NAT-VI/005 5th Commission meeting, 21 September 2015 WORKING DOCUMENT Commission for Natural Resources Age-Friendly Tourism _____________ Rapporteur: Annemiek Jetten (NL/PES) Mayor of Sluis _____________ This document will be discussed at the meeting of the Commission for Natural Resources to be held from 11 a.m. to 6 p.m. on 21 September 2015. COR-2015-03637-00-00-DT-TRA (EN) 1/6 — Rue Belliard/Belliardstraat 101 — 1040 Bruxelles/Brussel — BELGIQUE/BELGIË — Tel. +32 22822211 — Fax +32 22822325 — Internet: http://www.cor.europa.eu EN COR-2015-03637-00-00-DT-TRA (EN) 2/6 Analysis of the context and topics for discussion 1. The contribution of senior citizens to the European tourism industry is significant and represents an enormous market potential. Moreover, it can be noted that "Europeans over 65 already have a spending capacity of over EUR 3 000 billion and the number of people with age-related impairments will grow from 68 million in 2005 to 84 million in 2020". However, 41 % of European citizens in the 28 Member States have never travelled outside their national borders while 7 out of 10 seniors undertake exclusively domestic trips. What may be the role of local and regional authorities in "tapping into" the senior tourist market potential? 2. Developments in the senior tourism market: Europe’s "Baby Boom" generation is keen to participate and is the fastest growing segment. Currently more than 128 million citizens in the European Union are between 55 and 80 years old, representing about 25 % of the total population. This demographic development is having a considerable impact on tourism demand and the labour market. The tourism industry has proven to be far more resilient to external shocks/crises than anticipated. The big picture foresees more but uneven wealth creation, slower but steady growth and faltering development of well-being. To what extent can local governments resist these pressures if their social inclusion policies are incompatible with the austerity measures from national governments? 3. The influence of three factors can be defined: shifting demographics, digital technologies, and global competition have upended conventional marketing strategies in favour of strategies that make service provision more accessible in flexible ways to tourists. Might terrorism and the humanitarian refugee crisis reverse this trend? Implementation 4. Studies show that senior tourism is not a homogeneous market. Seniors are a heterogeneous group of individuals with different needs, motivations and expectations. Seniors are more and more socially isolated; age-friendly tourism helps them to restore social contacts. It has been proven that age-friendly tourism reduces the need for healthcare. What are some of the mechanisms for involving tourism enterprises in delivering "added social value" in their service to senior tourists? 5. Local and regional authorities play a major role in the coordination of sectoral policies such as transport, urban and rural planning, waste management, etc. In turn, these sectors directly and indirectly impact local tourism comprised of family-run small and medium businesses. How can local authorities identify and valorise individual efforts of small and medium enterprises (SMEs) to overcome the barriers of market fragmentation and internal competition in order to foster public-private sector cooperation? 6. Reservation systems, social media and electronic marketplaces are but a few of the dominant tourism applications available on the internet. However some senior citizens are less familiar with online booking system and reviewing websites. Due to the digital divide, seniors may rely more on traditional reservation methods and personal interaction with travel agents and COR-2015-03637-00-00-DT-TRA (EN) 3/6 destination websites. How can local authorities aid some senior citizens less familiar with online booking systems and reviewing websites to bridge the digital divide? 7. The Committee calls for better inclusion of senior tourism on the Digital Agenda for Europe as a mechanism to bridge the digital divide, based on the argument that connecting with others "can help older people to stay healthy, independent and active at work or in their community" 1. 8. The Committee supports the Digital Agenda for Europe's goals and emphasises how small and medium tourism enterprises could benefit from the massive roll-out of broadband across Europe. But does being better connected automatically mean reaching new and existing consumers more easily and more rapidly and delivering customised tourism services? 9. The eHealth agenda can also be highly beneficial to senior tourism development. Health is regularly quoted as the second reason for not taking holidays by older travellers; providing them with e-access to quality care away from their place of residence can allay their fears and make them more adventurous in their free time. At the same time, travelling may also contribute positively to one's health through a change of climate, routine and exposure to new experiences. What specific eHealth policies should be implemented and could represent a stimulus for triggering a virtuous circle for senior tourism? 10. Strengthening the links between age-friendly tourism and the European Innovation Partnership on Active and Healthy Ageing is a priority for improving mobility, safety initiatives and overall accessibility of public spaces. How can public authorities raise awareness and engage with stakeholders about the EIP priorities and activities to enhance access to funding for interested parties? 11. The CoR supports the idea to launch the European Covenant of Mayors on Demographic Change and advocates that tourism is recognised as an important policy area with the potential to boost innovation, contribute to healthy and active living and support intergenerational solidarity. 12. The CoR supports the suggestion of the European Parliament Intergroup on European Tourism Development to nominate one of the coming years a "European Year of Tourism" to brand "Europe as a safe and secure destination for all, especially for seniors". Issues and challenges 13. 