publications, 2004 - Business & Economics - 357 pages
Business LF, (2013). Offshore Wind Farms and Tourism Potentials in Guldborgsund Municipality.
(http://www.southbaltic-offshore.eu/reports-
studies/img/OFFSHORE_WIND_FARMS_AND_TOURISM.pdf)
CLIA, (2014). Europe Economic Contribution Report. Contribution of Cruise Tourism to the
Economies of Europe 2015 Edition.
CLIA, (2013). Global Economic Impact Study. Business Research and Economic Advisors. The Global
Economic Contribution of Cruise Tourism 2013.
CDI, (2013). DI Analysis: Tourism in the Baltic Sea Region. Confederation of Danish Industry. 26 pp.
(http://di.dk/SiteCollectionDocuments/Shop/Tourism%20in%20the%20Baltic%20Sea%20Regi
on_Web.pdf?productid=10345&downloadType=Produkt).
EC, (2014). A European Strategy for more Growth and Jobs in Coastal and Maritime Tourism.
European Commission, Brussels, 8 pp.
(http://ec.europa.eu/maritimeaffairs/documentation/publications/documents/coastal-and-
maritime-tourism_en.pdf)
EC, (2014b). Blue Growth infography.
http://ec.europa.eu/maritimeaffairs/policy/blue_growth/infographics/#_Adriatic_and_Ionian
_Seas)
Ellis, S., (2011). The International Medical Travel Journal (IMTJ). Are wellness and medical tourism
industries two different topics?
ETOA, (2010). Groups mean Business. A Charter For Successful Tourism. European tourism
association, London. 4 pp.
Euromonitor International, (2013). World Travel Market Global Trends Report 2013. London, 54 pp.
(http://www.etoa.org/docs/default-source/Reports/other-reports/2013-world-travel-market-
global-trends-report-by-euromonitor-international.jpg?sfvrsn=2)
European monitoring International, (2014). THE NEW ONLINE TRAVEL CONSUMER. 13 FEBRUARY
2014, 51 pp.
Expedia, (2013). Annual Report 2013.
(http://files.shareholder.com/downloads/EXPE/65641886x0x750253/48AF365A-F894-4E9C-
8F4A-8AB11FEE8D2A/EXPE_2013_Annual_Report.PDF)
GSWS, (2014). Top 10 Global Spa and Wellness Trends Forecast-2014 trends report. Spafinder
Wellness 365. 75 pp. (http://www.spafinder.co.uk/newsletter/trends/2014/2014-trends-
report.pdf).
ILO, (2010). International Labour Office. Global Employment Trends, January 2010
Kozak, M., & Martin, D., (2012). Tourism life cycle and sustainability analysis: Profit-focused
strategies for mature destinations. Tourism Management, 02/2012; 33(1):188–194.
Lafferty, G., van Fossen, A., (2001). Integrating the tourism industry: problems and strategies.
Tourism Management 22(1): 11–19.
Rheem, (2009). Carroll Rheem, PhoCusWright’s. Going Green: The Business Impact of Environmental
Awareness on Travel, February 2009
Stiftung Offshore-Windenergie, (2013). The impact of Offshore Wind Energy on Tourism – Good
Practices and Perspectives for the South Baltic Region. (http://www.offshore-
stiftung.com/60005/Uploaded/Offshore_Stiftung%7C2013_04SBO_SOW_tourism_study_final
_web.pdf)

TEEB, (2009). THE ECONOMICS OF ECOSYSTEMS AND BIODIVERSITY, for Policy Makers. Summary:
Responding to the Value of Nature, November 2009
The Economist, (2014). http://www.economist.com/news/business/21604598-market-booking-
travel-online-rapidly-consolidating-sun-sea-and-surfing
Tremblay, P., (1998). The Economic Organization of Tourism. Annals of Tourism Research 25(4): 837-
859.
The Tourism and Leisure Industry: Shaping the Future, Klaus Weiermair and Christine Mathies.
Haworth Press, 200
TUI Travel, (2014). Annual report and accounts.
http://www.tuitravelplc.com/system/files/uploads/financialdocs/TUI_Travel_PLC_ARA_2014_
single_interactive.pdf
UNWTO, (2015). Over 1.1 billion tourists travelled abroad in 2014. World Tourism Organization,
Press release No 15006. (http://media.unwto.org/press-release/2015-01-27/over-11-billion-
tourists-travelled-abroad-2014) http://media.unwto.org/press-release/2015-01-27/over-11-
billion-tourists-travelled-abroad-2014
Vequist, D. & Valdez, E., (2009), Journal of Commercial Biotechnology, "The Correlation between
Medical Tourism and Biotechnology," Oct., 15 (4), 287–289.
WWTC, (2014a). Travel & Tourism Economic Impact 2014-European Union. World Travel & Tourism
Council, London. 24 pp. (http://www.wttc.org/-
/media/files/reports/economic%20impact%20research/regional%20reports/european_union
2014.pdf).
WWTC, (2014b). Travel & Tourism Economic Impact 2014-Caribbean. World Travel & Tourism
Council, London. 24 pp. (http://www.wttc.org/-
/media/files/reports/economic%20impact%20research/regional%20reports/caribbean2014.p
df).

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/)

 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))

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.

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