The Role of Public-Private Partnership Contracts in Tourism Industry Development

Abstract

Tourism industry is the largest service industry in the world that can bring numerous economic, cultural and social benefits for countries. Tourism development and enjoying the revenues of this industry entails building the facilities needed in which, unfortunately, most governments do not have sufficient expertise and capital. Private sector investment through different patterns of public-private partnership is an effective contractual approach, which provides conditions where both the public and private sectors can proffer their own capabilities to the project in order to maximize efficiency, at the same time that it supplies the project’s needed capital. In this study, the approach adopted by some countries regarding public-private partnership contracts in tourism industry and also Iranian regulations have been investigated. It appears that, according to the characteristics of the partnership agreements, in case of the required legal bases being provided, this method has appropriate capabilities for using in tourism projects, particularly in sample areas of tourism.