MEMBER STATES' ANNUAL TOURISM REPORTING TEMPLATE

MEMBER STATES' ANNUAL TOURISM REPORTING TEMPLATE 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. 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. Please provide a short description of the administrative and territorial organisation of public bodies responsible for tourism, indicating the relationship and cooperation between national, regional and local bodies of the core responsibilities and competences of each department (Max. 3000 characters) The Secretary of State for Tourism is under the aegis of the Ministry of Economy. Turismo de Portugal I.P. is the National Tourism Authority. It is responsible for implementing tourism policy at national level and reports to the Secretary of State for Tourism. Turismo de Portugal oversees the promotion, development and sustainability of tourism activities, operates a network of 12 hospitality and tourism schools, and coordinates the activities of the 17 tourism promotion teams in source markets. Turismo de Portugal's main goals are to: enhance and foster tourism infrastructure; develop human resources training; support investment in the tourism sector; coordinate domestic and international promotion of Portugal; and regulate and inspect gambling activity (on and off line). 1 http://eurlex.europa.eu/notice.do?val=123070%3acs&lang=en&list=123070%3acs%2c&pos=1&page=1&nbl= 1&pgs=10&hwords= 1

At regional level, there are now just five Regional Tourism Bodies (ERT). These are public-law corporate bodies with a specific territorial scope that act as destination management organisations (DMOs) with financial and administrative autonomy. They are responsible for domestic marketing and product development in close cooperation with Turismo de Portugal with whom they have a contractual relationship. In addition to these bodies, there are two Regional Directorates for Tourism in the autonomous regions of Madeira and the Azores. There are also seven Regional Tourism Promotion Agencies (ARPTs) which are non-profit, private associations which bring together the ERTs and private companies. They engage in international marketing in coordination with Turismo de Portugal, with whom they have a contractual relationship. Turismo de Portugal and its partners ensure that marketing plans and campaigns supported by public and private funding are in alignment with the national strategy. 1.2. Please provide an organisation chart reflecting the above described administrative and territorial organisation. 1.3. Please list and describe briefly the 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. (Max. 1500 characters) At regional level, the last administrative reform concentrated former eleven regional bodies into only five Regional Tourism Bodies (ERTs). These are public law corporate bodies with a specific territorial scope that act as destination management organisations (DMOs) with financial and administrative autonomy, with competences of promotion in the domestic market and product development in close cooperating with Turismo de Portugal I.P. Besides these five bodies (ERTs), there are two Regional Directorates for Tourism in the autonomous regions of Madeira and the Azores, with political and administrative autonomy. 2

International promotion is under the government s responsibility, through Turismo de Portugal, which develops and implements international promotional initiatives in coordination with seven Regional Tourism Promotion Agencies (ARPTs). These ARPTs are non-profit, private-law associations constituted by private companies and ERTs. They have formal contractual relationships with Turismo de Portugal for developing promotional activities in international markets. Turismo de Portugal and its partners ensure that marketing (on and off line) plans and campaigns supported by public and private funding are aligned with the national strategy. As a social partner, there is the Portuguese Tourism Confederation (CTP), an umbrella organization for tourism business associations. 1.4. What is the existing national/regional specific legislation on tourism? (Max. 500 characters) Portugal has a long tradition on Tourism Legislation, supporting the government in defining a regulatory framework and carrying out national and EU policy. Legislated activities include intervention in territorial management, licensing accommodation, facilities and tourism attractions, registering and classifying accommodation facilities, travel agencies and entertainment companies. The full list of tourism legislation is available here in the following link m(in PT only): http://www.turismodeportugal.pt/portugu%c3%aas/conhecimento/legislacao/pages/legislacao.asp xtourism Policy http://www.turismodeportugal.pt/portugu%c3%aas/conhecimento/legislacao/politicadeturismo/pa ges/politicadeturismo.aspx Planning and Territorial Management http://www.turismodeportugal.pt/portugu%c3%aas/conhecimento/legislacao/planeamentoeorden amentodoterritorio/pages/planeamentoeordenamentodoterrit%c3%b3rio.aspx Licensing and classification http://www.turismodeportugal.pt/portugu%c3%8as/conhecimento/legislacao/licenciamen TOEUTILIDADETURISTICA/Pages/LicenciementoeUtilidadeTur%C3%ADstica.aspx Given its relevance to tourism policies, we would like to highlight the one related to Short-Term Accommodation Rental Services. Within the sharing economy new services, Short-Term Accommodation Rental Services has been the most visible and important one. Bearing this in mind, the Portuguese government approved during 2015 a new legislation (Dec-Law n.º 63/2015, 23 de April) that will monitor and tax the growing number of sharing accommodation offer and that stipulates a minimum of service quality required to operate in the tourism area. This new law has very few requirements and limitations for companies and entrepreneurs to have access to local accommodation, but has a strong component regarding fiscal compliance meaning that it is our conviction that sharing economy is an activity that shouldn t be prohibited or limited but utterly be subject to rules and supervision, so to prevent this type of lease accommodation to turn into a clandestine activity. Investment http://www.turismodeportugal.pt/portugu%c3%aas/conhecimento/legislacao/investimento/pages/i nvestimento.aspx 3

