ANNUAL TOURISM REPORT 2013 Iceland
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1 ANNUAL TOURISM REPORT 2013 Iceland Article 3 of Council Decision 86/664/EEC 1 of 22 December 1986 establishing a consultation and cooperation procedure in the field of tourism stipulates that: "...each Member State shall send the Commission, once a year, a report on the most significant measures it has taken and, as far as possible, on measures it is considering taking in the provision of services for tourists which could have consequences for travellers from the other Member States. The Commission shall inform the other Member States thereof". The following reporting form aims at facilitating compliance with this Council Decision &pgs=10&hwords= 1
2 SECTION 1 TOURISM ORGANISATION AND GOVERNANCE This section is aimed at reporting on the following: Administrative organisation Territorial organisation Organisation and links between the national tourism authority and the provinces / regions Organisation and links between the national tourism authority and industry associations, stakeholders and customers 1.1. Short description of the administrative and territorial organisation of public bodies responsible for tourism Government responsibility rests with the Ministry of Industries and Innovation. The Icelandic Tourist Board (ITB) handles the implementation of tourism affairs and has the following main responsibilities a) Issuing licenses, registration and monitoring in order to ensure that requirements for operations are met; and b) Development, quality control and organisational issues related to tourism: i.e. the implementation of a defined tourism strategy, the co-ordination of environmental and educational affairs, the dissemination of information, regional and local development, and international collaboration. ITB co-operates with Innovation Centre Iceland, especially projects pertaining to innovation and product development requiring regional co-operation. Promote Iceland (PI) works directly under the Ministry for Foreign Affairs and handles international marketing. PI is a public-private partnership and is responsible the branding of Iceland as an eciting destination for tourists and assisting in the promotion of Icelandic culture. PI has active co-operation with the Trade Council and the Embassies of Iceland. Domestic marketing - ITB collaborates with 7 regional marketing offices and provides them financial support. Those offices are linked to regional tourism associations and associations of local authorities. The tourism associations represent the grass root and join under the umbrella of the Icelandic Tourism Association. The Icelandic Tourism Council is appointed by the Minister for Industries and Innovation and comprises representatives from: the Ministry, the Icelandic Travel Industry Association, the Association of Local Authorities in Iceland, the Iceland Tourism Association, and Promote Iceland. The Director General of the Icelandic Tourist Board and a representative for the ministry attend Tourism Council meetings and have the right to address the meetings and present proposals. The mandate of the Council, according to Act 73/2005, is to make recommendations to the Minister, at least once a year, on the marketing and promotion of services to tourists, and to act as the Minister s advisor on matters concerning tourism planning. The Council also comments on amendments to tourism-related legislation and regulations and on other matters referred to it by the Minister. A new period of appointment for the Council is , but new council members have not been appointed. 2
3 1.2. Please provide an organisation chart reflecting the above described administrative and territorial organisation. Ministry of Industries and Innovation Ministry for Foreign Affairs Tourism Council Iceland Tourist Board Innovation Center Iceland Promote Iceland Contract on marketing and promotion Licencing Environmen tal affairs Quality System Vakinn Regional promotion and marketing offices -Reykjavík -West Iceland -Westfjords -North iceland -East Iceland -South Iceland -Reykjanes Peninsula 3
4 1.3. Relationship and main areas of cooperation between national/regional public tourism bodies and the most significant / active private organisations / stakeholders / industry associations /unions / consumer organisations Regional promotion offices are independent entities usually owned and run by the local municipalities, tourism companies and/or tourism associations. They are located in 7 different regions around Iceland and work both independently and together with other bodies. Their main aim is to market Iceland as a tourism destination, to decrease seasonality and to spread tourists around the country. ITB has assists the Regional promotion offices through monthly meetings where mutual projects in domestic marketing are managed. These meetings are a venue for communication and interaction. Promote Iceland has a representative at the meetings to ensure that domestic and international marketing are in harmony. Promote Iceland also has an active cooperation with the Regional promotion offices regarding international marketing with meetings, joint participation in travel ehibitions and more. The Icelandic