Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
PPP model in Green Passport Campaign: Destination Bhutan
1. Road map for PPP model in Green Passport campaign: Destination Bhutan
A Case study based on DMAIC methodology
1. Define: Can Bhutanbe an ideal PPPmodel inGreenPassportconcept
Green Passport:One of UNEP's TourismProgramme strategicfocus isto"encourage demand
for sustainable tourismproductsandservices".
Global scenario:Travel & TourismgeneratedUS$7.6 trillion(10% of global GDP) and 277
millionjobs(1in11 jobs) tothe global economyin2014 – 9.8% of total worldGDP.
https://www.wttc.org/-
/media/files/reports/economic%20impact%20research/regional%202015/world2015.pdf
Why Bhutan: Bhutan’stourismindustry continuedtogrow in2013 witha +10.25% increase over
the previous year contributing significantly to GDP receipts.
Bhutan Government Debt to GDPratio
Last Previous Highest Lowest Unit Reference Frequency
Japan 230.00 224.20 230.00 50.60 percent Dec/14 Yearly [+]
Greece 177.10 175.00 177.10 22.60 percent Dec/14 Yearly [+]
Lebanon 134.41 133.36 185.19 130.80 percent Dec/14 Yearly [+]
Jamaica 132.72 135.50 135.50 87.31 percent Dec/14 Yearly [+]
Italy 132.30 128.50 132.30 90.50 percent Dec/14 Yearly [+]
Portugal 130.20 129.70 130.20 48.50 percent Dec/14 Yearly [+]
Cape Verde 114.22 101.63 114.22 54.28 percent Dec/14 Yearly [+]
2. Last Previous Highest Lowest Unit Reference Frequency
Ireland 109.70 123.20 123.20 24.80 percent Dec/14 Yearly [+]
Cyprus 107.50 102.20 107.50 48.90 percent Dec/14 Yearly [+]
Belgium 106.50 104.40 133.10 74.10 percent Dec/14 Yearly [+]
United States 102.98 101.17 121.70 31.70 percent Dec/14 Yearly [+]
Bhutan 101.30 98.40 101.30 36.90 percent Dec/14 Yearly [+]
Singapore 99.30 103.20 106.20 66.90 percent Dec/14 Yearly [+]
Spain 97.70 92.10 97.70 16.60 percent Dec/14 Yearly [+]
Why Bhutan with Green Passport Concept: 84.5% of total area of the country is covered by
Forest area (% of land area). Could be ideal destination for Green Passport concept. In 1992
forest area was 65% (Chart below)
Growth in forest area from 1992 to 2012
3. Bhutan Scenario at a Glance: Tourism Contribution
2. Measure:
Qualitative measurement toolsof all desiredvariables asperinternationalstandards
3. Analyze:Scope for Private sector:
Negligiblepresence of private inhotel,F&Bfield.
Up to 74% ForeignInvestor’sEquitypermissibleTourismPolicy
Benchmarkfor hotel tariffs/chargesalreadyexists
Scope for Financial Reforms
Scope for CapacityBuilding
4. Improve:Governmenttolookfor scope of improvementfor
Single window clearance
Pointto pointquantitativeperiodicreview of progress
Crystallize PPPlaw
Decentralization
Tax and Incentives,
InstitutionalFramework
Legal and RegulatoryFramework
5. Control: Carryingcapacity of travelers/capping
Year Target revenue Achievement
2010 90 M(USD) 89.69 M (USD)
2011 160 M(USD) 152 M(USD)
2012 215 M(USD) 227 M(USD)