what is a tourism development zone

5 things to know about Nashville's tourism development zone

An obscure government fund associated with the Music City Center has become the unexpected subject of intense political debate in recent months.

The tourism development zone (TDZ) is one of the revenue streams set aside to pay for the $623 million convention center.

Because the revenue collections for Music City Center have come in substantially more than anticipated, some critics have argued that the revenue should be re-routed to cover other government expenses.

But in the case of the TDZ, there are strings attached on how the funds can be spent.

With that in mind, here is a history lesson in why the TDZ was created, what it does and what state law says about how the money is spent.

Why it was created

State law enabled the Metro Council to create the tourism development zone in 2009 to help pay for the Music City Center.

According to the state law, the funds collected by the TDZ may only be spent on debt service and capital projects for Music City Center, or for operating expenses if the building runs in the red, which it has not done since its first year.

If there was no Music City Center, there would not be a tourism development zone.

How it works

A tourism development zone works like this: A boundary is created around a major tourism project. In Nashville, there is a TDZ around Music City Center. Memphis has one around its basketball arena, and there are about 10 similar zones in other parts of the state.

The boundary must be approved by the state building commission. In 2009, the state building commission significantly shrunk the size of the TDZ initially proposed by then-Mayor Karl Dean’s administration.

After the boundary is created, a baseline year is established and all sales tax collections, including both the state and local option, that come in over the baseline year from within that area are set aside in the TDZ fund. Each year, the baseline is adjusted to account for county-wide sales tax growth.

For Music City Center, the baseline year was 2013. So all of the revenue that comes in over the baseline year is collected by the TDZ.

How much money has been collected

Since 2013, the Music City Center’s TDZ has collected $122.8 million. Of that, $87.9 million was the state option and $34.9 million was the local option.

That means, if there was no TDZ the state would have collected $87.9 million in sales tax revenue and Metro would have collected its $34.9 million.

Convention Center Authority re-routes money to Metro projects

The Convention Center Authority has spent well more than $34.9 million on projects funded by tourism revenue.

The agency spent $38.5 million on the parking garage for the 5th and Broadway development where the old convention center was located. It spent $14.8 million on the Lafayette Street property for the Metro Transit Authority and most recently committed $6 million for the National Museum of African American Music.

The CCA has also committed $20 million to the Metro general fund to be spent on police overtime and other tourism-related expenses incurred by the city.

These projects are each tourism related, located near Music City Center and funded by other convention center revenue streams besides the TDZ. Critics say the fact that the Convention Center Authority is able to reroute some of its funds calls into question if more could be spent on other projects.

Could the TDZ be cancelled?

Metro Council can pass legislation to end the TDZ, but it would be difficult.

The TDZ was created to ensure that the Music City Center was adequately funded. But, thanks largely to a boom in leisure tourists, the tourism taxes and fees set aside to pay for the debt issued to build the $623 million convention center have come in well above what was expected.

Put simply, if the TDZ was never approved by council, the city still would have had plenty of money to pay for the debt on Music City Center. That has made the TDZ a source of political disagreement, including in the Nashville mayor’s race.

However, if a future council and mayor moved to cancel the TDZ, they would have to negotiate with and receive sign-off from bondholders, who are unlikely to give away a funding source that guarantees they will get paid back on time.

Reach Nate Rau at 615-259-8094 and [email protected]. Follow on Twitter @tnnaterau.

Tourism and Development Concepts and Issues

Journal of Tourism Futures

ISSN : 2055-5911

Article publication date: 15 December 2017

Issue publication date: 15 December 2017

• Development
• Developing countries

Webster, C. (2017), "Tourism and Development Concepts and Issues", Journal of Tourism Futures , Vol. 3 No. 2, pp. 194-195. https://doi.org/10.1108/JTF-09-2017-066

Emerald Publishing Limited

Copyright © 2017, Craig Webster

Published in the Journal of Tourism Futures. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

One of the recurring themes in tourism studies is the notion that tourism is a vehicle for economic development. This edited book makes a valuable contribution by exploring the important concepts and issues that are linked with the perception that tourism can be a vehicle for leading countries out of poverty. While edited volumes, in my opinion, are not usually the most readable or useful types of books, this edited volume is thorough and extensive, giving anyone who is interested in the issue of tourism and economic development issues a great deal to read through.

