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Public-Private Partnerships in Tourism Development: Some Reflections on Africa Peter U.C. Dieke, Ph.D Associate Professor of Tourism The Emirates Academy of Hospitality Management Dubai, U.A.E.
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Definition An economic relationship situation where the major developments in tourism are stimulated by the public-private sectors working together for the development and management of the tourism sector in a way that is self-sustaining An economic relationship situation where the major developments in tourism are stimulated by the public-private sectors working together for the development and management of the tourism sector in a way that is self-sustaining Share responsibilities, obligations and commitments, and a joint determination to achieve common objectives for all the people engaged in that partnership Share responsibilities, obligations and commitments, and a joint determination to achieve common objectives for all the people engaged in that partnership
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Key Issues Why is such a partnership necessary? Why is such a partnership necessary? What should be nature and scope of such partnership? What should be nature and scope of such partnership? Under what conditions should such a partnership function? Under what conditions should such a partnership function? What should be the respective roles of the public and private sectors? What should be the respective roles of the public and private sectors? Should government withdraw completely from tourism and give a free hand to the private sector? Should government withdraw completely from tourism and give a free hand to the private sector? Is there a “right” way to strike an optimum balance between the public sector and the private sector? Is there a “right” way to strike an optimum balance between the public sector and the private sector?
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The Partnership Context The Competitive Environment Attractions Price Accessibility The Public Sector Policy formulation and planning Access facilities (airports) Support facilities (roads) Entrepreneur (hotel investments) Operational roles Changing Nature of Governments’ Roles Collapse of the Soviet Union in 1991 Resources Decentralization Loss making ventures ‘Enabling environment’
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Why Public-Private Partnerships? Economic importance of tourism Economic importance of tourism Ownership Ownership Empowerment Empowerment Participation Participation
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Factors Influencing PPPs Size and strength of national economy Size and strength of national economy National budgetary constraints National budgetary constraints Government’s vision for tourism and a strategic development plan Government’s vision for tourism and a strategic development plan Government’s policy of liberalization, privatization of assets Government’s policy of liberalization, privatization of assets Relative importance of tourism to the national economy and image Relative importance of tourism to the national economy and image Development of super regional groups Development of super regional groups Recognition of private sector’s role Recognition of private sector’s role Globalization and the emergence of multi- national corporations Globalization and the emergence of multi- national corporations Community involvement Community involvement
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The African Situation Problems of Africa’s Tourism Political factors Market positioning/budget provision Human resource development Cooperation Health & Safety Organizational Private sector & business confidence Prospects for PPPs Jointly steer tourism growth Catalyst & withdrawal policy Promotion Impacts of Tourism Investment National Tourism Office
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Problems to be addressed Leadership at the highest (prime ministerial, presidential or reigning monarch) level of government, to have a vision for tourism and to set up supportive frameworks Leadership at the highest (prime ministerial, presidential or reigning monarch) level of government, to have a vision for tourism and to set up supportive frameworks Recognition of the economic value of tourism, as reflected in development plans Recognition of the economic value of tourism, as reflected in development plans Engagement of major companies, e.g. airlines Engagement of major companies, e.g. airlines Active financial involvement by all parties Active financial involvement by all parties A goal-oriented approach to getting things done, setting targets, measurement and monitoring A goal-oriented approach to getting things done, setting targets, measurement and monitoring Involvement of local communities Involvement of local communities
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Problems to be addressed A long-term perspective – tourism planning and management needs a long term approach, and is not well serve by frequent, politically motivated changes of approach A long-term perspective – tourism planning and management needs a long term approach, and is not well serve by frequent, politically motivated changes of approach Concern for sustaining national heritage, cultural, social and natural environments Concern for sustaining national heritage, cultural, social and natural environments A financially and economically realistic approach A financially and economically realistic approach Clarity over roles and responsibilities of all participants Clarity over roles and responsibilities of all participants Creativity, innovation and a willingness to try things out Creativity, innovation and a willingness to try things out Information technology companies, and manufacturers of high quality consumer brands Information technology companies, and manufacturers of high quality consumer brands Commitment to open markets and skies, to liberalize and privatize Commitment to open markets and skies, to liberalize and privatize
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Conclusions No standard format No standard format Wider representation Wider representation
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