EU four freedoms affect travel and tourism

How the EU four freedoms affect travel and tourism

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(Last updated on: 06/04/2020)

Ever wondered how the EU four freedoms affect travel and tourism? Whilst this is an area of ongoing debate given the current BREXIT situation, it is important to understand the how the EU four freedoms affect travel and tourism and how this could change in the future. This also further emphasises the importance of the relationship between transport and tourism

How do the EU four freedoms affect travel and tourism?

How the EU four freedoms affect travel and tourism

In Europe, the movement of goods, services, people and capital is governed by something called the EU four freedoms. These freedoms are at the cornerstone of the economy and the European Single Market.

There are four fundamental principles to the four freedoms that affect every aspect of Europe, including travel and tourism. Even the Euro is supported by the four freedoms and they contribute to evening out the economy and and balancing where there are imbalances.

So, what are the four freedoms and how to they affect travel and tourism?

 

EU four freedoms affect travel and tourism

1. Free Movement of Goods

The EU is a single territory without customs tariffs thus promoting intra-community trade. What this means is that goods and products have the ability to move within Europe without the need for customs traffis. This affects travel and tourism because tourists from other countries are able to go shopping and buy things within Europe and not incur a customs tariff. The buying and selling of goods in Europe contributes to the growth of the economy, enabling destinations in turn to invest more money into their tourism industry.

2. Freedom Of Movement For Workers

EU citizens may travel freely and work and live in any member state. This is a big one for the European economy. Basically, this means that citizens of Europe are free to work and live in other parts of Europe. This affects travel and tourism because the growth of the economy relies on its citizens to be able to find work. This freedom allows citizens to move wherever they need to in order to have employment and live there as well. What’s more is that many workers within the travel and tourism industry, which is generally poorly paid, come from Eastern Europe and are based in Western Europe. This is because they are prepared to work for less as the cost of living is lower in their home country. 

3. Right Of Establishment And Freedom To Provide Services

Professionals may operate an economic activity in another Member State and provide their services in other Member States on a temporary basis while remaining in their country of origin. When you break this down, workers have the freedom to offer services and own a place of business in other parts of Europe while living in other countries. Therefore, someone from Spain can live in their country of origin but own a business in Italy. There is a clear link here with tourism, because the tourism industry is worldwide and crosses many geographic boarders! 

4. Free Movement Of Capital

EU citizens have fiscal freedoms such as opening bank accounts in other EU nations, buying shares in non domestic companies, investing where the best return is, and purchasing real estate. Companies are able to invest in and own other European companies and take an active part in their management. This allows for people in all different countries in Europe to own and operate companies that will better the economy and be an asset.

That that sums up the basics of how the EU four freedoms affect travel and tourism. Of course, all of this will change with on the onset of Brexit… but here is an overview as it currently stands. What do you think will happen next? What will the impacts on the travel and tourism industry be? 

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