“Tourism as a Tool for Sustainable Economic Growth’’

A Speech by the Hon. Dora Bakoyannis, Former Greek Minister of Foreign Affairs; March 05th, 2014

Biography

Dora Bakoyannis is a Greek politician. From 2006 to 2009 she was Minister for Foreign Affairs of Greece, the highest position ever held by a woman in the Cabinet of Greece; she was also Chairperson-in-Office of the Organization for Security and Co-operation in Europe in 2009. Previously she was the Mayor of Athens from 2003 to 2006, the first female mayor in the city’s history and the first woman to serve as mayor of a city hosting the Olympic Games. She also served as Minister for Culture of Greece from 1992 to 1993. She currently serves as an independent member of the Hellenic Parliament representing unofficially Democratic Alliance, the political party she founded in 2010, having been expelled from the opposition New Democracy party. In May 2012, due to the critical situation in Greece before the elections and given the established electoral law, Democratic Alliance decided to cooperate with New Democracy, based on a specific framework of values and to suspend its activities. Dora Bakoyannis rejoined New Democracy on 21 May 2012, ahead of the parliamentary election in June, where she headed the state deputies’ ballot.

“Tourism as a Tool for Sustainable Economic Growth’’

A Speech by The Hon. Dora Bakoyannis, Former Greek Minister of Foreign Affairs

The Berlin International Economic Congress 

"Global Trends in Creative Economies: Green Industries, Education, Entrepreneurship and Tourism as Drivers of Sustainable Economic Growth"

(Berlin, 5th-7th March 2014)

Your Excellencies, Ladies and Gentlemen,

I am delighted for the opportunity offered to me today to speak of tourism as a tool or sustainable economic growth and, in fact, of how a sustainable economic growth is to the benefit of tourism.

Tourism is inextricably important for progress, growth and poverty reduction. However, the link between tourism and sustainable growth is not automatic. Many Countries have spoiled their natural resources through tourism.

 

Dear friends, after making a few general observations, I will focus in more detail to the case of Greece which is in many ways that of a typical, yet also atypical, tourist country.

Ladies and Gentlemen, over the last few decades, tourism has become one of the largest and fastest growing industries. According to the United Nations, this industry generates 5% of global Gross Domestic Product and 7% of the overall number of jobs worldwide.

Tourism is a basic means for receiving what we call “invisible earnings’’ in a modern economy. The economy of modern societies can be sub-divided in three distinct categories vis-à-vis tourism;

- Countries where tourism still plays an insignificant role in their economy.

There is, indeed, a wide spectrum of countries which, for a variety of reasons, have not managed to become major tourist destinations: they are either remote, unsafe, or not interesting enough as tourist destinations.

A look at the list of global tourist destinations will immediately reveal that a booming tourist industry exists in just a few dozens of countries: Europe North and South,

Turkey, a few Arab countries, a few more in the far East, North America, Mexico, and a few South American and African countries. One should add Australia and New Zealand of course but tourism there is not a capital income generator.

- A second category is that of the fully successful tourist destinations.

The catalogue here comprises countries, Regions, or just cities which have managed to become all-year round tourist destinations and which have successfully linked tourism with other forms of economic activity.

In so doing they have enhanced the economic benefits they derive from being first-class tourist destinations. This second list is not particularly long: it comprises just a few, mostly European, countries, and a few well-known cities, which have succeeded to attract low, as well as high income, visitors whose numbers are evenly spread throughout the year.

Countries like Italy, the foremost example, France, Britain, etc. and specific cities, like London, Paris, Prague, Berlin, or New York, cities that actually attract the largest number of visitors compared to the total number of those visiting the respective countries where these cities are located.

- Last but not least comes the third category: “sun and sea’’, or mostly recreation, in countries which, more often than not, offer interesting opportunities for sight-seeing, antiquities etc, as well.

Ladies and Gentlemen, from the rather summarily description above it is easy to see that the various countries in the world, depending on which of the three categories they belong, need to elaborate different strategies, either in order to maintain or in order to advance their tourist industries: countries which are today obscure in the tourism business can, if they so wish, elaborate ways of increasing their appeal for visitors and thus in their turn become tourist destinations, as others have done before them. Fully-fledged tourist destinations must try to maintain their dominant position in the future also. And middle of the way countries, in which tourism is highly seasonal, need to elaborate strategies to expand the tourist season and to attract other, and not mostly ‘’recreational’’ tourists.

