B Explanatory
memorandum by Mr Galati, rapporteur
1 Introduction
1. New approaches to the theory of economic development
focus on the characteristics of endogenous development. This refers
to development that is mainly, though not exclusively, based on
locally available resources such as land, water, vegetation, knowledge,
skills and competences, culture, leadership and the way people have
organised themselves. It takes tradition, bio-cultural and bio-natural
diversity and the spiritual world as starting points for possible
innovations and is seen as a complementary approach to ongoing technological
and economic processes at a global level.
2. Endogenous development is determined locally, whereas exogenous
development is determined externally and transplanted into particular
locations. It tends to lead to higher levels of retained benefits
within local economies, whereas exogenous development tends to export
its proceeds. Endogenous development can indeed revitalise and dynamise
local resources which otherwise might be ignored or dismissed as
being of little value. Initiatives for supporting endogenous development
therefore need to identify development niches, based on the characteristics
of each local situation. The rapporteur wishes to identify best
practices for growth and local development, which will be referred
to as case studies in this report.
3. On 20 May 2011, the Committee on Economic Affairs and Development
held a meeting in Lamezia Terme (Italy), at the invitation of the
rapporteur. During the meeting, it held a hearing with the participation
of:
- Mr Antonio Gentile, Under-Secretary
of the Ministry of Economy and Finance;
- Mr Luigi Vitali, Chairperson of the Italian delegation
to the Parliamentary Assembly;
- Mr Domenico Arcuri, Managing Director of Invitalia (National
Development Agency for the Attraction of Foreign Investments);
- Mr Francesco Montera, General Director of Promuovi Italia
(National Development Agency for Tourism and Labour);
- Mr Giuseppe Sala, Managing Director Milan Expo 2015;
- Mr Domenico Bova, Italia Lavoro SpA;
- Mr Gianni Speranza, Mayor of Lamezia Terme;
- Ms Wanda Ferro, President of the Province of Catanzaro;
- Mr Giuseppe Scopelliti, Governor of Calabria Region.
The
hearing provided a most valuable input for the present report, as
all participants stressed the major need for a coherent approach
at local and regional level, with a view to opening new perspectives
for the development of tourism in the Calabria Region. They gave
concrete examples of issues to be tackled and dealt with in order
to reach the declared goals. Local assets and resources, combined
with the building of an appropriate infrastructure for attracting
tourists, would become the basis for the economic development of
the region and bring a true impetus to the well-being of its inhabitants.
1.1 The impact of the
economic crisis in Europe
4. The renewed interest in endogenous development can
be explained by the effects the economic crisis is having in specific
European regional economies. The economic and financial crisis has
hit European countries and regions asymmetrically, with some countries
experiencing a much higher rise in unemployment than others. For
example, the Baltic states have been particularly hit by the rise
in unemployment, as have Iceland, Ireland and Spain, three countries
where previously a property boom seemed to fuel high economic growth.
5. Within countries, regions with an economy highly dependent
on a particular sector or company have suffered more than others.
Regions less reliant on export-oriented industries and financial
services seem to have been less severely affected by the economic
crisis that hit Europe in 2008.
6. It could be argued that new development challenges can be
found in the socio-economic disadvantages of peripheral regions:
rurality; crisis or lack of traditional industries; low population
density or negative population growth; unemployment and underground
employment; lack of a sufficient workforce to sustain social welfare
systems; low education levels; lack of public and private research
and development and innovation capacity; and difficult access to
essential services.
2 The socio-economic
diversity of economically frail territories as a challenge and resource
7. Territorial imbalances can be observed at many different
geographical levels. They usually relate to economic wealth and
performance, but increasingly also to demographic patterns or factors
such as innovation, creativity and integration in global networks.
8. Currently, two major economic divides or discontinuities can
be noted in Europe. Looking at national data, there is a difference
between east and west. The discontinuity line runs from the Finnish-Russian
border in the north to the maritime border between Italy and Albania
in the south (those countries which joined the European Union during
the latest EU accession rounds have lower levels of wealth than
older EU member states, although they tend also to have higher levels
of wealth than neighbouring non-EU countries). If we consider regional
data, a more nuanced picture emerges which illustrates the existence
of considerable differences in wealth among a given country’s regions.
