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Public Private Partnership Approach: An Alternative to Develop Algerian Tourism Investment

Asma Seffari

Department of Management, Oum El Bouaghi University, Oum El Bouaghi, Algeria

Abstract: This paper try to highlight the efforts made by the Algerian government to develop tourism sector by trying to reinforce its relationship with the private sector in order to benefit from this partnership in developing sustainable tourism. The results of the analysis showed that in recent years Algeria had realized the importance of tourism and grasped its imperative. This situation was featured by some initiatives from the public authorities in order to promote and develop this sector through the Public Private Partnership Plan for tourism which form the reference for a new policy adopted by the state and is a part of the national plan to develop the region in the prospects of 2030. But despite all these efforts, they are still considered not enough in comparison with the priority assigned by the government to other sectors.

Keywords: Algeria, Tourism investment, public sector, private sector, partnership

Citation: Asma Seffari, Public Private Partnership Approach: An Alternative to Develop Algerian Tourism Investment. Journal of Behavioural Economics Finance Entrepreneurship Accounting and Transport, 5 (1). 1-9. January 2017. doi:10.12691/jbe-5-1-1

1. Introduction

Tourism is often described as one of the world’s largest industries on the basis of its contribution to the development of countries in many ways, it is also known of its association with other sectors because of the complexity of its final product. Recently, partnerships have become a popular tourism strategy adopted by governments in many countries which seek to improve their economic situation and develop sustainable tourism. Collaboration is considered to be essential in moving the tourism industry toward sustainability and among the reasons that encourage such genre of collaboration between public and private sectors, pooling of knowledge, share of risks and resources, expertise, and more effective implementation.

In the other side, Algerian policy is still depending on the revenues of the hydrocarbon sector although the drop of prices, for this, the government should look for diversifying its income resources through adopting new strategies that help to pass the crisis and share this problem with partners by integrating them in improving all sectors and emphasizing on more investing in the tourism sector.

1.1. Statement of the Problem

All this lead us to ask this question: Has Algeria benefited from the public private partnership for the development of tourism investments and thus achieve sustainable development?

1.2. Research Questions

The study was guided by the following question:

• What is Private Public Partnership?

• What is the current state of tourism in Algeria?

• What is the role of Public Private Partnership in developing Tourism sector?

• What is the real impact of this partnership on promoting Algerian Tourism Investment?

1.3. Structure of the Study

In order to answer these questions, the present study has been organized in four main chapters:

• Overview about Private Public Partnership and Tourism Investment.

• Current state of tourism in Algeria.

• Public Private Partnership in Tourism.

• The contribution of Public Private Partnership in developing Algerian tourism investment.

1.4. Significance of Study

This study helps to clarify the real state of public private partnership in Algerian tourism sector and its direct contribution in improving this sector, which may help the policy makers to set a new policy correctly to enhance this sector by strengthening its relation with private sector.

2. Overview about Private Public Partnership and Tourism Investment:

In this section, we will try to define the main principals of the relationship between the public and the private sector and clarify what tourism investment is.

2.1 Introduction to Private Public Partnership:

In order to set a clear definition to Public Private Partnership (PPP), we can begin by looking at the meaning of these three words separately [1]:

The word Public means “of or provided by the state rather than an independent, commercial company.”

The word Private means “(of a service or industry) provided or owned by an individual or an independent, commercial company rather than the state.”

Finally, the word Partnership means “an arrangement in which parties agree to cooperate to advance their mutual interests”.

The above definitions lead us to say that Public-private partnerships (PPPs) are specific types of coownership and/or co-operation between public institutions and private enterprises which are formed due to some synergetic advantages and which usually share both risks and profits. Usually, the foundation is a contractual agreement between the public sector and profit oriented organizations [2].

According to Kim, Kim and Lee, PPPs are essentially partnerships between public sector organizations and private sector and corporate investors, for the purpose of conception, planning, funding, construction and supply of infrastructural equipment or exploration of services [3].

In more developed and detailed words, Public Private Partnership means an arrangement between a government / statutory entity / government owned entity on one side and a private sector entity on the other, for the design construction, financing and operation of public assets and/or public services, through investments being made and/or management being undertaken by the private sector entity, for a specified period of time, where there is well defined allocation of risk between the private sector and the public entity with clear agreement on shared objectives for delivery of public infrastructure and/ or public services and the private entity receives performance linked payments over the lifetime of the project for the use of the facility either from the public sector party or from the general public as users of the facility that conform (or are benchmarked) to specified and pre-determined performance standards, measurable by the public entity or its representative, with the facility remaining in the public sector ownership or reverting to public sector ownership as the end of the PPP contract [4].

