Proceedings of the 5^th Insuleur Forum

The 5th Forum of the Network of the Chambers of Commerce and Industry of the European Union was held in Palermo, Italy, on Friday, October 7th 2005 with the following theme: "Tourism on the European Islands: Towards Sustainability and Quality".

Given that INSULEUR has made tourism one of its key themes for 2005, the Forum made it possible to:

• provide an overview of the current situation of this industry on the European Islands;
• review methodologies for fostering sustainable tourism, while meeting the needs of competitiveness. In this regard, the presentations of the practices of CCIs and enterprises were highly informative;
• to address a policy vision of sustainable tourism, through the contributions of public authority representatives.

The contribution of speakers from different areas (elected members of CCIs, entrepreneurs, representatives of public authorities, university professors), but all sharing the same objective of helping the European Islands, contributed substantially to the richness of the debate and thus showed the great variety of the tourism sector, and the vast range of responses to the challenges of sustainability.

The Forum is part of the debate on the issues addressed by the European Commission in its Communication of 2003 "Basic orientations for the sustainability of European tourism".

"The central challenge for the tourism industry is: how can the tourism activity in Europe and world-wide, and the growth expected over the next two decades, be managed in such a way as to ensure that it respects the limits of its resource base, and of those resources' capacity to regenerate, whilst being commercially successful? As the product is largely based on environmental, cultural and social quality, the sector - if not managed sustainably - is at risk of deteriorating or even consuming its own income-generating resource base, and thus of being economically and socially unsustainable".

In this perspective, tourism takes a central role in the economic development of islands. This concept was expounded by Ms. Federica Montaguti (from CISET - International Center of Studies on the Tourist Economy) in her speech on the "Economic, Environmental and Social Impacts of Tourism in the European Islands". Having remarked that tourism is a major pillar of the economy of almost all European Islands, she went on to analyse the specific features of island tourism, linked indeed to the condition of insularity. These particular characteristics may be grouped under two main categories:

• small-sized internal market which does not permit sufficient economies of scale;
• monopoly phenomena, preventing the development of innovation and know-how.

On the other hand, the growth of tourism brings about:

• increase in demand;
• development of competition;
• balance of imports;
• improvement in living standards.

Subsequently, Ms. Montaguti identified three types of investment targeting the development of island tourism:

1. local capital meeting tourist demand from the island's mother-country (for example Corsica, Sicily, etc.);
2. local capital meeting tourist demand from countries other than the island's mother-country (e.g. the Greek Isles);
3. external capital linked to tourist demand from countries other than the island's mother country (e.g. the Canary Islands).

Lastly, Ms. Montaguti warned of the dangers inherent in an almost exclusively tourism-based economy for the islands:

• a fall of 5-10% in demand for example, could have a domino effect on the rest of the economy;
• multiplication of hotel and resort developments in small island territories causes loss of farming soil, and as a consequence, the loss of know-how, emigration to the mainland, and ultimately the disappearance of cultural specificities.

Thus, is it necessary to create an extremely careful policy for the development of island tourism, since any policy decisions concerning islands can produce immediately visible repercussions on those sensitive systems.

Subsequently, two working sessions (respectively on "Economic Sustainability of Island Tourism" and "Best Practices for the Sustainability of Island Tourism") illustrated the very broad spectrum of sustainable tourism experiences through presentation of a number of practices implemented on islands. In this respect, we can distinguish two main types of strategy:

• the implementation of tools: particularly those linked to new ICTs;
• the implementation of actions: particularly those linked to quality or careful monitoring of tourist development.

In the context of this twofold approach, we may quote the example of Malta (presentation by Mr. Omar Cutjar of the Malta Business Bureau), which has launched a comprehensive plan for the spread of Information and Communication Technologies (ICTs) whose use can effectively support the development of tourism through optimisation of the marketing strategy of this island State. For instance, a number of internet portals extolling the beauty of Malta and Gozo have been placed online. Similarly, there are many websites offering online bookings, including several focused on specific categories of customers.

