The Role of Public-Private Partnership Contracts in Tourism Industry Development (original) (raw)
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Abstract Tourism is considered as a driver of economic development globally. It is complex sector that touches almost all other sectors in terms of strategy, institutional framework, and actual implementation. As a result sustainable tourism development needs huge investment whereby financing may become very difficult for developing countries with increased population that needs basic infrastructure and public service. PPP usually suggested as a viable model to finance tourism development where tourism projects are financed and operated through between government and one or more private sector companies. Considering its tourism resource base, Ethiopia is positioned at a top of the Sub-Saharan African countries along with South Africa with nine world heritage sites. It has also more 15 national parks and varied tourism endowments not register as world heritage site by the UNESCO. But its tourism development is at its initiating stage. On the other hand developing countries like South Africa, Turkey and Tanzania, who integrate PPP in to their tourism development strategies able to reach the upper tourism development stage, while the effort to develop the abundant tourism endowments of Ethiopia through PPP seems foggy with missed opportunity. This study adopted an exploratory research design using qualitative approach to get insight about the potential, practices, constraints and prospects of PPP for Tourism Development in Ethiopia. Relevant literatures were critically reviewed, practical experiences of selected developing countries were examined, and insight stimulating analyses were captured by interviewing purposively selected professionals and practitioners based on strategic, contextual and operational dimensions of PPP as development approach. The findings of the study indicate that though there are PPP initiatives by donor agencies, and as consultation forum by the government, PPP is not considered as development tool with practical collaborative arrangement whereby the government use the financial and technical resource of the private sector for sustainable tourism development. From strategic point of view, there is no PPP specific policy and strategy. In respect to the context of tourism sector, PPP is not integrated in to the Tourism Development Policy and subsequent long, medium, and short term strategies. Operationally, there is no PPP authority and PPP procurement laws that can guide adaptation and implementation of PPP tourism projects. Key words: Privatization, Public-Private Partnership, Public Procurement, Sustainable Tourism Development, Tourism Development Stages, PPP Approaches, PPP Models
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Public-Private Partnership (PPP) in public administration studies is important in providing services to the public (public services), because PPP as a study in public administration can provide quality, effectiveness and efficiency in providing public services. The involvement of the private sector in public service affairs is because the private sector is considered to have better resource capacity, and for the public sector it can reduce responsibilities/burdens, as well as the efficiency of resources and costs/budget. One of the models used is the Life Cycle Contract (LCC) model to provide continuous cooperation contracts. This research method uses a qualitative approach to explain the LCC model in public-private cooperation in tourism development. Data collection was carried out through in-depth interviews, observation and documentation study. Data processing and analysis techniques are carried out in three stages, namely: data reduction, presentation and conclusion drawing. The informants in this study were as follows: (a) the Department of Culture and Tourism, Kab. North Toraja; (b) Owner/Manager of Ke'te Kesu' and Lempe Negeri Diatas Awan; (c) Visitors. The results show that the LCC model in the cooperation agreement (MOU) between the private sector and the government shows the private sector to be the initiator in the development of tourist objects and carries out development starting from design, development, finance, and maintenance in the early stages before any collaboration with the government. After the cooperation agreement was signed, the government began to contribute by providing facilities and infrastructure assistance in managing tourist attractions. In addition, this collaboration is for the government to collect ticket retribution from tourist objects with a share of 40% for the government and 60% for the private sector or managers.
Public-Private Partnership To Increase Economic Growth of Tourism Sector
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The performance of the tourism sector in Kedungsepur region increases significantly viewed from the indicators of the number of tourism objects, labors, tourists, income, and the Gross Regional Domestic Product (GRDP) of the tourism sector, but the contribution of the tourism sector to the GRDP and the average of the tourists’ length of stay decreases. This shows that the performance of the tourism sector in Kedungsepur region decreases and the Public Private Partnership has not been optimallee implemented. Therefore, the researchers use the analysis of SWOT and AHP to find the strategy alternatives to increase the performance indicators of the tourism sector. The research result of the SWOT analysis shows that the development of tourism sector in Kedungsepur region is at the quadrant III, which supports the Turn Arround strategy by applyinga strategy formulated in the matrix of SWOT. And the research result based on the AHP analysis shows the priority based on the criteria of aspec...