Planeta Forum

[planeta]

TOPIC: Private sector/Public sector collaboration
1. Policy development for protected areas
2. Regional planning
3. Market research and development

MODERATOR: Steve Noakes


SETTINGS: Active participants can reply to this topic

PARTICIPANTS:
http://www.planeta.com/ecotravel/tour/emerging.html#part

REFERENCE

Ecotourism Emerging Industry Forum (Nov 1-18, 2005)
http://www.planeta.com/ecotravel/tour/emerging.html

[planeta]

Discussion is invited in this topic. We are are seeking specific examples of private sector/public sector collaboration, including policy development for protected areas, regional planning and market research and development

[Steve Noakes]

Where tourism is still at an early stage of development, Government generally plays a more active and leading role in its development and promotion. As it grow as an economic force and its commercial value also increases, the private sector become very interested in assessing commercial risk and investment/operations opportunities to create profits.

This on-line Forum gives us the opportunity to explore issues such as:

1. Why are public/privates sector partnerships for tourism desirable and necessary? 2. What does each segment want to achieve from the partnership? 3. In what different ways can partnerships evolve in more controlled & centralised economies rather than more free market economies? 4. How do destinations achieve the right balance for their circumstances from public and private sector partnerships? 5. What conditions must exist before destinations can develop effective public and private sector partnerships?

Let's have a global exploration of some of these issues on-line.

Steve Noakes

[Steve Noakes]

Canada: In the mid-1990's the Canadian Tourism Commision was formed, as a partnership between the national and provincial governments and the private sector. Previously Tourism Canada was 100% Government funded, but by 1999, the new CTC had 46% of its core budget provided by overnment & 54% in partner funding.

Cambodia, Vietnam and Lao PDR are currently grappling with the best way for each to individually established private public sector partnerhips for national Tourism Marketing & Promotions Boards. Vietnam and Lao PDR still have a very centralist form of communist Government, whereas Cambodia has a moved more rapidly into a free market economy situation where the private & public sectors are still working out their best path to move from 'relationships' to 'partnerships.'


California Travel & Tourism Commission, Tourism Queensland (Australia) are example sof State based private/public sector partnerships for tourism marketing. In both cases State allocations for tourism marketing funds are extended in cooperative marketing activities raised by industry wide initiatives.

If you have any other destination examples, please post them.

Steve Noakes

[Steve Noakes]

The Private sector/Public sector collaboration session for the on-line Forum aims to focus on

1. Policy development for protected areas
2. Regional planning
3. Market research and development

Where tourism is still at an early stage of development, Government generally plays a more active and leading role in its development and promotion. As it grows as an economic force and its commercial value also increases, the private sector become very interested in assessing commercial risk and investment/operations opportunities to create profits.

Apart from considering examples from different regions of the world, this on-line Forum gives us the opportunity to explore issues such as:

1. Why are public/privates sector partnerships for tourism desirable and necessary?
2. What does each segment want to achieve from the partnership?
3. In what different ways can partnerships evolve in more controlled & centralised economies rather than more free market economies?
4. How do destinations achieve the right balance for their circumstances from public and private sector partnerships?
5. What conditions must exist before destinations can develop effective public and private sector partnerships?

A WTO Business Council report in 2000 revealed that experience in private-public sector cooperation around the world was rather limited except in the specific area of marketing and promotion, as well as some areas of product development and education training.

In countries which are transforming from more central economic control (e.g old communist states) to more open economies, there is a trend where stakeholders are recognizing that public-sector led marketing organizations are often less entrepreneurial and less effective in very competitive international marketplaces than one managed or led by industry itself ñ or as a collaboration between government and industry.


Steve Noakes

[oliver]

Hello, this is Oliver from Palawan, Philippines. Steve's examples bring me to share an experience I had here in trying to establish PPPs (Public-private-partnerships) in tourism. It seems to me that partnerships need a certain critical mass of players from the private sector so that checks and balances of power can be more efficient, and so that costs/investments can be shared. In Northern Palawan, there are still too few professional tourism investors, so that some players control the game and others, who could assist in some initiatives but would not lead them, stand aside and wait. Also, when your biggest player has a 120-room resort, sharing costs is hard...

Also, in my experience the organizational culture of the government agencies involved in a prospective partnership is very important. Often, newer agencies led by people with at least some private sector experience make better partners than large, bureaucratically led agencies. The issue, then, is to select the right partnership architecture.

