Detailed Concept on the Law of Tourism
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DETAILED CONCEPT ON THE LAW OF TOURISM USAID GOVERNING FOR GROWTH (G4G) IN GEORGIA May 20, 2019 This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. DETAILED CONCEPT ON THE LAW OF TOURISM USAID GOVERNING FOR GROWTH (G4G) IN GEORGIA CONTRACT NUMBER: AID-114-C-14-00007 DELOITTE CONSULTING LLP USAID | GEORGIA USAID CONTRACTING OFFICER’S REPRESENTATIVE: PHILLIP GREENE AUTHOR(S): JOHN J. DOWNES LAW ON TOURISM, 1520 LANGUAGE: ENGLISH 20 MAY 2019 DISCLAIMER: This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States government. i DATA Reviewed By: Irakli Gelovani, Tamar Buadze, Nino Chokheli Project Component: GoG Capacity Strengthening Component Practice Area: Law on Tourism Key Words: Tourism, Tour Operator, Tour Guide ii ACRONYMS ABTA Association of British Travel Agents APE Accreditation for prior experience APL Accreditation for prior learning ART Applicable risk turnover ASEAN Association of South East Asian Nations BTA British Tourist Authority CERT Council of Education, Recruitment and Training (Ireland) CSIA Canadian Ski Instructors Alliance DA Driver’s Authorization (Australia) DEFRA Department for Environment, Food and Rural Affairs DMO Destination management organization EG Enterprise Georgia EIA Environmental impact assessment ENIT Ente Nazionale Italiano Turismo (Italy) EPA Economic Partnership Agreement EU European Union EZ Enterprise zone (England) FEZ Food enterprise zone (England) G4G Governing for Growth in Georgia GAG Georgian Association of Guides GATS General Agreement on Trade in Services GMGA Georgian Mountain Guides’ Association GNTA Georgian National Tourism Administration GNTO Greek National Tourism Organization HRD Human resources development IATA International Air Transport Association IHF Irish Hotels Federation IMS Information management system ISIA International Ski Instructors Association MICE Meetings, incentives, conferences, and exhibitions MTA Malta Tourism Authority NGO Nongovernmental organization NTA National Tourism Administration NTO National Tourism Organization OTA Online travel agent PPP Public-private partnership PPV Public passenger vehicle PTD Package Travel Directive RSA Regional Selective Assistance (Scotland) SADC Southern African Development Community SCBT Sustainable Community-Based Tourism SDI Scottish Development International SME Small and medium enterprises SMS Safety management system iii STGA Scottish Tourist Guides’ Association TDFP Tourism Development Financing Program (Virginia) TDZ Tourism development zone TIC Tourism Industry Council (England) TPSAC Tourism Private Sector Advisory Committee UNWTO World Tourism Organization USAID United States Agency for International Development VAT Value-added tax WFTGA World Federation of Tourist Guides’ Associations iv CONTENTS 1. EXECUTIVE SUMMARY ................................................................................................................... 6 2. FACILITATING GEORGIA’S TOURISM STRATEGY 2025 ............................................................. 7 3. CONCEPTUAL FRAMEWORK ....................................................................................................... 10 4. REGULATION OF TOURISM IN OTHER COUNTRIES ................................................................. 11 5. HARMONIZATION WITH EU LAW ON TOURISM-RELATED MATTERS .................................... 26 6. DEVELOPING A COMPREHENSIVE LEGAL FRAMEWORK FOR TOURISM DEVELOPMENT 28 7. A REGULATORY APPROACH ....................................................................................................... 37 8. REGULATING THE SECTOR ......................................................................................................... 47 9. RECOMMENDED LEGISLATION AND REGULATIONS ............................................................... 86 APPENDIX 1: DEFINITIONS .............................................................................................................. 129 v 1. EXECUTIVE SUMMARY The goal of this proposed new regulatory framework is to facilitate the realization of Georgia’s Tourism Strategy 2025. This was reviewed in the inception report and the implications are set out in Section 2 of this report. Section 3 of the report provides a conceptual framework. The importance of law in facilitating tourism development is discussed, and the harmonization of tourism law is considered. Tourism is an export, and involves transactions across national boundaries and could possibly involve conflicts of laws and jurisdictional issues. To address that, regional economic entities, such as the EU, have harmonized many aspects of travel and tourism law, and Georgia is committed to aligning with the EU in this sphere. Section 5 looks at how much alignment has already taken place and what needs to change as a result of recent EU legal developments. Harmonization is taking place not just regionally but also internationally, and Section 4 looks at how 17 countries worldwide regulate the tourism sector, as well as what does or does not work. The lessons for Georgia are identified—and have influenced—the recommendations in this report. Section 6 sets out areas to address in building a comprehensive framework. The importance of using accurate, consistent, and clear definitions of tourism entities, activities, and transactions based on international best practice, as well as the definitions’ importance for statistics, research, and tourism satellite accounting, is considered. The importance of a strong institutional framework is addressed, as is the relationship with the private sector. The report also addresses the need for positive compliance mechanisms, insurance, tax, and incentives. Section 7 looks at the various legal mechanisms that can be used to regulate business and their practical application to the tourism sector. A coherent approach to regulations is posited together with the justification for regulating in the sector. Section 8 considers the regulatory framework for the different parts of the sector based on best practice from elsewhere adapted to Georgian needs. Section 9 sets out detailed recommendations for new tourism law and regulations. 6 2. FACILITATING GEORGIA’S TOURISM STRATEGY 2025 SUMMARY OF THE STRATEGY This section sets out a 10-year vision and strategic plan for “growing the value and importance of tourism to the country’s national economy and its people.” The Strategy emphasizes the importance of partnership between the public, private, and nongovernmental organization (NGO) sectors. Goals of the strategy include the following: - Maximize tourist satisfaction. - Diversify markets and products. - Sustainably increase the size and profitability of the industry. - Maximize opportunities for job creation. The Government of Georgia will place a higher emphasis on increasing the contribution of tourism to the country’s economy. The quality of service needs improvement. One of the goals of the strategy is to plan for transforming the country’s unique mix of natural and cultural assets into world-class tourism destinations. Developing a diversified and high-quality tourism product will create an opportunity to increase visitor spending. The vision: By 2025, Georgia will be well known as a premier, year-round, high-quality tourism destination, centered on its unique cultural and natural heritage, world-class customer service, and timeless tradition of hospitality. Guiding principles: - Be private sector-driven: Tourism development should be market-driven and industry-led, in partnership with government and civil society. - Prioritize markets. - Maintain a whole-government approach: Involve all parts of government, at the local and national levels. - Focus on sustainability. - Extend Georgia’s culture of hospitality. Among the strategic objectives are to: - Enhance competitiveness, through the delivery of world-class visitor services. - Expand and enhance Georgia’s ability to collect and analyze tourism data, and measure industry performance. - Enhance the business environment, to facilitate. - Increased foreign and domestic investment. Priority actions: - Develop a quality, safety, and sustainability standards/certification program for the tourism sector and cultural assets. 7 - Support the industry’s transition to digital reservations and payment systems. - Facilitate the introduction of legal provisions to promote concessions and other forms of economic cooperation between public entities and private businesses at natural and cultural heritage sites and on publicly owned land. - Update the tourism legislative package. - Establish a Ministry-level Tourism Strategy Implementation Working Group to ensure effective planning, policies, and investment in strategic priorities. - Strengthen private sector tourism associations. Implications for the legal framework for tourism in Georgia and its implementation: Facilitate partnerships between the public, private, and NGO sectors. Support quality control and quality assurance systems. Provide government mechanisms to support tourism development.