EVALUATION OF THE PROFITABILITY AND ECONOMIC IMPACT GENERATED BY THE EUROPE SENIOR TOURISM PROGRAMME
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1 Evaluación EVALUATION OF THE PROFITABILITY AND ECONOMIC IMPACT GENERATED BY THE EUROPE SENIOR TOURISM PROGRAMME - EXECUTIVE SUMMARY- August
2 Evaluatin f the Prfitability and Ecnmic impact generated by the Eurpe Senir Turism Prgramme 1. Intrductin Seasnality f turism in Spain, and in Eurpe in general, is ne f the mst relevant limitatins when trying t imprve its cmpetitiveness, and business and scial-ecnmic prfitability. In a time f recessin and budget cuts in the public administratins, an pprtunity t strengthen the turist activity in the mid and lw seasns arises, by rekindling the labur market with an active emplyment plicy and strengthening the relatins between the scieties f the EU member states, and extending citizens right t travel and g n hliday, thrugh scial prgrammes that facilitate and mtivate new influxes f turists. Turespaña has launched the "Eurpe Senir Turism" pilt prject, an internatinally pineering prject. Cnsequently, TURESPAÑA, cmmissined by SEGITTUR, designed and managed the Prgramme fr the seasn, with the aim f fulfilling the fllwing bjectives: The pririty bjective is t favur year-rund turist activity, and cnsequently assist in the creatin and maintenance f emplyment thrughut the lw seasn in the turist sectr, and particularly in the htel and catering industry, thereby cntributing t alleviating seasnality in the sectr. T cllabrate in imprving the quality f life f these citizens in Eurpe thrugh participatin in travel and turist activities, by engaging in ther envirnments and getting t knw abut the cultural and natural resurces in Eurpean cuntries. T cntribute t building Eurpean citizenship, because the Prgramme is transnatinal. 2. Descriptin f the prgramme The prject cnsists f setting up a system f grup travel t take place during the mid and lw seasn, which wuld be partially subsidised by the destinatin cuntries and aimed primarily at Eurpean Unin citizens ver the age f 55. It is based n the experience f the Prgramme f Scial Turism rganised by the IMSERSO (Spanish State Institute fr Senirs and Scial Services), but wuld have Eurpean transnatinality as its main innvative characteristic. 1 In this secnd editin, the prgramme has taken place in fur different regins: Andalusia, Balearic Islands, Regin f Valencia and the Canary Islands. Frm Octber 2010 t April 2011, the Prgram has been develped in the fllwing destinatins: Mallrca, Minrca, Ibiza (Balearic Islands), Csta de la Luz, Csta del Sl, Almeria and Granada (Andalusia), Benidrm, Gandia and Peñiscla (Regin f Valencia). The Prgram in the Canary Islands has been develped frm April 2010 t June 2011 in the fllwing destinatins: Tenerife, Gran Canaria, Fuerteventura and Lanzarte. 1 Text taken frm the Segittur website. 2
3 Evaluatin f the Prfitability and Ecnmic impact generated by the Eurpe Senir Turism Prgramme The package in the Balearic Islands, Andalusia and the Regin f Valencia includes: return trip, transfer frm the departure airprt t the destinatin htel, and frm the htel t the airprt f rigin (the same ne as at the beginning f the trip), accmmdatin in 4-star htels, full-bard, drinks included (water and wine), daily entertainment prgramme, tw excursins in the area and travel insurance. The package in the Canary Islands includes: return trip, transfer frm the departure airprt t the destinatin htel, and frm the htel t the airprt f rigin (the same ne as at the beginning f the trip), accmmdatin in 4 and 3-star htels, full-bard, drinks included (water and wine), daily entertainment prgramme, ne excursin in the area and travel insurance. The Spanish Gvernment and the reginal gvernments in the Balearic Islands, Andalusia, Valencia and the Canary Islands have laid dwn sme maximum prices t be paid by the beneficiaries in rder t enable as many peple as pssible t travel t Spain during the winter. The regins f Andalusia, the Balearic Islands and Valencia subsidy with a fixed sum f 150 eurs t thse beneficiaries ver 55 years residing in Pland, Hungary, Czech Republic and Slvakia; and 100 eurs t residents in Austria, Belgium, Bulgaria, Denmark, Slvenia, Greece, Ireland, Italy, France, The Netherlands, Prtugal and Rmania. The Canary Islands subsidy with a fixed sum f 150 eurs t thse beneficiaries ver 55 years residing in Pland, Hungary, Rmania, Czech Republic, Bulgaria and Slvakia; and 100 eurs t residents in Slvenia, Estnia, Greece, Lithuania, Latvia, Luxemburg and Prtugal. 