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Staying on Top
The economic downturn could push Europe off the top spot as most popular tourist destination
With travel sites announcing that Greek tour operators had slashed their prices by up to 30% earlier this year in a bid to attract tourists, it seemed that visiting an economically weak EU country would be a great opportunity for budget conscious travellers wanting to save a few euros.
Travellers hoping to bag a bargain had better move fast though, as recent announcements by several EU governments that VAT (tax on goods and services) increases were imminent will drive up the cost of holidays in Europe. Add to this the sharp drop in investment in infrastructure by governments following austerity plans, and the tourist industry looks set to suffer into the medium term.
If the EU cannot compete on price, it better make sure it offers something else to attract tourists. Developing countries are bound to see a tourist boom as cash-poor holiday makers seek unique experiences on limited budgets. Competing with the likes of Peru’s Machu Picchu, Cambodia’s Angkor Watt, Egypt’s ever-popular Pyramids, and Brazil’s vast rainforests and stunning carnivals will be no mean feat. These destinations are not only exotic, but also offer serious value for money.
The EU is currently the top region in the world for tourism. Moreover, the sector makes a significant contribution to social integration, as noted by the European Commission, which singles out rural and mountain areas as well as coastal regions as major beneficiaries of tourism from a social as well as economic point of view. The cultural benefits to both receiving country nations and visitors from other countries can hardly be overstated, as anybody who has survived a dose of culture shock while abroad can attest.
EU tourism took a hit during the recession and is only slowly beginning to grow, according to the European Travel Commission. To avoid being knocked off the top spot on the list of must-see destinations in the coming years, an effective strategy will need to be put in place.
One simple way that Europe could improve its visitor numbers is by reducing bureaucracy and improving service for travel visa applicants. According to a new study by the European Tour Operators Association Europe’s inefficiencies in visa processing caused a loss of €500 million in 2009. The ways visas are processed “deters over 20% of potential visitors”. If the system were made more user-friendly, Europe could easily improve its tourist figures at little cost. The issues that most dissuaded potential tourists, in order of importance, were availability of forms in mother tongue, good communication from the authorities, the option to apply online, longer opening hours of consular authorities, and lastly, cost.
If Europe is to remain the world’s number one tourist destination despite increased prices, it needs to remain ahead of trends. If we can’t be competitive on costs, we should be offering a level of service that our competitors cannot.
There is a growing demand for eco-tourism. The EU has already introduced progressive policies in relation to littering and smoking bans; it could become a leader in eco-tourism. The number of people seeking adventure holidays, spiritual and health- related trips, as well as the retired people taking holidays is set to increase; these groups should be well catered.
The internet and new media will be of central importance in the next few years as more frequently, people access travel information online. The EU will need to ensure that the right information is getting to potential tourists and is available in the format that those people want to access it, such as a combination of macro and micro websites, blogs and social media, using text, images, maps, audio and video.
Europe still has a lot to offer potential tourists. So much culture, history, nature and diversity squeezed into a relatively small geographic space that is well-served by transport, and packed full of museums, monuments, striking architecture and those essential tourist amenities such as hotels, cafes, restaurants and bars, will ensure that it will certainly not be discarded as an option without a careful second thought. Better service and a bit of forethought could tip the balance and keep Europe popular in spite of its steep prices.
See also: Beat the Crisis, Visit Europe