assessing the political economy of tourism development kwaku adutwum boakye, ucc & foster...

Assessing the political economy of tourism development

Kwaku Adutwum Boakye, UCC&

Foster Frempong, KNUST

1Boakye and Frempong, 2012

Tourism in context

• Increasing recognition of its properties as a tool for development– used as a devt strategy by over 80% of world’s poor

countries (WB, 2008)

– Expected to engender devt through the multiplier concept: • Injected tst income-increased business for both tsps, and

other services provided by poor people- increased intersectoral dd , leading to growth in income across board

Boakye and Frempong, 2012 2

A quick snap shot

• Generally lying along a trajectory of growth• Last two decades have been most ‘active’ since

independence• Marked by steady growth in arrivals and receipts ;

increasing contribution to GDP; employment etc• Inspite of these impressive figures, tourism’s

ability to deliver development remains challenged (BOG, 2009)

• Sector grew by -11% in 2010-11 fiscal year (MOFEP)


Why?

• Disproportionate emphasis on the private sector as being expected to engineer the growth of tourism

• Answer may lie in an understanding of the PE• Does not gain much attention in literature but

provides a useful context for understanding the role of tourism as a development tool


PET in a tourism context

• PET focuses on the context rather than content • Seeks to understand the context within which

tourism ‘production’ and administration occurs• PE emphasises the role of the public sector/state in

managing tourism– Elicits two key questions:• Under what environment do individual tourism/hosp

businesses operate?• What are the challenges the state institutions face in

playing their role within the tourism delivery system?


Public vs Private sector?

• Tsm must be managed by the public sector for two reasons: – fragilty of poor economies and their vulnerability

to the dictates of core-perphery theory (aka globalisation)

Private sector ‘s limitations in three mkt failures: – Externalities– Monopolies– Public goods


• Private sector’s myriad of problems proscribe it from leading the tourism devt process– High taxes (President of GHA, Sept, 2011)- repeal

of LI 1817– Limited access to credit, (Chairperson, Hospitality

Institute, October, 2011)– Weak/inconsistent supervision from GTA (Kissi,

2011)– Irony is that public sector has answers to private

sector concerns

Theoretical role of public sectorUNWTO

• creation of a conducive macro econo-political environment for tourism to thrive through:– Creation of a policy framework– Monitoring of standards– Provision of infrastructure– Training– Marketing– Attraction development– Facilitation and guiding of private sector activities


Some public sector interventions during the period

• 15 yr devt plan 1996-2010- yet to be evaluated

• 5 yr strategic plan 2002-2007• Tourism Act 2011• Training- Hotcatt floundering• Numerous workshops/conferences• Limited marketing camapaigns


Past public sector interventions(largely externally funded)

• NRCHP• TCDI• SNV• PPP


The tourism environment

Ownership lacuna• Ownership of the tourism management process not

entirely in hands of MOT• Classic example of the major attractions: (Kakum

National Park, and three UNESCO World Heritage Sites)

• Presence of many line players with differing mandates normally not related to the core business of tourism


Examples of agencies which have major influences on tourism but dont have tourism as their core business

• Ghana Civil Aviation Authority; Bank of Ghana Ghana Immigration Service

• Customs Exercise and Preventive Services; Internal Revenue Services; VAT Secretariat ;National Development Planning Commission

• Ghana Investment Promotion Service; Ministry of TradeIndustries & PSI; Metropolitan, Municipal and District Assemblies; Ministry of Energy

• Ministry of Roads and Highways; Minstry of Environment Science and Technology; Ministry for Water Resources, Works and Housing

• Ministry of Interior; Ministry of DefenceBoakye and Frempong, 2012 12

tourism environment ctd

Identity challenge• Tourism suffers from an ‘identity crisis’– Traditional vs non traditional export?– Who is its main clientele– What is its major product?

• This crisis is root of ‘second rate treatment’ (in terms of personnel (political apptees) and resource allocation


Figure 1: Tourism Budget: 2011source: MOT

14

Tourism environment ctd

• Weak governmental support– Infrastructural support• Provision of utilities to (esp. access roads to receptive

facilities e.g road to Mole Nat. Park; kakum Nat park; unreliable water, electricity, internet, telephone etc)

– Fiscal policy• E.g repeal of LI1817 in 2010 which removes tax waivers

for imports of hospitality operations


Tourism environment

– Weak unempowered coordination from MOT placing tourism in a lobbyist rather than controlling position• Manifests in

– Haphazard development– Weak planning; little or adherence to plans; no

framework for control of impacts and their distribution– Weak linkages between (1) sectors and (2)stakeholders

(esp academia, policy and industry)

•


Macro environment(4)

• Weak data base (e.g CAN 2008) premised on a flawed defintion of a tourist .– Erroneous emphasis on hotels as a gauge of

tourism– Inclusion of Ghanaians returning home


Preliminary conclusions

Country’s tourism PE can currently be at best described as being weak, disorganized and structurally deficient

a pressing need to reorganize public sector’s role in delivering tourism.

It also calls for strengthening (capacity-wise, financial and operational) of the public organizations mandated to develop tourism.


A cue from the Moroccan example

• Official prioritisation• High level involvement (tourism coordinated

from office of pres who serves as chm of coordinating cttee)

• Integrated and Coordinated planning (e.g creation of tsm land banks, etc)

• High levels of professionalism/service delivery• Clear policy directives towards supporting

tourism businesses19Boakye and Frempong, 2012

The way forward• A functional and operational recognition (by both public and private

sector)of tourism as a major economic tool• Need for an empowered central coordinating unit for managing tourism• A vibrant environment characterised by:– Well coordinated and integrated high level tourism planning and

implementation– Proper supervision of service delivery– Improving the tourism product

• Better hospitality service delivery• Enhanced attractions


assessing the political economy of tourism development kwaku adutwum boakye, ucc & foster...

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