Dear friends, this three-partite categorization is of tremendous economic interest; for it is obvious that not becoming a tourist destination at all, being a fully-fledged one, and being just a ‘’sun-and-sea’’ destination offer respective societies comparatively low, full, or comparatively high economic advantages.

One main economic factor, therefore is the success, or not, of a country or City to be a full, partial, or low interest destination.

If you are a full, all-year round, destination there is more to it for the economy and the quality of life than just tourists pouring in the entire year:

- In fully fledged tourist destinations the working force is generally more skilled and effective, as tourism for them is a permanent and not a seasonal occupation.

This further increases the attractiveness of the country in question, as service is generally of a much higher quality.

- Unemployment in the sector is minimal.

- In these cases a further economic benefit is the optimal use of all sorts of infrastructure: roads and railways, airports and harbours, like in Italy, and unlike Greece for example, are good value for money as they are not built to mostly serve for, say, one third of the year; and this is even more the case with tourist infrastructures in the proper, or narrower, sense, that is hotels, golf courses, aquatic centres and so on.

- Related industries enjoy greater benefits: theatres and operas gain more spectators, shops win more customers, agricultural or industrial products sell more of their output, commuter services win more passengers, and so on.

The list of economic benefits for countries, Regions, and specific cities enjoying all-year round tourism ladies and Gentlemen, is impressive, and practically highly beneficial for the entire economy!

It is obvious that there are collateral benefits also in such cases:

- For the overall prestige of a country

- For its cultural output

- For the flourishing of its regions

- For the value of real estate

- For its banking system

- For the quality and sustainability of its commuter services, and so on.

In such cases, the countries, Regions, and cities enjoying the benefit of all-year round tourism have but one preoccupation: maintaining their status.

This is not as easy as it sounds: time-long destinations of this sort need to maintain buildings and other forms of infrastructure in good shape permanently; they must constantly diversify their tourist product to sustain the constant interest of visitors; and they must, above all, keep conditions of political and economic stability such as they would ALWAYS make it safe for visitors to keep coming in again and again.

Ladies and Gentlemen, for countries almost totally outside the tourist industry the way to begin is, obviously, promoting the overall visibility of the country; it is only when a country is recognisable as possessing an identity, as well as some particular benefits for the tourist, that it can actually start entering the global tourist market.

But this strategy can only work when the country in question can offer political stability and safety to the visitor, as well as an, elementary even, communications system and hotel and other infrastructures. Still; countries rising from almost nowhere to become important tourist destinations abound: in recent decades people visit numerous places in the Pacific, in the Caribbean, in Africa, in East Europe and elsewhere.

There is obviously abundant ground for expansion; and it is apparent that successful strategies for emerging markets have been on offer and that they hit their target!

Dear friends, in discussing the “middle category’’, that of developed yet not fully fledged tourist destinations, I will use the example of my own country, Greece.

Greece receives more than 17 million tourists a year; her advantages are fairly, though certainly not fully, known:

- The most precious and symbolic ancient sites of Western civilization.

- A rich Byzantine and religious tradition, as well as many relevant monuments.

- A variety of architectural styles in her island and mountain villages.

- An incredibly long and varied coastline, 16.000 kms long, the circumference of Africa!

- The most amazing and clear waters in Europe.

- Alpine mountains, lakes and primeval forests, which very few tourists ever see as they lie outside the beaten tourist track.

Tourism in Greece is, alongside shipping, one of the two strongest sources of invisible earnings for the Greek treasury. It is, naturally, of paramount importance for the Greek economy, for employment, and for Regional development, as many tourist areas have few, if any other sources of income.

Like many countries in this category, Greece, for being fully successful as a tourist destination, needs to face the great problem of her tourist industry’s seasonal character. The lack of a more evenly-spread tourist season is the main problem in Greece (as in many other medium-fledged destinations) and is followed by all other, related problems:

- Costly infrastructures, sometimes only used for one fourth of the year. Imagine the mere number of ports and ferries required to serve the hundreds of island destinations.