The book is divided into three different parts. Part 1 deals with the conceptual perspectives of the relationship between tourism and development. This first part is composed of only two chapters, one exploring the relationship between tourism and development and the other exploring the evolution of development theory and tourism. Part 2 is composed of seven chapters and deals with the relationship between development and tourism. Part 3 is also composed of seven chapters and deals with barriers and challenges to tourism development. In addition, there is an introduction, explaining the intention of the book and explaining the logic of the delineation of the book into three different parts. The last chapter, one chapter in Part 3, is a conclusion authored by the editors, explaining a great deal about the need for this second edition, mentioning the improvements to the new edition, and highlighted how this book contributes to the discussion of tourism and development.

The book has many of the features one would expect, such as biographical information about the 14 contributors to the book as well as an index and extensive reference list. For those who would like an extensive list of resources on the topic of development and tourism, this 71-page long reference list may be in and of itself a helpful resource. The 16 chapters contain 21 figures and 21 tables, adding to the visual information that breaks up the monotony of the prose in the chapters and summarizes a great deal of information or illustrates a point in an easy-to-understand way. In addition, the front cover is attractive, dominated by green and blue with what appears to be a stock photo of several cruise ships.

There are some definite strengths to this book. First, it is a very thorough book that includes the perspectives of many respective researchers in the field. Anyone doing serious research in the field would recognize many of the names that appear as authors, including Richard Sharpley, Dallen Timothy, and C. Michael Hall, just to name a few. To have these respected and accomplished authors to contribute to the book is nothing to sneeze at. In addition, by having so many different authors look into the relationship between tourism and development in a very mature and deep way and from different perspectives is quite helpful. For example, the chapter on human rights and tourism development could be used as a good primer on human rights, explaining the concept of human rights and then going on to explain the relationship between human rights and tourism development. There are several of the chapters that contain information that would make the chapter serve as a useful primer for other topics such as international studies or development studies, since it is presumes that most of us who research tourism do not have a background in international relations, development, or human rights.

There are some critical comments that could be made about this book but they tend not to be very deep. One thing that seems to be missing is a chapter that would deal with the history of tourism as a vehicle for development. While the book does have chapters that occasionally deal with this, the book mostly looks at tourism and development from a theoretical perspective. In addition, I am not sure what the cover photo has to do with the topic of the book and I feel that a more relevant cover photo would have been a better choice. Although it is pleasant to see cruise ships and blue skies, I am not sure what this has to do with the topic and would imagine that there would be a better way to convey the concept of the book in a visual way. Also, the decision to place references at the end of the work in one large reference section rather than have references at the end of each chapter is sometimes a bit inconvenient for readers such as myself, as I prefer to look at a shorter list that is more compact in terms of subject matter covered and is only a few pages long rather than 71 pages long.

All-in-all, the book has a great deal of value, although I would think that it would only be accessible to a fairly limited audience. For those of us interested in the future, it is hard to get a great deal of value out of this book, as the frame of reference is largely historical and theoretical, although the value of this is somewhat rectified by the fact that the content gives thorough and intelligent background information for the many political and ecological things that we are concerned about in the future (poverty, environment, climate change, and sustainability). While many of the chapters are wonderful introductions to subject matter that most people in the field know little to nothing about, the complexity of the language and depth of discussion would make it hard for most people who have not completed a bachelor’s level education to comprehend. As such, though, it would be a very useful and helpful book for those teaching in related issues at the MA level or PhD level. If I were teaching a course at the post-graduate level in tourism and development, I would want this and would use it as a central text, as deals with such issues as human rights, sustainability, and poverty reduction in a sophisticated and intelligent manner, appropriate for that level. However, the language and sophistication of the concepts would likely make the book inaccessible for most people. This is not light reading. But it is a nifty and thorough reference book containing primers on topics/areas of study in which most in the field do not have a strong background.

Acknowledgements

© Craig Webster. Published in the Journal of Tourism Futures . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

About the author

Craig Webster is an Assistant Professor at the Department of Family and Consumer Sciences, Ball State University, Muncie, Indiana, USA.

