ETOA’s Hotel Workshop open for registration

Bookings have opened for ETOA’s next business workshop, HEM 2010. The Hoteliers European Marketplace is being held at the Hilton Metropole in London, on 12 February 2010, and brings together hotel contractors and more than 250 leading European hotels.

The 2010 event will also be the first time that delegates from city tourist offices will be taking part, in conjunction with European Cities Marketing. This innovation will enable contractors to source hotel products and at the same time discuss how destinations can add value. It is anticipated that over 4,000 business appointments will be made during the day. Delegates can request online who they wish to meet, and ETOA’s unique appointment system will match and assign meetings according to the requests made and European region.

Rome Plans Improved Coach Access for 2010

MPs Call for Consumer Protection on all Holiday Flights

MPs at Westminster have joined the debate over reform of the Package Travel Directive with a call for all holiday flights to be covered with consumer protection, whether or not they are booked as part of a package.

MPs on the all-party Transport Committee say all holiday flights should be included in an ATOL-style arrangement and a levy on tickets to provide the funds.

In a report published just a week after the European Commission opened a new Consultation on consumer protection of holidays, the MPs at Westminster say they are concerned that passengers are not adequately protected from airline collapse.

“As the number of people who book flights over the internet increases, the number at risk also rises. We repeat our recommendation that the ATOL levy should be increased and extended to include all flights overseas and not merely package holidays.”

ETOA backs Smart Move campaign for bus and coach travel

EU Package Travel Consultation Open

The latest consultation on the EU’s Package Travel Directive is now open and the European Commission is inviting businesses, industry associations, consumer organisations, public sector bodies and the travelling public to take part. The consultation runs until 7 February 2010.

The 12-page questionnaire can be downloaded from http://ec.europa.eu/consumers/rights/travel/docs/questionnaire_enterprise.pdf and answers can be prepared offline. The online form at http://ec.europa.eu/consumers/rights/travel/consultation_en.htm has to be completed within 90 minutes. The completed submission can be saved before submitting it to the Commission.

We suggest ETOA members and interested parties complete the questionnaire and keep ETOA informed by highlighting particularly important points (or sending a copy of their submission) to our dedicated address, PTD@etoa.org.

The questions in the online consultation cover various options for the overall scope of consumer protection, from the currently defined package holiday, to packages built from components on a single website to those made up from bookings on different websites but where the suppliers are commercially linked.

European Parliament Votes for Protection for Airline Passengers

EU Consultation on Package Travel Directive
by David Browne

The EU Consumer Affairs Commission, Meglena Kuneva, is this week launching a consultation on reform of the Package Travel Directive. Details of the consultation paper will be released at a press conference in Brussels on Thursday. Concern has been growing that the Directive no longer provides the complete consumer protection that it was originally designed for, and has failed to keep up with the needs of holidaymakers and developments in the travel and tourism industries, notably the growth of low cost airlines and internet sales of holiday components. Alongside the consultation, Ms Kuneva has ordered a survey into the problems and detriments suffered by consumers in the package travel sector.

The European Commission's consultation will close in Jan 2010 and the Commission intends to publish its proposals for the revised Package Travel Directive in Autumn 2010.  The proposals will then need to go through the co-decision procedure in the Council and the European Parliament.

The EU Package Travel Directive (PTD) dates back to the 1990s when the most common type of holiday was a two week package booked through a travel agent using a brochure.  The directive covers pre-defined package holidays combining at least two of the following: transport, accommodation or other tourists services such as car rental, sightseeing tours, and sold at an inclusive price.

Industry Consumer Protection Case Appeal
by David Browne

The Civil Aviation Authority has confirmed that its case against the online travel agent, Travel Republic, is to go to appeal. The case has considerable importance particularly for online travel agents as it tests the legal definition of a package holiday and the law concerning consumer protection.

All charges against Travel Republic and a named director, Kane Piri were dismissed and the judge ruled, in effect, that selling various components of a holiday including flights and accommodation at the same time but priced separately, did not necessarily meet the legal definition of a package. Consequently, Travel Republic and online travel agents working to a similar business model of tailor-made holidays may not be required in law to hold an air tour operators licence (ATOL). This creates uncertainty about whether consumers booking a tailor-made holiday or so-called dynamic package are fully protected in the event of a company failure during their holiday.

“The CAA considers it must do what is necessary and all that it can to try to ensure that when someone books an air package holiday they receive the protection that Parliament and the EU has decided they are entitled to, and hence are protected by ATOL for the whole of that package,” said the CAA in a statement.

“We have therefore decided to seek clarity for both holidaymakers and the industry from a higher court as swiftly as possible.”

NEWS IN BRIEF

Call for Reduction in Tourism VAT

Signs of Recovery for Inbound Tourism

The latest provisional figures from the International Passenger Survey, covering the key summer travel months, show a small increase in the number of overseas visitors to Britain. During the first nine months of 2009, there were 23 million overseas visitors to the UK which is 8 per cent lower than in the same period in 2008, but visitor spending held steady at £12.5 billion. In the summer months from July to September, however, there were 3 per cent more visitors than arrived in the summer of 2008, with a growth of 6 per cent in visitors from North America. VisitBritain said this showed once again that Britain was a great value destination for Americans, with the pound being about 13 per cent cheaper against the US dollar, compared with last year. VisitBritain forecast that overall there would be a 5 per cent decline in visitor numbers for the whole of 2009, but there would be modest growth in numbers and visitor spend in 2010.

Industry Comes Together to Maximise Tourism Opportunity from the 2012 Games

New Working Party to be Established

Visit Britain, Visit London, the European Tour Operators Association (ETOA) and UKinbound have agreed to set up a joint working party to  develop a strategy that will encourage visits to Britain and London throughout 2012 and beyond as London hosts the 2012 Olympic and Paralympic Games.

Tour operators and the travel trade will be crucial in promoting the message that Britain and London are open for business as usual in the build up to the Games and throughout Olympic year itself. London and Britain have distinct advantages over previous Olympic hosts given the accessibility of the country to the rest of the world, its long-established tourism industry, a plentiful supply of accommodation across all price ranges and a strong cultural offer.

12 Day Rule to Come into Force on 4th June 2010

Award for Educational Tour Operator

NEWS IN BRIEF

Ministers Slam UK Travel Tax

Scotland’s Homecoming Finale

City Regulations Damaging Tourism

Holiday Taxes Will Hit Inbound Tourism

Cruise Market Growth Threatens Destination Europe

ETOA Joins Consumer Protection Reform

Holiday Tax Rises Next Week

NEWS IN BRIEF

Germany Cuts VAT on Hotel Nights

The new coalition government in Germany has moved quickly to assert its policy of tax-cutting as a way of driving recovery, and has announced a reduction in VAT on hotel accommodation. From the beginning of 2010 the VAT rate for hotels will drop from 19 per cent to 7 per cent, a move that has been welcomed by the tourism trade. European Union taxation regulations allow nations to charge a lower rate of VAT on certain labour-intensive services, but the UK has not taken advantage of this concession and its VAT rates are amongst the highest in the EU, at 15 per cent, returning to 17.5 per cent at the end of this year. This makes the UK’s rate more than double the EU average VAT on hospitality. Spain charges 7 per cent, France 5.5 per cent, Italy 10 per cent, Cyprus and Malta 5 per cent, for example. Only Denmark, Hungary and Slovakia charge VAT on hotel accommodation at rates higher than the UK.

ETOA Moves Into e-Learning

ETOA has formed a new partnership to provide web-based training materials for people working in the tourism industry. Working with Online Travel Training (OTT), ETOA will create training modules for contractors and other key operational staff, which will be a valuable source of information and guidelines for the industry.

OTT is the leading product e-learning provider for the travel industry, attracting over 25,000 registered users in just 2 years. OTT’s unique and easy-to-use training platform has enabled many leading travel companies to create and/or market product training to a huge travel audience.

Bus and Coach Touring Over-burdened by Regulations

NEWS IN BRIEF

Swedish Capital Wins Coach Travel Award

Stockholm was named Europe’s most coach-friendly city at the 2009 Bus and Coach Forum and was awarded the IRU’s City Trophy. It recognises the city authorities’ understanding of the economic and environmental potential of coach tourism and travel, and their green policy of giving priority to coach tourism, notably by promoting and facilitating city access to visiting coaches. “The award demonstrates to policy-makers and municipal authorities around the world that coaches must be acknowledged for what they are: the greenest, safest, most affordable, user-friendly and, indeed, efficient mode of tourism and travel,” said Graham Smith, vice-president of IRU. 

New Insurance Policy Covers Travel Business Failure

The British Insurance Brokers Association, BIBA, has launched a new travel insurance product that protects independent travellers against the risk of airlines and suppliers going out of business during a holiday. The policy fills a gap in the market where consumers make their own travel and accommodation arrangements without using an ATOL tour operator. Examples of trips which fall outside of the ATOL arrangement are direct bookings with airlines or trips which have been put together and paid for separately by the traveller.

More than 50 airlines, including SkyEurope, have gone bankrupt in the past 12 months as carriers continue to cut costs and tackle the drop in demand.   

Call for Funding for Railway Improvements

Business leaders in the European railway sector have called for EU funding to improve passenger rail services in central and Eastern Europe. They say modernisation of carriages is essential to stop the railways’ decline in the region’s passenger market share. A conference in Warsaw called for EU regional aid to finance leasing rather than purchase of new passenger carriages. 

