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3. State incentives for specific industries

3.2. Tourist industry

A) Sustainable Tourism Strategy for Spain 2030

Against the backdrop of the European Union and the corresponding economic and social convergence, and in a competitive environment characterized by the globalization of supply and demand and business internationalization, the Spanish tourist industry is seeking to continue to strengthen its leadership position based on quality.

Following the approval at the time of the Spanish Tourism Plan Horizon 2020, which defined the strategy for preparing and adapting the Spanish tourist industry and attaining a balanced increase in the social and economic benefits of tourism.

The Sustainable Tourism Strategy for Spain 2030 is currently being processed, its main objective being to redefine the tourist development model so as to redirect the foundation of Spanish tourism toward a model of sustained and sustainable growth, enabling Spain to maintain its global leadership position.

In particular, this new tourism model is based on enhancing competitive capacity and profitability, protecting the natural and cultural values of the different tourist destinations and on the equitable distribution of the benefits and burdens of the tourism activity.

To this end, the Sustainable Tourism Strategy for Spain 2030 is instrumented around 5 strategic areas:

  1. Collaborative governance, setting up participation areas for all public and private actors on the tourism stage, also increasing Spanish influence on international organizations, with the following lines of action:
    • Bolstering existing governance tools, and authorizing new mechanisms that enable management among the different levels of the public authorities, the private sector and social agents.
    • Developing territorial policy, through agreements between the central government and the autonomous community governments, as well as forums for meetings between the different public authorities.
    • Increasing Spain’s international influence through tourism, within the European Union, enabling it to lead the agenda, debates and legislative output, as well as in international bodies.
  2. Sustainable growth, aiming to boost a balanced development of the industry throughout Spain, to foster the industry’s sustainability, to diversify demand and to reduce the negative externalities of tourism, through the following actions:
    • Driving the balanced development of tourism in the territory, taking advantage of the country’s diversity and strengthening inland tourism, paying special attention to areas at risk of depopulation.
    • Promoting sustainability as a brand value of Spanish tourism, guiding tourism activity toward the circular economy, environmental protection and clean energy use.
    • Sustaining demand by combining initiatives that enable demand to be diversified in new markets or segments in traditional markets, and developing new tourism products and digitalizing the sector. Reducing the negative externalities of tourism activity through formulas that balance society’s common interest and the interests of companies and destinations.
  3. Competitive transformation of the industry, emphasizing public-private forms of partnership, especially to foster digital transformation and the use of technological capacities, through such lines of action as:
    • Strengthening the public-private ecosystem supplying – within the scope of operations of each public or private agent – knowledge, programs and resources in this regard.
    • Deploying a digital strategy for the tourism industry, specially targeted at SMEs and destinations, with a view to adapting to the requirements of connected tourism and increasing the efficiency of local public management.
    • Developing the public standards for the digital transformation, establishing a common framework acceptable to public and private players.
    • Fostering the adaptation of existing regulations to the new tourism environment, through the joint work of international, national, autonomous community or local bodies and institutions.
  4. Acting on the tourist area, enterprises and persons, protecting heritage and making progress on the construction of infrastructures and on the digitalization of all territories, while enhancing the quality and competitiveness of enterprises in the tourist industry (most of which are SMEs) and of jobs in tourism, based on actions consisting of:
    • Equipping the territory with new capabilities, infrastructure and management resources, thereby enabling a solid and diverse value proposition to be offered throughout the territory.
    • Boosting the quality of Spanish tourism, focusing efforts on improving competitive capacity, productivity, profitability, innovation, inclusivity and sustainability.
    • Promoting higher quality tourism jobs that make it possible, through a suitable certification or qualification, to offer an environment of trust to traders and workers.
  5. Working on the tourist product, marketing and intelligence, with a view to fostering quality tourism, the diversification of demand and the opening of new markets, with the following lines of action:
    • Enhancing tourism promotion strategies differentiated according to type of source market, enabling Spain to maintain its position in its target markets, while increasing penetration into emerging long-distance markets.
    • Developing a unique, dynamic and competitive value proposition, focused on serving new niches of demand by promoting products and destinations that generate added value and differentiation.
    • Developing a tourism intelligence data-based model, enabling comprehensive management in decision-making through the incorporation of new data sources.
    • Reinforcing the digital marketing strategy that optimizes the impact of investment in advertising.

