Brief description of the opportunity

Tourism is a major source of revenue for many EU countries and statistics show a growing number of international tourists coming to Europe, with an increasing proportion of those being 50+.  There is increasing focus on visitor ‘experience’ and niche markets and the cohort aged 50 and older is one of the most active demographics in travel and leisure. The rise of the middle classes, especially in China and India, means that inbound international tourism is expected to continue to grow strongly. While there are substantial differences in the interests and needs of the over 50s, research has identified some common demand patterns of this group: luxury trips and cruises, extended visits to family and friends, wellness and recreation, milestone tourism celebrating special occasions and medical / health tourism, etc.

Europe’s tourism industry is addressing this demographic trend through its packaging of services, however, there remain many parts of the industry that have not yet recognised the commercial opportunity or are seeking to address these increasingly important segments through simple marketing campaigns without a more fundamental review of their offer.  The slow progress within the industry around the particular demands of older tourists may dampen demand and people may choose to travel less or only travel to the tourist destinations that have understood the opportunity. Collective action here could very well encourage older Europeans to spend more on travel and encourage older international visitors to choose Europe over other possible global destinations.

The EU could develop a more comprehensive and robust view of the needs and expectations of older tourists, European and international, in order to help the industry to move forward. An EU silver tourism roadmap could help address the need for an improved infrastructure, accessible transport (across borders), age-friendly hotels and inclusive ICT solutions. It could also include the provision of medical care during travel and at destination. Selective use of mHealth (mobile health solutions and devices) could address these challenges and better integrate person-centred care. Holiday packages and tours that overcome these and other barriers to mobility can be promoted. Opportunities exist to increase the inclusiveness and customisation of transport systems, ICTs, food, housing, and the accessibility to knowledge and training from both the supply and demand side.

Barriers and market failures

There are a number of barriers and market failures that inhibit older people to travel more and to new destinations. The industry is still adapting to the interests, needs and expectations of the older and the frailer consumer. The 50+ tourism industry is a broad market segment that combines people that are fit, healthy and active with people that are frailer and require more support. This raises a number of questions for the tourism industry. To what extent should the tourism industry cater for both young and old, health and frail, people with early onset of dementia? There is a need for greater awareness of the opportunities and how to best adapt the supply to the needs and expectations of the older adult. For example, as people become older they more often need greater support to overcome mobility obstacles, and the tourism industry should cater for this need across the supply chain.

The European Commission 2014 report “Europe, the best destination for Seniors”, outlines that improving knowledge about the 50+ population would allow the European tourism sector to better respond to the growing demand. This would help address a number of barriers such as: lack of information, general travel and organizational conditions, age discrimination, health care and emergencies, accessibility, travel insurances, financial reasons and lack of attractive and professionalised supply[1].

To overcome market fragmentation, there is a need for improved coordination between regions and countries. Klimczuk (2015) identifies at least five models of regional silver economies based on policy delivery (i.e. based on inter-regional coordination, combined action of municipal and regional bodies, partnership of regional agencies with municipalities, led by land policies at governmental level, regions and stakeholders driven). This is also accompanied by a missing integration between travel and mobility services with a cross-regional and cross-border function.

There is a need for a more supportive infrastructure, including transport infrastructure. A lack of infrastructure is particularly problematic in regions that seek to grow the 50+ tourism sector, but do not have adequate facilities to respond to their necessities and to improve the travelers’ experience.

[1] European Commission (2014), Europe, the best destination for seniors”, Draft Report

Market prospects – size, growth trends and scalability

Almost 30% of the EU27 population will be 65 years old or older by 2060 (data from Eurostat). There is an increase of 60+ tourists of approximately 3% points over the last 20 years (2014 data), global level. Today, older adults in Europe tend to spend more money for travelling, tend to make longer trips, and prefer package trips, accounting for 30 % of all European tourism expenditure on package trips (data from 2012)[1]. It is estimated that globally, the 50+ population spend €109bn (£120bn) per year on sectors directly related to tourism, close to 3% of GDP, and contributing to 100,000 jobs and inducing further economic growth in other sectors of the economy (World Travel Monitor, 2013). Older tourists (65+) contributed significantly to the tourism sector during the economic downturn in 2006-2011 and counterbalanced the drop in tourism by all the other age groups[2].

