Public-Private Partnership as Innovative Form of Attraction of Financial Resources in Sphere of Tourism
Public-Private Partnership as Innovative Form of Attraction of Financial Resources in Sphere of Tourism

Summary/Abstract: The main motivation behind this research because nowadays tourism becomes one of the major industries in Indonesia. However, literature on the causal relationship between the cyclical components of tourist arrivals and economic growth revealed inconclusive especially in the developing countries as Indonesia. This paper aims at investigating whether foreign tourist arrivals contribute to economic growth evidence from Indonesia over the period 2004 (1) – 2016 (12). Then, this research was applied the vector autoregressive (VAR) model. Afterwards, we exploited Hodrick-Prescott de-trending procedure to obtain cyclical components of tourist arrivals and economic growth. By using the test of Granger-causality, we found that causality running from tourist arrivals to economic growth. Furthermore, the VAR model shows that tourist arrivals were pro-cyclical to economic growth, implied that the increase of tourist arrivals promote the economic growth so that foreign tourist arrivals could be the key to escalate Indonesia’s economic growth in short term. The paper is devoted to the development of approaches to realisation of public-private partnership (PPP) in the sphere of tourism. It has been proved that it is expedient to concentrate on a narrower economic understanding of PPP in the tourist industry. It has been established that it is necessary to regulate authorities, forms of relationships, to share risks, to provide legal guarantees on repayment of funds in the framework of PPP in the sphere of tourism. It has been determined that it is necessary to pick out a coordinating body, which will inform potential participants about peculiarities of projects’ realisation, as well as render educational services on the problematics of PPP, take part in competitions on selecting participants. It is proposed to foresee mechanisms of providing state guarantees on attracting financial resources and an opportunity of granting privileges to private investors in the framework of PPP in the sphere of tourism.

• Details
• Contents