- The roads in so many rugged islands and coasts.

- The airports in minor locations, but of importance for tourism.

- The working force who, in their majority, are seasonal to tourism and not full professionals; this lowers the overall level of Greek tourism.

- There are other negative side-effects also, diminishing the economic benefit:

- A great increase in imports, in order to serve to foreign travelers the products they use to consume in their own countries.

- Environmental damage from construction, the spoiling of natural resources, the neglect of soil preservation and expanding forest fires whose damage is incalculable.

- The abandonment of agriculture, and so on.

Ladies and Gentlemen, the example of Greece may present some rather rare features but is, nonetheless, useful for almost every other country in her category.

In speaking of what Greece should do to guarantee that tourism fully becomes a tool for sustainable economic growth I am, I believe, speaking for many other countries in her relative position.

I will try to be brief and precise. My main premise is that GREECE MUST EXPAND HER TOURIST PRODUCT TO BECOME ALL-YEAR ROUND AND, IN SO DOING, SHE MUST LIAISE IT WITH EVERY OTHER KIND OF ECONOMIC ACTIVITY IN THE COUNTRY.

THUS TOURISM WILL BECOME A POWERFUL ECONOMIC TOOL FOR OVERALL SUSTAINABLE DEVELOPMENT.

And I explain: Setting the target of expansion in time, throughout the year that is, means nothing by itself. One needs complimentary strategies.

I will describe some.

- Developing particular types of tourist products and services: SPA’s, golf courses, adventure, mountains and forests, remote island tracking, religious tourism and tours of monasteries, farming and forestry tourism, hiking and so on.

The list of what Greece can do in all of these fields, including skiing in winter, and of course sailing for most of the year, is long and impressive.

She has started; she is doing rather well; but she needs to double her efforts.

- Decisively introduce city-breaks: Athens and Thessaloniki, as well as Patras, Corfu, Volos, Chania, Rhodes, and several other cities, enjoy tremendous night life, good shopping and not only sites and museums.

Athens and Thessaloniki are good European hubs for culture all-year round.

Sectoral policies, new branches of tourism and the exploitation of urban and country tourist resources is the answer to the need of prolonging the tourist season.

But there is, in my opinion, another capital target to be met if tourism is to yield all of its benefits:

- Streamlining many other economic activities with tourism to the benefit of both these activities and tourism.

- Agricultural produce and meat production should focus on serving particular tourist needs and specialize in the much-sought organic farming.

- Participation of visitors in such activities (farm tourism) all-over the country.

- Revival of agriculture where it was previously abandoned in order to produce specific highly prized local products in many of the islands where agriculture has been abandoned for the sake of tourism, causing environmental degradation.

This, and many other of my proposals make of tourism a powerful tool of the green economy.

This is why it is high time to take advantage of new technologies also, be it bio-climatic new type of buildings, solar and other energy power supplies etc. It is one more way of advancing sustainability.

- Revival of small industry and artisan crafts of quality.

- Promote the modern and vivid cultural life of the country and not only its well-known past

The list is long but the benefits to come will certainly justify the effort! It is obvious that tourism has the potential to contribute to sustainable economic growth. The case of Greece is an excellent proof of this. This sector’s capacity to generate employment and income, as well as a regional economic development, makes it important for economic diversification and overall development.

Ladies and Gentlemen, in discussing the power of tourism as a factor of sustainable economic growth, I have described the three main categories of countries in relation to the economy of tourism. I have analyzed the multifaceted benefits resulting from tourism in fully developed tourist destinations. I have expressed my belief in the potential success of many countries now entering the tourist market if they follow the right strategies. Last but not least I have presented the case of countries in need of further developing their tourist industry. In so doing, I have used the case of Greece, which I know well and which, I believe, is useful for drawing wider conclusions for many other countries in a similar situation. And I have presented both the fields in which such a development can occur and how it can be linked with economic activities favouring a sustainable growth.

 

Ladies and Gentlemen,

The quality of tourism and its survival in many places can only be guaranteed if it becomes more and more linked with sustainable economic development in general.

In discussing Greece, I hope I have made it clear how this can be achieved.

Thank you for your attention.