THE VALUE OF PUBLIC-PRIVATE PARTNERSHIPS (PPPs) FOR PROMOTING TOURISM IN EUROPE

Public-Private Partnerships (PPPs) enable the public sector to benefit from commercial dynamism, the ability to raise finances in an environment of budgetary restrictions, innovations and efficiencies harnessed through the introduction of private sector investors who contribute their own capital, skills and experience.

Why PPPs ?

• Greater integration of policies and practices relating to tourism planning by the public and private sector is possible.
• Tourism infrastructure- most critical component can be financed jointly.
• Public private involvement can help development and beautification of tourism projects.
• Guides private enterprises into areas and programmes in which it would be most successful.

Role of Public Sector

• Umbrella cover providing policy overall support in the initiative;
• Provision of land for projects to be developed;
• Provision of statutory and project specific clearance within its control;
• Grant of fiscal concessions to projects;
• Project performance monitoring;
• Provision of public infrastructure facilities including local planning and zoning arrangements;
• Provision of support facilities and facilitation services to private enterprises;
• Introduction of regulatory measures to ensure social, cultural and environment sustainability;
• Creation of nucleus infrastructure in the initial stages of development to demonstrate the potential of the area;
• Identification and establishment of clear objectives as to the range of public and private sector developments as considered appropriate;
• Ensuring that the local community is fully involved and the benefits of tourism accrue to them;
• Ensuring that the type and scale of tourism development is compatible with the environment and socio-cultural milieu of the area;
• Undertaking research, prepare master plans, formulate marketing strategies and organize promotion abroad and marketing jointly with the industry.

 Role of Private Sector

• Building and managing the required tourism facilities in places of tourist interests;
• Undertaking industry training and manpower development to achieve excellence in quality of services;
• Participation in the preparation of investment guidelines and marketing strategies and assistance in database creation and research;
• Ensuring preservation and protection of tourist attractions and taking lead in green practices.

 Benefits of PPPs in Tourism Sector

• Acceleration of infrastructure provision
• Faster implementation
• Value for money
• Partnership building
• Enhanced public management
• Genuine risk transfer
• Output specification
• Asset performance and reduced costs
• Performance related reward
• Private investment promotion
• Improved quality service.

 Conditions for Success

• Clear planning of respective roles
• Identification of benefits to each partner
• Establishing long term commitment of both partners
• Periodic evaluation of the efficacy of each other role.

The synergy between the public and private sector is a major force in stimulating tourism competitiveness at national, state/regional and local levels. The development of tourism is possible if created jointly by the public sector and the private sector with the private sector as the dominant partner.