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ITB Berlin News Preview Edition

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6 NEWS Leading the

6 NEWS Leading the Way… Recently elected WTTC Chairman & BTW president - Dr. Michael Frenzel – a key figure in international tourism Elected as the new president of the Bundesverband der Deutschen Tourismuswirtschaft BTW (Federal Association of the German Tourism Industry) late in 2012, the Chairman of TUI Travel PLC and WTTC, Dr. Michael Frenzel will also lead the central association of the German Tourism Industry over the next years. By the same token, ITB Berlin is known as “the” global industry event, meaning Germany is again leading the way in being a “catalyst” between all trade professionals meeting on the show floor. We asked Dr Frenzel what special insight his work with TUI gives him in this respect… © TUI AG Dr Michael Frenzel Chairman, WTTC and TUI Travel PLC, President, BTW Dr Michael Frenzel was born in Leipzig on 2 March 1947. After matriculation, he studied law at Ruhr University in Bochum, and successfully completed his doctorate (Dr. jur.) whilst working at the University as a scientific assistant. Dr Frenzel joined the Westdeutsche Landesbank (WestLB), Düsseldorf in 1981, where he was promoted to various managerial positions: he became manager of the Industrial Holdings Department in 1983, and overall manager of WestLB’s Equity Holdings Division in 1985 - including holdings in banking, leasing and real estate. In 1988, he became a member of the Preussag AG (later TUI AG) executive board, being responsible for Trading and Logistics. He was promoted to chairman of the executive board in January 1994 and in 2007 he was appointed Chairman of TUI Travel PLC. Furthermore, on 20 April 2012 Dr Frenzel was appointed Chairman of the World Travel & Tourism Council (WTTC) Executive Committee. Anyone who works for one of the major international groups in the tourism industry is of course aware how important it is to have international connections and contacts. Again and again my work for TUI has proved to me that the many different types of media and the many different means of communication that are available nowadays can, at best, complement face-toface meetings and contacts with international partners. They cannot replace them. It is precisely such contacts and meetings that are facilitated, cultivated and extended at ITB Berlin, both at the exhibition centre itself and of course also at the large numbers of evening meetings and functions. Amid economic uncertainty in Europe, how important is the role of the tourism industry in driving business forward? In this sense, what should national governments be doing to help? The tourism industry is one of the most important growth industries. Last year was the first time that UNWTO – the World Tourism Organisation – recorded over a billion tourists worldwide. For many European countries that are currently going through tough economic times – e.g. Greece, Spain and Portugal – tourism is one of the most important sources of income. And looking beyond Europe’s borders, countries such as Egypt show how important it is to have tourism as a powerful economic sector that also impacts the political stability of a country. In Germany, too, tourism is a key element of the economy: a BTW study last year showed that 7% of the total workforce are employed in the German tourism industry and that tourism contributes 4.4% to Germany’s total GDP. This is why it is so important for governments in Germany, in other European countries and also outside Europe to understand the relevance of this sector, to avoid imposing industry-specific charges such as special taxes and to continue the reduction of bureaucratic obstacles. Here’s a simple example: A recent study has shown that simplified visa procedures could create 5 million additional jobs in the G20 states alone. Your association has been very outspoken about EU regulations concerning hotel and airport taxes and air transport issues. How do you view the present state of affairs, and what is your current stance in this respect? As before, we are confronted with a wide range of special charges. Bedding tax, aviation tax and also aviation emission trading will have a distorting effect on the competitive situation and will impose unnecessary additional expenses on prospective travellers. On the one hand, courts in Germany stopped the charging of bedding tax at least for business trips last year. The Bundesrat (the Upper House of Germany’s Parliament) spoke out for the abolition of aviation tax, and emission trading in aviation was suspended for intercontinental flights in response to immense international pressure. On the other hand, competition continues to be distorted at the expense of the tourism industry in Germany and in other European countries through the existence of bedding tax on private trips and through emission trading which is only applicable to flights within Europe. Yet despite the A recent study has shown that simplified visa procedures could create 5 million additional jobs in the G20 states alone available facts, the German government is still pushing ahead with its aviation tax policy. We will therefore continue to speak out for the abolition of such special charges. For the first time, ITB Berlin has its own “bespoke” international magazine – ITB Berlin News. What are your thoughts on this initiative? ITB Berlin is an international trade fair. Every March the entire world (of travelling) meets at the Berlin Exhibition Centre. So it is really great that this audience has international and target-group-specific media at their disposal and can follow everything that is happening at ITB Berlin. I am therefore very much looking forward to the first editions of the new International Magazine – ITB Berlin News. ITB BERLIN NEWS is a CLEVERDIS Publication. 65 avenue Jules Cantini - Tour Méditerranée – 13006 Marseille, France • Tel: + 33 442 77 46 00 • Fax: + 33 442 77 46 01 • SARL capitalised at e128,250• VAT FR 95413604471 • RCS Marseille 413 604 471 • info@cleverdis.com • www.cleverdis.com. 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If any of these risks or uncertainties materialises or any of these assumptions proves incorrect, actual results could differ materially from the expectations outlined in these statements. Cleverdis assumes no obligation and does not intend to update these forward-looking statements during the period of publication. Photo Credits and Copyright: All Rights Reserved. ITB BERLIN NEWS • Wednesday 27 th February 2013 www.itb-berlin-news.com

