PPP for tourism growth and development in developing countries.
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The document discusses public-private partnerships (PPPs) for strategic implementation of tourism in the CLMV region, emphasizing their role in economic development, sustainability, and cultural heritage preservation. It highlights various case studies demonstrating successful PPP initiatives in countries like Saudi Arabia, Myanmar, and Samoa, which illustrate objectives like business competitiveness, economic sustainability, and environmental conservation. The findings underscore the importance of collaboration among government, private entities, and communities in achieving tourism growth and addressing challenges such as climate change.
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PPP for tourism growth and development in developing countries.
- 1. Public Sector Capacity Building for Strategic Implementation of Tourism Public-Private Partnerships (PPP) in the CLMV region. Vientiane, Lao PDR. 3 – 5 May, 2017 PPP for tourism growth and development in developing countries. Steve Noakes
- 2. Content: 1) Introduction – Asia Pacific tourism perspectives over the past four decades 2) PPP interpretations – No standard, internationally accepted definition 3) PPP applications – From UNWTO Global Report on PPP: Tourism Development Saudi Arabia Myanmar Vanuatu Samoa Pa-O guide, Nan Khin. Zoology graduate from Taunggyi University, Shan State, Myanmar
- 3. CLMV stamps as historical record 1970s Introduction: 40 years ago … early stages of tourism in ASEAN … zero or little tourism in CLMV Bali
- 4. Image source: www.eda.admin.ch/deza/en/home/countries/mekong.html Tourism: CLMV within ASEAN & GMS context 1975: 1.3 mil 2016: 32.5 mil 1975: 1.4 mil 2016: 26.7 mil Norlida Hanim, M.S. (2007) Every nation is an ‘emerging economy’ at some stage: competing for private sector investments interested in using Public-Private Partnerships (PPPs) to provide public infrastructure assets & services
- 5. From wartorn to warm welcome. ‘Countries with a more sustainable & open tourism sector are more likely to enjoy higher levels of positive peace in the future’ (WTTC). www.wttc.org/research/other-research/tourism-as-a-driver-of-peace/
- 6. Developmental peace. For 140 years, from the First Opium War in 1839 to the Sino-Vietnamese War in 1979, East Asia did not experience one single decade without a serious war somewhere. East Asia major battlefield in the ‘Cold War’ era. The age of peace in Indochina – allowed Vietnam, Cambodia and Laos to normalize their relations with both China and the USA – got access to the USA market. Professor Stein Tønnesson, Department of Peace and Conflict Research, Uppsala University, Sweden + Peace Research Institute Oslo, Norway. East Asians have a Peace to Defend. ‘Tourism brings people together; it opens our minds and hearts” UNWTO Secretary-General Taleb Rifai
- 7. ‘Public-private partnership’ – no standard, internationally accepted definition can describe several types of arrangements between public & private entities up to individual country if they wish to have a definition to suit own institutional & legal situation UNWTO publications A broad application: Whatever is the best way to contribute to public policy goals Brings together government agencies + public sector + representatives of the whole tourism value chain Goals of promoting socio-economic development, sustainability, job creation & international competitiveness through tourism Development Banks Focus on: Longer-term contracts between a private party & a government entity Capital investment Provision of public assets or services Private party: • bears significant risk • management responsibility • accountable for project performance • remuneration linked to performance
- 8. UNWTO facilitates public & private initiatives via the Affiliate Members Programme. ‘PPPs are beyond a developmental tool, but are sometimes essential to stimulate creativity, enhance competitiveness and achieve visionary results which may be difficult if both parties operated in isolation.’ Yolanda Perdomo Director: Affiliate Members Programme, UN World Tourism Organization The role and need for PPPs as tools for development. The term Public-Private Partnerships (PPPs) covers voluntary collaborative tourism partnerships involving both the government and businesses. Can also include non-governmental organizations (NGOs) and various other types of associations.
- 9. Since 1990, UNWTO has released a series of reports and publications that highlight the importance of PPPs in tourism – examples: 1997 2003 2001 ESCAP/WTO/TAT Asia-Pacific Seminar on Public-Private Partnership in Tourism Development, Bangkok, 20-22 March 2000.
