Spain and tourism policy
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The document discusses tourism policy and development in Spain. It provides background on international tourism trends reaching 1 billion arrivals in 2012. It then focuses on Spain, noting that tourism receipts were up significantly in 2012, led by emerging markets like China and traditional markets like Germany and the US. The document discusses how tourism has become an important part of Spain's economy and balance of payments, particularly through the "travel" portion of the current account. It also outlines Spain's national tourism organization and how regional policies have evolved to support the tourism sector as an economic development strategy.
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Spain and tourism policy
- 1. The Economics of Tourism Destinations RAN Hekman
- 2. Municipality Súdwest-Fryslân as Touristic investment zone
- 4. Touristic investment zone (PPP) • Collaboration of entrepreneurs of the region/municipality to entice tourists to come there • How?: firstly by providing information about the culture, nature, storytelling (heroes) of the area and secondly provide services like free wifi and ……. • Marketingconcept is the fundament
- 5. Why is the Touristic investment zone important as a regional development plan • Per year 2 million overnight stays • Entails € 180 million • 4000 jobs
- 6. • Welcome to this lecture on the economics of tourism destinations • We are going to focus on Spain
- 7. International tourism reached one billion in 2012 • PR No.: • PR12002 • Madrid • 16 Jan 12 International tourist arrivals grew by over 4% in 2011 to 980 million Europe surpasses the half billion mark in 2011 Despite persistent economic uncertainty, tourist arrivals to Europe reached 503 million in 2011, accounting for 28 million of the 41 million additional international arrivals recorded worldwide. Central and Eastern Europe and Southern Mediterranean destinations (+8% each) experienced the best results. By region, Europe (+6%) was the best performer. Tourism is a sector directly responsible for 5% of the world’s GDP, 6% of total exports and employing one out of every 12 people in advanced and emerging economies.
- 8. International tourism • PR No.: • PR12002 • Madrid • 16 Jan 12 Receipts confirm positive trend in arrivals Among the top ten tourist destinations, receipts were up significantly in Spain (+9%). The top spenders were led by emerging source markets – China (+38%), Russia (+21%), Brazil (+32%) India (+32%) followed by traditional markets - Germany (+4%) USA (+5%)
- 9. Governments urged to facilitate travel UNWTO is urging governments to consider advancing travel facilitation, and make the most of information and communication technologies in improving visa application and processing formalities. “Travel facilitation is closely interlinked with tourism development and can be key in boosting demand. This area is of particular relevance in a moment in which governments are looking to stimulate economic growth but cannot make major use of fiscal incentives or public investment,”
- 10. Definition : Tourism Policy • Tourism policy represents a means by which local, regional, national and supranational institutions and organisations accomplish the adopted goals of tourism development. (Vucetic A., 2009)
- 11. History of Policy development
- 12. History of Policy development • Trend in (developed) countries (1950-1980): organizations/institution in governments were established for the purpose of tourism development. Example: Singapore Tourist Promotion Board (STPB) was established in 1964. • In the mid ’70 ‘s Montenegro formulated a tourism policy which was part of the overall state economic policy. The policy was in general terms and not clearly defined. It represented a small part of the overall economic policy. • Since 1992 there is The Ministry of Tourism of Montenegro National Economic Policy Tourism National Economic Policy Tourism
- 13. Stiff competition now in the global tourism/leisure market • Public tourism/leisure policy – growing importance • Countries have to differentiate • Public tourism/leisure policy cannot be created nor implemented without a team from various fields of expertise
- 14. Balance of Payments of a country • All monetary transactions of a year between the country and the rest of the world • Balance of payments points to a surplus or deficit Spain (Foreign) Money in Money out
- 15. Balance of payments Current Account (-,+) = - Capital Account (+) money in money out money in money out - Merchandise - Travel - Insurance - Investment income - Govt. Transactions - Donations and gifts Deficit or Surplus Deficit or Surplus payments for the country's exports and imports of goods, services, financial capital, and financial transfers the purchase or construction of machinery, buildings or even whole manufacturing plants
- 16. Tourism as a long run economic growth factor: the Spanish case of this tourism led growth hypothesis
- 17. After WW2 • Tourism has grown into a mass (tourist) industry. • The development of mass tourism has created a powerful and influential recreational travel industry • (5-10%) of jobs and receipts, faster growth than the manufacturing (iron/steel) industry
- 18. Domestic tourism vs outbound tourism • Around 75% of tourism is domestic based. • Toffler’s Future Shock (1971) – vacation traveller creating a revolutionary expansion of certain industries where sole output consists not of manufactured products nor services but preprogrammed “experiences” • Tourism is considered an activity essential to the life of nations because of its direct effects on the social cultural, educational and economic sectors of national societies and their international relations. (UN 1981. 5) • All development and planning must be predicated on the understanding of who this person is.
