International Tourism Organizations 3 Henryk Handszuh Katowice School

International Tourism Organizations (3) Henryk Handszuh Katowice School of Economics (GWSH) Plenipotentiary, International Documentation and Research Centre on Industrial Heritage for Tourism Madrid – Zabrze Fmr. Director, Market Department World Tourism Organization – UNWTO, Madrid

Major international organizations shaping the international tourism market • The European Union • The Organization for Economic Development and Co-operation (OECD) • The World Trade Organization (WTO)

Key importance for tourism of the European Union: The European Commission, the European Council and the European Parliament: Outgoing and repeating leaders - José Barroso, Herman van Rumpoy, (Jerzy Buzek), Martin Schulz)

EU 2014 reset (as of 1 December) • Tourism under Commissioner for Internal Market, Industry, Entrepreneurship and SMEs • The General Secretariat is headed by the Secretary-general of the Council of the European Union – Until the date, Tourism under Directorate-General for Industry, Entrepreneurship and SMEs – (Transport and Tourism Committee in the European Parliament) • Tourism Policy Unit alongside Tourism and Cultural Instruments » Own activities (e. g. EDEN competition) » Identification and coordination of all European Commission activities pertaining to tourism

Coordination required with many Directorates. General • • Transport Culture Food Safety Consumers Competition External Trade Internal Market Regional Policy • Environment • External relations • Justice, Freedom and Security • Employment and social affairs • Public Health • Research and Innovation • ….

European Union is responsible for international (European) law relating to tourism (production & consumption Sources of European law, also with respect to tourism: n Treaties Rome -1957; Maastricht – 1992; Amsterdam – 1997; Nice - 2001/2003; Lisbon - 2007/2009 (two instruments) and based on them: 2. Legal instruments: regulations, directives, decisions - Recommendations and opinions may herald future legal instruments - Also communications may anticipate (announce) the creation of new legal instruments 3. Sentences of the European Court of Justice (ECJ) Also the European Economic and Social Council has a possibility to encourage promulgation of European law 6

Provisions relating to tourism in the Treaty on the functioning of the European Union • Article 3 • 1. The Union shall have exclusive competence in the following areas: • (a) customs union; • (b) the establishing of the competition rules necessary for the functioning of the internal market; • (c) monetary policy for the Member States whose currency is the euro; • (d) the conservation of marine biological resources under the common fisheries policy; • (e) common commercial policy.

Provisions relating to tourism in the Treaty on the functioning of the European Union (2) • • • • Article 4 1. The Union shall share competence with the Member States where the Treaties confer on it a competence which does not relate to the areas referred to in Articles 3 and 6. 2. Shared competence between the Union and the Member States applies in the following principal areas: (a) internal market; (b) social policy, for the aspects defined in this Treaty; (c) economic, social and territorial cohesion; (d) agriculture and fisheries, excluding the conservation of marine biological resources; (e) environment; (f) consumer protection; (g) transport; (h) trans-European networks; (i) energy; (j) area of freedom, security and justice; (k) common safety concerns in public health matters, for the aspects defined in this Treaty.

Provisions relating to tourism in the Treaty on the functioning of the European Union (3) • Article 6 • The Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States. The areas of such action shall, at European level, be: • (a) protection and improvement of human health; • (b) industry; • (c) culture; • (d) tourism; • (e) education, vocational training, youth and sport; • (f) civil protection; • (g) administrative cooperation.

Provisions relating to tourism in the Treaty on the functioning of the European Union (4) • • TITLE XXII TOURISM Article 195 1. The Union shall complement the action of the Member States in the tourism sector, in particular by promoting the competitiveness of Union undertakings in that sector. To that end, Union action shall be aimed at: (a) encouraging the creation of a favourable environment for the development of undertakings in this sector; (b) promoting cooperation between the Member States, particularly by the exchange of good practice. 2. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall establish specific measures to complement actions within the Member States to achieve the objectives referred to in this Article, excluding any harmonisation of the laws and regulations of the Member States.

