Tourism industry sub-sectors COUNTRY REPORT BELGIUM

March 2014

1

GENERAL OVERVIEW Data and Figures Belgium’s economic performance has weakened. Real GDP remained flat and unemployment high. This limited the growth of many areas of travel and tourism in 2012, as many tourists and potential tourists remained careful about their expenditure1. The total contribution of the Belgian travel and tourism sector to the nation's GDP measured 5% in 2011 according to the World Travel and Tourism Council (WTTC). In addition, the sector accounted for 236,000 jobs, representing 5.1% of the country's total employment in 2011. Direct contribution of Belgium tourism to GDP

Source: WTTC, 2014

The Belgian travel and tourism sector in terms of volume declined in 2009, and grew at a comparatively slow pace during the overall review period (2008−2012). The country recorded an increase in the volume of domestic and international visitors, and consequently tourist expenditure rose. Despite an annual increase in tourist volumes, Belgium’s share of international tourists is low when compared to its European counterparts such as France and Germany. The government is keen to develop ecotourism and has undertaken initiatives to promote this. The country attracts a large number of medical tourists due to its advanced levels of medical technology, low treatment costs and healthcare infrastructure. In Belgium, tourism is an exclusive competency of the three regions Flanders, Wallonia and Brusselscapital Region. Flanders recorded in 2013 an all-time high of 9.6 million arrivals in tourism accommodation, implying a rise of 4.5% compared to 2012. These domestic and international visitors spent a total of 28.2 million overnight stays in Flanders’ cities of art, seaside towns and countryside. The budget for tourism amounts 1

WTTC (World Tourism Trade Council), Country Report: Belgium – Economic impact 2014

2

to 0.4% of the overall Flemish government budget. For tourism policy in Flemish Belgium there is a grant of EUR 61.6 million. Flanders has a number of strong and competitive intrinsic tourism assets, such as its cultural and historical heritage, multilingualism and gastronomy. Accessible Flanders (Toegankelijk Vlaanderen) is an accessibility databank listing local government offices, sports facilities, swimming pools, cultural centres and museums, hotels, campsites, hostels and so on that have been professionally assessed for all types of access needs. Tourism operations can have the assessment done free of charge. Walloon region is characterised by its nature, forests and lakes and has the Walloon region's richest concentration of tourism resources: spa and wellness, nature and outdoor activities, skiing and walking trails, mountain biking and cycling, gastronomy, heritage and historic towns in the nature reserve of Hautes Fagnes (the largest nature reserve in Belgium). The offering of tourist accommodation consisted of 97,003 beds in 2012, including all types of accommodation, of which camping represents 31% and hotels 23% of beds. In Wallonia, tourist attractions are located mainly in the green zone of Wallonia, namely in the provinces of Liège and Namur. The "nature" aspect is important for hikers and tourists however, the offer of tourist attractions is fragmented, and there are many small structures that offer individual experiences.

Main Tourism Offer  

  

Cultural tourism Business and congress/convention travel Health, spa and wellness tourism Adventure tourism Sea cruising

Labour Market Trends In 2003, Tourism and Travel Economy employment is estimated at 436,981 jobs or 10.8 per cent of total employment, which is 1 in every 9.2 jobs. By 2013, this should total 500,826 jobs, 12.1 per cent of total employment or 1 in every 8.2 jobs. The 150,468 Tourism Industry jobs account for 3.7 per cent of total employment in 2003 and are forecast at 168,566 jobs or 4.1 per cent of the total by 2013. Direct contribution of Belgian tourism to Employment

Source: WTTC, 2014

3

The tourist-recreation sector is important for the Flemish employment structure: the sector ranks in seventh place. Studies carried out by Toerisme Vlaanderen show a growth of 14% in paid employment in the tourism sector in the whole of Flanders in the last three years. In the Flemish coastal area, employment generated by the coastal tourism sector is even more important. Indeed, the coast of Flanders has always been a top tourist destination in Belgium. Consequently, the coastal tourism sector has never really had to put a great deal of effort into developing a coherent tourist policy or plan. This has caused fragmentation in the supply of services, and environmental aspects and architectural heritage have been somewhat ignored. The situation, however, has changed dramatically in the last few years. Competition has increased and tourists are demanding more professionalism and better quality from service providers. In addition, the number of tourists spending longer holidays on the Flemish coast has dropped; visitors increasingly prefer to stay for a short duration. Consequently, there is a demand for a more pro-active approach to take these developments into account.