3. Cntracting Prcess The cntracting prcess fr this secnd editin was made accrding t the destinatins available. Fr Andalusia, the Balearic Islands and the regin f Valencia the cntract was renewed t the awarding cmpany n the previus year, Viajes Zetrpe SA, taking advantage f the pssibility allwed by the request fr prpsals published in the first editin. The extensin f the cntract was signed n July 2, Three mnths later, n September 30, an annex was signed including it t the existing Addendum and the regin f Valencia was intrduced as a new destinatin f the prgramme. Fr its part, the agreements with these regins were frmalized in September and Octber On September 23, the agreement with the regin f Valencia was signed. On September 24, the extensin agreement with Andalusia was als signed, and a mnth later n 21 st Octber the new agreement with the Balearic Islands was signed. In the case f the Canary Islands, a public cmpetitin was published in the fficial Jurnal f the Eurpean Unin n the 5 th August 2010, being the pertinent tender dcuments mdified in this fficial Jurnal n the 10 th September. 3
4 Evaluatin f the Prfitability and Ecnmic impact generated by the Eurpe Senir Turism Prgramme Finally the awarding cmpany fr the rganizatin, marketing, management and implementatin f travel arrangements fr the 2011 seasn in the Canary Islands was the jint venture Eursenir cmpsed f Barceló Viajes, Viajes Halcn and Viajes Iberia. 4. Assessment f the distributin f the vlume f users Estimatin f users per destinatin and typlgy f subsidy Balearic Regin f Canary Andalusia Ttal Islands Valencia Islands Subsidy ,065 3, ,776 24,583 Subsidy ,758 4,657 3,408 1,307 30,130 Ttal 31,823 8,399 3,408 11,083 54,713 Surce: Estimatin based n data prvided by Viajes Zetrpe S.A. and Eursenir Users per rigin Estimatin f the vlume f users per natinality and destinatin Andalusia Balearic Islands Regin f Valencia Canary Islands TOTAL 150 SUBSIDY COUNTRIES 11,065 3, ,095 20,902 Slvakia ,307 1,307 Hungary Pland 8,662 2, ,406 12,902 Czech Republic 2, ,261 6, SUBSIDY COUNTRIES 20,758 4,657 3,408 4,988 33,811 Austria Belgium 3, ,754 Bulgaria* 1,363 1, ,854 4,474 Cyprus Denmark Slvenia Estnia France , ,444 Greece Ireland 6, ,821 Italy 3, ,471 Latvia Lithuania Luxemburg The Netherlands 1, ,784 Prtugal ,226 2,157 Rmania* 2,174 1,023 1,653 1,827 6,677 TOTAL 31,823 8,399 3,408 11,083 54,713 Surce: Estimatin based n data prvided by Viajes Zetrpe S.A. and Eursenir (*) Bulgaria and Rmania are cuntries subsidized with 150 in the Canary Islands 4
5 Evaluatin f the Prfitability and Ecnmic impact generated by the Eurpe Senir Turism Prgramme 5. Final evaluatin f the Prgramme The main cnclusins drawn frm the analysis are: The Eurpe Senir Turism Prgramme has had a significantly psitive impact. Sme f the main impact data are the fllwing: An verall ecnmic impact at the destinatin f mre than 35 millin eurs. Generatin f abut 880 direct jbs at the destinatin, in the turism sectr. 43% f the impact at the destinatin was n the htel and catering sectr. A glbal impact in the rest f the EU (rigin) f 8 millin eurs. Generatin f abut 130 direct jbs at the rigin, in the turism sectr. As a whle, the Prgramme has had a direct impact f 39 millin eurs n the EU ecnmy. It has generated 1000 direct jbs in the turism sectr. As in the 2009/2010 seasn there has been sme seasnality identified specially in March and April mainly fcused n the destinatins f Andalusia, the Balearic Islands and the regin f Valencia. The gvernment, with subsidies, has prvided 23% f the ttal cst f the Prgramme. The Spanish Gvernment's investment has been largely recvered. Fr every eur invested, 1.3 eurs have been cllected frm tax. The tax impact is n the State Gvernment and the participating Autnmus Regins. Eurpean administratins have als benefited frm the activity generated by the Prgramme. It is estimated that abut 1.5 millin eurs may have been btained frm the direct tax impact f the prgramme in the rest f the EU. This value represents 28 eurs per bking. It can be cncluded that the prfitability f the Prgramme has been very psitive fr the EU cmpanies and administratins. If we separate this prfitability int tw sectins, fr every eur invested by the Spanish Gvernment: The Spanish Gvernment has recvered 1.3. The ther Eurpean administratins have gained 0.2. T sum up, FOR EVERY EURO INVESTED BY THE SPANISH GOVERNMENT, THE EUROPEAN INSTITUTIONS AS A WHOLE HAVE GAINED
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