9. Put simply, Europe’s territorial imbalances are the result
of historical patterns of investment that have created their own
momentum and which will persist in the long term. Since the mid-1950s,
the process of modernisation in Europe has been characterised by
an essential rupture with existing traditional economic sectors
(agriculture above all), while the cultures where spirituality plays
an important role have generally been considered a hindrance to
modernisation. This modernisation model was shaped by external interventions aimed
at introducing new technologies and knowledge, new forms of socialisation
and training, new organisational models for farming, agriculture
and the manufacturing sector. Meanwhile, efforts to create a policy
to implement these interventions have reinforced the discontinuity
with existing practices, relationships and role definitions.
10. Some regions took advantage of the modernisation process more
than others. This not only reproduced existing differences, but
also generated further inequalities. In the 1990s, the negative
aspects of the modernisation process led to a growing quest for
alternatives,
Note first
of all in the agriculture sector. On the basis of regional diversity,
efforts were made to build endogenous development policies in Europe.
3 Territorial specificities
and vocation which represent an input for local development in depressed regions:
the case of Europe
11. In recent years, there has been a rising market demand
for leisure and tourism products that offer consumers an experience
of “authentic” landscapes, cultures and habitats. Such assets are
very much based on location and are therefore an important part
of territorial development strategies in some regions or cities.
12. Thematic tourism, favouring an authentic local cultural contact
(connected with cultural and historical heritage, ethnography, gastronomy
and traditional music and handicrafts), has emerged as a rejection
of mass tourism. Looking at some of the available data, we can identify
a growth in the demand for specific types of cultural and natural
attractions. In 2009, religious tourism attracted 330 million passengers
worldwide, with a turnover of about $18 billion, while ecotourism
has become one of the fastest-growing sectors of the tourism industry,
growing annually by 10-15% worldwide.
Note
13. Strengthening the relationship between tourism and territorial
specificities and vocation can therefore help destinations to become
more attractive and competitive as locations to live, visit, work
and invest in. On the whole, the tourism industry
Note has
become a sector of major importance for the European economy: with some
1.8 million businesses, primarily small and medium-sized enterprises
(SMEs), employing approximately 5.2% of the total workforce (approximately
9.7 million jobs, with a significant proportion of young people),
the European tourism industry generates over 5% of the gross domestic
product of the European Union, a figure which is steadily rising.
Tourism therefore represents the fourth largest socio‑economic activity
in the European Union after the trade, distribution and construction
sectors.
14. Tourism is considered as a transversal sector capable of generating
local development through:
- the
creationNote (and
the retention) of jobs in the industrial and rural areas, coastal
regions and islands;
- the connections and relationships with many different
actors and other relevant economic sub‑sectors.
3.1 Specificities of
tourism for older peopleNote
15. People over the age of 64 now represent 17.34% of
the population of the European Union. Life expectancy has increased,
reaching 80 in France and Sweden, although some countries are well
short of that figure (it is 66 in the Russian Federation). The number
of people aged 80 or over is expected to rise by 180% by 2050. The
increase in life expectancy has had various repercussions: couples
are also living longer lives together, and voluntary-sector and
family commitments are also on the increase. Relations between the generations
are also developing, and older people are increasingly engaging
in tourism.
16. The tourist industry is a major source of national wealth
in many Council of Europe member states, particularly those in the
Mediterranean Basin. It accounts for 10% of GDP in Spain, 20% in
Croatia and as much as 35% in Malta, where it employs almost 7%
of the working population.
17. Tourism has been affected by the economic crisis, albeit not
as badly as some other sectors of the economy. However, being less
affected than other economic players, such as young adults (the
category the most affected by unemployment), older people – those
whose pension enables them to travel – seek out certain kinds of
tourism while at the same time not wishing to be identified as elderly.
They are attracted mainly to cultural tourism (tours of exotic places,
voyages of discovery of other cultures and traditions, short visits
to major European cities), tourism with a focus on nature (ecotourism,
rural holidays) and beach or well-being holidays (staying at superior-class
seaside hotels offering an all-inclusive formula or spending wellness holidays
at thalassotherapy centres).
