Federal Government Report on Tourism Policy

- 17th legislative term -

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Table of Contents

Part 1 – Opportunities and challenges for tourism policy 1.1 Tourism – successful midmarket growth sector 1.2 Tourism: an important factor for the economy 1.3 Framework conditions for the tourism industry  Shaping demographic change  Targeted support for SMEs active in the tourism industry  Social responsibility in the tourism industry  Sustainable tourism  International framework conditions

Part 2 – Tourism policy at the Federal Ministry of Economics and Technology 2.1 Improving competitiveness, boosting performance – priority projects for the tourism industry 2.2 Training and education in the tourism industry 2.3 Regional and structural policy for the tourism industry 2.4 Germany as a travel destination – the German National Tourist Board (DZT)

Part 3 – Collaboration at the European and international level in tourism policy 3.1 European tourism policy 3.2 Bilateral collaboration 3.3 Collaboration on tourism policy within the framework of the OECD (Organisation for Economic Co-operation and Development) 3.4 Collaboration on tourism policy within the framework of the UNWTO (World Tourism Organisation)

Part 4 – The role of other federal ministries in tourism policy  Federal Foreign Office (Auswärtiges Amt (AA))  Federal Government Commissioner for Culture and the Media (BKM)  Federal Ministry of Labour and Social Affairs (BMAS)  Federal Ministry of Education and Research (BMBF)  Federal Ministry of Economics and Technology and the Federal Ministry of Food, Agriculture and Consumer Protection (BMELV)

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 Federal Ministry of Finance (BMF)  Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ)  Federal Ministry of Health (BMG)  Federal Ministry of the Interior (BMI)  Federal Ministry of Justice (BMJ)  Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)  Federal Ministry of Transport, Building and Urban Development (BMVBS)  Federal Ministry for Economic Cooperation and Development (BMZ)

Part 5 – Key players and organisation of tourism policy in Germany

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Part 1 – Opportunities and challenges for tourism policy

1.1 Tourism successful midmarket growth sector

Tourism is one of Germany's booming and lucrative economic sectors. At the same time, the industry promotes a positive and friendly image of the country. Tourist services increase the appeal and popularity of cities and regions and thereby strengthen Germa- ny's position as a place for business and investment overall. Tourism is a multifaceted industry, encompassing tour operators and travel agencies, hotels and restaurants in urban and rural areas, trade fairs, convention and event centres, museums, theatres and other cultural facilities, camping sites, car, boat and bike rental, sporting facilities, preventive health and rehabilitation clinics, nature reserves and leisure parks, bus, rail and air transport companies, and some of the retail sector - all of which offer attractive services to both private holiday-makers and the business traveller. Tourism also offers work and training opportunities that are tied to a specific location.

In Germany, tourism is an economic heavyweight and a driver of job growth, with 2.9 million workers directly employed in the industry. The sector generates a gross value add (GVA) of close to €100 billion, thereby accounting for 4.4 percent of the total GVA of the German national economy, while tourism spending in Germany amounts to roughly €280 billion - impressive figures for an industry whose economic importance had long been underestimated. The Federal Government's Annual Economic Report highlights the fact that Germany tops the league in terms of growth in Europe, and the tourism industry certainly made a substantial contribution to this economic success.

The Federal Government has significantly improved the conditions for growth and employment and will continue this policy in the future. Credit for the good economic results must be given above all to the many small and medium-sized enterprises (SMEs) in the country. For this reason, the promotion of a competitive midmarket is at the heart of the Federal Government's economic policy. The aim of the Federal Gov- ernment's SME policy is to create a business framework that allows small and medium- sized enterprises to strengthen their competitive position and fully develop their potential for growth and employment.

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As a horizontal sector, tourism cuts across many areas of government policy. And given that tourism is primarily the domain of SMEs - aside from the few big names in the industry - it particularly benefits from the SME policy of the Federal Government.

Current priority areas of the Federal Government's SME policy include:

 The Federal Government's Skilled Labour Strategy adopted in 2011: a two- pronged approach to secure an adequate supply of skilled labour by unlocking domestic workforce potential and by applying a smart immigration policy to attract skilled workers from abroad.  Securing funding for SMEs by making the arrangements under "Basel III" more midmarket-friendly. These arrangements concern the capital adequacy of credit institutions at the EU level.  Reducing bureaucracy to give businesses greater latitude. Since the introduction of the "Bureaucracy Reduction and Better Regulation" programme in 2006, the Federal Government has cut a quarter of the costs of bureaucracy borne by German businesses (for more information on the SME Initiative of the Federal Ministry of Economics and Technology (BMWi), go to www.bmwi.de).

1.2 Tourism: an important factor for the economy

The role of tourism in the German economy

Comprehensive, up-to-date figures on the economic importance of tourism to the German national economy have been available since February 2012. Following the studies conducted by the Institute of Economic Structures Research (GWS mbh) in 2003 and 2005, new and enhanced statistics, known as a "tourism satellite account" (TSA), were compiled at the initiative of the Federal Ministry of Economics and Tech- nology. These TSA data are based on an internationally accepted procedure that is consistent with German national accounts, and facilitate an informed appraisal of the impact of the German tourism industry on income and employment.

The results are remarkable:

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 Generating €97 billion in 2010, the German tourism industry accounted directly for a 4.4 percent share of the total GVA of the national economy.  If we also factor in indirect effects, such as intermediate inputs, and induced effects (direct and indirect income which is spent in Germany, thereby generating further income and employment), with roughly €214 billion tourism accounts for 9.7 percent of the total GVA.  This means that every euro of GVA that is directly provided by tourist spending generates an additional €1.25 of indirect and induced value added.  Hotels and restaurants make the biggest contribution with €57.1 billion.

The importance of business travel was also gauged: In 2010 business travellers spent €57.2 billion in Germany, with €14.7 billion spent by foreign and €42.5 billion by domestic business travellers. This translates to a good 20 percent of overall tourism spending in Germany worth €278.3 billion.

Tourism creates and safeguards jobs in Germany. Most of these jobs are linked to a particular location and are therefore of particular value for the regions. Here too, impressive figures are available that are testament to this fact:

 2.9 million workers are directly employed in the tourism industry in Germany, which is equivalent to 7 percent of the entire working population.  If indirect and induced effects are also factored in, a total of 12 percent of the entire working population is directly and indirectly employed in tourism.  This means that every direct job in tourism creates 0.7 additional jobs in up- stream and downstream sectors.

All in all it appears that the tourism industry is a powerful motor for job development, is responsible for strong revenue generation and is therefore an important economic factor for Germany (study available for download at www.bmwi.de).

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Positive trends in tourism development

2012 was an outstanding year for tourism in Germany. For the third consecutive year Germany reported record numbers of overnight stays by tourists, passing the 400 million mark for the first time ever with 407.3 million overnight stays that year. This translates to a growth of 3.6 percent on the previous year. A particular increase was seen in the number of international visitors, with overnight stays in Germany by non- resident visitors rising 8.1 percent to 68.8 million in 2012.

Figure 1

Development of overnight stays by resident and non-resident guests in commercial accommodation establishments in Germany since 2006:

Source: Federal Statistical Office Wiesbaden As of 2011 overnight stays in accommodation establishments with 10 or more bed- places or in camping sites with 10 or more places

Southern Germany is the most popular holiday region in Germany: Bavaria and Baden- Württemberg alone accounted for roughly 131.8 million of the 407.3 million overnight stays in Germany in 2012 (over 32 percent of all overnight stays).

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Source: Federal Statistical Office Wiesbaden Overnight stays in accommodation establishments with 10 or more bed-places or in camping sites with 10 or more places

Compared with figures for 2011, the city states of Hamburg and Berlin reported the biggest increase in the number of overnight stays in 2012, a fact which underlines the positive trend in city-based tourism:

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Source: Federal Statistical Office Wiesbaden Overnight stays in accommodation establishments with 10 or more bed-places or in camping sites with 10 or more places

Increasing importance of non-resident visitors

Of the 407.3 million overnight stays in German accommodation establishments in 2012, 68.8 million were by international visitors. This equates to a percentage share of 16.9 percent. With 52.1 million overnight stays, guests from Europe dominate, accounting for 75.7 percent.

Overnight stays of non-resident visitors in Germany in 2012:

Rank Continent of origin In millions Share in % 1. Europe 52.09 75.7 2. Asia 7.24 10.5 3. America 6.84 9.9 4. Australia, Oceania 0.81 1.2 5. Africa 0.62 0.9 No data 1.23 1.8

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Source: Federal Statistical Office Wiesbaden Overnight stays in accommodation establishments with 10 or more bed-places or in camping sites with 10 or more places

Most foreign tourists come from the Netherlands, accounting for roughly 16 percent of all non-resident overnight stays in 2012.

2010 2011 2012

In millions Total overnight stays of non- 60.3 63.7 68.8 resident visitors in Germany: Of these, visitors came from: 1. The Netherlands 10.5 10.7 10.9

2. Switzerland 4.2 4.8 5.2

3. USA 4.8 4.7 4.9

4. United Kingdom 4.2 4.3 4.5

5. Italy 3.3 3.3 3.5

6. Austria 2.8 3.0 3.2

7. France 2.7 2.9 3.1

8. Belgium 2.6 2.8 2.9

Source: Federal Statistical Office Wiesbaden Overnight stays in accommodation establishments with 10 or more bed-places or in camping sites with 10 or more places Order of source markets reflects data for 2012

Business travel – an important and growing tourism segment in Germany

Germany is also enjoying unprecedented popularity as a destination for business travellers: In 2012 the number of European business trips to Germany rose to roughly 13 million, which translates to an increase of 12.3 percent on 2011. Germany is the top destination worldwide for international trade shows, with three of the world's five largest exhibition centres located in Germany. Germany is also number one in Europe for conventions and conferences.

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The importance of business-related tourism in Germany is disproportionately high, with 27 percent of all European trips to Germany taking place for business reasons. Every second euro spent in German hotels comes from business travellers. Business travellers tend to leave more money in the region than leisure travellers, and the knock-on effects are high (indirect benefits from expenditure on taxis, hotels and in restaurants, shops etc.). The factors that are key to Germany's success are the good value for money that business travellers receive, the top-quality conference hotels, convention centres and event locations, the country's good image, the good security situation of its cities compared with other countries, and Germany's strong ability to innovate. The United States, China and Great Britain are the key source markets for business travel to Germany.

48 percent of overnight visitor spend in the business travel market comes from non- resident visitors:

Resident visitors Non-resident visitors (with overnight stay) (with overnight stay)

Private Business Private Business travellers travellers travellers travellers

Spending €66.7 billion €14.6 billion €20.6 billion €13.5 billion 52 % 48 % (percentage (percentage share) share)

Total €81.3 billion €34.1 billion

70 % (percentage share) 30 % (percentage share)

Total overnight €115.4 billion visitors = 41 % of overall tourist spending in Germany worth €278.3 billion

Source: German National Tourist Board/Federal Association of the German Tourism Industry/German Institute for Economic Research econ 2012

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Tourism: a thriving sector worldwide

Inernational tourist arrivals in 2012 in millions

Africa 52.3 Middle East 52.6

America 162.1

Europa 534.8

Asia/ Pacific 232.9

Global growth forecast for 2013: +3% to +4%

Source: UNWTO World Tourism Barometer, January 2013

Tourism is playing an increasingly important role worldwide in the creation of growth and employment and in the alleviation of poverty. International tourist arrivals worldwide exceeded the 1 billion mark for the first time ever in 2012. The number of foreign tourists has therefore increased forty-fold since 1950. According to estimates of the World Tourism Organisation (UNWTO), the number of global tourist arrivals is likely to increase to 1.8 billion by 2030.

The German tourism industry benefits from this development as Germany's reputation and popularity as a travel destination have increased significantly both at home and abroad in recent years.

Approximately 1.035 billion international tourist arrivals were recorded worldwide in 2012 (UNWTO estimates), up 3.8 percent on the previous year. 534.8 million individuals travelled to Europe alone, accounting for a 51.7 percent share in global tourist arrivals.

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Top 10 destinations by international tourist arrivals in 2011 France 81.4

United States 62.7

China 57.6

Spain 56.2

tion a

n Italy 46.1

Desti Turkey 34.0

Great Britain 29.3

Germany 28.4

Malaysia 24.7

Mexico 23.4

0 10 20 30 40 50 60 70 80 90 Arrivals in millions

Germany ranks eighth among the most popular travel destinations

Source: UNWTO World Tourism Barometer, January 2013; International tourist arrivals in USA, China, Spain, Italy, Turkey, GB, Malaysia and Mexico based on border arrivals, in France and Germany arrivals in all accommodation establishments. Data are not yet available for all countries for 2012.

With 28.4 million international tourist arrivals, Germany was the eighth most popular country worldwide in 2011, after France, the United States, China, Spain, Italy, Turkey and Great Britain. This reflects an increase of 5.6 percent compared to the previous year.

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Germany ranks sixth in the world for tourism receipts

Tourism industry receipts from international visitors in 2011

United States 83.4

Spain 43.0

France 39.2

tion a

stin China 34.8 De Italy 30.9

Germany 27.9

0 10 20 30 40 50 60 70 80 90 Billion euros

Source: UNWTO World Tourism Barometer, January 2013 Data are not yet available for all countries for 2012

In 2011 non-resident visitors spent €27.9 billion during their stay in Germany, making Germany sixth in the world for tourism receipts.

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Germany occupies first place within the EU for arrivals in hotels, guesthouses and B&Bs

Arrivals of residents and non-residents in hotels,

guesthouses and B&Bs within the EU in 2011

Germany 115.6

France 110.2

tion a

Spain 85.4

estin D

Italy 83.1

Great Britain 60.6

0 20 40 60 80 100 120 140 Arrivals in millions

Source: EUROSTAT (as at 18 March 2013); arrival of a resident or non-resident registering in a hotel or similar establishment.

Germany is an extremely popular travel destination. With 115.6 million arrivals of resident and non-resident visitors to hotels, guesthouses and B&Bs, Germany occupied first place within the EU in 2011.

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Germany occupies third place within the EU for overnight stays in hotels, guesthouses and B&Bs

Overnight stays of residents and non-residents in hotels,

Guesthouses and B&Bs within the EU in 2011

Spain 286.7

Italy 259.9

tion Germany 240.8 a

estin France

D 202.3

Great Britain 150.9

0 50 100 150 200 250 300 350 Overnight stays in millions

Source: EUROSTAT (as at 18 March 2013); an overnight stay of a resident or non-resident is defined as every night that a visitor spends, or is registered to spend, in a hotel or similar establishment; whether the visitor actually stays or not is of no concern.

In 2011, Germany ranked third among EU countries for overnight stays by resident and non-resident visitors in hotels, guesthouses and B&Bs. With 240.8 million overnight stays, Germany lagged behind Spain and Italy but was ahead of France and Great Britain.

1.3 Framework conditions for the tourism industry

Shaping demographic change

Skilled labour for the tourism industry Demographic change is also altering the labour markets in the tourism industry, with the result that the increasing shortage of skilled labour has become an extremely important topic both for the economy overall and for the tourism industry. Even today it is already difficult to fill positions in some tourism-related jobs, which is why the priority must now

. . . Page 17 be to increase the appeal of the tourism industry as a place to work. In this connection the new occupation requiring formal training - "tourism and travel management (agent for private and business travel)" - which was introduced in May 2011 is an important signal for the industry and for young people (see also Part 2.2 - Training and education in the tourism industry). Furthermore the industry itself has also developed diverse activities in recent years to improve the working and training conditions and promote a more positive image of the industry. In addition to the Skilled Labour Strategy of the Federal Government, the Federal Ministry of Economics and Technology is currently examining the specific need for skilled labour in the tourism field (see also Part 2.1 - Improving competitiveness, boosting performance – priority projects for the tourism industry). The aim is to identify the exact profile of requirements for workers and businesses alike so that businesses can safeguard their competitive position by recruit- ing suitable staff.

Medical tourism: a new market Medical tourism is still in its fledgling stages but its growth is expected to increase significantly, a development which is propelled by four particular trends: (i), increasing health awareness which has become a way of life for many individuals; (ii) the desire of many to remain fit and healthy in old age; (iii) advances in medical sciences - Germany occupies a leading position in the field of medical technology; (iv) the change in the healthcare system: what was previously a seller's market focussed on spas and health resorts has increasingly evolved into a buyer's market.

The "Innovative Medical Tourism in Germany" project funded by the Federal Ministry of Economics and Technology (see also Part 2.1 - Improving competitiveness, boosting performance – priority projects for the tourism industry) has demonstrated that speciali- sation, strict quality standards, and networking and collaboration between the tourism and healthcare sectors are keys to success in this nascent market. As patients are ultimately customers, the healthcare industry must become more innovative in terms of services provided, while the growing medical demands of customers require innovative tourism-related offerings (www.innovativer-gesundheitstourismus.de and www.bmwi.de).

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Accessibility The Federal Government is committed to ensuring that tourism in Germany is accessible to everyone. With a slew of measures in place, the aim is to make tourism services increasingly accessible so that they can also be used by individuals with restricted mobility. Senior citizens or families with small children also benefit from accessible offerings along the entire tourism service chain. Accessibility means respect and inclusion for all individuals and is therefore part and parcel of a welcoming culture in Germany. The Federal Ministry of Economics and Technology is currently promoting quality, transparency and information in the field of inclusion (see also Part 2.1 - Improving competitiveness, boosting performance – priority projects for the tourism industry) and is therefore making a key contribution to implementing the UN Convention on the Rights of Persons with Disabilities (see also www.un.org.disabilities/).

Targeted support for SMEs active in the tourism industry

Concentrated international marketing efforts by the German National Tourist Board The midmarket structure of the tourism industry requires a strong partner to concentrate the promotion of Germany on international markets. The "Deutsche Zentrale für Tour- ismus" (DZT) is Germany's National Tourist Board (see also Part 2.4 - Germany as a travel destination – the German National Tourist Board). It develops and communicates strategies and products to build on the positive image of German travel destinations abroad and increase incoming tourism to Germany. The marketing and sales activities are based on a detailed market analysis and market appraisal in the source markets. To this end, the German National Tourist Board has 6 regional management centres worldwide with 30 country representatives across five continents. Following an increase of €0.5 million, federal funding to the German National Tourist Board totalled €28.275 million in 2013. The additional funds will be channelled into the new foreign branch office in Belgrade for marketing in south eastern Europe, an important emerging market for incoming tourism to Germany. The German National Tourist Board co-operates throughout the world with the German Chambers of Commerce Abroad, the Oversees Trade Exhibition Division of the Federal Ministry of Economics and Technology and

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AUMA, the Association of the German Trade Fair Industry (see also www.germany.travel.de).

Professionalising rural areas City-based tourism is the current driver of growth in the German tourism industry. Growth is significantly weaker in rural areas with their many small and medium-sized service providers. Tourism, however, is especially important for jobs and income particularly in rural areas which are often structurally weak regions. Therefore the results of the "Tourism Prospects in Rural Areas" project should inject momentum into the enhancement of the appeal and professionalism of rural areas (see also Part 2.1 - Improving competitiveness, boosting performance – priority projects for the tourism industry). In particular there is a need to close the gap in rural areas with regard to qualification and skills development, quality and innovation management, networking and marketing. Selected examples of best practices provide specific recommendations for action (see also www.tourismus-fuers-land.de).

Reduction in VAT for the hotel sector When the rate of VAT for accommodation services was reduced on 1 January 2010, the aim was to strengthen the competitiveness of the hotel industry compared with other European countries and thereby enhance Germany's position as a tourism location. 22 out of 27 EU states apply the lower rate of VAT, including all of Germany's neighbouring countries with the exception of Denmark. The reduction in the rate of VAT has a positive impact for visitors, employees and skilled crafts and trades as hotels invest more in extending or renovating their buildings, hiring workers and trainees, and in skills development measures for their staff. An analysis by the Ostdeutscher Sparkassen- verband of the 2009-2012 seasonal survey conducted by the Association of German Chambers of Commerce and Industry (DIHK) reveals a significant and sustained increase in the propensity to invest in the hospitality sector with the introduction of the lower rate of VAT. The Federal Government assumes that the Act to Accelerate Economic Growth (Wachstumsbeschleunigungsgesetz) has contributed substantially to driving investment in the German hotel industry.

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Creating latitude, heading off additional burdens Time and again, the tourism industry – just like other industries – sees itself at the heart of a conflict of interests that can adversely affect its economic potential and competitive position. In his coordinating role, Ernst Burgbacher, the Federal Government Commis- sioner for Tourism, tries to arrive at or initiate solutions that are compatible with the tourism industry. In the period under review in this report, special mention must be given to the following topics:

 Hygiene ranking system: The Federal Ministry of Economics and Technology came out on top with its rejection of a national hygiene ranking system for restaurants in order to protect businesses from pillory-like action that could threaten their existence, and to head off an additional bureaucratic burden for businesses. The public's need for transparency is sufficiently accommodated in the amended Consumer Information Act (Verbraucherinformationsgesetz) and the new Food and Feed Code (Lebens- und Futtermittelgesetzbuch).  "Bed tax": Imposing a cultural subsidy known as the "bed tax" on overnight stays by tourists runs counter to the promotion of a welcoming culture in Germany. Fol- lowing the ruling of the Federal Administrative Court of July 2012 that permits bed tax for private overnight stays but not for business stays, both the industry and the Federal Government Commissioner for Tourism questions the instrument of bed tax all the more, also in light of the bureaucratic burden it imposes for everyone involved.  Low emission zones: Talks are currently underway between the Federal Gov- ernment and the Länder centring on the mutual recognition of special exemptions (once granted) on which the three federal ministries for the economy, transportation and the environment have agreed. The aim is the easier management of different exceptional arrangements in low emission zones for parts of the midmarket and the tourism industry.  Summer holiday period: The Federal Government, the Secretaries of Commerce of the Länder and the Federal/Länder Committee on Tourism are in favour of largely maximising the use of the 90-day overall period for summer vacations in the Länder. Adjusting the holiday times appropriately is advantageous for tourism as it can help ease peak traffic periods and even the load on tourist regions.

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Increasing social responsibility in the tourism industry

Ethics and human rights in the tourism industry The Federal Government is firmly committed to sustainable and socially equitable tourism and fully advocates the Global Code of Ethics for Tourism, a frame of reference for responsible tourism that was adopted by the World Tourism Organisation (UNWTO) in 1999. The Code was signed by the Association of the German Tourism Industry (BTW) and the German Travel Association (DRV) in 2012. In doing so the German tourism industry is sending a clear signal for understanding and respect towards our own workers, people in the host countries and towards global natural and cultural heritage (see also www.unwto.org).

Preventing the abuse of children The global tourism boom does have its downside, however. The Federal Government is taking action within the framework of the Second Action Plan to Protect Children and Adolescents from Sexual Abuse and Exploitation and with the trilateral campaign launched in tandem with Switzerland and Austria to raise awareness of child abuse in the tourism industry. The travel industry and numerous non-governmental organisations have also agreed an appropriate code of conduct. The aim is to protect children and adolescents against sexual exploitation in the tourism industry particularly by raising tourists' awareness of the issue and by holding training courses and seminars to promote responsible action on the part of workers in the travel sector (see also Part 4 - The role of other federal ministries in tourism policy: Federal Ministry for Family Affairs, Senior Citizens, Women and Youth, Federal Ministry of the Interior, Federal Ministry of Justice).

Strengthening sustainable tourism

Highlighting Germany's competitive advantage as a place to experience nature An unspoilt countryside and environment is one of the most important economic bases for tourism, and one of the top criteria for many holiday-makers when it comes to choosing their travel destination as ultimately relaxing in a scenic setting is one of the

. . . Page 22 most popular holiday experiences. Thanks to the high standards of Germany's environmental and climate policy, the country has an abundance of sustainable tourism services on offer. The Federal Government supports this development by promoting several projects including the sustainable development of the 130 or so national parks, biosphere reserves and nature parks in the country for tourism purposes, improving the quality of 'back-to-nature' holiday and recreation activities and how these offerings are marketed, projects for sustainable mobility, and projects for energy and resource efficiency through an energy conservation campaign in the hospitality sector. Further- more the Federal Government also seeks to share good experiences with regard to sustainable destination management with the main destinations of German tourists abroad (see also Part 4 - The role of other federal ministries in tourism policy: Federal Ministry for the Environment and the Federal Ministry for Economic Cooperation and Development).