Training and education Country: PORTUGAL http://www.turismodeportugal.pt/portugu%c3%aas/conhecimento/legislacao/formacao/pages/for ma%c3%a7%c3%a3olegisla%c3%a7%c3%a3o.aspx 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. Data marked with green is also collected by Eurostat. Data marked with orange is equally collected by the OECD. The data categories match the templates of these two organisations, therefore data reported to the Commission can be transferred / used when reporting to Eurostat and OECD and vice-versa. The statistical data provided in the tables below shall cover the year 2015 and, if available, 2016. The data collected through these sections will also feed into the future Virtual Tourism Observatory. Please use the Excel templates provided below in order to facilitate coherence and comparability of the data. Please note that you are only requested to fill in data that is available in your country. Please insert "N/A" for those that you are not able to provide. Member states annual tourism report 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 policies. 3.1. Please provide information in bullet points on the key mission, main medium and long-term objectives and the main targets of your national tourism policy. (Max. 1500 characters) Tourism Strategy 2027 Lead the Tourism of the Future To affirm tourism as a hub for economic, social and environmental development throughout the whole territory, positioning Portugal as one of the most competitive and sustainable tourist destinations in the world. 10 challenges for a 10 year strategy 1. PEOPLE - Promoting jobs, qualifying and valuing people and increasing income of tourism professionals 4

2. COHESION - Mitigate regional asymmetries 3. GROWTH IN VALUE - Growing more than competition in tourism receipts 4. SEASONALITY Reduce seasonality 5. ACCESSIBILITIES - Reinforcing accessibility to Portugal and promoting mobility within the territory 6. RESEARCH - Understand inbound markets and adapt public & business strategies to trends and changes in demand 7. INNOVATION - Stimulate innovation and entrepreneurship 8. SUSTAINABILITY - Ensure the preservation and sustainable economic valuation of cultural and natural heritage 9. SIMPLIFICATION - Simplify legislation and streamline administration 10. INVESTMENT - Guarantee financial resources and ensure their proper implementation The Tourism Strategy 2027 defines a direction, a vision and establishes priorities, identified in the following five strategic axes: Value the territory, allowing the use of the historical-cultural heritage and the preservation of its authenticity; urban regeneration; economic empowerment of the natural and rural heritage; development of tourism in the economy of the sea; structure of the tourism supply to better act in response to the demand; Stimulate the economy in terms of business competitiveness; simplification, reduction of bureaucracy and cutting red tape costs; attraction of investment; improving the quality of the supply; circular economy; entrepreneurship and innovation; Potentiate knowledge with measures that value the professions related to the Tourism Industry; training of human resources; continuous training of entrepreneurs and managers; dissemination of knowledge and information; and asserting Portugal as a smart destination; Generate networks and connectivity, through the reinforcement of air routes throughout the year and mobility in the territory; promotion of accessible tourism 'tourism for all', in an inclusive perspective; involvement of the society in the process of the development of the Tourism Industry; networking and joint promotion among the different sectors. Highlight Portugal, enhancing the country s notoriety in foreign markets as a destination to visit, invest, live, study and as a host of major events; positioning the internal tourism market as a factor of competitiveness and a boost to the national economy. Each one of these axes contains a set of action lines, which will be implemented with concrete actions, oriented to the short / medium term. 5