Travel Industry Association, SAF is the mutual venue of Icelandic companies operating in the field of travel and tourism. Its purpose is to promote and protect the common interest of the membership and to work towards improved proficiency of both staff and management. The Association will work towards the growth and development of the tourism industry with a professional attitude where emphasis is on quality and environmental concern. SAF Icelandic Travel Industry Association, SAF and the Icelandic Tourism association represent the industry and have an active dialogue with ITB, Promote Iceland and the ministries. ITB and Promote Iceland cooperate through project integration regarding both marketing and research, following the national tourism policy and working towards fulfilling its aims. Innovation Centre Iceland has an active dialogue with the tourism industry and supports individual clusters and projects throughout the country. 4
5 1.4. Eisting national/regional specific legislation on tourism The national legislation of tourism is The Tourism Administration Act no. 73/2005, in it, the duties of the Icelandic Tourist Board are defined, as well as e.g. the framework on licencing issues for tour operators and travel agencies ( Licences & Legislation The registration and issuance of operation licenses are amongst the tasks of the Icelandic Tourist Board. A license must be applied for in order to operate a travel agency or tour operation. A registration certificate is required for the running of booking services and information centres. The Icelandic Tourist board also plays an active role in developing the regulatory framework for tourism through participation in legislation and various interactions with legislators and other governmental agencies. The Promote Iceland agency operates according to the Act on Promote Iceland no. 38/2010 ( The Tourist Site Protection Fund was established in 2011 (Act no. 75/2011) to promote the development, maintenance and protection of tourism attractions anywhere in Iceland where they are under public ownership or supervision. SECTION 2 - MEMBER STATE ECONOMIC DATA AND TOURISM BUDGETS This section is intended to provide an overview of the key statistical information about the general tourism economic environment of the Member States. Please refer to anne Statistics 5
6 SECTION 3 NATIONAL TOURISM POLICY AND STRATEGIES This section aims at collecting information on the Member States general strategic vision as well as the specific objectives of their tourism polcies Key mission, main medium and long-term objectives and the main targets of your national tourism policy. The main objectives of the Icelandic Tourism Policy for are: to increase the profitability of the sector; to engage in systematic development of tourist destinations, effective product development, and promotion and advertising work so as to create the opportunity to lengthen the tourist season, reduce seasonal fluctuations, and contribute to better distribution of tourists throughout the country; to enhance quality, professionalism, safety, and environment-awareness in the tourism sector; to define and maintain Iceland s uniqueness as a tourist destination, in part through effective analysis and research. Iceland s nature is a valuable and sensitive resource. The development of tourism infrastructure is intended to promote the development of sustainable tourism. The Tourist Site Protection Fund was established in 2011 (Act no. 2075/2011) to promote the development, maintenance and protection of tourism attractions under public ownership and supervision. It also aims to ensure tourist safety, protect nature and distribute guests throughout the country. The quality and environmental system VAKINN s main aims are to strengthen quality and safety in tourism by means of guidance and support and develop a sense of social responsibility. The system also addresses professional skills, an area in which further strategic work has to be accomplished in view of the industry s rapid growth. Product development projects will be based on clusters and on strategies reflecting the uniqueness of individual areas. Innovation Centre Iceland has promoted the development of clusters throughout Iceland in collaboration with the Icelandic Tourist Board. Regional support systems have been strengthened and work is underway in simplifying, co-ordinating and integrating efforts in different regions. The Tourism Strategy calls for new options for public promotional work, and for an increase in professional collaboration between public entities in the fields of product development, promotion and advertising. The Strategy also calls for an increased emphasis on analysis, research and forecasting. Strategic work by the Icelandic Tourist Board on research policies for tourism is on-going. However, further efforts are required to ensure the secure provision of statistics, analysis and forecasting for the tourism industry, at both national and local levels. 6
