As one of the fastest growing world industries, tourism has been detected as a source for benefiting to various sectors. Thus, each country insists on developing it and making a profit from its variety of impacts. This has been a priority task to all governments, particularly to small and developing countries.
Why Governments Involve in Tourism?
The reason why governments get involved in tourism development can be attributed to two main factors.
First, only governments can create an environment that is conducive for the tourism industry to compete. Their policies often address a number of objectives, ranging from economic and environmental to social and educational, which can strengthen the pull factor of the country as a destination Furthermore, only governments have the necessary legitimate power to provide security, political stability, legislation, and financial framework to enhance tourism development.
Second, tourism is embodied by free rides and its performance largely depends on the success of other industries. For example, a hotel may not receive full benefits from cleaning beaches, however, having a clean beach is important to the hotel profitability and its success. Therefore, the provision of public goods (clean beaches) is crucial for adding value to tourists and may influence the destination choice. Since the private sector often does not have such abilities and capabilities, the ability of a government to identify these externalities is key for the destination to maximizing the benefit derived from tourism. Therefore, government involvement is a prerequisite to achieve successful destination growth by creating an environment that is capable to compete.
The Challenge?
In recent years, governments of developing countries have been much more active in destination management and development than they used to be in the past. However, the challenge many governments face is to determine an appropriate level of involvement. It is important here to understand that:
-The level of government involvement affects the destination’s tourism competitiveness
–The destination’s tourism competitiveness affects the level of government involvement
Therefore it means that the process of government involvement must be a dynamic process evolving by constant feedback from all sectors and driven by creativity & innovation.
How can Governments Involve?
Tourism is an industry that may not be self-developed, so provokes necessity of applying certain forms of state intervention. In this respect, state intervention in tourism means direct participation of the government in tourism market.
This may be accomplished generally, in two ways.
The first one refers to selective allocation of funds which means market intervention of government as a financial institution.
The second approach is a direct control over tourism enterprises which means state’s inclusion in the business. Consequently, if tourism development is out of control, variety of conflicts may arise. So the government must be included in order to make certain positive-oriented interventions.
To which extend this intervention will appear, depends on many factors, out of which the political orientation of government is the most explored. Usually, governments that support free market and open economy, often create encouraging environment for successful tourism development in contrast to central-oriented ones.
The Problem: What Pakistan’s Tourism Lacks?
Pakistan’s tourism suffers from lack of coordinated activities and organizational forms functioning on horizontal and vertical line, unclear set of goals, aims and field of interest within the public, as well as the private tourism sector. Although some significant efforts have been made in promoting tourism, yet the modest and limited budget is the biggest obstacle in achieving greater competitive advantages. The result is a poorly developed tourism industry. Therefore, as a starting point, partial tourist products must be introduced until the moment when certain preconditions are created in the sense of strengthening the cooperation between all key actors in tourism. Hence, it can be concluded the need for further governmental intervention in tourism, with emphasize to be supportive and balanced since up-to-date effects are positive, but very modest.