- 19. Current Account (Spain) • Most important items: • Merchandise (costly inputs) • Travel (endowed with natural resources: sandy beaches, pictoresque sites, forests and mountains, sunny climate, cultures and civilisations)
- 20. Economic development : Spain The tourism sector (service) in Spain has 5 comparative advantages over other sectors (agriculture, manufacturing) which benefits the country’s development: • Abundance of resources : Naturals/cultural attractions (supply is endless) • Lower import content : services • Tourism has a high growth rate • Exports in tourism are stable (exports in raw materials are unstable –> world market price) • Labour intensive nature of the sector Given all this it can be said that tourism is the preferred sector for economic development of a country or as a tool for economic development.
- 21. Balance of Payments Spain
- 23. Policy and planning in Spain (tourspain.es) • The Instituto de Turismo de España (TURESPAÑA) has among its functions that of planning, developing and taking the steps necessary for the promotion of Spanish tourism on the international markets, supporting the marketing of the Spanish tourism products abroad and collaborating with the Regional and local authorities and the private sector in programmes related to the promotion and marketing of their products abroad. • Turespaña is a major tool for Spain's tourism policy » Promotion of Tourism Supply » Improve negative effects of competition and sustainability » Development of new tourism products
- 24. Tourism and Regional policies in Spain: an evolution synthesis Community Support Framework Regional Development Plans Regional Restructuring Plans
- 25. Playa de Lloret de Mar
- 26. The policy process 1. Agenda Setting 2. Policy Formulation 5. Policy Evaluation 3. Policy Adoption 4. Policy Implementation Agenda Setting - Public attention focusses on a public problem or issue. Officials’ words and actions help focus attention. Policy Formulation - Policy makers in the legislature and bureaucracy take up the issue. They create legislative , regulatory or programmatic strategies to address the problem. Policy Adoption - Policy makers formally adopt a policy solution, usually in the form of legislation or rules. Policy Implementation - Government agents begin the job of making the policy work by establishing procedures, writing guidance documents. Policy Evaluation - Policy analysts inside and outside government determine whether the policy is addressing the issue and whether implementation is proceeding well. They may recommend revisions in the agenda, in the formulation of policy, or in its implementation.
- 27. Evolution of a tourist area 1. The place gets very few tourists. 2. Someone discovers it, and tells a few other friends how good it is. 3. They start to go to the place as well. 4. Services: shops, cafes, hotels etc. start to open up because people are staying there in enough numbers for local people to earn money. 5. Some local people stop what they were doing before. 1. More people find out about the place. 2. It starts to get mentioned in articles, brochures and tourist guides. 3. This means that even more people visit. 4. More shops and hotels open. 5. The roads to the resort get busier. 1. Everyone now knows about the resort. 2. People move to the resort in search of work. 3. During the tourist season, the place is full of people, and hotels are full. 4. Local people are now mostly employed in tourism rather than the jobs they used to have. 5. Some local people will begin to feel that the tourists are starting to be in ‘control’. 6. Traffic problems start to occur on busy days, with car parks filling up early in the day. 1. The place gets so popular that some people stop going there. They will say “it’s too busy” or “it’s not what it used to be like…” 2. Local people will complain that they are being ignored and that tourists get priority. 3. People start going to other places. 4. Some of the shops and hotels close down. 5. Some people stay away because it is so busy, and look for somewhere ‘quieter’ or ‘prettier’ or ‘more like the real….’ 1. The place starts to get run down. 2. Shops shut down, and charity shops move in. 3. Out of season, many hotels start to be used to house homeless people and people on benefits as a way of making a bit of money. 4. The place begins to get a ‘reputation’…. 5. People stay away 1. New money starts to come into the resort. 2. Some of the older hotels are regenerated and attract new shops to the area. 3. Cafes reopen on the High Street 4. People start to return to the resort out of season. 5. There is a new ‘buzz’ about the place. 6. Jobs start to be created. 7. A whole new crowd of visitors starts to come regularly to the resort. 8. Newspapers start to write articles about the place again.
- 28. Example of tourism gone wrong • Benidorm: • 4 million visit Benidorm per year (1 million of these are British) • Over the past 50 years Benidorm has undergone major changes
Editor's Notes
- Tourism has an economical, social, cultural and environmental impact on destinations.