Education and Training A very important aim for the Government is to balance supply and demand in the labour market (quantity and quality), with special attention to education, training and vocational guidance. Flanders has a long tradition in tourism education at a higher, professional level with degrees such as BSc Tourism and Recreation Management and BSc in Hotel Management at six different university colleges. Nevertheless, no coherent academic programme was available until 2004. In 2002 the regional government of Flanders decided to meet this need by the creation of an academic MSc tourism that allowed and obliged all stakeholders to work together. Two important objectives of the programme are: collaboration with the tourism industry without denying the research based vocation of the academic on one hand and the reconciliation of the economic approach and the focus on society and space on the other. Therefore the programme contains a cluster of management and marketing courses and a cluster of courses focussing on culture, mobility and destination that are compulsory for all students. The above implies that there is no academic Bachelor degree in tourism. The ‘direct’ intake consists of two different groups of students: non-academic, so called ‘professional’ students with a professional degree in Tourism and Recreation Management or Hotel Management on the one hand and BSc/MSc students from a restricted number of disciplines such as economics, sociology, geography, planning, law and physical education on the other.

Trends and Prospects With an increasing number of tourists looking for budget accommodation due to uncertain economic conditions, hotel groups are now focusing on providing mid-scale and affordable services. Hotel groups in Belgium are pursuing a strategy of growing both their luxury brands as well as economical mid-scale brands. For example, Accor Hotels provides premium services through Sofitel hotels, while mid-scale and budget services are offered through 42 Ibis hotels across Belgium. The growth of e-commerce is making it essential for travel agents and tour operators to utilize IT applications to arrange travel bookings. More are expected to do so over the forecast period. Increasing internet penetration rates is the reason for the strong growth of online travel bookings. According to Internet World Stats data from June 2012, there were 8.5 million internet users in Belgium, 81.3% of the total population.

4

The expectation is that most travel and tourism categories will see modest growth over the forecast period. However, it is anticipated that Belgian travellers will remain cautious about their spending, and when selecting travel products and services. This is because the economic situation might remain shaky, and there is uncertainty surrounding the threat of a new recession. Spending cuts and higher taxes might be necessary measures for the Belgian government, in order to secure the financial system. This could limit the spending power of Belgians and the growth potential of most travel and tourism categories. In Flanders, trends and strategies for next years in tourism sector are: capitalising on the medieval cities of art, focusing on those target markets with the highest tourism return (i.e. our immediate neighbouring countries), proactively approaching markets with a promising tourism potential (China, India etc.), consolidating the image of Flanders as a holiday destination in the home country, positioning Flanders on the basis of innovative responses to new trends in society. Very important prospect is to develop the tourism product in line with a market-oriented, high-quality and sustainable approach in order to increase both tourist satisfaction and tourist numbers. Business tourism, a key market for Belgium as it accounts for a third of in general inbound visitors, moved strongly backwards. Business arrivals declined sharply in 2009 compared to 2008. Due to the economic downturn, corporate trips were reduced and companies urged employees to cut down on travel expenses. Leisure tourism fared better than business tourism, but as well declined significantly.

5

SUBSECTORS In the following tables we will sintethize some significant data and information about Adventure, Cultural and Blue tourism in Belgium.

ADVENTURE TOURISM IN SUMMARY Overview  Belgians are more interested in adventure holidays than the average European. In 2009, 35% said they were interested in an adventure holiday, in 2008 and 2007 the percentages were 32% and 24% respectively. The Walloons are slightly more (38%) interested in adventure holidays than the Flemish (32%).  The Belgian adventure tour operators’ market is very fragmented and controlled by a high number of niche operators. Many adventure tour operators in Belgium are committed to sustainable or ecotourism.  Recreational attractions, leisure and sports are essential for the Walloon tourism economy, both for day-trips in the most populated areas and also to meet the expectations of customers in rural areas which are heavily dependent on tourism.  Fitness is booming in Wallonia, mainly in the hotel services offer  Belgium has a conservation policy that has established several levels of environmentally protected areas. The 1973 Law on Nature Conservation instituted three main types of protected land: Nature Reserves, Forest Reserves and Nature Parks. At present there are about 500 of these registered.  Belgium may seem like an unlikely walking destination. The coastal plain in the northwest consisting largely of dunes which stretch to the north sea coast; the central plateau, which consists of waterways, thickly wooded valleys, gorges and caves. The southern region is best for walking: an area of plunging river valleys, thick forest and woodland which shelters most of Belgium’s wildlife. Here there are many forest trails and parks.  The main adventure activities in Belgium besides walking are cycling and kayaking. The country’s generally rolling topography make it popular with road cyclists, though mountain bikers. Plenty of places to go kayaking and rafting can be found on the rivers of Ourthe, Ambleve (especially) and Lesse.

Main services and products  Biking and mountain biking  Skiing  Walking trails  Kayaking Trend and prospects Belgium has some areas of exceptional natural beauty which are well worth leaving the medieval cities for.