I'd like to ask Steve for more information on Laos, Cambodia and Vietnam, relevant examples for the Philippines. What's working there, and what is not, and why?

[Miker]

Hi, this is Mike Robbins from the Tourism Company in Toronto Canada.There are some good examples of partnerships between the government and First Nation communities in Canada. Three good models are discussed below. The first and third are successful partnerships between First Nations and the government, in both cases a federal government agency. The second is a partnership between First Nations and government agencies, NGOís and non-native communities.

The Quuías West Coast Trail Society
The Quuías West Coast Trail Society is a non-profit joint venture among the Pacheedaht, Ditidaht and Huu-ay-aht First Nations, each of which have Reserve Lands along the famous West Coast Trail. Quuías has a joint venture relationship with Parks Canada for the planning and management of the West Coast Trail, one of the three main areas within Pacific Rim National Park on the west coast of Vancouver Island. The joint venture was initiated in 1996 when the Chiefs of the three First Nations decided that they should take over contracting within the Park. The relationship is unique in that it covers more than just the management of the Park. The relationship is a business partnership with career training for positions within Parks Canada and mentoring assistance for new Aboriginal business ventures. Some of the funding comes from Aboriginal Business Canada (ABC). The relationship allows for the individuality of each community and the differing levels of economic development progress.

The business relationship with Parks Canada has four major components as follows:
ï Service contract providing dollars for clearing, brushing, trail maintenance and interpretation
ï Aboriginal employment initiatives covering training and development of cultural heritage programming
ï MOUís with each community to help in developing cultural tourism in areas within and surrounding the Park
ï Contracts for operating ferry services and for leasing land for the trail heads on Reserve
Quuías is governed by a Board of Directors which is composed of representative from each of the three First Nations along with an ex-officio Parks representative. An annual workplan is prepared and presented to the Board by the Managing Director. A three year Business and Operations Strategy guides the relationship with Parks Canada.

In this partnership Quuías and Parks Canada have recognized that treaty negotiations and the settlement of treaty lands is extremely important and will develop at its own pace. Quuías is managed separately from the treaty process, and the contract stipulates that the initiative will not prejudice or otherwise affect any party involved in any claims or treaty process agreed to by Canada, BC and the First Nations.

Currently each of the three First Nations has two Trail Guardians working along the trail and 1 interpreter. The ìQuuías Approach to Training and Development of Aboriginal Peopleî is an official employment equity program for the Pacific Rim National Park.

The following are the six objectives for Quuías and Parks Canada:
1. Facilitate the development of First Nations businesses through serving as a point of contact to match services and clients and to develop a long term tourism development vision for the Trail and surrounding area.
2. Foster a greater understanding among visitors of the ìcultural landscapeî through things like interpretive programming.
3. Acquire necessary long term funding and develop services that generate internal revenue for member First Nations by marketing Quuías and Quuías member businesses.
4. Improve Quuías management and working relationship, and communication between Quuías, the three First Nations and Parks Canada through yearly planning sessions, regular meetings with the Board and mailings.
5. Revise the management planning once capacity building goals are reached.
6. Maintain and/or restore ecological and cultural integrity of the WCT and surrounding areas by performing environmental assessments on new projects.


Clayoquot Sound World Biosphere Reserve
Just north of Pacific Rim National Park is Clayoquot Sound which was established as a UNESCO World Biosphere Reserve. The development of the Biosphere reserve provides a useful model as well in that the First Nations communities (working alongside other communities) were an integral part of the designation and the development of the Biosphere strategy. The community vision for the Biosphere is as follows:
The Community of the Clayoquot Sound UNESCO Biosphere Reserve Region will live sustainably in a healthy ecosystem, with a diversified economy and strong, vibrant and united cultures while embracing the Nu-chah-nulth First Nations living philosophies of Isaak (living respectfully), Qwaíaak gin teechmis (life in balance), and Hishuk ish tsíawalk (everything is one and interconnected).

Together the National Park and the Biosphere Reserve form the core attractions for the west coast destination region which attracts significant tourism visitation every year.

Haida Gwaii, Queen Charlotte Islands
In 1981 the Skidegate Band Council and the Haida Nation set up the ìHaida Watchman Programî in response to concerns about the potential for vandalism and other damage to old Haida village sites. The program began with several volunteers using their own boats to travel to the sensitive sites where they would camp for the summer season. They acted as both guardians for the preservation of the sites natural and cultural values, and they presented visitors with an introduction to Haida culture.