18. Many elderly people with enough purchasing power to travel
are also wanting to take breaks on the Mediterranean's many beaches.
It is important to take note of the fact that periods before and
after the main tourist season are the ones particularly appropriate
for senior citizen tourism.
19. This kind of tourism nevertheless necessitates quite specific
arrangements and investments. Retired people on comfortable pensions
seem today to be a privileged social group. With a high level of
purchasing power, the over-60s enjoy better health than their parents
and an income higher than their children are likely to have. Very
often receiving a full pension, in some cases supplemented by income
from part-time work, elderly people make up a social group sometimes
called the "idle class", enjoying a life of leisure. This social category
should therefore be definitely taken seriously into account in the
context of developing thematic tourism.
4 Harnessing the
potential of the labour force and natural resources: some best practices
in Europe
20. The high dependency of the tourism sector on human
capital and natural and cultural resources is recognised at the
EU policy level. There is also an increasing awareness that further
economic growth of the industry in a sustainable way strongly depends
on territorial development.
21. Generally, the EU tourism industry has difficulties in attracting
the necessary skills and is confronted with a high turnover in personnel.
This is due to a mismatch between the demand for skills from the
tourism sector and the current skills supply provided through education
and training, as well as the sector's reputation for sometimes unfavourable
working conditions (irregular working hours and low remuneration).
Moreover, the average level of education in the EU accommodation
industry is relatively low. More than one third of all employees
in the accommodation sector did not have more than a lower secondary
education qualification in 2007. Less than 14% of employees in this
sector have a tertiary education degree, compared to an average
of 27% in the total EU economy. The accommodation sub-sector is
dominated by small (family) businesses, partly explaining the lower
level of education in the sub-sector.
22. Female employees are highly represented in the accommodation
sector; they represent 44% of the total workforce in the EU economy.
In the accommodation sector this percentage rises to 60%. The over‑representation
of women in the accommodation industry is a general characteristic
across Europe and particularly in eastern Europe.
Note
4.1 Case study of territorial
development: the ancient routes of pilgrimage in Europe as a model to
develop economically frail territories
23. In 1987, the Council of Europe launched the Cultural
Routes programme. Its objective was to demonstrate, by means of
a journey through space and time, how the heritage of the different
countries and cultures of Europe contributes to a shared cultural
heritage. The Cultural Routes put into practice the fundamental
principles of the Council of Europe: human rights, democracy, cultural
diversity and identity, dialogue, mutual exchange and enrichment
across boundaries and centuries. The Cultural Routes programme became,
little by little, an essential tool for improving the quality of
life and a source of social and economic development for the regions
concerned.
24. Having regard to the success of the Cultural Routes programme,
in December 2010 the Committee of Ministers adopted Resolution CM/Res(2010)53
establishing an Enlarged Partial Agreement on Cultural Routes. The
enlarged partial agreement seeks to reinforce the potential of Cultural
Routes for cultural co-operation, sustainable territorial development
and social cohesion, with a particular focus on themes of symbolic
importance for European unity, history, culture and values, and
the discovery of less well-known destinations. It helps to strengthen
the democratic dimension of cultural exchange and tourism through
the involvement of grass-roots networks and associations, local
and regional authorities, universities and professional organisations.
It also contributes to the preservation of a diverse heritage through
theme-based and alternative tourist itineraries and cultural projects.
25. As far as the economic aspects of the programme are concerned,
in September 2010 the Council of Europe and the European Commission
jointly launched the Study on European Cultural Routes to evaluate
the impact on SMEs in terms of innovation, competitiveness and clustering.
The aims of the study are to provide insights into the effects produced
by the Council of Europe Cultural Routes programme on SMEs' performance, network
and cluster development. It also examines the potential of the Cultural
Routes for promoting sustainable and quality tourism in Europe,
strengthening European identity, disseminating the wealth of European
cultures and fostering intercultural dialogue and mutual understanding.