From the above definitions, we conclude some general characteristics of PPP as follows [5]:

• Participants; a PPP fairly obviously involves two (or more) parties, and at least one of them has to be a public body. Each, however, needs to be a principal, capable of negotiating and contracting on its own behalf. All parties must make an organizational commitment to the partnership.

• Relationship; partnerships need to be enduring and relational. Governments buy goods and services, they give grants, and they impose fines and taxes. None of these transactions implies any real continuity of behavior. Even a public sector body was to use the same supplier year after year, this pattern would not be regarded as a partnership.

• Resourcing; each of the participants must bring something of value to the partnership. PPPs seek to draw on the best available skills, knowledge and resources, whether they are in the public or the private sector, and deliver value for money in the provision of public infrastructure services. For this to happen, each partner must transfer resources to the arrangement.

• Sharing; PPPs involve a sharing of responsibility and risk for outcomes in collaborative framework. This mutual responsibility contrasts with relationships between the public and private sectors in which the public body retains control over policy decisions after getting the advice of private sector entities. It also contrasts with relations between the public and private sectors that are primarily contractual in nature and involve essentially command relationship. In these cases, the private sector bodies are not partners in any real sense. There has to be a mutual interest and unified commitment.

• Continuity; underpinning the partnership will be a framework contract, which sets out the rules of the game and provides the partners with some certainty. Its existence enables the parties involved to make decisions without having to start from scratch each time and develop from first principals the rules that govern these interactions. While the PPP contract provides the basic architecture of the arrangement, it is necessarily incomplete and does not specify all components and allow for all outcomes. There must be shared values, a common understanding of priorities and policy objectives, and a good measure of trust.

2.2. Benefits and Risks of Public-Private Partnership:

Any partnership has benefits and risks, the benefits are the following [6]:

• Cost Reduction - With PPPs, governments are able to perform cost economy, not only for the construction of capital projects, but more importantly, in operating and maintaining services;

• Risk Share- With PPPs, the government may share the risks with a private partner. The risks may include excess costs, failure to meet the time limit for delivering a service, difficulties in complying with environmental regulations and others, or the risk that earnings may not be sufficient to pay for the operational and capital costs;

• Improve Service Levels or Maintain Current Service Levels - PPPs may introduce innovation in how delivery of the service is organized and performed.

• Earnings Improvement - PPPs may set user rates that reflect the true costs for a specific service. Public-private partnerships also offer the opportunity to introduce innovative income origins, that would not otherwise be available through conventional service providing methods;

• More Efficient Implementation - Efficiency may be achieved through the combination of several activities, such as creation and construction, more flexible acquisitions and hiring, faster approval for more efficient capital funding and decision making;

• Other Economic Benefits - Greater government involvement in PPPs may aid and stimulate the private sector and contribute to increased employment and economic growth.

As far as risks are concerned, we can state the following [7]:

• Loss of Government Control " PPPs, by their nature, imply the share of risks and decision-making between partners. PPPs that involve significant investment and risks by the private partner often mean greater partner involvement in decisions on how services are delivered, as well as on prices;

• Greater Spending - In establishing price and fee policies for service users, not all governments consider the "true" service-providing costs. The service provided through PPPs demands price and tax policies that reflect the entire cost;

• Political Risks and Labour Issues - Many governments lack experience in PPPs and this lack of familiarity with PPPs by governments and interested parties may result in greater political risks. Collective agreements and labour laws applied to the PPP may cause an adverse response from unions or civil servants;

• Responsibility Issues - With PPPs, the responsibility for service provision is less clear to the public than the traditional method. This may result in public criticism of the partnership and of the involved partner, or demand greater government involvement, to ensure conformity and response to public demands;

• Insecure Services - Private partners may suffer labour disputes, financial problems or other circumstances preventing them from honouring their commitments;

• Lack of Competition - Competition leads to innovation, efficiency and lower costs. Governments may not be able to benefit from PPPs if there is a limited number of potential private partners with the know-how or ability to respond to a certain proposal;

• Reduced Quality or Service Efficiency - If not properly structured, PPP contracts may result in reduced quality of the service, inefficiency or lack of suitable maintenance of an installation;

• Imbalance in the Selection Process - The conventional forms of service provision may generate potential problems for the government, which may be accused of partiality in the selection of proposals.

