public private partnerships in tourism. tourism in madhya pradesh: - pilgrimage - heritage -...

PUBLIC PRIVATE PUBLIC PRIVATE PARTNERSHIPS IN PARTNERSHIPS IN

TOURISMTOURISM

Tourism in Madhya Pradesh: Tourism in Madhya Pradesh:

- Pilgrimage Pilgrimage - Heritage Heritage - Cultural (Recreation and Leisure)Cultural (Recreation and Leisure)- AdventureAdventure- Economic (Nature and Wildlife)Economic (Nature and Wildlife)- RuralRural

Sustainable Tourism – Poverty AlleviationSustainable Tourism – Poverty Alleviation

7 mechanisms suggested by UNWTO: 7 mechanisms suggested by UNWTO: 1.1. Employment of the poor in tourism Employment of the poor in tourism

enterprise;enterprise;2.2. Supply of goods and services to Supply of goods and services to

tourism enterprises by the poor or by tourism enterprises by the poor or by enterprises employing the poor;enterprises employing the poor;

3.3. Direct sales of goods and services to Direct sales of goods and services to visitors by the poor (informal visitors by the poor (informal economy);economy);

4. Establishment and running of tourism enterprises by the poor - e.g. micro, small and medium sized enterprises (MSMEs), or community based enterprises (formal economy);

5. Tax or levy on tourism income or profits with proceeds benefiting the poor;

6. Voluntary giving / support by tourism enterprises and tourists;

7. Investment in infrastructure stimulated by tourism also benefiting the poor in the locality, directly or through support to other sectors.

PUBLIC PRIVATE PARTNERSHIPPUBLIC PRIVATE PARTNERSHIP

To overcome infrastructure bottlenecksTo overcome infrastructure bottlenecks to hasten infrastructure developmentto hasten infrastructure development

• Government provides the Government provides the statutory/administrative backup to statutory/administrative backup to infrastructure projects infrastructure projects

• Private sector provides finances and Private sector provides finances and manages these projectsmanages these projects

TOURISM – PPP BENEFITSTOURISM – PPP BENEFITS

develop new destinationsdevelop new destinations

provide / augment necessary amenitiesprovide / augment necessary amenities

preservation of heritage sites preservation of heritage sites

promotion and marketing of destinationspromotion and marketing of destinations

PPP SEGMENTSPPP SEGMENTS

Infrastructure improvement;Infrastructure improvement; provision of support services and provision of support services and

equipment;equipment; Information dissemination and Information dissemination and

marketing;marketing; Training/capacity building of personnel Training/capacity building of personnel

(e.g. in eco-tourism areas)(e.g. in eco-tourism areas) Civil Societies management and Civil Societies management and

organizational developmentorganizational development

Role of Government Role of Government

Enabling policy formulation;Enabling policy formulation; Legislative and institutional reforms;Legislative and institutional reforms; Administrative capacity building;Administrative capacity building;

Identification of thrust areas / projects;Identification of thrust areas / projects; Risk assessment and mitigation;Risk assessment and mitigation; Project clearance;Project clearance; Ensure transparency and welfare;Ensure transparency and welfare;

Private partner’s responsibilitiesPrivate partner’s responsibilities

Efficient project management;Efficient project management;

Corporate and social responsibility;Corporate and social responsibility;

Ecological sustainability;Ecological sustainability;

Sourcing financesSourcing finances

Project development fundsProject development funds Public equity participationPublic equity participation Viability gap funding (20% - 40%)Viability gap funding (20% - 40%) Financial institutionsFinancial institutions

Funding mechanismsFunding mechanisms

so let’s set the ball so let’s set the ball rolling….rolling….