"Risky Business" Contractors Seminar

Expert speakers:
Laura Harcombe, Dawsons Solicitors
Alan Lumsden, Vantage Insurance

Tour Operators [TOs] are responsible for the health and safety of their staff and customers. They need to minimise these risks. This may in part be accomplished by effective risk management and the effective implementation of appropriate in-house heath and safety policies. The ‘Risky Business’ seminar covered areas of concern related to TO civil and criminal liability. There was general discussion as to best practice including risk management, insurance and the need for in-house policies that suit a TO’s business profile. ETOA has produced general guidance material for use by TOs when reviewing their own policies and practices. While these materials will be periodically reviewed by experts they do not constitute legal advice nor do they replace the need for individual businesses to obtain professional advice specific to their particular needs and circumstances. The primary intention is to gather together what we understand to be a good overall introduction and summary for TOs. This may help them develop and review their own policies and practices, and keep awareness at a high level of TO responsibility to its clients and associated liability. This is in the best interests of the consumer and the industry.

We have since received various questions from Members who attended; thank you! In consequence, we will continue to add to these materials, so please check the website for any updates. Any further comments, questions or recommendations are welcome.  

Europe must offer better value says EU Commission

The European Commission has admitted that Europe is losing ground in world tourism and says it needs to offer better value for money to attract more inbound leisure visitors.

Speaking at the annual European Tourism Forum in Brussels last week, EU Commission Vice President Günter Verheugen said tourism was an economic sector of growing importance to Europe but most of the one billion recorded tourists each year were from European countries.

“When it comes to attracting a growing number of non-EU incoming tourists, it seems that the EU has not yet been able to take full advantage of the opportunities of an ever globalising world,” he said. “Whereas more and more EU citizens tend to spend their holidays outside the EU, the EU is not as successful in attracting non-EU tourists to come to Europe.”

Vice President Verheugen is also the European Commissioner in charge of Enterprise and Industry, which includes the tourism sector. He said a key challenge for European tourism was the changing behaviour of travellers during the global economic downturn, and most were looking for shorter breaks and greater value for money.

NEWS IN BRIEF

Irish Government Advised to Abolish Travel Tax

A report commissioned by the Irish Government has called for the abolition of a controversial Euro10 departure tax imposed on Ireland’s airports. The Tourism Renewal Group, set up by Minister for Arts, Sport and Tourism, Martin Cullen, to review the strategic framework for Irish tourism, says the tax is damaging Ireland’s tourism prospects. The Group was asked to examine the tourism policy and programme priorities, actions and targets.

“There is strong evidence to suggest that the introduction of the Departure Tax damaged our competitiveness and our image,” said the group’s chairman, Maurice Pratt. “The Tourism Renewal Group recommends that in the context of framing the 2010 budget, the Departure Tax be abolished.” The Minister welcomed the report but said only that the government would consider its response “within the wider context of fiscal sustainability and economic renewal”.

Protection Planned for DIY Travel Packages

Plans are being made for an extension of consumer protection to components of a self-assembled travel package. According to The Independent newspaper, the EU consumer affairs Commissioner, Meglena Kuneva, is about to announce proposals for changes to the Passenger Travel Directive, which covers travellers who book a complete package with a tour operator. The changes are predicted to extend in the first instance to consumers who make separate bookings for transport, hotel and car hire on a single website.

“Before, the Package Travel Directive was good because one agency arranged a package for you – travel, hotels, entertainment – and you were covered for the flight, hotel, everything. But now, more than half of travellers are doing it themselves and they are not covered under the directive for insolvency, dissatisfaction, complaints; you get nothing,” said Ms Kuneva. “We will expand the directive so if you make a package on your own, you have the same rights, or almost the same rights, as if your package is arranged by a professional company."   

Call for Lawmakers to Consult Industry

Tourism and its related businesses is a vast economic driver of growth and jobs in Europe, but policy-makers and legislators don’t consult enough about the implications of new laws, according to HOTREC, the Europe-wide trade body for hotels and restaurants. Speaking at the European Tourism Forum in Brussels, Martin Couchman, chairman of the Hotrec social dialogue committee, said governments could help the industry in the economic downturn by supporting good businesses and their workers. “All businesses in our industry could be helped at European level by the new Commission and the new Parliament doing something which is totally against their nature: before proposing and discussing new Directives and Regulations, as what good they will do for businesses and employees,” he said.

Surveys Offer Stark Message to Travel Sites

A common theme emerging from surveys into the use of travel websites is that there is a lot of scope for improvement in the customer experience. Frustrations with planning travel online featured highly in the latest Which? Survey. The most cited grievance was the issue of hidden costs or surcharges not shown in the original price, followed by the fact that booking online took too long.

How a travel company uses its web presence for promotion and selling is hugely influential. As consumers make more and more of their travel decisions online, it is ever more critical for travel websites to be easy to navigate, inspire confidence and be clear about taxes and other charges.

Trustworthiness has also emerged as a key factor for successful online travel. In a study by Yahoo! of 11,000 Internet users in Europe it emerged that they want and expect more social media and user-generated content. Just over 38 per cent said they preferred recommendations and advice from other users when planning a holiday online.

NEWS IN BRIEF

Oberammergau to Attend ETOA Workshop

Oberammergau have just joined ETOA as members and will be attending the Workshop on the 5th November. 2010 sees the staging of the famous Passion Play. Following enquiries from many members, they have decided it is the perfect opportunity to present their promotional packages and answer any queries our tour operator members may have. http://www.passionplay-oberammergau.com/

UK Tourism Minister to Stand Down

UK Tourism Minister, Barbara Follett, is to leave the House of Commons. She will stand down at the next general election, which will be called in the next few months. The role at present incorporates Culture, Creative Industries and Tourism but there have been calls for tourism to come under the remit of Business, Innovation and Skills, as is already the case in several other European countries.

Arnie Weissmann Will Reveal Latest US Market Intelligence at ETOA Conference

ETOA has secured Arnie Weissmann, editor-in-chief of Travel Weekly, as a keynote speaker at ETOA’s annual conference in November. Weissmann is a world class analyst of travel and tourism and an expert on the US travel market.

Weismann has been involved in every aspect of travel journalism and publishing for the past 25 years. He created Weissmann Travel Reports, the destination information service which was sold to Reed Elsevier, and was a web pioneer in the travel sector, creating the first core destination content for America Online, licensing web content to Apple, Time, CNN, Marriott International and other outlets. He sits on many advisory boards, including the UN Foundation's Steering Committee for the Partnership for Global Sustainable Tourism Criteria.

NEWS IN BRIEF

12 day rule approved but timetable still unclear

The 12 day rule on coaching was finally approved by the Council of the European Union last week, a move strongly welcomed by ETOA, who have lobbied hard along with other industry partners for its reintroduction.

What remains unclear at present are the exact dates for implementation as these depend on publication in the Official Journal, a twenty day lead in period for the regulation to come into force and then the application of the regulation by member states, which could be six months later.

US Tourist Tax Threat: could Europe be next?

The United States could introduce a tourist tax on foreign visitors in the next few months. The proposal is contained in the Travel Promotion Bill which has been passed by the Senate but is still to be considered by the House of Representatives.

American tourism authorities claim the $10 tax would be used to pay for the costs of tourism marketing, but travel companies say it could deter people from travelling to the USA. The charge will apply to travellers entering the USA under the Visa Waiver programme and would be collected through the online authorisation system ESTA which was launched earlier this year.

EU officials have indicated that if it is imposed, Americans could be subject to a similar charge to enter Europe.

ETOA announces campaign on tax reform

On January 1st a series of new measures on the indirect taxation of travel services are coming into force throughout Europe. In the Republic of Ireland the margin on tourism services are to be taxed for the first time. In the UK, companies who sell to direct to consumers now have to apply the Tour Operators Margin Scheme (TOMS), whilst those who sell to other companies now have to “opt out”. On the same date new rules come into effect on the collection of VAT on “cross border services”.

Furthermore a fresh round of negotiations on TOMS is expected to start in the first half of next year. Spain has said it is planning to include reform of TOMS in its EU Presidency agenda. Belgium, Hungary and Poland are to follow and all are thought to be equally open to change.

This means tourism industry players, including trade associations like ETOA, have a potential two year window for negotiations. TOMS was intended to simplify the collection of tax on sales made in different national jurisdictions across Europe but it has been widely criticised as complicated, unwieldy and costly. It has made travel arranged through Europe-based operators less competitive compared with companies based outside the EU that are not subject to EU taxation laws.

NEWS IN BRIEF

Travel Club Opens

The Travel Club, the first private members club dedicated to the business and social needs of global travel industry professionals, will open in London next Tuesday. Tom Nutley, the man behind the concept, is former chairman of Reed Travel Exhibitions, said he was encouraged by the first responses to the creation of the club. "Most people have said they cannot understand why it has taken nearly 170 years to establish a centre for the industry to have its own centre!"

The formal opening will be performed by WTTC chief, Jean-Claude Baumgarten. "Since Thomas Cook started his operations, London has always been at the forefront of travel and tourism", he said. "WTTC quite naturally chose to have its headquarters in this busy city. Travel and tourism is one of the first industries in the world. What was missing was a place where leaders of this activity could meet in a convivial environment to show how important our industry has become. The opening of The Travel Club will do just that."