- 10. Seventeen (17) case studies in countries/regions ranging Asia, Pacific, Africa, South America & Middle East + 4 on PPs & Destination Management 6 on Universities as resources for PPPs 3 on Training & PPPs ‘The development of tourism in emerging economies has been shaped by many factors among which Public-Private Partnerships (PPP) play a key role.’ Taleb Rifai Secretary-General, UN World Tourism Organization Free download: http://affiliatemembers.unwto.org/publication/global-report-public-private-partnerships-tourism-development
- 11. The cases presented demonstrate four types of objectives: 1. Business competitiveness (e.g., marketing); 2. Economic sustainability (e.g., economic equity in profit distribution); 3. Capacity building (e.g., knowledge transfer and communication); 4. Environmental conservation (e.g., biodiversity conservation).
- 12. Objective: Business competitiveness Making cultural heritage a competive advantage Saudi Hospitality Heritage Company: The Kingdom of Saudi Arabia
- 13. The program: Custodian Program for Caring of the Kingdom’s Cultural Heritage, which aims to preserve, develop, and raise awareness on the national cultural heritage. The policy: Develop a high-quality network of heritage hospitality facilities in different regions of the Kingdom as a sustainable and internationally well-known tourism initiative. The Vision: Tourism and Heritage in the Vision 2030 Custodian Program for Caring of the Kingdom’s Cultural Heritage Minarets are the most visible structures in Saudi Arabia - towers used to call people to prayer The PPP project: Established a joint stock holding company – Saudi Hospitality Heritage Company (SHHC).
- 14. The partners: Saudi Government – via the Public Investment Fund Development of, and investment in, heritage buildings for area of accommodation & hospitality purposes Established a joint stock holding company – Saudi Hospitality Heritage Company (SHHC) SCTH offered private placement of company capital targeting private joint stock companies specialized in the development of hospitality and urban heritage sites Founding shareholders: Public Investment Fund (15%), Taiba Holding Company (30%), Dur Hospitality (25%), Al-Tayyar Real Estate and Development Co. (20%), Riyadh Development Company (8%), Jeddah Development and Urban Regeneration Company (Jedrick) (2%). Custodian Program for Caring of the Kingdom’s Cultural Heritage
- 15. PPP Objectives 1) Establish and manage tourism and heritage accommodation and traditional hospitality facilities; 2) Develop nationally and internationally high-scale identity for heritage hospitality utilizing Kingdom unique heritage potential; 3) Highlight the value of the Kingdom’s genuine heritage; 4) Promote opportunities for successful luxury heritage hospitality experiences; 5) Develop tourism across provinces; 6) Create sustainable heritage tourism partnerships between the public & private sectors (including, undertaking internal and external design of heritage buildings; making and marketing local handicraft; making and serving popular dishes at banquets; and restoring, developing, and manufacturing heritage building’ materials and construction tools). Custodian Program for Caring of the Kingdom’s Cultural Heritage SCTH considers the private sector as the main partner in the process of developing the tourism sector as a whole. Private sector provides capital to the SHHC and its subsidiary companies; operates, markets & promotes the heritage hospitality facilities within the Kingdom; and develops various heritage hospitality products.
- 16. Inclusive business for tourism training in Yangon and Nyaung Shwe (Inle Lake), Myanmar Objective: Economic sustainability
- 17. The problem(s) Constraints to innovation & tourism market development in Myanmar Lack of product diversity & differentiation of product offering to target markets / different markets Lack of understanding about the concept of inclusive business
- 18. The project: Provide training on inclusive tourism business Help companies develop and pilot new inclusive business models
- 19. Partnerships: • Industry • Government agencies (National, state/provincial) • International donor • NGOs Product & Packaging Innovation Competition
- 20. Example: Donor cooperation & partnerships to advance the Myanmar tourist guide industry.
- 21. Objective: Capacity building Providing capacity building opportunities: Carnival Australia and cruise ship tourism in Vanuatu, Pacific Islands.
- 22. The partnership: World Bank/IFC; Vanuatu Government; Australian Government; Carnival Australia Cruiselines, local communities. Port Vila, Vanuatu The problem (s): Lack of training & direct employment opportunities for local people in the cruise ship sector. Many of the recruited locals find the transition into the cruise ship employment regime difficult and unfamiliar, leading to a high turnover.