Bringing the competitive advantage of innovative products such as green meetings to the fore Business trips, trade exhibitions and the MICE market (meetings, incentives, conventions and events) are a vibrant and innovative part of the tourism industry in Germany. Many companies from diverse business sectors and the event management industry have since realised the benefits that sustainable action can have for their image and their long-term success, and are therefore increasingly opting for "green meetings". The leading position Germany occupies in numerous areas of environmental technology has fostered the development of this innovative service. Any companies seeking a sustainable framework for their eco-friendly, climate-friendly and energy-efficient events will find that the leading service providers are located in Germany (see also www.germany.travel/green-meetings).

Helping to shape international framework conditions

Competition and subsidiarity in EU tourism policy The European Union was given some responsibility for tourism for the first time ever with the Lisbon Treaty. The Federal Government welcomes framework conditions at the European level that reflect the economic importance of the tourism industry. Global

. . . Page 23 challenges such as climate change, the loss of biodiversity or an ageing society need to be seen from the European perspective. However in exercising its responsibility for tourism, the European Commission must always remain within the boundaries of subsidiary jurisdiction. Tourism policy measures implemented at the European level must deliver true added value and should not be the source of additional bureaucratic burdens or even programmes that distort competition. On the other hand, the Federal Government welcomes European involvement in education and training, accessibility and the use of modern technologies in tourism, as well as European natural and cultural heritage (see also Part 3.1 – European tourism policy).

Strengthening sustainable tourism development through international organisations The Federal Ministry of Economics and Technology represents Germany on the OECD Tourism Committee and has been a full member of the UNWTO since 1976. The UNWTO sees the development of responsible, sustainable tourism that is accessible to all as a vehicle to attain the millennium development goals (MDGs) to alleviate poverty and strengthen sustainable development. The heads of state and government of the G20 nations have also taken the growing international importance of tourism on board. As part of the T.20 Initiative, the tourism ministers - with the participation of the Federal Government Commissioner for Tourism, Ernst Burgbacher - negotiated intensely to have the role of travel and tourism as a vehicle for job creation and global growth explicitly recognised for the first time in the final declaration of the G20 summit in 2012. Efforts will therefore be made towards the facilitation of travel (see also Part 3 – Collaboration in tourism policy at the European and international level).

Part 2 – Tourism policy at the Federal Ministry of Economics and Technology

2.1 Improving competitiveness, boosting performance – priority projects for the tourism industry

The central goal of the Federal Government's tourism policy is to boost the performance and competitiveness of the German tourism industry. The following priority areas have been identified within the framework of project funding:

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 Support is provided for individual projects focussed on market analysis, improving the quality of products and the promotion of sales, and in particular specific marketing assistance for innovative products and projects to boost quality in the tourism industry. These help to promote the performance of individual businesses and the environmentally sound development of the tourism industry.  Economic and technical studies or other kinds of studies, comparisons among companies and baseline studies  Further training for professionals and managerial staff from all areas of the tourism industry will also be funded through to 2013.

The Federal Government makes roughly €1.6 million available for project funding each year.

Collaboration with associations in the tourism industry The collaboration of the Federal Ministry of Economics and Technology and other federal departments with numerous associations in the tourism industry is extremely helpful when implementing projects aimed at improving the competitiveness and innovation of key players in the tourism industry. Given their special expertise and know-how, the associations can provide important pointers for the practical organisation of the projects and make a valuable contribution in general to constructive dialogue between the tourism industry, non-governmental organisations and the Federal Gov- ernment. Among others, the Federal Ministry of Economics and Technology has worked with the following associations and organisations:

Association/organisation Website ADAC Allgemeiner Deutscher Automobilclub e.V. www.adac.de (German Automobile Association) Allgemeiner Deutscher Fahrrad- Club e.V. (ADFC) www.adfc.de (German Cycling Club) Arbeitsgemeinschaft Barrierefreie Reiseziele in Deutsch- www.barrierefreie- land reiseziele.de (Association for Accessible Travel Destinations in Germany) Arbeitsgemeinschaft Deutscher Verkehrsflughäfen (ADV) www.adv-net.org (Associaton of German Airports) asr Allianz selbständiger Reiseunternehmen – Bun- www.asr-berlin.de

. . . Page 25 desverband e.V. (Alliance of Independent Travel Agencies) Bundesarbeitsgemeinschaft der Senioren-Organisationen www.bagso.de e.V. (BAGSO) (National Association of Organisations for Senior Citizens) Bundesarbeitsgemeinschaft für Urlaub auf dem Bauernhof www.landsichten.de und Landtourismus in Deutschland e.V. (National Association for On-Farm Tourism and Rural Tourism in Germany) Bundesarbeitsgemeinschaft Selbsthilfe von Menschen mit www.bag-selbsthilfe.de Behinderungen und chronischen Erkrankungen und ihren Angehörigen (BAG Selbsthilfe) (National Self-Help Association for People with Disabilities and Chronic Illnesses and Their Families) BundesForum Kinder- und Jugendreisen e.V. www.bundesforum.de (Federal Forum for Travel by Children and Young People) Bundesverband der Campingwirtschaft in Deutschland www.bvcd.de e.V. (BVCD) (Federal Camping Association of Germany) Bundesverband der Deutschen Fluggesellschaften e.V. www.bdf.aero (BDF) (Federal Association of German Airlines) Bundesverband der Deutschen Incoming-Unternehmen www.bvdiu.org e.V. (BDIU) (Federal Association of German Incoming Companies) Bundesverband der Deutschen Tourismuswirtschaft e.V. www.btw.de (BTW) (Federal Association of the German Tourism Industry) Bundesverband der Gästeführer in Deutschland e.V. www.bvgd.org (BVGB) (German National Tourist Guide Association) Bundesverband Deutscher Omnibusunternehmer e.V. www.bdo-online.de (BDO) (National Association of German Bus Companies) Bundesverband für Körper- und Mehrfachbehinderte e.V. www.bvkm.de (BVKM) (National Association for People with Physical and Multiple Disabilities) Bundesverband Selbsthilfe Körperbehinderter e.V. (BSK) www.bsk-ev.org (National Self-Help Association for Individuals with a Physical Disability) Bundesverband Wassersportwirtschaft e.V. www.bvww.org (National Association of the Water Sports Industry) Bundesvereinigung Kanu e.V. (BVKanu) www.kanutouristik.de (Federal Canoeing Association) Bundesvereinigung Lebenshilfe für Menschen mit geis- www.lebenshilfe.de tiger Behinderung e.V. (Federal Association for Support for People with Mental

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Disabilities) Deutsche Gesellschaft für Tourismuswissenschaft e.V. www.dgt.de (German Society of Tourism Research) Deutsche Zentrale für Tourismus e.V. (DZT) www.germany.travel (German National Tourist Board) Deutscher Blinden- und Sehbehindertenverband e.V. www.dbsv.org (DBSV) (German Association for the Blind or Visually Impaired) Deutscher Gehörlosen-Bund e.V. www.gehoerlosen-bund.de (German Society for the Deaf) Deutscher Heilbäderverband e.V. (DHV) www.deutscher- (German Association of Spas and Therapeutic Baths) heilbaederverband.de Deutscher Hotel- und Gaststättenverband e.V. (DEHOGA) www.dehoga.de (German Association of Hotels and Restaurants) Deutscher Industrie- und Handelskammertag (DIHK) www.dihk.de (Association of German Chambers of Commerce and Industry) Deutscher Kanu-Verband e.V. (DKV) www.kanu.de (German Canoeing Society) Deutscher Landkreistag (DLT) www.landkreistag.de (German Rural District Association) Deutscher Motoryachtverband e.V. (DMYV) www.dmyv.de (German Motorboat Association) Deutscher Olympischer Sportbund (DOSB) www.dosb.de (German Olympic Sports Confederation) Deutscher ReiseVerband e.V. (DRV) www.drv.de (German Travel Association) Deutscher Ruderverband e.V. (DRV) www.rudern.de (German Rowing Society) Deutscher Schaustellerbund e.V. (DSB) www.dsbev.de (German Showman Association) Deutscher Segler-Verband e.V. www.dsv.org (German Sailing Society) Deutscher Städte- und Gemeindebund www.dstgb.de (German Association of Towns and Municipalities) Deutscher Tourismusverband e.V. (DTV) www.deutschertourismusve (German Tourism Association) rband.de Deutscher Wanderverband www.wanderverband.de (German Hiking Society) Deutsches Jugendherbergswerk (DJH) www.jugendherberge.de (German Youth Hostel Association) Deutsches Seminar für Tourismus Berlin (DSFT) www.dsft-berlin.de (German Seminar for Tourism, Berlin) Deutsches Wirtschaftswissenschaftliches Institut für www.dwif.de Fremdenverkehr e.V. an der Universität München (dwif) (German Economic Research Institute for Tourism, University of Munich)

. . . Page 27

ECPAT Deutschland e.V. - Arbeitsgemeinschaft zum www.ecpat.de Schutz der Kinder gegen sexuelle Ausbeutung (German Association for the Protection of Children from Sexual Exploitation) Europäischer Verband der Veranstaltungs-Centren e.V. www.evvc.org (EVVC) (European Association of Event Centres) EUROPARC Deutschland e.V. www.europarc- (Umbrella Association of National Parks in Germany) deutschland.de Futouris e.V. www.futouris.org (Promoter of Sustainable Tourism) German Convention Bureau e.V (GCB) www.gcb.de Hotelverband Deutschland e.V. (IHA) www.hotellerie.de (German Hotel Association) Kreuzer Yacht Club Deutschland e.V. (KYCD) www.kycd.de (Cruiser Yacht Club of Germany) Nationale Koordinationsstelle Tourismus für Alle e.V. www.natko.de (Natko) (National Coordination Body for Tourism for All) RDA Internationaler Bustouristik Verband e.V. www.rda.de (Association of International Coach Travel) Reisenetz e.V. Deutscher Fachverband für Jugendreisen www.reisenetz.org (German Association for Youth Travel) Sozialverband VdK Deutschland e. V. www.vdk.de (VdK charitable organisation) Studienkreis für Tourismus und Entwicklung e.V. www.studienkreis.org (Study Group for Tourism and Development) Terre des hommes – Hilfe für Kinder in Not www.tdh.de (Terre des hommes – Help for Children in Need) TourCert (gemeinnützige Gesellschaft für Zertifizierung im http://www.tourcert.org Tourismus) (Non-profit organisation for certification in the tourism industry) Tourism Watch – Informationsdienst Dritte Welt- www.tourism-watch.de Tourismus (Information service for tourism in the third world) transfer e.V. www.transfer-ev.de Travel Industry Club e.V. www.travelindustryclub.de UNESCO-Welterbestätten Deutschland e.V. www.unesco-welterbe.de (UNESCO World Heritage Sites in Germany) Verband Deutscher Freizeitparks und Freizeitunterneh- www.freizeitparks.de men e.V. (VDFU) (Association of German Leisure Parks and Leisure Companies) Verband deutscher Naturparke (VDN) www.naturparke.de (Association of German Nature Parks) Verband Deutsches Reisemanagement e.V. (VDR) www.vdr-service.de

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(Association of German Travel Management) Verband Internet Reisevertrieb e.V. (VIR) www.v-i-r.de (Association of Internet-based Travel Organisations) Vereinigung Deutscher Yacht-Charterunternehmen e.V. www.vdc.de (VDC) (Association of German Yacht Charter Companies) Verkehrsclub Deutschland e.V (VCD) www.vcd.org (Transport Club of Germany) Willy Scharnow- Stiftung für Touristik www.willyscharnowstiftung. (Willy Scharnow Tourism Foundation) de Wirtschaftsverband Wassersport e.V. (WVW) www.wassersport- (Business Association for Water Sports) verband.de

Tourism prospects in rural areas

Running from September 2011 through to March 2013 the "Tourism Prospects in Rural Areas" project is one of the most important tourism policy projects launched by the Federal Government. With a practical guide and complementary, detailed short reports the project makes a key contribution to making rural areas more appealing for tourists. All the experts involved rejected the idea of a single concept that does not give due consideration to the differences in the rural regions.

City-based tourism has been the primary driver of growth in the German tourism industry up to now. In contrast, most rural areas lag behind when it comes to growth. Tourism, however, is especially important for jobs and income particularly in rural areas, which are often structurally weak regions.

The project saw close collaboration between the Federal Ministry of Economics and Technology and the Federal Ministry of Food, Agriculture and Consumer Protection, and benefited from the vast expertise of the German Travel Association (Deutscher ReiseVerband) in its capacity as project manager. The project was executed by Project M, a consulting agency.

Interim results of the project were presented and discussed in October 2012 at four regional conferences held in Lauenburg, Suhl, Geisingen and Wald/Allgäu. The final project results were presented in the form of a practical guide at the final project convention which was held on 21 January 2013 as part of the Grüne Woche agricultural

. . . Page 29 fair in Berlin. Compact and concise, this practical guide details the opportunities, challenges and prospects for ten overarching action areas:

 Sustainable tourism development in rural areas  Product presentation  Networks and alliances  Infrastructure  Branding  Communication and marketing  Organisational structures  Skilled labour  Mobility  Accessibility

The practical guide is available as a hard-copy brochure or can be downloaded online from the website of the Federal Ministry of Economics and Technology and the project website www.tourismus-fuers-land.de. Ten short reports on the action areas with additional approaches, practical examples and compact checklists for guidance provide more detailed information. These are also available for download on the websites mentioned above.

In October 2012, the project was expanded to include a special study on leisure parks, markets and local festivals, which is also available for download on the aforementioned websites.

Parties involved are now considering the best way to organise the transfer of knowledge to the local business community and policy-makers.

Analysis of the labour market and skilled labour in the tourism industry

With the shortage of skilled labour in the tourism industry becoming increasingly evident, the Federal Ministry of Economics and Technology is supporting the project,

. . . Page 30

"Analysis of the Labour Market and Skilled Labour in the Tourism Industry". Lasting for two years, the project is set to be completed in May 2014.

The project is being executed by a consortium of four Land institutions, headed by the Saxony Educational Institute of Industry and Commerce (Bildungswerk der Sächsischen Wirtschaft). Other partners include the Bavarian Research Institute for Vocational Education and Training (bayrisches Forschungsinstitut Betriebliche Bildung, (f-bb)), the Saxony-Anhalt Educational Institute of Industry and Commerce (Bildungswerk der Wirtschaft Sachsen-Anhalt) and the Society for Labour Market and Structural Policy - Institute of Business Associations in Schleswig-Holstein (Gesellschaft für Arbeitsmarkt- und Strukturpolitik - Institut der Schleswig-Holsteinischen Unternehmensverbände, (gefas)).

The primary objectives of the project are to analyse the tourism-related labour market and the situation as regards skilled labour in the participating Länder, and to draw conclusions for both the participating Länder and the Federal Government. Specific needs are to be identified and approaches designed for the positive development of the labour market situation in the tourism industry. The project seeks to identify tourism trends and requirements placed on key players in the industry and render these transparent. At the same time, it aims to increase staff motivation and skills development and contribute to enhancing the competitive position of businesses in the tourism industry.

The analysis is conducted on the basis of sectoral, quantitative and qualitative criteria and focuses on three specific areas, namely qualification level and needs, retention and motivation elements, and professional and managerial staff development. The project concentrates on the areas of accommodation and gastronomy, cultural services and tourist attractions, tourism associations, clubs and organisations.

Development and marketing of accessible offerings and services in Germany

The creation of accessible tourism in Germany has been a priority of the Federal Government's tourism policy for many years. The basis for this was created as early as the late 1990s when the Federal Ministry of Economics and Technology initiated a basic

. . . Page 31 study into tourism for people with a disability in 1996/97 and 1998. Since then accessible tourism as a priority area has been continuously improved upon and refined.

This is achieved by defining the creation of accessibility as a funding criterion for all business promotion programmes, particularly among SMEs. These programmes are also open to all businesses active in the tourism industry provided they meet the eligibility criteria. Here, SMEs are primarily supported through development promotion loans from the ERP and the KfW, Germany's state-owned development bank. Other funding is generally granted by the competent authorities of the Länder.

Furthermore, in their individual budgets various federal ministries lend financial support to specific projects geared towards the development of accessible tourism. For example, the Federal Ministry of Economics and Technology is funding a project on the "development and marketing of accessible offerings and services in Germany" between 2011 and 2013. The project is executed by the German Seminar for Tourism (DSFT) in tandem with the National Coordination Body for Tourism for All (NatKo).

The project is an integral part of the Federal Government's National Action Plan to implement the UN Convention on the Rights of Persons with Disabilities. It is widely accepted and supported by the governments of the Länder, tourism marketing organisations, tourism industry associations, transport operators and organisations for people with disabilities. As their representatives are members of the project advisory council and an extended task force, they are involved in the implementation of the project and can bring their experience to it.

The project has four modules, some of which are addressed simultaneously:  One aim is to develop a single and transparent labelling system for accessible services along the entire tourism service chain which gives customers clear information about the degree of accessibility of tourism facilities and services.  A ranking system is defined for quality requirements and criteria for accessible offerings and services in the tourism industry. This system is primarily based on the agreements on targets in the hospitality sector and standards defined by the German Standards Service (DIN). These requirements must be met before a business can display the accessible services sign.

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 The key players along the tourism service chain receive training as regards the quality requirements and accessibility labelling system so that they can offer appropriate accessible products and services.  Accessible services and offerings are presented on an Internet platform. The platforms of the German National Tourist Board are used to market accessible services abroad. The platform itself will have an accessible format so that it can be accessed by everyone.

Innovative medical tourism in Germany Recommendations for action for the development and implementation of successful services in the field of medical and health-related tourism

Medical tourism is a modern and growing business segment. The aim of the project entitled "Innovative Medical Tourism in Germany - Recommendations for Action for the Development and Implementation of Successful Services in the Field of Medical and Health-related Tourism" was to identify market trends and develop ideas and innova- tions. The project identified best practice examples, which businesses are encouraged to emulate and which enable the broad communication of the recommendations for action. The German Tourism Association (Deutscher Tourismusverband, DTV) acted as the project executing organisation.

The portfolio of medical tourism services in Germany was analysed in depth at nine nationwide conferences with the help of around 500 experts and practitioners and a high-profile advisory council with members from the political arena and the business community. The aim is to identify ideas for medical tourism to make Germany a competitive travel destination on the long term and establish medical tourism as a premium product far outside the country's borders. This is to primarily benefit the SME-based tourism industry.

A medical tourism convention was held at the Federal Ministry of Economics and Technology in April 2011. With over 240 people in attendance, the convention presented action guidelines and seven industry reports with market analyses, checklists and recommendations for action for hotels, clinics and health centres, for instance, as well

. . . Page 33 as for spas and health resorts (see also www.innovativer-gesundheitstourismus.de and www.bmwi.de).

Research report on the "effects of demographic change on the tourism industry and conclusions for tourism policy"

In 2009, the Federal Ministry of Economics and Technology provided funding for the research report on the "effects of demographic change on the tourism industry and conclusions for tourism policy". The expert report was drawn up by the Institute for Tourism and Resort Research in Northern Europe (N.I.T.) in collaboration with dwif- Consulting Berlin and TNS Infratest Munich.

The report forecasts a slight increase in the volume of holidays and short trips, a shift in the market share towards senior citizens and single-child families and greater importance attached to the fields of culture, natural environments and health. According to the report, the importance of senior citizens in the tourism industry will grow at a faster pace than senior citizens' actual share in the population. Furthermore, the institutes expect a moderate decline in trips within Germany and more trips abroad as future senior citizens are expected to continue their previous travel patterns even in old age provided they have the health to do so. Therefore future senior citizens will be better travelled and more exacting than previous generations and so the tourism industry must make special efforts in attracting this customer group.

Baseline study into cycle tourism in Germany

A research report sponsored by the Federal Ministry of Economics and Technology in 2009 revealed the importance and potential of cycle tourism in Germany, a sector that reports gross earnings of around €9.2 billion and some 186,000 employees. Cycle tourism generates roughly 22 million overnight stays every year and spending of around €65 per cycle tourist per day. Each year German bicyclists take around 153 million day trips that do not involve an overnight stay. Direct spend from cycle tourists benefits the hospitality sector (62.7%), retail (24.9%) and other services (12.4%). The study gave

. . . Page 34 rise to projects in the federal Länder and provided key impetus for the joint Federal- Länder project, "Development and Marketing of the D3/R1 Bicycle Route across Federal Länder".

Development and marketing of the D3/R1 bicycle route across federal Länder

The "D3 long-distance bicycle route" pilot project is jointly initiated and funded by the Federal Ministry of Transport, Building and Urban Development, the Federal Ministry of Economics and Technology and the federal Länder of North Rhine-Westphalia, Lower Saxony, Saxony-Anhalt, Brandenburg and Berlin. This pilot project successfully tested the coordination, planning and marketing of the R1 European bicycle route as a model route for the D3 route running from the Dutch to the Polish border.

As part of this project the German Tourism Association (DTV) modernised, newly signposted and professionally marketed the 960-kilometre route. This resulted in the route being awarded a three-star certification by the German Cycling Club (ADFC), which increased the route's publicity, number of tourists and overnight stays. The marketing package developed in the course of the project can now be used as a model for the 11 other long-distance cycling routes across Germany (D-routes).

European Destinations of Excellence 2009/2010 ("EDEN") competition focussing on aquatic tourism

The European Commission has been holding the European Destinations of Excellence (EDEN) competition ever since 2006. Based initially on competitions at the national level and then at the European level, each year EDEN selects regions or destinations that are not yet well know but that offer a quality experience that is particularly sustainable. With 25 Member States taking part, "aquatic tourism" was the chosen "theme of excellence" for the 2009/2010 competition.

Germany also took part in this competition. The EDEN entry was in the form of a project that was funded by the Federal Ministry of Economics and Technology. The European

. . . Page 35

Commission helped to co-fund the project and the German Tourism Association (Deutscher Tourismusverband, DTV) acted as the project executing organisation.

The national winners were selected in May 2010 and then took part in the competition at the European level. In Germany the winners were marketed both through the publicity they received from the award, and also by the German National Tourist Board (DZT).

Marketing initiative for aquatic tourism

From December 2010 through to the end of 2012 the Federal Ministry of Economics and Technology promoted the "Marketing Initiative for Aquatic Tourism" project with the aim of raising the profile of Germany at the international level as a destination for water- based tourism. The project is executed as part of the initiative of the German Bundestag to "improve infrastructure and marketing for aquatic tourism in Germany". The Tourism Association of Mecklenburg Western Pommerania (Tourismusverband Mecklenburg- Vorpommern) acted as the project executing organisation.

The project modules comprised the development of action guidelines for small and medium-sized operators of aquatic tourism facilities, the creation of an Internet platform to better market Germany as a destination for water-based tourism, the harmonisation of quality standards in aquatic tourism and the presentation of the project at the "Boot 2012" water sports trade fair in Düsseldorf.

Particular attention was given to small canoeing business enterprises and the implementation of minimum quality standards. Furthermore, the trade exhibition strategy designed in the course of the project is to be used as the blueprint for future aquatic tourism conventions and exhibitions to present Germany as a destination for water- related tourism.

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Celebrating 400 years of German immigrants in America - raising awareness for the potential of heritage tourism in Germany and Placing new heritage products in Germany on the American market

From the very outset, these two projects were planned and communicated as a single project and were promoted and funded during 2009 and 2010. Heritage tourism is a new tourism market and had received very little attention at the national level up until then. Nevertheless the German Tourism Association (DTV) and the German National Tourist Board (DZT), with responsibility for the first and second part of the project respectively, managed to secure the participation of practically every stakeholder touching on the subject of emigration (businesses, agencies, German emigration centres and museums).

In the first phase of the project the German Tourism Association organised a series of workshops in 2009 for interested German service providers and institutions geared towards awareness building, motivation and heritage product development for the American market. These workshops saw the development of new products and the creation of a network of partners which was to act as the base to internationally market the services and facilities of the primarily small- and medium-sized businesses.

In the second project phase the German National Tourist Board channelled the findings and products into a marketing campaign in the United States. The "Heritage tourism" project managed to professionally and skilfully address a niche market that had not previously been tapped. In the U.S. the "emigrant tourism" theme was explored and pursued in greater detail.

Promoting tourism for children and young people

In 2012 the ruling coalition called for the Federal Government to support and continue to promote tourism for children and young people (Bundestag printed paper 17 / 8451).

. . . Page 37

The Federal Ministry of Economics and Technology is pleased to act on the proposal and put specific measures in place to strengthen tourism for children and young people - and thereby also Germany's position as a tourist destination - with the support of the German National Tourist Board (DZT). It also results in positive knock-on effects for the "Youth Hotspots in Germany" 2013 marketing campaign launched by the German National Tourist Board. Apart from its economic significance, this topic is ultimately also important from an overall societal perspective as getting to know your own country and sharing information and ideas with other cultures and nationalities are formative experiences for young people, and occupy an increasingly important position in a globalised world.

