Tourism PPP. The TURESPAÑA experience
<<<<<
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
Moscow, 15 March 2010
1
Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
2
Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
1.1. DEFINITIONS OF PPP (1)
 Legal forms of cooperation between 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).
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
1.1. DEFINITIONS OF PPP (2)
 A cooperative venture 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)
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
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.
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
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.
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
1.2. SCOPE OF TPPP
 General issues about the tourism
system.
Tourism marketing (mainly Communication, research
and product development)
Tourism Quality policies.
Education and trainning
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Tourism PPP. The TURESPAÑA experience
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
100% PUBLIC
Moscow, 15 March 2010
Societies, Corporations
100% PRIVATE
Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
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”
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Tourism PPP. The TURESPAÑA experience
Private goods
Public goods
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
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.
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Tourism PPP. The TURESPAÑA experience
(cont.) 2nd reason: External effects (+ and -) caused by tourism
activity.
Private/Public agreements for solutions
to the external effects:
A) Awareness of 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.
Effect of a + externality
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
Cambrige (Eng)
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
3rd reason: the economic - touristic cycle of
destination: Long term medial costs are increasing.
Number of
tourists
Rejuvenation
Stagnancy
Consolidación
Downhill
Development
Implication
Exploration
Time
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
Long term global medial cost of tourism production,
consequence of the law of decreasing marginal
N.B. the economic
productivity
downturn accelerates
Global
medial
cost
(short term)
New
destination
this commitment:
more efficient choice
of public/private
investments and mk
actions
Mass
destination
Medium size
destination
(long term)
Global medial cost = explicit costs + opportunity
costs
Moscow, 15 March 2010
Q= trips or
inclusive
tours
Tourism PPP. The TURESPAÑA experience
In order to correct this problem,
Turespaña has promoted the
consortiums for requalifying a few
mature destinations
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
4th reason: sustainability.
Next generation should be able to use the same amount of
natural capital.
People and NGOs are endogenous resources taking
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)
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
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
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Tourism PPP. The TURESPAÑA experience
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).
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Tourism PPP. The TURESPAÑA experience
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)
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA
4.1. The 2020 Spanish Tourism Plan is a PPP outcome
WHAT'S THE PLAN?
All public administrations and all agents in
the industry are committed to making the Spanish
Tourism System more competitive and sustainable by 2020 for
the wellbeing of the wider community.
HOW WAS IT DONE?
Through an open
debate between the public
and private sector to examine Spain's position and
tackle the challenges posed by new trends.
Over 35,000 tourists
WHO TOOK PART?
Moscow, 15 March 2010
Over 100 industry
experts
Over 2,000 industry representatives
All public administrations
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Tourism PPP. The TURESPAÑA experience
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.
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Tourism PPP. The TURESPAÑA experience
4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA
4.3. Spanish Tourism Strategies 2020
1. New Tourism Economy
Knowledge
2. Value for
customers
Innovation
Capturing talent
3.Sustainability
4. Competitive
environment
Tourism, the environment
and society
Legal framework and
simplification
2020 positioning
Tourist destination planning
and management
Cooperative culture
Helping to sell
Regeneration of mature
tourist destinations
Competitive Industry-wide
Plans
Deseasonalisation and
redressing regional balance
Accessibility of tourism
Perceived quality
Experimental Spain
4. Shared leadership
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Tourism PPP. The TURESPAÑA experience
4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA
4.3. Spanish Tourism Strategies 2020
a. Knowledge / Innovation (e.g.)
Agreement with the National Council of Chambers (INTELITUR)
MK research
Agreements with the Instituto Tecnológico Hotelero - CEHAT
training
Boosting PP innovation clusters (THINKTUR)
innovation
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA
4.3. Spanish Tourism Strategies 2020
b. Building a more sustainable / more
competitive model of tourism (e.g.)
Boosting quality, quality incentives (Q label,
Instituto de la Calidad Turística Española)
Plans for re-qualifying mature destinations
with local PP partners
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
4. SCOPE OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA
4.3. Spanish Tourism Strategies 2020
c. 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.
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
5. FORMS OF PUBLIC-PRIVATE PARTNERSHIP AT TURESPAÑA
(i) 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,…
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Tourism PPP. The TURESPAÑA experience
5. FORMS OF PUBLIC-PRIVATE PARTNERSHIP AT TURESPAÑA
(i) 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.
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Tourism PPP. The TURESPAÑA experience
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

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Tourism PPP. The TURESPAÑA experience
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 Agrupaciones
Empresariales Innovadoras)
 Cofinance IT trainnig (Plan Avanza)
 Support to the creation on Local TPPP
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Tourism PPP. The TURESPAÑA experience
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
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
6. RESULTS OF PUBLIC/PRIVATE PARTNERSHIP AT TURESPAÑA (2009)
i.
260 agreements with private companies and associations to carry out joint
activities
ii.
Total investments of €63 million (43% Turespaña-40% private sector-17% other
public administrations) in co-MK. Induced private/other public investments: €31
million.
iii.
Over 2,500 firms hold the Q quality label
iv.
30 innovation clusters set up (€3.8 million in funding)
v.
38 Projects of the Avanza training plan (€4 million in funding)
vi.
17 competiveness plans and 3 destination requalifying plans
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Observed pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
7. OBSERVED PROS AND CONS
CONS
PROS
 Powerful tool for implementing
 Need of an strategy results
policies more effectively: MK,
oriented: P&P have different
quality, awareness, innovation.
goals.
 Share of information,
resources, risks and rewards.
 Move actors to a new
cooperation culture .
 Lack of experience in PP
cooperation
 Lack of institutional support
 Need of market incomes
 Disproportionate Government role
Moscow, 15 March 2010
Tourism PPP. The TURESPAÑA experience
CONTENTS
1. Characteristics of the public-private partnerships
2. Reasons for public-private partnership
3. Examples of public-private partnership
4. Scope of public-private partnership at Turespaña
5. Forms of public-private partnership at Turespaña
6. Results of public-private partnership at Turespaña
7. Pros and cons
8. Recommendations
Moscow, 15 March 2010
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Tourism PPP. The TURESPAÑA experience
8. RECOMMENDATIONS
 Understand why a TPPP.
 Share vision and objectives
 Adapt national/regional laws
 Share risks
Professional management
Team work
 Mesuared results.
 Believe on your partnership: a PP
and positive attitude
Moscow, 15 March 2010
effective cooperation requires a decided
Tourism PPP. The TURESPAÑA experience
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THANK YOU VERY
MUCH FOR YOUR
ATTENTION
www.spain.info
www.tourspain.es
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joancarles.cambrils@tourspain.es
Moscow, 15 March 2010
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