GOVERNANCE IN THE TOURISM SECTOR

Governance entails a guidance process that is institutionally and technically structured, that is, based on principles, norms, procedures and practices to collectively decide about common goals for coexistence and about how to coordinate and cooperate for the achievement of decided objectives. While there is no clear definition of what governance in the tourism sector consists of, it can be paraphrased as follows: a process of conducting coordinated activities among public, private and social actors in the “tourism system” to create synergies.

Tourism is a sector of activity that involves multiple interrelationships among numerous types of actors and agents intervening in the production of goods and services consumed by visitors. In this framework, the government’s directive functions, under current conditions, are particularly relevant in coordinating efforts to help ensure that the dynamic of permanent growth that tourism has achieved to date is economically, socially and environmentally sustainable so as to increase its contribution to development.

While tourism production can be analyzed and researched based on the collaborative relationship between the public and private sectors and the inhabitants of tourist destinations, viewed as a sector of activity, tourism encompasses a reality much more complex, due to the diffused nature of responsibilities for its development, shared as they are throughout an extensive and complicated network of actors as illustrated in the following breakdown:

• The private sector, as the principal producer and supplier of goods and services consumed by visitors, consists broadly of a diversity of economic units determined as a function of their size and extent (micro, small, medium and large enterprises, whether local, regional, national or transnational) composed of different spheres of productive activity ranging from manufacturing, to trade, to transport, to a wide variety of services (hospitality, food and beverage service, cultural and recreational activities, etc.), which gives a somewhat fragmentary character to a hypothetical tourism sector.
• The public sector, whose fundamental role by virtue of functions in respect of different spheres of activity that decisively influence how tourism is developed in a country or territory (development of infrastructure, planning, transport policies, fiscal matters, employment, etc.) is also characterized by a diversity of actors and agents coexisting side by side. Such coexistence occurs in two dimensions:  Horizontally, that is, in terms of the legislative (parliaments, congresses) and/or executive branches, generally through more than one ministry or department, agency, etc. Each of these can have responsibilities for various tourism-related activities at the same level of government. Vertically, considering the different levels of government (local, regional, provincial, national, etc.) existing in a determined country, depending on the form of territorial organization in question.

 In this way, tourism, from the public perspective, cuts across different fields of experience and administrative frontiers, and can ultimately be related to almost everything. In practice, this situation results in what can be called a certain weakness in the structures of government for effective coordination and cooperation, both within the public sector and vis-à-vis the actors and agents of tourism. It can also make it difficult to get a complete picture for the purposes of planning and managing destinations sustainably and maximizing the benefits of the activity.

Given this fabric of relationships and diffused responsibilities created by tourism, it seems paradoxical that little has been done to investigate their causes and how they affect the approaches taken to public policies, understood as directive instruments of government, with the aim of improving efficiency in managing the services available and effectiveness in the management of tourism itself.

In the best of cases, it can be recognized that in-depth research has indeed been conducted in certain areas, but when it comes to areas specifically related to tourism (transport policy, tourism promotion or marketing), reproducing the same fragmentary nature that characterizes the hypothetical tourism sector, without a comprehensive vision of the whole. This is particularly striking at a time when we are beginning to see the need to foster the greatest possible contribution from tourism to economic growth and development.

Governance can therefore be considered a relevant approach both theoretically and practically, considering, at a minimum, the following:

