Tourist Territorial Administration in Portugal: Case Study: Vilamoura XXI

1. Tourist Territorial Administration inPortugal:Case Study: Vilamoura XXI 19th IFTTA Coference (International Forum of Travel and Tourism Advocates) Tavira,Portugal,13.10.07 Ms.Virgílio Miguel Machado Universidade do Algarve

2. . LOCATION Virgílio Machado,2007

3. Tourist Resort VILAMOURA TOURIST RESORT 5 Golf Courses 7000 Houses 120 Stores 1000 Mooring Places at the Marina Horse Riding Centre Tennis Centre Golf Academy Luxury Hotels . 35.000 beds 350.000 Tourists a year 6000 Inhabitants area of 1650 ha Beaches3 km long 75 Bars and Restaurants Fonte (Silva,2004) Virgílio Machado,2007

4. VILAMOURA-A BRIEF HISTORY Beginning 20th Century- QUINTA DA QUARTEIRA- Family Santos Silva, Agriculture. 1929- Sold to Júdice Fialho family, Factories of Fish Preserves and Export. 1965- Sold to Lusotur, Financial Society of Tourism, Plc. – A tourist enterprise financed by American capital and Banco Português do Atlântico. Vilamoura 1st Stage - 1965-1995- The role of Cupertino de Miranda (Marina, Casino, Luxury Hotels, Golf). A branded image of “quality tourism” in Portugal. Vilamoura 2nd Stage-1995- 21st Century- Lusotur, Plc.- Investment for a 10 year period, superior to 50 million Euros. Vilamoura – An example of how the ownership of the land and property rights are a key-concept to understand the distribution of the income from the tourist activity (Lewis,Williams,1998) . Virgílio Machado,2007

5. VILAMOURA - A TOURISTTERRITORY • Tourist Planning and Regulation – Political activity; the plans for the regulation of the territory balance and line up public and private interests from the tourism activity, both in the short and long term; regulation plans require the local government’s approval in order to be implemented (Gunn,1988, Smith,1992). • Tourist Territory – Organization based on a formal consensus (recognised by a power structure in a given society) to stimulate and guarantee transactions between that organisation and tourism in a given geographical area. • Vilamoura 2nd Stage - Consensus reached by: • Conjoined Dispatch from the Planning and Territory Administration Ministry, the Commerce and Tourism Ministry, the Agriculture Ministry and the Environment and Natural Resources Ministry (4 Ministries) issued on September 27, 1995. It recognises the public interest of the tourist resort. • Protocol dated May 20, 1999 between local structures of the Government (Commission for the Coordination of the Region of The Algarve, Regional Department of the Environment – Algarve), national structures (Tourism Department), Loulé’s City Hall and Lusotur, S.A.; • c) Government’s resolution dated June 11, 1999, which was approved by Loulé’s City Hall and prepared by Lusotur,Plc., ratifying the Urbanization Plan of Vilamoura, 2nd Stage, (Séves,2003). . Virgílio Machado,2007

6. VILAMOURA-AN “EFFICIENT” TOURIST TERRITORY (I). Structure of the Tourist Territory Power Connections Contract Property Rights Tourist Territory - Organization based on a win-win philosophy, rejecting the zero sum conception of power (Moisset,1999,Henderson,2002). Property rights- set of institutional rights (public and private) between agents that can access,own, use and transfer resources (for example land, buildings, capitals, knowledge) in a context of relatively autonomous connections of power (Alexander,2002). . Tourist Territory Virgílio Machado,2007

7. VILAMOURA-AN “EFFICIENT” TOURIST TERRITORY (II). PROPERTY RIGHTS’ EFFICIENCY INDICATORS Quality of Title- Ability, certainty, security in the creationand features of the definition of the right; existence of a power capable of guaranteeing the coercion and execution of that given right (for example the declaration of public interest given to a private tourist resort; predominance of the urbanization plan over all the changes related to the occupancy, use or transformation of the land). Exclusivity - Certainty, assurance that a third party will not disturb the claim and exercise of a right. Guarantee given to the owner of the unit over the profits and correspondent costs of its possession, usage and transferability. (For example : licensing given by the City Hall of Loulé for construction works predicted in the Plan; promotion of the execution, financing and other investments anticipated by Lusotur,Plc.). Duration – Temporal feature of the Law. The permanence, extension and requirements for its renewal, which will guarantee stability (for example 10 years for the execution of the plan of works and investments to be made by Lusotur,Plc.; legal temporal limits to the change of the town planning). . Virgílio Machado,2007

8. VILAMOURA-AN “EFFICIENT” TOURIST TERRITORY (III). PROPERTY RIGHTS’ EFFICIENCY INDICATORS Flexibility – Internal ability of the right management that consists in the regulation of its usage patterns, aiming for the transformation and introduction of improvements in the capacity of adaptation to external elements (for example: changes in the content of Vilamoura’s town planning; ability to substitute a contract to invest for a monetary compensation by the private party). Transferability – Commerciality of the right, simplicity or low cost in the transfer in behalf of another party (for example: share transfer of a public limited company (Lusotur, Plc.); delegation of public tasks in a tourist grantee). Divisibility – Change or usage of a good or resource, without adulteration of its nature, through its spatial or temporal division, maintaining the possibility of creating conjoined ownership over the rights of that good (for example: timesharing; delimitation ofcompetence, intervention costs of the several public organisms over the same investment). . Virgílio Machado,2007

9. Agent A Transferability Flexibility Divisibility Tourist Territory Duration Exclusivity Quality of Title Agent B POWER CONNECTIONS IN TOURIST TERRITORIES . Virgílio Machado,2007