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Tourism Development Zones

Unlocking Alberta's potential economic impact

Purpose of this project

Travel Alberta is striving to double the tourism economy by 2035 by capitalizing on rural Alberta's untapped potential. Right now, nearly 60% of visitation and 75% of tourism expenditures occur in our popular tourism destinations:

• Lake Louise

The benefit

Albertans can explore more of their backyard while creating space for international visitation in our more popular destinations.

Where are the zones?

After extensive engagement across the province, we identified 10 Tourism Development Zones (TDZ) with a high potential for tourism growth and economic impact over the next 10 years. 

• Fort McMurray Wood Buffalo  
• Northern Rockies  
• Northeast Lakelands  
• David Thompson  
• Olds to Lacombe  
• Cochrane/Sundre/Rocky Mountain House
• Canadian Badlands  
• Lethbridge to Medicine Hat
• Southern Rockies

How did we identify the zones?

We carefully assessed each of the TDZs across 30 factors related to place, people, and product to determine an overall potential score.

Tourism has the potential to strengthen the economy, amplify culture, enhance the environment and foster innovation.

Indigenous Engagement

Indigenous tourism in Alberta enriches Indigenous communities and businesses by preserving cultural heritage, creating sustainable economic opportunities, and fostering cross-cultural understanding. Through authentic experiences, storytelling, and art, Indigenous tourism celebrates tradition, educates visitors, and contributes to the cultural and economic well-being of Indigenous peoples.

Travel Alberta is committed to working with Indigenous Tourism Alberta to build relationships and facilitate Indigenous tourism opportunities throughout the province.

Strong community and stakeholder engagement is key to sustainable tourism growth.

Thank you to everyone who participated in this phase of the initiative. We are now at the stage of co-designing short-, medium-, and long-term strategies that will grow Alberta’s tourism industry across the TDZs.

Unlock your potential

We want to hear from you.  To learn more about tourism opportunities in your area, reach out to your Destination Development Manager.

Get their contact information

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What is the impact of tourism on development?

Image:  Passengers walk across an air bridge as they disembark a flight at Changi Airport in Singapore. REUTERS/Vivek Prakash.

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} John Perrottet

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Tourism is growing, and growing fast. After surpassing 1 billion international visitors in 2012, we are expecting 1.8 billion by 2030. Tourism is growing faster than the global economy and, for the first time, the statistics for 2015 are expected to show that there were more trips taken to the developing world than to the developed world. But what does this actually mean? Growth, on its own, is not enough. Destinations and their stakeholders are responsible for ensuring that growth is well-managed; that benefits are maximized; and that any negative externalities are minimized. This requires a continuous process of planning and management that evolves and that can be measured over time. For the World Bank Group, our clients and our development partners, this process of planning and management is a central interest. How can we help these processes to deliver more and better development impact? What kinds of interventions or types of assistance will deliver the best results? How do you define the best results – for whom? – and how do we measure them? Being able to demonstrate how the tourism sector contributes to the Bank Group’s twin goals of eliminating extreme poverty and promoting shared prosperity is an imperative for all stakeholders. It’s relevant for national governments, sub-national state agencies, businesses (both multinationals and SMEs), multilateral development banks, NGOs, academics and think tanks. Moreover, it’s vital in helping guide future planning and development, gaining access to and applying for funding, and demonstrating progress to constituents at all levels.

Despite the great breadth and depth of existing impact information, however, serious concerns remain about the accuracy, complexity, gaps, comparability and sustainability of the types of the impact analyses that have been carried out. The Bank Group’s Sustainable Tourism Global Solutions Group recently convened a thought-leadership event in Washington to begin a preliminary discussion about how all stakeholders can come together to try and address some of the current shortcomings. During the “ Measuring for Impact in Touris m” event, we heard about a wide range of challenges for those working in this area and we began to map out the greatest gaps and issues. As Anabel Gonzalez, the Senior Director of the Trade and Competitiveness Global Practice, said at that conference: “We want to be better at monitoring and evaluating our impact, we want to learn from others, and we want to contribute more effectively to tourism development. I believe these are goals most of you will share. We invite you to join this discussion – and be frank, open and provocative.”The findings can be found in our report, “ Towards More Effective Impact Measurement in the Tourism Sector: Observations and Key Issues ,” which highlights a number of priorities. Some of those challenges concern the availability, quality and consistency of data; the high cost of impact measurement for SMEs; the proliferation of different systems; issues of attribution; quantifying notions of “value”; and the ability to communicate effectively to a wide range of audiences. Some key areas for immediate follow-up and further analysis were also identified. They include:

-Exploring the theory of change by examining more closely the proposition that, when tourism growth occurs, those living in extreme poverty benefit and by digging deeper into what tourism growth really means for the poor, especially in terms of employment.