The Travel Club shares a magnificent listed building with the Naval & Military Club at 4 St James's Square, and offers guest rooms, a restaurant, gym and swimming pool, rooms for events and meetings and space for business, entertaining and relaxing in the heart of London. marketing literature as a result.

Dismay at 12-Day Rule Delay

ETOA and other trade bodies are dismayed that re-introduction of the 12-Day Rule for coach operators has been delayed, and will not come into effect before Easter 2010.

ETOA, the European Travel Agents and Tour Operators Association (ECTAA) and the International Road Transport Union (IRU) have issued a joint call for the European institutions to complete the decision-making process. The three leading travel industry organisations insist on an immediate publication of the new rules in the EU Official Journal so that operators, drivers and customers can benefit from the derogation by spring 2010.

The delay seems to have been caused by bureaucratic procedures within the EU linguistic services where the final text is translated into all the official EU languages. The hold-up in approving the final text is likely to increase the costs for travel businesses that had planned and contracted their services under the assumption that the so-called 12-Day Rule would be in effect by the start of 2010.

The 12-day derogation is of vital importance for European competitiveness in world tourism markets. This new delay postpones its implementation beyond Easter 2010, which will harm inbound tourism and related jobs.

"Operators are paid to plan. Planning is impossible if the foundations of what you do shift. The ending in April 2007 of coach drivers' ability to work for 12 days was a major blow to the tourism industry: it increased prices and caused big logistical problems,” said Tom Jenkins, ETOA Executive Director. “We were led to believe that this was going to be lifted by 1st January 2010. People have planned tours and sold them throughout the world on this basis. Now we understand that this is stalled because of translation problems.”

NEWS IN BRIEF

Oberammergau Tickets Clarification

Tour operators who have been promoting ticket-only sales for the 2010 Oberammergau Passion Play have been advised that only tour packages including one or two nights’ accommodation in the area have been released for sale. ETOA has learned that at least two international tour operators have had to amend their marketing literature as a result.

Ticket-only sales are only available for local residents in Germany who do not need hotel or guest house accommodation in the Bavarian village. For buyers around the world only packages are available for sale under the official agreements with the Oberammergau Passion Play Organising Committee.

Airlines Protest over Food Labelling Costs

The Association of European Airlines (AEA) has protested that proposals to introduce standardised food labelling could add to the cost of flying, and would affect European operators unfairly. The Association says the new food labelling regulation would apply only to European airlines.

Food labelling regulations intended to apply to packaged food sold in shops and supermarkets will apply to food sold on board passenger flights operated by a European-registered airline. "The scenario means that consumers would be provided with different types of information on allergens or no information at all – depending on which carrier they are flying with and if they are flying from or to the EU,” said the AEA in a report.

The Association said a further unintended consequence of applying the food labelling regulations to in-flight meals was that airlines from countries outside the EU would relocate their catering arrangements to caterers outside the EU in order to avoid additional costs linked to the new labelling requirements.

Tom Jenkins will be covering the topic of Europe’s competitiveness at the upcoming ETOA GEM Conference on 6th November. For more details see www.etoa.org/gem.aspx 

Record Applications for 2009 ETOA Workshop

In ETOA's 20th anniversary year, registrations for the Global European Marketplace are some 15 per cent ahead of last year's figures and the event is set to be the biggest so far. At the beginning of September, 150 buyers have already registered, including 45 new ETOA members.

"Our 20th anniversary comes against a backdrop of uncertainty in the travel industry and the economy at large. The number of early registrations we have received for this year's GEM shows that buyers and suppliers are keener than ever to do business and are looking towards a brighter year ahead," said Tom Jenkins, ETOA's Executive Director. "With further operators to sign up in the coming weeks, we're very confident that this year's Workshop will be bigger and better than ever"

More than 7000 meetings are scheduled between international tour operators, online intermediaries, wholesalers and leading European suppliers. In advance of the event, all delegates attending are able to request the 15 companies they would most like to meet. Suppliers meet buyers according to their pre-arranged appointment list, which features up to 36 meetings - each lasting 12 minutes - over the course of the day. There are additional networking opportunities at the workshop lunch and a post-workshop drinks reception.

"GEM is a key travel trade event," said Geraldine Huitric of Shakespeare's Globe, a major tourist attraction in London. "The Workshop offers fantastic opportunities to meet our principal clients and conclude new deals on just one day - definitely a must-attend!"

The GEM Workshop is an ETOA members-only event; if you are not yet a member of ETOA, please contact Jay Munro-Michell on +44 (0)20 7499 4412 or jmunro-michell@etoa.org.

www.etoa.org/gem.aspx

NEWS IN BRIEF

Scandic enables information for disabled guests

ETOA member Scandic Hotels has launched a new service for guests with special needs. Information about access for people with limited mobility, and options for guests with other needs such as allergy-free dietary requirements, is being brought together on the home page of every hotel in the group. "Scandic has become the first hotel chain to gather all its information for guests with special needs in one place. Every hotel's homepage now provides answers to the 80 most common questions. For example how far it is from the car park to the entrance, whether there is a hearing loop and how wide the door to the room is," explained Magnus Berglund, the hotel chain's Disability Ambassador. (...)  

Choice Hotels expands in Sweden

Choice Hotels Scandinavia is to take over management of Copperhill Mountain Lodge in Åre, Sweden. The 5-star property was opened in December 2008 as a Swedish Design hotel and has 112 suites and guest rooms, a gourmet restaurant, spa complex and a private ski lift to the Åre ski resort. "We believe strongly in the opportunities that the facility offers, and in Åre as a destination," said Torgeir Silseth, Managing Director, Choice Hotels Scandinavia. "We hope that the snow comes early to Åre this year so that we can get started as soon as possible." Åre is about 50 miles from the city of Ostersund and hosted the 2007 Alpine World Ski Championships. In June this year, Choice purchased the Nordic Light Hotel and Nordic Sea Hotel in Stockholm, and Choice has signed a contract for a hotel at Arlanda Airport, to be opened in 2012.   

Nomination for Budget Travel Website

Online budget travel specialist, HostelBookers.com, has been nominated for two categories in the British Travel Awards - Best Accommodation Booking Website and Best Trade Booking Website. HostelBookers began in 2003 as a channel for booking budget accommodation with no booking fees charged to the customer. Over 10,000 properties are listed, ranging from camping, self-catering apartments and guesthouses to hostels and budget hotels, and local language websites in Spanish and German have been launched. Hostelbookers is an ETOA member.

Tourism Laws to Change Across Europe

The European Commission is to bring forward new proposals for extending consumer rights for holidaymakers. No official announcement has been made so far in Brussels. The disclosure that reform of the Package Travel Directive is on the cards came in remarks made by EU Consumer Affairs Commissioner, Maglena Kuneva, during a visit to Ireland last week. Ms Kuneva admitted that new measures at European Union level would mean additional costs for businesses in the travel and tourism sector. The Commission is expected to publish its detailed proposals in the next three months and open a period of consultation with stakeholders including tour operators and travel agents, Internet intermediaries, hotel groups and airlines. New legislation will then be drafted and put before the European Parliament. The process could take about two years for new laws to come into effect. Speaking in Dublin, Ms Kuneva said the protection offered to holidaymakers under current EU law was out of date and did not reflect the rapidly changing nature of tourism, particularly the use of the Internet for making holiday arrangements and bookings. When the Package Travel Directive was introduced in 1990, most holidays were chosen from brochures and booked through travel agents. Now half of European holidaymakers organise their own holidays through the Internet and fall outside consumer protection. ETOA's Executive Director, Tom Jenkins, has pointed out for many years that the Package Travel Directive is out of date. The emergence of the Internet as a main stream channel for travel bookings has left traditional booking patterns over-regulated. New legislation must address the competitiveness of Europe as a destination and as a place to establish travel businesses.

ETOA Monitoring Scotland Boycott Threat

ETOA is closely monitoring the Boycott Scotland campaign by protesters in the USA angered by the release of the Libyan Basset Ali al-Megrahi, the only man convicted of the 1988 bombing of Pan Am flight 103 over Lockerbie. The website BoycottScotland.com is an anonymous Internet protest calling upon Americans to avoid Scotland and Scottish products in protest at al-Megrahi’s release.

VisitScotland, the Scottish national tourist board, has received emails from a small number of people cancelling their trips to Scotland since this news, but apart from this they say it is ‘business as usual’. “We understand that feelings are running high. However, the strong and enduring relationship between Scotland and the US will continue, as will the friendship between the American and Scottish people. Our priority is ensuring that American visitors and tourists are extended a very warm welcome to Scotland,” said Kerry Thomson, VisitScotland spokeswoman.

Make a Stand with ETOA at WTM 2009

ETOA has secured a prime position for its stand at this year’s World Travel Market and is inviting members to share the space as a price-effective way of participating at the top networking event in the travel and tourism calendar.

World Travel Market, one of the biggest global travel trade events, is being held at the ExCeL convention centre in London’s Docklands on 9-12 November 2009. As in previous years, ETOA is offering the facility of its enlarged stand to members who need a place to meet and network with industry contacts, at a lower cost than hiring their own stand for the four-day show.

Members sharing the ETOA stand as Exhibiting Partners will get an allocation of invitations to the first Exhibitor Invitee-only event on the opening day of WTM, as well as a company listing in the WTM catalogue and website (subject to WTM deadlines), and display space for brochures and other materials. The WTM entrance pass that is included saves exhibitors the visitor fee which on the Monday alone would cost £305.