NEWS 7 German travel Association cites new records On the eve of ITB Berlin, DRV gives a positive recap… and outlook What is the current state of affairs of German TOs and TAs as we arrive at ITB Berlin 2013, and how is this reflected around Europe? We put the question to jürgen Büchy - President - Deutscher reiseVerband (German Travel Association)… In brief, both the results of last year and the forecast for 2013 are very good. In 2012, tour operators as well as travel agencies hit a new record in sales revenues. Compared to the year 2011 the sales revenues of tour operators rose by 3.5 to 4.5 percent to approx. 24.2 billion euros in 2012. This shows that in spite of all crises, tourism remains a highly dynamic growth market. The key figures concerning last year showed a continuing strong desire of Germans to travel. The percentage of holidaymakers using the services of tour operators rose by almost three percent in 2012, bringing the number of travels to a new record - about 40 million. Sales revenues of German travel agencies are expected to have reached a new record at the end of 2012 as well. As the number of travel agencies has reduced over the last years, the sales potential per agency has continuously grown since 2004. For tour operators, the travel agency continues to be the most important IN sPITE OF ALL CrIsEs, TOUrIsM rEMAINs A hIGhLy DyNAMIC GrOWTh MArkET. sales channel providing the advantage of personal and individual advice. What is your outlook for 2013? For this financial year, we are expecting a moderate market growth depending, among others, on the further economic development in the eurozone and on its implications for the economic growth in Germany. The latest enquiries show that most of the Germans will travel even more this year. Germany and its wide variety of possibilities remains one of the top destinations for Germans. An increase in bookings was recorded by Turkey and Spain (Balearic Islands and Canaries), the countries on the Adriatic coast (Croatia, Montenegro, Slovenia), several North African destinations such as Tunisia, Egypt and Morocco, well as Thailand among longhaul destinations. In Tunisia, which was adversely affected by the political changes in the spring of 2011, bookings picked up significantly. With demand for destinations around the Mediterranean strongly increasing, air travel to short and medium-haul destinations recorded a growth of between 6.5 and 7.5 percent, while total sales revenues from air travel grew by five to six percent. Another interesting segment of the tourism industry is sea cruises, with healthy growth rates in revenues and passenger numbers For the first time, ITB Berlin has its own “bespoke” international magazine – ITB Berlin News. What are your thoughts on this initiative? The world’s largest tourism fair offers a great opportunity to inform people all over the world on tourism trends and the developing tourism market. ITB Berlin News is the ideal medium for giving the maximum number of people the chance to share the news of the market. Jürgen Büchy president - Deutscher reiseVerband Hall 10.1 Stand 117 ITB BERLIN NEWS • Wednesday 27 th February 2013

ITB Berlin News