Legal Framework for Concessions in Protected Areas

Workshop on Tourism PartnershipsTime Block 5

Paul F. J. EaglesMay 31, 2017

National Laws and Policies•  All contacts, leases, permits and

concessions are subject to national and park laws.

•  Head office should have at least one staff person with training in the legal aspects.

•  Each park should have at least one staff person with training in the legal aspects.

Concessions and partnerships policies•  Keep tourism in balance with conservation goals

outlined in the protected area management plan; •  Encourage sufficient volumes of tourism to ensure

financial viability;

•  Set limits for acceptable change associated with tourism;

•  Establish a framework to ensure that these limits are applied fairly and effectively; and,

•  Create institutional and financial structures to manage tourism revenues.

Characteristics of concession law, regulations and policies•  Concession contract terms, such as length of contract

operation.•  Process for obtaining concession proposals.•  Award process.•  Evaluation criteria.•  Protections for concessionaires.•  Control of concessionaire rates and charges for

services to visitors.•  Concession fees (to government or the protected area

authority).

Characteristics of concession law, regulations and policies•  How concession fee revenues are spent (i.e.

on conservation, maintenance etc.).•  Economic development.•  Preferences (e.g. for local or community

businesses).•  Assignments and transfers of rights.•  Suspension or termination procedures.•  Prosecution, breach, and penalties.

Tendering•  Subject to national and park laws.•  The process for negotiating a bid and selecting a

concessionaire (i.e. the tendering process) is usually long, complex, and expensive for all parties.

•  The high cost often creates an incentive for the protected area authority to use other approaches, such as long-term contracts, easy methods for contract renewal, or insourcing.

Contracts•  Contracts can be verbal, but this leaves important issues to later

interpretation in the case of dispute. •  It is more preferable for all contracts to be written to make

interpretation much easier and enhances the likelihood that disputes will be successfully resolved through mediation or legal action.

•  Contract law underpins all outsourcing activities in protected area tourism. It is important that the responsibilities of each partner are listed in sufficient detail in a contract. Having a clear idea of these responsibilities allows for the regular measurement of contract performance. Typically, there are financial and other penalties for non-compliance.

Contracts•  The contract includes a section outlining the

rules for cancellation of the contract in the case of major non-compliance with contract stipulations.

•  Ultimately all the contract stipulations, including those dealing with contract cancellation will be subject to interpretation by the court

Outcome of Contract Dispute

Transboundary Parks•  A unique situation that involves bilateral

negotiations is that of transboundary parks.

•  This situation requires negotiation and legal clarification concerns the rights on contractors to operate across national boundaries