-Assessing the impact value of different types of tourism.

-Assessing and developing the role of technology for data collection, impact measurement and communication.

-Evaluating the use of training for better communication – including assessing what has been tried and what has worked and considering how it could be scaled up.

-Analyzing the necessity and practicality of improving collaboration among various actors, and assessing the alignment of frameworks along with proposals for greater alignment.

-Developing ideas and proposals for the enhanced sharing and pooling of impact data.

-Developing ideas and proposals for greater inclusion of SMEs.

The Bank Group is committed to advancing this agenda . As an international organization heavily invested in the sector, with a deep motivation to deliver change for the world’s poorest people, we aim to take a leading role in a number of key areas. Other major stakeholders have also shown their support. Harvard University and the University of Sussex have asked to host follow-up events. Wyndham Hotels, the World Trade Organization, the United Nations Environment Program, the World Wildlife Fund and Sustainable Travel International have sought specific collaboration and partnership opportunities. The Bank Group will continue to convene meetings, promote dialogue, conduct research and publish relevant information – focusing our interventions on those areas where we’re well-placed to fulfill the twin goals of eliminating extreme poverty and promoting shared prosperity.

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Encyclopedia of Tourism pp 1–3 Cite as

Zoning, tourism

• Malcolm Cooper 3  
• Living reference work entry
• First Online: 01 January 2015

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Zoning, as it is popularly conceived, is part of the toolkit of command and control planning. Regulatory frameworks using zoning are among the most applied methods for implementing development policies and plans and/or for protecting the natural and sociocultural environments of a community. In this context, zoning seeks to regulate land uses by separating them based on their incompatibility, or by allowing compatible uses to coexist together. Thus, this technique is used to divide a town, city, village, or rural area into separate residential, commercial, industrial, and/or multiple use subareas, with a view to preserving the desirable characteristics of each type of development and regulating its impact on the local environment.

Regulations generally prescribe limitations on development within a zone. Among other things, these may control building styles and layout, monitor the provision of service infrastructure, provide for public access and parking/loading areas, deal with visual...

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Baiquni, M. 2009 Belajar dari Pasang Surut Peradaban Borobudur dan Konsep Pengembangan Pariwisata Borobudur. Forum Geografi 23:25-40.

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Gunn, C., and T.Var 2002 Tourism Planning. New York: Routledge.

Kasterlak, B., and B. Barber 2012 Fundamentals of Planning and Developing Tourism. New York: Prentice Hall.

UNWTO 1993 Sustainable Tourism Development Guide for Local Planners. Madrid: World Tourism Organization.

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Cooper, M. (2015). Zoning, tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_226-1

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Home / Special Tourism Zones: An Engine of Economic Growth

Special Tourism Zones: An Engine of Economic Growth

Source: Invest India

Introduction

India's socioeconomic development, the creation of jobs, and the country's foreign exchange benefit significantly from tourism. Hence, tourism has a massive multiplier effect on the GDP of the country. The Government of India has launched several measures over the past few years to boost tourism in the nation. According to the Budget announcement for 2017–18, the Ministry of Tourism plans to create five Special Tourism Zones with world-class infrastructure around the nation for holistic tourism development.

What are Special Tourism Zones (STZs)?

STZs are envisioned as holistic communities with the world's best infrastructure built around strong tourist themes complemented by first-rate amenities to provide unique experiences. The proposed zones aim to establish tourism as a significant driver of economic growth. It seeks to maximise the local community's benefits while focusing on preserving natural resources for future generations. STZs will have a variety of tourist-friendly recreational, leisure, entertainment, educational, and cultural amenities. To provide visitors with a variety of experiences and encourage longer stays, the designated regions are proposed to contain at least three to four major tourism themes such as cultural, wildlife, heritage, adventure, coastal, etc.

