EU LEVEL REGULATORY AND ADMINISTRATIVE FRAMEWORK AFFECTING TOURISM

Based on EC Public Consultation December 2013  thru March 2014

 EU Level Regulatory and Administrative Framework Affecting Tourism

1. Complexity: in case of: public procurement rules and practices, data protection, access to finance, settlement of consumer disputes, rules/practices related to work contracts and unemployment, and the provision of services across borders.
2. Lack of protection: online commerce of tourism services (e.g. booking, reservations, etc.), and  the area of safe and reliable exchange of tourism services (distance selling, advertising, unfair commercial practices, timeshare of holiday properties, travel packages, etc.), as well as to the areas of social security and taxation, climate change and chemicals.
3. Costliness: energy supply, energy efficiency and renewable energy, VAT, transport of passengers, environmental certification, social security and taxation.
4. Lack of transparency: for safe and reliable exchange of tourism services and, to a lesser extent, in case of food safety (hygiene, labelling, etc.) and public procurement rules and practices.

Selected areas of the regulatory/administrative framework which have a direct impact on the tourism-sector, with particular emphasis on the EU regulatory and administrative framework.

1. Safe and Reliable Exchange of Tourism Services (distance selling, advertising, unfair commercial practices, timeshare of holiday properties, travel packages, etc.).

Associations representing the industry consider that EU rules/practices lack of transparency with particular reference to some new commercial practices of websites towards hotels/restaurants that are complying with all regulations (HOTREC). Sometimes, they fail creating a level playing field (ECTAA), as for example the Package Travel Directive (ECTAA, ABTA, ETOA). Most of these associations claim that revision of this Directive should close existing gaps in consumer protection which confuse consumers and result in an uneven regulatory environment for businesses operating within the same marketplace. They also state that the revised Directive should not burden protected businesses with high costs of compliance, pushing customers through price incentives towards the unprotected and unregulated sector. There is also a call to better take into account the needs of persons with disabilities be (EDF).

For an association representing micro-enterprises (EUROGITES), the rules for micro enterprises are considered as excessive. 1 enterprise considers that many EU legislative initiatives leave space for interpretation at national level and as a consequence, rules are different from one Member State to another. This results in a particularly complex regulatory environment to navigate for the tourism sector actors which is inherently cross-border, particularly for SMEs, making it difficult for small independent travel agencies to be able to inform their customers on the rules that will be applied abroad.

2. Online Commerce of Tourism Services (e.g. booking, reservations, etc.)

The main burdens are the lack of protection and complexity at all levels, in particular for enterprises. Lack of transparency is also particularly pointed out for the EU and national levels by professional associations. The industry underlines that ensuring fair competition in online distribution is a key to enhance the competitiveness of the companies in the tourism sector (HOTREC). Associations representing the industry call for a better level playing field, where intermediaries have not to be subject to more stringent rules than the providers of the services (ECTAA). Associations (VVV Zuid-Limburg) also call for better protection for those accommodations which are obliged to adhere to the rules of the online booking intermediaries (and its commission percentages) or to risk losing a substantial amount of customers. A request to clarify responsibility and liability in case of click-through booking in order to ensure protection if services are not carried out, is tabled by a tour operator (TOURCOM (FR).

3. Consumers Redress and Settlement of Disputes

Different views are expressed with regards to the Alternative Dispute Resolution (ADR) Directive. Some representatives of the NGOs and the industry state that the Directive can improve protection in this area (European Disability Forum) and it allows for an effective and low cost settlement procedure (ECTAA) while others say that it increases complaint management costs. Other associations say that there is lack of protection at EU level and there aren't clear national or regional legislations for dispute settlement (European Federation of Tourist Guide Associations). For other representatives of the European stakeholders, the EU rules are either excessive (HOTREC), or too restrictive (EUFED) or lack protection (IRU).

4. Safety of Tourism Services (e.g. hotel fire safety, safety of diving equipment, etc.)

With regards to rules on safety, some representatives of the industry consider that rules are too complex, in particular for establishments (HOTREC), while others praise the existing regulatory framework as it increases consumer confidence (ABTA). Incoming operators consider that minimum acceptable standards should be established in order to provide transparency for buyers of a service (ETOA). For the respondent Trade Unions, given the importance of safety and security, it has to guarantee that rules are consistent and a level playing field is set. Other associations and networks (IRU, European fire sprinkler network) and an NGO (European Disability) call for rules which ensure better protection and consistency among Member States. For respondents of all categories, there is too much diversity among rules at national level. According to a national standard body, regulations in this field should be promoted, rather than standards.

