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1. < < < < < An introduction to the Tourism PPP. The Turespaña experience < < < < < Joan-Carles Cambrils Cabinet Chief of the Spanish General Directorate of Tourism Moscow, 15 March 2010

2. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

3. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

4. 1.1. DEFINITIONS OF PPP (1) • Legal forms of cooperationbetween public authorities and the world of business which aim to ensure the funding, construction, renovation, management or maintenance of an infrastructure or the provision of a service. • (source: GREEN PAPER, European Commission).

5. 1.1. DEFINITIONS OF PPP (2) • A cooperativeventure between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks and rewards. • It relates to the provision of public services or public infrastructure. • Second, it necessitates the transfer of risk between partners. • (Source: The Canadian Council for Public-Private Partnerships)

6. 1.1. DEFINITIONS OF PPP (3) • Forms of cooperation between Public and Private Tourism Agents in different levels of commitment: low participation, projects cooperation or stable partnership.

7. 1.1. DEFINITIONS OF PPP (4) PUBLIC PRIVATE • An agreement between private and public sector agents to undertake a particular project in line with at least one of the two principles below: • Joint decision-making. • Joint risk/financing.

8. 1.2. SCOPE OF TPPP • General issues about the tourism system. • Tourism marketing (mainly Communication, research and product development) • Tourism Qualitypolicies. • Education and trainning

9. 1.3. FORMS OF TPPP PPP in Tourism Decision/Management SOFT IMPACT Agreements Advisory bodies Public Incentives Association Foundation NTO’s, Autonom. Organism, Institute, Tourist Boards Consortium STRONG IMPACT NTA’s, Public Administrations Societies, Corporations 100% PUBLIC 100% PRIVATE

10. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

11. 2. REASONS FOR PUBLIC/PRIVATE PARTNERSHIP 1st reason: The best tourism experiences enjoy public and private goods and services. • Many environmental and cultural goods (that are tourism attractions) are public goods (non excludability, non rivality). • Particular TPPP can reduce or avoid the “parasitism” and the “lost of communal goods”

12. Privategoods Publicgoods

13. 2nd reason: External effects (+ and -) caused by tourism activity. “Upset somebody’s welfare without his consent” • ¿Why the external effects happens? • The general welfare balance the environmental • negative effects. • It’s difficult to quantify the negative/positive effects in money. • The property rights are not clearly defined.

14. (cont.) 2nd reason: External effects (+ and -) caused by tourism activity. A) Awarenessof the problem with public campaigns: ethic change. B) Negotiation by those involved, stipulating a price for welfare o discomfort. C) Penalize or grant for the external effects. Private/Public agreements for solutions to the external effects: Effect of a + externality

15. Cambrige (Eng)

16. Number of tourists Rejuvenation Stagnancy Consolidación Downhill Development Implication Exploration Time 3rd reason: the economic - touristic cycle of destination: Long term medial costs are increasing.

17. Long term global medial cost of tourism production, consequence of the law of decreasing marginal productivity • N.B. the economic downturn accelerates this commitment: more efficient choice of public/private investments and mk actions Global medial cost (short term) New destination Mass destination Medium size destination (long term) Q= trips or inclusive tours Global medial cost = explicit costs + opportunity costs

18. In order to correct this problem, Turespaña has promoted the consortiums for requalifying a few mature destinations

19. 4th reason: sustainability. • Next generationshould be able to use the same amount of natural capital. • People and NGOs are endogenous resourcestaking important economic decisions. • New culture/new governance of tourism that supports Turespaña: shared Leadership with all the actors. • Spanish Tourism Council • Mesa de la calidad(Quality Advisory Council)

20. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

21. 3. EXAMPLES OF PUBLIC-PRIVATE PARTNERSHIP SPAIN (national level) • Turespaña: autonomical body for marketing: 100% public. • Segittur: a 100% public national company for research and new technologies. • Paradores: a 100% public national hotel company, with nearly a 100 establishments, most of them monumental buildings, located in strategic places. • Advisory bodies and consortiums: TPPP

22. 3. EXAMPLES OF PUBLIC-PRIVATE PARTNERSHIP SPAIN (local level) • Convention Bureau: non-profit making associations. • More than a 100 local constituted or in process TPPP (with a Turespaña grant).

23. 3. EXAMPLES OF PUBLIC-PRIVATE PARTNERSHIP • Visit London: Public Limited Company, P-P shareholders • Berlin Tourismus Marketing Gmbh: 85% private capital, 15% public capital (land of Berlin) • Amsterdam Tourism & Convention Board (ATCB): Private non-profit association set up with public and private capital. Depended on by five private companies with legal personality (marketing, bookings, congresses, information and advisory). • Wonderful Copenhagen (WOCO): private non-profit entity (business foundation) with public/private capital. • Marketing Manchester: commercial company with 50% public/private capital (source: FEMP)

24. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

25. 4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA 4.1. The 2020 Spanish Tourism Plan is a PPP outcome Allpublicadministrations and allagents in theindustry are committedtomakingtheSpanishTourismSystem more competitive and sustainableby 2020 forthewellbeing of thewidercommunity. WHAT'S THE PLAN? Throughanopen debate betweenthepublic and private sector to examine Spain's position and tacklethechallengesposedby new trends. HOW WAS IT DONE? Over35,000tourists Over100industryexperts Over2,000industryrepresentatives Allpublicadministrations WHO TOOK PART?