6

The government is keen to develop ecotourism and has undertaken initiatives to promote its countryside. The Belgium adventure tourism market is a growing market, where “global experience seekers” are interested in challenging experiences.

CULTURAL TOURISM IN SUMMARY Overview  As in all the countries in north-western Europe where beach holidays are very dependent on the weather, culture is for Belgium a substantial element of the tourism product, and represents one of the most important attractions in the framework of tourism marketing policy.  The Belgian cultural tourism market represents a growing market, where cultural holidays are the second most popular theme holiday and people are increasingly seeking educational experiences.  In Belgium cultural tourism demand has grown tremendously. A significant indicator of this trend is the growing number of visitors to recurring cultural events, such as the annual Open Monument Days and the biennial Europalia.

Main services and products  Museums  Festivals  Exhibitions  Historical events  Historical tours  Food and wine tours Trend and prospects Very important aim is to promote the Belgian cultural and historical assets, investing both in the promotion of Brussels’ tourism assets and in the city’s leverage function in the international promotion of Flanders. Cultural touristic attractions in several regions in Belgium suffer from a lack of visibility and promotion. Only central services can provide marketing and promotion of the touristic attractions. This includes the organizing of databases on all sectors of tourism, easily accessible for domestic public and public from abroad. Certification and giving quality labels is also important in the strategy of promotion. Local authorities have a key role in the organization of a tourism policy as well in the development and promotion of touristic products meeting the demands of the customers, taking into account the available local resources. Given the present demand for cultural holidays, it is not surprising that in the strategic marketing policy of the Belgian NTOs, heritage has been chosen as one of the promotion themes for both domestic and incoming tourism. Trends such as the growth of cultural holidays and city breaks, the demand for small-scale tourism products and the search for authenticity offer favourable opportunities for the future development of cultural tourism in Belgium. The point is to take advantage of this evolution in tourism demand by exploiting the strengths of the supply, especially in the art cities. In this regard, the traditional hospitality and language skills of the Belgians are invaluable when attracting the international tourist, who has become more widely travelled and demanding. 7

BLUE TOURISM IN SUMMARY Overview  It is striking that Belgian visitors to the coast give fewer reasons for having chosen the coast than do visitors to the art cities or the countryside: on average 1.8 reasons as opposed to 2.9 for both other destinations.  The most frequently given reason for choosing the coast is its proximity. In second place, but a fair way behind, comes past experience or habit. The reasons that Belgian visitors to the coast give are less differentiated and relate to how the coast as a destination differs from other destinations: the unique environment of sea and beach, the wide variety of activities and facilities and the nice holiday atmosphere.  Research on the economic impact of the sector is not very recent and it is important to bear in mind that estimates deviate from reality, as yacht registration systems are not fully developed in Belgium compared with other European countries.  The Nautibel study (2004) indicates that there is a shortage of staff with specific technical, administrative and management knowledge in the water recreation sector. Administrative expertise is essential since the administrative requirements are quite substantial and complicated in the Belgian water recreation sector.

Main services and products  Sea cruising  Coastal tourism Trend and prospects Even if employment in the recreational boating industry has increased over the past decade, the future growth potential of the sector is somewhat obscured by infrastructural shortcomings; most Flemish coastal marinas cannot fulfil demand as there is a shortage of berths. Consequently, many Belgian pleasure-boat owners keep their boats in marinas in neighbouring countries such as the Netherlands and France. Besides there is a demand for deeper waterways, higher bridges and larger piers and marinas due to the trend towards larger and more luxurious boats. On the other hand, the growth potential of the sector is demonstrated by the fact that in recent years the Flemish waterways have gradually became more attractive for Dutch, French and UK citizens. But obviously, more investments are needed to cope with the current capacity problem. Finally, the rental of recreational vessels has been on increase which offers economic and employment opportunities in the business of renting out recreational boats. Another growth opportunity for the sector is that tourists want more diverse activities, which increases the demand for a more diverse set of activities and combo-packages of recreation and tourism. One such example is offering a combination of bike-boat excursions or a boat trip together with a museum visit.

8

REFERENCES Jansen-Verbeke, M., Vandenbroucke, S., Tielen, S., (2005) Tourism in Brussels, Capital of the new Europe. International Journal of Tourism Research Vol. 7 pp 109-122. Munsters, W.; Richards, G. (2000), Cultural tourism in Europe: Belgium, Brussels. OECD (2012), Tourism and Trends policies 2012 Belgium, Paris. Toerisme vlaanderen (2012), Tourism in figures 2012: the Belgian market in Flanders UNWTO World Tourism Organization (2012), UNWTO World Tourism Barometer. 10 (November). Madrid. World Travel & Tourism Council (2010), Travel & Tourism economic impact 2010 - Belgium, London.

9