A total of more than 500 archaeological and historical sites have been documented in the Gwaii Haanas, and it is believed that at the height of the Haida culture there were as many as 120 Haida villages and camps. The population was estimated to be some 10,000 ñ 30,000 at that time. In 1774 the first Europeans arrived. Over the ensuing 100 years the Haida population was almost wiped out by disease. By 1900 there were only 600 people remaining in 2 permanent villages. The western red cedar was the cornerstone of the Haida culture.

During the 1970ís and 1980ís the environmental and Haida communities waged a battle to stop logging activity in the southern portion of the islands. In 1985 under the authority of the Haida Constitution the South Moresby area was designated a Haida Heritage Site. Logging continued until 1987 when Canada and British Columbia signed a Memorandum of Understanding to designate the Gwaii Haanas as a National Park Reserve. The resulting South Moresby Agreement committed $106 million to the development of national parks for both the marine and terrestrial areas; compensation of forestry interests; the creation of a regional economic development fund; and a forest replacement account.

Following 6 years of negotiation the Gwaii Haanas Agreement was signed establishing a co-operative management relationship. Common objectives for the care, protection and use of Gwaii Haanas were defined. It also provided the framework to make recommendations on planning, management and operations issues to both the government of Canada and the Council of the Haida Nation. This framework provided for the formation of the Gwaii Haanas Archipelago Management Board, with equal representation from the Haida and Parks Canada, the body charged with the consensus decision making process.

The agreement stipulates the following:
- The Council of the Haida Nation has designated the lands and waters in the Gwaii Haanas area as a Haida Heritage Site
- The government of Canada intends to designate certain lands and non-tidal waters in the South Moresby area as a National Park and a National Marine Park
- The Archipelago is to be maintained and made use of so as to leave it unimpaired for the benefit, education and enjoyment of future generations
- An objective is to sustain the continuity of the Haida culture
- Traditional Haida sustainable activities will continue to be allowed in the area
- The Minister of the Environment funds the participation of the Haida Nation in the AMB as well as providing funding for contracts relating to operation and management of the Archipelago
- Haida individuals are encouraged and given opportunities for employment with the Canadian Parks Service

Today the Haida Watchmen program has five sites in operation and employs 15 full time equivalent employees for the summer months. The visitor management strategy developed by the AMB defines an annual quota of 33,000 visitor days. Visitor numbers to the Haida village sites is limited to 12 at a time. Development is underway for the QayíIlnagaay Heritage Centre as a focal point for sharing the Haida culture. The Qay Centre will house an extended museum, an interpretive centre, a teaching centre, a program management centre and a gift shop. Total capital cost is estimated at $13 million with approximately $7 million coming from Parks Canada.

Lessons Learned
Each of the above case studies illustrates a successful partnership between government and first Nations in protecting coastal environments and furthering economic opportunities for local communities in balance with the protection. It would appear that successful partnerships have the following qualities:
 Equal voice for partners
 Respect and understanding of cultural differences (i.e. timeframes, language, traditional knowledge etc)
 Business relationship
 Proper resourcing for First Nations involvement
 Employment opportunities as well as business development opportunities
 Cultural tourism development
 Built in capacity development and training
 Sharing of skills
 Respect for sacred sites as traditional territory

[Steve Noakes]

[Steve Noakes]

[George Duffy]

Mike has given some excellent examples of collaboration between aboriginal communities and Canadian governments to set up ways of protecting the culture and the local environment.

I know in the Queen Charlottes there are a few sailing charters and the like coming in. I know too that there are high end cruise groups coming to the islands as shore excursions from the mainland.

What I'd like to know, from the concept of ecotourism being an ecomonic input:

Are any of these areas economically self sustaining?
Is there any linkage between income generated from tourism and expenditures?
Have there been any examples of local enterprise, investment or collaborative ventures arising from these agreements which the local people earn income?

I really like Jan's example in Mongolia where the local people started their own tour company which they now hire for various services. I think it is really important to somehow awaken, accelerate and facilitate this entrepreneurial spirit because there is an awful lot of potential wreckage out there if donors dry up.