• According to ECLAC (2007), PPPs may assume many forms to promote tourism as part of the competitiveness of this sector, updating strategies in several areas and using several tools. In this context, the following section deals with PPPs in the tourism sector.

2.3. Introduction to Tourism Investment

Investment in the tourism industry means the creation of capital or goods capable of producing other goods or services in tourism industry for earning higher profits in the private sector or regional revitalization and economic growth for public purposes [8].

Tourism investment is also a critical component of a sustainable tourism sector. Investment in product and infrastructure is essential for destinations and businesses to support tourism visitation and experiences [9].

Attraction in Tourism investment seeks new investment in all areas directly and indirectly related to serving the needs of travellers and ultimately providing a quality visitor experience.

Tourism investment may come from accommodation developers, attraction builders, real estate developers, tourism operators, food/beverage & entertainment developers, transportation companies, asset management companies (portfolio & fund management), banks / financial institutions, institutional investors (e.g., pension funds), private investors, and real estate investment trusts [10].

Tourism investors include: strategic investors (SI), construction Investors (CI), and financial Investors (FI), and that is shown in Table 1.

Table 1. Type of investors in the tourism industry

Tourism investment is able to provide community well-being through important economic growth and employment opportunities for local people. Yet poorly planned and badly regulated investments can have very serious social and environmental implications on countries and affect the competitive advantage of destinations in the short, medium and long term. The most important recommendations for more sustainable tourism investments are [11]:

• proper zoning, with the strict protection of biologically-sensitive coastal areas as a critical aspect of coastal and marine conservation;

• development of a clear tourism niche and product, privileging developments with clear positive economic knock-on effects e.g. tourism vs second homes;

• investment planning (genuine financial needs, flows and predicted rates of return) incorporating environmental benefits and costs;

• ensuring resources for proper monitoring and evaluation; and

• innovative property regimes that can facilitate the application of desired social and environmental conditions to investments.

3. Current State of Tourism in Algeria

The upgrade of the Algerian tourism sector is one of the most important alternatives and a strategic option for the development of the Algerian economy outside the hydrocarbon sector, which has recently been characterized by decline in revenues due to the continuing decline in oil prices, so the development of tourism is no longer an option, but has become a necessity that must be among the priorities of the economic policy of the state because of the benefits that can accrue to society, institutions and individuals behind the interest in this sector.

3.1. Tourism Infrastructure in Algeria

The travel and tourism competitiveness index is the most important reference which can shows us the reality of the tourism infrastructure in Algeria by analyzing the Infrastructure sub-Index which is composed of three main indicators, and through the presentation of the results in detail we will have an overview to what extent the state is interested in developing infrastructure related to the tourism sector, including airports, roads, ports, hotels and all things related to providing services to tourists and all variables related to it are shown in this table:

Table 2. Real state of Tourism Infrastructure in Algeria

Through this table’s results we can say that:

• The infrastructure of air transport in Algeria is characterized by the lack of quality (ranked 127), and competition, which is reflected by the small number of airlines operating in the area (ranked 82) which adversely affects the competitive price and the quality of provided services.

• The infrastructure of road transport in Algeria is characterized by the poor quality of its network (ranked 105), and its roads (ranked 107) and the continuous congested roads will affect the tourists impressions, while the railways are more qualified (ranked 64) compared with the quality of port infrastructure, in which Algeria was ranked 116.

• The residential capacity in Algeria is low in comparison with the rest of the world (ranked 107) which reflect directly on the demand of tourists, and all kinds of transport services are an important factor in the structure of tourism and its development, and this factor is not available in Algeria especially for car rental agencies (ranked 120), also the electronic financial services represent an essential factor which contribute to the development of international tourism by securing an immediate withdrawal service of tourists’ money that want to spend in the country, in Algeria, the number of ATMs that accept Visa cards is so small (ranked 137) and this will lower tourists’ buying operations and thus the development of the tourism sector revenue.

3.2. Hotel Capacity in Algeria

Hotel capacity represents the absorptive capacity of hotel units and all the institutions prepared to receive tourists coming to the state, hotel capacity is one of the indicators with which we can measure the progress of the tourism sector in the country. In Algeria, this capacity is express by the number of beds in Table 3.

Table 3. Hotel capacity in Algeria by number of beds (2008-2015)

From the Table 3, we can note that hotel capacity expressed by number of beds in Algeria has increased since 2008 but in a modest manner and small pace with a relative stability at a modulatory average which does not exceed 1.81%, this consistency and stability is expected due to the lack of attention of government to increase the hotel structures.