26. 4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA 4.2. Spanish Council of Tourism • A TPPP, the Spanish Council of Tourism approved the 2020 Plan. It was officially supported by the Autonomous Community Conference and the National Government. • 54 MEMBERS (19 from Autonomous Communities, 4 from Spanish Federation of Municipalities and Provinces (FEMP), 4 from the State Tourist Board, 6 from the Spanish Confederation of Business Organisations (CEOE), 6 Chambers, 4 Syndicates, 9 of repute) • It has advisory functions • Frequency: It meets usually twice a year.

27. 1. New Tourism Economy Knowledge Innovation Capturingtalent 2. Value for customers 3.Sustainability 4. Competitive environment Experimental Spain Tourism, the environment and society Legal framework and simplification 2020 positioning Tourist destination planning and management Cooperative culture Helping to sell Competitive Industry-wide Plans Regeneration of mature tourist destinations Perceived quality Accessibility of tourism Deseasonalisation and redressing regional balance 4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA 4.3. SpanishTourismStrategies2020 4. Sharedleadership

28. 4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA 4.3. SpanishTourismStrategies2020 • Knowledge / Innovation (e.g.) • Agreement with the National Council of Chambers (INTELITUR) MK research • Agreements with the InstitutoTecnológicoHotelero - CEHAT training • Boosting PP innovation clusters (THINKTUR) innovation

29. 4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA 4.3. SpanishTourismStrategies2020 • Building a more sustainable / more competitive model of tourism (e.g.) • Boosting quality, quality incentives (Q label, Instituto de la CalidadTurísticaEspañola) • Plans for re-qualifying mature destinations with local PP partners

30. 4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA 4.3. SpanishTourismStrategies2020 • Building value for customers / Helping to sell (e.g.) • Agreements with companies to jointly fund product campaigns. • Joint destinations promotion with PP tourist destinations/brands • Agreements with PP partners for press trips.

31. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

32. 5. FORMS OF PUBLIC-PRIVATE PARTNERSHIP AT TURESPAÑA • PP signed Agreements - Agreements, arrangements for dissemination, raising awareness • Agreement with TT.OO. to recommend Q qualified establishments - Agreements, arrangements for Promotion/helping to sell. - CoMK with Air Europe, Monarch, TUI, REWE, ABTA,…

33. 5. FORMS OF PUBLIC-PRIVATE PARTNERSHIP AT TURESPAÑA • PP signed Agreements - Agreements, arrangements for Training/quality - Co finance the biggest Tourism postgraduate university network- SICTUR - Agreements, arrangements for Sponsorship - Eurobasket 2014, Madrid Tennis Open, Pan European Golf, Liverpool F.C., Spanish Basketball and Football Federations and Moto GP.

34. 5. FORMS OF PUBLIC-PRIVATE PARTNERSHIP AT TURESPAÑA (ii) Advisory entities • Creation and participation in the Spanish Council of Tourism (for advisory purposes) • Quality Advisory Council • Group of MK experts asses over the new Spain creativity

35. 5. FORMS OF PUBLIC-PRIVATE PARTNERSHIP AT TURESPAÑA (ii) Incentives to the private participation in public programs • Co-finance Q label • Support European Charter for Sustainable Tourism in Protected Areas (ECST) • Support to innovation tourism clusters (25 AgrupacionesEmpresarialesInnovadoras) • CofinanceIT trainnig(Plan Avanza) • Support to the creation on Local TPPP

36. 5. FORMS OF PUBLIC-PRIVATE PARTNERSHIP AT TURESPAÑA (iv) Participation in legal institutions, sharing responsibilities to all levels, like consortiums • Mallorca, Costa del Sol, Gran Canaria

37. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

38. 6. RESULTS OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA (2009) • 260 agreements with private companies and associations to carry out joint activities • Total investments of €63 million (43% Turespaña-40% private sector-17% other public administrations) in co-MK. Induced private/other public investments: €31 million. • Over 2,500 firms hold the Q quality label • 30 innovation clusters set up (€3.8 million in funding) • 38 Projects of the Avanzatraining plan (€4 million in funding) • 17 competiveness plans and 3 destination requalifying plans

39. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Observed pros and cons • Recommendations

40. 7. OBSERVED PROS AND CONS CONS PROS • Need of an strategy results oriented: P&P have different goals. • Lack of experience in PP cooperation • Lack of institutional support • Need of market incomes • DisproportionateGovernment role • Powerfultool for implementing policies more effectively: MK, quality, awareness, innovation. • Share of information, resources, risksandrewards. • Move actors to a new cooperation culture .

41. CONTENTS • Characteristics of the public-private partnerships • Reasons for public-private partnership • Examples of public-private partnership • Scope of public-private partnership at Turespaña • Forms of public-private partnership at Turespaña • Results of public-private partnership at Turespaña • Pros and cons • Recommendations

42. 8. RECOMMENDATIONS • Understand why a TPPP. • Share vision and objectives • Adapt national/regional laws • Share risks • Professional management • Team work • Mesuaredresults. • Believe on your partnership: aPP effective cooperation requires a decided and positive attitude

43. < < < < < THANK YOU VERY MUCH FOR YOUR ATTENTION < < < < < www.spain.info www.tourspain.es joancarles.cambrils@tourspain.es