Public-Private Partnerships for Sustainable Tourism

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					Public-Private Partnerships for
     Sustainable Tourism
                Presented by:
                  Art Smith
             asmith@mainet.com


  San Salvador, September 29th – 30th, 2011
The Challenge of Sustainable Tourism

• Developing and maintaining a sustainable
  tourism industry has always been a challenge
• Over the past decade, however, the challenge
  has grown, due to:
  – Heightened competition from new and emerging
    destinations in an increasingly global market
  – Changing market demand and preferences
  – New and rapidly changing technologies

                                                    2
         Growing Emphasis on
       Public-Private Cooperation
• Creating sustainable national or regional
  tourism programs in today’s larger and more
  complex marketplace requires greater
  investment of financial and human resources
• Faced with the finite availability of these
  resources in the public sector, and recognizing
  the assets and expertise available in the
  private sector, governments have turned to
  private partners

                                                    3
Types of Partnership Opportunities

• Marketing and Promotion
• Product Development
  – Infrastructure development/renewal
  – Attraction development/renewal/diversification
  – Enhanced productivity and service
  – Community development/renewal
  – Cultural and heritage protection
  – Environmental protection/enhancement

                                                     4
            Types of Partners
• Partnerships create opportunities for private
  sector enterprises of all sizes, and for NGOs,
  throughout the tourism value chain
• Large infrastructure PPPs will be awarded to
  large contractors, but MSMEs typically
  participate as subcontractors, and benefit
  from the project outcomes.
• Other partnership models may offer greater
  scope for MSME direct participation.

                                                   5
Chumbe Island EcoTourism PPP, Tanzania
• Chumbe, off the coast of Zanzibar, was an uninhabited, 55-
  acre island, with only a single structure, an old lighthouse.
• An infestation of non-native rats was ravaging the island’s
  ecosystems, while overfishing was damaging the adjacent
  coral reef.
• An NGO approached the Government with a concept for a
  PPP.
• Under this concept, the Government granted the NGO long-
  term concessions for both the island and the reef, and banned
  fishing in the vicinity of the reef.
• The NGO made all the capital investments necessary to turn
  the island into an ecotourism destination, and restore the reef
  and island environments.



                                                                6
Chumbe Island Ecotourism PPP, Tanzania
• The NGO hired displaced fishermen to patrol the
  no-fishing zone, and trained local villages to
  understand the value of healthy reefs.
• The NGO exterminated the invasive rat
  population, and helped the native flora and fauna
  recover.
• The NGO built environmentally-friendly
  bungalows, and a visitor and science center.
• Today, the PPP is entirely self-sustaining, with
  operating revenues covering all operating
  expenses and environmental programs.

                                                      7
8
Union Station, Washington, DC
• Union Station was the largest train station in the
  world when it opened in 1907.
• By the 1970s, declining rail passenger traffic led
  to its closing; the unmaintained structure was
  ultimately condemned and slated for demolition.
• In 1981, the U.S. Congress passed the Union
  Station Redevelopment Act, authorizing the use
  of a PPP to restore the Station.
• The success of the redevelopment effort would
  depend on creating a revenue stream capable of
  sustaining the Station.
                                                       9
Union Station: The Keys to Success

• The redevelopment plan had two foci:
  - Creating a multi-modal transportation hub, and
  - Generating retail revenue.
• To improve access and encourage through-traffic,
  the redevelopment included:
  - A multi-deck public parking garage (total capacity in
    excess of 2,000 spaces)
  - A tour bus area capable of accommodating 80 buses,
    and
  - A rail service waiting area.

                                                            10
Union Station: The Retail Space
• More than 120 stores,
  restaurants, and cafes, and a
  nine-screen cinema were
  constructed, totaling 210,000
  square feet of retail space.
• The old baggage handling area in
  the basement was converted
  into a food court.
• 100,000 square feet of office
  space was built, and leased by
  Amtrak for its national
  headquarters.


                                     11
Union Station
   in 1925




                12
                         Conclusions
• PPPs can be a powerful tool for tourism product development and
  enhancement, as well as for research, marketing, and promotion.
• The strategic use of partnerships can contribute significantly to the
  development of a sustainable tourism program, and PPPs can be a vital
  tool for facilitating tourist access and improving the destination
  experience.
• PPPs for sustainable tourism encompass a variety of different models,
  from simple social collaborations designed to improve the tourism
  experience, to major infrastructure and project development projects. As
  the capital investment required for the partnership increases, so does the
  need for a formal enabling environment.
• The maximum benefit can be obtained from PPPs that support the
  national or regional tourism strategy, and contribute to tourism cluster
  development. Governments should carefully evaluate partnership
  opportunities to ensure that the anticipated outcomes will support the
  public sector’s sectoral objectives in a sustainable manner.


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