5. Use of Standards in Tourism

Concerning product standardisation, European associations representing the industry are generally against standards which are not developed by the industry (HOTREC). They are rather supporting voluntary schemes based on market, self-control and transparency (EUROGITES) and they would not welcome the use of standards as a replacement for regulations. The particular case of the area of tourism accommodation safety is mentioned (ABTA). 1 stakeholder underlines that the CEN process is slow and is influenced by producer interests, with end-users rarely involved and no possibility for public comments (European Fire Sprinkler Network). On the other hand, there is also one response praising the importance of quality standards on accessibility in tourism (European Disability Forum). One local administration (Administration of Plunge district municipality (LT) stresses that standardisation may be harmful for heritage products. As for the use of standards in the area of tourism services, some associations praise the existing standardisation framework, in particular in the field of accessible services (European Disability Forum), safety (European Boating Industry) and core competences, equipment and premises (ANEC). Other associations (ECTAA, HOTREC, ETOA) point out that standards are too costly and useless if not backed by the industry and incongruous in the context of such a fast-evolving industry, in particular in the field of tour guiding (ETOA). They all support only standards which are industry-driven. However, there is a request (IRU) to the Commission to support their implementation. National associations express also their negative opinion on standardisation. One of them underlines that service standards in tourism are mostly unfit for the business and that it is often those players that own and certify tourism standards that make profit without producing any advantage for the sector and not improving the competitiveness of the industry itself.

6. Quality Certification Procedures

Trade Unions (ETLC) underline that in a labour intensive and guest-orientated sector as tourism, working conditions and social security of employees have an impact on the quality of services, therefore quality labels should incorporate social criteria. European Associations seem to be critical on the effectiveness of quality schemes. According to one association (IAAPA) national schemes have failed with the exception of certain schemes that targets very specific groups, for example disabled guests. Another one (EUROGITES) considers that the quality certifications processes at national or regional level are mostly "business for certification companies", not based neither on needs of clients nor any kind of market research that would justify them. In their opinion private initiatives or online evaluation portals are a lot more effective and reliable for the visitor. On the other hand, they suggest that EU general guidelines would be useful to give a homogeneous image of the services. In the view of a national association the tourism offer is so wide reaching and differentiated that often there is no common ground for a standard or a quality label. The development of such schemes should therefore be completely left to the industry. On the other hand, another national association underlines the benefits of promoting the qualified and certified products and services in tourism to create brand names and quality badges. A network of small independent travel agencies and national tour operators (TOURCOM(FR)) say that the use of quality certification and other standards (hotel staring system, green tourism, etc.) is so different from one Member State to another that it makes difficult for travel agencies to build consistent package travels or advise their clients on specific activities or accommodation in each Member State. The process to define these standards and certify service providers should be clarified and harmonised as much as possible at EU level. Furthermore, the application of ISO standards is proving very difficult for SMEs, in comparison to the benefits they could provide to their customers. Finally, one individual's concern is that EU is constantly decreasing quality requirements in certifications, while another considers not-binding certifications meaningless..

7. Provision of Services Across Borders

Concerns are expressed by the European and national industry with regards to disparity in the field of taxation among collective passenger transport modes (IRU) or among different professions, in particular with reference to the obligations that tourist guides must comply with (ETOA, EFTGA, Federation Nationale des Guides interprètes et conférenciers), and with regards the level and quality of the protection provided for in the EC proposal for the revision of the Package Travel Directive (ABTA). Two national authorities consider the current level of regulation appropriate.

8. Recognition of Professional Qualifications in Tourism

Concerns are expressed by the industry associations (ECTAA - ABTA) and national associations (Panhellenic Tourist Guide Federation) with regards to incorrect implementation of EU rules on the free movement of tourist guides and accompanying staff of a group of tourists in another EU Member State, despite of the latest regulatory improvements. Another association of incoming tour operator (ETOA) considers that EU rules/practices are unnecessary and Members States should remain free to regulate as they wish, thus ensuring a more vigorously pro-market regime which would support the provision of cross-border services. It states that complexity of the EU Directives of Professional Qualifications and Services does not allow the national authorities to implement them correctly (European Federation of Tourist Guide Associations). The following actions are requested: adoption of a standard system for vocational driving licences (Confederation of Passenger Transport) and efforts for the recognition of, driver training (IRU), qualifications for ski instructors (ABTA) and for skippers. According to the Trade Unions transparency and recognition of professional qualifications and competences is particularly important in tourism where the crossborder mobility of workers is comparatively high, and where many companies experience a high level of staff turnover and a shortage of skilled workers.