However, while the use of ICT tools is increasingly the norm in the Maltese tourist industry (for example four- and five-star hotels have moved beyond the stage of simple Internet connection and now use ICTs for internal management purposes as well), much still remains to be done to close the gap with the rest of Europe, especially as regards more widespread recourse to e-commerce, and the integration of business processes.

An important step in this direction is the "e-business" Action Plan launched by the Maltese government, based on the blueprint of the "e-Europe 2005" Action Plan. However, while this national action plan provides a good base for encouraging the tourism industry to increasingly adopt ICTs, on the other hand:

• it is too general;
• it does not include the provision of technical support;
• it does not include a calendar for implementation or cost evaluation;
• is not sufficiently directive (in the sense that it does not possess sufficient thrust pushing tourist enterprises to use more innovative solutions).

Yet ICTs, in addition to being effective tools for marketing and for streamlining business management, can be very effective means for combating the condition of isolation affecting islands. Not surprisingly, Corsica has decided to equip itself with VDSL broadband connection (in two years' time, each family on the island will have access to this type of connection). This development was illustrated by Mr. Xavier Acquaviva (CCI of Bastia and Haute-Corse) in his speech focused on the problem of accessibility (in particular, he mentioned the industrial conflict involving the Corsican ferry line, SNCM) solution of which is the essential condition for sustainable tourism on the islands.

Mr. Acquaviva also highlighted the need for an approach focused on "quality". Both the Chambers of Commerce and the Regional Government (CTC) of Corsica are engaged in a comprehensive institutional communication campaign praising the quality of local destinations, their cultural heritage and their environment. This communication targets both the local population, which until recently did not see tourism as a factor of economic development, and the overseas public. Corsica is also implementing a quality label, "Qualité Corse", with the aim of grouping together local stakeholders, tour operators, transport companies and institutions under the umbrella of a joint communication logo.

In fact "federating" is the catchword for prompting all players in the local tourism industry to offer quality products and services. This issue also has a bearing on the theme illustrated by Mr. Giovanni Ruggieri (University of Palermo). He reported on a study on "Official and Unofficial Tourism in the Small Islands of Italy", which revealed the extent of "hidden" tourism (i.e. tourism not quantifiable by official statistics).

In this respect the study revealed that official figures only accounted for one fifth of the actual tourism business in Italy. Thus the issue is how to assess and forecast the true volume of goods and services used by all tourists present in a given destination. This phenomenon can be particularly fraught with consequences for islands, which are usually small territories, with scarce resources and a fragile environment: unorganised tourism can indeed have serious repercussions on the management of the environment.

The subject of waste management and disposal is an especially emblematic example of this island "conundrum". As Mr. Rafael Carcasona (TIRME SA) reported, summer tourism generates huge amounts of waste, which cannot be transported to the mainland for processing and disposal due to excessively high transport costs. Hence solutions must be found locally.

Indeed, the key to resolving the issue of sustainable development of island tourism lies in the islands' capacity to govern and leverage on this industry, instead of being overwhelmed by it.

The contribution by Assonautica President Gianfranco Pontel focused on the need to highlight the qualities of islands in order to better promote their image. Mr. George Karabatos (President of the Messina CCI) presented an interesting initiative entitled "The Maritime Routes of the Olive Tree". This example of cultural tourism is an original means for ensuring sustainable development of Mediterranean areas where olive groves are located. Since 1999, this project has organised tours to olive-growing areas (including trips on motorbikes) and this has in turn enabled the continuation and even the further development of local activities (such as the production of olive-based foodstuffs).

As things stand, favouring cultural tourism offers a response to the issue of seasonal tourism: what needs to be done is to develop policies targeting diversification of the tourist offer. As we were reminded by Mr. Manuel Jaén Palacios (Representative of the Balearic Islands Government in Brussels), seasonal tourism produces markedly negative consequences, such as: the precariousness of jobs, poor return on investments, overpricing of infrastructure, high consumer prices, and so on.