Examples of EU regulations relating to tourism Exclusive competence: competition rules • Between 1987 – 2004: 6 regulations (competition rules, vertical integration, relating to air transport – tariff agreements, air transport with third countries, ground handling at airports, fusion of companies) – Regulations of the Council and Commission (EC) 01(2003); (EC)2790/1999; 3976/87; (EEC)1617/93; (EEC)411/2004; (CE)139/2004 – Guidelines)

Title II: Shared competence (a) internal market • „ 2. The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties (art. 26)” – Coinciding with the objectives of the World Trade Organization (GATS and other agreements) • Directive 2006/123/EC of the European Parliament and the Council of 12 December 2006 r. on services in the internal market 12

Scope of services covered by Directive 2006/123 (preamble) • 33. The services covered by this Directive concern a wide variety of ever-changing activities, including business services such as management consultancy, certification and testing; facilities management, including office maintenance; advertising; recruitment services; and the services of commercial agents. • • The services covered are also services provided both to businesses and to consumers, such as legal or fiscal advice; real estate services such as estate agencies; construction, including the services of architects; distributive trades; the organisation of trade fairs; car rental; and travel agencies.

Scope of services covered by Directive 2006/123 (preamble), cntd. • Consumer services are also covered, such as those in the field of tourism, including tour guides; leisure services, sports centres and amusement parks; and, to the extent that they are not excluded from the scope of application of the Directive, household support services, such as help for the elderly. • Those activities may involve services requiring the proximity of provider and recipient, services requiring travel by the recipient or the provider and services which may be provided at a distance, including via the Internet.

Services excluded from the application of the Directive • Healthcare services (“where those activities are reserved to a regulated health profession in the Member State in which the services are provided”). • Transport services (covered by different directives) • Audiovisual services • Gambling services

Shared competence: Movements of persons: Conditions for consumers in the EU area • Elimination of control formalities • Council Regulation (EEC) No 3925/91 of 19 December 1991 concerning the elimination of controls and formalities applicable to the cabin and hold baggage of persons taking an intra-Community flight and the baggage of persons making an intra-Community sea crossing Followed by: • Council Regulation (EEC) No 3356/91 of 7 November 1991 amending Regulation (EEC) No 4060/89 on the elimination of controls performed at the frontiers of Member States in the field of road and inland waterway transport » pertaining to „(j) area of freedom, security and justice”

Control-free movement of persons thank to Schengen – Schengen agreement (1985 – 1990 – 2007) • SIS system(Schengen information system) • VIS system (visa information system) Fot. Artur Kubasik / AG

Frontier formalities and visas for non- EU citizens • REGULATION (EC) No 390/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2009 amending the Common Consular Instructions on visas for diplomatic missions and consular posts in relation to the introduction of biometrics including provisions on the organisation of the reception and processing of visa applications • REGULATION (EC) No 810/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 July 2009 establishing a Community Code on Visas

EU legislation setting primarily tourism policies • EU instruments (regulations, directives, decisions…) intervening in varying degree in members’ regulatory systems constitute a backbone of European policies in the field of tourism – They affect both EU members – but also non-members – The tourism sector is a recipient or beneficiary of EU legislation • The elements of such policies are dispersed among all the areas of competence, whether exclusive (article 3), shared (article 4) or “to support, coordinate or supplement the actions of the Member States” (article 6) i. e. where the specific area of tourism is included – E. g. Directive 90/314/ECC on package travel, package holidays and package tours (under revision) pertains to the area of consumer protection

Do we need a specifically “tourism” legislation in Europe? • The existing legislation leaves little scope or need for specifically “tourism” legislation when it comes to the various and numerous aspects of consumption outside households and the supply (production) of generic goods and services exclusively for visitors • Unless tourism specificities can be singled out and may need to be attended by means of law • “Tourism policy is characterised by its transverse nature. A large number of other European policies have a direct or indirect impact on tourism” (COM/2010/352) • Tourism policy objectives can also be achieved thanks to financial instruments (e. g. decisions regarding financing environmental “LIFE +” projects)