Unlike eg families with young children, older adults have the time and flexibility to travel outside peak seasons. An increase in older adults travelling during off-peak seasons can contribute to the competitiveness of the tourism sector, boost jobs and economic growth in the EU and would contribute to balancing jobs and growth in the tourism sector throughout the year. The 2014 Action Plan of the European Commission Draft Report on “Europe, the best destination for seniors”, aims to increase the volume of cross-border trips undertaken by older adults during the low and medium seasons in all EU Member States by 10%, by 2020[3].

Moreover, silver tourism could:

• Attract investment and improve the business environment;
• Increase joint promotion, particularly towards key third-countries and the internalisation of tourism for SMEs;
• Support tourism digitalization and innovation uptake by tourism businesses;
• Improve skills and competences to provide the industry with the skills they need and to improve the quality of jobs[4].

[1] Eurostat (2012), Ageing and tourism in the European Union, Statistics in Focus

[2] European Parliamentary Research Service (2015), Tourism and the European Union, in-depth analysis

[3] European Commission (2014), “Europe, the best destination for seniors”, Draft Report

[4] Workshop "Towards an age-friendly tourism - Opportunities for the low-medium season" - Minutes & Main Conclusions

Challenges - identified need for action

Across the EU, just under half (47.1 %) of the EU’s population aged 65 and over participate in tourism, which is lower than the participation rate for the population aged 15 years and over (60.0 %) (Eurostat, 2013). Across EU member states there is substantial variation in the participation rate of older adults and relatively more older adults go on holiday in Denmark (where 4 out of 5 of the older people participate in tourism) Finland, the Netherlands, Germany, France, Luxembourg, Ireland and the United Kingdom that in the Southern, Eastern and Baltic EU Member States (Eurostat, 2013).

One of the challenges to tap into the potential is linked to the existing mismatch between supply and (potential) demand[1]. In fact, the tourism sector of the 50+ age group remains limited and fragmented, especially when looking at the aspect of mobility, which is often not designed according to the needs of older adults[2]. The latter aspect is amplified when looking at cross-border tourism and testified by the fact that approximately 41% of European citizens in the 28 Member States have never travelled outside their national borders, and the big majority of older adults undertake exclusively domestic trips[1]. Coordinated actions at European level, involving public administrations, industry and civil society to facilitating and promoting travel for older adults between European countries and also from third countries to Europe, could change this trend and increase the productive use of tourism infrastructures and resources. Altogether, increased coordination with regards to product and service development, including accessibility, quality, promotion, and business models can stimulate the uptake of more age-friendly tourism offering, with expected positive returns on productivity, job creation, SMEs growth and competiveness.

The use of ICTs in tourism could help increase knowledge, training improve processes such as bookings and e-ticketing, and e-commerce.

[1] Eurostat (2012), Ageing and tourism in the European Union, Statistics in Focus

[2] European Commission (2014), Cross-DG Working Group on the European Silver Economy, Annex II: Possible first EU Silver Economy joined up initiatives.

Added value of EU action

The EC is already supporting the tourism sector via several initiatives.  In 2010, a Communication on tourism identified the extension of the tourism season as an important priority action. The European Union plays an important role in improving knowledge sharing and thereby addressing some of the main barriers in the silver tourism sector. This goes in line with the legal mandate of the Lisbon Treaty (art 195), pointing at the positive effects of the exchange of best practices and knowledge sharing. Moreover, an EU-led action contributes to reduce the current fragmentation of the 50+ tourism market.  The European Union should also tap into the existent actions undertaken in other sectors and areas. initiatives aimed at the uptake of ICT solutions and business models, technology schooling for the silver economy sector, and self-assessment tools for SMEs and businesses have the potential to be applied to the silver tourism sector[1][2].

[1] Transversal actions can be: the Initiative on Age friendly homes launched in March 2016, or the ongoing work on 'Blueprint on Digital innovation for Europe's ageing society in the 21st Century'.

[2] European Commission (2014), Cross-DG Working Group on the European Silver Economy, Annex II: Possible first EU Silver Economy joined up initiatives.