• The dynamic of growth in tourism, as well as the need to increase its contribution to development, heighten the need for the various public, private and social sector actors intervening in tourism production at any level (national, sub-national, supranational) to reach understandings and complementarity that draw in a balanced way on their respective capacities and resources for the direction, organization and management, and, if considered appropriate, to achieve synergies; but first of all, to organize themselves and cooperate in defining and pursuing general objectives beneficial to society as a whole, diminishing the negative impact that tourism activity has tended to generate.
• Viewed in this fashion, intergovernmental and intragovernmental relations, as well as relations between the government and tourism production agents, provide a framework for better understanding the role played by government as a tourism agent, which, while not its only or principal role, is in fact highly relevant to increasing the contribution of tourism to development, making it possible to determine under what conditions and subject to what requirements government can act with a clear and shared vision for the construction of a possible and desirable future for tourism, with the capacity to undertake, promote and efficiently produce the services that, depending on their functions, help to generate and sustain value in tourism production.
• Public Tourism Administrations (PTAs), at either national or sub-national level, play a fundamental role in this regard, and their leadership should be strengthened. It is precisely the lack of such leadership that in the great majority of cases makes it difficult for them to assume the role of principal centre for public policy networks, with the capacity to articulate and coordinate platforms for discussion, analysis and/or negotiation of the public problems that impinge on tourism production.

Given the level of conceptual development of governance in the tourism sector, it is necessary to give continuity to and deepen the limited efforts undertaken to date. This would mean:

• Identifying the basic components that could enter into a concept of governance applicable to tourism, studying its implications not only for the public policies that guide tourism development, but also for Public Tourism Administrations (PTAs), as a fundamental component of government, whose impact on future development in this sector would also be studied.
• Developing a methodological proposal for the construction of governance indicators in the tourism sector, for use in determining, explaining and evaluating the space it occupies in different contexts, its instruments and mechanisms, as well as its implications for the directive process of tourism, recognizing the role, characteristics and forms of participation of actors intervening in tourism production.
• Determining the patterns of interaction and institutional arrangements that may be desirable for effective governance in the tourism sector, with the aim of opening spaces for reflection about the public sector instruments, means and mechanisms that could help to promote and efficiently produce services that add to and help to sustain the value of tourism production.

 Defining Governance in the Tourism Sector

The following definition is proposed with the aim above all of contributing to the identification, analysis and evaluation of aspects that help to plan, undertake and coordinate a transition towards a new form of governance in the tourism sector. The aim is to specify and clarify which structures, actors and instruments are most relevant to ensuring that the actions of government are not only legal in accordance with the existing frameworks and institutions, but also that they can be assimilated as necessary and effective to meet the challenges posed by the prevailing uncertain context:

“Governance is a practice of government that is measurable, that is aimed to effectively direct the tourism sectors at the different levels of government through forms of coordination, collaboration and/or cooperation that are efficient, transparent and subject to accountability, that help to achieve goals of collective interest shared by networks of actors involved in the sector, with the aim of developing solutions and opportunities through agreements based on the recognition of interdependencies and shared responsibilities”.

Defined in this way, governance can have diverse connotations along two interrelated dimensions:

• Directive capacity of government, determined by its institutional powers and resources, irrespective of its territorial extent, to promote and transparently exercise mechanisms of coordination, collaboration and/or cooperation subject to accountability, with networks of actors based on agreements recognizing interdependencies and shared responsibilities.
• Directive effectiveness , derived from the efficient use of institutional powers and resources for coordination, collaboration and/or cooperation characterized by co-responsibility, transparency and accountability, which are fundamental to the definition and achievement of objectives with respect to mutually beneficial solutions and opportunities in the general interest.

According to this definition, it is not taken as a given that governance simply exists, for the simple reason that a government is empowered and/or has institutional resources for coordination, collaboration and/or cooperation. These are necessary but not sufficient conditions for the existence of governance. In any case, emphasis is placed on the willingness and aptitude of a government to practice coordination, collaboration and cooperation as directive guidelines for its interactions with the aim of making it possible for networks of actors (public, private and social sector) not only to recognize but also participate in and endorse the objectives of general interest. Such guidelines should be based on approaches especially relevant to the tourism sector.