1 The Europe 2020 strategy pursues a policy of sustainable, inclusive smart specialisation for regions. A major challenge for local authorities is to gather insight and take into account the needs, priorities, expectations and experiences of seniors in terms of destinations. According to the principle of consumer value, the success of the age-friendly tourism market depends on providing high levels of value. A main issue is that private enterprises develop, produce, and deliver tourism products and services, but senior tourists perceive value only in the benefits these products and services provide. Consumer value is a moving target. As the environmental https://ec.europa.eu/digital-agenda/en/policies-ageing-well-ict COR-2015-03637-00-00-DT-TRA (EN) 4/6 circumstances change, tourists accumulate experience and senior needs and interests change – the value they seek, expressed in a price-quality ratio, may change as well. What are the benefits for the private sector of cooperating with local public authorities? What role can local public authorities play in increasing senior marketing, both as a passive and active actor in the process? 14. Local authorities function within a legislative framework, an established relationship among national, regional and local government. Improving competitiveness depends on value upgrading at both the firm level and the fragmented tourism cluster level through public-private sector integration, which poses a considerable challenge for public authorities: how to acquire, maintain and expand their share in the senior tourism market? The coordination mechanism to drive the integration of the value upgrading strategy of the public and private sectors has two dimensions: At the consumer level, local authorities must integrate and coordinate all elements of design and execution that age-friendly tourism can offer to seniors, within a systematic framework serving as an umbrella for thematic product development and promotion based on demand, such as health, gastronomy, culture, nature and active tourism, and corresponding to specialised regional assets in the low and medium seasons. At local tourism level, private businesses are involved in a wide range of tourism interests with for-profit activities. In contrast, the role of local authorities involves policy and implementation, providing municipal services and managing territorially cohesive development. What specific activities can local authorities get involved in to coordinate the efforts and resources of the private sector and foster collaborative public-private community relationships? Recommendations Joint policy recommendations Raising awareness of tourism market change and adapting available mechanisms at European scale 15. Conscious that the "normal" age of retirement differs across the EU and of the priority of increasing senior tourists' travels, from Europe and from third countries, the CoR suggests defining a senior tourist as: "Any person in the age-friendly tourism channel of distribution whose decision-making to satisfy needs, interests, expectations and actions can affect purchase and who, due to his/her status, is a prospect for promoting travel, especially during the low and medium seasons". 16. An increase of senior tourists offers local public authorities the opportunity to incorporate the strategies of a dynamic private sector in their policy. COR-2015-03637-00-00-DT-TRA (EN) 5/6 17. The Committee observes that senior tourists tend to favour environmentally-responsible and sustainable tourism2 practices, including those involving communities in coastal, mountainous, isolated and rural areas. All too often in regions where tourism is extremely concentrated or where it coincides with sensitive eco-systems, it has a substantial impact on nature and erodes traditional values. The Committee suggests that local authorities confronted with the negative effects of tourism-induced infrastructure may consider awarding eco-labels to encourage government bodies responsible for tourism to increase their environmental commitment and provide tourists with help in choosing accommodation and destinations that reduce the carbon footprint. 18. The emphasis on ageing has been driven by health studies focused on detecting ways, through food or medicine, to slow down the processes of physical and mental decay, and by economic factors due to staggering health care costs. The medical sector offers significant scope for the successful development of newer institutions based on partnership. Local authorities should consider a cross-sectoral approach in incorporating a variety of public sector organisations, including the health care sector and the transport sector, by way of an electronic marketplace dedicated to the provision of centralised information regarding tourism services for seniors, including those with less purchasing power and health problems. 19. The Committee argues that a growing proportion of the emerging silver wave of seniors is in search of the meaning of life, often within new imagined communities. Therefore, investing in European citizenship through better access, both in physical and digital terms, to experiencing cultural and historical narratives in combination with travel promotes encounters and cohesion, which can only work in an environment of European citizenship. Local authorities may opt to leverage modern communication technology including search engines like TripAdvisor which offer users "transparency" so that seniors understand what quality to expect for what price. How can commercial and social partners leverage access as a positive strategy that will maximise the impact of age-friendly tourism? 20. The impact of digitally-mediated interactions between destination stakeholders has evolved significantly and underlines the importance of developing a European database on senior studies. Within this systematic framework analyses and indicators must be developed that cover: (1) demand, tourists with the ability and desire to visit destinations; (2) diverse carriers, which transport tourists to and from destinations; (3) attractions which offer activities for tourists’ participation; (4) accommodation and retail facilities that provide services and support to tourists; and (5) information agencies and media, which assist tourists with knowledge, enabling them to enhance their personal experiences. 21. The Committee suggests that projections show slower but steady and substantial growth of senior tourists and refers to the initiative "Europe, the world’s No 1 tourist destination", which has potential to foster "sustainable, responsible, high quality and cohesive tourism", EU employment and social development, and proposes that the EU Commission incorporate tourism as a key priority for the European Union in the 2021-2027 multiannual framework. _____________ 2 CdR 89/2012 opinion on " Regional-specific approaches to climate change in the EU based on the example of mountainous regions" COR-2015-03637-00-00-DT-TRA (EN) 6/6