This is why the Government of the Balearic Islands is looking at the option of making tourism "more democratic", by facilitating the access of the older age groups. The idea is to extend initiatives such as for example the programme of the Spanish State which aims at greater participation of senior citizens in tourist flows, thus counteracting the disastrous effects of seasonality on employment in the tourism industry. What is more, since the phenomenon of ageing is underway in the whole of Europe, we should reflect on the creation of a "European tool": a tool that would enable pensioners to travel at reasonable prices in the low season.

In this respect, Mr. Palacios proposed that identification of this type of tool should be discussed in the framework of a European Forum which could address the following issues: suitable partners, funding, transport, personnel training, etc.

It is interesting to note that this suggestion is also part of the proposal put forward by Ms. Margie Sudre (MEP) highlighting the need to develop new forms of tourism. At the same time, she stressed the need for the Commission and Council to give new momentum to the drafting of the proposal for a Directive enabling the application of reduced VAT rates, making it possible for all member States to opt for reduced VAT on hotels and restaurants. The underlying idea is to combat unfair competition springing from the diversity of situations existing within the EU. Finally, insofar as tourism is the main economic activity for Outermost Regions and islands, Member States should - in the view of Ms. Sudre - promote those destinations and develop the transport networks serving said isolated regions.

To a certain extent, Ms. Sudre's appeal would seem to have been taken up since Mr. Enrico La Loggia (the Italian Minister for Regional Affairs and the Islands) in his address stressed the need to develop island infrastructure. In broader terms, he stated he felt that a cross-cutting approach should be adopted. In this respect, he announced the launching in the near future of several programmes (including, the creation of a permanent observatory for the Eastern Mediterranean and the development of port infrastructure). Stating his agreement with the ideas set out by the INSULEUR Network in its manifesto, Mr. La Loggia proposed that island products should be increasingly leveraged.

In view of all this, and even more so for the islands, should not tourism specialising in the field of natural and cultural heritage look to the future? Basically, this was the question asked by Ms. Elisavet Papazoï (former Greek Minister of Foreign Affairs). In this respect, a discussion platform should be established with the large Tour Operators (TO). And it would be as well to put the following questions on the table:

• the compatibility between mass tourism and sustainable tourism;
• the improvement of quality vis-à-vis quantity;
• what European policy tools should be provided for the island regions?
• what role can the islands play with respect to the great international TOs?
• what are the specific key moves to guarantee extension of the tourist season?
• the need for vocational training so as to guarantee year-round employment for island residents and avoid poorly qualified seasonal jobs, which are often taken by persons not resident on the islands.

Ms. Papazoï also mentioned a proposal of the European Parliament that each year the EU should acknowledge one Region that distinguished itself in the promotion of sustainable tourism. The islands too could well take advantage of this opportunity. Moreover, the challenge of sustainable tourism can only be won if the tourist "buys into it". But, it must be remembered that this type of tourism has a price.

And again, do we need to justify it? To this question, Ms. Sylvia Sciberras (EESC member) had an answer: increasing the awareness of European tourists on the value of sustainable tourism and the enhancement of the heritage and culture of the places they visit.

Conclusions

Tourism is a key sector for the EU island regions, where it mostly relies on SMEs and/or micro-enterprises.

Tourism has a cross-cutting nature as regards both the persons directly involved and activity sectors. In this regard, one might say that it is many-faceted, with multiple and varied practices.

Tourism has a unique territorial dimension: as a factor of local development, it can have important consequences on the environment, culture, and the society of the territory concerned. And this fact is even more evident in geographically limited areas such as the islands.

Consequently:

• Within each island, integrated action, involving all stakeholders must be promoted: each of these territories must create its own policy for tourism development;
• As far as the EU islands are concerned, we should consider the possibility of creating an island logo (together with a quality standard) so as to clearly identify the tourist products offered by the European islands. And in this regard, the exchange of good practices between the various islands must perforce lead to general harmonisation and raising of quality standards;
• In a broader sense, there is need for reflection on the intersection between European Regional Policy and tourism, addressing basically two important sectors: accessibility and SMEs.