EU Tourism Strategy Overview

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Questions and Answers

What is a priority in promoting sustainable tourism?

Promoting the low season (correct)

Maximizing luxury tourism experiences

Encouraging international travel agencies

Fostering large-scale tourism facilities

What principle is emphasized in tourism policy to meet local needs?

Autonomy

Uniformity

Centrality

Subsidiarity (correct)

Which entity is primarily responsible for tourism policy in Europe?

Member states (correct)

Private tourism companies

European Parliament

European Commission

What initiative was launched to enhance European tourism destinations?

The European Destinations of Excellence competition Signup and view all the answers

How does the European Commission avoid duplicating efforts in tourism development?

By collaborating with other organizations like ETC Signup and view all the answers

What aspect of tourism does the concept of market failure address?

The need for government intervention Signup and view all the answers

What does a 'virtual tourism observatory' aim to provide?

Access to research information online Signup and view all the answers

Which of the following is a key focus of the EU tourism strategy?

Development of tourism training initiatives Signup and view all the answers

What is one of the principal difficulties faced by the tourism industry?

Diverse and fragmented economic agents. Signup and view all the answers

What is identified as a consequence of uncoordinated market competition in tourism?

Cyclical growth patterns and resource waste. Signup and view all the answers

What role does a National Tourism Organization (NTO) play in tourism?

To provide a sense of direction and market the destination. Signup and view all the answers

What challenge has been faced by VisitEngland and VisitBritain?

Continual underfunding relative to their objectives. Signup and view all the answers

What did the 2015 review acknowledge regarding government intervention in tourism?

The market failure argument justifying intervention. Signup and view all the answers

What does the hierarchical structure of public administration in tourism depend on?

The size of the tourist industry and governmental importance attached. Signup and view all the answers

What is essential for successfully planning and implementing tourism policies at destinations?

An organized chain of direction from governing bodies. Signup and view all the answers

What is a key factor that undermines the long-term benefits of tourism development?

Imperfect information leading to individualistic behavior. Signup and view all the answers

What is one primary reason for government participation in tourism?

Employment creation needs sufficient educational systems. Signup and view all the answers

Which of the following is NOT mentioned as an argument for government involvement in tourism?

Increasing the number of tourist attractions. Signup and view all the answers

What role does the National Tourist Office (NTO) typically play in the public administration of tourism?

It handles tourism promotion and development. Signup and view all the answers

Why is market regulation considered important in tourism?

To protect consumers and prevent unfair competition. Signup and view all the answers

What is a common structural component of a government involved in tourism?

A centralized Ministry of Tourism with regional offices. Signup and view all the answers

What is a significant factor that leads to government establishment of a Ministry of Tourism?

The reliance on tourism as a major economic activity. Signup and view all the answers

Which of the following statements captures a key responsibility of government in tourism?

Monitoring tourism activity through statistical surveys. Signup and view all the answers

How does the government aim to address the fragmentation in the tourism industry?

Through careful coordination of development and marketing. Signup and view all the answers

What is the consequence of hotels raising their prices during major events like the Olympics?

Higher long-term demand sensitivity to price Signup and view all the answers

What can lead to a destination being perceived as 'pricing itself out of the market'?

Keeping prices at a level that ensures excess profits Signup and view all the answers

What is the primary goal of governments when regulating prices in tourism?

To encourage long-term growth in supply Signup and view all the answers

Which of the following is usually a step in the overall market regulation package?

Registration and licensing of establishments Signup and view all the answers

What issue has Uber faced in the context of government price regulation?

Conflicts with licensed taxi organizations Signup and view all the answers

How can the slope of demand curve DL2 be interpreted in terms of price sensitivity?

Short-run demand is less sensitive to price compared to long-term demand Signup and view all the answers

What happens when supply adjusts more quickly than demand in a competitive market?

Market share of destinations may decline Signup and view all the answers

What is often classified along with hotels when establishing market regulations?

Quality grading systems Signup and view all the answers

What factor contributes to older age groups being perceived as more vulnerable in tourist environments?

Designs of tourist environments for open access Signup and view all the answers

What measures have governments taken to enhance tourist safety in response to vulnerabilities?

Establishing special tourist police and victim support services Signup and view all the answers

Which of the following is commonly associated with money laundering in tourism?

Transactions involving cash-rich tourism operations Signup and view all the answers

What is a significant challenge in dealing with terrorism in the context of tourism?

The political and social causes being unrelated to tourism Signup and view all the answers

Which event highlighted the lack of crisis management plans in tourist destinations?