3.2. Do you have a multi-annual national tourism strategy specific / relevant for tourism in place? If yes, please describe in bullet points the main medium and long-term objectives of the strategy as well as who is responsible for its implementation. How is the implementation monitored and how often? (Max. 2000 characters) The national debate over the Strategy for Tourism 2027 (ET 27) began on May 24, 2015, intended to be a comprehensive and open public consultation process, aiming the construction of a shared strategy, involving national and international public and private stakeholders. A long term reference for Tourism, which will also frame the next Community support framework 2021-2027. The public discussion process involved more than 1,700 participants. Presented by the Government and Turismo de Portugal last March, during the Bolsa de Turismo de Lisboa, the Tourism Strategy 2027 (ET27) has the motto: Leading the Tourism of the future. In the strategic reference for the Industry of Tourism in Portugal for the next 10 years, the ET27 aims to establish tourism as a hub for economic, social and environmental development throughout the territory, positioning Portugal as one of the most competitive and sustainable tourism destinations in the world. The tourism of the future necessarily has to be economically, socially and environmentally sustainable. Having this in mind, the ET27 aims for the following goals: Economic Plan: in 10 years double the tourism revenues, from 12.7 billion euros in 2016 to 26 billion euros in 2027 and the overnights stays from 53.5 million to 80 million. Social Plan: greater dispersion of tourists throughout the whole year, reaching the lowest seasonality rates in 2027; increase the qualifications of tourism professionals by doubling the level of secondary and superior education; insure that Tourism generates a positive impact in the territories where the activity takes place, reaching an acceptance an positive perception of 90% of the population living in those regions Environment Plan: Ensure that more than 90% of tourism companies adopt energy and water efficiency measures and carry out environmental waste management actions. Leading the tourism of the future is to affirm Portugal as a destination: sustainable and with a cohesive territory; innovative and competitive; that values work and talent; to visit, invest, live and study; inclusive, open and technological; a specialised tourism hub and a reference in the production of goods and services for the tourism activity worldwide. 6

In charge of the management, implementation and monitoring of the ET27 are: Turismo de Portugal as the National Tourism Authority is responsible for: Coordinate and stimulate the ET27 and promote its implementation: Ensure the coherence between the investments in tourism and the EU financial instruments; Mobilize stakeholders and monitor the strategy Strategic Laboratories of Tourism (LET): Platforms of ongoing monitoring of the territory and markets for the implementation of projects and measures of the ET27. These platforms of active consultation and collaboration will also be a space of discussion of themes proposed by the partners, and will take place in different regions of the country, as well as in foreign markets (3 per year). National Tourism Forum: A space for reflection and debate about the Tourism Industry issues of the country and its regions; sharing of good practices: report of the implementation of the ET27; recommendations for short/medium term actions. 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. 4.1. Please identify the key challenges for the tourism sector in your country and indicate their importance /priority in the table below. CHALLENGES Diversification of the tourism offer Protection of the cultural heritage Protection of the natural heritage ICT and innovation, digitalisation Collaborative economy in the tourism sector Connectivity and transport Employment in tourism improving the perception of the sector as a career opportunity Improving education and skills in tourism Combatting seasonality Demographic changes Improving accessibility of tourism IMPORTANCE / PRIORITY HIGH MEDIUM LOW 7

Improving socio-economic data in tourism Economic crisis and recovery Improving investment in the sector 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, improvement of the business environment Other, please specify 4.2. Please describe briefly the main measures in your country aimed at tackling the key high-priority challenges indicated above. (Max. 2000 characters) Some examples of measures and programes that were implemented in the year of 2016: All For All - Program developed by Turismo de Portugal that aspires bringing to the whole country the concern to promote tourism for all. This program will act in the improvement of the offer, with funding opportunities to support accessibility in hotel and public spaces, but also through the dissemination of good practices of accessibility as well as the dissemination and promotion of accessible routes and establishments through the website visitportugal.com. Portuguese Trails - brand created by Turismo de Portugal to communicate to the international market the activities of Nature Tourism. In a first phase, it focuses on Cycling & Walking and has as a pilot region, the Algarve. Programme to promote air routes, in 2016, Portugal counted with 64 new air operations. Policies that will allow to generate tourism and attractiveness throughout the year, such as the 365 Algarve, an ambitious initiative that brings to that region a total of 1,022 cultural events outside the high season. 8

