PUBLIC-PRIVATE PARTNERSHIP FOR SUSTAIANBLE TOURISM DEVELOPEMNT IN ETHIOPIA: PRACTICES, CONSTRAINTS AND PROSPECTS

Abstract

Tourism is considered as a driver of economic development globally. It is complex sector that touches almost all other sectors in terms of strategy, institutional framework, and actual implementation. As a result sustainable tourism development needs huge investment whereby financing may become very difficult for developing countries with increased population that needs basic infrastructure and public service. PPP usually suggested as a viable model to finance tourism development where tourism projects are financed and operated through between government and one or more private sector companies. Considering its tourism resource base, Ethiopia is positioned at a top of the Sub-Saharan African countries along with South Africa with nine world heritage sites. It has also more 15 national parks and varied tourism endowments not register as world heritage site by the UNESCO. But its tourism development is at its initiating stage. On the other hand developing countries like South Africa, Turkey and Tanzania, who integrate PPP in to their tourism development strategies able to reach the upper tourism development stage, while the effort to develop the abundant tourism endowments of Ethiopia through PPP seems foggy with missed opportunity. This study adopted an exploratory research design using qualitative approach to get insight about the potential, practices, constraints and prospects of PPP for Tourism Development in Ethiopia. Relevant literatures were critically reviewed, practical experiences of selected developing countries were examined, and insight stimulating analyses were captured by interviewing purposively selected professionals and practitioners based on strategic, contextual and operational dimensions of PPP as development approach. The findings of the study indicate that though there are PPP initiatives by donor agencies, and as consultation forum by the government, PPP is not considered as development tool with practical collaborative arrangement whereby the government use the financial and technical resource of the private sector for sustainable tourism development. From strategic point of view, there is no PPP specific policy and strategy. In respect to the context of tourism sector, PPP is not integrated in to the Tourism Development Policy and subsequent long, medium, and short term strategies. Operationally, there is no PPP authority and PPP procurement laws that can guide adaptation and implementation of PPP tourism projects.