B) Tourism industry promotion plan: toward a safe and sustainable tourism

In the current landscape, it is important to note the “Tourism industry promotion plan: toward a safe and sustainable tourism”, approved by the Spanish government in June 2020 as a measure to revitalize the industry following the COVID-19 crisis.

This plan has a total financial allocation of €4.26 billion distributed over the 2020-2024 time horizon and is basically structured around 5 major pillars, namely:

  1. Restoring trust in the destination: for a 360º safe destination

    To this end, the plan establishes measures consisting of (i) guidelines on how to reduce infection in the tourism industry; (ii) adapting public transportation as a safe mode of transportation; (iii) the “Safe Tourism” logo, to highlight establishments that comply with the guidelines; and (iv) “safe tourism corridor” programs regarding the lifting of border and travel restrictions.

  2. Measures to revitalize the industry

    The uncertainty regarding the duration of the pandemic and the debt that tourism companies have been forced to take on have spurred the implementation of new measures to revitalize the industry, including employment measures, particularly temporary layoff procedures (“ERTEs”) or certain training, skills development and mentoring programs, for workers in the tourism industry, in subjects like safety, hygiene and vocational retraining (“SCTE Safe Destination” Tourism Host Program, Tourism training program with FUNDAE, Specific plan for retraining and updating of occupational qualifications relating to hospitality and tourism, etc.).

    The plan also establishes various business liquidity and solvency measures aimed at helping companies meet their cash needs, such as:

    • ICO guarantee lines.- Royal Decree-Law 8/2020, of March 17, 2020, approved a State Guarantee Line with an allocation of €10 billion aimed at facilitating continued employment and mitigating the economic effects from the health crisis. Against this backdrop, the plan has established a preferential sub-tranche aimed at the tourism industry in the amount of €2.5 billion.
    • Moratorium on the payment of mortgage principal on assets in the tourism industry.- The plan establishes a mechanism that allows for a moratorium of up to 12 months to be granted in financial transactions secured by a mortgage.
    • Moratoriums on lease installments for buses used for occasional transport services and Post-COVID-19 commercial incentives to airlines.
  3. Improving tourism destination competitiveness

    The tourism industry needs to adapt to global trends, particularly to digitalization and sustainability, which are changing the traveler profile, how trips are planned and booked, as well as how they are enjoyed and shared. Against this backdrop, the following measures are introduced:

    • State Financial Fund for Tourism Competiveness, for funding projects aimed at improving the competitiveness of tourism companies and accelerating their transformation to a more sustainable and digital model.
    • Funding for projects for digitalization, innovation and internationalization in the tourism industry.
    • Tourism Sustainability at Destination Plan Program, with a total budget set at €30,000,000 until 2022, intended for national, autonomous community and local levels of tourism management and aimed at pioneering and rural destinations or inland destinations.
    • Strengthening the network of intelligent tourism destinations, based on technological infrastructure and which ensure sustainable development and with a total budget of €75,000,000 for the 2020-2023 period.
    • “Fair, labor responsible hotels” program.
  4. Improving the Comprehensive Knowledge Model

    The current production and information collection model should be strengthened and the benefits offered by the digital transformation harnessed, committing to a new enhanced tourism information and knowledge system by (i) analyzing international demand by enhancing market information; (ii) strengthening the Tourism Intelligence System for analyzing national supply and demand; or (iii) creating a tourism data viewer.

  5. Marketing and promotion

    As key parameters for re-positioning Spain as a safe and sustainable destination, both nationally and internationally, the following measures are envisaged in this area:

    • TURESPAÑA 2020-2024 Marketing Plan, for analyzing Spain’s situation and image as a destination based on a sociological research study in the main European markets and distant source markets, endowed with a budget of €33,300,000 for the 2020-2024 period.
    • Improving promotion and marketing tools, based on the design of a new Spain tourism portal with a new identity, including practical content that enables users to organize their trip, with a budget of €4,800,000 between 2020 and 2021.