Revive Project - In view of the renovation and use of cultural and historical heritage buildings throughout the country, and its transformation into a national economic asset, the Government has launched the Revive project. This will open up State heritage properties to private investment to develop them as tourist attractions through public tendering. The aim of this initiative is to promote and facilitate profitability and preserve vacant public property, making it suitable for tourism-oriented economic activity, to generate wealth and jobs, enhance the attractiveness of regional destinations, devolve demand and develop various regions of the country. http://revive.turismodeportugal.pt/en +Heritage +Tourism Program - Part of the National Entrepreneurship Strategy, launched by the Portuguese Government, this program was created by Turismo de Portugal and Portugal Ventures, to develop projects in the tourism sector and in the valorization of the country s natural and cultural heritage. Tourism Creative Factory - A Startup acceleration program, aimed at students and alumni of the Schools of Turismo de Portugal. This program allows the participants to have an opportunity to test the project and the business model by conducting market tests with real clients. Travel BI - A platform that results from the investment of Turismo de Portugal in the development of a business intelligence system produced through various national and international information sources. The intention is to provide an easily accessible observatory of the activity, which will support the decision-making of public and private entities. 4.3. Please identify if any of the above mentioned challenges relate to any legislative measures at EU level, and how. (Max. 1000 characters) None of the above mentioned challenges are directly related to any recent legislative measures at EU level, but we follow with great interest the Commission s Strategy for the Single Market, specially the measures that aim the SMEs and start-ups growth. 4.4. Please identify and describe any measures implemented in your country to increase tourism flows from other EU Member States and from third countries. (Max. 1000 characters) The focus in digital marketing, the diversification of the tourism offer and the promotion of new and existing air routes have been proven to be a successful strategy in this field. 9

4.5. Please describe how promotional measures implemented in your country make use of / capitalise on the promotional campaigns carried out by the Commission (i.e. Ready for Europe, Europe. Wonder is all around, EDEN, low-season tourism campaigns, etc.). (Max. 1000 characters) In 2016 Portugal didn t make use of any promotional campaigns carried out by the Commission. 4.6. Please identify and describe any measures /actions in your country which contribute to maximising 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). (Max.1000 characters) Under the Government s SIMPLE programme, it was announced in 2016 and approved in 2017, the measure Tourist licenses + simple (Licenciamentos turísticos + simples). The measure aims to simplify the licensing of tourist enterprises, namely through the possibility of opening after completion of the work construction, reducing the number of entities involved in the process, reduction of documents and integrated process for location of tourist developments outside urban perimeters, including Territorial Management Instruments (IGT) and urban licensing. Under this measure, all online platforms like airbnb and booking, may only advertise and commercialize properties that are registered in the Tourism National Registration. The main objective of the SIMPLE programme is to ensure that Public Administration provides prompt and effective responses to the needs of people and businesses. It is an objective that underpins the whole legislative and administrative simplification process. 4.7. Please identify and describe any measures/actions in your country which contribute to maximising the potential of EU Financial Instruments for developing tourism (e.g. information on main objectives, financing opportunities, training courses, etc.). (Max. 1000 characters) Turismo de Portugal manages EU funds to develop tourism. In order to foster competitiveness and internationalisation the Programme Portugal 2020 has 3 main support areas that are transversal to SMEs and training: Incentives for innovation & productivity Incentives for qualified and creative entrepreneurship Incentives for SMEs qualification JESSICA - Joint European Support for Sustainable Investment in City Areas is an initiative of the European Commission developed in co-operation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). It supports sustainable urban development and regeneration through financial engineering mechanisms. Turismo de Portugal, I.P. manages the Urban Developement Fund (UDF - Tourism) for Lisboa and Algarve regions. Turismo de Portugal has undertaken the organization of informative workshops in cities across the country, to allow the participation of companies, specifically SMEs from the Tourism sector. 10