Existing or planned initiatives to build on

There are various initiatives in the field of silver economy tourism and some are supported by the EC and others are initiated by Member States or Regions. European-led initiatives include:

• The COME-IN! project, to promote a transnational route of accessible museums. The project will also stimulate the integration with other services, such as transportation, accommodation, leisure and facilities, that will also represent an opportunity of business on local and transnational level.
• The CALYPSO initiative, (2009-11 / 17 EU and 2 candidate countries) aiming at enabling underprivileged citizens to travel during low-season, and facilitating the matchmaking between Tourism industry, Member States, regions, and NGOs. A platform (e-calypso) has been set up to match intermediary segments of the supply and demand in social tourism, based on the preliminary findings of the program. The funds allocated by the EU for Calypso between 2009-2011 were €1-1.5 million per year and for 2012, €450 000. The funding came, under the 2007-13 financial framework, from the Entrepreneurship and Innovation Programme (EIP), and since 2014, from the Programme for the Competitiveness of Enterprises and SMEs (COSME).
• The “Senior Tourism Initiative” (Pilot launched in 2012), to enhance tourism for the older adults, and more specifically in off-season.
• The AAL Programme and the Technolage Project, on business models of ICT solutions in an ageing context. The project wants to come up with clear business and financing models related to ICT and ageing, thus is relevant for the identification of such models in the tourism sector.
• The initiative Low-Medium Season Tourism Initiative Board (EULTIB), an informal ad-hoc group set-up on an ad-hoc basis for the period 2015-2016 to support the Commission with expertise on low-medium season tourism.
• SMEs COSME program, including funding for facilitating EU transnational tourism flows for older adults and young people in the low and medium seasons.

A non-exhaustive list of Member States and Regions-led initiatives include several initiatives taken to boost tourism for the older adults in Ireland, and Spain, and Portugal, with the Senior Tourism Initiative to combat loneliness of the 50+ population.  Regarding the regional dimension, strategic cooperation can be envisaged with the support from DG REGIO on tourism activities in the field of transnational/cross-border cooperation programs, and looking at macro-regions strategies, through, for example ERDF funding. Tourage: Developing Senior Tourism in Remote Regions, is an example of project co-financed by the ERDF, with the objective of enhancing regional economies by the means of 50+ tourism by means of increasing network capacities and by exchanging good practices. Another example of inter-regional network of relevance is The Silver Economy Network of European Regions: a joint initiative of European regions initiated by the region of North Rhine-Westphalia (Germany), to address 50+ citizens as target group for the development of European cultural tourism.

Recommended EU policy actions

In line with the existing mission of the EC as outlined in the Communication “Europe, the world's No 1 tourist destination a new political framework for tourism in Europe”, the related initiative “Europe, the best destination for seniors”, and the Committee of Regions existing actions should be supported via an integrated approach that embraces positive change in the age-friendly tourism sector: building on developments in eg the transport sector, rural and urban planning, and health care.

Recommended EU policy action includes:

• Promote of off-season tourism to the older adult;
• Support the development of innovative and high quality care holiday packages using mHealth and integrated personal care that target the frailer adult;
• Share best practices and exchange of knowledge, enable the development of common platforms, etc. and continue to support the initiatives that have been inaugurated in recent years;
• Contribute to train and re-skill (older adults) to increase the offer and quality of care in target tourist destinations;
• Continue to work cross-sector to improve connectivity and accessibility for older people, including transport and access to facilities;
• Support and continue the ongoing work on accessibility standards at European level, following the standardisation requests by the European Commission, as it will also support the future implementation of legislation (European Accessibility Act);
• Promote the age-friendly label. 

Key stakeholders

Key stakeholders include large and small companies operating in the tourist sector, transport sector (eg aviation companies, maritime transport/cruise, bus and rail transport), as well as others sectors adjacent to the tourism industry such as the food industry. Stakeholder also include national and regional government, transport and planning departments, design teams, research institutes, local community organization, etc. The European Innovation Partnership on Active and Healthy Ageing is an important stakeholder that supports standardization bodies to meet and to develop strategic roadmaps for scaling-up innovative solutions.

<< Previous Case                   Overview Page                    Next Case >>