The first of these would pertain to the devolution of governmental decision-making toward local governments; markets (production, employment, trade, finance), in a manner consistent with the structural and institutional reforms that have been conducive to the emergence of tourism as an engine of economic growth and development; and toward autonomous public and private sector agencies, business as well as civilian. Such devolution has been a significant part of the processes of restructuring and modernizing public administrations, pursued by most countries, with the aim of improving the efficiency and effectiveness of public administration. In practice, this has led to a greater distribution of powers to sub-national governments and the development of management processes that depend to significant degrees on the capacity of government actors and public authorities to coordinate with the various actors that are indispensable to improving the efficiency and effectiveness of public administration. From this perspective, coordination occurs as a means of responding to the need to strengthen the joint work of public and private organizations responsible for shaping public policies to avoid overlap or gaps in the delivery of public services. In essence, coordination can be understood as a process intended to give coherence and structure to public policies, with preference for the development of comprehensive policies to achieve strategic objectives. Coordination is also recognized as a procedure for avoiding duplication or overlap of public policies; giving consistency cohesion and coherence to public policies; minimizing political and bureaucratic conflict related to the distribution of functions and encouraging the development of a vision that cuts across the different sectors to expand the scope of public policies. There are a number of coordination mechanisms of frequent and generalized application, including those of a normative type, such as the setting of basic standards, plans, etc., and of an executive type, as in the case of coordination bodies (cabinet committees, interdepartmental committees, and even strategic planning systems). Mechanisms for consultation, joint procedures and reporting requirements are among the most relevant.

Another approach pertains to the development of forms of association between the government and other agencies (public and private, nongovernmental and/or social sector) for the supply of certain public services, either on a joint basis or on the basis of delegation.

It should be recalled in this regard that none of the Public Administrations, including those concerned with tourism, however large, developed or well-funded they might be, today have the capacity by themselves to deal with the challenges of globalization. Public administrations today need to adopt or deepen mechanisms for co-management, both with other public institutions and private organizations, profit or non-profit, as well as with citizens, to achieve a level of performance that makes it possible to provide public services in an acceptable and economically sustainable way, as well as with the adequacy and quality required by the citizens.

There are two tools in particular that should be used in the tourism sector with regard to governance: partnerships and the creation of tourism observatories.

Public-private partnerships, understood broadly as tools for producing relevant changes in public administration are especially important in this context, particularly in a sector of activity like tourism where interaction among an extensive and complex range of actors and agents, public and private, is basic and indispensable for the production of tourism consumer goods and services. There are different forms of public-private collaboration. The most common is external contracting, which entails collaboration with a public enterprise as well as outsourcing.

Outsourcing has become increasingly prevalent in public administration, particularly at the local level, where conditions make this instrument particularly useful. This increasing prevalence stems from the fact that outsourcing permits greater specialization and activities that add value and the use of the technologies and the private sector’s capacity for innovation, contributing to improvement of the efficiency and effectiveness of public administration as well as the quality of its products and services.

The different forms of collaboration should not be limited however, to the public-private sphere. They should also extend to relations between public administrations themselves and between them and citizens, given that most modern states are structured on a territorial basis based on complex, multilevel models requiring fluid intergovernmental relations or effective and crosscutting systems of collaboration and transfers of knowledge among the different spheres of public administration.

There is a profound asymmetry within public administrations. Many public administrations at sub-national, and especially local level lack the critical mass needed as institutions to manage more complex forms of public-private collaboration which, like outsourcing, require a series of complex activities, ranging from a careful disaggregation of functions, to the establishment of clear and measurable objectives, to the establishment of detailed conditions of service in quantitative and qualitative terms, and to the establishment of standards permitting the quality of services to be controlled and measured.

In the case of public collaboration with citizens there has been increasingly extensive citizen participation and co-production of public services, which revitalizes the concept of citizenship by no longer seeking solely to expand rights but also to deepen obligations. Collaborative public private relations tend to grow as a result of cooperation mechanisms that can be established as the need arises to facilitate interaction among the different public administrations, and even between them and third parties, in pursuit of a common objective. Such mechanisms include, at a minimum, those of a sectoral nature that can be developed even at the international level to deal with concrete issues in a particular sector involving the parties as well as cooperation mechanisms of an instrumental character, such as collaboration agreements, joint plans and programmes, consultations, etc.