The German Youth Hostel Association (DJH) acted as the project executing organisation. Running from October 2012 through to April 2014, the project's goals include the intensive international marketing of services and facilities for tourism for children and young people, particularly by the German National Tourist Board, enhanced networking and collaboration among providers of youth tourism services, and the development of a professional marketing strategy. Six nationwide conferences are to be held to share best practices and develop recommendations for action. The project is flanked by a special advisory council made up of representatives of the tourism industry and non- profit institutions.

Tourism: an important factor for the economy (see also Part 1.2 - Tourism: an important factor for the economy)

Building on studies from 2003 and 2005, the Federal Ministry of Economics and Technology commissioned a study in November 2010 to gauge the contribution tourism makes to the gross value added and employment in Germany based on the "tourism satellite account", an internationally accepted methodology. The study was assigned to the Association of the German Tourism Industry (BTW), and DIW econ GmbH was chosen as the project execution agency from several candidates.

The unabridged version can be accessed on the Internet, while a hard-copy brochure of the executive summary is available in German and English (see also www.bmwi.de ).

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Innovative approaches to e-commerce in the tourism industry

In 2009 and 2010 the Federal Ministry of Economics and Technology lent financial support to the "Innovative Approaches to e-commerce in the Tourism Industry" project. The project was executed by the German Travel Association (DRV).

In tandem with the University of Worms, new approaches for the use of the Internet in the travel industry were developed, most notably in the field of e-commerce, and examples of best practices in the tourism industry were analysed and described. As a result, the Web 2.0 series of seminars was developed in 2009, while other seminars concentrating on social media and various aspects of online marketing were also held. Experienced IT specialists were brought on board for the seminars to share their practical experience. For the enterprises whose representatives attended the seminars, this opened up new areas of business that offered them the opportunity to be innovative and successful even in a difficult economic climate.

Furthermore the seminars also compiled information about IT systems for the tourism industry to assist businesses choose the right computer systems for their day-to-day operations.

"Overnight visitor spending in Germany"

Between August 2008 and December 2009 the German Economic Research Institute for Tourism at the University of Munich (dwif) compiled the baseline study on "Overnight Visitor Spending in Germany" on behalf of the Federal Ministry of Economics and Technology and all the Länder. This was a new edition of a study conducted in 1999/2000 and details whether and how the spending patterns of overnight visitors in Germany have changed since then.

The data gathered underline the economic role of tourism, help the Länder and regions get a pulse on their competitive position and therefore provide a valuable basis for making tourism policy decisions. The study delivers important structural and compara-

. . . Page 39 tive data on the type and amount of tourist spending and the effects this has on income and employment.

According to the study of the dwif, each overnight visitor at a commercial accommodation establishment with more than 8 beds spends €131.60 each day on average. Benchmarked against data gathered in 2000 this represents a spending increase of around 41 percent. Significantly higher increases in spending can be reported among visitors staying in private accommodation, spending on average €72.10 per person per day, and those staying in camping sites, averaging €45.60 per day. Averaged across all types of accommodation service, each visitor spends €116.00 in Germany per day. Accounting for the bulk of the spending (62 percent) the hospitality sector is the biggest winner, but retail (18 percent) and other service sectors (20 percent) also benefit considerably from the tourism industry. Overnight tourism can report gross earnings of roughly €53 billion overall.

"German day-trippers"

The baseline study is a joint Federal-Länder project. Following a pan-EU selection procedure, dwif – the German Economic Research Institute for Tourism, University of Munich – was assigned responsibility for project execution. dwif managed to bring dwif Consulting and ADAC on board as project partners with financial backing. The Federal Government Commissioner for Tourism, Ernst Burgbacher, kicked off the project in March 2012 and final results are expected in the summer of 2013.

Day trips are the most important segment of in-Germany tourism (2006: 3.4 billion day trips; revenues of roughly €94 billion plus €70 billion in travel expenses). The aim of the project is to reassess the economic significance of day tourism and update the data from the previous years (1986, 1993 and 2004 to 2006). The results can be used to check whether existing programs are consistent with market needs, optimise the utilisation of the transport and leisure infrastructure, initiate collaboration between key players in the tourism industry, devise strategies and plans, and better gauge the

. . . Page 40 potential for innovative investment. The aim is to also identify changes in behavioural patterns and new trends, and to assess how they affect tourism-related leisure activities.

The content of the project focuses on surveying the intensity and frequency of day excursions and day business trips among the German population. The study records the amount spent, which is needed to determine the earnings of the sectors benefiting from the day trips. In addition to socio-demographic data, the survey also compiles information on the interrelations between source and target areas, seasonal patterns, week cycles, main reasons for trip, activities, use of transport systems, distances travelled, journey duration and group size for day trips. The survey is based on around 36,000 interviews (by TNS Infratest) that are held weekly for 12 months with the aid of a representative telephone survey among residents.

"Certification of the “Service Quality Germany” quality system to meet DIN EN ISO 9001 standards"

Motivated by the goal of improving and safeguarding the quality of service along the entire value added chain in the tourism industry, an initiative has taken shape since 2007 for quality management across multiple sectors. The Länder are partners to this initiative, which goes by the name of "Service Quality Germany". Project executing agency DTV acts as the agent and joint coordination body.

Work groups with responsibility for specific subject areas are responsible for the further enhancement and refinement of the system. The priority is to create and optimise a binding framework, binding content and binding processes for all levels of the coopera- tive association and for all partners. Funded by the Federal Ministry of Economics and Technology, the certification of SQD to DIN EN ISO 9001 seeks to create and implement the internal and binding quality assurance standards that are still outstanding.

Against the backdrop of increasing international competition among travel destinations, better product and service quality gives Germany a competitive edge. Transparent quality and transnational QA systems give customers direction. Running from Novem-

. . . Page 41 ber 2009 to February 2013, the project therefore makes a key contribution to ensuring that Germany can continue to offer tourism services with a remarkably good price/quality ratio.

The camping market in Germany 2009/2010

The "Camping Market in Germany 2009/2010" study was compiled between November 2009 and March 2010 and funded by the Federal Ministry of Economics and Technolo- gy. The German Tourism Association (DTV) was responsible for project execution. The General German Automobile Club (ADAC), the Federal Camping Association of Germany (BVCD) and the academic institute dwif-Consulting GmbH were involved in the project.

With results based on updated data, analyses and new calculations concerning camping-related tourism underlined the economic importance of camping tourism in Germany and provided figures for the earnings, income and number of individuals employed in the sector.

"Hiking: a leisure and holiday market"

The Federal Ministry of Economics and Technology supported the "Hiking: a Leisure and Holiday Market" study between 2008 and 2010, and the German Hiking Association (DWV) was appointed the project executing agency. This was the first time ever that the field of hiking was examined with regard to its economic impact, environmental and mobility issues and in connection with demographic change and its potential from a public health point of view.

From an economic perspective the central outcome of the study is that hiking-related tourism effectively promotes business development in many regions. Day trippers and overnight ramblers combined fork out close to €7.5 billion for their leisure activity in Germany each year. Roughly 144,000 jobs depend directly on hiking tourism. An analysis of the product groups in demand among hiking tourists reveals that cafés

. . . Page 42 and restaurants are the biggest winners from the hiking industry (58 percent). The study showed that the average rambler spends €90 each year on hiking gear, with total annual spending on hiking-related equipment amounting to roughly €3.7 billion. Some 56 percent of the German population, or 40 million people, like to hike – a trend that is set to rise.

Rural areas, in particular, are pinning their hopes on hiking-related tourism as a growing economic factor, and can advertise their services as a quality host for hikers on the "Wanderbares Deutschland" Internet portal.

Travel by children and young people in Germany in 2008

Between March and October 2009, the Federal Forum for Travel by Children and Young People (BundesForum Kinder- und Jugendreisen) received funding for a study entitled "Travel by children and young people in Germany in 2008 – current data on structures and volumes, proposals for continuous data compilation going forward, and steps to create a reference framework". This study sought to compile up-to-date data on the structure and volume of travel by children and young people on an ongoing basis and provide planning guidance and tools, and thereby made a key contribution to the economic success of all areas of tourism involving children and young people across Germany.

Travel by children and young people is an important tourism segment with huge potential for development both from an economic and educational perspective ("out-of- school learning"). Overall 20 percent of all holidays within Germany are taken by adolescents and young adults, with travel spend for journeys made by children and young people totalling roughly €12 billion each year. The World Tourism Organisation UNWTO expects children and young people to account for a 25 percent market share in the tourism industry in the future.

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Travel patterns of Germans within Germany

The aim of the study conducted on behalf of the Federal Ministry of Economics and Technology was to examine the travel patterns of Germans, particularly with regard to travel intensity and frequency, travel destinations, travel duration, time of travel and travel organisation, modes of transport used, accommodation and spending. The results are to aid policy-makers, the business community and associations in decision-making processes.

Published during the 2013 ITB travel trade show, the study allowed the Federal Ministry of Economics and Technology to shine a spotlight on domestic tourism and examine what motivates Germans and - for the first time ever - German-speaking foreigners living in Germany to go on holidays and what impressions they take with them from their vacations.

The German National Tourist Board was responsible for the production of the study, the results of which are available for download on the Internet (www.bmwi.de and www.germany.travel.de).

2.2 Training and education in the tourism industry

The professional training of staff is critical to the competitiveness of the tourism industry, consisting primarily of small- and medium-sized enterprises (roughly 131,700 restaurants and 41,300 accommodation facilities according to the Federal Statistical Office; and roughly 2,500 tour operators, 10,400 travel agencies and 4,600 bus companies according to the German Travel Association (DRV)). Against the backdrop of the challenges presented by the demographic change there is a pressing need to offer more people good, certified training and education to increase the rate of employment on the long term. The priority is create and strengthen awareness for this among the midmarket business operations.

The training of professionals is pivotal to the success of the tourism industry in Germa- ny. To meet the future demands for quality tourism, it is therefore imperative to already

. . . Page 44 make the principles of sustainable tourism and the implementation of sustainable tourism a key component of the initial and continuing training programmes in the tourism and leisure industry.

Training in the tourism industry Close to 60 percent of all young people in Germany earn their qualifications through the dual system of vocational training and education. Training is provided on the basis of the roughly 345 training regulations currently in place for state recognised occupations requiring formal training (training occupations). They form the legal basis for the specific implementation of in-company vocational training, and are complemented by the framework curricula for vocational schools. The training provided by companies is flanked by inter-company seminars and additional skills development programs.

The dual vocational training system in the tourism and leisure industry has a high standing. A total of twelve occupations requiring formal training are available in the tourism industry, including six occupations in the hospitality sector, air traffic management, shipping and chartering management, transport service agent, aviation services specialist, and tourism and leisure agent - a profession which was introduced in 2005. Furthermore the formal training to become a travel agent was overhauled in 2011, and the program is now known as tourism and travel management (agent for private and business travel).

Nevertheless the results of an online business training survey conducted by the DIHK in 2012 revealed that - compared with the rest of the industry - the hospitality sector has by far the biggest problems in attracting young people for training and in filling training places. 52 percent of businesses reported problems in this area in 2011, compared with 53 percent in 2010 and 43 percent in 2009. In the new Länder (former east Germany) two thirds of cafes and restaurants claim that they are unable to fill all positions, with the following reasons cited: lack of suitable candidates (66%); individual did not commence training (21%); early termination of training agreement (31%); no applications submitted whatsoever (30%).

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Table Training relationships in the tourism sector 2012 Total training Training New training contracts relationships contracts, concluded in 2012, and thereof with change on previous year women in % 1 Hospitality sector 4,695 2,979 2,608 -15.73 specialist (Fachkraft im Gastgewerbe) 2 Hotel management 23,866 17,428 9,796 -6.22 (Hotelfachmann/-frau) 3 Hotel commerce and 1,063 671 481 +9.32 finance clerk (Hotelkaufmann/-frau) 4 Cook 25,757 6,010 10,551 -12.16 (Koch/Köchin) 5 Restaurant manage- 8,410 5,694 3,706 -15.16 ment (Restaurantfachmann/- frau) 6 System catering 5,172 2,682 2,082 -8.60 specialist (Fachmann/-frau für Systemgastronomie) Total professions in 68,963 35,464 29,224 -10.47 the hospitality sector (I). Travel agent1 1,761 1,483 0 Profession has been replaced by (Reiseverkehrskauf- the tourism and travel manage- 7 mann/-frau) ment profession Tourism and travel 3,439 2,916 2,042 +22.05 management (agent for private and business travel) (Tourismuskaufmann/- frau (Kaufmann/-frau für Privat und Ges- chäftsreisen)) 8 Air traffic management 94 64 33 +10.00

1 Effective from 1 August 2011 the formal training programme to become a travel agent was amended and replaced by the new training regulation for tourism and travel management (agent for private and business travel).

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Total training Training New training contracts relationships contracts, concluded in 2012, and thereof with change on previous year women in % (Luftverkehrs- kaufmann/-frau) 9 Shipping and charter- 951 445 338 -12.21 ing management (Schifffahrtskaufmann/- frau) 10 Transport service 1,075 663 406 +6.00 agent (Kaufmann/-frau für Verkehrsservice) 11 Aviation services 283 227 105 -2.78 specialist (Servicekaufmann/- frau im Luftverkehr) 12 Tourism and leisure 1,209 964 464 +1.31 agent (Kaufmann/-frau für Tourismus und Freizeit) Total other (II) 8,812 6,762 3,388 -3.75

Tourism-related 77,775 42,226 32,612 -9.81 professions in total (I+II)

Source: Association of German Chambers of Commerce and Industry

The hospitality sector has entered into many partnerships with schools and is relying heavily on an additional range of internships for school-goers. The hospitality sector is the only sector where the search for trainees from abroad has assumed a significant dimension (3 percent). The sector depends heavily on online job portals (38 percent) and social networks (31 percent) in its search for candidates. Furthermore, at 32 percent the share of business establishments that are prepared to significantly lower the qualification requirements of applicants is twice as high as the average in other sectors. There was a significant increase in the percentage of businesses in the hospitality sector that intend to hire young trainees on a full-time basis once they have completed their period of training (while 16 percent planned to do so in 2011, this had already risen to 27 percent in 2012). Similarly, 27 percent of business enterprises in the hospitality

. . . Page 47 sector were unable to hire trainees as the trainees chose to join another business or opted to pursue other education channels despite being offered a full-time position after training. However in this particular industry, it is perceived as positive if individuals move from one establishment to another for a few years as it gives them the opportunity to hone their skills and develop them further. The willingness to fill training positions with young people with learning difficulties is also comparatively high, with only 11 percent (14 percent in 2010) of all business operations rejecting this option outright. In this industry the priority is for individuals to have social skills, i.e. they need to be friendly and communicative when dealing with customers and be able to work well in teams (source: Online "Training 2012" business survey of the Association of German Cham- bers of Commerce and Industry (DIHK)).

Training programmes in the tourism industry - Tourism and travel management (agent for private and business travel)

Demographic change is also altering the visitor structure and the labour market in the tourism industry. Even today it is already difficult to fill positions in some tourism-related jobs, which is why the priority must now be to further increase the appeal of the tourism industry as a place to work.

Well-qualified staff with solid training and education in line with market needs are therefore essential to safeguarding the long-term economic success of the tourism industry. The new occupation requiring formal training entitled "tourism and travel management (agent for private and business travel)" was introduced on 19 May 2011 and in this connection constitutes an important and correct signal for the industry and for young people. It replaces the travel agent training occupation which was previously in place.

The evolution of the travel industry towards a multifaceted business structure and the shift from a seller's market to a buyer's market place completely new demands on both services and staff. Project management skills and knowledge of business travel needs are becoming increasing important and essential in business practice.

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For this reason, while still containing the aspect of tour organisation and travel management focussed primarily on private travel, the overhauled training occupation now also includes business travel as a new field of business. This broader approach and the new direction of the occupation is therefore also reflected in the name of the recognised occupation, "tourism and travel management (agent for private and business travel)", making a clear distinction between this occupation and the "tourism and leisure agent" occupation geared towards incoming tourism. The training program takes three years in total.

Study programmes An overview of all the universities, universities of applied sciences and professional academies that offer tourism-related and tourist management study courses is provided under www.Tourismus-Studieren.de. Candidates can also search for possible study programmes in the preferred field of study in the university finder tool provided by the Conference of University Directors.

In contrast to the programmes at universities of applied sciences and professional academies, the courses at universities tend to have a more theoretical approach and are more geared towards acquiring general skills to work in the industry. The new bachelor and master degree courses help prepare individuals directly to work as a tourism professional and are normally run in close collaboration with partner companies in the business community and have a strong practical element.

Continuing education in the tourism industry Continuing education, building generally on a state recognised occupation requiring formal training, is a central pillar of measures to professionalise workers. This is also true of the tourism industry in which many individuals continue to make use of the current continuing education opportunities. Aiming to reach out to individuals interested in continuing education from as many areas of the tourism industry as possible, the continuing professional development programme to become a "certified senior tourism clerk" was modernised in 2011 and entered into force on 1 July 2012.

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Promotion of continuing professional development (CPD) in the tourism industry The promotion of CPD in the tourism industry was restructured following calls for reorganisation from the Parliamentary Public Accounts Committee of 26 September 2009. The aim was to open up competition in the promotion of CPD and for all suitable providers on the market to be able to take part in CPD.

To this end, a Continuing Professional Development Directive (Fortbildungsrichtlinie) was developed on the basis of which suitable training companies can apply with projects. The Funding Directive for the Promotion of Continuing Professional Develop- ment (Förderrichtlinie zur Fortbildungsförderung) was published in the Federal Gazette on October 2010 and entered into force one day later. Furthermore, the promotion of continuing vocational education and training (CVET) constitutes a core element of labour market policy and is complemented by special programmes run by the Federal Employment Agency.

In addition, the Federal Government also supports CPD measures within the framework of suitable projects to boost performance and enhance service in the tourism sector. For example, as part of the project to "Develop and market accessible offerings and services in Germany" (see also Part 2.1 - Improving competitiveness, boosting performance – priority projects for the tourism industry), training courses and seminars are also offered to upskill key players along the tourism service chain with regard to accessibility and "tourism for all".

Table CET examinations held by the Association of German Chambers of Commerce and Industry in the field of tourism in 2011

Total number of candi- Candidates who passed dates Certified senior clerks (Fachwirte) (I) 1. Certified senior tourism 306 252 clerk (Tourismusfachwirt) 2. Certified senior transport 655 531

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Total number of candi- Candidates who passed dates operations clerk (Verkehrsfachwirt) Certified senior clerks, total 961 783 (I) Master-level certification (Fachmeister) (II) 3. Head chef 723 505 (Küchenmeister) 4. Certified hotel manager 108 87 (Hotelmeister) 5. Certified restaurant 104 75 manager (Restaurantmeister) Master-level certification, 935 667 total (II) Tourism-related CVET, 1,896 1,450 total (I+II)

Source: Association of German Chambers of Commerce and Industry

Directive on the Recognition of Professional Qualifications The tour manager/tourist guide profession is regulated in some EU Member States, such as Italy or France. Under the provisions of the Directive on the Recognition of Professional Qualifications, German tour managers who accompany travel groups in such EU Member States as part of temporary cross-border services, must furnish proof of two years' professional experience.

To support German tour managers when accompanying travel groups to other Member States, the German Chambers of Commerce and Industry worked closely with the Federal Ministry of Economics and Technology and the German Travel Association to develop certificates of conformity that can be issued to interested tour managers. These

. . . Page 51 certificates make it easier for tour managers to prove that they meet the requirements of the Professional Qualifications Directive in situations in which the profession is regulated in the country of destination.

2.3 Regional and structural policy for the tourism industry

Joint Federal/Länder Scheme for the Improvement of Regional Economic Struc- tures Regional policy in Germany seeks to help structurally weak regions to take part in general economic development by compensating for the disadvantages of their location, and to close the gap between regional development disparities. In particular, regional policy makes a key contribution to strengthening overall economic growth in structurally weak regions, facilitating the structural change that is needed for growth by creating jobs that are competitive on the long term, and relieving the burden on the regional labour markets. Regional policy is therefore of central importance to strengthening the position of Germany as a tourism location.

The Joint Federal Government/Länder Scheme for the Improvement of Regional Economic Structures is the central instrument of regional policy that is geared towards establishing equal living conditions in Germany (Act for the Improvement of the Region- al Economic Structure (GRW-Gesetz) of 6 October 1969, Federal Law Gazette I, Page 1861, last amended by Article 8 of the Act of 7 September 2007, Federal Law Gazette I, Page 2246). Regional economic structural improvement funds can be used to promote:

 Investment in trade and industry, including the tourism industry  Municipal investment in commerce-related infrastructure including tourism- related basic infrastructure measures (site development for tourism and public tourism facilities)  Non-investment measures and other programmes to strengthen the competitiveness of businesses, to support structural problems with regional policies and to support regional activities

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Basic tourism infrastructure measures typically include information centres and systems, spa and sea-front promenades, bathing facilities or cycling and hiking routes. Much of the regional economic structural improvement funds are directed towards tourism.

Further to this, regional management projects, cooperation networks, cluster management projects and regional budget projects are supported to pool regional development activities and drive collaboration in and between the regions. These projects are also specifically implemented to activate regional measures in the field of tourism.

By common consent, the Federal Government and the Länder define the framework for regional economic structural improvement funding and the appropriation of funds. The Länder are responsible for executing the funding and promotion programmes.

The following tables illustrate the use of regional economic structural improvement funding for the tourism sector for 2009-2012, broken down into trade and industry and commerce-related infrastructure.

Trade and industry: promotion of accommodation and catering sector Amounts authorised in 2009-2012 period

Number of Level of Authorised Permanent jobs cases investment in regional Additional Safe- million euro economic guarded structural improvement funding in million euro Old Länder 207 359.58 65.78 999 2,846 New Länder (including Berlin) 550 906.22 259.31 3,143 6,017 Total 757 1,265.80 325.09 4,142 8,863

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Commerce-related infrastructure: promotion of site development and public facilities for the tourism industry Amounts authorised in 2009-2012 period

Number of cases Level of investment Authorised regional in million euro economic structural improvement funding in million euro Old Länder 88 249.57 132.85 New Länder (including Berlin) 388 468.09 344.00 Total 476 717.66 476.85

Funding of around €583 million is earmarked in the 2013 federal budget for the improvement of the regional economic structure. This also includes €7 million for guarantee losses. Further to this, provisions are also made for commitment appropriations totalling roughly €576 million over 2014, 2015 and 2016. The ratio of commitment appropriation has been defined as 6/7 for the new Länder and Berlin and 1/7 for the old Länder. Following a principle of co-funding, the Länder match the amount of funding provided in the federal budget.

More information is available at www.bmwi.de (search term: improving regional economic structures) or on the websites of the ministries of economics of the federal states or the websites of the state senate departments for economics.

EU structural policy The aim of EU structural policy is to create more growth and jobs in Europe. To this end, EU structural funds (the European Regional Development Fund (ERDF) and European Social Fund (ESF)) are primarily channelled into less developed regions to help the regions grow. At the same time, in line with the Lisbon Strategy and the Europe 2020 Strategy, the funds are also used to promote smart, sustainable and inclusive growth in all regions of Europe.

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Germany is receiving a total of roughly €26.3 billion (in current prices) in the current 2007-2013 structural funding period, with roughly €15.3 billion apportioned to the new Länder and roughly €10.2 billion to the old Länder. The overall strategy of EU structural funding in Germany is set out in the "National Strategic Reference Framework for the Use of EU Structural Funds in the Federal Republic of Germany" (NSRF). The NSRF forms the basis to the Operational Programmes of the Länder and the Federal Govern- ment, which, in turn, act as the basis for selecting specific projects. It also lays the foundations for the promotion of tourism through the EU structural funds in Germany. The promotion of tourism is covered by the priorities centred on the "development and safeguarding of infrastructure for sustainable growth" and the "elimination of regional disparities and the development of specific regional potential through sustainable regional development". The legal basis for the promotion of tourism is provided in the ERDF regulation: The promotion of tourism is specifically cited as an eligible activity for convergence regions – which includes the new Länder and the Lüneburg region – while tourism is indirectly eligible for funding through the "protection of natural and cultural heritage" in regions which fall within the scope of the goal to "promote regional competitiveness and employment".