Benefits of STZs

Tourism has a dynamic labour market, with high labour turnover among organisations and a diverse range of career options with decent wages. An increase in the number of inbound tourists benefits both the economy of the destination and generates employment opportunities.

One of the most labour-intensive components of the tourism industry is the Hospitality Service. It could potentially be the largest employer within an STZ. Enhancement of employment opportunities of the local community is one of the prime objectives for the development of these STZs.

• The sector gives MSMEs the opportunity to launch their own companies and offers chances to create self-employment. Additionally, people not falling within the conventional employment category also get benefited from the tourism industry. This includes workers with minimal qualifications low-skilled labours, members of ethnic minority groups, immigrants, young people without jobs, and women who can work part-time. This paves the way for eradication of both poverty and unemployment, by enhancing the economic activities for the locals.
• Construction of world-class infrastructure including new roads and highways, developed parks, improved public spaces, healthcare facilities, and new airports will make an STZ accessible to tourists. The development of STZs will improve the quality and standard of living of the locals living around the site as it aims to improve the overall infrastructure of a place leading to reliability and sustainability of the tourism product.
• All the components of an STZ such as hotel accommodation, commercial and medical facilities, and tourism products (museums, theme parks etc) have the potential to generate revenue. Therefore, a financially viable STZ can be expected to generate a positive free cash flow during the operating period. It can be estimated that tourists visiting and staying in the STZ will generate significant revenue, leading to an increase in foreign exchange.
• Tourism facilitates cultural exchange between visitors and locals thereby enriching the host country’s cultural diversity. Brownfield STZs can be potentially developed to utilize additional areas that are in close proximity to existing tourist destinations. In addition to incentivising local and ecosystem players, it will pay for the conservation of archaeological and historic sites.

Adverse Impact of STZs

One has to keep in mind that there are two sides to a coin. Hence, there are important considerations that can help regulate and manage any adverse impacts of the STZs.

• Communities in coastal and hilly regions rely heavily on natural resources like coastlines and forests for livelihood. If a zone is constructed in such areas, it may lead to physical displacement of locals and also causing loss of access to natural resources which can affect the people dependent on those resources. However, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act of 2013 shall serve as the foundation for the Resettlement and Rehabilitation (R&R) Plan for project-affected families in STZs. It will guarantee an adequate rehabilitation package and protection of the rights of marginal communities. The Act aims to provide a better standard of living and to make efforts to provide sustainable income to the affected families. The proposed STZ shall contribute to the creation of employment possibilities, and additional economic activity for the local community. It will also lead to livelihood enhancement in the region and help raise the standard of living of the local community.
• There is a risk of damage environment from the creation of an STZ The democratic spaces available to communities under the Environmental Clearance Regulations to decide on tourism development or voice their consent or dissent to projects may not apply in the single window clearance approval mechanism.
• In the current age of promoting sustainable and responsible tourism, it is of utmost importance to ensure the development of STZ happens in a holistic manner keeping the principles of sustainability in mind. The use of renewable energy, eco-friendly material, e-vehicles, optimizing resource efficiencies, and other similar measures should be encouraged. Special incentives may be given to encourage green investments and intends to integrate open and green places in STZs. Through these sections, environmental consequences can be decreased.

The benefits of STZs for the Indian economy are numerous which include FDI inflow, employment generation, infrastructure growth and a boost to the service & industrial sectors. However, there is a need to prepare a roadmap to mitigate any adverse impact of STZ on tribals and other settlements living in affected areas. In the long run, STZ can have a positive impact on people living in the region courtesy the following reasons:

Firstly, developing STZ will increase employment opportunities and generate livelihood for the local community and tribals. They will no longer be solely reliant on natural resources and will be able to make use of all the other opportunities and resources available which will raise their standard of living. One of the guiding principles of STZ should be creation of conditions for environmental protection and socio-economic development of the region through integrated tourism development. This can ensure enhancement of the region and overall development of the economy and the local community.