In particular, the study intends to analyse how Cultural Routes
networks can benefit SMEs, especially in less-known destinations, where
the local culture and heritage are the main resource for development,
and how SME clusters can create a solid basis for promoting Europe
as "the world's No. 1 tourist destination".
26. Cammini d’Europa (Routes of Europe) is a network of international
co-operation created with the support of the European Union and
aimed at promoting the development and growth of regions and territories
which are crossed by the main Cultural Routes of Europe (among the
29 Cultural Routes having so far received the Council of Europe
Cultural Route certification): the Camino de Santiago (the Way of
St James) and the Via Francigena. The network comprises institutions
and public and private organisations that share a common idea of
development. It is directed at increasing the feeling of belonging
to a common European culture through the promotion of the historical,
cultural and socio‑economic status of these routes.
27. Cammini d’Europa supports an integrated and joint strategy
of cultural promotion and territorial development, based on actions
and concrete intervention: for example, in the last few years about
a hundred rural houses have been restructured along the Camino de
Santiago to provide a high level of accommodation (from the point
of view of comfort and food service) in an environment immersed
in tradition. Following the suggested itineraries along the Way
of St James and the Via Francigena leads
to the discovery of territories rich in history, culture, tradition
and local produce of great quality, all too often neglected by the
main circuits of international tourism.
28. The Camino de Santiago and the Via Francigena are the most
important routes of pilgrimage in western Europe. Strongly integrated
with each other and with common features, these pathways are recognised
as “European Cultural Routes”, representing, by their very origins,
a fundamental means of communication, cultural exchange and economic
development.
- The Camino de
Santiago has its historical roots in the itineraries followed by
pilgrims in the 9th century, and crosses modern-day Belgium, France,
Germany, Italy, Luxembourg, Portugal, Spain and Switzerland to reach
the tomb of the Apostle James. The city of Santiago de Compostela
was built in this sacred place and has become, along with Rome,
one of the most important places of worship and pilgrimage in the
Christian world.
- The Via Francigena represents a 1 800-km journey through
the United Kingdom, France, Switzerland and Italy along the paths
followed by pilgrims en route to Rome, onward to Jerusalem or to
Santiago de Compostela. In AD 990, Sigeric, Archbishop of Canterbury,
travelled to Rome to meet Pope John XV and recorded the journey
along the Via Francigena in
his diary, resulting in the birth of one of the most important pilgrimage
routes. Other popular routes were added over the centuries ( Vie Francigene) and they are now being rediscovered
and valorised.
29. The attractiveness of these routes is currently growing. This
is an clear signal of the importance of strengthening the international
commitment to the promotion and enhancement of these routes and
others connected with them, in areas such as pilgrimage and cultural
transmission. The integrated strategy aims at strengthening co-operation
between the localities, provinces and regions along the Cammini
d’Europa with a view to organising, promoting and commercialising
at an international level.
4.2 The European Pilgrimage
Routes project
30. The European Pilgrimage Routes project has been devised
and organised as part of the transnational Leader+ partnership.
It aims to develop a strategy of action for an integrated tourism
valorisation of the areas crossed by Europe’s most important cultural
itineraries, namely the Camino de Santiago and Via Francigena (or
Roman) pilgrimage routes. The partners are currently local action
groups from Italy, Spain, France, Portugal and Sweden, but they
are interested in expanding their network of partners by evaluating
candidate groups from other European Union countries.
31. The project envisages four types of activity:
- joint actions between the two
itineraries;
- actions promoting and upgrading the Vie Francigene routes;
- actions promoting and upgrading the Santiago pilgrimage
routes;
- local infrastructure, organisation and promotion work
in the project’s partner territories.
4.3 Valorisation of
cultural/natural resources: the Via Francigena of the Lazio Region
32. Cultural heritage and natural and devotional itineraries
represent a key factor in the integrated development of economically
frail territories. In the Lazio Region various historical and archaeological
sites, abbeys and churches in small towns and out-of-the-way locations
are disseminated all over the territory. Moreover, the region contains
protected areas, lakes and seaside resorts that contribute to its
prominence as a popular tourist destination.