For further information about exhibiting or meeting on the ETOA stand at WTM, contact Blanca López de Uralde on +44 (0)20 7499 4412 or email: blopez@etoa.org or visit the WTM page on the ETOA website at www.etoa.org/WTM.aspx.

NEWS IN BRIEF

Cheap Rooms, Costly Mistake

The Crowne Plaza hotel near Venice has sold rooms for one cent per night because of an error on the company's web site. By the time the hotel management realised what was happening 1400 room bookings had been taken from 228 people. The error was traced to the company's offices in Atlanta, USA. The rooms should have cost €150. "Although a pricing error, IHG is committed to honouring the 1-cent rate for guests who have a valid confirmation," said group media relations manager, Monica Smith. The hotel is estimated to have lost about €90,000 because of the mistake.

Rome Rip-off Restaurant Closed

A restaurant in Rome at the centre of an international scandal for overcharging two Japanese tourists has been shut down. The Japanese diners were charged almost €700 for a lunch of pasta, wine and fruit salad, including an inflated service charge of €115. The Italian tourism minister offered the couple a free trip to Italy when the rip-off became public. On the orders of Rome's mayor, health inspectors and officials of the finance police have since raided the restaurant, near the Piazza Navona, and closed it down.

City of Culture Competition

The UK's DCMS and the Department for Communities and Local Government have launched a new City of Culture competition, aimed at building on Liverpool's success as European Capital of Culture in 2008. Bids are invited from cities, closely linked urban areas, or cities with their surrounding areas. While there will be no funding attached to the awarding of the title, various bodies have committed to supporting the winning city by holding high profile events in the destination. Bidders will have until 16 October this year to submit an outline application, with a deadline of 11 December for initial bids. An independent advisory panel will recommend a short list to be announced early in 2010.  Short listed bidders will then have until 28 May to submit their full and final bids. The winner will be announced by the Culture Secretary later in the year.

Sixth European Bus and Coach Forum

Rules and restrictions on coach travel around Europe will be the focus of the sixth European Bus and Coach Forum, to held in Kortrijk, Belgium, on 16 October. The event is being organised jointly by ETOA, IRU, ECTAA and FBAA and will bring together business leaders, decision-makers and officials from local, national and international institutions to exchange views and experiences of the effects of legislation and regulations on coach travel in Europe.

Discussions will focus on the impact of increasingly restrictive low-emission zones in cities on the tourism industry and economies, as well as on the upcoming EU legislation on the rights of passengers on bus and coach transport. The working title of the conference is “Boosting European Coach Tourism and Travel Through Business-Friendly Rules”.

“It is high time for the bus and coach industry around the world to take its future into its own hands,” said Graham Smith, CEO of Heyfordian Travel and vice-president of the IRU. “With this Forum, we intend to demonstrate to our partners and to policy-makers that buses and coaches can offer sustainable mobility and travel solutions for all, provided rules and regulations enable us to do so.”

European Tourism Forum

European tourism in the economic downturn is the theme of a one-day conference in Brussels on 9 October. The opening session of the 2009 European Tourism Forum will be devoted to a study on EU tourism and the global economic crisis. The forum is part of two days of talks beginning with a conference on regional tourism, specifically relating to the activities of the Network of European Competitiveness and Sustainable Tourism Regions, on 8 October which is European Tourism Day. Both events will be held at Square Brussels Meeting Centre, 8 rue du Musée, Brussels.

The European Tourism Forum, organised by the European Commission’s Tourism Unit, will open with a keynote speech by Gunter, Verheugen, Vice-President of the Commission, an address by Brian Simpson, Chairman of the European Parliament’s Transport and Tourism Committee, and a speech by Hervé Novelli, the French Minister for Tourism.

NEWS IN BRIEF

New Online Chief for Kuoni

Kuoni Destination Management has appointed Frank Wöller to a newly created role of Head of Global Sales FIT, in the unit which specialises in online distribution, Kuoni Connect. “His main responsibilities will include further developing existing business and exploring new streams of revenue in the area of non-flight related tourist services for individual travel,” said a Kuoni statement. Wöller has held various senior posts in the travel industry, most recently as head in incoming for TUI Suisse. He takes up the Kuoni appointment on 1 September.

Turkey Gains in Currency Sales

The Turkish Lira is the most popular currency for travellers after the Euro and the US Dollar, according to a new currency index published by American Express Global Foreign Exchange. Demand for the Turkish currency in the first half of 2009 has increased by one third on the same period last year, in part bolstered by the weaker Sterling-Euro exchange rate as UK travellers look increasingly for holidays outside the Eurozone. The trend is reflected also in a Post Office survey of holiday currencies. It reported a 43 per cent rise in sales of the Turkish lira so far this year, compared with the first half of 2008. It noted that Turkey is one of the few holiday spots in the world where the Pound will buy more than a year ago – up by 8.5 per cent.

Oberammergau Support for Tour Operators

The organisers of the Oberammergau Passion Play have launched a web site designed to support tour operators selling the 41st season in 2010. The Passion Play is a cultural and religious tradition dating back to 1633 and is a festival staged every ten years.

The Play is to be performed five nights per week from May 15th to October 3rd 2010 in a purpose built theatre in the village of Oberammergau in the Bavarian Alps. All performers are residents of the village, including hundreds of children who will take part in large crowd scenes. The director of the 2010 Oberammergau season is a professional theatre director, Christian Stückl, managing director of the Munich Volkstheater. The part of Jesus is to be played by a psychologist and the part of Mary by a flight attendant.

The new English language web site is now live, and is undergoing continuing development. The newest feature is a listing of all tour operators who have been granted allocations of Oberammergau "arrangements" - packages including reserved tickets for a performance of the Passion Play and one or two nights' accommodation in local hotels, guest houses or private homes in Oberammergau and the surrounding Alpine villages.

Mike Adams, of TourComm Germany, a spokesman for the Oberammergau Organising Committee, explained that the new website was part of an effort to support tour operators who had made a commitment to include Oberammergau in their 2010 European tour offering. "We are well aware that the festival is selling more slowly than on previous occasions. There are many reasons for this, and a lot has happened since the last season of the Oberammergau Passion Play in 2000. Inflation and a weaker pound and dollar against the Euro have taken their toll, and now we are in a worldwide economic recession.

NEWS IN BRIEF

Turkey on YouTube

The Turkish Culture & Tourist Office has launched its own channel on YouTube. The channel's playlists include destination spotlights of seven highlighted tourism regions in Turkey: Marmara, Aegean, Mediterranean, Black Sea, Central, Eastern and South-eastern Anatolia. There are special features on sports activities in Turkey, such as rafting, golf, skiing and sailing. The country's current promotional videos and advertisements can also be viewed on the site.
www.youtube.com/user/TurkeyTourismOffice

European Tourism Forum 2009

The Tourism Unit of the European Commission confirmed that the next European Tourism Forum will be held in Brussels on 9 October 2009. The proposed title is "EU tourism and the economic downturn: new opportunities for a sustainable future" The initial session will be dedicated to the study on EU tourism and the economic crisis, contracted by the Commission to the consultancy ECORYS.

Older Generation to Dominate Tourism

A report by the German tourism analyst ADAC Reisemonitor, predicts that by 2020 every second holidaymaker will be over the age of 50, but the travel industry is not yet taking notice of this demographic change. "This is a challenge that the industry will have to face," said Dr. Martin Buck, Director of the Competence Center Travel and Logistics at Messe Berlin.

"With increasing numbers of older vacationers, this target group is acquiring growing importance for the travel sector," he said. "One does not have to have a lot of imagination to realise that the over-50 target group are the ones that will help the travel industry to achieve further growth. That is why knowledge about the needs, demands and requirements of these 'best agers' regarding their travel plans are so important for the travel industry.

According to the research, carried out in cooperation with ITB Berlin, the traditional beach holiday ceases to be attractive as people grow older. Instead, health and wellness vacations tend to become more popular, as well as destinations in Germany and the Alpine regions. Tours, cultural and study trips and city breaks are very popular among the older generation. Excursions are an important holiday activity. Older travellers want to expand their horizons, acquaint themselves with foreign cultures, and increase their knowledge while on holiday.

Tourism Downturn Easing

A new report on tourism trends for Europe suggests the decline is easing, but it is likely to take another two years before international arrivals recover to 2008 levels and could start to pick up from 2012-2013.

The report says air passenger demand continues to fall but the double-digit decline seen in the first quarter of 2009 has slowed to 7-8%. The accommodation sector has also declined less sharply.

In its second quarterly report, European Tourism in 2009, the European Travel Commission has brought together the findings of several surveys including data gathered by the UN World Tourism Organisation, Oxford Economics, IATA, Tourism Economics and the European national tourism organisations.

According to Eurostat’s monthly surveys of travel and tourism businesses, industry confidence about the prospects for demand over the next three months has improved in the hotel, restaurant and transport sectors. “While still quite negative, the steady improvement in these indicators over the most recent months lends support to the idea that worst of the decline is behind us,” says the ETC report.

Outbound travel generated by European markets and arrivals in Europe are both predicted by Tourism Economics to decline by five per cent in 2009. The UNWTO forecast is more pessimistic, putting the overall decline at between five and eight per cent. According to the UNWTO’s latest World Tourism Barometer, international arrivals to Europe showed a decline of 10.4% in the first four months of 2009. An analysis by Deloitte & Touche shows that the occupancy rate of hotels in Europe dropped from 61.6% to 55.2% in the same period compared with 2008. The greatest declines were seen in Budapest, Amsterdam and Athens. No European capital showed an increase in hotel occupancy rates year-on-year. As a consequence of the economic crisis, average room rates in Europe went down by more than 11 per cent and revenue per available room (RevPAR) declined 20.5%.