10. EFFICIENCY INDICATORS PROPERTY RIGHTS/CONTRACTS CASE STUDY: VILAMOURA

11. TOURIST TERRITORIAL ADMINISTRATION IN PORTUGAL: CASE STUDY - VILAMOURA CONCLUSIONS (I) • A TOURIST TERRITORY IS BASED ON CONTRACTS AND CONSENSUS, WHICH ARE THE MAIN FORMS OF CONNECTION BETWEEN ECONOMICAL AGENTS. IT AIMS FOR A LOCAL PROJECT, WHICH FOCUSES ON THE ATTAINMENT OF PROPERTY RIGHTS BETWEEN THE AGENTS INVOLVED ; • CONTRACTS AND PROPERTY RIGHTS ARE PERMEABLE TO CONNECTIONS OF POWER. THEREFORE THE SCIENTIFIC INVESTIGATION SHOULD FOCUS ON POLITICS, THAT IS, ON WHO GETS WHAT, WHERE, HOW AND WHY; • C) THE TOURIST TERRITORY MUST BE FACED AS AN ORGANISATION THAT BRINGS ABOUT AND PRODUCES EFFICIENCY IN THE INTERACTIONS BETWEEN THE ECONOMIC AGENTS, NAMELY THROUGH THE PURSUIT OF CONVERGENCE AND CONNECTIONS OF POWER, WHICH WILL MAXIMISE THE NETT INCOME OF THE TRANSACTIONS MADE;

12. TOURIST TERRITORIAL ADMINISTRATION IN PORTUGAL: CASE STUDY - VILAMOURA CONCLUSIONS (II) D)THE POSITIVE CONNECTIONS BETWEEN THE AGENTS IN TOURIST TERRITORIES ARE POSSIBLE IN A WIN-WIN PHILOSOPHY BECAUSE THERE ARE GUARANTEES OF CREDIT OR TRANSACTION WITH A THIRD PARTY OVER THE VALUE OF THE RIGHTS (OBTAINED BY THE TRANSFORMATION OF THE USE OF THE LAND INTENDED FOR TOURIST, RESIDENCIAL OR COMMERCIAL ACTIVITY); E) LUSOTUR,plc. AND THE CITY HALL OF LOULÉ ARE THE AGENTS THAT OBTAIN MORE PROPERTY RIGHTS IN EXCHANGE FOR THE CONNECTIONS OF POWER; THE GOVERNMENTAL DEPARTMENTS OF AGRICULTURE AND TOURISM ARE THE WEAKEST LINKS; A POSSIBLE EXPLANATION IS THE ABSENCE OF INTERVENTION FROM THE LOCAL STRUCTURES OF POWER OFTHE TOURISMDEPARTMENT; F) THE HIGH VALUES OF EXCLUSIVITY AND DIVISIBILITY IN THE EFFICIENCY OF PROPERTY RIGHTS IN VILAMOURA CAN BE EXPLAINED BY THE CREATION OF “IPPs”, i.e., DETAILED LICENSE URBANIZATION PLANS, WHICH WILL DIVIDE THE USAGE OF THE LAND INTO RESIDENCIAL, COMMERCIAL OR TOURIST PURPOSES. THIS ALLOWS CONVERGENCE BETWEEN THE CITY HALL OF LOULÉ, THE GOVERNMENTAL PLANNING DEPARTMENT AND LUSOTUR,PLC.; THEREFORE THE PUBLIC SECTOR GETSINCOME (SUCH AS PATRIMONY AND TAXES) FROM THE RECEPTION OF INFRASTRUCTURES, BUILDINGS AND EQUIPMENT.

13. BIBLIOGRAPHY Alexander, E. R. (2002), “Planning Rights: Toward Normative Criteria for Evaluating Plans”, vol.7, nº 3, pp-191-212, International Planning Studies Gunn, C.A. (1988), Tourism planning, 2ª ed., Nova Iorque, Taylor and Francis. Henderson, J. (2002), “Globalization of the ground: Global production networks, competition, regulation and economic development”, Centre of Regulationand Competition, acessível em <http: \\www.competition-regulation.org.uk/ publications/working.papers /wp38.pdf> 20-09-2006. Moisset, M.P. (1999), “O papel das parcerias na elaboração de projectos turísticos. A experiência francesa”, Lisboa, Ciclo de Debates de 21 de Maio de 99, Livro das Actasdo Instituto de Financiamento e Apoio ao Turismo - Património e Turismo, pp.109-117. Séves, A.L. (2003), “A admissibilidade de propostas de planos de pormenor apresentadas por particulares”, nº 20, pp.143-157, Revista Jurídica doUrbanismo e Ambiente. Silva,A.H. (2004), Seminário Algarve-Inovação e Diversificação de Mercados Emissores,Case Study: Lusotur,S.A”, Seminário na Comissão de Coordenação e Desenvolvimento da Região doAlgarve em 20 de Maio de 2004, acessível em google: vilamoura XXI>Microsoft Power Point-Seminário.10.05.04 > 20.09.2007. Smith,R.A.(1992), “ Beach Resort Evolution:Implications for Planning”, vol.19, pp. 304-322, Annals ofTourism Research. Lewis,J. Williams, A.M. (1998), “Portugal: market segmentation and economic development”, Tourism Economic Development, 3ª edição, Chichester, Wiley, pp.125-150 (obra colectiva).

14. PRESENTATION VIRGÍLIO MIGUEL RODRIGUES MACHADO Master of Business Administration and Tourist Development Lawyer/Consultant Urbanism/Tourism Assistant Professor at ESGHT/Universidade do Algarve Contacts: Avª 25 de Abril, Lote 12.r/c/dtº 8500-511 PORTIMÃO e-mail: virmac@sapo.pt Phone/fax: 282 423209 Mobile:919195581