Secondly, STZ is proposed to be based on strong themes including tribal and coastal themes. Tourism in tribal areas can have a significant positive impact if done sensitively and responsibly. It will lead to the creation of financial opportunities for locals and help create awareness about indigenous people.

STZ has the potential to fuel India's development and economy and can lead to tourism becoming an engine of economic growth. The sector has undergone remarkable advancements in recent years including being accorded an industry status in some states like Rajasthan, Gujarat, etc. Given the incredible growth potential of tourism sector, it is crucial that the development of unique regions like special tourism zones leads the next stage of growth.

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List of cluster destinations and tourism development areas

(Legend: Lumped into 20 clusters, the Tourism Development Areas (TDA) are mostly long recognized as protected areas (PA) being natural parks (NP), marine reserve (MR), protected landscape (PL), wildlife sanctuary (WS), protected seascape (PS), protected landscape-seascape (PLS), watershed reservation (WR), or watershed forest reservation (WFR).)

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UN Tourism | Bringing the world closer

• SUSTAINABLE DEVELOPMENT
• Competitiveness
• Innovation and Investments
• ETHICS, CULTURE AND SOCIAL RESPONSIBILITY
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Sustainable development

"Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities"

Sustainable tourism development guidelines and management practices are applicable to all forms of tourism in all types of destinations, including mass tourism and the various niche tourism segments. Sustainability principles refer to the environmental, economic, and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee its long-term sustainability.

Thus, sustainable tourism should:

• Make optimal use of environmental resources that constitute a key element in tourism development, maintaining essential ecological processes and helping to conserve natural heritage and biodiversity.
• Respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to inter-cultural understanding and tolerance.
• Ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation.

Sustainable tourism development requires the informed participation of all relevant stakeholders, as well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable tourism is a continuous process and it requires constant monitoring of impacts, introducing the necessary preventive and/or corrective measures whenever necessary.

Sustainable tourism should also maintain a high level of tourist satisfaction and ensure a meaningful experience to the tourists, raising their awareness about sustainability issues and promoting sustainable tourism practices amongst them.

COMMITTEE ON TOURISM AND SUSTAINABILITY (CTS)  

Biodiversity

UN Tourism strives to promote tourism development that supports, in equal measure, the conservation of biodiversity, the social welfare and the economic security of the host countries and communities.

Climate Action

Tourism is both highly vulnerable to climate change while at the same time contributing to it. Threats for the sector are diverse, including direct and indirect impacts such as more extreme weather events, increasing insurance costs and safety concerns, water shortages,  biodiversity loss and damage to assets and attractions at destinations, among others.

Global Tourism Plastics Initiative

The problem of plastic pollution in tourism is too big for any single organisation to fix on its own. To match the scale of the problem, changes need to take place across the whole tourism value chain.

Hotel Energy Solutions (HES)

Hotel Energy Solutions (HES) is a UN Tourism -initiated project in collaboration with a team of United Nations and EU leading agencies in Tourism and Energy . 

Observatories (INSTO)

The UN Tourism International Network of Sustainable Tourism Observatories (INSTO) is a network of tourism observatories monitoring the economic, environmental and social impact of tourism at the destination level. 

When responsibly planned and managed, tourism has demonstrated its capacity to support job creation, promote inclusive social integration, protect natural and cultural heritage, conserve biodiversity, generate sustainable livelihoods and improve human wellbeing.  As the sector is experiencing tremendous growth, collective efforts to ensure its long-term sustainability are essential.

Resource Efficiency in Tourism

The report aims to inspire stakeholders and encourage them to advance the implementation of the SDGs through sustainable tourism.

Small Islands Developing States (SIDS)

Small Island Developing States face numerous challenges. For a significant number, their remoteness affects their ability to be part of the global supply chain, increases import costs - especially for energy - and limits their competitiveness in the tourist industry. Many are increasingly vulnerable to the impacts of climate change - from devastating storms to the threat of sea level rise.

Travel facilitation

Travel facilitation of tourist travel is closely interlinked with tourism development and can be a tool to foster increased demand and generate economic development, job creation and international understanding.

UNGA Sustainable Tourism Resolutions

The UN Tourism is regularly preparing reports for the General Assembly of the United Nations providing updates on sustainable tourism policies both from UN Tourism member States and States Members of the United Nations, as well as relevant agencies and programmes of the United Nations system.