For the European Commission, the various forms of cooperation among public authorities and the business world are for the purpose of guaranteeing financing, construction, renovation, management or maintenance of infrastructure or the delivery of a service/

However they might be labelled, what is important is that partnerships are tools that require increased levels of responsibility, transparency, accountability and flexibility. They can be complemented with other types of instrument of a nature not only to strengthen but to nourish and improve the conduct of collaborative public-private relations. These include networks for the exchange of experiences and similar instruments designed to strengthen and optimize capacity for the construction of relevant and timely databases, in terms of good practices but also the transfer of knowledge based on the results of and lessons learned (successes as well as failures) from different experiences for the purposes of adaptation to different contexts.

Another useful and complementary tool is the tourism observatory, which have mostly been created and managed by tourism administrations, although there are cases of observatories created by universities or strongly supported by business organizations or with a pronounced business orientation. Precisely for this reason both their composition and functioning are far from homogeneous, although they do share certain especially significant aspects:

• They were created out of recognition for the importance of tourism in the territorial units where they conduct their work.
• Their main objective is usually to provide useful information for different agents in the sector.
• They also serve as a platform for meetings among these agents to detect trends and report situations that may affect tourism activity.
• They have enormous potential for use in supporting the design and evaluation of public policies.

 General guidelines for the measurement of governance in the tourism sector

 Outlined below are rough guidelines for the measurement of governance, for the purpose of determining so far as possible the space occupied by governance in the tourism sector, based on its dimensions and magnitudes, through the determination of its subjects, instruments, as well as tourism-related issues and the territorial units where governance may or may not take place.

The ultimate aim is to support the possible construction and development of a set of indicators to enrich tourism information systems assuming their unquestioned usefulness to support decision-making processes in the public and private spheres, as well as to improve the design and implementation of public policies related to and impacting on the tourism sector.

 According to the definition proposed, governance would have to occur where public administrations responsible for tourism policies effectively manage this sector at the different levels of government as a result of:

• having had explicit powers conferred upon them for the coordination of governmental and nongovernmental actors in the different territorial units; having been assigned to collaborate and cooperate with them; and having had placed at their disposal mechanisms and instruments (institutional resources) for use in coordination, collaboration and cooperation in a co-responsible, transparent, and accountable manner (directive capacity dimension); and
• having coordinated the participation of the multiplicity of governmental and extragovernmental actors in the different territorial units in the establishment of goals of collective interest, providing solutions and opportunities, in addition to collaborating and cooperating with those actors on execution (directive effectiveness dimension)

Viewed in other terms, the space occupied by governance in the tourism sector is defined by the dimensions of directive capacity and effectiveness. Each of these dimensions requires its own set of resources (types of competencies, resources, actors, fields of application, etc.) which are specific to each of them and consideration of which is important because it is through them that the space occupied by governance can be described and explained.

The observable facts that make it possible to measure the space occupied by governance in the tourism sector, apart from distinguishing some of its specific characteristics and behaviours, should be suitable for grouping around the fields of observation most relevant to the two dimensions indicated. The following five fields are proposed for initial consideration:

1. Legal/normative means for the exercise of public coordination, collaboration and cooperation in the sectoral and territorial structures of government.
2. Legal/normative means for the formation and development of public-private collaborative and cooperative relations.
3. Legal-normative means of ensuring co-responsibility, transparency and accountability in public and private relations.
4. Exercise of public coordination, collaboration and cooperation.
5. Exercise of public-private collaboration and cooperation.

There is a direct correspondence between the different fields because the aim is to investigate to what extent the institutional capacities have been translated effectively into government practices supported by diverse structures and mechanisms that would tend to give new content and scope to the management of public and private relations in pursuit of public policy objectives in the field of tourism.

Co-responsibility, transparency and accountability, it should be reiterated, have been assigned an important role in the exercise of public-private coordination, collaboration and cooperation because it expands the information available not only on results but also on the quality of public and private participation in obtaining those results.