Public and Private Sector Synergy in Tourism and Partnership Models

Tourist industry is characterised by highly competitive environment in which private sector is able to achieve many, above all financial effects. However, contemporary understanding of development includes active policy of the government, its departments and institutions. In terms of tourism development, the role of government is even more highlighted because of the total effects that tourism has on national economy and environment. In such a context, all tourism stakeholders have to act together in order to achieve economically efficient and sustainable tourism development at the same time. The responsibility for the tourism development lies on close synergy of public and private sectors’ interests. The aim of this paper is to examine the importance of public-private partnerships in tourism in Croatia. The paper consists of two chapters. The first chapter Public and Private Sector Synergy in Tourism elaborates contemporary theory and trends of public-private partnerships in tourism. It also suggests main reasons of both sectors for partnering and examines the four main areas of possible public-private sector cooperation in tourism: improving the attractiveness of a destination, improving marketing efficiency, improving productivity and improving overall management of the tourism system. The second chapter Contractual Forms of Public-Private Partnerships examines the legal framework and models of public-private partnerships in Croatia. It also offers some examples of public-private partnerships in tourism with the review of the activities associated with the realization of those projects.