Public-private cooperation scheme between culture, tourism and industry in South-East Europe practical handbooK WP4 leader: Chamber of Small Business and Entrepreneurship of Maribor, Slovenia Authors: Albin Keuc (Coordinator), Cecile Rousset and Valentina Colleselli, Vladimir Rudl, Eugen Iordanescu Date: January 2014 We thank all the project partners and external consultants for their cooperation The contents of this publication are the sole responsibility of the Maribor Development Agency, and can in no way be taken to reflect the views of the European Commission, neither of the SEE Programme Authorities. Practical Handbook CONTENT 1. 7 introduction : support to the planning process a flexible model adaptable to the diversity of contexts 8 culture, industry and tourism: new business opportunities 9 2. , 11 developing public private cooperation between culture tourism and production clusters 2.1 a three-step methodology 12 3. / / 15 bestpracticesanalysisofsynergiesbetweenindustry tourism culture 3.1 hungary 16 3.1.1 selfstarter (hu1) 16 3.1.2 koho - the coworking house pécs (hu2) 18 3.2 italy 19 3.2.1 cema museum (i01) 21 3.2.2 foscarini rossi e riviera del brenta shoes cluster (i02) 22 3.2.3 venezia nativa consortium – venissa project (i03) 24 3.2.4 vicenza e (i04) 24 3.2.5 sportsystem montebelluna cluster – shoe museum (i05) 25 3.2.6 metacluster of cultural heritage and villa zileri motterle best practice (i06) 27 3.2.7 wine and taste road of rimini hills (i07) 29 3.3 romania 32 3.3.1 peasants market “transylvania” sibiu (ro1) 32 3.3.2 the cultural embassy of sibiu (ro2) 33 3.3.3 tourism association of sibiu county (ro3) 34 3.4 slovakia 35 3.4.1 košice tourism (sk1) 36 3.5 slovenia 38 3.5.1 veržej art & craft centre (si1) 38 3.6 best practices summary matrix 39 4. - 43 cmcmodelsofpublicprivatecooperations 4.1 aims, processes and results of cooperations 44 4.2 cmc models 45 3 Practical Handbook 5. 51 cmccooperationcycle supporting diversity 53 5.1 initiating an idea 53 5.1.1 situtation analysis 54 5.1.2 establishment of the start team 54 5.1.3 developing a work plan 55 5.1.4 engagement strategy 56 5.2 planning 56 5.2.1 vision and goals 57 developing a vision 57 5.2.2 scenario development 57 overall scenario development, evaluation and selection process 57 scenario development and definition of decisive factors 58 funding and financial issues to be considered in scenario development 58 scenario analysis and selection 58 methodological tools 59 5.2.3 the final work plan 59 definition of strategic and functional objectives 59 definition of indicators for measuring the progress against objectives 60 5.2.4 stakeholders and partners 60 stakeholders and initiators 60 partners 61 cooperation and engagement 62 identification, structure and process management 62 5.2.5 organisation structure 64 legal status of the ppc project 64 ownership issues 64 management staff 64 5.2.6 risk analysis and management 64 overall risk analysis and management 64 risks related to stakeholder engagement 65 identifying existing and potential barriers 65 5.2.7 inclusive communication and cultural competency 67 5.2.8 financing 67 sources of funding 67 cost and income from operations 68 sustainability – cash flow forecast 69 5.3 implementation 71 5.3.1 implementation structure 71 5.3.2 marketing strategy 71 5.4 monitoring 72 5.4.1 monitoring, evaluation, traceability 72 5.4.2 monitoring and evaluation indicators 74 5.4.3 traceability 74 4 Practical Handbook 6. 77 literature 6.1 bibliography 78 6.2 internet sources 78 graphics graphic 1: cmc public private cooperation models – distribution of best practices 46 graphic 2: cmc public private cooperation cycle 52 graphic 3: swot analysis 54 tables table 1: best practices summary matrix 39 table 2: cmc ppc models summary 48 table 3: the three levels of the ppc plan 59 table 4: objectives in stakeholders’ engagement 61 table 5: why to involve stakeholders in the ppc process 62 table 6: key stages of engagement 63 table 7: an example of planned financial sources 68 8: ( ) & table anexampleofa simplified planofcosts incomefromoperationsduringthe investment lifetime 69 table 9: cash flow forecast 70 table 10: monitoring and evaluation checklist 73 table 11: output, result and impact indicators 74 5 Practical Handbook 6 Practical Handbook 1. INTRODUCTION 7 Practical Handbook The CMC PPC Handbook is a tool prepared to help various actors in culture, tourism and industry in South East Europe in the preparation of a specific public private cooperation (PPC) agreement. This document details a comprehensive vision that considers all development aspects of the PPC process, providing practical insights into case studies. Its main objective is to enable initiators and other actors to integrate all development steps into a unique plan through a common vision shared by all participants. The main goal of this handbook is to allow the target groups to investigate: • which are the best opportunities of development and cooperation between the productive sector (usually organized into clusters, but not exclusively), culture and tourism; • how to exploit culture and cultural heritage in order to create new business opportunities; and • various models of PPCs that have ended up creating direct links between the tourism sector and the productive sector, enhancing the multiplier effect. In addition, the handbook also provides an overview of the CMC Project Cycle. Although there is broad diversity inside the different CMC case studies analysed in terms of location, ownership, legal backgrounds and broader economic, social and urban contexts, implicating a broad variety of actors to be involved at various stages of planning and implementation of PPC processes, it