Opinion of the European Economic and Social Committee (EESC) - INT/248, 6 April 2005 • Tourism policy in the enlarged EU (ces 3752005_ac_en. doc ) 2. 1. 1. Tourism policy in the European Union and the European Constitution. Although tourism does not as such form part of EU common policy, some European institutions nevertheless put forward measures and actions which, because of their crosssectoral nature, have an impact on tourism or use it as an instrument to achieve some of the EU’s fundamental aims, such as sustainable development, employment and economic and social cohesion; in short, to provide a better quality of life for Europe’s citizens. 3. 1. …Can tourism policy be covered by the general development of a comprehensive industrial and economic policy for the European Union? We know that the answer must be and is affirmative, if by tourism policy we understand all the criteria, objectives and instruments capable of steering European tourism towards satisfactory levels of competitiveness, wealth creation and sustainability.

Stocktaking of EU tourism-related legislation Titles • Competition – Incl. antitrust rules, mergers, agents’ commissions • Taxation and customs policy • Internal market – Incl. tourism services • Consumer protection and policy – Includes timeshare, fire safety in hotels • Air transport – Includes compensation for denied boarding, rights of persons with reduced mobility, aviation security, liability of air carriers, ground handling, relations with travel agents, computerized reservation systems • Road transport – Incl. rights of passengers • • Rail transport Maritime transport Inland waterway transport Justice and Home affairs – Incl. Schengen agreement, consular protection contract law • Environment – Inclusion of aviation into ETS • Social policy – Incl. working time in transport

Features of tourism policies within industrial policies according to EESC • Employment and Social policy • Quality • Research and Development • Consumer protection • Environmental protection • Other EU policies: In general, and due to its cross-sectoral nature, the tourism industry is affected by all of the EU’s economic and industrial policies.

EESC on culture and social policies • 3. 4. 6. Tourism in relation to the promotion of European culture and heritage: customs, art, architecture, history, folklore, gastronomy, etc. should all play a very important role in an appropriate European tourism policy. • 3. 4. 7 Access to tourism for all is a challenge that should not be ducked. Tourism is every individual’s right, even if they suffer from disability: a campaign to encourage tourism in the enlarged Europe is proposed, aimed particularly at schoolchildren and adolescents and at older or retired people and pensioners

Other EESC opinions • The contribution of tourism to the socio-economic recovery of areas in decline ces 1057 -2005_ac_en. doc • • Social tourism in Europe ces 1155 -2006_ac_en. doc • A renewed EU tourism policy: towards a stronger partnership for European tourism ces 15652006_ac_en. doc • Sustainable and competitive European tourism ces 1189 -2008_ac_en. doc

Some comments • Attribution of “tourism” topics to areas (and hence to the European Commission’s Directorates-General) is discretional, not (always) consistent, difficult to determine – EP “Committee responsible”, “Committee for opinion” – In the European Commission “tourism” is dealt with under “Industry and Enterprises” (Tourism Unit) • It exacerbates the perception of tourism of being “everywhere” • It further explains the volatility of tourism topics, concepts and approaches

The role of the European Parliament (EP) in setting tourism policies • EP deals with tourism under its Transport and Tourism Committee • Its role is to: – – launch and review legislative initiatives (resolutions) join the Commission in passing EU laws set policy objectives pose interpretation and enforcement queries to the European Commission (e. g. underway: on air passenger rights)

More recent EP resolution of 27 September 2011 on Europe, the world’s No. 1 tourist destination – – a new political framework for tourism in Europe • follows on COM/2010/0352 Final • proposes to create a ‘Europe Brand’ to promote Europe • advocates for a more quality European tourism, calling on the Commission to assess the feasibility of a ‘European quality tourism label’ • asks the Commission to present an EU “integrated tourism strategy” by the end of 2012 • to assess the possibility of creating a ‘European Tourism Card’ including a list of the rights of tourists travelling in Europe • underlines the importance of encouraging mobility and promoting lifelong learning, vocational and university training schemes and apprenticeships in the tourism sector, maintaining close contacts with the world of research and business

