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Culture and Tourism Regional Case Study PUGLIA (Italy)

Work Package 9

Ex post evaluation of Cohesion Policy programmes

2007-2013, focusing on the European Regional Development Fund (ERDF) and the Cohesion Fund (CF)

October 2015 Authors: Flavia Pesce and Davide Barbieri

Ex post evaluation of Cohesion Policy programmes 2007-2013, focusing on the European Regional Development Fund (ERDF) and Cohesion Fund (CF) Work Package nine: Culture and Tourism

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EUROPEAN COMMISSION

Directorate-General for Regional and Urban Policy Directorate B - Policy Unit B.2 Evaluation and European Semester

Contact: Violeta Piculescu

E-mail: [email protected]

European Commission B-1049 Brussels


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Ex post evaluation of Cohesion Policy programmes

2007-2013, focusing on the European Regional

Development Fund (ERDF) and the Cohesion Fund (CF)

Work Package 9: Culture and Tourism - Case Study Puglia Region (Italy)

Contract: 2014CE16BAT034


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Work Package 9: Culture and Tourism

Case Study; Puglia Region, Italy This report is the main part of the regional case study for the Puglia region of Italy carried out as part of the ex post evaluation of Cohesion Policy programmes 2007-2013, focusing on the European Regional Development Fund (ERDF) and the Cohesion Fund (CF).

Authors: Flavia Pesce and Davide Barbieri(IRS).

Date: 15th October 2015

LEGAL NOTICE

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Table of contents

FORWARD............................................................................................ 7

EXECUTIVE SUMMARY.......................................................................... 9

1 THE REGIONAL CONTEXT ............................................................. 11

1.1 The geo-institutional context in the region..........................................................11

1.2 Socio-economic development and trends for the tourism and culture sectors...........11

2 THE REGIONAL ERDF 2007-2013 STRATEGY IN THE CULTURE AND TOURISM SECTORS ............................................................................ 15

2.1 Rationale and objectives of the regional strategy in the tourism and culture sectors .15

2.2 The main elements of the ERDF interventions in the tourism and culture sectors......19

2.3 Governance and supportive features of the ERDF strategy in the tourism and culture sectors: main actors, process phases and procedures.....................................................25

3 EFFECTIVENESS AND SUSTAINABILITY OF THE STRATEGY: OUTPUTS AND RESULTS..................................................................... 35

3.1 Measuring achievements: the monitoring and evaluation system in place................35

3.2 Outputs achieved ...........................................................................................36

3.3 Results achieved ............................................................................................40

4 CONCLUSIONS AND LESSONS LEARNED ....................................... 47

REFERENCES ...................................................................................... 49

APPENDIX.......................................................................................... 51

ANNEX 1: ADDITIONAL INFORMATION TO THE MAIN REPORT .......... 52

ANNEX 2: STATISTICAL DATA............................................................ 64


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List of abbreviations AFC Apulia Film Commission

AIR Annual Implementation Report

CETS European Chart for Sustainable Tourism

CF Cohesion Fund

DG REGIO Directorate General for Regional and Urban Policy

EC European Commission

ECSs Environmental and Cultural System(s)

ERDF European Regional Development Fund

EU European Union

FAS Underused Areas Fund

GAL Local Action Group

GDP Gross Domestic Product

H&R Hotels and Restaurants

ICTs Information and Communication Technologies

ISTAT National Statistics Office

LTSs Local Touristic System(s)

MA Managing Authority

MGL Multi-Level Governance

MIBACT Ministry for the Heritage, Cultural Activities and Tourism

OP Operational Programme

PAC National Cohesion Plan

PAIn Interregional Implementation Programme for the South

PISs Sectoral Integrated Programme(s)

PITs Integrated Territorial Programme(s)

POIn Interregional Operative Programme

PTSs Product Touristic System(s)

RL Regional Law

ROP Regional Operational Programme

RTP Regional Touristic Promotion Agency

TPAs Tourism Promotion Agenc(ies)

TPAs Touristic Promotion Agency(ies)

TTSs Territorial Tourism System(s)


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Forward

The European Commission, Directorate-General for Regional and Urban Policy (DG REGIO) is undertaking an ex post evaluation of Cohesion Policy programmes financed by the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) during the period 2007-2013 in regions covered by the Convergence, Regional Competitiveness & Employment and European Territorial Cooperation objectives in 28 member states. Within this framework, the Consortium IRS-CSIL-CISET-BOP has been selected to undertake the ex post evaluation on Culture and Tourism (Work Package 9). An important element within the exercise is a series of case study analyses of NUTS2 regions covering interventions co-financed by ERDF during the 2007-13 programming period. This report provides the results of a detailed case study of the use of ERDF in culture and tourism policy pursued in the Puglia region of Italy during the 2007-13 programming period. The Puglia ERDF regional operational programme (ROP) represents an interesting regional case study given the scale of ERDF investment in tourism, culture and creativity in recent years both from a governance perspective and given the importance of the tourism and cultural strategy for the region. The core of Puglia integrated strategy consists in a series of actions focused on the development of local systems designed to diversify the tourist offer and improve regional attractiveness through the integration of tourism, natural and cultural resources. From the cultural point of view, the Puglia strategy was based on an integrated policy supporting both the production chains of the creative industries as well as the industries themselves. In addition, the strategy sought to engage several institutional actors which are involved within the sector. The strategy sought to create added value by integrating the two elements and by stimulating innovative actions (for example in the creative industries). The case study analysis has been based upon the following:

desk-based analysis of relevant statistical and socio-economic data sourced from Eurostat, the Italian National Statistics Office (ISTAT) and Puglias Regional Observatory on Tourism;

desk-based analysis of documents relating to the programming period and covering items such as Operational Programme (OP) materials, Annual Implementation Reports (AIRs) and various other regional reports and documents;

a programmes of semi-structured interviews with thirteen interviewees. These include senior members of the Managing Authority (MA), local authorities, evaluators, policy makers, and experts implementing specific projects (Table A1 in the Appendix sets out the names and contact details of the interviewees). The interviewees were chosen on the basis of a snowball methodology starting with the President of the Public Investment Regional Evaluation Unit Puglia Region, combined with a desk-based analysis of the key documents. The purpose of this approach was to identify individuals who have played key roles in the programme and/or who have deep institutional knowledge of the programme processes and strategies.