Obama Effect Could Stimulate US Travel

Americans should follow the example of President Obama and travel around the world this year, according to an appeal from Bob Whitley, head of the US Tour Operators Association (USTOA). The association is calling on Americans to take advantage of the goodwill and positive image generated by President Obama’s policy of engagement and openness with world leaders.

“By travelling, each American becomes an unofficial global ambassador,” said Whitley. “We encourage Americans to follow in President Obama’s footsteps and explore the vast world outside our borders and underscore American values around the globe.”

USTOA feels that this year could be the best in many years to travel overseas with good deals on air travel and hotel accommodation rates. It points out that the US dollar buys at least 20% more than last year in Europe. “The dollar’s stronger buying power, combined with the need to increase business revenues during the recession has led to any number of good deals,” says Whitley.

NEWS IN BRIEF

More European Parliament Committees Set to Work

The European Parliament’s Economic and Monetary Affairs Committee will be chaired by British Liberal Democrat MEP Sharon Bowles. The 48-member ECON committee is responsible for the discussions in the European Parliament on taxation issues including VAT.

The Internal Market and Consumer Protection Committee is chaired by the West Midlands Conservative MEP, Malcolm Harbour is the leading European Parliament Committee on the proposal for a consumer rights Directive. Mr Harbour has a special interest in cutting red tape and introducing measures to allow companies and consumers to benefit from competition and choice in services across Europe. In 2006 he was voted the most Business Friendly MP/MEP, as chosen by the Forum of Private Business.

Vienna Boosted by Bruno

The website Hotels.com has reported a dramatic rise in searches for hotels in Vienna following the London premiere of Brüno,in which comic Sacha Baron Cohen plays an Austrian fashion reporter. Online enquiries for hotels, clubs and restaurants in the Austrian capital rose by over 120 per cent. “It’s interesting to see the impact a character like Brüno can have on people’s behaviour. He might not be the obvious ambassador but he is certainly piquing the interest in Vienna,” said Alison Couper, Director of Communications for Hotels.com, an ETOA member company.

Belfast Shows the Way

Belfast City Council has won an award for its scheme to direct visitors more clearly to city centre attractions. Its new visitor signage scheme, which features signposts and information boards at a wide variety of key locations around the city, is being hailed as an example of best practice.

Belfast hosted over 7m visitors last year and the council’s improved signposting has won the Centre Move award from the Association of Town Centre Management.

New EU Transport and Tourism Committee Sets to Work

The new Transport and Tourism Committee of the European Parliament has begun its work, under the leadership of Labour MEP, Brian Simpson. He was elected to chair the Committee for the new four-year term of the Parliament, following the elections in June, and the committee held its inaugural meeting in Strasbourg last week.

Mr Simpson, who is one of the two MEPs representing the northwest of England, has been the transport spokesman for the Socialist Group in the European Parliament for some years, and is a champion of passenger rights and consumer protection. In 2004 he was responsible for steering through the legislation to force airlines to compensate passengers for cancellation, delays or being denied boarding.  The Committee has also worked on increasing accessibility to air and road transport for disabled people and on "blacklisting unsafe" airlines.

ETOA Executive Director, Tom Jenkins, welcomed Mr Simpson's chairmanship and emphasised the opportunity to tackle the key issues at a critical time for the industry.  "In view of Europe's declining share of world tourism, the committee has a key role in ensuring that existing and new initiatives benefit the European tourism economy.  The three top issues for my members are reform of the Tour Operators Margin Scheme, reform of the Package Travel Directive and easing entry restrictions.  First, the Tour Operators Margin Scheme (TOMS) makes the costs of locating an inbound tour operating company in the EU so uncompetitive that many companies have been driven offshore and TOMS is set for changes which are likely to cause further difficulty!  Second, the Package Travel Directive is still the main legislation governing tourism in Europe, despite having long been rendered obsolete by the emergence of the internet.  Third, current security and visa requirements are so onerous that they are having a disastrous impact on tourism from emerging markets.  We are keen to collaborate with the committee to ensure these issues are addressed and its work has industry-wide support".

The Travel Club for Travel People

A new private members club for travel professionals is being launched in central London. Simply named The Travel Club, the new venture will share the premises of the Navy and Military in St James's Square - best known as the "In and Out" Club because of the words inscribed either side of the entrance to its former site in Piccadilly.

The Travel Club will open officially at the end of September but ETOA members especially are invited to apply now to join as Founder Members. The £250 joining fee is waived for anyone joining before 25 September as Founder Members.

The club has 49 bedrooms and suites available from £100 to £200 per night. We understand there are still rooms available for the period running from the ETOA Global European Marketplace (5-7 November) to the week of World Travel Market (9-13 November).

The man behind this initiative is Tom Nutley, who is ETOA's Head of Industry Liaisons. The purpose, according to Tom, is to give travel managers a convenient meeting place in the heart of London. "There is no other private members-only club of its kind dedicated to the travel & tourism industry.

"Travel business is best conducted face to face - that's proved by the success of exhibitions - but I've always thought this should be continued throughout the year.

NEWS IN BRIEF

UK Passport Fees Rise

The cost of a UK passport is going up from September. A ten-year adult passport will go up from £72 to £77.50. The Identity and Passport Service (IPS) said the rise was needed to cover the cost of security enhancements, and because there had been a decline in the number of passport applications during the economic downturn. The rise will come into effect on 3 September, to reduce the impact on holidaymakers during the high season. "The Identity and Passport Service has been able to freeze passport fees since October 2007 due to efficiency savings despite the delivery of a new generation of passport. This year demand has fallen and we must ensure this lost revenue doesn't affect our ability to deliver a quality product and excellent customer service," said James Hall, IPS Chief Executive. The cost of same-day renewal of a passport goes up by £15.50 to £129.50.

Tauck World Discovery Honoured

The US tour operator and ETOA member firm, Tauck World Discovery, has been named Best Tour Operator - Europe, in a poll by a leading US travel trade journal. "Europe is our most popular destination and it's a very competitive market, so it's especially gratifying to be recognized as the best tour operator there," said Dan Mahar, Tauck's CEO.  The award was presented at a celebration of Western Agents' Votes of Excellence (WAVE) in Beverley Hills. Tauck operates nearly 50 different land journeys, small-ship cruises and riverboat cruises in Europe.

The Public Investment for Piraeus Port

The European Commission has approved the public financing of improvements to the passenger section of the Port of Piraeus. The Greek authorities plan to build a pedestrian bridge to provide safer passage between the port and Athens-Piraeus railway station, and new jetties to accommodate more ships serving the Greek islands. The construction project is likely to cost about €5 million. The Commission said the works are in line with EU transport policy and would improve links between the mainland and the Greek islands, and so no issues of state aid for commercial enterprises were raised.

ETOA makes statement on Tourist Guides in Croatia

The tourism authorities in Croatia had expressed concern that unqualified and untrained "guides" were operating in the cruise ports and other heritage sites. ETOA was invited to give its opinion on the subject at a workshop on Tour Guiding organised by the Croatian Chamber of Economy in Zagreb. In view of Croatia's future membership of the EU, the aim of the workshop was to discuss initiatives on standards, training, qualification and regulation of tourist guides across the European Union, and to present examples of best practice. Vlasta Klarić of the Croatian Chamber of Economy hailed the workshop a success, stating that "the exchange of experiences opened new communication channels, created a new network of knowledge and opened a way to sustainability of the cultural diversity and richness of European identities."

Taking part in the full-day workshop were tourist guides, representatives of professional associations of guides, representatives of Croatia's Ministry of Tourism, the Ministry of Culture, the Ministry of Science, Education and Sports and ETOA, represented by Nick Greenfield.  "We recognise the importance oflocally qualified guides to escorted tours in Europe. On the whole they add to the experience of our consumers," he said. ETOA recommended that local guides should be nurtured, but restrictive monopolies have to be avoided. "Local laws protecting guides and guiding invariably lead to anti-competitive situations that protect mediocrity."

NEWS IN BRIEF:

Visa-free Travel for Balkan States

The European Commission has announced that citizens of Serbia, Montenegro and the former Yugoslav Republic of Macedonia will be allowed visa-free travel around continental Europe. From next January residents of the Balkan states will be free to travel within the countries signed up to the Schengen common visa agreement - which includes all the European Union states except the UK, Ireland, Bulgaria and Romania.

VisitEngland Board Appointments

Derek Wormwell, chief executive of Shearings Group and Nick Varney, chief executive of Merlin Entertainments have joined the board of Visit England. Their appointments were announced by the Tourism Minister, Barbara Follett and are for four years.

France Cuts VAT in Restaurants

The French government has cut the tax on restaurant dining. The VAT charged on meals in restaurants has been reduced from the luxury tax level of 19.6 per cent to just 5.5 per cent - the rate charged on food sold in supermarkets. The reduction in the VAT rate when eating out effectively compensates for last year's strengthening of the euro against the pound.

Rise in UK departure tax could cut London's European gateway role

London could lose its place as a main gateway to Europe if the UK Government goes ahead with plans to increase Air Passenger Duty (APD) next November. The warning comes from ETOA, which represents inbound European tour operators.

