Tourism and Regional Development Issues - Tourism and Development: Concepts and Issues - page 159

benefit tourism, include the European Regional Development Fund (ERDF)
and the European Agricultural Guidance and Guarantee Fund (EAGGF).
While the EAGGF has contributed to rural tourism, most of the tourism-
related funding has come from the ERDF (Davidson & Maitland, 1997). This
fund has helped disadvantaged regions develop their tourism potential
through direct investment for the construction of projects such as marinas,
conference centres, airports, and indirect investment in the areas of transpor-
tation and communication infrastructure. The second type of assistance is
targeted at regions, which are over-dependent on tourism and suffering from
its negative impacts. Funds are used to help with environmental problems
and to diversify the economy (Davidson & Maitland, 1997). From 2007 to
2013 the EU planned to spend

6 billion under the Cohesion Policy with the
aim of mobilising tourism for job creation and sustainable regional develop-
ment (European Commission, 2013b).
In Canada, the Canadian Tourism Commission (CTC) acts as a partner-
ship between the tourism industry businesses and associations, provincial
and territorial governments and the government of Canada. The CTC has
the authority to plan, direct, manage and implement programmes to gener-
ate and promote tourism in Canada. It is made up of industry representatives
from across the country (Goeldner et al. , 2000; Telfer & Hashimoto, 2013a).
In Canada, the provinces also play a major role in setting tourism policy and
initiating programmes. The CTC has also established the Product Clubs
Programme, which provides funding to small and medium-sized businesses
in underdeveloped sectors. Many of these product clubs, such as the Northern
Wilderness Adventure Product Club, involve companies trying to develop
tourism in lesser known regions of the country. Similarly, in the province of
Ontario, Canada, the ministry responsible for tourism has established the
Tourism Marketing Partnership Programme which helps small, diverse inde-
pendent tour operators join forces and establish tour packages. This pro-
gramme has significant potential for fostering tourism development in more
isolated regions.
In developing a specific region, government officials can attempt to pur-
chase jobs and the related benefits of associated growth by offering busi-
nesses a number of different subsidies. These subsidies can include, but are
not limited to: tax abatement, infrastructure and site assistance, low interest
loans, labour force training, regulatory relief, sale-lease back and technical
assistance (Blair, 1995). Blair (1995) suggests that major downtown hotels
almost always receive special government incentives, often from more than
one level of government. Porter (1998) argues that governments should take
an active role in enhancing clusters. 'A location's best chance of attracting
foreign investment and promoting exports, for example lies in its existing or
emerging clusters' (Porter, 1998: 253). In China, the government has estab-
lished Special Economic Zones (SEZ) to generate economic growth, with
Hainan Island SEZ as a site of tourism development (Gu & Wall, 2007).

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