- In the 2nd half of the 20th Century, as the international tourism formative force grew, the most developed countries in the world tended to establish various organizations and institutions to develop international tourism. In the 60’s and 70’s countries started to develop tourism policies as a small part of the countries national economic policy. Only a small part because tourism was small scale and therefore less developed countries saw tourism as not a sector beneficial to the development of the country. Other sectors like mining, agriculture, forestry, production, construction were more important for development. As time passed and the economic effects generated by tourism grew significantly, the tourism policy became differentated. During the 70’s and 80’s governments invested alot in infrastructure. Thus the tourism business started to matter and so did too the destination. Tourism policy nowadays has become very important
- STPB The primary task of STPB was to coordinate the efforts of hotels, airlines and travel agents to develop the fledging tourism industry of the country. STPB is now called Singapore Tourism Board (1997)
- Whereas the current account reflects a nation's net income, the capital account reflects net change in national ownership of assets. At high level: A surplus in the capital account means money is flowing into the country, but unlike a surplus in the current account, the inbound flows will effectively be borrowings or sales of assets rather than earnings. A deficit in the capital account means money is flowing out the country, but it also suggests the nation is increasing its claims on foreign assets.
- Since tourism is now an integral part of modern societies, its study and analysis becomes imperativeif its potential economic and social benefits are to be maximized and developed in a manner consistent with society’s goals. The growth of tourism has converted many communities into destination areas. The impact of the industry and its local issues will vary according to its magnitude and relative importance, but in everry case politicians, businessmen and residents are recognizing they cannot ignore tourism if they wish to benefit from it.
- General Franco’s dictatorship 1939-1975 – authoritarian rule 1978 constitution Juan Carlos relinquished absolute power and instituted democratic reforms which gave way to political and administrative decentralization of Spain. When Spain joined the EU the country was required to open the Spanish economy to trade and investment, modernize its industrial base, improve infrastructure, and revise economic legislation in order to conform to EU guidelines. Prior to this, the Spanish economy had been one the most closed in Western Europe, with a tiny measure of foreign trade to economic activity. The Spanish economy grew rapidly over the next two decades and unemployment fell from 23% in 1986 to a low point of 8% in 2007.
- Policy making processes can be considered as a cycle of activities comprising the preparation, evaluation and implementation of a policy, and where the results can be re-incorporated into the policy design (see for instance, Howlett and Ramesh, 1995; OECD, 2004). The overall process can be separated into five distinct stages (Figure 2.1): Agenda Setting: Stage where a problem or need which can be addressed by public policy is identified and defined. Analysis: Clarification of the challenges and opportunities associated with an agenda item in order to produce a draft policy document. This can include gathering evidence and knowledge from a range of sources including citizens and civil society organisations; understanding the context such as the political context for the agenda item; develop a range of options and perform a cost benefit analysis for each one. Policy Creation: Point where the policy document is produced and adopted. This involves a variety of mechanisms which can include formal consultations, risk analysis, or undertaking pilot studies. Implementation: Development of supporting legislation, regulations, guidance, delivery plans and resource allocation. Monitoring: Evaluation and review of the policy in action, research evidence and views of users. In this stage there is the possibility to loop back to stage one and modify the policy based on the experience gained. Figure 2.1 – Policy making cycle (Source: Adapted from OECD, 2004). Although a participatory process can be implemented at any stage of the policy cycle, until now, public participation has been mainly confined to the Analysis stage, where the public is invited to express their preferences over a pre-determined set of options (Sommer, 2007). This is often the case of regulatory frameworks where public participation is required such as the Environmental Impact Assessment European Directive (see EEC, 1985; EC, 1997). The Agenda Setting stage, which is the phase that present the greatest opportunity for the public to influence the entire policy making process, by expressing their real concerns and issues, is in reality the one where the publics are given less opportunities to participate. Table 2.1 gives an insight on the influence and role that a participatory process can have when implemented on each different stage of the policy making cycle. Table 2.1 – Public participation and the policy making cycle. Policy Stage Role of Public Participation Agenda Setting Can help define needs, express desires, scoop issues and weight alternatives (including doing nothing). Analysis Can provide expert and experimental knowledge into the policy by expressing preferences in available options. Policy Creation Can help bring governmental decisions to public analysis and debate. Implementation Can help assess the potential impact of legislations and regulations by testing the feasibility of implementation plans and identifying resources in the community. Monitoring Can help define criterions for success and can support the review of evaluation reports. Source: Adapted from Sommer, 2007.
- Butler's Model Simplified by Geo Blogs on Jan 16, 2008
- Benidorm was traditionally a historic fishing village but was developed into an overcrowded holiday destination. As in Butlers model, people have come to work here but also left the area as it became crowded. When typhoid hit Salu tourists decreased alot and the locals regained their hometown. Increase in tourism meant that the govt. Had to invest in a better sewage system and spend 1 million euros a year to keep the beaches clean. Tourism has its downsides as well as hazards.