Many countries have availed of the opportunity to promote tourism in their area through EU structural fund programmes. For all the German ERDF projects in the 2007-2013 period, a total of roughly a half a billion euros in funding is planned for infrastructure projects in the field of tourism. Examples include networks of cycle routes and hiking paths, information boards, nature trails and observation towers for wild animals in "Nature 2000" regions, tourism amenities and information centres, as well as parks, gardens, museums and exhibitions centres. Furthermore, investment in the area of monuments/culture, tourism-related marketing measures and integrated regional development programs including tourism initiatives constitute a particular funding focus. Specific cultural and rural potential, such as proximity to water or mountains, is taken into consideration for improving and redirecting regional tourism. Tourism projects often overlap with projects from other disciplines, such as sport, health, the environment or culture. Bridleways and skater lanes, thermal spas and health resorts, geological nature trails and nature conservation centres, and monuments and cultural centres are just some examples of projects that have received funding. In addition there are also

. . . Page 55 projects that trigger positive secondary effects for the tourism industry such as projects focussing on sustainable urban development that convert brownfield sites into local recreational areas, or the organisation of events, such as flower shows, that focus on one specific subject area. Another large area of tourism promotion concerns the area of commercial tourism that benefits many sectors, notably accommodation establishments.

To be able to promote tourism projects with EU structural funds beyond 2013 it will be important to pay increased attention to the goals of the Europe 2020 Strategy. The ERDF funds should be concentrated on specific topics, namely innovation, research and development, the strengthening of the competitive position of SMEs, and measures to cut carbon emissions in all sectors of industry. The ESF should also only be used for a range of clearly defined priority investment areas.

Tourism projects can continue to be supported by EU structural funds provided that the funding measures in question are suitable to promote growth and competitiveness on the long term. The current funding period already includes projects that support the innovative collaboration and networking of tourism service providers, tourism-related information and communication technology, innovative single-company investment made by businesses in the tourism industry, such as the hotel and catering sector, and sustainable tourism models that are in harmony with nature. Funding for such projects could be extended in the future. In contrast tourism-related infrastructure projects will only be eligible for funding if the project in question involves mini-infrastructures that support the "indigenous growth potential" of a region.

2.4 Germany as a travel destination – the German National Tourist Board (DZT)

Organisational structure and cooperation partners The DZT is Germany's National Tourist Board. Headquartered in Frankfurt am Main, it develops and communicates strategies and products to build on the positive image of German travel destinations abroad and increase incoming tourism to Germany. The marketing and sales activities are based on a detailed market analysis and market appraisal in the source markets. To this end, the German National Tourist Board has 6 regional management centres worldwide with 30 country representatives across five

. . . Page 56 continents, including offices in New York, Sydney, Beijing, Budapest, Belgrade, Brus- sels and London. The German National Tourist Board co-operates worldwide with the German Chambers of Commerce Abroad, the Oversees Trade Exhibition Division of the Federal Ministry of Economics and Technology and AUMA, the Association of the German Trade Fair Industry.

The German National Tourist Board is a non-profit organisation with the legal form of a registered association (eingetragener Verein). Its members include businesses, state marketing organisations, and associations that reflect the broad range of interests of the tourism industry, with the number of members more than doubling from 33 in 2000 to 68 by the end of 2012. As a public-private-partnership project in the tourism industry, the German National Tourist Board works with numerous organisations and partners in the media and the business community. Cooperation partners include:

 Allgemeiner Deutscher Fahrrad-Club e.V. (German Bicycle Club)  AlpineTourist Commission  Deutsche Welle (Germany's international broadcaster)  Deutsches Küstenland e.V. (German Coastlands Association)  Deutscher Wanderverband (German Hiking Society)  Deutscher Olympischer Sportbund/Deutsche Sport Marketing GmbH (DOSB/DSM) (German Olympian Sport Association/German Sport Marketing Company)  European Travel Commission (ETC)  German Convention Bureau e.V. (GCB)  Historic Highlights of Germany e.V.  Nationale KoordinationsstelleTourismus für Alle e.V. (National Coordination Centre for Tourism for All)  Magic Cities Germany e.V.  UNESCO-Welterbestätten Deutschland e.V. (UNESCO World Heritage Sites in Germany)  Pacific Asia Travel Organisation (PATA)  POT – Polish Organisation for Tourism.  Goethe Institute

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Funding and duties The Federal Ministry of Economics and Technology funds the German National Tourist Board as an institutional grant recipient on behalf of the German Bundestag. The German National Tourist Board generates roughly one third of its funding needs through contributions from members and services for third parties. Further to this, members and partner businesses support the German National Tourist Board by providing grants and benefits in kind. Following an increase of €0.5 million, federal funding to the German National Tourist Board totalled €28.275 million in 2013. The additional funds will be channelled into marketing in south eastern Europe, an important emerging market for incoming tourism to Germany. In May 2012, the German National Tourist Board opened up a new foreign branch office in Belgrade with responsibility for the source markets of Bosnia and Herzegovina, Bulgaria, Croatia, Montenegro, Rumania and Serbia. The first promotional tours of the German National Tourist Board to present Germany as a travel destination kicked off in autumn 2012 and were very well received by the travel industry in south eastern Europe.

Factoring in the statutory salary increase based on wage and salary agreements, federal funding amounted to €28.275 million for the 2013 budget year. €28.361 million are earmarked for the 2014 and 2015 budget years, also taking statutory salary increases based on wage and salary agreements into consideration.

The duties of the German National Tourist Board are defined annually with the Federal Ministry of Economics and Technology in specific target agreements, with its most important role being that of providing the midmarket with a platform for international marketing activities. For many SMEs in the tourism sector, participation in international activities is often only possible through the German National Tourist Board. The consistently high numbers of SMEs participating in trade exhibitions and workshops and the positive feedback from the tourism industry underline the success of the German National Tourist Board's marketing strategy. Following a decision of the Conference of Ministers of Economics in June 2010, the German National Tourist Board's mandate for domestic marketing expired at the end of 2011. This was in keeping with a requirement of the German Supreme Audit Institution (Bundesrechnungshof) to not use federal funding for marketing activities for the benefit of the Länder.

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To appraise its public relations activities and sales and marketing measures, the German National Tourist Board regularly performs performance reviews. A study commissioned by the Federal Ministry of Economics and Technology in 2011 to evaluate the performance monitoring mechanisms used by the German National Tourist Board found that the German National Tourist Board deploys its success-monitoring instruments effectively.

Marketing The most important marketing platform for the German travel industry is the German Travel Mart™ (GTM). Organised by the German National Tourist Board and held annually at different locations in Germany, the GTM focuses on outreach and networking, acquisition and the conclusion of specific business deals. Apart from big-name companies, many smaller outfits are also among the German businesses presenting their services. 544 German providers were represented at the 38th GTM Germany Travel Mart™ held in Leipzig in 2012, where they met international experts and journal- ists from 45 countries. On average each German exhibitor was able to arrange 18 business appointments in two workshop days. Over 90 percent of participating businesses rated the GTM 2012 as successful. The GTM 2013 will be held in Stuttgart.

With its www.germany.travel website available in 26 languages, the German National Tourist Board offers users a global portal that provides comprehensive information about Germany as a travel destination. Having earned the Gold Award 2012 from the Pacific Asia Travel Association, the German National Tourist Board also enjoys international recognition. Its marketing strategies include the presentation of a specific topic each year and PR themes. 2009, for example, focussed specifically on "20 Years since the Fall of the Wall". Receiving much attention worldwide, the anniversary celebration attracted over two million people to Berlin alone that year. The German National Tourist Board organised an international photo exhibition in 21 countries that drew some 2.3 million visitors and reached 3,000 disseminators of the travel industry and the media. Other topics in 2009 included "90 Years of Bauhaus" in Weimar and the 250th anniversary of the death of composer George Frideric Handel, while the topic for 2010 was "300 Years of Porcelain".

The FIFA Women's Football World Cup was the central topic of 2011. With "Enthusiasm

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- we're on the ball" as its slogan, the German National Tourist Board presented Germa- ny as a service-centric event location with a modern infrastructure. To this end, the German National Tourist Board received an additional €750,000 in funding from the Federal Ministry of Economics and Technology. The second major topic for 2011 was the 125th anniversary of the automobile in Germany. Extensive marketing activities and PR events in the main target markets of the United States, Great Britain, France, Italy and China received excellent feedback from the media.

The German National Tourist Board focussed on Germany as a MICE and trade show destination with its theme for 2012: "Germany - open for business". Total earnings in the business travel sector in Germany amount to roughly €60 billion annually, with business travel among Europeans to Germany increasing in 2012 by 12.3 percent to 13 million trips. On its international website http://www.germany.travel/en/business-travel/trade- fairs/business-travel/ the German National Tourist Board provides information about trade fair and convention centres in Germany and services for the business traveller. Marketing activities also include press and customer events in New York, Shanghai, Brussels and London and participation in trade shows focussing on the business travel sector in Germany, Spain and America.

With "Youth Travel to Germany – Hotspots, Brandnew, Lifestyle" the motto for 2013, the German National Tourist Board is reaching out to young adults aged 34 and under, and kicked off a comprehensive social media campaign for youth travel at the 2013 ITB travel trade show. In 2011, the German National Tourist Board announced a competition among students at 126 universities in Great Britain on Facebook. The promotional contest reached up to 2.4 million students with the winner of an eight-day trip to Germa- ny reporting about his experiences in Germany online every day.

The topics selected by the German National Tourist Board for the coming years are: 2014: UNESCO World Heritage for Sustainable Cultural and Nature Tourism 2015: Celebrating 25 Years of German Unity 2016: Fascinating Ecotourism in Germany's Nature and National Parks

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The specific topics for the individual years are complemented by the following PR themes: 2013: 200th Birthday of Richard Wagner 150th Anniversary of the Death of the Brother Grimm 150th Birthday of Henry van de Velde 50 Years of the Elysée Treaty 2014: 600 Years of the Council of Constance 25 Years of the Peaceful Revolution in Leipzig 2015: 500th Birthday of Lucas Cranach the Younger 2017: Luther 2017: 500 Years of Reformation – Religious Travels through Germany

Part 3 – Collaboration at the European and international level in tourism policy

3.1 European tourism policy

New authority of the European Union (EU) for tourism For the first time ever the EU was granted limited responsibility for tourism with the signing of the Lisbon Treaty, entitling the EU in general to "carry out actions to support, coordinate or supplement the actions of the Member States" (Article 6 d of the Treaty on the Functioning of the European Union). The specific powers of the EU to act with regard to tourism are laid down in the Treaty on the Functioning of the European Union as follows: Title XXII Tourism

Article 195 (1) The Union shall complement the action of the Member States in the tourism sector, in particular by promoting the competitiveness of Union undertakings in that sector. To that end, Union action shall be aimed at: a) encouraging the creation of a favourable environment for the development of undertakings in this sector;

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b) promoting cooperation between the Member States, particularly by the exchange of good practice. (2) The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall establish specific measures to complement actions within the Member States to achieve the objectives referred to in this Article, excluding any harmonisation of the laws and regulations of the Member States.

In light of this new authority, reference is increasingly made to tourism in legal instruments proposed by the European Commission (e.g. in the Programme for the Competi- tiveness of Enterprises and SMEs - COSME). For the first time ever tourism was also included in a general-policy strategy paper of the European Commission: in one of its guidelines the "Europe 2020" growth strategy makes specific reference to "enhancing the competitiveness of the European tourism sector".

Apart from direct measures under tourism policy, a wide range of activities in other European policy areas also affect tourism, including consumer policy (reform of the Package Travel Directive), security policy (visa regulations) or transport policy (Single European Sky) and statistics (Regulation on Statistics on Tourism of July 2011).

Framework for action for European tourism – communication of the European Commission of 2010 To tap the full potential of the new responsibility for tourism as set out in the Lisbon Treaty, the European Commission issued a communication on 30 June 2010 entitled "Europe, the world's No 1 tourist destination – a new political framework for tourism in Europe" (COM(2010) 352 final). With due regard to the priorities defined in the "Europe 2020" strategy, in this way the European Commission wishes to promote a coordinated approach for initiatives related to tourism policy and create a new framework for action for tourism.

To deliver on its goals, the European Commission proposes a total of 21 actions to promote tourism. These actions fall under four specific priority areas:  Stimulate competitiveness in the European tourism sector  Promote the development of sustainable, responsible and high-quality tourism  Consolidate the image of Europe as a high-quality tourist destination

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 Maximise the potential of EU financial policies and instruments for developing tourism

The European Commission is currently working intensively on implementing its catalogue of measures. Many of the projects it announced are already in the planning or implementation stage. Examples include:  The development of a European "Qualité Tourisme" brand  The development of an ICT platform to make it easier for the tourism industry to adapt to new information technology  The creation of a "virtual tourism observatory"  Encouraging the extension of the tourism season (example: continuation of the "CALYPSO" initiative to promote cross-border tourism among certain key groups (social tourism) in the low season)  The development of a system of indicators for sustainable management of destinations (example: continuation of the "EDEN" initiative with an award for sustainable tourist destinations with a different theme each year)  The development of a charter for sustainable and responsible tourism and a strategy for sustainable coastal and marine tourism within the framework of the "Blue Growth" initiative  The creation of a "Europe brand"

Contributing over 5 percent to the EU gross domestic product, the major economic role of tourism was recognised with the Lisbon Treaty and the transfer of certain responsibilities to the EU. The Federal Government therefore welcomes the European Commis- sion's wish to place more focus on tourism at the European level (statement of the Federal Government of 19 July 2010 regarding the tourism communication of the European Commission from 30 June 2010). In particular the Federal Government appreciates the fact that the European Commission, in its communication, specifically takes on board the many challenges facing the tourism industry, such as climate change, an ageing society, or the economic and financial crisis. The intention of the European Commission to align tourism policy instruments more closely at the European level is also in Germany's interest.

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The Federal Government is particularly vigilant in ensuring that the EU institutions do not exceed the powers set out in the Lisbon Treaty (Article 195) when exercising their new tourism-related responsibilities and that the principles of subsidiarity and propor- tionality are respected. By doing so the Federal Government wishes to avert any danger of the European Commission overstepping its responsibility for tourism - which is merely supplementary - and interfering in national tourism policies. For this reason, the Federal Government also rejects any considerations to make additional funding available for the promotion of tourism at the EU level.

Supplementary tourism policy at the EU level can make a contribution to the positive development of the sector provided that it is focussed on actions concerning true European added value. In its interaction with the European Commission, the Federal Government is firmly in favour of foregoing projects that give cause for concern from the perspective of competition policy, involve additional administration and spending for the Member States, or whose added value for tourism development in the Member States cannot be identified. Further to this, the Federal Government is in favour of performing an in-depth cost-benefit analysis in advance of any intended measures at the European level.

The considerations mentioned define the position the Federal Government takes with regard to specific European plans to promote tourism. In a wide range of areas both Germany and the European Commission actively seek to improve collaboration among the Member States and create useful and sensible frameworks. This includes measures to promote European cultural heritage, the use of modern technology or training and education in the tourism industry. In addition, Germany is generally open to initiatives that support its own national projects, such as projects focussing on accessible tourism.

In contrast the Federal Government is particularly sceptical of projects where it questions the European added value such projects bring. Examples include the planned introduction of different labelling schemes or the creation of a new "Europe brand". Given the slew of vastly different national or regional quality labels, there is still a need to clarify whether additional quality labels at the European level can be established successfully using objective and balanced criteria. In the Federal Government's opinion, running joint marketing measures to advertise Europe as a travel destination can also

. . . Page 64 be useful and make sense in an isolated instance. On the other hand, in the case of all joint activities it is important to bear in mind that the development and advertising of destinations is the actual responsibility of the Member States and their regions and that therefore all the Member States are competing with one another to attract visitors.

The Federal Government objects to projects that are distant from the market, such as the promotion of tourist exchange programmes in certain key groups (young people, senior citizens, low-income families) out of season (see the report of the Federal Government of 7 January 2011 on the content of the EU CALYPSO initiative and the result of the appraisal of time-tested processes in the Member States). It is the Federal Government's opinion that all the initiatives which – as experience shows – are based on exchange programmes that are at least partly funded by public money are not suitable for creating stable and sustainable service structures in the specific target areas in the long term. Steering and redirecting the flow of tourists ignores existing and functioning market mechanisms and can result in a subsidy race between the Member States. Such a situation must be avoided particularly in times when public funding is scarce everywhere.

3.2 Bilateral collaboration

Generally speaking bilateral collaboration of the Federal Government in the field of tourism is incorporated into the general collaboration of governments with regard to economic policy. Tourism cooperation is a regular topic of meetings and conventions of bilateral cooperation councils, economic commissions etc.

The Federal Government considers the further development of bilateral tourism to be primarily a task of the tourism industry. Therefore up to now it has always kept its distance from signing bilateral agreements on collaboration in tourism with governments of other countries and will continue to maintain this position in the future.

In recent years the Federal Government has paid much attention to the development of tourism in the traditional holiday destinations of Egypt, Tunisia and Greece. Even though the countries have different problems that have negatively impacted tourism, the Federal

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Government considers it an important task to take action to reactivate tourism in the countries mentioned.

Accompanied by high-profile representatives of the tourism industry, the Federal Govern- ment Commissioner for Tourism, Ernst Burgbacher, travelled for meetings several times to Egypt, Tunisia and Greece and met ministers and state secretaries of these countries for talks in Berlin. The Federal Government encourages the German tourism industry to lend support and expertise to the partners in the aforementioned countries.

3.3 Collaboration on tourism policy within the framework of the Organisation for Economic Cooperation and Development (OECD)

The Federal Ministry of Economics and Technology represents Germany on the OECD Tourism Committee. In the work that it has conducted in recent years the Tourism Committee has delivered increasing quality and deeper interlinkages with other policy areas of the OECD.

The topics dealt with by the Tourism Committee contribute to the comprehensive exchange of information and ideas on current tourism-related issues and to the exchange of best tourism policy practices among OECD Member States. This is also important for Germany. Germany is a leading travel destination in Europe and is very well respected on the Tourism Committee.

New trends in tourism with effects on tourism policy are identified and countries share their experience in policy implementation. Topics and studies of other directorates of the OECD are also included in the discussion provided they affect tourism in some form, such as climate change, green growth, sustainability, art and culture, liberalisation, travel safety and security, and infrastructure.

The most important tasks of the Tourism Committee include:

 Maximising the positive effects of tourism on economic and social areas and on the environment;

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 Promoting sustainable tourism development as the basis for economic growth, the creation of jobs and the eradication of poverty;  Enhancing the infrastructure and the image of destinations in the interests of the local population, tourists and investors;  Supporting OECD Member States in designing an effective tourism policy.

These tasks are in line with priority areas defined in the Federal Government's tourism policy.

Affiliated with the Tourism Committee, the Statistics Task Force has been delivering trendsetting work for many years. Comprising tourism statistics experts from the OECD Member States, the Statistics Task Force has collaborated with EUROSTAT and the World Tourism Organisation to develop methodologies, such as the tourism satellite account (TSA) which is now used worldwide – including in Germany. This methodology is to be further refined in the Statistics Task Force.

Since 2011 there has been closer collaboration between the OECD Tourism Committee and the World Tourism Organisation (UNWTO) and the European Commission. While the functions, contents and standard operating procedures of the individual organisations differ it was clear that much synergy could be leveraged. Agreements have been signed on collaboration in areas of mutual interest.

3.4 Collaboration on tourism policy within the framework of the UNWTO (World Tourism Organisation)

Since 1976 Germany has been a full member of the World Tourism Organisation whose task it is to "promote and develop the tourism industry as a contributor to economic development, international understanding, peace, prosperity, respect for freedom and human rights for everyone without distinction as to race, gender, language and religion" (charter of the World Tourism Organisation).

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For Germany the UNWTO is an important forum for multilateral involvement in the global development of the tourism industry in the interests of securing peace, promoting growth and employment, eradicating poverty and protecting the environment and resources.

Headquartered in Madrid, the UNWTO currently has 155 full members and 7 associated members, with the number of affiliate members exceeding 400.

The German ambassador in Madrid is the permanent representative of the Federal Republic of Germany at the UNWTO. The Federal Ministry of Economics and Technology has principal responsibility for collaborative work with the UNWTO.

The UNWTO is primarily funded through compulsory contributions made by the full members, with the contribution amount factoring in the economic strength and the role of tourism in the Member States. €12.4 million was budgeted for in 2012, and Germany's contribution amounted to around €325,000.

Germany has been an elected member of the Executive Council of the UNWTO since 2005 and in the second election period in particular (2010 to 2013) made every effort to ensure that the work of the UNWTO is more effective. As a result it has been possible to stabilise the budget and to keep the contributions paid by the Member States relatively constant in six consecutive years.

For the next few years the Federal Government is also committed to the goal of zero nominal growth within the framework of budget negotiations with international organisations. As a result of this the UNWTO will need to concentrate even more on its core competencies and examine and implement additional cost-cutting measures.

The primary tasks of the UNWTO include:  The global organisation of responsible, sustainable and accessible tourism  The promotion of tourism as an engine of economic growth and development and the promotion of the conservation and sustainable use of the environment and natural landscape  Support for the tourism sector through the global dissemination of latest findings in the areas of tourism policy, the tourism industry and marketing

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 Recording statistics on the development of the tourism industry worldwide  The development of tourism as a vehicle to attain the millennium development goals (MDGs) to alleviate poverty and strengthen sustainable development

The UNWTO's work programme for the 2012-2013 period focuses primarily on two priority areas:  Improving competitiveness  Increasing sustainability in the tourism industry All the activities of the UNWTO are guided by these two priorities.

Born on the sidelines of the 19th UNWTO General Assembly in October 2009, the T20 Initiative was agreed by the UNWTO Member States that are part of the G20. The initiative sought to further heighten the awareness of the heads of state and government of the role tourism plays as a driver of growth, development and employment, and ultimately include tourism in the agenda of the G20 summit meetings. Between 2010 and 2012, the tourism ministers of the G20 states met four times for an intensive exchange of ideas and opinions. German interests were represented by the Federal Government Commissioner for Tour- ism, Ernst Burgbacher.

The breakthrough came in Mexico in May 2012 when the then Mexican president, Felipe Calderón, assured those attending the 4th T20 meeting that he would work towards ensuring that tourism would be included in the final declaration of the G20 summit (June 2012 in Mexico). In this he was successful.

Under the heading "Supporting economic stabilisation and the global recovery" the document adopted by the G20 heads of state and government on 19 June 2012 in Los Cabos contained the following text in point 25: "We recognise the role of travel and tourism as a vehicle for job creation, economic growth and development, and, while recognising the sovereign right of States to control the entry of foreign nationals, we will work towards developing travel facilitation initiatives in support of job creation, quality work, poverty reduction and global growth."

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The most important goal of the T20 Initiative had therefore been achieved for the time being. The 5th T20 meeting of tourism ministers will be held in Russia, where the next goals of the initiative will be agreed.

In May 2005 the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (in tandem with and with the financial support of the Federal Ministry for Economic Cooperation and Development) signed an agreement with the UNWTO to set up a UN- WTO consulting unit in Bonn from 2006 onwards. Initially involved in projects in tourist destinations affected by the tsunami, this unit now also runs projects in other countries. To date, the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety has provided a total of €1.8 million in funding to support projects conducted by the UNWTO Consulting Unit on Biodiversity and Tourism (see also Part 4 – The role of other federal ministries in tourism policy: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety).

Part 4 – The role of other federal ministries in tourism policy

Federal Foreign Office (Auswärtiges Amt, (AA))

Each year some 50 million German citizens take a trip abroad, going outside of Germa- ny for over 10 days on average. Quite a few of these tourists get into difficulties abroad - often through no fault of their own. Embassies, consulates and honorary consulates in over 200 countries then provide the necessary consular assistance.

The Federal Foreign Office assumes an active role particularly in the event of serious crises abroad which affect German citizens, such as the Costa Concordia disaster off the Italian coast or during the political and military unrest in Syria. Through a crisis management group, which sometimes also involves the German Travel Association (DRV), the Federal Foreign Office coordinates the assistance the Federal Government provides to the affected German citizens in consultation with the EU partners. The travel and security information provided by the Federal Foreign Office, and the travel warnings it sometimes issues, give travellers comprehensive, up-to-date information about the country of destination and draw their attention to particularities and security risks

. . . Page 70 specific to the country. The information is updated several times daily where necessary and can be accessed at www.diplo.de.