7 3.2. Multi-annual national tourism strategy specific / relevant for tourism See 3.1. and 4. TOURISM CHALLENGES, MEASURES AND INITIATIVES This section aims at collecting information on the challenges the Member states and the tourism industry has to deal with as well as the measures put in place to tackle them Key challenges for the tourism sector CHALLENGES Diversification of the tourism offer Protection of the cultural heritage Protection of the natural heritage ICT and innovation Connectivity and transport Employment in tourism Improving education and skills in tourism Combatting seasonality Demographic changes Improving accessibility of tourism Improving socio-economic data in tourism Economic crisis and recovery Improving the sustainability of tourism offer Combatting climate change Improving the quality of tourism offer Developing responsible tourism practices Competition against other destinations Administrative / regulatory burden, bureaucracy Other, please specify IMPORTANCE / PRIORITY HIGH MEDIUM LOW 7
8 4.2. Main measures aimed at tackling the key high-priority challenges indicated above Protection of the natural heritage: Mostly done through the Tourism Site Protection Fund, through the quality and environmental assessment system Vakinn and the development of protected sites and national parks. Connectivity and transport: The web cooperates with the ITB and several other stakeholders to promote safe travel in Icelandic nature. Transport authorities are working on providing winter service on all main roads across the country, 7 days a week. ITB and the Icelandic Road and Costal Administration have started a dialogue on how to strengthen the voice of the tourism industry in national policy making regarding transport. Improving socio-economic data in tourism: Icelandic authorities recently signed an agreement with Iceland Statistics about overseeing national TSA accounts. In 2013 ITB conducted a requirements analysis on with the aim of mapping and prioritising the need of tourism research in Iceland. Using those results, ITB is now financing carrying capacity research (natural and social) at various destinations throughout Iceland. In addition a new research on social carrying capacity in Icelandic communities is being prepared. The lack of regional data, both social and economic, will hopefully be addressed in the near future. Improving education and skills in tourism: ITB just recently signed a contract with KPMG to analyse and map the offer of tourism education/training available in Iceland. The main objective is to get a clear picture of the tourism education offer, identify the major obstacles and create a necessary basis to increase the tourism education supply. ITB also is a participant in the Leonardo da Vinci project ETHIT, which has the main objective to contribute to the better understanding and improvement of the non-formal and informal learning processes in the field of vocational and continuing training in the field of tourism in Europe. Combatting seasonality: The marketing campaign Inspired by Iceland (coordinated by Promote Iceland) seeks to increase the economic impact of off-season tourism. The Regional promotion offices in cooperation with ITB are working together on domestic marketing projects with the aim of encouraging Icelanders to travel in the shoulder and winter seasons. Improving the sustainability of the tourism offer, improving the quality of tourism offer and developing responsible tourism practises: The quality and environmental assessment system Vakinn plays a big role here. The system was developed by the Icelandic Tourist Board in close cooperation with the Icelandic Travel Industry Association, the Icelandic Tourism Association and Innovation Centre Iceland. ITB has also hosted conferences and symposiums on these subjects. Simplification of the regulatory environment. A committee, with the main objective of analysing the regulatory framework for tourism, was appointed by the Ministry of Industry and Innovation in The committee was also asked to make suggestions on how to simplify and improve that framework. The committee published its findings in spring 2014 and these findings are now being eamined by the ministries concerned. 8
9 4.3. Legislative measures if any -at EU level related to the above mentioned challenges Protection of the natural heritage: NA Connectivity and transport: Act on transport of passengers and cargo on land no. 73/2001. EEA-Agreement: Anne XIII. Directive 1107/70, 74/561/EBE, Regulation 3164/76, directive 84/647/EBE, Regulation 4060/89, directive 92/106/EBE, Regulation 881/92, 3912/92 and 3118/93. A bill on transport of passenger on land will be submitted to the Parliament and it will implement the EU directive on public transport. Act on Control of ships no. 47/2003 EEA-Agreement: Anne VIII. Directive 97/70/EB, 98/18/EB og 1999/35/EB. Act on Maritime no. 34/1985. EEA-Agreement: Anne XIII. Directive 2009/20/EB Act on Aviation no. 60/1998. EEA-Agreement: Anne II. Directive 80/51/EBE, 80/1266/EBE and 89/629/EBE and Anne XIII. Regulation 2407/92 (EBE), 2408/92 (EBE) og 2027/97 (EB), Directive 91/670/EBE. Act on traffic no. 50/1987. EEA-Agreement: IX. viðauki. EEA-Agreement: Anne XIII. Directive 91/439/EBE and Anne II. Directive 92/61/EBE. EEA- Agreement: Anne IX. Directive 73/239/EBE. EEA- Agreement: Anne II. Directive 2002/24/EB, Anne XIII. Directive 91/671/EBE. EEA- Agreement: Anne XIII. Directive 3820/85 and 3821/85, Directive 88/599/EBE, 