THE NEED FOR A EUROPEAN TOURISM VALUE CHAIN PLATFORM

Competitiveness in the provision of tourism services is complex and requires the harmonization of a diverse set of inter-dependent industries and the public sector. Understanding the nature of constraints confronting the tourism industry itself, therefore, requires a rigorous assessment of the role of each value chain component in the overall tourism experience, the linkages to other agents, and the performance of the service providers, industries and institutions.

All industries compete in the international market but few have such complex structures and such a variety of intermediaries and individual buyers as tourism. A country develops the elements of a tourist product, with or without external assistance. Then a number of players (suppliers, wholesalers and retailers) in the tourism system assemble and distribute the end product for consumption by the buyer, the tourist.

The inter-dependency and multiplicity of service providers, institutions and suppliers involved in the tourism value chain makes the tourism sector particularly susceptible to the transference of inefficiencies of specific industries or the compounded effect of a generally hostile and poor business environment by way of increased costs, reduced service and quality, which collectively undercuts the ability to delivery an internationally competitive final product.

The European Commission has highlighted on a number of occasions, that the tourism industry should speak with one voice. There is too much fragmentation and too many different associations and networks that do not coordinate their messages. The tourism industry is far more important than the automotive industry in terms of GDP contribution, but the automotive industry has a powerful lobby. There is no equivalent lobby in the tourism industry.

Some industry stakeholders express doubts about the success of a travel and tourism value chain platform, as tourism is by nature very diverse they argue.

We think otherwise and we believe that a European Tourism Value Chain Platform can act as a mechanism for engaging different parties, each contributing with experience and evidence, in healthy debates and developing and sharing local knowledge and solutions. A value chain approach would appropriately select and analyse the entire European Tourism Value Chain, engage key private sector actors and facilitate the establishment and strengthening of sustainable or commercially viable market-based solutions (provided by private sector actors), to create positive economic impacts.

The objectives of the Value Chain Analysis

• Identify and understand the primary market actors in the value chain, their roles and relationships (how they work together)
• Identify sales markets, unmet demand and competitors
• Identify supply channels and trends within the value chain
• Identify constraints and opportunities that slow down value chain growth and competitiveness

Such activities should be based on three main principles:

• Open and continued participation, based on mutual trust;
• Pro-active communication as a key element for voicing ones’ opinions;
• Focus on results.

We visualize a European Tourism Value Chain platform as a process in which people’s capacities are mobilized and connected to focus on pro tourism development challenges.