Public-Private Partnerships in Public-Private Partnerships in Tourism Development: Some Tourism Development: Some

Reflections on AfricaReflections on AfricaPeter U.C. Dieke, Ph.DPeter U.C. Dieke, Ph.D

Associate Professor of TourismAssociate Professor of TourismThe Emirates Academy of Hospitality The Emirates Academy of Hospitality

ManagementManagementDubai, U.A.E.Dubai, U.A.E.

DefinitionDefinition

An economic relationship situation where An economic relationship situation where the major developments in tourism are the major developments in tourism are stimulated by the public-private sectors stimulated by the public-private sectors working together for the development and working together for the development and management of the tourism sector in a way management of the tourism sector in a way that is self-sustainingthat is self-sustaining

Share responsibilities, obligations and Share responsibilities, obligations and commitments, and a joint determination to commitments, and a joint determination to achieve common objectives for all the achieve common objectives for all the people engaged in that partnershippeople engaged in that partnership

Key IssuesKey Issues Why is such a partnership necessary?Why is such a partnership necessary? What should be nature and scope of such What should be nature and scope of such

partnership?partnership? Under what conditions should such a partnership Under what conditions should such a partnership

function?function? What should be the respective roles of the public What should be the respective roles of the public

and private sectors?and private sectors? Should government withdraw completely from Should government withdraw completely from

tourism and give a free hand to the private sector?tourism and give a free hand to the private sector? Is there a “right” way to strike an optimum Is there a “right” way to strike an optimum

balance between the public sector and the private balance between the public sector and the private sector?sector?

The Partnership ContextThe Partnership ContextThe Competitive EnvironmentThe Competitive Environment AttractionsAttractions PricePrice AccessibilityAccessibilityThe Public SectorThe Public Sector Policy formulation and planningPolicy formulation and planning Access facilities (airports)Access facilities (airports) Support facilities (roads)Support facilities (roads) Entrepreneur (hotel investments)Entrepreneur (hotel investments) Operational rolesOperational rolesChanging Nature of Governments’ RolesChanging Nature of Governments’ Roles Collapse of the Soviet Union in 1991Collapse of the Soviet Union in 1991 ResourcesResources DecentralizationDecentralization Loss making venturesLoss making ventures ‘‘Enabling environment’Enabling environment’

Why Public-Private Why Public-Private Partnerships?Partnerships?

Economic importance of tourismEconomic importance of tourism OwnershipOwnership EmpowermentEmpowerment ParticipationParticipation

Factors Influencing PPPsFactors Influencing PPPs Size and strength of national economySize and strength of national economy National budgetary constraintsNational budgetary constraints Government’s vision for tourism and a Government’s vision for tourism and a

strategic development planstrategic development plan Government’s policy of liberalization, Government’s policy of liberalization,

privatization of assetsprivatization of assets Relative importance of tourism to the Relative importance of tourism to the

national economy and imagenational economy and image Development of super regional groupsDevelopment of super regional groups Recognition of private sector’s roleRecognition of private sector’s role Globalization and the emergence of Globalization and the emergence of

multi-national corporationsmulti-national corporations Community involvementCommunity involvement

The African SituationThe African SituationProblems of Africa’s TourismProblems of Africa’s Tourism Political factorsPolitical factors Market positioning/budget provisionMarket positioning/budget provision Human resource developmentHuman resource development CooperationCooperation Health & SafetyHealth & Safety OrganizationalOrganizational Private sector & business confidencePrivate sector & business confidenceProspects for PPPsProspects for PPPs Jointly steer tourism growthJointly steer tourism growth Catalyst & withdrawal policyCatalyst & withdrawal policy PromotionPromotion Impacts of TourismImpacts of Tourism InvestmentInvestment National Tourism OfficeNational Tourism Office

Problems to be addressedProblems to be addressed Leadership at the highest (prime ministerial, Leadership at the highest (prime ministerial,

presidential or reigning monarch) level of presidential or reigning monarch) level of government, to have a vision for tourism and government, to have a vision for tourism and to set up supportive frameworksto set up supportive frameworks

Recognition of the economic value of tourism, Recognition of the economic value of tourism, as reflected in development plansas reflected in development plans

Engagement of major companies, e.g. airlinesEngagement of major companies, e.g. airlines Active financial involvement by all partiesActive financial involvement by all parties A goal-oriented approach to getting things A goal-oriented approach to getting things

done, setting targets, measurement and done, setting targets, measurement and monitoringmonitoring

Involvement of local communitiesInvolvement of local communities

Problems to be addressedProblems to be addressed A long-term perspective – tourism planning A long-term perspective – tourism planning

and management needs a long term and management needs a long term approach, and is not well serve by frequent, approach, and is not well serve by frequent, politically motivated changes of approachpolitically motivated changes of approach

Concern for sustaining national heritage, Concern for sustaining national heritage, cultural, social and natural environmentscultural, social and natural environments

A financially and economically realistic A financially and economically realistic approachapproach

Clarity over roles and responsibilities of all Clarity over roles and responsibilities of all participantsparticipants

Creativity, innovation and a willingness to Creativity, innovation and a willingness to try things outtry things out

Information technology companies, and Information technology companies, and manufacturers of high quality consumer manufacturers of high quality consumer brandsbrands

Commitment to open markets and skies, to Commitment to open markets and skies, to liberalize and privatizeliberalize and privatize

ConclusionsConclusions

No standard formatNo standard format

Wider representationWider representation