CHALLENGES FOR THE EU TOURISM INDUSTRY

1. To strengthen the EU tourism industry as a high quality service sector, a more customer-oriented approach as well as well trained and motivated staff is necessary.

2. To give the EU a better position as the number one tourism destination in the world, Europe needs better branding to reflect its core values and to adequately differentiate itself from other destinations in the world.

3. To make the tourism industry part of the knowledge economy. Good knowledge about customers, different market segments and competitors; attracting more value to human capital become even more important for remaining competitive in the tourism industry.

4. To develop EU tourism in a sustainable manner. Sustainable development means that ecological, economic and social dynamics are coordinated with each other. Human capital, the strong dependency of tourism on natural resources, further development of the industry are the key factors for competitiveness.

5. To increase the value generated from available resources. Due to the fragmented nature of the tourism industry, many actors are involved in the ciomplex value chain of an individual tourist experience. Fragmented products should be delivered to meet the customers' requirements for a total holiday experience.

6. Greater investment on innovation and growth. Easier access to finance, regulatory and other framework conditions that support entrepreneurship and innovation should be provided.

As the tourism industry is demand driven, developing customer-oriented products is crucial. However, to support the industry optimally to play its role as a sustainable growth engine of the economy, different actions to support tourism demand can be taken by industry intermediaries, Member States and EU authorities. These actions can relate to improving the process of targeting new customers, facilitating the 'logistics' of travelling to and within the EU or improving the attractiveness of places.

Concerning the future projections for the competitiveness of the European Union tourism industry, a few recommendations can be emphasized: The trade must continue to evolve to meet changing customer expectations in the short, medium and long term and must focus on:

• A growing need to give the visitor a 'reason to visit'
• A need for increased consumer centricity
• Growing recognition of the need for ongoing relative and cross-functional training at all levels of the industry
• Increased need for integrated product presentation and communication
• Growing competition from other destinations on the world such as the Far East and the USA

Key strategic priorities to drive tourism growth in both revenue and numbers:

• Co-ordination of activity with state agencies, local authorities, marketing groups and the trade must be augmented.
• The potential of festivals to draw visitors to Europe must be maximized.
• Participation in training programmes must be increased across all segments and levels of the industry.
• Marketing must be co-ordinated and consolidated.
• The industry must actively engage with e-marketing at all levels.
• Product knowledge must be improved and access to country-wide product information must be held centrally, updated regularly and easily accessible to the trade.