- 23. Methods: Preparatory cultural induction seminar to ease this transition and ensure that recruits feel better prepared for their new working life as crewmembers (IFC, 2014). The partnership provides employment on the ships to progress through the ranks, increase their salaries, and job satisfaction For those interested in a career in tourism hospitality to work for the company in their onshore offices. Outcome: This partnership programme added 130 jobs to the 120 jobs offered to ni-Vanuatu people on board of these ships in 2013.
- 24. Objective: Environmental conservation Samoa ́s community tourism operators and the development of innovative mechanisms to adapt to climate change.
- 25. The context: Tourism in small island destinations, such as Samoa, is highly vulnerable to climate-induced risks, with small community operators having relatively limited capacity to adapt Tourism is the dominant sector of the Samoan economy contributing more than 20% of GDP.
- 26. Context: 70% of Samoa’s population & tourism operations are located within 100m of the coastline. Many operators & communities are: • exposed to the impacts of climate change induced events, • other long-term incremental changes (e.g., sea-level rise), • by changing seasonal weather patterns Threatening the viability and profitability of community value chains. The partnership: • Samoan Tourism Authority, with the support of the United Nations Development Programme (UNDP) - funding from the Global Environmental Facility • Government: Ministries of Natural Resources and Environment and the Ministry of Women, Community and Social Development. • Private sector represented by Samoa Hotel Association & Savaii Samoa Tourism Association • Input from the civil society is provided through the community members who participated in project workshops.
- 27. Activity: Support clusters of small operators at selected local destinations around the country’s coastline Establish management plans for Tourism Development Areas (TDAs) by integrating climate risks and adaptation measures Used 3D modelling techniques for TDA planning process to provide a visual support and engagement tool that facilitates discussions around issues and solutions on natural resources and tourism assets management Connects tourism operators to the Climate Information and Early Warning System through innovative software and media applications that transmit weather warnings and long-term climate projections
- 28. Outcome: Helped tourism product diversification as a means of climate change adaptation, by developing alternative cultural and natural programmes for beach activities when affected by rainy and stormy weather Has enhanced water supplies and tourism related infrastructure Reduced shoreline erosion though the introduction of soft-engineering techniques (e.g., beach replenishment) aided by ecosystem-based measures (e.g., vegetation cover) and some protective structures which help maintain tourism functionality (e.g., access, aesthetics) of beaches.
- 29. Conclusions from UNWTO report: Tourism PPPs are common around the world Tourism builds on partnerships and collaboration at many geographic levels PPPs involve governments at central, regional and local levels, individual businesses and tourism representative bodies, donor organizations of many types, non-governmental agencies and community organizations Collaboration does not just happen, and often requires an external party or well positioned stakeholder to create consensus or lead partnership development
- 30. Collaboration does not just happen - often requires an external party or well positioned stakeholder to create consensus or lead partnership development. Focuses attention on key individuals, their network of contacts, their leadership, authority and collaborative skills (Beritelli and Bieger, 2014) An effective convenor can build trust & relationships that support effective governance, will be passionate about their task and imbue others that energy (Gardiner and Scott, 2014). Can provide the needed linkage between the public, private & local community sectors involved in the partnership. Important to bring the participants together & provide leadership and direction - often a person trusted by and with great influence in the community. Conclusions: Cases presented in the UNWTO report emphasize …
- 31. Report identifies 3 different types of resources available for developing PPPs. 1. Destination management organizations provide a natural home for collaborative initiatives such as PPPs 2. Universities have a role in supporting PPPs in emerging areas 3. Some examples of funding and training support that may be available to PPPs have been identified Conclusions: Cases presented in the UNWTO report emphasize …
- 32. Successful PPPs: 1. Provide a benefit to all stakeholders involved 2. Demonstrating tangible outcomes - encourages participation & maintains momentum to ensure the sustainability of the project 3. Are collaborations between many different stakeholders who come together for mutual economic benefit from providing memorable experiences to tourists – they form partnerships as they cannot achieve their individual objectives on their own Conclusions: The cases in the UNWTO report indicate … The combination of stakeholders’ actions can achieve what they cannot do individually. Image source: www.shutterstock.com/image-vector/map-flag-laos-cambodia-myanmar-vietnam-422394277
- 33. Public Sector Capacity Building for Strategic Implementation of Tourism Public-Private Partnerships (PPP) in the CLMV region. Vientiane, Lao PDR. 3 – 5 May, 2017 PPP for tourism growth and development in developing countries. Correspondence: Steve Noakes [email protected]