European tourism under fire – new ETC chief steps up to face the challenges

With European tourism at a critical juncture, coming under pressure on several fronts, including environmental and social, the new president of the European Tourism Commission (ETC) said it is even more timely to remind Europeans of the original objective of the organization.

Speaking at Phocuswright WiT Middle East in Dubai on May 3, Miguel Sanz Castedo, who is also director general of the Spanish Tourism Institute (TURESPAÑA), said the ETC was founded in 1948 to bring peace and prosperity to the continent after World War II.

“It’s interesting that 75 years ago after the Second World War, people thought tourism was a tool for peace and prosperity," he said. "And 75 years later, we have to use that tool as much as possible.

“There are headwinds in the world – the Russian invasion of Ukraine, the situation in the Middle East. We have to remind ourselves that tourism is a tool designed to bring peoples together and create economic prosperity.”

He added, “Tourism in Europe is undergoing a complete transformation of its model — not only economic, but social and environment. Europe is the world’s biggest destination, and some of the biggest destinations in the world are in Europe – Spain and France, for example. We need to make the world understand that tourism is not only an important economic activity, but an important human activity.”

Asked if tourism bodies needed to change their language so that people don’t see tourism as just numbers, in light of incidents in the Canary Islands, for example, where locals are protesting overtourism, he said, “Defining and deciding on the right [key performance indicators] for the industry is important. The biggest KPI so far has been volume of visitors – is it still valid today? Is it valid for all destinations? Should Spain and France be always competing to be the biggest?

“Now when I am asked about Spanish tourism, I don’t say we received 85 million visitors, 3% more than last year – I talk about expenditure, 108 billion euros that add to the prosperity of the country, for instance. Other KPIs are important – number of jobs, salaries, hotel nights, investment, carbon footprint. And it’s not just monetary KPIs – there’s also social value. For example, in Spain, we have some places that are losing population because of migration, and tourism is helping these places.

“It’s not just about the money. It’s about the impact on the local community. A visitor who spends less but engages with local experiences can have higher added value.”

He noted that the United Nations World Tourism Organization has produced a framework for measurement of social and environmental sustainability, which is up for approval by the United Nations General Assembly in September. “It will be a game changer in identifying key indicators.”

“Every visitor has to contribute to the well-being of citizens”

Castedo said destinations are increasingly evaluating tourism’s contribution to residents’ quality of life, shifting from visitor-centric models to community-focused approaches.

“The Netherlands has a 2030 strategy that says every visitor has to contribute to the well-being of citizens," he said. "It’s about asking what you really want from tourism.”

Another way of tackling overcrowding in popular spots is to develop new destinations in Europe, even if they are just a few kilometers from established ones, to take pressure away from the main attractions.

Balancing tourism seasonality can also ease local tensions during peak seasons and provide more stable employment opportunities. 

“We think that we have to level up seasonality … to ease tensions in the summer season and provide more stable jobs in the winter season.”

He added that regulatory measures were also needed to address housing imbalances caused by short-term rentals in tourist areas, ensuring accessibility for local residents. 

“In the Canary Islands, some form of regulation is needed so things can be balanced again regarding housing for residents and tourists.”

There’s also pressure on flights and airports. Castedo was asked: Could we be facing a future of constrained tourism in Europe because of this?

“The first thing we have to do is commit to reduce the carbon footprint of air aviation – we have an undertaking to make air travel net zero by 2050," he said. “So we need to help the industry reduce carbon emissions with the technology available right now – and that’s [sustainable aviation fuel], and that’s not dependent on tourism but the energy sector. We need to encourage them to speed up production.

“Restricting airports and flights – that should be the last resort. We must speed up the tech that allows us to reduce significantly carbon emissions. For example, single skies would help us reduce by 9-10%, so let’s try everything else first. It would be bad for everyone if only elites could travel.”

At the same time, he said, “We need to encourage people to move in a more sustainable way.”

He said that introducing competition in sectors like rail has helped reduce prices and make sustainable transportation options more accessible for travelers in Europe. “How did we take train prices down? Instead of one state-owned company, we have three. So there’s more competition, and prices have gone down.”

*This article originally appeared in WebinTravel.