3.3. Classification of hotels in Algeria

The Table 4 shows the classification of the hotels in Algeria.

Table 4. Classification of hotels in Algeria (2008-2014)

It is clear from the data of Table 4 that the share of high rated hotels (five and four stars) is weak, due to the lack of favorable investment climate in Algeria which is responsible of attracting international hotel chains distributed across the whole world, also the investment in this kind of hotels is too expensive for the state, this in addition to the lack of security and stability experienced by Algeria during the black decade, which has impacted heavily the investment in tourism sector.

3.4. Tourism Traffic in Algeria

The number of visitors to Algeria since 2008 to 2015 is shown in Table 5.

Table 5. Tourist arrivals to Algeria (2008-2015)

As it is shown in Table 5, there is a slight improvement in the level of the tourism traffic due to the beginning of security situation compared to the nineties years which has seen a sharp decline in the number of tourists, however, the share of Algeria's international tourist traffic remains small and this is due to several factors, including the lack of tourism marketing of the country and the lack of basic infrastructure. The Algerian situation began to change since the attempt of the development strategy proposed which aims to resurrect tourism as an alternative generator for jobs and wealth for the country and especially in recent years, even if on a limited budget compared to other sectors.

4. Public Private Partnership in Tourism

Tourism partnerships are sets of cooperative efforts between autonomous stakeholders, representing organizations in two or more sectors with interests in tourism, that team up in an interactive process, using common rules, norms and structures, at a previously established organizational level and in a delimited geographical area, acting or making decisions on issues related to the development of tourism [12].

4.1. Elements of PPP for Facilitating Tourism Investment

There are several elements to encourage public and private partnerships for facilitating tourism investment. Those are [13]:

• facilitation of tourism: endeavor to facilitate travel of tourists to both destinations;

• travel promotion offices: engage in promotion, liaison, negotiation and advisory;

• tourism statistics and research: exchange information about tourism;

• education and training: create tourism scholarships for teachers, instructors and students; curricular and study programs for tourism schools;

• exchange and assistance: encourage cooperation between tourism facilities and cities of two destinations to increase traffic;

• tourism safety and security: recognize the necessity of promoting the health and safety of foreign tourists; recognize the necessity of promoting safe tourism exchange

Following a study published by the WTO (2002) [14], the main objectives leading to the creation of a partnership were identified, according to the different areas of action. The following table sums up some of the foundations justifying the partnership, by the different parties composing the tourism stakeholders.

Table 6. Objectives in creating partnerships

4.2. Critical Success Factors of Tourism Public-private Partnerships

Partnerships between the public and private sectors are increasingly recognized as a strategic option for the development of tourism, it is therefore necessary to identify the critical success factors of these cooperation forms in tourism . In this sense, we present a list of factors that allow the committed entities to create a PPP, to obtain a more immediate and correct perception of the principles that should sustain and maintain cooperation in tourism according to the WTO (2000):

• A balanced structure, with clear assignment and responsibility for all members;

• Leadership sharing between both sectors, with shared and well-defined goals, realistic expectations and identification of the benefits on both sides;

• A flexible approach by partners, along with the will to understand each partner’s needs, contributing with the share of resources;

• Awareness by all partners that the development of tourism must be sustainable, from an economic, but also social and environmental point of view;

• A long-term commitment that combines strategic vision and planning with specific short-term goals able to be measured;

• Periodic evaluation of the effectiveness of the role performed by each partner;

• Accurate and effective communication between partners and from partners towards all stakeholders.

4.3. Responsibilities of the Public Private Sectors in PPP Projects

In general, the responsibilities of the various parties collaborating in a PPP project are as follows [15]:

4.3.1. Public Sector Role in Tourism Projects

Planning - It is the responsibility of the public agencies to draw up master plans for the development of tourism services and infrastructure. They must do this through forward-planning and by taking account of the economic and social benefits of projects (whereas the financial profitability is a constraint for the private partner).

Regulation - While reference to the market economy modifies the traditional role of the agencies, it also, somewhat paradoxically, broadens this role. The public sector must commit itself fully to its role as regulator which it must keep completely separate from that of the operator.

Safeguards - The public sectors are the guardians of public safety and the environment and must, if a concession is awarded, protect the public against the risk of abuse of adorn iroant position while at the same time according the "concession holder" a satisfactory rate of return. In addition, the sectors may intervene in an active manner, for example to ensure social and spatial solidarity or in the pursuit of industrial policy, but to do this they must use market-type instruments.