There is also available during the working days a service for entrepreneurs at headquarters, where they can receive information about funding. This service is also available by email request and phone. Additionally, information about European funding opportunities is disseminated thru Turismo de Portugal website and social networks. 4.8 Please describe shortly which EU programmes are used the most frequently and for what purposes of tourism development in your country. (Max. 1000 characters) The EU Structural Funds are an important source of funding for promoting investment in the tourism sector. As QREN 2007-2013 was an important programme for fostering investment, Portugal has set up Portugal 2020, using mainly European Regional Development Fund (ERDF) and European Social Fund (ESF) funds. In this context, SME, innovation & entrepreneurship programmes have been quite important for developing tourism in the country and to promote job creation. Under Portugal 2020, the Support System to Collective Actions is another important tool for building collective approaches to the challenges that tourism industry is currently facing and that require a public/private collective operations. We believe that, given the nature of tourism, these operations prove to be quite important for fostering competitiveness. Finally, the Administrative modernisation support system (SAMA) is one important tool for modernising the Tourism Administration and to develop adequate tools for supporting SMEs to address their challenges. 11

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. 4.9. 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.)? (Max. 1000 characters) Sustainable development is part of current and past concerns and priority strategies for tourism in Portugal and it s included in several legislative documents and studies with direct impact on the subject. As stated previously, sustainability is present overall the new Tourism Strategy that focus in Portugal a sustainable destination, where tourism development is based on the conservation of the country's natural and cultural heritage. 4.10. 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.)? (Max. 1000 characters) The key and support of a sustainable and flourishing tourism destination is, in great part, competitive and sustainable business. Having this in mind, Turismo de Portugal promotes training in various tourism areas in order to prepare young people for their first job and to enable professionals to increase skills, gain certificates and obtain qualifications. Turismo de Portugal oversees a national network of Hotel and Tourism Schools, and promoting research and advanced training in the field of tourism. Turismo de Portugal ensures the functioning of a national network of 12 Schools: http://escolas.turismodeportugal.pt/en The tourism companies have at their disposal many programs integrated in the National Entrepreneurship Strategy that could help their businesses as well as the entrepreneur s qualifications, ensuring a better support for the success of their companies. Regarding financial incentives, Turismo de Portugal manages some incentive and financing programs, some examples: Qualification and diversification of the tourism offer; Qualification and valorization of the tourism offer in the interior of the country; Creation of free WE-FI networks in historical centers; Accessible Tourism. In the main office of Turismo de Portugal, there is a department that provides business support and information to the entrepreneurs. This department is reachable by telephone or email. 2 http://ec.europa.eu/enterprise/sectors/tourism/documents/communications/commission-communication- 2007/index_en.htm 12

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.)? (Max. 1000 characters) Turismo de Portugal has, over the years, been conducting reports on sustainable development policies, to assess its impact in the tourism industry, and was the first Public Institute in Portugal to publish a Sustainability Report in 2008. Furthermore, Turismo de Portugal incentives the trade compliances or participation in internationally recognized certification programs and actions such as: Green Key Blue Flag ISO 14001 ISO 9001 Eco Hotel 3R6 EMAS II LIDERA LEED BREEAM HACCP ISO 18001 4.12. Please describe maximum three of the most significant planned / future tourism measures (legislative or non-legislative) which envisage to impact travellers visiting your country from other Member States or from outside Europe. (Max. 1000 characters) The measures that will be undertaken in light of the new tourism strategy 2017-2027, aiming an economically, socially and environmentally sustainable Tourism Industry 5. ADDITIONAL INFORMATION 5.1. Please describe maximum 3 best practices of tourism measures implemented at national, regional or local level (any type of activity). (Max. 2000 characters) The Government s approach to the Collaborative Economy in short-term accommodation rental, our entrepreneurship program and our promotional digital strategy. 13

5.2. Please describe, in a concise manner, in your view, what policy developments / actions / activities would you expect from the Commission's tourism team that would serve better (than the current ones) the EU Member States and the industry. (Max. 2000 characters) We welcome the continuous effort of the Commission tourism team to keep the MS updated, aware and alert to all policy and legislation relevant for the EU tourism Industry, especially in the matters such as visa policy, aviation package and funding opportunities. Regarding funding opportunities specific for the Tourism Industry, due to the relevance of the sector for the economy and the creation on employment, we believe that it justifies a greater political relevance and therefore a higher budget allocation. THANK YOU 14