9. Direct Taxes Related to Tourism (e.g. city tax)

There is some opposition by European stakeholders to the city taxes which are seen as creating uneven playing level field (being imposed differently according to the category of the accommodation (HOTREC, ETOA) and not used to provide better services to tourists or to fund local tourism projects (HOTREC, ETOA). Representatives of the industry also think that the proliferation of taxes on tourism services at national/regional/local level that, put all together, make European products very expensive and thus destination Europe unattractive (ECTAA). Several stakeholders point out  that taxation and compliance with taxation rules result in elevated cost for transport services (e.g. city entry taxes on touring coaches (IRU), increasing number of traffic restrictions (Confederation of Passenger Transport). At the same time, some stakeholders consider direct taxes related to tourism at regional and local level positively, if they are spent to better the tourism offer (EUROGITES, Ministry of Sport and Tourism of Poland).

10. Transport of Passengers

While welcoming the proposal revising the Regulation 261/2004 on the Air passenger rights, representatives of the tour operators (ECTAA) fear that the current discussion at the European Parliament might weaken its potential to ensure better enforcement of the passenger rights and application of these rights to a wider spectrum of travel disruptions. It is believed that the 12-day rule related to maximum driving hours (ETOA, IRU) is too restrictive and that there is a need for harmonising rules on number of hours that drivers can work under the Working Time Directive and the Drivers Hours Regulations (Confederation of Passenger Transport). It is also stressed that there is no  "one-stop-shop" where all information on coach travel regulation in Europe could be found (e.g. seat-belt requirements, driving hours, emergency equipment, speed limits, etc.). This makes cross-border itineraries hard to manage and complicates the due diligence processes required to suppliers in order to ensure that host country regulations (ETOA) are met. Representatives of the micro-sized accommodations (EUROGITES) claim that transport services directly related to the service (i.e. pick-up service from bus/rail station) should be liberalized. On one hand, a national association believes that the EU has raised the obligations of organizers and travel agents making the transport offer more expensive. On the other hand, NGOs consider that passenger rights legislation should be strengthened, especially on EU level. Implementation should be better monitored and enforcement improved, since transport is an important part of the tourism chain (European Disability Forum).

Additional areas of the EU regulatory/administrative framework which have received a particular high number of comments by the respondents.

In the area of Business Environment, repetitive comments refer to data protection regulations, pointing out that they are important, but should not impose extra burdens for SMEs (ABTA, ECTAA). It is also highlighted that regulation in data protection field should strike a right balance between protecting individual’s personal data and the competitiveness of the European businesses, especially SMEs (HOTREC, EUROGITES). It is suggested to apply more flexibility for or exemption from certain rules particularly for SMEs (ECTAA). When pointing to other regulations in the field of consumer protection, one association of tour operators (ABTA) raises the issue of the lack of protection for consumers in the event of airline insolvency. National bodies also claim that the regulatory framework lack of transparency (Panhellenic Tourist Guide Federation); and there is a suggestion for a revision of guidelines for consumer reviews to be put in place at EU level.

In the area of Customs and Border Control, while some stakeholders welcome the gradual relaxation in the carriage of liquids in hand baggage on board aircraft, it is also pointed out that there is a need for consistency across all EU airports to avoid consumer confusion (ABTA). Several stakeholders recognise the need for certain border controls, such as ID verification, but it is also mentioned that controls need to be proportioned (ABTA, EUROGITES, European Federation of Tourist Guides, ETOA) and that it is strongly in the Europe's interests to improve the quality of its welcome at the points of entry to Europe, especially for long-haul visitors (ETOA). It is also underlined that the differences in safety and customs requirements when crossing borders, particularly in airports, makes it difficult for travel agencies to adequately advise their custumers on customs and border controls (TOURCOMFR). Some stakeholders (ABTA, ECTAA) underline that the rules on the transfer of passenger name record (PNR) data to third countries are unclear/contradictory and that any transfer of PNR data to third countries should be in conformity with EU data protection legislation. Equally it is requested that where Member States require carriers to provide Advance Passenger Information (API) they are consistent in the data requested and it is limited to data available in the Machine Readable Zone of passports so that it may be easily scanned, thus avoiding a proliferation of different requirements (ABTA, ECTAA).

In the area of Employment and Social Issues, Trade Unions (ETLC) consider that EU legal framework is a solid one covering the maximum number of risks with the minimum number of regulations. They call for a set of minimum standards for working time and reject any attempt to weaken rules or deregulate, which would harm the improvement of working conditions and the creation of better jobs. Some industry representatives believe that the lack of harmonisation on health and safety rules makes the business environment too complex for those tourism professionals who work cross borders (TOURCOM FR). Lack of harmonization for the driving times is also recalled again by a number of comments (ECTAA, Confederation of Passenger Transport, IRU). More flexibility is asked for certain professions, i.e. tour guides and more in general seasonal workers (ETOA, IAAPA). Representatives of the workers, on the other hand, claim that more and more companies ask their employees to work more hours for less payment or simply to reduce the working time, to reduce the costs.