European Union initiatives and policies • EDEN – European destinations of excellence, since 2006 – 2011 theme – rehabilitation of industrial sites for tourism, follow-up to the initiative of the European Economic and Social Council (EESC) • Calypso, promoting tourism during off peak season whilst giving financial support to target disadvantaged groups, such as pensioners, lowincome families and persons with disabilities, to go on holiday. – Exchanges between at least two Member States and/or candidate countries – Through the activities of commercial agents • Calypso follows on the EESC opinion on Social Tourism in Europe (2006)

European Heritage Label EHL) • Decision No 1194/2011/EU of the European Parliament and of the Council of 16 November 2011 establishing a European Union action for the European Heritage Label General objectives: • (a) strengthening European citizens’ sense of belonging to the Union, in particular that of young people, based on shared values and elements of European history and cultural heritage, as well as an appreciation of national and regional diversity; • (b) strengthening intercultural dialogue

EHL Objectives The sites should seek to attain the following specific objectives: • (a) highlighting their European significance; • (b) raising European citizens’ awareness of their common cultural heritage, especially that of young people; • (c) facilitating the sharing of experiences and exchanges of best practices across the Union; • (d) increasing and/or improving access for all, especially young people; • (e) increasing intercultural dialogue, especially among young people, through artistic, cultural and historical education; • (f) fostering synergies between cultural heritage on one hand contemporary creation and creativity on the other; • (g) contributing to the attractiveness and the economic and sustainable development of regions, in particular through cultural tourism

Current tourism policy framework document - an emphasis on competitiveness Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Europe, the world's No 1 tourist destination – a new political framework for tourism in Europe (COM/2010/0352 Final) Four priorities: (1) Stimulate competitiveness in the European tourism sector; (2) Promote the development of sustainable, responsible and high-quality tourism; (3) Consolidate the image and profile of Europe as a collection of sustainable and high quality destinations; (4) Maximise the potential of EU financial policies and instruments for developing tourism. 21 specific actions (measures? )

Stimulate competitiveness • Promoting diversification of the supply of tourist services (thematic tourist products, cultural heritage, routes) • Developing innovation in the tourism industry (ICT, ecommerce) • Improving professional skills (CIP, Erasmus) • Encouraging an extension of the tourist season (Calypso, staggering school holidays) • Consolidating the socioeconomic knowledge base for tourism (consumer markets scoreboard, networking, virtual tourism observatory, statistics)

Recognized issues without a specific proposal of actions • The Commission is determined to ensure better integration of tourism into its various policies and ensure that the proper application of the legislation in force releases the sector's full competitive potential. – Transport, internal market, culture, rural development • EU rural development policy is also of considerable importance to the tourism sector. Through the European Agricultural Fund for Rural Development (EAFRD), the Commission can support, among other things, the establishment of businesses active within rural tourism, the development and promotion of agri-tourism and capitalisation on the cultural and natural heritage of rural regions, including mountain areas. • The Commission will examine the various possibilities and instruments under the policy on visas and external border crossings in order to make optimum use of them.

Organisation for Economic Development and Co-operation (OECD) • • OECD’s Tourism Committee OECD Tourism Trends and Policies OECD’s guiding documents A whole of government approach (Riva del Garda)

OECD – member countries and collaborating “global partners” ITALY JAPAN AUSTRALIA KOREA AUSTRIA LUXEMBOURG BELGIUM MEXICO CANADA NETHERLANDS CHILE CZECH REPUBLIC NEW ZEALAND NORWAY DENMARK POLAND ESTONIA PORTUGAL FINLAND SLOVAK REPUBLIC FRANCE SLOVENIA GERMANY SPAIN GREECE SWEDEN HUNGARY SWITZERLAND ICELAND TURKEY IRELAND UNITED KINGDOM ISRAEL UNITED STATES 34 countries • Countries invited to membership talks RUSSIA • Enhanced engagement BRAZIL CHINA INDIA INDONESIA SOUTH AFRICA