The September 11 attacks in 2001 Signup and view all the answers

What effect do stringent entry policies due to increased terrorist threats have on tourism?

They create perceptions of an unwelcoming country Signup and view all the answers

Which items are often favored by individuals engaging in money laundering within the tourism sector?

Luxury items like jewelry and real estate Signup and view all the answers

What is a common cause of the political turbulence that can affect tourism?

Rich-poor income gaps Signup and view all the answers

Study Notes

European Union Tourism Strategy

The EU aims to promote sustainable, responsible, and high-quality tourism, focusing on coastal tourism, cultural heritage, and accessibility for all, while promoting off-season travel.
The strategy aims to solidify Europe's image as a collection of sustainable, high-quality destinations.
It aims to maximize the use of EU policies and financial instruments for tourism development.
The strategy emphasizes avoiding duplication of work with other organizations.

Key Aspects of the EU Tourism Strategy

Cooperation with the European Travel Commission (ETC) to create a "Europe" brand, in response to declining market share.
Simplifying visa rules.
Launching the European Destinations of Excellence competition.
Development of a tourism business portal and ICT initiatives to support businesses in using new technologies.
Tourism training initiatives to enhance capacity.
Creation of a "virtual tourism observatory" by making research information available online.
Funding a wide range of tourism projects.

Subsidiarity Principle in Tourism

The EU recognizes the diverse nature of European tourism, and as such, the Commission assigns the primary role of tourism policy to member states.
The principle of subsidiarity is applied, suggesting that decisions should be made at the lowest level of authority, ensuring alignment with local needs and democratic control.

The Role of National Tourism Organizations (NTOs)

All European countries have NTOs, either as part of government or as independent bodies supported by government grants.
Public sector involvement in tourism addresses market failures, with the argument that market mechanisms alone cannot effectively allocate resources for tourism.

Market Failure in Tourism

The tourism industry is fragmented, with numerous economic agents acting in their own interests, potentially leading to suboptimal outcomes for the industry as a whole.
This emphasizes the need for a planning body, such as an NTO, to coordinate development and marketing efforts, acting as a distribution channel connecting suppliers with potential tourists.

Public Sector Involvement in Tourism

Common arguments for government participation in tourism include:
- Generating foreign exchange earnings for the balance of payments.
- Creating employment and facilitating training.
- Coordinating development and marketing activities.
- Maximizing net benefits for the host community.
- Ensuring equitable distribution of benefits and costs.
- Enhancing the country's image as a tourist destination.
- Regulating the market to protect consumers and prevent unfair competition.
- Providing public goods and infrastructure as part of the tourist product.
- Protecting tourism resources and the environment.
- Regulating social behavior, such as gambling.
- Monitoring tourism activity through statistical surveys.

The Ministry of Tourism

In countries where tourism is a significant economic activity, a Ministry of Tourism is commonly established.
Island economies, often major tourist destinations, frequently have Ministries of Tourism.

NTO Position within the Framework

The NTO can be located within or outside the Ministry of Tourism.
When located outside, the NTO becomes a government agency or semi-governmental body.

Price Control and Tourism

The "making money while you can" approach, implemented during events like the Olympics, can be counterproductive in the long run.
Price controls can lead to reduced market share, as destinations may "price themselves out of the market."
Governments regulate prices to encourage long-term supply growth and expansion, while preventing short-term excess profits.
Price controls are often part of a broader market regulation package, including registration, licensing, classification, and quality grading systems.

Tourism Security

Older age groups are perceived as more vulnerable in tourist environments.
Tourist enterprises have strengthened security measures, offering advice to visitors for their safety.
Some governments have instituted special tourist police and tourism victim support services.

Money Laundering in Tourism

Tourism operations' cash-rich nature makes them susceptible to money laundering activities, particularly in casinos, real estate transactions, and luxury purchases.

Terrorism and Tourism

Terrorism presents a more complex challenge, rooted in political and religious beliefs, civil wars, and income inequality.
Terrorist attacks have increased the need for stringent entry policies, potentially creating an image of unwelcoming destinations and deterring tourists.

Crisis Management in Tourism

Following the 9/11 attacks on the World Trade Center, major destinations have implemented crisis management plans to address the impact on international travel.

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Description

Explore the European Union's comprehensive strategy to promote sustainable and high-quality tourism. This quiz covers key aspects of the strategy, including cooperation with the European Travel Commission, visa rule simplification, and the establishment of a tourism business portal. Test your knowledge on initiatives aimed at enhancing tourism experiences across Europe.