[oliver]

Great that this topic is picking up! Two quick points:
- I've learned from so many successes in Canada, particularly involving the development of effective sustainable tourism partnerships between government and indigenous communities. George's response to Mike's case studies brings me to ask to what extent some of those examples are dependent on significant financial support from government - the point also made when George talks about reduced donor contributions. I guess one of the critical indicators of successful PPPs is how much public investment leveraged private sector investment, and on a larger view, revenues... Mike, how would you evaluate the initiatives from this point of view?

- On Steve's response, I guess one of the things coming up in PPPs is whether we can effectively speak of public as separate from private, when realities are often quite complex - particularly in developing countries and economies in transition. Let's face it, in poorer countries government money represents the majority of the economy - in Palawan, estimates of a friend of mine who's the manager of the biggest local bank is 65% public - and this is the provincial capital... In most developing countries, the government started the first hotels, operated them and controlled tourism overall. You would still be surprised how many hotels still have a large share of public ownership. Just 25 years ago, the biggest 2,500-room hotels belonged to Intourist in Russia! The question gets more significant if we consider that many upcoming destinations still have strong cultural influences from state-controlled communist systems. Think first of China, arguably the world's largest upcoming destination and origin, then think of Vietnam, Russia and Eastern Europe. I guess what I mean is that the important point in tourism PPPs in developing/transition economies is how much business/jobs are generated, and whether part of the revenue is set aside for public resource management (conservation, eco-efficiency, environmental management). We're going to have to be creative to establish new mechanisms and models for PPPs to adapt to those different circumstances - and not try to impose what worked in Europe and the US...

[Meganew]

Hi folks,

I was just reviewing all the posts. Thanks for picking up on this one now. I hope we can get more folks involved.

I posted a comment in Communities and Marketing about the creation of business alliances in order to handle more effective marketing and foster more partnerships between communities and local private tour operators.

Rather than cut and paste it again, perhaps you can take a quick look. But I find that in ecotourism in general we are not seeing effective business alliances - to deal with even the most desired business outcome - better marketing. And while in Cambodia or Philippines it may be difficult, there are plenty of players to make this possible in Latin America. I know there are many established public-private sector models in helping private sector to develop better marketing protocols. I am looking for ideas that would could apply in developing countries. While Australia and Canada probably have great models, they are technically based on conditions that are hard to replicate - as Oliver has noted elsewhere, so it is important to realize that when making suggestions.

What I want to foster in future - in my dreams! - are local or regional business aliances for ecotourism - that have CSR reporting (see my comments in Triple Bottom Line) and marketing components, that also foster techncial support for community alliances. This seems so logical to me. I realize that this may hard in locations where there is not a critical mass of ecotourism businesses. So keep in mind I am thinking about this for areas where there is a critical mass.

Could you possibly advise on how I might structure public-private partnership that could help build markets for ecotourism, incorporate reporting, and also support community development. What type of structure do you think goverments might be comfortable with and donors willing to support?

Thanks!
Megan

[oliver]

Just a thought replying to Megan's "wish", based on some contacts I've been having with the IFC, the private sector arm of the World Bank. As you probably have heard, they are one of the first agencies actually giving out soft loans and even grants to private sector players (also in tourism, as can be seen here in the Philippines with El Nido Resorts and with Inkaterra in Peru's Machu Picchu) to make destinations more sustainable. This is breaking a long paradigm of separating business (private sector, loans and profits) from "charity" donations for conservation and social development (grants, NGOs, a certain resistance against business mentality). They of course need to go hand in hand as well.

One clear way to create such business partnerships are LOANS!! If banks could agree to create credit lines based on a combination of criteria INCLUDING sustainability (apart from the obvious, solvency, feasibility, assets and the like), and if these lines could be tied in pipelines specifically designed for those regional "sustainable tourism" platforms... Like Megan, I like to dream!! But there are financial institutions examining this, and some trade associations could assist. Ideas?

[Miker]

George asked:
What I'd like to know, from the concept of ecotourism being an economic input:

[febo]

We must remember that whether we talk about developing or developed countries if we talk about regional planning we consider important infrastructure building and that this investments are usually done mainly or totally by public sector, at least at the beginning and to talk about some of the most efficient examples where less has been invested from public sector and more has been retributive to private sector I would mention the trans Canada trail coast to coast initiative where in some specific areas winter resorts have become all year destinations and variety of business have flourished along thousands of kilometers connecting a wide variety of tourism markets and destination, Chile, Spain and the US governments among many other countries are now developing serious strategies for green way planning and the main player for this to happen still public sector.