The interrelation between tourism and foreign policy has become particularly apparent since the "Arab Spring". Revolutionary unrest in the Arab region caused a significant downturn in the local tourism sector in 2011, the pain of which was particularly felt in countries like Egypt and Tunisia where tourism is a mainstay of the economy, accounting for a significant share of the labour market. The number of visitors rose again in 2012 but has not yet reached pre-revolution levels, a fact which can also be attributed to lack of investment in tourism infrastructure. As part of its transformation partnerships, Germany is therefore making every effort to support these countries, with the focus on establishing democratic institutions, support for more rule of law, the promotion of cultural dialogue and economic and social stabilisation, particularly through support for vocational training and employment. The Federal Foreign Office coordinates these measures in close collaboration with other government departments. Recovering the trust of tourists while increasing the quality of tourism services are the most important tasks in this respect. As part of these activities, the Federal Ministry of Economics and Technology - working in tandem with the Federal Ministry for Economic Cooperation and Development and the Federal Foreign Office - has established transformation teams headed by retired Minister Hirche that provide consultants to support the Egyp- tian and Tunisian government in developing market-economy structures. In Tunisia, in particular, support in the field of tourism will be a priority area of the transformation teams. The transformation teams commenced work in Tunisia at the end of 2012.

In Tunisia, German engagement centres on the improvement of training and education standards and the integration of businesses into vocational training, for example. An international tourism conference was held in Tunisia in November 2012 as part of the employment pact with Tunisia which is funded by the Federal Foreign Office. A partnership project with the Egyptian tourism industry aims to promote innovative and sustainable tourism that is more environmentally friendly, and safeguard employment in the Egyptian tourism industry. In this way, through the medium of tourism Germany is supporting sustainable development and strengthening existing relations with the regions affected.

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In order to also facilitate travel for foreign visitors to Germany from countries subject to visa requirements, temporary Schengen visas are issued. This entitles tourists to travel freely without border controls in 26 European states. It also cuts red tape for tourists travelling on package deals involving trips to several countries as tourists need only apply for one visa that will be valid for all countries. Added to this, many German consular posts allow travel agencies to directly submit visa application documents for groups of tourists. This is an exception to the otherwise mandatory requirement for individuals to appear in person before the consular post when applying for a visa, a requirement which many visa applicants find to be burdensome.

The Federal Foreign Office has outsourced the acceptance of visa applications to private service providers in a number of countries, including Russia and China - markets which are particularly relevant for the German tourism industry. This is to be further extended to other countries – including India and the Ukraine - in 2013. The notification of the applicants remains the sovereign task of the consular posts. By outsourcing non- sovereign steps in the visa application process, Germany is generally waiving the requirement that individuals need to present themselves at the consulate/embassy in person. This makes it considerably easier for the individual to apply for a visa, which is likely to further increase the appeal of Germany as a tourist destination for visitors from all over the world.

The activities of the Federal Foreign Office in the area of foreign cultural and education policy and Germany-based communication also touch on the area of tourism in many different ways, as the Federal Government uses these activities to promote a positive and realistic image of Germany abroad and advertise Germany as a centre for business, science and innovation. The Federal Foreign Office regularly analyses the image of Germany abroad. In recent years international surveys have always ranked Germany among the top countries, such as the "Anholt-GfK Roper Nation Brands Index" (2012: Germany occupied 2nd place among 50 assessed countries for the third time in suc- cession) and in the "BBC World Service Country Ratings Poll" (2012: ranked 2 among 17 countries). With its many partners, programmes and events, the Federal Foreign Office directly reaches out to people abroad, arouses interest in Germany and in doing so promotes tourism to the country. For example, the Goethe-Institute promotes interest in the German language and in Germany by offering language courses and a diverse

. . . Page 72 cultural programme at 149 institutes worldwide. With the innovative "Germany Year" format, the Federal Foreign Office works closely with the business community, the Goethe Institute and other institutions to convey a comprehensive image of Germany in selected partnering countries, with a multi-facetted series of events delivering an attractive mix of information and entertainment directly on site for the broader - and particularly younger - public. The "Germany Year" project was hosted in five cities in India from the end of 2011 to the start of 2013, while "Germany Year" in Russia (2012/2013) was opened in Moscow in June 2012. Brazil will be a partner country from May 2013 to June 2014.

The Federal Government promotes cultural tourism through international cultural policy, and as the third biggest contributor to UNESCO it is also particularly active in the world heritage programme. Germany became a member of the UNESCO World Heritage Committee again in 2012 and actively supports potential and listed UNESCO world heritage sites in Germany and throughout the world. Up to now 37 German cities have been designated world heritage sites. World heritage status has become a brand that attracts large numbers of tourists while also standing for sustainable development. To this end, the UNESCO World Heritage Committee adopted a "World Heritage and Sustainable Tourism" programme in June 2012. Germany was instrumental in the development of this programme.

At the policy level the European Commission coordinates projects in the field of tourism to enhance the competitiveness of the tourism industry in the EU, promote regional developments and create a common identity. For example, as part of the EU Strategy for the Danube Region there are numerous plans to boost tourism in the regions concerned, including Germany. These plans include the development of a "Danube Travel" web portal, a "Culture Routes Destination Danube" flagship project, reactivating and extending the "Danube office" network with continuing training programmes in the tourism industry, and the implementation of the "Danube Hike" EU project.

There are also plans to raise public awareness of the Baltic Sea region as a tourist destination, which was one of Germany's priorities during its presidency of the Baltic Sea Council from 1 July 2011 to 30 June 2012. Together with the other members of the Baltic Sea Council, work is concentrated on modernising the south east Baltic Sea area,

. . . Page 73 improving the interconnectedness of the Russian region of Kaliningrad with neighbouring regions, and promoting the tourism potential of this region. The German state of Mecklenburg Western Pommerania is the priority area coordinator for tourism within the EU Baltic Sea Strategy and coordinates joint efforts of the neighbouring states to better develop and market the Baltic Sea as a destination for sustainable tourism at the international level.

The Federal Government Commissioner for Culture and the Media (BKM)

The work of the Federal Government Commissioner for Culture and the Media is important for maintaining and developing the cultural landscape of Germany, while also strengthening cultural tourism on the long term. Each year millions of people from both Germany and abroad visit the museums, cultural institutions, national historical buildings, parks, gardens and other facilities that are promoted by the Federal Government Commissioner for Culture and the Media.

Generally speaking all the cultural institutions of national importance that are promoted by the Federal Government Commissioner for Culture and the Media are also particular tourist magnets. These include the 15 museums of the Prussian Cultural Heritage Foundation in Berlin, the Allied Museum, the German-Russian Museum in Berlin- Karlshorst, the German Historical Museum Foundation and the Berlin Jewish Museum Foundation in Berlin, the History Centre of the Federal Republic of Germany Foundation in Bonn, the Hambach Castle Foundation, the Foundation for the Memorial to the Murdered Jews of Europe (rows of stellae), the Topography of Terror Foundation, the "Remembrance and Future" society, sponsor of the House of the Wannsee Conference, the Foundation for Remembering German Resistance in Berlin and the five memorials to politicians: the Otto-von-Bismarck Foundation in Friedrichsruh near Hamburg, the German President Theodor-Heuss Centre Foundation in Stuttgart, the German Chan- cellor Adenauer Centre Foundation in Rhöndorf near Bonn, the German President Friedrich-Ebert Memorial Foundation in Heidelberg, and the Federal Chancellor Willy Brandt Foundation in Berlin.

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The New Museum on the Museum Island, which opened in 2009, and the Pergamon Museum alone drew over 2.1 million visitors in 2012. With the foundation for the Berlin Palace/Humboldt Forum laid in June 2013, this will create a novel cultural and educational environment coupled with the extra-European collections of Berlin state museums in the Prussian Cultural Heritage Foundation, the Berlin Central and Regional Library and the Humboldt University. The Humboldt Forum in the Berlin Palace will be a cutting- edge centre for art, culture and science.

The Federal Government Commissioner for Culture and the Media is actively involved in the restoration and renovation of historical buildings and cultural monuments that are among the outstanding cultural, political, historical, architectural, urban or scientific landmarks of the country or that are central to the cultural or historical development of the German cultural landscape. Between 1950 and 2012 roughly €342 million in funding was provided through the "National Cultural Monuments of Value" programme to over 600 cultural monuments, including many UNESCO world heritage sites in Germany. The programme has set aside some €9 million to fund cultural monuments of national importance in 2013. Ever since 2002, the "Völklinger Hütte" world heritage site has received special funding each year, totalling roughly €31.7 million to date. Furthermore, the Federal Government Commissioner for Culture and the Media has provided funding of around €125 million for a wide range of projects nationwide within the framework of four special programmes for the conservation of historical monuments. These specific projects focus on urgent building maintenance and safeguarding measures and the maintenance of monuments of national importance or monuments central to cultural heritage. Further to this, of the €100 million appropriated in the second economic stimulus package to the renovation of cultural institutions €23.47 million were channelled into 27 projects for the maintenance of cultural monuments of national value.

The Federal Government Commissioner for Culture and the Media places particular emphasis on the maintenance and renovation of cultural "flagships" in the new Länder. The Foundation for Prussian Palaces and Gardens runs and maintains more than 30 museum palaces, some 300 historical buildings and facilities and around 730 hectares of historical gardens in Berlin and Brandenburg, thereby making it one of the biggest cultural institutions in Germany. The palaces and gardens have enjoyed UNESCO world heritage status since 1990. Given its great appeal, the Potsdam-Berlin cultural land-

. . . Page 75 scape attracts over 5 million visitors each year. In "2012: the Year of Frederick", the major anniversary event celebrating "300 Years of Frederick the Great" in the New Palace in Potsdam was a particular cultural tourism highlight. In addition, the parks and palaces of the Garden Kingdom of Dessau-Wörlitz, the Prince Pückler Parks in Bad Muskau and Branitz, the Luther memorials in Wittenberg-Eisleben, the Francke Founda- tions in Halle, the Dresden Hygiene Museum and the Goethe and Schiller Centres in Weimar are among the outstanding cultural centres in the new Länder. According to a recent survey of the German National Tourist Board, the Bauhaus in Dessau and Wartburg Castle in Eisenach rank among the top 100 most popular sites visited by foreign tourists. Receiving over one million visitors each year the German Oceano- graphic Museum in Stralsund is the most visited museum in the north of Germany. The OZEANEUM, which is affiliated with the museum, won the "European Museum of the Year" award in 2010.

2017 heralds the 500th anniversary of Luther nailing the Ninety-Five Theses to the door of the All Saints' Church in Wittenberg. Apart from the religious implications, the Refor- mation this triggered also resulted in a wide range of social, political and cultural developments that have left their mark all over the world. The role of this cultural and historical event is of national importance, which is why the Federal Government has decided to take an active role in preparing and organising the event alongside the churches, the Länder, municipalities and civil society organisations. The Federal Government therefore complies with the expectations of Parliament for the Federal Government to become adequately involved in the celebrations, which were expressed in the interparty motion, "The Year of Reformation in 2017 – An Event of Global Im- portance" (printed paper 17/6465). With the cabinet decision of 20 February 2011, the Federal Government Commissioner for Culture and the Media was assigned responsibility for co-ordinating the measures of the Federal Government that are geared towards preparing and holding Reformation celebrations. Within Germany, the Federal Govern- ment Commissioner for Culture and the Media specifically supports marketing for the Luther decade, which is preparing the celebration, and the Reformation celebration itself, and also consults with the German National Tourist Board to support marketing efforts abroad. The journey to the Reformation cities, particularly those in Saxony, Saxony-Anhalt and Thuringia - the heart of the Reformation - will take visitors from Germany and abroad to authentic places and therefore to cultural assets of the highest

. . . Page 76 quality in the country. Nowhere else can the story of Luther and the Reformation be so vividly experienced as here.

In 2011, the Federal Government Commissioner for Culture and the Media set up a funding programme and published funding principles (www.kulturstaatsminister.de). Working together with the Länder, the aim is to make investments to be able to adequately present the authentic Reformation cities to the large number of visitors expected. Furthermore, support is to be lent nationwide to attractive cultural projects that recall our Reformation heritage. The Federal Government Commissioner for Culture and the Media appropriated €5 million to this end in the budget in both 2011 and 2013. Provided that parliamentary approval is granted, the Federal Government will make every effort to make this amount available each year through to 2017. A list of projects that have already received funding is available at www.kulturstaatsminister.de.

Broadcasting licence fees for the hotel and accommodation sector

Responsibility for the organisation of the national broadcasting system including the regulation of the financing of public broadcasters lies with the Länder. With the 15th Interstate Broadcasting Amendment Treaty (Rundfunkänderungsstaatsvertrag, RÄStV) in 2010, the Länder agreed to change from the broadcasting fee model that was linked to an actual broadcasting receiver to a broadcasting contribution model that is linked to a household, not a receiver. The new Interstate Broadcasting Contribution Treaty (Rundfunkbeitragsstaatsvertrag, RBStV) replaced the Interstate Treaty on Broadcasting Licence Fees (Rundfunkgebührenstaatsvertrag) with effect from 1 January 2013. Since then a broadcasting fee is in place which must be paid by every household and every business operation, which also means every hotel.

With the decision to opt for a contribution model that is not linked to a broadcasting receiver, the distinction between the basic fee and the television fee no longer applies, nor does the special levy charged on novel kinds of radio broadcast receivers (particularly Web-enabled PCs).

A full broadcasting contribution is €17.98 per month, and is therefore the same as the previous broadcasting fee (total basic fee and television fee).

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The owner of each business establishment must pay a broadcasting contribution which is based on a scale that depends on the number of employees (apart from the owner). Relief is provided for small operations in that establishments with a maximum of eight employees need only pay the reduced broadcasting contribution rate (1/3 of the full rate). According to the justification provided in the 15th Interstate Broadcasting Amend- ment Treaty, approximately 70 percent of business operations in Germany fall into this category. The full contribution applies to establishments with up to 19 employees. According to the reasoning behind the legislative act, given that approximately 90 percent of all business establishments in Germany fall into one of the two categories, only one contribution at most must be paid by the vast majority of (small) operations.

In addition to the compulsory contribution payment for the business establishment, the owner must also pay a third of the broadcasting contribution for each hotel room and guest room in the establishment and for every holiday apartment from the second room unit. The reasons given for this are the above-average intensive use of radio and television in establishments with regular guest turnover, which is generally part of the business model in the tourism industry.

Associations in the hospitality sector are critical of the additional burden put on businesses with 20 employees or more and the system of charging broadcasting fees for hotel rooms in addition to the basic contribution rate as this appears contrary to the new system that is based on a model that is not linked to a broadcasting receiver.

Federal Ministry of Labour and Social Affairs (BMAS)

Germany acts as a role model for many other countries with its policy for people with disabilities. The UN Convention on the Rights of Persons with Disabilities provides other key pointers of how our country can develop and grow participation and equal rights. The aim of the Convention is an inclusive society in which people with and without disabilities play, learn, work and spend free time together in all areas of life from the very outset.

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Following intense dialogue with civil society, and with associations for people with disabilities in particular, the Federal Ministry of Labour and Social Affairs developed the Federal Government National Action Plan to implement the Convention. Containing over 200 measures from all areas of life and policy fields, this action plan will trigger a development towards inclusion and firmly anchor the equal treatment of people with disabilities at all levels of society and in all policy fields. The action plan has a ten-year life span and will be systematically refined and improved upon.

For many individuals with a disability, barrier-free accessibility to tourism amenities is a key prerequisite to be able to avail of recreational and leisure services. Therefore in the National Action Plan the Federal Government is committed to ensuring that the key players in the tourism industry are cognisant of this need and deliver upon it.

In the period from 2009 to 2012 the Federal Ministry of Labour and Social Affairs funded a project to strengthen target agreements based on the Act on the Equal Treatment of People with Disabilities (Behindertengleichstellungsgesetz, BGG). By agreeing targets and objectives with business enterprises, recognised associations for people with disabilities can agree specific rules for the creation of an accessible environment that match people's needs and enable flexible and reasonable solutions.

In the field of tourism, for instance, standards have been developed for accessible natural environments. The definition of minimum requirements for accessible natural environments (basic requirements and guidelines) led to the conclusion of a framework target agreement with the Association of German Nature Parks at an event to mark Accessible Tourism Day on 8 March 2012 at the ITB travel trade show in Berlin.

Further to this, a target agreement concerning accessible tourism on camping sites was agreed for the state of Rhineland-Palatinate. In addition, basic requirements were developed for accessible access to museums, as was a guide to accessibility in cultural heritage conservation and an initial training and continuing education module for certified nature guides.

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Federal Ministry of Education and Research (BMBF)

Research and strategy development for a changing tourism industry

Climate change, altered demographics and new social needs, such as in the area of medical tourism, mean that we need to refine our concepts of travel and recreation and develop new models and service offerings. In addition to being involved in the training and continuing education of professionals, the Federal Ministry of Education and Research (BMBF) therefore also lends support to research projects that are aimed at developing innovative and sustainable tourism solutions in response to climate change and new challenges in society.

For example, the "RADOST" project (regional strategies of adaptation for the German Baltic coast) involves the development of tourism strategies for the German Baltic coast that factor in the expected consequences of climate change. The impact of climate change on tourism and beach management is examined in order to build on the results, develop and trial adaptation measures, and implement them in model projects. RA- DOST is part of the KLIMZUG funding project aimed at "making climate change sustainable in the regions".

The "KUNTIKUM" project (climate trends and sustainable tourism development in coastal and mid-range mountain regions) pursues a similar goal. Trends in climate change and tourism were analysed in two model regions – the North Sea and the Black Forest – and strategies developed for new products and infrastructures along with capacity building for making decisions on climate-related issues.

A geographical information system (GIS) for area and investment planning in winter sport regions was developed under the "GIS-KliSchee" project. Local snow potential was recorded on an area-by-area basis and environmental data and satellite images were used to identify possible change scenarios from climate model calculations. The aim of the project is to adapt winter sport tourism in German mid-range mountain areas to climate change.

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In its third phase, the "GLOWA-Danube" collaborative project focussed on the comprehensive analysis of the future availability of water in the Upper Danube under the conditions of global change. This analysis comprised the role of water for the tourism industry both in terms of its importance as a pull factor and as a product to be used in the tourism infrastructure and suprastructure.

In light of demographic change, senior citizens will become an increasingly important key group for the tourism industry. Within the framework of the "Barrier-free Tourism - ACCESS" collaborative project (1/2/2012 – 31/1/2015) the Federal Ministry of Education and Research is therefore supporting the development of tourism strategies for senior citizens and individuals with specific impairments. The focus is on the development and large-scale provision of a guidance system to help older individuals with restricted mobility plan accessible routes and navigate their way through buildings and towns using barrier-free, accessible amenities. This thereby provides senior citizens with pathways and routing in public areas that are tailored to meet their individual needs and capabilities, and aims to promote their participation in society, and particularly in travel. Furthermore, the project also involves the definition of standards that are developed to create a "seal of quality" which can be awarded to participating towns and cities.

Senior citizens often consider large infrastructures, such as train stations and airports, to be a barrier given their size and complexity. By combining new services with innovative technology, the "Personalised Assistance System for Mobility in Old Age" (PASS, 1/2/2012 – 31/7/2014) seeks to overcome this obstacle. The aim is for a navigation system geared to the elderly to cover the entire mobility chain from the individual's front door to the travel destination, including within airports and train stations.

The "Holidays for Seniors with Individual Services" project (URAiS, 1/7/2012 – 30/6/2015) seeks to ensure that older individuals with a health impairment can also enjoy an individual travel experience. With the help of a harmonised approach that combines modern technology and services, barriers to travel are broken down. The service chain maps out the entire trip from the planning stage to the moment the individual returns home, with the focus on the train journey and the hotel with an affiliated network of medical, care, therapeutic and cultural service providers.

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The internationalisation of medical services has given rise to a new market for medical and health tourism services. The aims of the "Health TourMobil" project (1/7/2008 – 30/9/2011) were to initiate cross-sector collaboration between medical and tourism facilities in the state of Saarland and to create an appropriate information platform.

Using training and continuing education to secure a skilled worker base for the tourism industry

Within the framework of the "JOBSTARTER - Training for the Future" training structure programme, the Federal Ministry of Education and Research has supported dual vocational training in the field of tourism and leisure on a sustained basis in recent years. In the five application rounds that were held, a total of 25 regional projects that focussed on creating and filling training places and improving regional training structures in this industry were included in the funding programme. The JOBSTARTER projects provided particular support to small and medium-sized undertakings in the tourism and leisure industry in the provision of training places and properly filling such places with individuals whose profiles matched the training specifications. With image promotion campaigns and information services for schools, JOBSTARTER projects have made a key contribution to increasing the appeal of occupations requiring formal training in the tourism and hospitality sector. This has also helped stem the tide of out- migration of young people particularly in the east German states. Further to this, regional undertakings have become sensitised to the need to secure qualified staff by implementing their own training efforts so that they can continue to be successful on the growing tourism and leisure industry market.

The collaborative project by the name of "Q2 – Training Initiative for Service Quality!" has developed an innovative teaching approach for trainees in professions in the tourism industry. The outstanding feature of this approach is that it uses digital media with Web 2.0 tools so that trainees can learn together, communicate with one another and access jointly created learning material despite the fact that the trainees are based in different locations. In this way the aim is to enhance the service skills and customer focus of the trainees and improve these skills on the long term.

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In the "EMAG" project focussing on the development and trialling of a media strategy to acquire organisational skills in interlinked VET places of learning, a curricular approach to acquiring organisational and media skills is developed in close collaboration with a vocational school and various training centres in the tourism and hospitality sector. The approach to be developed will contribute to the better interaction between schools and businesses providing training, promote the media skills of teachers, pupils, trainers and trainees, and support the systematic integration of media education processes in school life and in everyday professional life in the tourism industry.

Increasing importance is also being attached to the role of continuing training and lifelong learning in the tourism sector. For this reason part of the collaborative project entitled "Open Universities in Schleswig Holstein: Move Your Career Forward with Online Learning" (LINAVO) is dedicated to the field of tourism management. Under this project, the University of Flensburg and the Flensburg, Kiel, Lübeck and West Coast Universities of Applied Sciences have joined forces to make innovative study courses and continuing education programmes for in-service and lifelong learning available across the region. Within this context the West Coast University of Applied Sciences will develop and trial a Master's degree course in tourism management.

"Training made in Germany" has an excellent reputation worldwide. This is also true for the tourism and leisure sector. For this reason the Federal Ministry of Education and Research also supports the international export of vocational training programs, training course content and professional standards from this industry. In this way, within the framework of a collaborative project agreed in June 2012 the "International Office Manager" and "International Travel & Tourism Manager" training occupations were exported to China where they were introduced following specific modifications to cater to the culture and country.

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Federal Ministry of Food, Agriculture and Consumer Protection (BMELV)

Agritourism

In recent years agritourism has undergone a positive development overall to become a significant tourism segment in Germany, and an important additional source of income for many farming operations. As an economic factor, agritourism makes a direct contribution to securing the livelihood of farms, trade and crafts, catering and many other service providers in the rural area. Moreover, agritourism has created new income options and jobs in villages and will continue to do so in the future.

According to a 2010/11 study into on-farm/rural tourism conducted on behalf of the Federal Ministry of Food, Agriculture and Consumer Protection, around 4.5 million people living in Germany, or 6.4 percent of the population, took one or more on-farm holidays (including short breaks) in Germany between May 2010 and May 2011. A total of 5.1 million in-Germany farm holidays (2.8 million of which were short breaks) were reported, with around 24.4 million holiday overnight stays. Board and lodging brought in revenues of around €1.1 billion, which translates to a six percent share in the domestic travel market. However it is estimated that this market offers far higher potential, which can be tapped by developing new products and service offerings, better quality management, attracting new target groups and adopting more focussed marketing strategies.

As part of the "Joint Task for the Improvement of Agricultural Structures and Coastal Protection" (GAK), the Federal Government and the Länder support agricultural operations in schemes to diversify their income in the field of agritourism/on-farm holidays. Here, funding is provided to construct, purchase or modernise guest rooms, holiday apartments or buildings with beds for up to 25 guests, and for investment in social, domestic and municipal services.

In addition, the GAK principles for the promotion of integrated rural development which were introduced in 2004 created the framework to also fund rural infrastructure measures to tap tourism development potential, introduce cover crops and similar appealing tourism facilities in keeping with the surrounding countryside, build alliances

. . . Page 84 between farmers and other partners in the tourism sector, and implement building schemes to convert farming operations into accommodation or catering facilities as part of rural development strategies.

Furthermore, on the basis of Council Regulation No. 1698/2005 of 20 September 2005 (EAFRD Regulation) rural tourism measures outside of agriculture can also be funded within the framework of the development programmes of the Member States. These include small-scale infrastructures (e.g. information centres), the signposting of tourist sites, recreational infrastructures (e.g. access routes), small-capacity accommodation and the development and marketing of tourism services relating to rural tourism.