WHAT IS TOURISM ENTERPRISE ZONE?

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Published — December 17, 2020 

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Foreign lease for tourism projects: Long-term foreign lease over lands in the Philippines

Tourism Enterprise Zones have historical and cultural significance

Tourism enterprise zones may be further utilized for bringing new investments in tourism establishments and services, registration as tourism i enterprise where appropriate, is encouraged.

M an cannot discover new oceans unless he has the courage to lose sight of the shore. – Andre Paul Guillaume Gide

Tourism industry is one of the most affected sectors by the COVID-19 Pandemic. Currently, the national and the Local Government Units are hand in hand boosting the tourism industry. However, take note that even before the Pandemic, Republic Act No. 9593 or the Tourism Act of 2009 , as one of the government’s engine in amplifying the tourism industry, was already implemented.

What is Tourism Enterprise Zone?

The law says:

Any geographic area with the following characteristics or features may be designated as Tourism Enterprise Zone (TEZ):

• The area is capable of being defined into one contiguous territory;
• It has historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it;
• It has, or it may have strategic access through transportation infrastructure, and reasonable connection with utilities infrastructure systems:
• It is sufficient in size, such that it may further be utilized for brining new investments in tourism establishments and services; and
• It is in a strategic location such as to catalyze the socioeconomic development of neighboring communities.

When may a particular area or territory be designated as TEZ?

A particular area or territory may be considered as TEZ when designated as such by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) upon the recommendation of any Local Government Unit (LGU) or private entity, or through joint ventures between the public and the private sectors.

The application for designation as a TEZ must be accompanied by a development plan which shall, consistent with the principles of economic, cultural and environmentally sustainable development. It shall specifically identify the following:

• Tourism focal points and resources available within the proposed TEZ and adjoining areas;
• Features which satisfy the requisites for designation of a TEZ;
• Areas for infrastructure development, for investment, and for preservation, as well as the kind of development nature of investment or sustainable activities allowed within preserved areas, respectively;
• Medium-and long-term studies on market trends, and corresponding development strategies for the TEZ;
• Studies on the environmental, cultural and social carrying capacity of the TEZ and surrounding communities;
• Design plans for structures which incorporate design and sustainability principles from architecture and the surrounding environment; and
• Such other information that the TIEZA may require.

Are there incentives for Tourism Enterprise Zone Operators? A related article will be posted in a few days.

Alburo Alburo and Associates Law Offices  specializes in business law and labor law consulting. For inquiries, you may reach us at [email protected], or dial us at (02)7745-4391/0917-5772207.

All rights reserved.

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Cape Town Foreshore Tower Block site up for auction

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The scale of investment in this small 5km² strip arguably makes it the most exciting and vibrant development node in South Africa, says High Street Auctions director Greg Dart, and an area that private equity investors can’t ignore.

“Big groups such as Amdec and the V&A Waterfront are dominating the latest development drive in the narrow strip of seafront acreage that is to all intents and purposes the only remaining greenfields land in the immediate vicinity of Cape Town’s CBD.

“These companies have sunk billions of rands into the area, because they recognise its value. If that isn’t a banner headline for developers to fight for the Tower Block development lease - when High Street takes it to auction at the DHL Stadium in Green Point - I don’t know what is!”

Dart says it wouldn’t be an understatement to call Cape Town’s Foreshore and immediate surrounds, the holy grail of South African real-estate locations, because the 5km² under discussion ticks every development-value box, including:

• Being the undisputed hub of Cape Town’s multi-million-rand business tourism industry. This is anchored by the world-class CTICC and its cluster of luxury hotels and surrounding amenities that include the Christiaan Barnard Hospital, The Artscape Theatre Centre and fine-dining restaurants.
• The CTICC business tourism hub located just a short stroll away from the V&A Waterfront.
• The Waterfront itself being a global visitor attraction and South Africa’s most popular tourist destination, with a footfall of 24 million a year.
• Growing status in lieu of offering the most attractive, modern and practical mixed-use developments in line with universal demand for live work and play communities that deliver in every respect.