The Netherlands and Belgian governments have this month abolished departure taxes in an effort to give a stimulus to tourism through their international airports, raising concerns amongst European tour operators that Amsterdam and Brussels may be more attractive and economically efficient start and end ports for inbound tour groups from overseas.

The cost of ADP, when added to other government charges such as visa fees, is making the UK an expensive destination for the start and end of group tours to Europe, according to ETOA’s Executive Director, Tom Jenkins. With the UK standing outside the Schengen Agreement on a common visa for travel to Europe, the country is looking increasingly like an optional add-on than a key element of a visit to Europe for many in-bound long-haul travellers.

NEWS IN BRIEF:

ETOA Will Advise Croatia on Tourist Guiding This Friday

As part of the process of applying to become a member of the EU, Croatia is currently reviewing its legislation in a number of economic sectors, including Tourism.

This Friday, there will be a workshop in Zagreb on tourist guiding and ETOA has been invited to provide input. The event is being organised in co-operation with Croatian Chamber of Economy and the audience is expected to include professional associations of tourist guides, representatives of the Ministry of Tourism, the Ministry of Culture and the Ministry of Science, Education and Sports.  Nick Greenfield will be presenting ETOA’s point of view and we will report in more detail in the next ETOA Briefing.

Oberammergau Responds to Industry Concerns

Tour operators have won a major concession over reservations for next year’s season of the Oberammergau Passion Play.  They have been given more time to pay the balance on block reservations allocated on payment of a deposit. Sales of tickets and accommodation packages have been so slow, especially in North America, that there were fears that thousands of allocations would have to be returned unsold.

The 2010 Passion Play opens on May 15 and the season runs until the first week of October. The problem for tour operators was that the Organising Committee in Oberammergau had demanded full payment by the end of September this year, but few people are prepared to commit to a European tour so far ahead of time in the current economic climate.

The concerns of tour operators were taken up by ETOA, which has welcomed moves to relax the payment protocol.

Tour operators were originally allocated a block of reservations on payment of a 20 per cent deposit in 2008, and full balances were due for payment by 30 September this year.  The Organising Committee in Oberammergau has accepted that an interim further deposit of 30 per cent should be paid by September and the final balance of 50 per cent should be paid by 31 January 2010.

NEWS IN BRIEF:

The Paris Ile-de-France tourist board’s annual workshop will take place on the 6th October at the Royal Opera House in London
The event will, as ever, allow the UK travel trade the chance to meet with a wide range of suppliers from this key destination. Among the 35 exhibitors there will be hotels, ground handlers, excursion organisers, local tourist boards, sites and attractions, as well as our transport partner Rail Europe.

CITY BREAK PREVIEW

City Break 2009 takes place next week in Gothenburg, Sweden. The event, managed by ETOA in partnership with Reed Travel Exhibitions, allows city tourism suppliers in Europe to meet with leading tour operators and online agents.

City Break brings together buyers and suppliers using a system of pre-scheduled appointments. Tour operators, wholesalers and online distributors have the opportunity to meet hoteliers, city tourist boards and ground service suppliers and source new destinations and new product.

The great European cities, from Amsterdam to Zurich, will be represented, including Antwerp, Barcelona, Bilbao, Bratislava, Brussels, Copenhagen, Dublin, Geneva, Helsinki, Ljubljana, Madrid, Malmo, Oslo, Rotterdam, Salzburg, Split, Stockholm, Valencia, Vienna, Warsaw, Zagreb and many more. The cities of Eastern Europe are well represented, including Riga, Vilnius, Tallinn, Warsaw and Belgrade.

There will be 95 city exhibitor booths with their selected hotelier suppliers; 85 professional buyers from 70 companies, and over two dozen journalists.

The European Tour Operators Association (ETOA), which took over the running of the event from Reed Travel Exhibitions earlier this year, has made a number of changes. This year, for the first time, travel journalists will be included in the appointment system and exhibitors will be able to request appointments as well.  The Association has also raised the standards for attendance; it requires that buyers must have substantial travel business to place and has rejected over 30 applications from people who cannot demonstrate this.

NEWS IN BRIEF:

City Flight Deal for Young People

Air Berlin has launched a special deal to encourage young people to visit some of Europe’s finest cities during the summer holidays. The Air Berlin city tour pass gives young people aged between 18 and 27 the chance to travel on five flights in the Air Berlin network...

OBERAMMERGAU SALES START SLOWLY IN CORE US MARKET

Tour Operators promoting the 2010 Oberammergau Passion Play are reporting a sluggish start and there are fears that the core US market, may have collapsed. It could mean that thousands of unsold ticket and hotel allocations may be handed back to the Organising Committee in Oberammergau as the deadline for full payment approaches.

Every 10 years a huge boost is given to European inbound tourism by the staging of the Passion Play in Oberammergau. Typically around a quarter of a million tourists come from North America to see it and it acts as a catalyst for bookings across the whole of Europe. For the first time in living memory, sales appear to be slow.

Tom Jenkins, Executive Director, European Tour Operators Association (ETOA) says: “My members are telling me that their bookings are down and they are holding allocations they can’t shift and will have to give them back before the October deadline. If this happens, it will be the first time that Oberammergau will have had returns. Normally the entire season is sold out far in advance.”

NEWS IN BRIEF:

City Break Exhibition 2009, 15^th – 16^th June

With approximately two weeks left before the start of the City Break Exhibition, over 200 travel and tourism companies have already confirmed attendance. This buyer driven specialist travel trade event dedicated to the growth of the city break sector has already attracted as many as over 80 buyers, comprising leading names within the European Tour Operating industry. Approximately 130 registered exhibitors include European city tourist boards, numerous accommodation providers, transport organisations, inbound tour operators, DMCs, city attractions and entertainment providers.

ETOA GUIDELINES ON SWINE FLU

Ever since Dr Margaret Chan, the director of the World Health Organisation (WHO), raised the pandemic alert on the H1N1 virus “Swine ‘flu” to Level Five, worldwide concern has been expressed at the possibility of a rampant disease cutting down individuals on every continent. The early stages of any epidemic are characterized by ignorance as to what is happening: predictions are uncertain and naturally prone to morbid exaggeration. Governments have to plan for the worst. The press has to attract attention with sensational projections of doom. When no-one knows enough, everyone is free to imagine the worst.

We are already reaching the stage where governments have threatened irrational reactions. This has included the killing of pigs, (a bizarre act of “species cleansing”) the issuing of a travel advisories against most of Europe and numerous proposed bans on travel to Mexico. Even the WHO has pointed out that such measures are futile. When their governments start to counter imaginary threats, travellers follow suit.

Whatever the threats of a “pandemic” pose to the world, currently the risk posed to potential travellers within Europe is nil. Even were the disease to become far more deadly and virulent than currently proved, death from H1N1 Swine ‘flu is less likely than death by falling trees, bee stings, snake bites, lightening strikes  or a wide variety of bizarre modes of fatality. Even if it is not contained, it seems to be respond to treatment and is not as deadly as first suggested. It is far less of a threat to life than existing endemic ‘flu strains.

Responding to this “threat” seems to pander to stupidity.

NEWS IN BRIEF:

Dover profits sail ahead

The Port of Dover is doing well despite the economic downturn, with just about as many passengers as last year taking car ferry journeys across the Channel. In its annual report, the port operator said revenues rose for the seventh year in a row, up 5.3 per cent to £60.8million, and operating profit was up by 2 per cent to £15.1 million. Tourist car journeys were virtually unchanged at 2.8m, aided in part by the disruption to the Channel Tunnel train services by the tunnel fire last year.

PROGRESS ON REFORM OF TOUR OPERATORS’ VAT RULES

A new round of negotiations that could lead to reform of the VAT arrangements for tour operators looks set to begin next year. Spain takes over the revolving Presidency of the European Union in January and has indicated that the Tour Operators Margin Scheme (TOMS) will be on the agenda for the first half of 2010.

Belgium, Hungary and Poland, who are in line after Spain for their six-month terms heading the EU structures, have also indicated that they would take the issue forward.

DESTINATION EUROPE IN THE US MEDIA

For Americans, Europe is the hot ticket for holidays this year, judging by the coverage now being given to European destinations in the US media. This is in spite of the current economic crisis, or perhaps a consequence of it, because the theme that is common to the coverage on the travel pages is that Europe is affordable and there are deals to suit all budgets.

The New York Times travel section last Sunday was largely given over to city breaks on a budget, including destinations such as Barcelona, Madrid, Rome, London, Copenhagen and Dublin. The Washington Post is also promoting affordable European city breaks, most recently Barcelona, Dublin and Florence.

NEWS IN BRIEF

Portugal moves on Poland and Russia

The Portuguese airline TAP has opened sales offices in Warsaw and Moscow, in a move to boost outbound tourism from Poland and Russia. TAP will begin flights from the two capitals in June, on the basis of five flights per week.  “We aim to promote business and leisure travel from Poland and Russia to Portugal’s capital Lisbon, as well as other important Portuguese destinations like the Algarve, Porto, Madeira and the Azores,” said Riccardo Lo Presti, TAP’s General Manager for Eastern Europe.

EU clears state aid for Tuscany airports

The European Commission has approved plans for the state funding of development projects at five local airports in the Tuscany region of Italy. The aim is to integrate all the airports into the European air transport network and improve connections with major cities, to boost tourism and economic growth. The region’s main airports are Pisa, Florence and Perugia.

