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Consider The View That The Development And Management Of Tourism At Destination Can Not Be Left Entirely In The Hands Of The Private Sector

1563 words - 7 pages

INTRODUCTION.In the tourism field, the term public sector covers the whole range of public organizations from national government ministries and departments to government business enterprises and local government tourism departments (Elliot, 1997).On the other hand private sector provides tourism products in the whole range of functions, such as accommodation, food and beverages, transportation and retail shopping (Elliot, 1997).In line with the current global trend of economic decentralization and privatization, the travel and tourism industry now enjoys a relatively high degree of operation autonomy. Therefore, some people argue that the management and development of the whole tourism ...view middle of the document...

For instance, a national tourism campaign named "Amazing Thailand" was held during 1998-1999 in Thailand, including the promotion of the 13th Asian Games. It brought about 14% increase in the international tourist revenue and also the investment of foreign businesses. It was a very successful promotion to clear the nation image of Thailand from 1997 economic crisis (TAT, 1999).It has been proved that tourism is highly sensitive to worldwide crisis, such as the Iraq War, the SARS disease and terrorism attacks. International communications, cooperation and a global precaution system are in great need to offer tourism industry a security environment.Tourism has become embedded in treaties and agreements designed and negotiated among countries and organizations, aiming to suggesting mutual cooperation on policy issues; promote the sharing of research, statistics, and information; enhance mutual understanding and goodwill; solve tourism problems; improve immigration accessibilities and so on. For example, based on a series of immigration agreements, the Thai Government is now providing visa free entries to 57 countries' tourists (TAT, 1999), which motivates people to travel to Thailand.ECONOMIC REASONSThe economic advantages of tourism are known to be the main driving force behind tourism development. The potential of the tourism sector as a generator of income, employment, and economic distribution as well as to contribute to the balance of payment of a nation, can be seen as significant reasons for government involvement in tourism (Edgell, 1990).Similarly, Pearce (1989) identifies tourism effects to the balance of payment as a reason for public sector involvement. He stated the importance of a leading role of the public sector in tourism to achieve regional development, diversification of economy and higher incomes.Governments stimulate the construction of needed tourism infrastructure, access roads, communications, airport facilities, and the many other supply-side requirements for supporting tourism, which cannot be accomplished by private sector.Not to be underestimated is the intervention of the public sector by financial means. Financial incentives are often given to tourism developers in many cases in the forms of easy credit, tax holidays, and exemptions, free-enterprise zones, loan guarantee, and other fiscal incentives for particular tourism projects.One of the most distinguished aspects of the tourism industry is that it is a very wide, sophisticated and multi-sectional industry. The generators of economic impact for a destination are visitors, their expenditures, and the multiplier effect.Tourism has high intermediate as well as direct effects and therefore has important linkage or carry-over effects with the rest of the economy such as demand for local produced food and handicraft, etc.Tuner, (1992) mentioned that anticipated difficulties in achieving the desired rate of return from tourism development could exist without involvement...

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