Tourism Projects Financing: A Public-Private-Partnership Model

Tourism sector is one of the cornerstones of economic developments for most countries and a gate which integrates countries to international markets. Almost every country targets to host a greater number of foreign visitors every other year. Tourism projects generally require a high amount of initial investment for which the private financing may become impossible for most companies. Public Private Partnership (PPP) could be suggested as a viable model to finance tourism projects where tourism projects are financed and operated through a partnership of government and one or more private sector companies. This research study conducts a comparative analysis of risk transfer and cost reduction effects on various PPP models for tourism projects financing. The features of structuring a PPP model is proposed and applicable areas in tourism services are discussed. In the final part of the research, an application of the proposed PPP model is utilized. The findings support that all parties gain something which presents a win-win case.