2002/15/EB og 91/671/EBE. EEA- Agreement: Anne IX. Directive 72/166/EBE, 84/5/EBE, 88/357/EBE, 90/232/EBE og 2000/26/EB. Regulation on Inspection of vehicles no. 8/2009, Regulation on Vehicle insurance no. 424/2008, Reglulation on the use of safety and protective equipment in vehicles no. 348/2007, Regulation on types of vehicles and equipment no. 822/2004, Regulation on registration of vehicles no. 751/2003, Reglulation on time of drivind and rest period, the use of recording equipment and controls no. 605/2010. EU directives have been implemented. Regulation on notification of aircraft accidents, serious incidents and incidents no. 53/2006, reglulation on compensation and assistance to passengers in flight is denied boarding and the flight is canceled, delayed or accelerated, or for lost luggage or its damage no. 1048/2012, regulation on the rights of disabled persons and persons with reduced mobility when traveling by air no. 475/2008. EU directives have been implemented. Improving education and skills in tourism: NA Combatting seasonality: NA Improving socio-economic data in tourism: Law on Statistics Iceland and official statistics no. 163/2007. Statistics Iceland is the centre for official statistics in iceland and collects, processes and disseminates data on the economy and society. Statistics Iceland is divided into four divisions-economic statistics, social statistics, business statistics and resources. Statistics Iceland operates in accordance with the European Statistics Code of Pratice. The European Statistical System is a partnership between the Community statistical authority and the national statistical institutes. EEA and EFTA countries are also in the partnership. 9
10 Improving the sustainability of tourism offer: NA Improving the quality of tourism offer: NA Developing responsible tourism practices: NA Other: Act on package tours nr. 80/1994. Directive 90/314/EBE on package travel. Tourism Administration Act no. 73/2005. Directive 90/314/EBE concerning the provision for the purposes of operations requiring security Measures implemented to increase tourism flows from other EU Member States and from third countries. Inspired by Iceland campaigns Over the past 4 years Promote Iceland has been running campaigns across key European markets and North America under the brand Inspired by Iceland. To begin with the initiative was launched to help to combat negative opinion surrounding the eruption of Eyjafjallajökull in April 2010, then subsequently to promote Iceland as a first choice as winter travel destination. Today all official marketing initiative for Icelandic tourism in all markets is under the umbrella of Inspired by Iceland. The campaigns are integrated campaigns and have combined traditional advertising, digital media, traditional & digital PR including broadcast, print and online, social media and eperiential activation. The focus has been on an integrated marketing campaign where all marketing tools of Promote Iceland have also been used to get the message and the campaign across How promotional measures implemented make use of / capitalise on the promotional campaigns carried out by the Commission (i.e. Ready for Europe, EDEN, low-season tourism campaigns, etc.) Individual EDEN destinations have made use of their appointment as such, however, the EDEN project is not well enough recognised for such measures to be significantly advantageous. 10
11 4.6. Measures /actions which contribute to maimising the potential of national policies for developing tourism (e.g. ensuring that tourism interests are taken into account in the development of other policies which may have impact on tourism) Awareness is increasing of the necessity of adapting a holistic approach towards policy making. Cooperation between different governing bodies is increasing; however definite, legislative measures have not yet been implemented. At regional level all residents are able give comments and have an input on both general planning and land-use planning. The comments are then looked into by local authorities and acted upon if possible before the plan is approved. At a national level, planning authorities and other public organisations strive to involve stakeholders in the planning process. This is mostly done by them having representatives in various committees and work groups connected to the subject Measures/actions which contribute to maimising the potential of EU Financial Instruments for developing tourism (e.g. information on main objectives, financing opportunities, training courses, etc.). n/a 4.8 EU programmes most frequently and for what purposes of tourism development Iceland has participated in the EDEN project (European Destination of Ecellence) since Two destinations have been nominated as EDEN destinations; the town of Stykkishólmur and Westfjords region. The main purpose is to draw attention to less visited areas and to get the destinations themselves to further develop their tourism strategy in a sustainable way. ITB participates in ETHIT project. The main goal of ETHIT is to contribute to the better understanding and improvement of the non-formal and informal learning processes in the field of vocational and continuing training in the field of tourism in Europe. 11