33. Notwithstanding the enormous potential of endogenous development,
the Lazio Region has never implemented a homogeneous policy of development
aimed at the valorisation of all the territories and areas (characterised
as “secondary tourist destinations” because of its proximity to
Rome). Agriculture, crafts and animal husbandry are the main traditional
sectors, while industrial development in Lazio is limited to the
areas south of Rome. Given that most parts of the Lazio Region have
kept their agricultural vocation, it is necessary to build a new
model of development and new job opportunities for this sector.
34. The model is the one promoted by Routes of Europe, while the
opportunity is given by the faith itinerary of the region – the
Southern Via Francigena. The “Opera Romana Pellegrinaggi
Note and Promuovi Italia” have outlined
a project proposal for an integrated tourism valorisation of the
area. The project envisages the following activities:
- supporting foreign public administration
bodies in the process of becoming global;
- recognising the attractiveness of the region;
- improving and modernising the faith itinerary of the region;
- training programmes;
- management training (destination management) and entrepreneurship
development.
5 Conclusion and
recommendations
35. The experiences mentioned in this report, chiefly
relating to the tourism industry, could be envisaged as best practices
to follow when implementing development policies in economically
weak territories. In this regard, the suggested approach of strengthening
tourism development strategies would act as a catalyst for local
development in regions and areas having recently experienced economic
difficulties.
36. According to the Amartya Sen “capability approach” to well-being,
Note development should
be viewed as a process of expanding the “real freedom” of people.
“Real freedom” in this context means an individual’s “capability
to achieve valuable human functionings” in terms of indicators such
as life expectancy, educational attainments, levels of nutrition,
access to health care, employment, political participation, etc.
Consequently, development is equivalent to the protection of an
individual’s right to freely dispose of their natural wealth and resources
in order to ensure decent living conditions from an economic, social
and spiritual point of view.
37. In view of the current economic crisis in most European Union
countries, it has become imperative to find and implement new development
models, generate new economic activities, create employment opportunities
and encourage innovation. On the basis of the case studies mentioned
above, we can argue that the territorial specificities
Note of all European Union countries
(including cultural heritage, natural sites, customs and traditions)
can be considered as a potential for local development.
38. The key growth strategy in certain regions is based on the
development and dissemination of a new tourism model known as “thematic”
tourism: “not only places to visit but themes to discover”. Nowadays, despite
the enormous potential for the development of thematic tourism products
(agritourism, ecotourism, religious tourism, health and well-being),
non-traditional destinations are still little frequented by tourists.
39. On the tourism demand side, the most recent market dynamics
reveal that the following tendencies are influencing tourist behaviour:
- concerns about environmental
protection;
- preferences for excellent quality services and infrastructures;
- a rising interest for handicrafts, gastronomy and products
from local economies connected with historical heritage and tradition.
40. How can the capitalisation of such assets in internal regions
and rural territories (landscapes, culture and habitats) be encouraged
in order to stimulate local economic growth? In rural and mountain
areas, coastal regions and other territories where endogenous development
based on local resources without huge capital investment is possible,
the SMEs of the tourist and manufacturing/handicraft sectors represent
the largest proportion of all enterprises.
41. The tourism sector has significant potential for the development
of entrepreneurial activity. Furthermore, we have to consider that
the tourism industry consists of a highly complex system of activities
and services which cuts across a wide range of sectors. Consequently,
tourist spending not only creates direct benefits for tourism-related
businesses such as hotels, visitor attractions, restaurants, etc.,
but also indirect benefits in other sectors such as agriculture,
construction and manufacturing. It can, for instance, increase the
demand for local food products, furniture supplies for local hotels
or create new markets for handicrafts. Increased income and taxes
generated by new jobs and businesses can be used to maintain or
enhance local infrastructure and services. Moreover, synergies with
arts and crafts trades can help to preserve cultural heritage and
tradition.