Apart from the promotion of investment in rural tourism within the framework of the GAK programme, as an additional initiative the Federal Ministry of Food, Agriculture and Consumer Protection also supports the work of the Federal Association for On-Farm Holidays and Rural Tourism in Germany (BAG). Located in Berlin, the BAG acts as the central advocacy group and point of contact for operations offering on-farm and rural vacations and is primarily responsible for quality assurance, marketing and continuing training measures and for safeguarding the political interests of rural tourism. Since 1 January 2007, the BAG and the regional Land associations affiliated with the BAG are also responsible for quality assessment and categorisation in the area of "on-farm and rural holidays", a task that was previously the jurisdiction of the German Tourism Association (DTV).

Transparency system for restaurants ("hygiene ranking system")

With its decision of 15 September 2011 the Conference of Ministers for Consumer Protection voted in favour of the standardised, national introduction of a transparency system for restaurants and other undertakings handling food ("hygiene ranking system"). The aim was to make the results of official controls of foodstuffs, conducted as part of business audits, visible to the public as consumer information. The Conference of Economics Ministers rejected a system to this effect with the decision of 7 June 2011 as it believes that there are no hygiene shortcomings in general and that the pillory-like action that a hygiene ranking system might imply could threaten the existence of business undertakings, particularly given that timely follow-up checks are not possible.

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Transparency for consumers was further increased with the amendment to the Con- sumer Information Act (Verbraucherinformationsgesetz, (VIG)) and the new section 40, paragraph 1a of the Food and Feed Code (Lebens- und Futtermittelgesetzbuch, LFGB) that entered into force on 1 September 2012. This amendment further facilitates access to information from official bodies that is relevant to consumers; legal violations, such as a breach of hygiene regulations, must be made public in future if a fine of €350 or over is expected.

The Federal Government does not plan any further initiatives geared towards a hygiene ranking system.

Federal Ministry of Finance (BMF)

Reduced VAT rates

VAT on lodging services The Act to Accelerate Economic Growth (Wachstumsbeschleunigungsgesetz) introduced tax-related measures on 1 January 2010 to overcome the effects of the global financial and economic crisis and provide fresh impetus for a stable, dynamic upturn. Specific support was lent to the tourism industry with the reduction of the rate of value- added tax for lodging services and camp site rental from 19 percent to 7 percent. The entire tourism industry benefits from the annual tax relief of close to one billion euros. This measure will strengthen the competitiveness of the German hotel industry compared with other European countries and thereby enhance Germany's position as a tourism location.

Passenger shipping and river cruises Due to a transitional arrangement, passenger transportation by ship was subject to the lower rate of VAT in the past without any other conditions being applied. Now that this transitional arrangement was phased out on 31 December 2011, the reduced VAT rate only applies for short-distance passenger transportation. In particular, this change affects river cruises as they are now subject to the general 19 percent rate of VAT.

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Eliminating exemptions of this kind makes it fiscally possible to have a lower normal rate of VAT that is more competitive on the European market. This attractive normal rate will benefit all branches of the economy, including the tourism industry.

Aviation tax

Departures from German airports have been subject to an aviation tax since 1 January 2011. The tax does not apply to the air transport of cargo. The aim behind the aviation tax was to also include air transport into the taxation system on forms of transport so that air transport would also make a contribution to fiscal consolidation, while also providing incentive for more environmentally friendly behaviour. When air transport was included in the emissions trading system on 1 January 2012, the three rates of taxation, which are scaled according to the distance of the destination from the German departure airport, were temporarily lowered for 2012. With the "Second Act to Amend the Energy and Electricity Tax Act and to Amend the Aviation Tax Act" (Zweites Gesetz zur Änderung des Energiesteuer- und des Stromsteuergesetzes sowie zur Änderung des Luftverkehrsteuergesetzes) of 8 November 2012, the rates of taxation were permanent- ly set to the level agreed in 2012 from 2013 onwards, amounting to €7.50, €23.43 and €42.18 depending on the distance travelled. In keeping with statutory requirements, the implications of the aviation tax for the aviation sector have been assessed in a report which the Federal Ministry of Finance submitted to the German Bundestag. The report found that despite the aviation tax the number of passengers increased nominally by around nine million between 2010 and 2011. However, the introduction of the aviation tax did result in a fall in demand by around two million passengers in 2011. Further to this, German aviation companies were subject to additional costs of €100 million which could not be passed on to passengers. The Federal Ministry of Finance commissioned an updated advisory opinion on the aforementioned report. This assumes that the aviation tax generally no longer curbed air transport growth in Germany on the whole in 2012.

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Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ)

Protection of children against sexual exploitation in the tourism industry (see also input from the Federal Ministry of the Interior and the Federal Ministry of Justice)

On 27 September 2011, the Federal Government adopted the Second Action Plan on the Protection of Children and Adolescents from Sexual Abuse and Exploitation, which contains an overall approach to protect children and young people from any form of sexual abuse and exploitation. As part of accompanying monitoring, a joint Feder- al/Länder task force continuously checks, examines and improves upon the goals of the action plan. The work of one of the four sub-groups set up focuses on "trade with children, tourism".

In tandem with Switzerland and Austria, Germany launched a trilateral campaign against child sex tourism in autumn 2010. A video clip called "Witness" is the central element of the campaign and communicates the message that the sexual abuse of children can be prevented if tourists do not look away. A police address which tourists can contact is displayed at the end of the video clip. An international convention on the campaign was held in Berlin in January 2013 where it was decided to extend the campaign to other European partner countries.

The tourism industry is an important partner in combating the sexual exploitation of children and adolescents. The Federal Government supports the implementation of the "Code of Conduct to Protect Children against Sexual Exploitation in the Tourism Industry", which was agreed between the German Travel Association and ECPAT (association for the protection of children against sexual exploitation). Key parts of the code include training workers in the tourism industry in the countries of origin and destination and raising awareness among travellers.

The Federal Government also supports the training of prospective workers in the tourism industry in order to give them the tools to play an active role in protecting minors from sexual exploitation in the tourism industry.

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Family holidays and family holiday centres

Tourism should be open to all segments of the population, which is why the provision of holiday services for families, children and young people is a central political objective. Great importance is attached to family holidays, as they help strengthen the bond between family members and allow families to both relax and stay fit and healthy.

Being able to offer families the opportunity to spend a vacation together in a family- friendly setting at an affordable price is therefore the key objective of the over 100 non- profit family holiday centres in Germany. Family holiday centres offer affordable accommodation in line with family needs in the form of holiday apartments, holiday homes or apartments of different sizes. Non-profit family holiday centres focus in particular on large families, single parents, families with family members who are disabled or in need of care, and low-income families. Recreation, joie de vivre and relaxation are the central elements of the services they provide. Furthermore, the concept of family holiday centres also involves presenting ways to lead a more social or healthy life, which is why special services to improve parenting and relationship skills and strengthen ethical values are just as much part of family holiday centres as the fostering of practical skills with regard to health, the household, food and nutrition and the use of multimedia.

From the point of view of salutogenesis (the origin of human health and the preservation of health and fitness), non-profit family recreation services make a key contribution to strengthening the health skills and resources of families. In linking relaxation and recreation with a broad educational portfolio they address families in their entirety, and take the complexities of reality into account. With children, parents and often grandpar- ents together as a household, family holidays make it possible to strengthen parenting and family skills on a sustainable basis.

The Federal Government funds the construction and installation of family holiday centres and the provision of facilities under the condition that the Land and the provider also match the funding amounts. €1.8 million are appropriated in the federal budget each year for this purpose. Some Länder provide individual grants to help low-income families have a vacation in a family holiday centre. From a tourism and economic

. . . Page 89 perspective this is also important for the region in which the family holiday centre is located as it helps to generate or safeguard jobs in the area and develop a tourism infrastructure. In its catalogue, "Holidaying with the Family", the Federal Association for Family Holidays and Recreation provides information about the services offered by the non-profit family holiday centres (www.bag-familienerholung.de).

Federal Ministry of Health (BMG)

German spas and health resorts are of real economic significance. According to the German Association of Health Spas, this sector of the economy reported revenues of over €30 billion. At present, roughly 400,000 individuals are directly and indirectly employed in German spas and baths, with spas and health resorts recently reporting an increase in the number of visitors and overnight stays. In 2012 they reported roughly 22.4 million visitors (up from 20.1 million in 2010) and close to 110.4 million overnight stays (up from 102.9 million in 2010).

With their overarching approach comprising primary, secondary and tertiary prevention, the spas and health resorts are able to offer specific spa treatments under sections 23 and 24 of Book V of the Social Code to combat both health risks and diseases that are already manifest. At the spa, additional health risks outside the original reason for the stay at the health spa can be identified and preventive measures can be introduced.

Further to this, under section 20, paragraph 1 of Book V of the Social Code, health resorts can offer primary preventive measures aimed at improving the general state of health of the individuals and strengthening their health to prevent illness occurring in the first place. Generally speaking primary preventive measures should be offered at the insured's place of residence so that the individual can practice healthy behaviour in everyday life. However in order to also extend primary preventative services to individuals who are unable to regularly take part in weekly courses for business or family reasons, the health insurance funds can also offer compact courses at the spa facility or holiday destination. Under the provisions of the Federal Government's bill for an Act to Promote Prevention (Gesetz zur Förderung der Prävention), individuals insured under the statutory health insurance system will be entitled to receive an allowance to contrib-

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ute to the additional costs that they incur in connection with this service - as is the case when individuals use out-patient prevention services at recognised spa facilities. Provisions are also made to raise the ceiling for the daily health insurance allowance from €13 at present to €16 for insured persons and from €21 to €25 for chronically ill infants. Given the professional approach taken at the health spas and the well qualified staff, top-quality prevention services can be guaranteed.

Statutory health insurance (SHI) spending on prevention and rehabilitation services has risen again slightly.

Statutory health insurance spending on prevention and rehabilitation services Spending in billion euros/year 2006 2007 2008 2009 2010 2011 2012 prelim. 148.00 153.93 160.94 170.78 175.99 179.61 184.52 Total spending thereof:

Toal services 138.68 144.43 150.90 160.40 164.96 168.74 173.64 thereof:

Prevention and rehabilitation 2.34 2.45 2.48 2.44 2.39 2.36 2.42

services Out-patient treatment at health resort 0.09 0.09 0.09 0.08 0.07 0.06 0.06

In-patient treatment at health resort 0.38 0.39 0.39 0.36 0.36 0.34 0.35 Health resort treatments for mothers/ fathers 0.26 0.30 0.34 0.32 0.29 0.28 0.33 Follow-up rehabilitations 1.60 1.67 1.67 1.68 1.68 1.68 1.69

Source: BMG

As a result of the SHI Act to Structure Medical Care (GKV-Versorgungsstrukturgesetz), section 11 paragraph 6 of Book V of the Social Code was redefined on 1 January 2012 to give health insurance funds the latitude to extend optional benefits. This also applies to services under section 23, paragraph 2 of Book V of the Social Code. In this respect, the current regulation according to which health insurance funds can provide insured persons with an allowance of €13, and €21 for chronically ill children, to contribute to the remaining costs incurred for necessary out-patient prevention services can be extended further by the health insurance funds per optional benefit.

Within the area of health-related self help, no direct funding measures are provided for spa facilities or holiday locations. However, health-centric services do indirectly promote

. . . Page 91 tourism to strengthen the self-help potential of chronically ill individuals and people with a disability. When it comes to accessible travel, the National Coordination Body for Tourism for All (NatKo) is the central point of contact for service providers and affected individuals. The Federal Ministry of Health funds selected NatKo projects where the focus is on prevention and health-related self-help. In the period between 2009 and 2013, projects touched on topics such as travel opportunities for people in need of care, prevention and health promotion with accessible leisure and recreation facilities in towns, municipalities and regions, and awareness enhancement, advisory and information activities at trade exhibitions in the area of barrier-free, accessible travel. Natko received roughly €433,500 in support during this period (2009-2013).

Federal Ministry of the Interior (BMI)

Protection of children against sexual exploitation in the tourism industry (see also input from the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth and the Federal Ministry of Justice)

Generally speaking if sexual offences are committed abroad the local police authority is responsible for ending the offences and prosecuting sex offenders. However the German law enforcement authorities can lead investigations against German offenders who sexually abuse children abroad and bring charges against them.

The Federal Government is aware that many travellers do not know whom they should turn to abroad if they suspect a child is being sexually abused. Many are reluctant to go to police stations abroad as they are afraid of having to speak a foreign language and are worried that the police officers might not understand them. They do not know the customs in the host country and are uncertain of how the police officers might react.

Therefore, in addition to the police services available in the host country the Federal Criminal Police Office (BKA) has set up an e-mail address where individuals can report suspected sexual abuse perpetrated by Germans abroad ([email protected]). This address is indicated on the flyers in the "Don't Look Away" campaign – a trilateral campaign to protect children supported by Germany, Austria and Switzerland – and in

. . . Page 92 the video clip ("Little Souls - Big Danger") created for this purpose. In addition to this e- mail address a contact form has also been developed which can be accessed on the website of the Federal Criminal Police Office (www.bka.de) under "Bürgerkontakt" or "Informationen zum Kindersextourismus". The form can be easily retrieved by entering appropriate search terms in search engines. In the new version of the flyer and video, reference will only be made to the contact form so that the e-mail address can be phased out over the long term. The contact form has the advantage that it "guides" the individual reporting the incident through the various sections so that important information is not forgotten.

The Federal Criminal Police Office ensures that the report is processed immediately by the competent law enforcement authority in Germany and abroad. In individual cases, responsibility for processing the report in Germany will lie with the Federal Criminal Police Office.

Once a report is made, the top priorities in processing the case are as follows, depending on the individual case, and with the involvement and under the responsibility of the local competent law enforcement authorities:

 Put an end to the case of abuse that might still be ongoing  Introduce necessary measures to identify the offender and victim, and get the local competent law enforcement authorities to secure the necessary evidence, or  Ensure the further clarification of facts to pursue additional means of investigation.

The Crime Prevention Unit of the Police Forces of the Federation and the Länder (ProPK) also uses a mix of different media to disseminate information and raise awareness for the issue. For example, in collaboration with associations and NGOs it hands out the "Little Souls – Big Danger" flyer which is distributed across the country and also distributed through cooperation partners in the tourism industry. The aim is to sensitise holidaymakers to the problem of child prostitution and the terrible consequences it has for the victims and to get the holidaymakers on board as partners in combating child sex abuse. The attention of potential offenders is also brought to the fact that such acts are a punishable offence even if committed abroad.

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In addition to information about the flyer mentioned above, the website of the ProPK (www.polizei-beratung.de/themen-und-tipps/sexualdelikte/sextourismus.html) also contains practical tips for travellers as to how they can help without putting themselves at risk. The website also contains a link to the report form of the Federal Criminal Police Office described above.

Registration Act (Meldegesetz)

Up to now, the Federal Government's Framework Act on Registration (Melderechtsrah- mengesetz) and the 16 registration acts of the Länder have contained different regulations as to the registration obligations of accommodation facilities when an individual checks in or when an individual stays overnight in tents, caravans, mobile homes or watercraft.

Following the reform of the federal system of government in 2006, the Federal Govern- ment was granted exclusive legislative power for the registration system in accordance with Article 73, paragraph 1, number 3 of the Basic Law (Grundgesetz). This was upheld in the current legislative term with the Act on the Further Development of the Registration System (Gesetz zur Fortentwicklung des Meldewesens), the central element of which is the Federal Registration Act (Bundesmeldegesetz). For the first time ever, uniform registration regulations that apply to all citizens nationwide will apply when the Federal Registration Act enters into force on 1 May 2015.

The Federal Registration Act contains standardised regulations for these special registration obligations in accommodation establishments and simplifies the procedure for dealing with registration forms in this area.

With effect from 1 May 2015, hotel registration forms will no longer need to be filled in by hand as guests receiving accommodation will only need to sign the special registration form by hand in the future. This change takes into consideration the widespread practice in the hotel industry whereby a member of staff often already fills in the hotel registration form using data supplied to the accommodation establishment beforehand. At the same time, by having guests sign the form this ensures compliance with regulations under European law. The storage period for such registration forms at accommo-

. . . Page 94 dation establishments is also set at one year for the entire country. Overall, these measures make the registration process considerably easier for the guest and significantly lightens the bureaucratic burden for the tourist accommodation sector.

Federal Ministry of Justice (BMJ)

Directive on Package Travel, Package Holidays and Package Tours

Council Directive of 13 June 1990 on Package Travel, Package Holidays and Package Tours (90/314/EEC) contains consumer protection regulations with regard to package systems. It is transposed into German law in sections 651a ff. of the German Civil Code (BGB).

For some time, the European Commission has been examining which regulations in the directive have proved to be effective and where there is a need for modification. The planned revision of the directive seeks to enhance consumer protection, particularly with regard to Internet-based bookings, and to make it easier to conclude cross-border agreements. The Federal Government is generally open to amendments provided these do not mean that Member States will need to lift time-tested protection mechanisms and that allowances are made for the various areas of risk of the parties involved. As the current directive is based on the principle of minimum harmonisation, German law contains additional - and sometimes more extensive - regulations that guarantee adequate protection. Therefore some of the problems raised by the European Commis- sion do not occur in German travel legislation. Having first announced that it would present a proposal for the revision of the Directive on Package Travel, Package Holi- days and Package Tours at the end of 2012, the European Commission then announced in a press release on 28 January 2013 that it was examining three particular options: (i) to update the current directive; (ii) to keep the current directive as it stands; (iii) to repeal the directive. Following further consultation the European Commission will decide on the next steps in late spring. The Federal Government will closely monitor and keep a watch on further developments in this area.

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Arbitration and mediation in air transport

In the coalition agreement, the Federal Government made it its goal to regulate arbitration services for consumers in civil aviation by law. In Germany the Federal Aviation Office (LBA) is responsible for dealing with complaints from air passengers. However the Federal Aviation Office only acts in a commercial supervisor capacity, and has recourse, in particular, to the enforcement tools defined under the law relating to regulatory offences. Therefore the proceeding before the Federal Aviation Office does not constitute arbitration of civil claims, with which it is often confused.

The aviation industry entertained significant reservations with regard to the arbitration and mediation services in general. On the basis of the right to effective justice (Article 2, paragraph 1 of the Basic Law) in connection with the principle of a state governed by the rule of law (Article 20, paragraph 3 of the Basic Law), air carriers may not be subject to the rulings of an arbitration board by law without the possibility of recourse to legal action. Rather, the path to the settlement of disputes by state courts must remain open. Therefore the fundamental acceptance of a mediation body by all parties involved is essential if the system is to function properly. Following intensive talks with the aviation industry, the Federal Government managed to agree on an arbitration process that is accepted by the airlines and before which they are willing to present themselves voluntarily.

On 21 March 2013, the German Bundestag adopted the bill to introduce arbitration services in air transport in the second and third reading. According to this bill, in future every air passenger with payment claims of up to €5,000 can appeal to an arbitration board, regardless of whether the issue in question refers to overbooking, flight cancellation, delays or damage to baggage and hand luggage. The act is initially based on voluntary mediation by arbitration boards organised by the air carriers under private law. If these boards meet the requirements set down by law - particularly with regard to the impartiality of the board and the fairness of the proceedings - they can also be recognised by the Federal Government. Undertakings that do not voluntarily take part in the mediation procedure are handed over to an official mediation body at the Federal Office of Justice. Barring cases of abuse, the procedure is free for the air passenger.

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Time-sharing

Time-share agreements are quite common among German holiday-makers. Under this scheme, the customer pays for the right to use a holiday apartment or a hotel for a certain period each year. Time and again this area has been the domain of untrustwor- thy operators who managed to persuade tourists during their holiday to enter into dubious agreements. The new time-share regulations (sections 481ff. of the German Civil Code) which entered into force on 23 February 2011 and implemented the Time- share Directive of 14 January 2009 (2008/122/EC) are geared towards cracking down on these business methods and better protecting holiday-makers. The new regulations apply irrespective of whether the contract was agreed in Germany or in another EU Member State. Better information obligations ensure greater transparency and create a more reliable framework with which the consumer can make informed decisions. The existing right of withdrawal was extended to contracts with a duration of one year or more. Within the cooling-off period, down payments cannot be demanded of the consumer and the consumer does not incur any additional costs should he/she decide to withdraw from the contract. The protective measures were also extended to new contractual formats in order to prevent attempts to circumvent the rules and to also incorporate new holiday models, such as travel discount clubs, for example.

Measures for the protection of children against sexual exploitation in the tourism industry (see also input from the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth and the Federal Ministry of the Interior)

In Germany the protection of children and adolescents against sexual abuse and protection against the distribution, purchase and possession of child and adolescent pornography is fully guaranteed under criminal law. German criminal law shall however also apply, regardless of the applicable law of the country in which the offence was committed, if a German commits abroad offences under sections 176 to 176b and section 182 of the German Penal Code (sexual abuse of children and adolescents), (section 5, number 8, point (b) of the German Penal Code (StGB)), i.e. also in the case of the sexual exploitation of children in the tourism industry. Further to this, German criminal law shall also apply to offences committed abroad involving the dissemination of pornographic material (sections 184a, 184b paragraph 1 to 3, section 184c paragraph

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1 to 3 of the German Penal Code), regardless of the applicable law of the country in which the offence was committed (section 6, number 6 of the German Penal Code).

German legislation is therefore essentially in line with the requirements of Directive 2011/92/EU of the European Parliament and of the Council on Combating the Sexual Abuse and Sexual Exploitation of Children and Child Pornography, and replacing Council Framework Decision 2004/68/JI, and the Council of Europe Convention on the Protection of Children against Sexual Exploitation and Sexual Abuse which the Federal Republic of Germany signed on 25 October 2007. For Germany the two international legal instruments only result in minor measures which need to be implemented. These measures will be accommodated in legislation that is currently in the preparation stage. Following this, the Council of Europe Convention is also to be ratified.

Cross-border collaboration in law enforcement is particularly essential if the offenders are no longer in the country where the offence was committed. To ensure effective law enforcement in such situations, the offenders can be extradited or the country of residence of the offender can assume responsibility for criminal prosecution. In recent years, extradition between Member States of the European Union has been made considerably easier with the Council Framework Decision on the European arrest warrant (2002/584/JHA). In relation to other countries the priority must also be to increase the efficiency of criminal prosecution while upholding the rights of the accused individual. The Federal Government lends support to this process by advocating that countries sign and implement international conventions and by offering assistance with regard to practical implementation.

Ash cloud in the air space

The two volcanic eruptions in Iceland in 2010 and 2011 resulted in the closure of airspace and the non-operation of flights. Thousands of flights had to be cancelled or redirected because the volcanic ash threatened to damage plane engines and other aeroplane parts that are central to flight safety. Passenger safety was always of top priority in all the measures implemented by the Federal Government.

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The rights of passengers whose flights were cancelled or delayed as a result of the ash cloud are regulated in the EC Regulation on Passenger Rights (Regulation (EC) 261/2004). In the case of package systems, attention must also be paid to the provisions under travel law outlined in the German Civil Code (sections 651a ff.).

If a flight does not operate as a result of airspace closure, passengers can choose to have their tickets refunded or be rescheduled for free to a later flight. Passengers are not entitled to additional compensation, which would normally be the case if a flight were cancelled, as the closure of airspace due to the volcanic ash cloud is deemed an "extraordinary circumstance" for which the air carrier cannot be held responsible. According to the case-law of the Court of Justice of the European Union (judgement of 31 January 2013, (C-12/11)) the occurrence of "extraordinary circumstances" does not release air carriers from their obligation to provide care to air passengers.

Furthermore, in the case of tourist travel contracts (package holidays) the tour operator must bear the additional costs that are incurred as a result of the non-operation of a flight, such as additional overnight stays or a more expensive means of repatriating the passengers. Depending on the circumstances of each individual case, either the rights of the traveller to fulfilment of service (section 651a, paragraph 1 of the German Civil Code) or the right to the remedy of defects (section 651c, paragraph 2 of the German Civil Code) constitute the basis of legal claims. Tour operators can release themselves from the obligation to provide corrective action with effect for the future if they terminate the travel contract as defined in section 651j of the German Civil Code. In this case, the additional costs incurred for repatriation must be borne equally (50 - 50) by both parties (section 651j, paragraph 2, sentence 2 of the German Civil Code).

Following the eruption of Eyjafjallajökull in Iceland, the Federal Ministry of Economics and Technology invited the industry affected to attend a crisis summit on 19 April 2010. At this summit meeting it was decided to set up an "Ash Cloud Task Force" which – in addition to taking stock of the damage – also formulated lessons for similar, future emergency situations (more information is available at www.bmwi.de ).

