Tourism and Regional Development Issues - Tourism and Development: Concepts and Issues - page 155

and judiciary, enforcement agencies, other levels of government, government
business enterprises, regulatory and assistance authorities and a range of
semi-state organisations' (Hall, 1994c: 23). In addition to this list, Hall (1994c)
adds components of society such as political parties, trade unions and indus-
try associations (including tourism and hospitality) that receive money from
the state. The parliamentary institutions (whether democratic or not) provide
the framework for the development of alternative policies and the decision-
making process as to which policies are adopted. National or provincial/
state ministries of tourism and their related bureaucratic structures influ-
ence tourism policy and as Hall (1994c) points out, one of the significant
aspects of the state is the balance of power which exists between the central
government and the various regions in the country. All levels of state do not
necessarily share the same objectives. The political ideology of a government
can determine whether a government favours large resorts, backpacker hos-
tels, ecotourism or casinos (Elliot, 1997).
Ioannides (1995) identifies two broad important roles for governments
to play in the tourism sector. The first is establishing the forum enabling the
tourism industry suppliers to coordinate their activities. The second major
role is that of promoter. Hall (1994c) outlines seven roles of government in
tourism, which include: coordination, planning, legislation and regulation,
entrepreneurship, providing stimulation, social tourism and interest protec-
tion. Each of these roles can be adapted to varying degrees of success to help
promote regional development and will be reflected in examples in the
second half of this chapter. When a government selects certain policies, the
government is also choosing between different sets of values and these deci-
sions are made within a complex policy arena (Hall, 1994c). Elliot (1997)
argues that the tourism industry could not survive without governments as
they have the ability to provide the political stability, security and legal and
financial framework which tourism requires. Governments have the power
but how it is used depends on factors including 'political culture, political
and economic power holders and their perception of the tourism industry'
(Elliot, 1997: 4). Governments have the ability to assist tourism by providing
services and they have the ability to control the industry to ensure those
activities and safety standards are maintained in the public interest. How
government performs these activities depends on its public sector manage-
ment (PSM), which is typically defined as public interest, public service,
effectiveness, efficiency and accountability (Elliot, 1997). Oppermann and
Chon (1997: 20) indicate that governments of developing countries can influ-
ence tourism development through fiscal and investment policies such as:

• investment into the general infrastructure of a destination or region;

• investment into tourism infrastructure;

• investment incentives for companies; and

• influencing exchange rates.