should be emphasised that all cases have been selected because they specifically represent initiatives connecting industry, tourism and culture. In case of all CMC PPC case studies, municipalities, local or regional governments played a crucial role in the PPC process. This is particularly true for the preparatory activities and initial planning, where broader political, economic, social and urban objectives related to PPC have been established and pursued. There is no “correct“ public, private or business cluster actor to start the PPC process, but it is crucial to approach the phasing and engagement with commitment and pragmatism. All stakeholders, be them public institutions, private organizations, or local government, need to have a clear and unambiguous role in identifying, selecting and implementing project idea proposals. Proposals should make it clear that building a cooperative project among private and public actors is a comprehensive and demanding undertaking. It is clear that local or regional governments need to build a convenient framework for local investments, in which transparency, definition of the goals, legal clarity, economic incentives, public agreement and consensus-building play key roles. The CMC PPC Handbook thus tries to present a complex process of PPC planning in a systematic way. Due to an extremely complex matrix of issues and steps, keeping the handbook short and simple has been the guiding principle in order to provide the reader with clear references. In order to keep the basic structure clear and avoid redundancy, additional references are provided (internet resources and background documents). s : upport to the planning process a flexible model adaptable to the diversityofcontexts A methodology has been created in order to cover all stages of the PPC planning process, thus providing a basic but comprehensive “planning tool” even if there is a great variety of PPCs analysed in terms of location, historical background, legal, institutional, economic and social frameworks and/or stakeholder preferences. It is clear that this methodology can be used in a different way according to the stage of PPC process in which the reader is actually involved. Some processes that have already begun might build 8 Practical Handbook on previous decisions and might involve only selected stages/items from the present methodology that would best fit their individual needs. In order to use the present methodology, it is important to underline that the process (no matter which stage the PPC is in) is based on: • A thorough understanding of the cooperation or partnership, its qualities and constraints against the needs and preferences of a broader community • Involvement of stakeholders, individuals and entities, in a constructive way • Clear vision and sufficiently flexible strategy • Well–organised and coordinated action among all involved stakeholders • Focusing on quality throughout the process, and • Monitoring the achievements against measurable planned outcomes. c , : n ulture industry and tourism ew business opportunities In a volatile economic and business environment with an unpredictable future, planning and implementation of new entrepreneurial ideas is done under stress. Limited financial resources create even more tension and competitiveness among business ideas/opportunities identified by entrepreneurs. On the other hand, to ensure proper investment, ideas have to be competitive and provide detailed business plans with expected return on investment. In such business environments, precaution with investments demands clear and strong management of risks even if some uncertainties remain. Cultural heritage represents a strong asset not only for attracting people and increasing tourism services but also as a way to improve and strengthen sales of local and regional products. The UN World Tourism Organization is claiming that “the first eight months of the year 2013 saw a record of 747 million international tourist arrivals (overnight visitors) worldwide in absolute terms, some 38 millions more than in the same period of 2012, equivalent to a 5% increase.” Europe benefited the most, with 5% growth. “Given that Europe is the world’s largest destination region with many comparatively mature destinations, this is particularly encouraging.”1 South East Europe also has its share in such developments. Similar conclusions are set in the ITB World Travel Trends Report published by Messe Berlin:2 “In the medium term, the experts believed that important changes in travel demand and supply will emerge. One trend will be that consumers will seek new and more authentic experiences. More people would turn their backs on artificial ‘travel worlds’ and instead seek authentic holiday destinations and experiences with more interaction with local communities, for example.” This is bringing a much wider scope to the CMC – Clusters meet Culture project. There are numerous business opportunities in developing destinations bringing together industry, cultural heritage, creative production and tourism in the SEE region. By strengthening cooperation and partnership developments, the CMC survey showed that bringing together entrepreneurial spirit and initiatives boosts creativity and strengthens the tourism multiplier effect. Plenty of material and immaterial cultural heritage can be connected to existing industrials or handicrafts products, providing numerous opportunities for further development of a destination. 1) UN WTO World Tourism Barometer, Volume 11, October 2013, http://www.wtoelibrary.org/content/l8262h5q52514363/fulltext.pdf?page=1 2) IPK International, ITB WORLD TRAVEL TRENDS REPORT, Messe Berlin GmbH, December 2012, p. 18 9 Practical Handbook 10