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GEMA rate reform

GEMA, the society for musical performance and mechanical reproduction rights, announced a rate reform in the area of music events that was set to enter into force on 1 April 2013. The new rates are the subject of several actions brought before the board of arbitration under the Copyright Administration Law (Urheber- rechtswahrnehmungsgesetz) and examinations conducted by the Authority for Govern- ment Supervision of Collecting Societies at the German Patent and Trade Mark Office.

The event organisers and associations concerned complain that the rates do not take adequate account of the differences regarding the particular event formats (discos, music bars, street festivals, town festivals etc.) and result in disproportionate increases in remuneration. GEMA and the Federal Association of Music Event Organisers (BVMV) settled on an interim solution for 2013: with effect from 1 January 2013 the existing fees in the area of music events, which are the focus of the rate negotiations, will be increased by 5 percent, and the rate for clubs and discos will be increased by a further 10 percent from 1 April 2013 onwards. As a result of this solution all events, including those in clubs, discos, music bars, hotels and restaurants, variety entertainment shows and street and town festivals, can be planned for 2013 on the basis of the increased old fees.

Better protection for ship passengers

EU Regulation 392/2009 on the liability of carriers of passengers by sea in the event of accidents took effect across the EU on 31 December 2012. The Regulation is based on the provisions of the Athens Convention of 1974 relating to the Carriage of Passengers and Their Luggage by Sea as amended by the Protocol of 2002 (the Athens Convention of 2002) - which has not yet entered into force under international law - and on the Guidelines for the Implementation of the Athens Convention of 2002 which were adopted by the IMO in 2006. The aim is to introduce standardised rules regarding the liability and insurance of carriers for the death or personal injury of a passenger, and for the loss or damage to luggage and vehicles, for carriages by sea with reference to an EU Member State.

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National law on the carriage of passengers on seagoing vessels and ships for inland waterways, which continues to apply outside the scope of this regulation, will be aligned with this regulation following the Act to Reform German Merchant Shipping Law (Gesetz zur Reform des Seehandelsrechts) which was passed by the German Bundestag on 13 December 2012 and adopted by the Bundesrat. Under the new provisions, the liability of the carrier for the death or personal injury of a passenger will no longer be capped at around €164,000 - as is the case in current German law. Instead the ceiling will be increased to around €468,000. In addition a no-fault liability, capped at around €292,000, is introduced for personal injury stemming from a shipping incident, such as a collision. Further to this, the applicable maximum liability amounts for the loss, damage or delayed surrender of cabin luggage, vehicles or other baggage are also increased significantly.

Complementing this, work is currently underway on a bill to prepare for the ratification of the Athens Convention of 2002. The same is true of a convention on the limitation of liability in inland navigation which was agreed in Strasbourg in September 2012 at a diplomatic conference of the Central Commission for Rhine navigation and is to replace the Strasbourg Convention of 1988 on the Limitation of Liability in Inland Navigation (CLNI) which Germany has ratified. The 2012 Convention seeks in particular to raise the amounts to which the owners of inland water vessels can limit their liability for personal injury and material damage, which also includes personal injury to passengers on inland water vessels. Under the provisions of the new Conven- tion, the applicable maximum liability amount is based on the carriage capacity of the ship (around €118,000 should be set per permitted passenger), but amounts at least to 2 million special drawing rights (equivalent to roughly €2.3 million).

Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)

Environmental framework conditions of tourism policy

Sustainable tourism in harmony with nature and the countryside that is geared towards a sustainable management approach, the efficient use of resources and climate

. . . Page 101 protection offers an excellent framework to contribute to the long-term value add of a region, and thereby to the region's growth and prosperity. At the same time, sustainable tourism also meets the stricter demands customers make in terms of quality, and helps businesses cope with competition. Sustainability, comfort, enjoyment and health are the key ingredients of sustainable tourism products and the hallmark of a modern, successful tourism industry.

Within the framework of research and model projects, the aim of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) is to step up the development of a sustainable tourism industry in Germany and, in an effort to promote sustainable destination management, also share good experiences with the primary destinations of German tourists abroad.

Strengthening sustainable tourism development in Germany

Strengthening a sustainable tourism industry in rural areas is a key priority for the Federal Ministry for the Environment. With roughly 130 national natural environments (national parks, biosphere reserves and nature parks) that account for around one third of the area of the country, Germany ticks all the boxes when it comes to offering tourists experiences in a natural setting with a high recreational and leisure value. To this end, support has been lent to the creation of an umbrella brand name for national natural environments (led by EUROPARC Germany) in recent years. A study conducted by the University of Würzburg on behalf of the Federal Ministry for the Environment found that the 14 German national parks alone receive approximately 50.9 million visitors each year. This generates gross revenue of close to €2.1 billion, and creates or safeguards some 70,000 jobs in the regions. A similar study into Germany's 16 biosphere reserves is currently underway.

Within the framework of the "National Natural Environments" umbrella brand name, a model partnership project was implemented between conservation areas and businesses in the various regions. This project saw the involvement of some 20 areas with over 800 businesses as partners of the national natural environments. The businesses must meet quality criteria with regard to environmental quality, regionality and service, identify with the goals of the conservation areas and supply information to their customers.

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The "Erlebnis Grünes Band" environmental project which ended in 2010 and was implemented in three model regions (Elbe-Altmark-Wendland, Harz, Thüringer Wald/Schiefergebirge/Frankenwald) made a key contribution to the preservation of biodiversity in Germany's longest habitat network along the former border between east and west Germany. At the same time, the history and culture of the regions have been brought to life for locals and tourists alike, bookable tourism products have been developed and marketed following an appropriate model, and the tourism infrastructure (cycle routes and hiking trails, construction of the Torfhaus national park visitors' centre) has been improved. Furthermore, it was also possible to develop the area to the north of the Harz mountains (nördliches Harzvorland) as a tourist destination, and the Eichsfeld-Werratal region also joined the project without any funding. With the creation of regional and supraregional networks of associations and societies, this project provides a model for transregional marketing strategies in the German tourism industry.

At the initiative of the Parliamentary Committee on Tourism, the Federal Ministry for the Environment is holding a "sustainable tourism regions" competition in tandem with the German Tourism Association (DTV) in 2012/2013. This aims to reward particularly active tourism regions in Germany for their commitment to sustainable tourism and to increase the visibility of these regions, creating an incentive to further improve the quality of domestic tourism.

Accepting the challenges of climate protection and the transformation of the energy system

By 2020 the Federal Government intends to reduce greenhouse gas emissions by at least 40 percent compared to emission levels in 1990. With its decisions in summer 2011 to accelerate the transformation of the energy sector to a system based on renewable energy (Germany's Energiewende), the Federal Government laid the foundation for a modern, safe, climate-friendly and affordable supply of energy in Germany. These efforts focus on measures to enhance energy efficiency and develop renewable energy. The tourism industry also offers considerable potential to make a substantial contribution to making the Energiewende happen.

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The Federal Ministry for the Environment has been lending support to the "DEHOGA" energy-saving campaign for over five years. As part of this campaign, measures have been developed that are specifically geared towards reducing energy consumption in the hospitality sector. An energy-savings calculation tool gives businesses an exact overview of the cost-cutting effect, with close to 6,000 businesses in the hospitality sector taking part in the programme by 2012. Since 2011, to improve environmental quality businesses also have the option of undergoing a voluntary, three-tier (gold/silver/bronze) "environmental audit", which takes waste generation, water consumption and foodstuffs into account in addition to energy consumption. Any businesses meeting the requirements for the "gold standard" can also apply for certification under the "Viabono" environmental brand scheme also initiated by the Federal Ministry for the Environment.

Depending on the calculation method used, tourism is responsible worldwide for between 5 and 12 percent of greenhouse gas emissions, with around three quarters of global carbon emissions from the tourism trade coming from transportation and 20 percent from the accommodation sector. This clearly underlines the importance of the choice of transportation when holidaying. In collaboration with the Transport Club of Germany (VCD), the Federal Ministry for the Environment therefore organised a "ViaDeutschland" project in 2011/2012 that illustrates alternatives for an environmentally friendly holiday with interesting stopovers, without having to deal with the stress of flying or traffic jams. The "Destination Nature" (Fahrtziel Natur) initiative of the Transport Club of Germany (VCD), Friends of the Earth Germany (BUND), Nature and Biodiversi- ty Conservation Union (NABU) and Deutsche Bahn (German Rail) promotes sustainable mobility while also raising the profile of the national natural environments as attractive holiday destinations.

The low emission zones set up by the Länder help improve air quality in inner cities. However they contain different exceptional arrangements, such as how the ban on traffic is organised or transitional periods until the introduction of the low emission zones. To ensure the nationwide harmonisation of exceptional arrangements, such as those for older coaches, in September 2011 the higher immission control authorities of the country agreed on guidelines for the standardisation of exceptional arrangements concerning the ban on traffic in low emission zones. Talks are currently underway

. . . Page 104 between the Federal Government and the Länder centring on the mutual recognition of special exemptions once such exemptions have been granted. Nevertheless the coach travel sector is also called upon to invest, above all, in the purchase of new buses with strict environmental standards. Funding is available from the KfW environmental programme for the procurement of buses and coaches that meet the EEV/EURO VI standard.

Maintaining biodiversity – conserving the natural assets of the tourism industry

An unspoilt landscape and environment are one of the most important economic bases for tourism, with over a half of all holiday-makers indicating this as a central criterion in their choice of holiday destination (F.U.R. 2011). Therefore it is a matter of special importance to the tourism industry and the Federal Government to maintain these natural assets, defined as a key obligation in the Convention on Biological Diversity (CBD). The National Biodiversity Strategy (NBS, 2007) also sets out goals for the tourism sector - for example at least 10 percent of tourism service providers in Germany must meet environmental criteria by 2020. The introduction of the "Viabono" environmental umbrella brand created a key prerequisite for delivering on these goals.

Further to this, the Federal Ministry for the Environment is committed to ensuring that the "maintenance of biological diversity" is more deeply ingrained in the activities of the tourism sector. To this end, support was given to regional expert workshops as a platform for dialogue and collaboration to help businesses network and share best practices. Support was also lent to a dialogue forum of the WWF and the tourism industry to incorporate biodiversity objectives into the development of tourism services.

International cooperation

With the financial support of the Federal Ministry for Economic Cooperation and Development and the Federal Ministry for the Environment, the "Advisory Centre for Tourism and Biodiversity" of the World Tourism Organisation (UNWTO) in Bonn (see also Part 3.4 - Collaboration on tourism policy within the framework of the UNTWO) ran practice-oriented projects in Thailand and Indonesia that focussed on the sustainable development of popular travel destinations on the basis of the "CBD Guidelines for

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Biodiversity and Tourism Development" (2004), and on energy conservation and energy efficiency. Within the framework of these projects, the centre developed bookable tourism products for third countries. Examples include nature trails in mangrove reserves, retrofitting fishing boots for excursions with tourists or the involvement of tourists in revitalising a coral reef. Current projects support the development of a sustainable tourism industry in conservation areas in the Caucasus, knowledge-sharing between German biosphere reserves and tourism managers in third countries, and the development of sustainable tourism services along bird migration routes.

The Alpine Convention and its "tourism" protocol is another example of international collaboration and the promotion of all three dimensions of sustainability in the tourism industry. In 2011 the XI Alpine Conference agreed on sustainable tourism development in the Alps as the topic for the Fourth Report on the State of the Alps. The report was approved by the boards of the Alpine Convention in November 2012 and is due to be released in June 2013. It identifies fourteen environmental, social, cultural and economic challenges facing sustainable tourism in the Alps, and takes a cross-sectoral approach when detailing the advantages afforded by sustainable tourism and stronger innovation, management and cooperation among stakeholders in Alpine tourism and other sectors. As a measure to implement the findings, the Federal and Bavarian Ministers for the Environment and Ministers for the Economy will invite German Alpine communities, tourism associations, tourism businesses and NGOs to the national convention on "sustainable tourism - benefiting from the experience of the Alps" in July 2013. The event seeks to strengthen dialogue between policy-makers, tourism managers, tourism businesses and NGOs with regard to "sustainability in the tourism industry". The overall objective of such dialogue is to identify specific pointers and possible approaches to more sustainability in tourist destinations and among key stakeholders in this sector.

Aircraft are the main mode of transport for long-haul journeys. Therefore the reduction of greenhouse gas emissions from air transport also ties in with the goals of a tourism industry that is sustainable throughout the world. Air transport has been included in EU emissions trading since 2012. The EU had adopted the directive amendment to this effect as early as 2008 due to the failure of the International Civil Aviation Organisation (ICAO) to reach a decision on a binding measure for limiting emissions in international

. . . Page 106 air transport after years of negotiation. Inclusion in EU emissions trading affects the CO2 emissions of all aircraft arriving at or departing from EU airports, irrespective of the origin of the air carriers. Provisions to check the efficiency of the measure at the end of 2014 are also included in the directive. The Federal Government remains committed to working towards binding, global climate protection action in international air transport and is actively involved in ICAO negotiations. With the next ICAO convention scheduled for autumn 2013, the primary objective is to agree on a binding schedule for global action so that effective climate protection measures can be adopted at the ICAO convention to be held afterwards in 2016. If global action for climate protection in air transport is adopted, the EU Directive already makes provisions for potential adjust- ments. In order to facilitate such an international agreement, the EU has developed a legal instrument which, for the period of one year, removes flights into and out of Europe from the sanctions of the EU emissions trading system. The old EU ETS legislation will be restored in full automatically if the ICAO does not reach an adequate decision by autumn 2013.

Federal Ministry of Transport, Building and Urban Development (BMVBS)

The role of transport infrastructure

Tourism and mobility are inextricably linked. Absent mobility, tourism is inconceivable. Therefore mobility also generates growth and employment in the tourism industry.

According to the "Forecast for nationwide transport links in 2025" transport performance in holiday transportation is set to increase by 41 percent between 2004 and 2025, and by 26 percent in leisure transportation. An efficient and optimally linked transport infrastructure is therefore an important factor in the development of the tourism industry. In the "2011-2015 capital investment framework for the federal transport infrastructure" (IRP), the Federal Government has made provisions for investments of around €50 billion, €20.6 billion of which are to be allotted to the federal railway infrastructure, €24.8 billion invested in federal roads and €4.6 billion in federal waterways. Around 65 percent of these investment amounts are to be used for replacement and maintenance measures. With the first and second programmes to accelerate the construction of

. . . Page 107 infrastructure (Infrastrukturbeschleunigungsprogramme I + II) the Federal Government provided additional investment amounts totalling €1.75 billion in the 2012 and 2013 budgets.

Air transportation

In recent years air transport has evolved as an engine for the global tourism industry, with the number of passengers from large German commercial airports increasing from around 120 million in 2001 to roughly 180 million in 2011. Despite the aviation tax levied since 1 January 2011 and the higher price of aviation fuel, the number of passengers in Germany in 2011 had risen by 4.8 percent compared with 2010.

The goal of the Federal Government is to remain competitive in the international arena on the long term by having a well-operating airport infrastructure that is in line with market needs. The Federal Government is committed to better aligning the regional interests of airports in Germany and the role they play with regard to individual mobility and Germany's location as a business centre, while also taking environmental concerns into account. In the context of wider debate about aircraft noise and the operation of airports, the Federal Government is actively seeking a revision of the 2009 airport scheme.

Within the framework of the EU initiative to create a single European sky (SES) and with technological support from SESAR (initiative of the European Commission and the European Organisation for the Safety of Air Navigation (EUROCONTROL) to standard- ise, harmonise and synchronise services within the framework of European air transport management), the overall efficiency of air traffic management in Europe will be improved.

Strengthening rail transport operations

According to preliminary statistics, between 2002 and 2011 transportation services in passenger rail transport increased by 20.5 percent, with a 30.5 percent increase reported in short-distance transport and an 8.8 percent increase in long-distance transport. In terms of transportation and rail policy the objectives of the rail reform

. . . Page 108 continue to be (i) more transportation by rail; (ii) limiting the budgetary burden; (iii) more competition; (iv) greater efficiency. Above all, more competition should also directly benefit rail passengers and strengthen the role of the railways when competing with other modes of transport.

Regulatory law is being revised with the aim of enhancing efficiency, improving access to the railway infrastructure and strengthening competition. At the international level, the priority must be to remain on course towards further liberalisation. The European rail network has been open for cross-border passenger transport since 1 January 2010. The goal remains to be the complete liberalisation of the EU rail market.

Thanks to federal funding provided through the economic stimulus programmes, over €300 million were invested in the renovation of over 2,000 train stations between 2009 and 2011. In 2012/2013, the Federal Government will direct a further €100 million into the modernisation of 264 train stations across the country, constituting a key contribution to improving service and customer satisfaction.

Attractive local public transport services

As an environmentally-friendly mode of transport in Germany, local public transportation is a vital service of general interest, is an essential means of guaranteeing mobility both in urban conurbations and in rural areas, and also plays a central role for the tourism industry. Responsibility for planning, structuring, organising and funding local public transportation, including short-distance passenger transport by rail, lies with the Länder and municipalities. Nevertheless, under the Regionalisation Act (Regionalisier- ungsgesetz) the Federal Government is making roughly €7.191 billion in funding available to the Länder for investment in local public transportation and short-distance passenger transport by rail. Regionalisation funds undergo an annual adjustment of 1.5 percent. Further to this, according to the Unbundling Act (Entflechtungsgesetz) and in line with the reform of the federal system of government, the Länder receive compensation payments to the value of around €1.336 billion each year from the federal government to improve transport conditions in the municipalities (local public transportation and construction of municipal roads). Negotiations on the amount of federal funding to be provided after 2013 are currently underway between the Federal Government and

. . . Page 109 the Länder. In accordance with the funding program as defined in section 6, paragraph 1 of the Municipal Transport Financing Law (Gemeindeverkehrsfinanzierungsgesetz) further payments of €332.6 million annually can go towards co-funding local public rail transport routes in densely populated areas. Coach transport

Travelling by coach is an inexpensive and environmentally friendly alternative to individual motorised travel. Even with average utilisation rates, the level of fuel consumption and carbon emissions per passenger drops significantly compared to passenger car usage. Coach travel must meet strict safety and transportation quality standards, prompting a pan-European improvement in the regulatory conditions for tour coach operators.

The new EU Regulation 1073/2009 on common rules for access to the international market for coach and bus services has been in effect since 4 December 2011. In the interests of clarity and simplification, previously separate rules are incorporated into one single regulation and the link between the rules concerning access to the market and to the profession is reinforced. Furthermore under the amended EU Regulation 561/2006 bus drivers can once again organise their driving times and break and rest periods in international road transport in such a way that they can be on the road for up to 12 days. However, additional requirements are in place as regards equipment on buses (only with digital tachograph with effect from 1 January 2014) and as regards driving by night.

New EU Regulation 1071/2009 establishing common rules concerning the conditions to be complied with to pursue the occupation of road transport operator, which also applies since 4 December 2011, requires Member States to create a register of undertakings which, in its final stage, is to be interconnected throughout the Community. Certain data in this register will be publicly accessible and contribute to indicating the quality of the road transport operators.

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Liberalisation of the long-distance coach transport system

The large-scale liberalisation of the long-distance coach transport system has been in effect since 1 January 2013. The new regulation enables competition between coaches and trains for long-distance travel, which can result in an additional environmentally friendly and financially attractive alternative mode of transport for the traveller.

Cycling transport and cycle tourism

In Germany the portfolio of services for cycle tourism has been continuously improved upon in recent years, with the result that more than 200 primarily regional tourist cycle routes criss-cross the country. The twelve long-distance cycle routes that make up the "German Cycle Network" are the backbone of cycle tourism in Germany and are part of the European cycle route network (EuroVelo).

As part of the joint Federal-Länder model project on the "Development and marketing of the D3/R1 bicycle route across federal Länder", from 2008 to 2012 the Federal Ministry of Economics and Technology and the Federal Ministry of Transport, Building and Urban Development each provided €300,000 for the coordination, planning and marketing of this long-distance cycle route, which was also supported and successfully trialled by the Länder concerned and the German Tourism Association (DTV). The Federal Government remains fully committed to the expansion and development of the "German Cycle Network", particularly with a view to collaboration across federal Länder in the future.

Some 19,000 km of separate bicycle paths have been built on 39,700 km of federal roads to date. The construction and maintenance of bicycle routes on federal roads has been a separate budget item since 2002, with a total of €877 million invested in this area nationwide up to now. Federal funding also goes towards financing the development and maintenance of service roads for cycling along the federal waterways, with €3 million provided for this in 2012.

Within the context of model projects financed by funds to implement the National Bicycle Traffic Plan (Nationaler Radverkehrsplan (NRVP)), bicycle path signs were

. . . Page 111 improved and efforts to communicate information about long-distance bicycle routes were stepped up in various regions. Furthermore it was also possible to gather information with regard to the development of inoperative railways for cycle tourism, the possibility of taking bicycles on public transport, and bicycle rental systems in tourist regions, evaluate this information and make it available to the interested public (such as through the NRVP portal www.nrvp.de). With the 2020 National Bicycle Traffic Plan (NRVP 2020) which entered into force on 1 January 2013, the Federal Government continues to pursue the goal of promoting cycling in Germany as part of a modern transportation and mobility policy. "Cycle tourism" is one of the nine action areas of the 2020 National Bicycle Traffic Plan, and an important one. The Federal Government will remain committed to the expansion and development of the German Cycle Network and promote the standardisation of data on bicycle route infrastructure and the internetwork- ing of bicycle route planners across the country. Further to this, the Federal Govern- ment will assess and evaluate the success of measures to promote cycle tourism and provide specific information about possible funding and examples of best practice for service facilities in the area of cycle tourism.

Aquatic tourism

With a network of federal and national waterways extending over 10,000 km, numerous inland lakes, and close to 23,000 km2 of maritime waterways on the North Sea and Baltic Sea, Germany offers a host of attractive options for water-based leisure activities.

The expert reports commissioned by the Federal Government for the Bundestag initiative to "Improve the infrastructure and marketing for aquatic tourism in Germany" (Bundestag printed paper 16/10593) ultimately aim to eliminate the current competition for funding for urgently needed transportation measures and measures on bodies of water solely used for aquatic tourism - competition that drags down development. At a time of public budget constraints, the experts are of the opinion that the introduction of user funding on a pro rata basis would provide financial leeway for the maintenance and moderate improvement of the aquatic tourism network.

Provided that the affected Länder and water sports societies are prepared to assume some responsibility for aquatic tourism and give thought with the government to alterna-

. . . Page 112 tive types of business for aquatic tourism, the Federal Government will initiate more detailed studies for applicable regions. The introduction of a boat vignette is not planned in this 17th legislative period.

The "charter certification" which has been in place since 2004 and allows individuals - following sound instruction - to drive motor boots on certain, suitable inland waterways without a licence has proved to be an outstanding success. Some 22,000 charter passengers have tried out boat sports for the first time through the charter certification system, and got to know people and places from the water. In 2012 more routes were added to the selected waterways, which included routes in Brandenburg, Mecklenburg Western Pommerania and parts of the Saar and Lahn rivers.

To make water sports and aquatic tourism even more appealing, the Federal Ministry of Transport, Building and Urban Development - with due regard to safety and ease of navigation - raised the limit for which a licence is not needed to drive a pleasure boat to 11.03 Kw (15 PS).

Furthermore, to increase the incentive for individuals to earn a licence to operate a motor boat, since 1 May 2012 new examination requirements apply to the motor boat licence examinations for inland waterways and maritime waters, which also include environmental aspects.

Environmental and climate protection in the transport sector

Tourist destinations in particular are often located in environmentally sensitive areas. For this reason it is of central importance to make tourism and mobility as climate- friendly and low-polluting as possible.

Electric mobility Given their quiet engines and lack of emissions, electric vehicles are an ideal means of transport particularly for scenic tourist regions, protecting both humans and the environment. Electric bicycles (known as "pedelecs"), in particular, are becoming an increasingly common fixture of mobility services in many rural holiday destinations in Germany, such as for bicycle tourism in hilly and mountainous regions. And in the

. . . Page 113 context of new, flexible mobility strategies electric vehicles are becoming an increasingly attractive option for city tourists. This trend also benefits from the fact that many visitors do not travel to the destination in their own car and are therefore more willing to try out new forms of mobility, such as electric rental cars (also within the framework of car sharing) or electric bicycles at their holiday destination. Tourism and electric mobility can therefore grow and evolve together in many areas, giving rise to new business models.