CAA Consults on rise in ATOL charges in UK

The UK’s Civil Aviation Authority (CAA) has published a consultation document on the future level of the ATOL Protection Contribution (APC) paid by tour operators to protect holidaymakers.

The CAA proposes the ATOL Protection Contribution rate paid by ATOL-holding tour operators should be set at £3 per passenger from 1 October 2009.

The rise from the current level of £1 per passenger is intended to ensure that the ATOL scheme continues to provide effective financial protection for holidaymakers. The CAA says a £3 charge offers a reasonable balance between setting the rate as low as possible while providing resilience in the current period of economic uncertainty.

CITY BREAKS OFFER STRATEGY TO COMBAT RECESSION

Recent surveys and market research regarding the economic downturn’s effect on tourism are virtually unanimous in finding that most people are determined to take a holiday this year, though it’s likely to be shorter and more focused on good value.

This is great for the city break sector. The decline in business travel resulting from the economic downturn has focused minds on how to fill empty rooms in city centre hotels through other markets. The answer is really very simple: the city break, for leisure, sightseeing and a relaxing change of scene. It doesn’t mean that people are turning their backs entirely on sun and sand resort holidays, in favour of cultural tours and the café society of Paris and Vienna, but there are signs that there is scope for new growth in city tourism, even in a period of recession.

This is why the forthcoming City Break exhibition, managed by ETOA in partnership with Reed Travel Exhibitions, in Gothenburg in June is more important than ever this year.

ETOA HOSTS ECOMMERCE SEMINAR AT EYEFORTRAVEL

ETOA will once more be hosting a free seminar at Eyefortravel’s Travel Distribution Summit in London on 20th May.

The 2-hour session on Design Ergonomics and SEO features key advice on how to get the most value from your website design and online marketing spend.

Speakers include Alex Bainbridge of TourCMS, who runs a travel ecommerce blog and forum, and has worked with airlines, hotel companies and tour operators, and Kostas Akeloglu who heads marketing agency Social Media, with a large client base in the travel trade.

Start: 9:45am / Duration: 2 hours

For more information and to reserve your place at the seminar, visit www.etoa.org/seminars.aspx or call Helen Zou at ETOA on +44 (0)20 7499 4412.

Special discount for ETOA members at Eyefortravel TDS conference (19-20 May)

ETOA members attending the seminar can receive a 25% discount on admission to the rest of the Eyefortravel conference, which runs from 19-20 May. For current admission prices please visit:

https://secure.firstconf.com/travel/tds/conference/register-logix.asp.

To book your conference place at the discounted price, contact Eyefotravel’s Tim Gunstone at tim@eyefortravel.com, quoting “TDS ETOA BOOKING” in the subject line.

ETOA TOUR OPERATORS WIN ROYAL SEAL OF APPROVAL

Two tour operator members of ETOA have been awarded the prestigious Queen’s Award for Enterprise.  China Holidays, an inbound tour operator specialising in bringing Chinese visitors into the UK, and wholesale tour operator CHR Travel Ltd were both recognized for their outstanding achievements in International Trade.

The announcement was made today – the Queen’s birthday – following a recommendation from the Prime Minister.   It is the first time any tour operator has been granted the Queen’s Award for International Trade in at least three years.

FREE PUBLICATION FOR INDIVIDUALS TRAVELLING IN THE EU

Brussels communications agency Euresin offers a free EU publication on behalf of the European Commission, called "Travelling in Europe".  This is a general, informative leaflet for EU visitors with practical advice and helpful tips on a wide range of subjects, from what documents are required, to healthcare, consumer rights and using the phone within the EU. 
This exists both as a printed leaflet and as a website.
The pdf can be downloaded at: http://ec.europa.eu/publications/booklets/eu_glance/78/en.pdf
and the website is at: http://europa.eu/abc/travel/index_en.htm.  
The leaflet is ideal for inclusion in pre-travel information packs and a digital link could be included when sending tickets or confirmation details digitally. Both the leaflet and the website are available in all 23 European languages and are free of charge.

To order copies of the leaflet or if you are interested in posting a digital link, please contact:
Vicky Morrison at vicky.morrison@euresin.eu or on 0032 475 976 652.

NEWS IN BRIEF:

Airlines expand European leisure routes

EasyJet has introduced new services to key European city destinations. It has already added Munich, Vienna and Zurich to its Gatwick services. At the end of April and beginning of May it is due to open further Gatwick connections to Bodrum, Dubrovnik, Naples and Santorini and from July easyJet will fly to Milan, Mahon and Montpellier out of Luton. WizzAir, the central and eastern European low-cost carrier, is expanding its routes from Luton. It starts a twice-weekly summer service to the Bulgarian resort of Varna, to run from the end of June to September.

Eye on UK Budget for cuts in travel costs

Tourism bodies will be scrutinising the UK Budget this week for any signs of easing the cost of travel. ABTA wrote to the Chancellor, Alastair Darling, earlier this month requesting a meeting to discuss state-imposed charges such as visa fees and air passenger duty (APD). “We would urge you to follow the lead of the government of the Netherlands, and give consideration to withdrawing APD, or at the very least, re-considering the second increase planned for 1 November 2010,” wrote ABTA chief executive Mark Tanzer.

No Time Wasters at City Break

A new report highlights the importance of short breaks in the spending plans of travellers, in a time of economic stress. The Travel Nation Report produced for Eurostar says more people than ever are expressing a preference for several “top-up” breaks spread over the course of the year rather than one long summer holiday. This is good news for the city break market, and comes as plans are being finalised for City Break 2009, in Gothenburg, Sweden on 15-16 June.

This year City Break is being run by ETOA in partnership with Reed Travel Exhibitions, and this partnership signals an enhancement of the City Break show, now in its fourth year. ETOA was invited to manage and operate the event because of its access to high calibre buyers among tour operators, and its proven track record in running commercially successful travel trade workshops.

City Break 2009 is a workshop-based exhibition allowing key city break suppliers in Europe to meet senior purchasing managers from leading tour operators and online agents for pre-scheduled appointments. ETOA is pursuing a “no time wasters” policy for City Break.

NEWS IN BRIEF

Deal to revive Swansea-Cork Ferry

An agreement has been reached to restore ferry services between Swansea and Cork, which were withdrawn in 2006. A consortium led by West Cork Tourism has raised the money to buy a ship, the Julia, from a Finnish bank following a deal with creditors of Stella Naves Russia line, the ship’s owners.

Tom Nutley joins ETOA for City Break

The former chairman of Reed Travel Exhibitions, Tom Nutley, has joined the ETOA team as Head of Industry Liaisons. He will help coordinate City Break, the tourism industry exhibition in Gothenburg, Sweden, which this year is managed by ETOA in a new partnership arrangement with RTE.

The collaboration is particularly significant as City Break came into being under the stewardship of Tom Nutley, and is now in its fourth year.

Tom Nutley joined Reed in 1982 and is credited with developing World Travel Market into the top global industry event. He pioneered RTE’s Meridian Club, a new concept in customer relationship marketing, allowing senior executives to negotiate major buying contracts in a concentrated business-to-business environment. He has also been responsible for developing travel industry events around the world, including the Arabian Travel Market, International Golf Travel Market, CBITM as well as City Break.

Tom Nutley retired as chairman of Reed Travel Exhibitions last year after 25 years with the Reed group and has since maintained his involvement in travel and tourism through a portfolio of non-executive roles in companies and trade associations.

City Break Exhibition, Gothenburg, 15-16 June

City Break 2009, which is to be held in the Gothenburg Convention Centre in Sweden, on 15-16 June, is the latest event in a growing portfolio of trade events hosted and managed by ETOA. It follows on from the highly successful Britain and Ireland Marketplace held in association with UKinbound during British Tourism Week in London.

This key business-to-business travel exhibition brings together hoteliers, tourist boards and attractions from Europe’s major cities, and tour operators and other buyers, at a critical time. Business travel in Europe has slumped since the onset of the global economic downturn and the gap has created more opportunities for leisure travel and economical short breaks in European cities.

“This is the best time to shop for a city break,” said Tom Jenkins. “Apart from price, this season offers the traveller a welcome escape from crowds. Unfortunately from my industry’s point of view, forward bookings are down. This means that there has never been a better chance to enjoy an uncrowded city vacation at a bargain price.

Britain and Ireland Marketplace

The Britain and Ireland Marketplace (www.bim.travel) was ETOA’s major contribution to British Tourism week and the first ETOA workshop to be held jointly with UKinbound. “We are delighted to have worked with UKinbound this year and look forward to cooperating again with UKinbound next year,” said Tom Jenkins.

“To put on a regionally focused event is a recent innovation for ETOA,” said Jenkins. “Commercially our member tour operators need local product. They need to strike deals with individual hotels and understand what the various attractions have to offer. We are looking forward to doing more of these events, not fewer.”

NEWS IN BRIEF

Tourist Tax Imposed in Ireland

The Republic of Ireland has introduced a €10 tourist tax. The charge came into force last week and is in addition to a €25 departure fee paid to Dublin airport operator DAA. It’s been condemned by Ryanair, who launched a petition to the Irish Government to scrap the tax. “Over 15,000 passengers have emailed them already to highlight that Ireland cannot stimulate traffic and tourism by taxing visitors,” said Ryanair’s Stephen McNamara. “We urge the Government to scrap this stupid tax. The introduction of this tax comes just days after the Dutch Government scrapped its tourist tax which has devastated tourism in the Netherlands. Ireland's first priority during this deepening recession must be to welcome visitors – not tax them.”