42. An important cultural or natural heritage is a decisive factor
in attracting tourists, but this heritage can often be geographically
scattered. One site on its own is unlikely to be of much interest,
but if it can be pooled together with other sites, they may collectively
provide enough interest to attract a critical mass of tourists (despite
the sustained growth in tourism over the last fifty years, a significant
proportion of Europe is still little frequented by tourists, for
example: non-traditional tourist destinations of internal areas
or “second- line tourist” destinations). In the new political framework
for tourism in Europe, the European Commission encourages an integrated
approach in order to promote thematic tourist products, either by
clustering or by developing itineraries which will also benefit
from labelling initiatives (such as pilgrimage routes and cycle
routes).
Note
43. Seasonality is often a major problem for the tourism industry,
but in the case of heritage-based tourism it should be viewed as
an opportunity. As people take shorter and more frequent holidays
and the population gets older, tourists will be encouraged to explore
new areas both in and out of season. Natural and cultural heritage,
in particular, attracts markets that are not so “weather dependent”.
44. As stated in the Congress of Local and Regional Authorities
of the Council of Europe’s report on the “Promotion of cultural
tourism as a factor of development of the regions” (CPR(11)3 Part
II), generally speaking, “cultural tourists” are well educated and
have high levels of disposable income. Therefore, from the economic point
of view, their presence in a particular region has a non-negligible
potentiality to contribute to the economic development of that region.
Defining “cultural tourism” precisely is difficult, but according
to experts, it accounts for 8 % to 20 % of all tourism today.
45. The development of endogenous factors for tourism-based economic
development should therefore be strengthened through innovation
and new technologies:
- building
added-value tourism services for the most demanding/culturally aware
consumers and elderly people;
- enhancing relations and creating synergies with other
economic sectors.
46. In order to achieve these objectives (developing innovation
and reinforcing the quality of supply in all its dimensions), professional
skills must be improved. Due to its service orientation, the tourism
industry is hard to automate and as a result remains a very labour-intensive
market, capable of bringing in significant new opportunities in
terms of employment and in the development of skills, especially
for women, young people and less skilled workers.
47. Skills are required all along the tourism value chain, ranging
from basic business management skills to customer care and marketing.
This is even more crucial when dealing with tourism based on natural
and cultural heritage, because added emphasis is given to sustainability
and environmental concerns, quality of service and products, human
resource management and IT skills (Internet, websites, etc.) as
well as strategic alliances and partnerships.
48. The quality of tourist destinations is strongly influenced
by their natural and cultural environment and their integration
into a local community. The following principles are reflected in
the Corporate Social Responsibility (CSR) concept:
- responsible use of natural resources;
- taking account of the environmental impact of activities
(production of waste, pressure on water resources, land and biodiversity,
etc.);
- use of “clean” energy;
- quality and sustainability of jobs created.
49. Many companies, particularly SMEs, have put in place a corporate
social responsibility strategy and programme. Small business leaders
know that doing “the right thing” is good for society, the environment
and business.
50. Local and regional authorities have a major role to play in
the development of tourism as a truly innovative approach for crisis-stricken
regions on our continent. In fact, as shown in the report of the
Congress of Local and Regional Authorities of the Council of Europe
(CPR(16)REP) on “The future of cultural tourism – Towards a sustainable
model”, such an approach represents an opportunity for local and
regional authorities to develop new concepts with a view to striking
a balance between the exploitation of their cultural heritage for commercial
purposes and its responsible and sustainable use. A sustainable
management of heritage resources by political decision makers ensures
both economic development and respect for the equilibrium of cities
and regions. In co-operation with the Congress, the European Association
of Historic Towns and Regions (created by the Council of Europe
in October 1999 as part of the initiative “Europe – A Common Heritage”) would
be particularly well placed to draft guidelines for cultural tourism
as a tool, inter alia, for
the economic development of crisis-stricken regions throughout Europe.
51. In order to briefly outline an endogenous development strategy
and policy, the rapporteur would suggest the following initiatives:
- the identification of a group
of economic subjects actively involved in economic development,
through a governance table of consultation which includes public
bodies and all potential stakeholders;
- services for the development of the local and regional
tourism offer;
- services for the development of human resources;
- services for the valorisation and promotion of tourism
opportunities.
52. This kind of strategy determines an economic growth capable
of promoting sustainable development, in particular when its benefits
are reinvested in goods and services across the country (infrastructure,
education and training, research and development).