Financial facilitation - The main criteria for investment must be the economic and social benefits which will improve the welfare of society. Because of positive externalities, the economic and social benefits often outweigh the financial profitability; the private sector, however, can only fund projects that are financially profitable. Public-private partnerships must therefore be financially viable or must be made to financially viable. The public sector may make it worthwhile for private enterprises to fund projects by reducing costs.

Legal and political facilitation - The public authorities must put in place a clear and stable frame of reference that is sufficiently transparent for the private partner. This is notably the case for technical standards (which must focus more on results than on means), taxation (which must not evolve solely with respect to the sector) and the setting of toll levels.

National Government - The role of national governments is to set the broad policy agenda and provide the framework in which development takes place. Governments can and should provide a lead for integrating travel and tourism into overall policy; regulation, infrastructure and facilities, marketing and promotion, education and training,

Local Government - Local governments should build the capacity of a destination to host tourism and ensures sound and effective management and product development of destinations. Of the three levels of government, local government is the one involved most directly with communities and individuals, and therefore provides the 'on-the-ground' interface where most government policies are implemented.

Non-governmental organizations (NGOs) - NGOs play a key role in representing and acting for the community. NGOs range from small local institutions such as women's groups to large global organizations such as WWF.

International organizations - Tourism is a very global industry, and not surprisingly a variety of international organizations have developed to represent the various stakeholders in the tourism system. International organizations can enhance sustainable growth of global tourism industry by: promoting global ethics and best practice; and facilitating transfer of knowledge to industry sectors.

4.3.2. Private Sector Role in Tourism Projects

In many countries, private sector participation is a key requirement for meeting growing demands for tourism services and resources development. The private sector is an important source of new investment capital that is relatively scarce for many economies. It also brings management expertise and, in the case of foreign private investment, technologies and know-how which may not be presently available. Private sector participation in tourism industry involves a continuum of options ranging from options with a relatively low level of private sector participation to those with a high level of private sector participation. These are: service contracts, management contracts, leasing contracts, BOT type contracts, concessions, divestiture under license, or new entry of private sector participants through build-own-operate (BOO) arrangements.

5. The contribution of Public Private Partnership in Developing Algerian Tourism Investment

5.1. Real Situation of Algerian Tourism Sector at the International Level

Tourism is one of the most complex economic sectors, requiring close coordination with other government policies. Therefore it is critical that we present its relationship with other sectors by analyzing its Travel and Tourism Competitiveness Index 2015 as follows, in Table 7.

Table 7. Algerian Travel & Tourism Competitiveness Index 2015

As it is shown in Table 7, Algeria ranked 123 out of 141 country which is very weak in comparison to other states, also we note that the success of the tourism sector is built on the development of several key sectors such as health, transport and ICT, so the tourism investment in Algeria development is closely linked to the development of all sectors related to the production of goods and services which compose the tourism product.

5.2. The Private Public Partnership in Algerian Tourism

Partnership between Private and Public sectors can be achieved when the officials move together through the division of resources and risks, as the state works to protect the natural and cultural resources and put major enterprises under the tourism service, while the private sector working to ensure tourism investment basics. For Algerian Public Private Partnership Plan for tourism, the guiding Plan for Tourism Development form the reference for a new policy adopted by the state and is a part of the national plan to develop the region in the prospects of 2030; this plan is based on five dynamics [16]:

√ Algeria as a tourist destination;

√ Excellent tourist poles;

√ Tourism quality;

√ Public Private Partnership;

√ Tourism financing plan.

5.2.1. Objectives of the Algerian Public Private Partnership Plan for Tourism

Tourism falls within the communicative approach between PPP, and in order to achieve this it was necessary to [17]:

• Make the gates’ access to the national territory more attractive, embassies, consulates, airports, border posts, ports, terminals ... etc;

• Improve basic services in tourist sites: hygiene, water, cleansing, energy, Media and communication technologies;

• Facilitate access to tourist sites and villages;

• Natural resources and environmental maintenance;

• Mainstream tourism to encourage rapid quality services;

• Improving the quality by continuous and permanent configuration;

• Motivate all public and private partners for the development of the tourism sector, because tourism development requires coordination between the economic sectors.