12-day rule reintroduction a step closer

The European Union took one step closer to restoring the 12-day rule on coach tourism yesterday (31st March).
The reintroduction of the rule is included in draft common rules for access to the international coach and bus market that were adopted by the European Parliament's Transport and Tourism Committee. If adopted by the Parliament as a whole and by national governments in the Transport Council, the 12-day rule could be back in force early in 2010.

The approval of both bodies is needed for the rule (and the other market-access rules) to take effect. The next plenary session of the Parliament will be held on 22nd April. The next meeting of the Transport Council is scheduled for 11th June.

The text of the proposed new 12-day rule is the result of a compromise agreement worked out at an informal meeting of representatives of the Parliament, Council and European Commission early last week.

The main change compared with the previous 12-day rule is that it will apply only to drivers "engaged in single occasional service[s] of international carriage of passengers". Drivers will be entitled to work on single services of up to twelve days before taking the compulsory rest periods prescribed by the new regulation. However, if a driver does an 8-day service, he will have to take his rest period immediately afterwards and will not be allowed to work an additional 4-day service before doing so.

ETOA at British Tourism Week

This week is British Tourism Week and buyers from over 30 international markets have gathered in London for trade events aimed at promoting the potential for inbound tourism in a particularly difficult year.

ETOA is playing a major role in Tourism Week by co-hosting, along with UKinbound, the Britain and Ireland Marketplace. This is a full-day workshop held on Wednesday in the Banqueting House, Whitehall, London, which enables tour operators and hoteliers and others to meet to do business or at least renew contacts.

For the first time, ETOA is joining forces with UKinbound to create an exciting networking event for both organisations’ members and the wider industry. UKinbound is the organisation responsible for providing information about the British tourism industry for tour operators and tourism suppliers to Britain whilst ETOA offers European level representation for the interests of inbound and intra-European tour operators, wholesalers and European suppliers.

ETOA survey: Should Gordon Brown be doing more to promote tourism?

Last week, the prime ministers of Thailand and Ireland were seen travelling abroad to promote tourism to their countries. Today we ask whether Gordon Brown should follow their lead.

Next week is British Tourism Week and on Wednesday 25 March, UKinbound and ETOA launch the Britain & Ireland Marketplace, a new workshop dedicated to generating tourism in Britain & Ireland.

In advance of this, please help us reveal the true health of the market by spending 5 minutes of your time on our short survey:

Take this survey

Thank you for your participation in this survey. The results will be published in time for BIM09 on Wednesday.

ETOA Briefing team

Reed Exhibitions and ETOA join forces on City Break

Reed Travel Exhibitions, the world’s leading events organiser, and the European Tour Operators Association (ETOA), whose 400 members include the leading inbound European tour operators, today announced a partnership to build the profile and success of City Break, the specialist travel trade event dedicated to the growth of the city break market.

The partnership signals an enhancement of the City Break product, with ETOA being invited to manage and operate the event because of its access to buyers and its proven track record in running travel trade workshops using an appointment-based system. Reed Travel Exhibitions will continue to own and license the event.

Mark Walsh, Reed Travel Exhibitions’ Group Exhibition Director said, “We see this partnership as an excellent opportunity for City Break to build on its success of previous years. With Reed Exhibition’s excellent reputation within the events industry and ETOA’s fantastic European buyer membership and experience in running workshops, City Break has an extremely promising future ahead of it.”

Tom Jenkins, Executive Director for ETOA, commented, “ETOA is delighted to join forces with Reed Travel Exhibitions and we are looking forward to building on the existing event and making City Break the most important event of the year for European city break specialists.”

The show, which is in its fourth year, will take place from 15th – 16th June 2009 in Gothenburg, Sweden. Over 80 European cities will be represented with exhibitors including city tourist boards, accommodation providers, transport organisations, inbound tour operators, DMCs, city attractions and entertainment providers. Previous host destinations have been Helsinki, Athens and Belgrade.

Tough New Visa Regulations for Visitors to the UK

A series of new UK visa regulations comes into force this month, as a result of an extensive review by the UK’s Borders and Immigration Agency. Several countries that until now have enjoyed visa-free travel to the United Kingdom will have visa requirements imposed upon them, most controversially South Africa.

The visa requirement, which became effective today for visitors from South Africa, hits almost 300,000 South Africans who come to Britain each year, and will make make their visits more expensive. In 2007 there were 297,000 tourists from South Africa visiting Britain, a dip from 351,000 in 2006. The total estimated spend by South African visitors was £232 million in 2007 compared with £261 million the year before. Incoming visits from South Africa have averaged between 260,000 and 319,000 every year since 2000.

The changes to the visa regime are part of the biggest shake-up of immigration and border security measures seen in the UK in over 45 years, including measures to fingerprint all visa applicants and the operation of electronic identity checks at ports and airports in the UK. A key aim is to count in and count out all short-term visitors to the UK – including tourists – with accuracy.

Britain's tough border means that nationals of 133 countries – which number three-quarters of the world's population – must apply for a visitor visa to come to the UK. According to the Home Office, over 99 per cent of foreign nationals from outside the EEA will be tracked in and out of Britain by 2010, through targeting of countries deemed higher risk because their own borders are not secure.
Previous host destinations have been Helsinki, Athens and Belgrade.

Risky Road to Revive the Twelve-Day Rule

Talks are underway in Brussels that could pave the way to restoration of 12-day rule for coach tours. The Transport and Tourism Committee of the European Parliament has tabled an amendment to driving and rest time regulations that would re-introduce the possibility for coach drivers to work twelve consecutive days. This would remove the requirement for drivers to take a day off work after working six days in a row.

The limit of six days came into force in April 2007, to bring coach drivers into line with working time regulations set for long-distance freight lorry drivers. Coach tour operators have complained that replacing a driver in the middle of a tour has increased the cost of coach tours, without adding any measurable benefit in terms of safety or the work-life balance of drivers. Drivers have pressed for their days off to be combined into rest periods at home with their families, before and after a long trip.

Coach tour operators and the tourism industry as a whole are being urged to lobby members of the European Parliament and national transport ministers to support the latest proposal for a relaxation of the rules on coach drivers’ rest time.

The measure is part of a major piece of legislation known as the Road Transport Package, aimed at updating European laws on freight and passenger transport, and is due to be voted upon by the European Parliament’s Transport Committee on 31 March and then by the whole Parliament at its April session. All stages of the process need to be completed by the end of April as the term comes to an end and the European Parliament closes down for the European elections in May.

Flawed EU VAT Scheme Reaches Ireland

Tour operators in the Republic of Ireland are to be brought under the Tour Operators Margin Scheme (TOMS). The move brings Ireland into line with European Union regulations on the taxation of package tours.

Under the new scheme tour operators will be subject to VAT on the gross margin on package holidays sold to consumers. Tour operators and travel agents in Ireland have until now been exempt from paying such VAT. Ireland and Denmark are the only EU member states that do not yet operate a Margin scheme for VAT in the travel industry. Under a clause in the Republic’s 2009 Finance Act, they will come under the TOMS regime on 1st January 2010.

The margin scheme was introduced by the European Commission in 1977 to simplify the collection of VAT on tours that went to several EU countries. Operators were not forced to register for VAT in each country: this becomes irrecoverable. Under the TOMS arrangement tour operators only have to register and account for VAT in their home country. VAT is then applied to the margin between the gross costs and the price paid by the consumer. VAT incurred on general overhead expenses is recoverable.

>> Download ETOA's proposal for reform of the Tour Operators Margin Scheme (Oct 08)

ETOA protests “retrospective taxation” in Italy

The European Tour Operators Association (ETOA) is writing to the government of Italy to protest against the sudden increase in charges to bring coaches in to popular destinations in Italy.

From January of this year, tour operators have been subjected to dramatically increased charges in cities such as Florence, Venice and Pisa.

“What is particularly distressing is that these charges are being introduced with no notice,” said Tom Jenkins, Executive Director, ETOA. “Visitors book their journey many months in advance. Tour operators have to price them years ahead. You cannot “re-price” a product that has already been sold. Such a sudden surcharge has to be absorbed from the margin.

Can Inbound Tourism Lift Hoteliers' Spirits?

In the run-up to ETOA's annual workshop, the Hoteliers European Marketplace, the hotel industry is facing a bleak year. Business travel bookings are down, and hotels are facing the prospect of empty rooms and revenue declines like never before. However, there are some grounds for optimism - this year's HEM has more buyers attending than in previous years, with spending power of over €5bn for inbound tourism to Europe in 2009, and there are some very favourable underlying market conditions.

The United States is the biggest source market for Europe and the worst recession in 30 years has forced companies in the United States to reassess their travel budgets. Many have curtailed international travel altogether while others have placed restrictions on executives to fly economy class and downgrade to cheaper hotels.

Hoteliers European Marketplace (HEM)

HEM is an appointment-based workshop, where buyers are based at tables and hoteliers visit them according to a pre-assigned appointment schedule. Each delegate attending has the opportunity to make 15 requests prior to the event and ETOA's system allocates each appointment accordingly. HEM is an event open to non-members of ETOA. Bookings are up on last year's event; to register your place or to see who is attending, visit www.etoa.org/HEM/default.aspx.