OECD guiding documents • OECD Principles of Corporate Governance (2004) • Policy Framework for Investment • Guidelines for Multinational Enterprises (25 May 2011) • - recommendations addressed by governments to multinational enterprises operating in or from adhering countries. They provide voluntary principles and standards for responsible business conduct in areas such as employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation

OECD Principles of Corporate Governance (2004) • • • Ensuring the basis for an affective Governance framework The rights of shareholders and key ownership functions The equitable treatment of shareholders The role of shareholders in Corporate governance Disclosure and transparency The responsibilities of the board – “A living document offering non-binding standards and good practices as well as guidelines on implementation” – “Efforts will help develop a culture of values for professional and ethical behaviour” OECD’s objective is to “achieve the highest sustainable economic growth and employment and a rising standard of living, while maintaining financial stability, and thus to contribute to the development of the world economy”

OECD’s Tourism Committee under the Centre for Entrepreneurship, SMEs and Local Development • Tourism, an important economic activity, is an area of public policy in most OECD countries. • The Tourism Committee acts as a forum for exchange, for monitoring policies and structural changes affecting the development of international tourism, and promoting the sustainable economic growth of tourism. • • The mandate of the Tourism Committee highlights the main missions of the OECD in the field of tourism.

An Action Statement on Tourism Policy “Whole of government” approach by OECD Recommendations (October 2008) • Policy framework - Implementing evaluation and performance assessment of government policies and programmes affecting tourism, such as promotion, innovation or education and training. • Sustainable development - Stimulating investments in energy efficient travel and tourism facilities and services in order to minimise costs and increase profitability of tourism-related enterprises and industries, while minimising potential negative effects to the environment. • Innovation - Promoting the sharing of innovative practices in terms of organisation, entrepreneurship or process (e. g. new distribution channels) development for a better use of existing capacities, higher labour productivity and a rejuvenation of the tourism supply (e. g. new products).

“Whole of government” approach by OECD • Employment - Increasing the entrepreneurial/ management capacity of tourism small and mediumsized enterprises (SMEs) through appropriate support and training programmes. • Authenticity - Developing long term programmes that promote the authenticity of tourism experiences, through the preservation and enhancement of natural and cultural resources and local cultures. • Accessibility - Suppressing unnecessary regulatory and administrative impediments to travel and tourism mobility and simplifying and harmonising them.

OECD tourism policy reports • “Governance of Tourism in OECD Countries” • “A Framework for the Evaluation of Tourism Policies and Programmes” • “Education and Training for Competitiveness and Growth in Tourism” • • “Tourism 2020: Policies to Promote Competitive and Sustainable Tourism” • “New Paradigm for International Tourism Policy” • “Enhancing the role of SMEs in the Global Tourism Industry” • “Services Trade Liberalisation and Tourism Development” “Tourism Satellite Accounts: Data for Business and Policy Development”

The role of the World Trade Organization (WTO) for Tourism and tourism policymaking through the General Agreement of Trade in Services (GATS, 1994) • • • Aims Concepts References to tourism Opportunities for policies Limitations Negotiations (The Doha Round)

Aims of GATS, a framework for policymaking by means of trade in services (preamble) • Progressive liberalization of trade in services … while giving due respect to national policy objectives • Recognition of “the right of Members to regulate, and to introduce new regulations, on the supply of services within their territories, in order to meet national policy objectives”

Scope of GATS application to tourism • “Tourism” is not defined (neither other “sectors” of services have definitions), the Agreement “applies to measures affecting trade in services”) • “Services” are referred to as (GATS article 1): –. . “services” includes any service in any sector except services supplied in the exercise of government authority • For the purpose of “national schedules of commitments” (Part IV - Progressive Liberalization) services are enumerated in the Services Sectoral Classification List (WTO Secretariat document MTN. GNS/W/120 - not part of the core GATS agreement)