High Street associate director Shawn van Jaarsveld says the area’s investment potential has grown exponentially since 2000, and now appears to be reaching terminal velocity.

“The latest surge started with The Yacht Club. After Amdec completed the R1.5bn mixed-use development in Roggebaai five years ago, the group began to roll out an ambitious R15bn plan for a six-tower precinct called Harbour Arch on what was hitherto 5.8ha of wasteland at Culemborg on the eastern edge of the Foreshore.

“In mid-2023 Tower One, which was fully-financed by Absa Bank, was taken to market. Amdec sets the value of the 80,000m² build at around R2.4bn, which includes 560 apartments, restaurants, retail spaces and more than 1,000 parking bays. The apartments’ launch prices were between R2.1m and R8m.”

Van Jaarsveld says Cape Town Central City Improvement District figures note that between 2014 and 2017, more than R5bn was invested in various Foreshore developments.

“What we’ve been seeing of late, though, is single developers committing triple, or even quadruple, that amount to projects that will forever change the skyline of that narrow oceanfront corridor between Culemborg and Granger Bay.

“After Harbour Arch’s launch came the City of Cape Town’s announcement that it would auction a 99-year-lease for a 25,000m² bulk Tower Block development nestled in the Foreshore precinct, adjacent to the CTICC.

“Shortly after that, the Waterfront said it hoped to start rolling out a R20bn development plan the following year, and was in the process of applying for an additional 440,000m² in development rights across its footprint, with most of the new builds planned for Granger Bay.

“Developments on this scale bode extremely well for the ongoing success of the area. It’s already thriving, and with all this new development the only way is up.”

Critical importance: Tower Block

High Street Auctions managing director, James Dall says the Tower Block development site is of critical importance to developers looking to capitalise on Cape Town’s thriving economy and rapidly expanding tourism industry.

“The Foreshore’s greenfields development opportunities are rapidly disappearing. Land is scarce, and finding a willing seller, even harder. The moment to get into this very, very finite market is now.”

Dall says the Tower Block development lease auction date was shifted to 25 April from 27 March after numerous bidders requested additional time for technical site inspections and to complete internal due-diligence procedures.

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“The City of Cape Town and High Street Auctions are unequivocal in wanting a level playing field at the auction, so we were happy to make this accommodation.

“But while the auction has changed, the auction parameters have not. Registered bidders will enter bids reflecting the monthly rental [exclusive of Vat] they are willing to pay under a Triple Net Lease agreement encompassing all repair-, maintenance- and insurance costs.

“The initial lease period is 60 years, with a 20-year renewal opportunity followed by an additional 19-year optional extension. Cumulatively, the total lease option is 99 years.”

Hospitality industry priority

Dall says that he believes by virtue of the location, that hospitality companies should be at the head of the auction bidding queue to snap up the Tower Block development lease.

“Those visionary entrepreneurs who could pull off a next-level luxury apart-hotel offering 24-hour concierge services, valet parking, limos on demand, personal shoppers on call – basically the whole nine yards – should also be jostling right alongside them, because it’d be a unique offering in the area.”

The Foreshore Tower Block lease will be one of two substantial City of Cape Town development opportunities going under the hammer at DHL Stadium in Green Point starting at noon (Central African Time) on 25 April.

The second is a sale auction of one of the few remaining development sites in the highly desirable Century City precinct with GB3 zoning and permissible bulk of approximately 25,000m².

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The Century City site is located in the proximity of mixed-use developments combining office-, retail-, residential and leisure components in an integrated, stimulating and aesthetically pleasing urban environment.

The City’s Mayoral Committee Member for Economic Growth James Vos said: “These sites form part of the City's property disposal pipeline to unlock private sector-led development opportunities.

"It will certainly have a ripple effect that will boost Cape Town’s local economy, creating jobs and contributing significantly to the metro's GDP. The proceeds from these property transactions will be used for service delivery and related infrastructure investment across the city.”

Dall says High Street’s two-lot auction on behalf of the City of Cape Town starts at noon sharp Central African Time on 25 April at the DHL Stadium in Green Point, Cape Town.

“Our event on the 25th will be a hybrid live and digital live-stream auction, with bids in ZAR accepted in real time from the room and from online bidders around the world."

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