In the area of tackling Climate Change, some stakeholders signal that current rules on aviation emissions trading sulphur content in maritime fuels hamper the competitiveness of the industry compared to third country transport undertakings (ECTAA). It is suggested that international instruments replace the current EU legislation to create level playing field (ECTAA). Calls for the establishment of an EU framework for city access restrictions and LEZs in Europe as a priority are presented (Confederation of Passenger Transport and IRU) including a minimum standardised road signage, environmental standards and standards for pollutants below which restrictions for public transport cannot be implemented. Comments are made on the rules on noise as too restrictive (IAAPA, EUFED) for accommodations, attractions and night fligths. It is suggested to establish a global agreement through ICAO to replace the current EU framework on noise regulation, which puts European air carriers at a competitive disadvantage (ABTA).

Rule on statistics collection and reporting obligation are considered either complex, or inappropriate for lack of common methodology or too burdensome by almost all stakeholders (all associations). One respondent calls for the availability of tourism satellite accounts (HOTREC).

In the area of Taxation, the representatives of the European Tour Operators (ECTAA, ETOA, ABTA) strongly underline the dire need of revision of the special VAT scheme for travel agents (known in the UK as "TOMS") to adapt to the new market environment and avoid distorting competition in favour of non-EU destinations. Flexibility of Member States to apply reduced VAT rates for hospitality services is welcomed by part of the hospitality sector (HOTREC) while other organisations plead for harmonisation to ensure fair competition (EUROGITES, European Federation of Touris Guides, Panhellenic Tourist Guide Federation (POXEN). Request for simplification in the VAT system for transport businesses are also tabled. It is also underlined that the proliferation of taxes at all levels is detrimental for the competitiveness of the European tourism offer (TOURCOM FR).

Most Burdensome Areas

1. One respondent (ECTAA) asks for the revision of the Insurance Mediation Directive, notably for the deletion of exemption for travel agents mediating travel insurance from the scope of the Directive as it imposes unnecessary burden and costs. It should be mentioned that the same Directive is also mentioned by other stakeholders among the successful revisions.
2. The application procedure of the Visa Code is also considered time-consuming, burdensome and costly and a barrier for potential travellers to Europe (ECTAA, EUROGITES, ETOA). However, the visa policy is signalled as one of the most obvious areas for opportunity for Europe to be competitive internationally (ETOA) and several stakeholders welcome the revision of the Visa Code with the aim of facilitating and simplifying the visa procedure aiming at enhancing the flow of tourists from major source markets such as India, China, etc. It should be noted that it was mentioned among the successful revisions by other stakeholders. Finally, it is also recommended to collect data on the deterrent effect of visas (ETOA).
3. It was also stressed that there are still gaps in the EU legislation affecting tourism regarding persons with disabilities (European Disability Forum). In particular, the need for more regulations on accessibility of online information, including social media and mobile web technologies is signalled as well as the need for legislation which covers accessibility of all services and the entire tourism chain. It should be up to the EU to create incentives for businesses and to improve accessibility via legal measures and financing tools, especially to SMEs.

Most Burdensome Rules and Practices

1. the Package Travel Directive (ECTAA),
2. the red tape related to VAT requirements (EUROGITES, IRU, Ministry of Sport and Tourism Poland),
3. the regulations on driving and rest time for coach drivers (IRU, Confederation of Passenger Transport).
4. Complexity of access to finance and public procurement rules were signalled (Ministry of Sport and Tourism of Poland).

General Comments on the Regulatory and Administrative Framework

It is very difficult to assess regulatory and administrative areas from an EU perspective, due to possible country-specific differences that may occur in case of partial harmonisation of certain type of legislation (IAAPA). Several stakeholders underline that the EU legislative initiatives leave space for interpretation at national level, which results in a complex regulatory environment for the tourism sector, particularly for SMEs, with a serious impact on consumers. Further harmonisation across the single market would therefore lead to more legal certainty in terms of responsibility, consumer rights, liability, etc.

Too much red tape and restrictive procedures are recurring in general comments EUROGITES). However, it is also said that the reduction of regulatory burden will not lead automatically to an improvement in the quality of the legislation. The focus should be on stimulating tourism in the EU by opening up borders, exchanging knowledge and facilitating cross border tourism with excellent mobile data accessibility, good infrastructure, better links between means of transport, etc. Trade Unions also pointed out that it is rather the absence of regulations or poor compliance with the existing ones that create problems.

An industrial association (ETOA) calls on the European Institutions to make an effort to coordinate the interests of the tourism sector as it is affected by non-sector-specific regulation. The same association (ETOA) underlines that it is a mistake to see consumer' and industry's interests as opposed. The suggestion is made to see the European tourism economy in the context of a global market: Europe needs to attract consumers in greater numbers from outside the EU, and care should be taken to ensure that regulation do not hinder the EU's appeal or competitiveness in this respect.