5.2.2. Role of Algerian Public Sector in the Establishment of Partnership in Tourism

Government investment plays an important role in the development of the tourism sector through [18]:

• Spending on infrastructure projects;

• Direct spending on tourism projects which the private sector may not find the motivation to achieve, such as reform of land and public parks and beaches;

• Spending on scientific research and studies related to the tourism sector;

• Work on setting tourism policies and regulations, laws and legislations;

• Work on attracting and encouraging investments in the field of tourism, through the facilities to local and foreign investors.

The Public sector encouraging private sector investment through a various guarantees and facilities which are [19]:

• Creating a tourism investment support fund;

• Waiver of hectares of land within the areas of tourism expansion, and tourist sites to be configured and placed under the disposal of investors;

• Providing tourism investment support fund with 6.4 billion$;

• Making special financial products available such as the hotel loan;

• The reduction of interest rates to encourage investments;

• Exemption of equipment and tools which are necessary for setting up tourism projects from customs duty,

• Exemption from taxes on income and property taxes in the medium term, with a partial report exemptions in the long term.

5.2.3. Role of Private Sector in the Establishment of Tourism Partnership in Algeria

The private sector plays an important role in the tourism development process in Algeria, because of its efficiency in management and its experience in investment the thing that lead to the provision of tourist goods and services with competitive prices, in addition to the capital owned by the private sector, and Thus, the role of the private sector in tourism development and diversifying sources of income is complementary to the Government role.

Therefore, the private sector contributes effectively to the implementation of the tourism development plan in Algeria through [20]:

• Work on the optimal use of the available tourism resources, and increase the quality of production and reduce Wastage in the use of those resources;

• Work on developing competitive tourism products, which should be appropriate for the sustainable development of tourism;

• Relying on national labor force in the development of the tourism sector, to ensure the participation of citizens in the widest development of this sector;

• The distribution of tourism investments in a way to contribute to the development of different regions and take advantage of the various Algerian tourism potentials;

• Negotiate with foreign companies in the field of tourism;

• Focus on diversifying the levels of tourism projects, and make it fit with the needs of all tourists categories.

5.3. The Real Situation of Tourism Investment in Algeria

In this section, we will illustrate the previous section with statistics concerning tourism capital investment in Algeria, which includes capital investment spending by all industries directly involved in Travel & Tourism. This also constitutes investment spending by other industries on specific tourism assets such as new visitor accommodation and passenger transport equipment, as well as restaurants and leisure facilities for specific tourism use. This is represented in Table 8.

Table 8. Capital investment in travel & Tourism in Algeria

The results of Table 8 show that Algerian Travel & Tourism sector have attracted capital investment which was modestly increasing since 2009 until 2015 with 178.2 bn DZD, and rise by 5.0% over the next ten years to 408.1bn DZD in 2025. In addition to this, we notice that Government spending (representing the public sector) was so small in comparison with the private sector over the years with an average of 20%, so for Algeria, and despite the inclusion of tourism investments in the national development plan, it did not provoke as much attention as the other sectors and this is due to total reliance on petroleum industry which we can no more depend on because of the continuous decrease of prices.

6. Conclusion and Policy Recommendations

This paper tried to show the real situation of public private partnership in tourism sector of Algeria, the results showed that the upgrade of Algeria's image in the global tourism market requires years of hard work and patience; In this context, the new policy came in the master plan for the creation of tourism prospects in 2025 to improve the Algerian tourism sector, by the promotion of partnership between the public and private sector to ensure the development of a common and integrated tourism sector. The following recommendations should be considered for the policy action by the Algerian authorities.

• The public private partnership should be framed legally, by legislative and regulatory rules, whatever was the form of participation, with the necessity of creating bodies of continuous surveillance and track;

• Providing an appropriate environment to encourage partnership, because the success of the partnership as a contract is based on mutual trust between the parties and respecting the commitments in terms;

• Public private partnership requires institutions to oversee the process of PPP design and implementation performance reviews and a free now of information to the public especially on financing issues. An independent audit office is useful and can work to ensure that the public receive "value for money "from the PPP project.

• The most effective partnerships are those developed for mutual benefit, they must include a wide and representative range of stakeholders from the local and foreign investors, who are able to play an active role in partnerships;

• Provide strategic direction, proactive leadership and educational opportunities to support tourism development and educate local, regional and statewide governments and communities on tourism's contribution to economic prosperity and quality of life.

References

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[4]   | Raman Krishnan, op.cit,p:9.
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[14]   | Mario Franco, Cristina Estevao, Op.cit, p: 608.
[15]   | Dae-Kwan Kim & Yang Woo Park, Op.cit, pp: 104, 105.
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[18]   | www.tourusm.gov.eg/default.aspx.
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