Icot 2012 presentation

Governance Structures for Tourism in Small Island EconomiesCase Study: Jersey, Channel Islands

Location of Jersey, Channel Islands

Geography• Jersey is the largest of the Channel Islands

at 118km sq.• 22km from NW coast of France and 137km

from England• Population of 97,857

Politics• Jersey is a British Isle• It is a Crown Dependency and is NOT part

of the UK• Autonomous government – ‘States of

Jersey’

Economy• Financial services as the dominant industry,

followed by tourism and agriculture(Source: States of Jersey Statistics Unit, 2011)

Location of Jersey, Channel Islands

St Brelade’s Bay

Traditional Seaside Resort

St Ouen’s Bay

Beach experience

Rural experience

St Helier, Jersey

Urban Experience

Mont Orgueil Castle

Heritage Sites

Jersey’s Tourism in 2010

• 689,700 visitors• £230 million on-island visitor spend• Hotels, Restaurants and Bars - 3.5% contribution to GVA

(States of Jersey Statistical Unit, 2011)

• Mature tourist destination, experiencing decline• Traditional seaside resort – ‘bucket and spade’• Needs radical change:

• Attract a more ‘cosmopolitan’ audience• Best hope is in the short breaks market• Hotels that are attractions in their own right• Emphasise the quality of the food offer• Offer quality urban, countryside and beach experiences

(Locum Consultancy, 2006)

•

• Jersey’s tourism marketing department is ‘Jersey Tourism’

• States of Jersey ‘Economic Development Department’ remit

• £5.923 million (37%) of the entire EDD net revenue expenditure budget is allocated to the tourism sector for 2012

(States of Jersey, 2011)

Present Governance Structure for Jersey Tourism

A Public-Private Partnership for Jersey’s Tourism Marketing – The Proposal

Structure: • The PPP would be a relationship between EDD and the industry

• Mixed public-private sector ‘Tourism Board’, led by an independent Chairman appointed by EDD

Funding: • Initial funding from EDD, with subsequent funding dependent on the PPPs

ability to generate private funding

• Funding from corporate contributions, direct income, joint marketing activities

• The PPP would not benefit from centralised EDD support (HR, finance, IT)

A Public-Private Partnership for Jersey’s Tourism Marketing – 6 key Objectives

1. To harness industry leading expertise

2. To work with EDD and other States departments to ensure government policy fully supports growth of the sector

3. To generate industry funding to add to Government investment

4. To operate more commercially

5. Generate a stronger sense of partnership

6. To operate with a private sector culture and deliver quicker and more effective decision making

‘What is clear is that, whilst there are many different organisational models from which Jersey could learn, our circumstances are unique and will require a specific Jersey solution’

(EDD, 2009:8)

MethodologyPilot Study: Data collection phase 1

The ‘Jersey case’:• Unusual political, economic & social characteristics• Applicability of findings to other similar SIEs

Data collection method:• Telephone interviews of between 30 and 60 minutes• Secondary data includes government documents, feasibility studies, consultancy reports,

newspaper articles, blog posts etc.

Sample:• 5 x key respondents – Jersey travel, accommodation and hospitality reps

Limitations:• Timing of the data collection coincided with confidential talks

Considerations:• Anonymity of the respondents• ‘Insider’ status of the researcher

The Findings: Why a PPP for Jersey Tourism?

‘to create a more commercially focused

organisation…’

‘a marketing organisation does not sit well in a civil service department. The two cultures are, to me,

entirely different…’

‘I absolutely don’t think they’re

[Jersey Tourism] are accountable

enough…’

‘Use experienced and specialist professionals to

execute the strategy as opposed to generalists…’

‘Hiring and firing would be that much

easier…’

‘drive money to the sales end and away

from the back office…’

The Findings: Obstacles to the PPP?

‘there were clearly going to be some major problems

devolving staff from a government run civil service

department into a commercial organisation…’

‘Obviously, there are significant additional

costs…’

‘It’s quite difficult, firstly, to get the sector together, and then secondly

it’s quite difficult to get them to agree on anything!’

‘it has just simply not received the political

drive to drive it to completion…’

‘It has been more about maintaining the status quo…’

The Findings: Obstacles to the PPP – ‘islandness’?

‘I suppose the closeness of individuals within

government to the private sector is an issue, yes…’

‘There is no doubt that in a geographic area of 45sq. miles

you’re obviously much more aware of everything that’s going on that you might be if you were

in 450,000 sq. miles…’

‘It’s a bit of an odd thing in Jersey that you write two letters to the Jersey

Evening Post and then that changes government policy…’

‘but there is a genuine concern that finance is so important in terms of the economic activity in Jersey that it’s always going to divert focus and funds…’

‘Islandness’ as an obstacle to PPP?

Does this sound familiar… ?

Small island comparative study… ?

Any questions?

Thank you!