the fifth summit 3-5 december 2003

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Managing change :
the public-private partnership as a key factor of success

Managing change


The tourism sustainability model of the Tourism Summits Chamonix Mont-Blanc

An interdisciplinary sustainability model for tourism is one tangible result of the four-year cycle of Chamonix Mont-Blanc conferences. Graphically the model has the same outline as Mont-Blanc. Content-wise it has objectives which reflect basic human needs, in the sense of the Maslow pyramid. Foremost among these needs is the protection of the resources that make tourism possible, the full development of endogenous tourism growth potential, improvement in the quality of life, and a reinforcement of cultural diversity (Figure 1).

Figure 1 : The tourism sustainability model of the Tourism Summits Chamonix Mont-Blanc

Sustainable development essentially means preventing the unnecessary wasting of limited resources, at the same time reducing environmental pollution. In tourism it means finding the "golden mean" between conservation of resources and their development. The natural environment and the cultural environment do of course have intrinsic value per se. But public opinion needs to be made aware of the need for the maintenance and care of these resources and visitors must be prepared to pay a little extra for experiences in nature.

In economic terms it is a question of increasing the value added per guest with the help of an attractive package of services. The limitation of quantitative growth which these inevitably means can contribute to an improvement in the quality of the services offered in tourism locations. Defined in this way qualitative growth is possible when unforgettable experiences are offered in unique cultural surroundings.

Principles of environment-friendly tourism development

When it comes to the implementation of sustainable development objectives in tourism the established principles of environment policy play a key role. Assessment of the impact of tourism investments, the principle of due caution and the principle of cause and effect, as well as agreements negotiated between various actors and the authorities are among the most important principles (Figure 2).

Figure 2 : The principles of environment-friendly tourism development

The sustainability of major tourism projects should be measured with the help of cost-benefit analysis taking into account the opportunity costs. For area planning in general and conservation of the countryside preventive legal measures are the most economically effective way of meeting objectives. Wherever possible the "polluter pays principle" should also be made use of in the tourism sector. Finally when conflicts arise, negotiations between the actors and the authorities often make more sense than the unilateral introduction of "command and control" measures.

Public-private partnership

In tourism there are public as well as private actors involved in the development and marketing of goods and services. With the collapse of the planned economy and the triumphant advance of the market economy tasks in many traditional areas of government responsibility are increasingly being delegated to operators in the private sector. This collaboration is known as the "public-private partnership". The authorities transfer certain tasks of government to others on the basis of concessions, performance agreements and co-operative ventures. The idea is to operate more close to the market and to achieve greater cost effectiveness.

In tourism institutionalised co-operation between the public and private sectors has long been a fact of life. The public-private partnership can help to obtain economies of scale and scope at the level of the destination. In such circumstances it is possible to compensate for the difficulties which are due to tourism's fragmented structure and the small size of operators in the destinations. The promotion of resorts by tourism organisations and the financing of infrastructure and superstructure can be handled by organisations in either the public or the private sector. The public agencies concerned promote co-operation throughout the tourism sector (Figure 3).

Figure 3 : Public-private partnership (PPP) - Needs of a fragmented sector

There are certain hidden institutional risks for the state however. A great many free riders benefit from the services without making any financial contribution. The authorities are also confronted by opportunistic behaviour. The managers of the hived off institutions can use their superior knowledge of the market to reinterpret the agreed goals in ways that best suit them. They do not always guarantee the efficient performance of the services expected from them.

For this reason there have been efforts in the United States as the country that invented public-private partnerships to turn the clock back and to "reinvent government". A number of economists support these efforts. They are of the opinion that co-operation between the state and the operational sector neither increases competition nor improves efficiency. In their view the private sector only likes to involve the government in running the less profitable businesses.

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