The Federal Government is promoting electric mobility particularly within the framework of the government programme put in place in 2011. An important instrument in such promotion efforts is the creation of what is known as an "electric mobility stage" - essentially large-scale demonstration projects. The Federal Government has selected four electric mobility staging regions. Here individuals get to experience electric mobility hands on in the true sense of the word. New electric mobility strategies in the context of tourism are also trialled in these regions. This comprehensive approach is complemented by funding programs already put in place by various government ministries, such as the "Electric Mobility Model Regions" programme of the Federal Ministry of Transport, Building and Urban Development, the "Renewable and Mobile" programme of the Federal Ministry for the Environment and the "ICT for Electric Mobility" programme of the Federal Ministry of Economics and Technology and the Federal Ministry for the Environment which also support tourism-related projects.

Traffic noise control The Federal Government continues to set a priority on the control of traffic noise, a fact which helps maintain and increase the touristic appeal of urban areas and regions. Remaining committed to the quantitative noise reduction goals of the Second National Traffic Noise Control Package of 2009 (Nationaler Verkehrslärmschutzpaket II), the Federal Government seeks to reduce noise pollution in noise hotspots. Benchmarked against 2008 levels, the aim is to reduce noise pollution from air traffic by 20 percent, from road traffic and inland waterway traffic by 30 percent in each case, and noise pollution from rail traffic by 50 percent by 2020.

Since 2007, federal funding totalling €100 million has been provided each year for noise reduction measures on existing railway tracks of the German federal railways. With the

. . . Page 114 change of the timetable in December 2012, the German federal railways introduced a rail route pricing system with a noise-specific component which is linked to a 50 percent grant from the Federal Government to retrofit low-noise brake blocks on existing freight wagons. This grant is capped at €152 million. Further to this, between 2009 and 2011 €72 million in funding was provided from the second economic stimulus package to trial and test innovative noise control measures, which give rise to new noise abatement methods in sensitive tourist areas. A total of €40 million is also available in 2013 and 2014 for the special railway noise abatement programme which is part of the second programme to accelerate the construction of infrastructure.

The Federal Government currently makes €50 million available each year for noise mitigation measures on existing roads of public easement. The corresponding action levels were reduced in 2010 by an audible 3 dB(A).

In the field of air transport, aeroplanes have already become considerably quieter. The environmental protection committee of the International Civil Aviation Organisation (ICAO) has adopted a proposal to further tighten the noise standards for new aircraft. Passive sound insulation for individuals living near airports is improved with the Aircraft Noise Act (Fluglärmgesetz) which entered into force in 2007. The subdivision into day and night protection zones facilitates the installation of specific sound insulation for living rooms and bedrooms. Furthermore, low-noise take-off and approach procedures are practised at commercial airports.

Improving the safety and the environmental and climate track record of cruise liners

The Federal Government is actively involved in the international debate as to whether and how - subject to the conclusion of investigations into the Costa Concordia accident - more can be done towards the safety of cruise liners. In ship building this includes stability issues and functional, targeted approaches. The Federal Government also places much emphasis on the introduction of a general international obligation to simulate evacuations on new ships and to optimise evacuation processes on existing ships. Other points include the further improvement of a code for the safe management and operation of ships (ISM Code) as the central operative safety element, and calls for

. . . Page 115 the international community to play its part in ensuring that an electronic chart display and information system (ECDIS) can be introduced on the basis of reliable data even for international waters. The introduction of the ECDIS commenced on 1 July 2012. Germany also places a priority on the updating of requirements for life-saving equipment in line with the latest technical developments and findings in the field (location of life jackets, the organisation of disembarkment and the transfer to external rescue units, or the continued development of alternatives to conventional lifeboats). Large cruise liners have capacity for up to 5,000 passengers, accordingly produce large volumes of waste and sewage and emit air pollutants and greenhouse gases. With regard to oil leaks, wastewater, garbage and air pollution, under the MARPOL Conven- tion special areas or particularly sensitive sea areas (PSSAs) can be declared for cruise liners in which compliance with higher environmental standards is mandatory. For example, the use and carriage of heavy-grade oil is banned in the Antarctic. In discus- sions surrounding the introduction of mandatory regulations for the Arctic (Polar Code), which is increasingly navigable as a result of melting sea ice in the summer months, Germany will work towards a similar regulation at meetings with the International Maritime Organisation (IMO). As cruise liners often frequent ecologically sensitive areas, it is particularly important that their operation is as climate friendly and ecologically sound as possible. Measures to specifically improve the environmental and climate track record of cruise liners that go beyond the scope of legal requirements can be supported within the framework of the environmental investment programme, for instance, with due regard to funding guidelines. Furthermore, businesses can also make their commitment to the environment visible by displaying the "Blue angel for eco- friendly ship design" and the "Blue angel for environmentally sound shipping operations" eco-labels.

UNESCO world heritage sites

Under the program to promote investment in national UNESCO world heritage sites, the Federal Ministry of Transport, Building and Urban Development is making roughly €220 million available between 2009 and 2014 for the maintenance and further development of German UNESCO world heritage sites. These funds can be used to make urgently needed investment in the conservation of world-class heritage sites, and thereby maintain or increase their appeal for tourists.

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Urban development assistance and urban heritage conservation

Urban development assistance is the central pillar of the Federal Government's urban development policy. From 1971 to 2012 inclusive, a total of €14.5 billion was provided by the Federal Government for the promotion of urban development, with a further €455 million in federal funding made available in 2013. Particularly through the Urban Heritage Conservation programme, an effective contribution is made in this context to strengthening historic town centres and city districts of architectural value and of tourism potential.

Rural Infrastructure Initiative

The Federal Ministry of Transport, Building and Urban Development has brought together a series of measures within the framework of the Rural Infrastructure Initiative aimed at strengthening the rural area. As a core element of the initiative the "People and Success Stories" competition rewards exemplary solutions for a sustainable infrastructure that contributes to increasing the quality of life in rural areas, boosting their appeal and future economic strength. This also includes projects that are relevant to tourism. Furthermore, by investing in the urban infrastructure within the context of urban development assistance, smaller towns and municipalities assume a stronger role as an anchor in the region. In many cases the tourism industry also indirectly benefits from the enhancement and revitalisation of town and village centres and the modernisation of the infrastructure.

Consumer rights in the travel sector

The rights of airline passengers are primarily regulated in international treaties (notably the Montreal Convention) and Community regulations (in particular Regulation (EC) No. 261/2004 and Regulation (EC) No. 2027/97) - partly defined in greater detail or modified by the case-law of the Court of Justice of the European Union. If denied boarding due to overbooking, passengers can choose between having the price of their flight reimbursed, a return flight to the first place of departure, and comparable replacement carriage as early as possible, or at a later point provided that seats are available. Under

. . . Page 117 certain circumstances, passengers are also entitled to assistance, such as meals and beverages, two free phone calls, faxes or e-mails and – wherever necessary – hotel accommodation. Furthermore, passengers are entitled to compensation of between €125 and €600, depending on the distance. Rules to a similar effect apply if a flight is cancelled. However the right to compensation does not apply if the flight cancellation is communicated to the passenger in good time (generally at the latest 14 days before the planned departure date) or the flight is cancelled due to extraordinary circumstances. If departure is delayed, passengers are also entitled to assistance in the event of a delay of two to four hours, depending on the distance. In the event of a delay of five hours or more, passengers can also choose to have their flights reimbursed or to be flown back to the first point of departure as early as possible. In its ruling of 19 November 2009 (C- 402/07 and C-432/07), the Court of Justice of the European Union also interpreted the regulation to the effect that passengers are also entitled to compensation payments in the event of delayed arrival of three hours or more. The Court of Justice of the Europe- an Union confirmed this decision in its judgement of 23 October 2012 (C-581/10 and C- 629/10). If the flight comprises feeder flights and connecting flights the delay at the final destination is the delay that applies. However, if the delay is attributable to extraordinary circumstances, passengers are not entitled to compensation payments. This is also the case if flights are cancelled or passengers are denied boarding (judgement of the ECJ of 26 February 2013 (C-11/11)).

On 13 March 2013, the European Commission presented its proposal for a European Parliament and European Council regulation to amend Regulation (EC) No. 261/2004 and Regulation (EC) No. 2027/97 on air carrier liability in respect of the carriage of passengers and their baggage by air. The proposal concerning passenger rights aims to resolve any legal uncertainties and - where necessary - add new rights for airline passengers.

The primary amendments to Regulation (EC) No. 261/2004 outlined in the proposed regulation comprise the extension of liability to delayed arrival (wherein the case-law of the European Court of Justice is to be primarily incorporated), the incorporation of special regulations for delayed feeder and connecting flights, and an amendment to entitlements to assistance, which would be limited in some cases (such as in the event of extraordinary circumstances, which are now defined) while being extended in others.

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Other amendments concern support services (transportation by other modes of transport). The obligation of airlines to provide information to passengers is extended, and air carriers are set a period of two months in which they must respond to passenger complaints. Airports, air carriers and other stakeholders in the transportation chain should be obliged to create contingency plans. Such obligations are already in place in Germany, however. Further to this, numerous new duties of the national passenger rights' enforcement bodies should be defined, some of which could however impinge on legal protection under civil law (e.g. inspection of contracts).

The primary planned amendments to Regulation No. 2027/97 comprise an increase by more than €2,000 (2,096 SDR) with regard to advance payment requirements in the event of a fatality, the introduction of an adjustment procedure and the introduction of further refined liability regulations to increase liability for equipment for passengers with disabilities (wheelchairs, walking aids etc.). Thereafter the duties as defined under the Montreal Convention and Regulation (EC) No. 2027/97 will be subject to the passenger rights' enforcement system as defined in Regulation (EC) No. 261/2004; in particular an inspection of the contents of agreements (including package travel agreements) by the national passenger rights' enforcement body should be possible.

The Federal Government generally welcomes a revision of the regulation on flight passenger rights. The experience gathered since 2005 when the regulation first entered into force, such as the extraordinary circumstances experienced with the volcanic ash cloud, and the court decisions since made on the interpretation of the regulation, clearly indicate that there are several open issues that require clarification. The Federal Ministry of Justice and the Federal Ministry of Transport, Building and Urban Develop- ment informed the German Bundestag of the plans following the prior involvement of the departments.

The primary aim of the revision must be to clarify the legal questions that arise in the practical application of the regulation and have resulted in many cases being brought before the Court of Justice of the European Union. The fair accommodation of conflict- ing interests between the undertakings and the passengers must be ensured. Further- more, where necessary and appropriate Regulation (EC) No. 261/2004 must be consistently aligned with the passenger rights regulations of other modes of transport

. . . Page 119 and made compatible with the Package Travel Directive and the obligations under international law as derived from the Warsaw Convention and the Montreal Convention.

Regulation (EC) No. 1107/2006 concerning the rights of disabled persons and persons with reduced mobility when travelling by air will continue to protect the rights of passengers. The regulation enables reliable and accessible mobility on the long term for disabled passengers and passengers with reduced mobility. This is ensured by pan- European obligations on air carriers and airports to provide information and assistance. It is the duty of airports to organise the end-to-end provision of assistance to people with reduced mobility - from the time of arrival at the airport to the time of departure and vice versa. During the flight, the air carriers must also provide assistance to the passengers free of charge.

On 20 March 2013, the European Commission finally issued a communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions concerning passenger protection in the event of airline insolvency (COM(2013) 129 final), which only contains information and announcements of measures. Before proposing new legislation to protect passengers against airline insolvency, the Commission considers it essential to strengthen the licensing oversight of EU air carriers under Regulation (EC) No. 1008/2008. The examination of the economic performance of an airline is already part of the licensing procedures defined under Regulation (EC) No. 1008/2008. According to the European Commission, Regulation (EC) No. 261/2004 already offers an adequate legal framework to support passengers in the event of airline insolvency. The Federal Government supports the efforts of the European Commission to reduce the negative impact of airline insolvency by making more effective use of the existing legal instruments.

Please see the section on the role of the Federal Ministry of Justice for information about an arbitration board for air transport.

Regulation (EU) No. 1177/2010 concerning the rights of passengers when travelling by sea and inland waterway has been in effect across Europe since 18 December 2012. Following similar regulations for air and rail travel, in the event of non-operation or a

. . . Page 120 delay passengers on seagoing ships and certain inland water vessels receive compensation which is scaled depending on the length of the delay. Furthermore, the rights of passengers with a disability or reduced mobility are strengthened. The EU Regulation requires EU Member States to set up national enforcement bodies to enforce the regulation as regards passenger services and cruises and to define sanctions for any infringement of the regulation. This has been implemented by the enactment of the EU Maritime Passenger Rights Act (EU-Fahrgastrechte-Schifffahrt-Gesetz), which entered into force on 12 December 2012, and the EU Maritime Passenger Rights Ordinance (EU-Fahrgastrechte-Schifffahrt-Verordnung), which entered into force on 17 December 2012. Among other things, the EU Maritime Passenger Rights Act designates the Federal Railway Authority (Eisenbahn-Bundesamt) as the body responsible for the enforcement of Regulation EU/1177/2012 and regulates the powers this body has. Furthermore, under the aforementioned law, passengers can also contact a suitable arbitration board to settle disputes arising from transportation by sea and inland waterway if the partner to the agreement has declared that it is willing to take part in the arbitration process. With the decision of 26 March 2013 the Arbitration Board for Public Transport (Schlichtungsstelle für den öffentlichen Personenverkehr, (söp)) was recognised as a suitable arbitration board by the Federal Ministry of Transport, Building and Urban Development and the Federal Ministry of Food, Agriculture and Consumer Protection. Furthermore, the EU Maritime Passenger Rights Ordinance essentially defines the sanctionable actions and appropriate procedures in the event of an infringement of Regulation (EU) No. 1177/2010.

Finally EU Regulation 181/2011 concerning the rights of passengers in bus and coach transport has been in effect since 1 March 2013. Following the example of the modes of transport already mentioned, this regulation strengthens the rights of bus passengers and gives individuals with a disability or reduced mobility better access to travel by bus and coach. The regulation primarily applies to passengers travelling with regular services where the scheduled distance of the service is 250 km or more (long-distance services). For long-distance services the regulation regulates the rights of passengers in the event of delays (e.g. the right to information, appropriate assistance, reimbursement and compensation), the compensation to be paid by carriers in the event of the death or personal injury of passengers, and in the event of loss or damage to luggage as a result of an accident, and the obligation to provide certain assistance free of charge to

. . . Page 121 individuals with a disability or with reduced mobility. Some of the provisions of the regulation, however, also apply to regular services with a shorter distance of service and to occasional services, such as the ban on any discrimination whatsoever based on the nationality of the passenger as regards contract conditions and tariffs, the non- discriminatory treatment of individuals with a disability or with reduced mobility, and compensation in the event of loss or damage to mobility aids. The regulation also requires regular service carriers to set up a system to process complaints and requires Member States to appoint an enforcement body.

The national accompanying law was adopted by the Federal Government on 30 January 2013 and is due to enter into force in the summer of 2013. Following the EU Maritime Passenger Rights Act the bill contains arbitration rules that are aimed at the amicable settlement of disputes between the carrier and passenger.

Federal Ministry for Economic Cooperation and Development (BMZ)

Sustainability and responsibility are the guiding principles of any involvement of development policy in the area of tourism. The aim is to achieve a sustainable tourism industry that is socially, culturally, environmentally and ethically responsible and economically successful. The tourism industry is one of the economic sectors with the highest rate of employment (approx. 9 percent worldwide) and value added, and can achieve inclusive growth and help alleviate poverty. The promotion of sustainability in the tourism industry therefore has direct relevance for attaining the United Nations Millennium Development Goals, particularly with regard to the eradication of poverty, sustainable (economic) development and the protection of the environment and natural resources.

For German development cooperation, the priority is to identify and tap the potential of tourism for creating jobs and establishing a fair wage, for improving the income situation of poorer segments of the population and thereby helping to reduce poverty. Tourism should have a positive impact on the preservation of natural resources, and responsible interaction with the culture and traditions of the local population should be promoted. Positive effects from tourism on employment and income in developing countries can

. . . Page 122 then be expected if the tour operators have recourse to a wide range of goods and services in the local area. The local production and service structure can be developed, diversified and improved along this value added chain in the tourism sector.

The challenge of development policy is to tap the potential tourism offers while minimis- ing the ecological, social and cultural risks associated with the tourism industry. The better this system works the more tourism can become a key sector for a green economy of the future. Once tourism grows disproportionately in developing and emerging countries, this task will become increasingly important but all the more difficult. The 2011 strategy paper of the Federal Ministry for Economic Cooperation and Develop- ment entitled "The contribution of the tourism industry to sustainable development and to achieving the Millennium Development Goals" gives an account of the position of development policy in this economic sector and is an important point of reference for international collaboration.

The KfW bank group (KfW) and the German Society for International Cooperation (GIZ) are primarily responsible for implementing projects on behalf of the Federal Government that focus on the promotion of tourism in developing countries. An average of 80 projects containing budgets for tourism-related measures were implemented each year, with around 30 percent located in Africa, Asia and Europe respectively, and 12 percent in Latin America and the Caribbean. Furthermore, many other projects also contain tourism-related components.

The following are at the forefront of development policy measures to promote tourism:

 The promotion of business development and employment with a focus on the development of value chains in the broader tourism sector  Sustainable exploitation of biodiversity and ecosystems to support the income of local communities  Development of green economy approaches to boost the resource efficiency of the tourism industry and to adapt to climate change  Development partnerships with private enterprise and support for CSR  Tourism planning, management and marketing  Training and continuing education/knowledge transfer

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 Education and PR work

Examples: The tourism industry in north Africa has been badly affected by the political turmoil in the region. And while the numbers of visitors are on the rise again, they have yet to reach pre-revolution levels. The priority here must be to support countries like Egypt or Tunisia in recovering the confidence of tourists while also increasing quality. In collaboration with TUI, a travel group, German development cooperation supports skills development and employment - particularly of women - in the Tunisian hotel industry. Furthermore, the project also works towards the stronger integration of local products into supply chains to hotels, thereby helping to increase value add in the country. Within the framework of a strategic alliance between German development cooperation, the Egyptian tourism ministry and partners from the private sector, an eco-label has been developed in Egypt for the Egyptian hotel industry (Green Star Initiative) which is now being implemented at the national level.

Further to this, German development cooperation supports partner countries in establishing and managing conservation areas, which – such as the Serengeti – are major tourist attractions. Above all it is important that the local population be involved in the identification and management of conservation areas and can benefit from the eco- system services. Some countries, notably those in the savannah regions of Africa, depend heavily on nature tourism for their economic development (Kenya, Tanzania, South Africa, Namibia). Tourism is often the gateway to the development of the private sector, i.e. the creation of jobs and additional income.

Providing €35.5 million in funding through the KfW, the German Federal Government supports the "Kavango-Zambezi Transfrontier Conservation Area" project (KAZA) located in the border region between Angola, Botswana, Namibia, Zambia and Zimba- bwe and thereby successfully contributes to the creation of new jobs. This project was born of a regional initiative to protect natural resources in southern Africa. The conservation area is to cover an area of 444,000 km², making it the largest transnational conservation area in the world. By creating this conservation area, the aim is to protect and maintain biological diversity and promote sustainable economic development which can help alleviate poverty. At the same time, collaboration between countries in former

. . . Page 124 regions of conflict is fostered as a contribution to peace and stability in the region. The quality of life of the local population should improve in this way.

Further to this, as part of its development cooperation activities the Federal Government also supports Tanzania in the protection and sustainable development of the world- renowned Serengeti eco system. The region is famous for the seasonal migration of two million wild animals and is of great importance for Tanzania's tourism industry. With a total of €23.5 million pledged, the project is implemented as a collaborative effort by the KfW, the German Society for International Cooperation, the Frankfurt Zoological Society and Tanzanian partners. It comprises the following measures: development of the economic and social infrastructure and measures to generate income (including tourism) in the northern neighbouring districts, development of the park infrastructure, and the reform of the management of wildlife protection. In tandem with partners on the Tanzanian side, solutions are developed that demonstrate that - far from being opposite goals - economic development and nature conservation complement each other well.

Under the "Open Regional Funds for South-East Europe – Foreign Trade" programme (ORF), support is lent to the development of tourism structures that can assist the development of the region by defining a cross-border economic strategy particularly for the tourism industry and by promoting cross-border hiking-based tourism between Montenegro, Kosovo and Albania. Furthermore, German development cooperation also supports the "Danube Competence Centre" (DCC), a regional network of public, private and non-governmental organisations from Croatia, Serbia, Rumania, Bulgaria, Ukraine and Moldova.

For the purpose of implementing the ECPAT Code against the sexual abuse of minors, since the start of 2013 a development partnership has been in place with The Code (an initiative supported by the business community that works towards the protection of children from sexual abuse in the tourism industry) and tour operators (Kuoni, Accor, TUI) in Thailand. The ITB is also an important partner here. With the signing the code of conduct in 2011, the ITB clearly voiced its opposition to the sexual exploitation of children.

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In the Danube region, support is lent to the development and implementation of a Danube Competence Centre as a regional institution for the promotion of tourism development.

The Federal Ministry for Economic Cooperation and Development shows multilateral involvement in international boards and economic forums such as the World Tourism Forum in Lucerne, the Pacific Asia Travel Association (PATA), the World Travel and Tourism Council (WTTC) and at major tourism trade shows such as the ITB.

Other tasks include the critical oversight of international processes for the development, refinement and penetration of sustainability standards such as the Global Sustainable Tourism Criteria (GSTC), Travelife, The Code, Eco Mark Africa and the communication of cooperation strategies with the private sector involved in tourism.

Further to this, the Federal Ministry for Economic Cooperation and Development became a member of the Global Partnership for Sustainable Tourism (GPST) in autumn 2011. In this international platform, which was established with the support of the United Nations, the different players in the tourism industry - ranging from national governments, municipalities and the tourism business community to international organisations, NGOs and the scientific community - unite to work on the goal of sustainable tourism. In March 2013 the Federal Ministry for Economic Cooperation and Develop- ment in Bonn organised the annual GPST convention with the help of the United Nations Environment Programme (UNEP), the UNWTO and the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). At this three-day event, talks focussed particularly on the following topics:

 "Tourism growth: sustainable, green and socially equitable?"  "Biodiversity and sustainable tourism: recommendations to the Biodiversity Con- vention of the United Nations"  "Private sector: practices and responsibility for resource efficiency and sustainability"

At the national level, the "network for tourism issues" (Themennetzwerk Tourismus) sponsored by the Federal Government is a central body for the dissemination of

. . . Page 126 information and the agreement of tourist-industry measures that are relevant to development policy between the Federal Government (Federal Ministry of Economics and Technology, Federal Ministry for the Environment, Federal Ministry for Economic Cooperation and Development), the project execution organisations of German development cooperation (GIZ, CIM, KfW), the Federal Agency for Nature Conservation (BfN), the German Investment and Development Corporation (DEG) and UNWTO/Bonn and the Study Group for Tourism and Development.

Part 5 – Key players and organisation of tourism policy in Germany

Within the Federal Government, the Federal Ministry of Economics and Technology has lead responsibility for tourism policy. As this report demonstrates, in many areas tourism policy - as a horizontal issue - cuts across the areas of authority of different departments, such as finance, education and research, labour and social affairs, transportation, the environment, consumer protection, family, culture, justice, home affairs and foreign policy.

The primary duty of the Federal Government in tourism policy is to improve the general conditions and therefore strengthen the competitiveness of businesses. As part of federal responsibilities, this also includes the provision of the necessary infrastructure for tourism together with the Länder and municipalities. Responsibility for specific planning, development and the direct promotion of tourism generally lies with the Länder. Tourism policy is agreed twice annually between the Federal Government and the Länder in the Federal-Länder Committee chaired by the Federal Ministry of Eco- nomics and Technology.

The role of the Federal Government Commissioner for Tourism was introduced in December 2005. The Commissioner acts as the point of contact for the business community and its associations. Currently Mr. Ernst Burgbacher occupies the office as a Parliamentary State Secretary at the Federal Ministry of Economics and Technology. He voices tourism-related concerns in the Federal Government and in Parliament, particularly in the Parliamentary Committee on Tourism. The Committee on Tourism provides valuable impetus to tourism policy and through its initiatives, questions and

. . . Page 127 consultations raises public awareness of the economic importance of the tourism industry.

The role of the Advisory Council on Issues of Tourism at the Federal Ministry of Eco- nomics and Technology is to ensure the close collaboration between the Federal Government and the tourism industry. This advisory council brings together the interests of policy-makers, the business and scientific communities, trade unions, municipal bodies and associations. Convening twice a year, the advisory council's members include the Tourism Committee chairperson and the tourism policy speakers of the parliamentary groups of the German Bundestag in addition to representatives from the areas mentioned above. The Federal Commissioner for the Small Business Sector and Tourism heads the advisory council on behalf of the Federal Minister of Economics and Technology.