12 Sustainable and responsible tourism, whether talking about economic, social or environmental sustainability, is a broad concept and may be interpreted in various ways depending on the attributes of a Member State or region. The following questions focus on sustainability and responsibility in tourism as described in the 2007 Commission Communication 2 on an agenda for sustainable and competitive European tourism Sustainable destination: What support is given to strengthen destination management at the national /regional/local level (e.g. supportive policy environment, knowledge networks, training programmes, technological support tools, financial support, promotional activities, etc.)? The Tourist Site Protection Fund was established in 2011 to promote the development, maintenance and protection of tourism attractions under public ownership and supervision. It also aims to ensure tourist safety, protect nature and distribute guests throughout the country. Innovation Iceland offer support (consultancy and financial support) to companies and clusters developing tourism destinations. Special Growth Contracts are contracts between the state and regional associations of local authorities in each region. They provide financial support to various projects connected to tourism and innovation. The contracts objectives are based on the Icelandic Tourism Policy and the National Regional Development Plan. The regional associations of local authorities also have specialised staff who offer consultancy to companies, associations and individuals (usually free of charge) regarding general economic and cultural development. VAKINN, the quality and environmental system provides support to both individual actors within the sector as well as regional entities (e.g. the Vatnajökull National Park). The system is significantly based on various supportive programs, through guidance and training Sustainable businesses: What support is given to strengthen the sustainability and competitiveness of tourism businesses (e.g. supportive policy environment, knowledge networks, orientation of business support services to sustainability, training, financial incentives, promotional activities, etc.)? Vakinn (see 4.11) See /inde_en.htm 12
13 4.11. Responsible tourism: What support is given to tourists and the tourism industry to promote their responsible practices and choices (e.g. awareness raising, sustainability in education, national marketing and media campaigns, promotion of certification schemes, etc.)? The aim of VAKINN quality and environmental assessment system is to strengthen quality, safety and environmental awareness in Icelandic tourism as well as developing a sense of social responsibility. The quality system is divided in to two categories; a star grading for accommodation and quality assessment for tourism services other than accommodation. The classification for tourism services other than accommodation is based on two types of criteria; general criteria and specific criteria for each activity. To be certified the companies must meet 70% of the general criteria. However there are minimum requirements that everyone must fulfil. The remainder falls into the other three levels (good, better, best). Furthermore, all holders of a VAKINN certification must meet 100% of the specific criteria relevant to the categories within which they operate. VAKINN accommodation criteria take their bearings from pre-eisting criteria, combined with additional and amended standards. New accommodation categories also require a completely new set of criteria. In this way more parties can apply for membership of and participate in VAKINN. This stimulates diversity and supports even better quality within the Icelandic tourist industry, where demands for improved performance are constantly on the increase. The environmental criteria are used to assess a company s situation with regard to environmental issues and its relationship to the community. As a follow-up to the assessment, the company receives Bronze, Silver or Gold. Companies which already hold ISO 14001, the Swan or Earth Check receive Gold without assessment, on condition that they fulfil a few additional requirements, f.e. regarding social responsibility. Participation in Vakinn is optional Most significant planned / future tourism measures (legislative or non-legislative) which envisage to impact travellers visiting the country from other Member States or from outside Europe. The main challenge in the coming seasons is to ensure that tourist sites are ready to handle the growing number of tourists in Iceland. The government is therefore looking into ways to better finance the necessary infrastructure on tourist sites. 13
14 5. ADDITIONAL INFORMATION 5.1. Three best practices of tourism measures implemented at national, regional or local level N/A 5.2. What policy developments / actions / activities would you epect from the Commission's tourism team that would serve better (than the current ones) the EU Member States and the industry More coordination with entities such as the ETC on project planning and promotion; better utilisation of that venue for discussions and coordination. 14
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