The Role of the Government in

Tourism
Prepared by Lorenzo Williams
Government involvement

 Government gets involved locally, internationally and regionally

 They provide much of the infrastructure needed such as airports, roads and sea ports
 The government provide political stability and security
 They set the regulation and create the legislation to ensure that the industry operates at a
particular standard
 They operate through the public sector to deliver government policy and make strategic
decisions
Governments Involvement

 The economic rational for the governments involvement in tourism includes generating
foreign exchange, increasing employment, fostering employment, entrepreneurial activity,
creating linkages, and generating government revenue
 Additionally social, cultural and environmental involvement/ responsibilities
 The government may chose to play an active role or a passive role
 The greater the economys dependence on tourism the greater the governments involvement
 Their involvement can be understood as a continuum
 With active involvement provides the resources required and enable the environment for
development ( Master plan is developed, legislative support, incentives)

Government involvement

 With Passive involvement the resources are provided but solely for the purpose of tourism
 Government may play a passive role by providing infrastructure, improve transportation
and information technology but not solely for the tourism industry….other industries will
benefit as well
Factors Which Contribute to the Governments
involvement….
 The System of Government:
 Most Caribbean countries have a mixed economy in which both public and private sector
collaborate on tourism initiatives.
 In the British Overseas territories tourism and offshore financial services are the primary
drivers
 In Cuba tourism is centrally planned as their government is communist
Factors which Contribute

 The Importance of Tourism to the Economy….

 The more dependent on tourism an economy is the more active the government will be,
 Tourism policy is enshrined in tourism master plans and strategy documents
 Tourism policy is seen as a set of regulations, rules, guidelines, directive and
development/promotion objectives and strategies that provide a framework within which
the collective and individual decisions directly affecting tourism development and the daily
activities within a destination are taken
Factors Contributing to Involvement

 The State of the National Economy….

 In times of crisis government use tourism as foreign exchange generating tool and for
creating employment
 International Agencies:
 United Nations World Tourism Organisation, World Travel and Tourism Council,
international Air transport Association
 Regional Agencies:
 ACS, CTO, CHTA, CDB
 Local agencies :
 Ministries of Tourism, Tourism and Hotel Associations
The Different Roles of the Government in
Tourism Development
 Coordinator….
 To minimize duplication, mitigate friction, avoid the wasteful use of scarce resources
 Cross-border collaborations as tourism is marketed as a tourism bloc
 Stimulator:
 Providing financial incentives, sponsorship of industry related research, marketing and
promotion
 Fiscal incentives in the form of duty-free concessions on items as it relates to the tourism
business
Roles of the Government

 Planner….
 This includes the use of resource uses, land development, infrastructure, human resources,
risk mitigation, marketing, product development and finance
 Marketer and Promoter…..
 This cannot be left to the private sector alone . Every Caribbean nation has a marketing
department which takes care of that aspect of marketing the destination and its assets via
various marketing communications.
 They do market research and liaise with overseas
Roles of the Government…..

 Legislator and Regulator…..

 This role is critical for the functioning of all tourism.
 While some legislations are not directly tourism related they stimulate tourism demand,
facilitate the easy movement of people and the protection of residents.
 Such legislations are related to visa controls, building relations, zoning, sanitation and
safety codes and consumer protection