Other GATS concepts and scope of application to trade in services • Modes o supply – – Cross border Consumption abroad Commercial presence Presence of natural persons • Supply of a service includes – the production – distribution, marketing, sale – and delivery of a service

Sectors of services substantiating GATS • Twelve (12) “sectors” of services are enumerated, including sector 9: Tourism and Travel Related Services • These include: – – Hotels and restaurants (12 elements) Travel agencies and tour operator services (2) Tourist guides services (1) Other • Each listed service activity has a CPC number (central product classification), e. g. 7174 (travel agencies and tour operator services)

What can be covered by “other”? • The term “tourism and travel related services” is not specific (ambiguous, misleading…) • A number of specific tourism services can be found under other “sectors”: – 1. Business services (rental/leasing services; incidental to hunting, fishing; convention services) – 7. Financial services (insurance, travel card and loan, foreign exchange) – 10. Recreational, cultural and sporting services – 11. Transport services (maritime, internal waterways, air, rail, road, auxiliary, other transport: navigational aid) • “Other” may include passport and visa issuing services

Definition of (policy) measures • Measure (by a WTO member): in the form of – a law – regulation – rule – procedure – decision – administrative action – any other form

Tourism as an international trade. Contribution of tourism to development goals through progressive liberalization of trade in services • • strengthening the domestic tourism services capacity-building through education, training and the assimilation of know-how access to technology strengthening the tourism sector’s efficiency strengthening the sector’s competitiveness attracting finance and foreign direct investment opening business and investment opportunities for domestic companies abroad • • • opening new source markets abroad Intensify and develop economic linkages with other sectors employment of idle national resources or a more effective use of such resources for the production of tourism services equitable and sustainable use of national and imported resources for tourism production accessing domestic tourism services by foreign consumers temporary movement abroad of individual national suppliers of tourism services

How can all this be achieved • GATS encourages unrestricted circulation of factors of production, including labour, and the movements of consumers • By encouraging trade in tourism services - the production, sale and delivery of services to consumers in the tourism sector - its material and human infrastructure needs to be created or enhanced, which will bring spillover effects on whole economy • GATS encourages unrestricted circulation of factors of production, including labour, and of consumers • Tourism cannot act on its sole behalf, it needs to be related to other sectors and commercial policy

How can all this be achieved (2) • The undertakings aimed at attaining development goals will bring underpinning investment from abroad (including FDI, technologies) • The objective of scaled (progressive) liberalization is the attainment of shared/fair benefits for all stake/share holders (foreign and national) • There must be an optimum balance between commitments (bound, unbound, partial, additional) to ensure an overall positive result for the trading economy concerned • “Partial” and “additional” commitments normally amount to domestic regulation and voluntary codes of conduct (e. g. CSR, Code of Ethics)

The reality of the GATS negotiations today • EU acts as a trading bloc (same commitments on behalf of all EU 27), but individual EU member states can undertake their countryspecific commitments above the EU level • WTO is still limited to 157 economies; in 2003 it opened doors to world markets to merchandise from China; Russian Federation is a recent member • WTO has appeared as a handy tool for multinational enterprises • The Doha Development Round at a standstill during a long time, brought about meager results in the Bali package with no progress on tourism services –since no progress on services can be obtained under “the single undertaking” facility • The modus operandi is dispute settlement and working focus has moved to “aid-for-trade”

The reality of the GATS negotiations today for tourism • Tourism and travel related services” commitments constitute the largest portion of all commitments, from most members, on services • The tourism sector is the only one among services which has behind a powerful lobby base • • However, these commitments were not really negotiated on WTO’s entry, but rather fixed the already existing level of market openness • Poor countries committed most (sold out) at the very outset • A low-profile Friends of Tourism Group has been in place since 2003 – UNWTO is presently not involved • WTO has joined the United Nations Steering Committee on Tourism and Development led by UNDP (United Nations Development Programme) – A ad hoc discussion group rather than a policy forum

End of part 3