The term ‘public sector’ envelops the entire array of public organizations “from national government ministries and departments to government business enterprises and local government tourism departments” (Elliott, 1997). At the same time as tourism is a very different and composite industry, so is the public sector having an extensive assortment of organizations of great variety that are chained up in intricate compositions and relationships.
Tourism has been the world’s largest industry for the last few decades. There is a great involvement of public sector in the development of tourism. Private sector is that important part of a country’s economy which is not owned by the government or public corporations. Instead, this sector is owned by individuals or autonomous companies. With the growth in tourism, the private sector has become increasingly involved in the business opportunities offered by this thriving industry.
Coordination, planning, legislation and regulation, entrepreneur, and stimulation are thefive most important parts of public sector involvement in the tourism industry (Mill & Morrison, 1985). Coordination is of principal importance as the implementation of other processes is dependent on the public sector’s capability to coordinate and balance its other functions. For avoiding repetition of resources between public and government sector and for developing effective tourism strategies, it is necessary for public sector to coordinate.
Public sector is also involved in planning which can be said to be the most significant constituent in tourism development. Public sector looks after the development, infrastructure, promotion and marketing of the tourism industry. Public sector involvement in tourism development is indispensable because tourism planning must comprise of environmental and social considerations and demands for greater community participation. According to Lickorish (1991), “Without public sector’s involvement in tourism planning, development of the industry will lack cohesion, direction, and short terms initiatives might well jeopardize longer-term potential.”
The public sector manages the laws, collects revenues, maneuvers social services, allocates funds and generally runs the country. Public sector’s legislative and regulative authorities have powers over the tourism industry, both directly and indirectly. Its involvement in the industry ranges from passports and visas policies to environmental protection. The policies regarding tax also have a considerable influence on the growth of tourism.
Public sector is also involved in the stimulation of tourism development. It offers fiscal incentives including low interest loans and sponsorship and reduction of allowances on tourist accommodation. It also supports social tourism which is regarded as a crucial element of today’s contemporary society.
References
Elliott, J. (1997). Tourism:Politics and Public Sector Management. London: Routledge. Retrieved December 9, 2012, from http://www.questia.com/read/103042486/tourism-politics-and-public-sector-management
Lickorish, L. J. (1991). Developing a Single European Tourism Policy. Tourism Management, 12(3), 68-84.
Mill, R. & Morrison, A. M. (1985). The Tourism System. Englewood Cliffs: Prentice-Hall.