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Executive summary

The ERDF Operation Programme for Puglia Region through its dedicated Axis (Axis IV) specifically addressing the Enhancement of natural and cultural resources for attraction and development and two Lines of Activity within Axis VI (Competitiveness of productive systems and employment), allocated Euro 451 million for operations in the fields of tourism and culture. This comprises about 10.7% of the total value of the programme. The heart of Puglias strategy on tourism and culture is based on the strengthening of regional competitiveness through the closer coordination (valorisation) of the different components of regional and local attractiveness, together with the setting up of specific new participative models of governance in the two sectors. The underlying rationale of the ERDF strategy for culture and tourism comprises the following specific aspects. For culture, the rationale is based upon addressing the market failures which typically characterize the production and consumption of cultural goods; enhancing the attractiveness of places; promoting culture as a place-branding and tourism attractor; strengthening the positive socio-economic effects associated with cultural goods and activities; and stimulating the role of culture in generating employment and building competitive advantage. For tourism, the rationale is based upon reducing seasonality via tourism promotion; promoting a more equal distribution of tourism development and destination competitiveness by stimulating a more widespread growth of tourism including in less popular areas and the marketing/promotion of less developed tourism products; and stimulating and supporting employment and sustainable economic growth. The Puglia Region government is the ERDF ROP Managing Authority (MA). To implement specific interventions relating to the various different ROP Axes, a series of Intermediate Bodies were established. Of these, Puglia Sviluppo SpA is the company house in the Puglia region that acts as an Intermediate Body for the management of business incentives, including those most relevant to this study delivered through Axis VI with regard to Lines of Action 6.1.9 and 6.1.10. The monitoring system in place in the region reports only on limited aspects of the achievements of the OP and is focused on implementation indicators (e.g. number of projects, expenditure). It is structured at the Axis level and provides partial evidence at the Lines of Activity level and also for certain specific typologies of interventions. According to the latest available data, Axis IV has had a good level of implementation to date. Many achievements have already comfortably exceeded their original ROP targets. The number of financed projects at December 2014 exceeded the overall target and Line of Activity 4.2 (Protection, enhancement and management of the cultural heritage) had already exceeded its target in terms of projects completed as early as 2013. Axis IV had a total financial allocation of Euro 352 Million. The certified expenditure at December 2014 reached over Euro 320 Million, representing the 80.3% of the total. As for Axis VI, a total of 244 firms were allowed to receive grants under Line of Activity 6.1.9 and 11 integrated programmes were financed under Line of Activity 6.1.10 (involving 32 firms). In the case of Axis VI, the level of certified expenditure at the end of 2013 was not as positive as for Axis IV. The shortfall was particularly large for Line of Activity 6.1.10. This Line of Activity targets assistance at consortiums of firms rather than at individual firms. However, it should be noted that the expenditure rate for this Line has accelerated during the last year.


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1 The regional context

1.1 The geo-institutional context in the region Puglia is one of the EUs Convergence Objective Italian Regions, situated in the south-eastern part of Italy in the so called Mezzogiorno area1. Its southern portion is known as Salento, a peninsula which forms the high heel on the boot of Italy. The region comprises 19,345 km (7,469 square miles), and it is bordered by the other Italian regions of Molise to the north, Campania to the west, and Basilicata to the southwest. Bordering the Adriatic Sea in the east, the Ionian Sea to the southeast, and the Strait of Otranto and Gulf of Taranto in the south. It neighbours Greece and Albania, across the Ionian and Adriatic Seas respectively. This strategic position, combined with over 800 kilometers of coastline, has shaped the regions history and development, and has influenced its strategy on culture and tourism. A wide variety of cultural resources exist in the region. These include museums and art galleries, libraries, a circuit of castles and fortifications (coastal towers, palaces and grand residences; churches, and various Cities of Art, numerous archaeological sites and parks (e.g. Lucera and Egnazia) and three UNESCO World Heritage Sites: Frederick of Hohenstaufens Castel del Monte, the famous courtyard houses called Trulli of Alberobello, and the Sanctuary of Monte SantAngelo. Puglia also already hosts many different events which are designed to enhance the historical and cultural traditions of the region. These include the Carnival at Putignano, the Daunia Carnival, the Night of the Taranta.. Puglia is one of the 20 Administrative Regions of Italy which, together with the municipal and provincial/metropolitan government bodies, constitute the administrative infrastructure of the nation. The capital of the region is Bari, which is also one of the nine Metropolitan Areas designated by the national government2. 1.2 Socio-economic development and trends for the tourism and culture

sectors Being part of the Mezzogiorno, Puglia shares with other southern Italy regions similarities which are not only geographical in nature, but also in terms of their social and economic structures. The regions comprising the Mezzogiorno all lag behind the northern Italian regions in terms of their socio-economic development, despite having sometimes registered faster catch-up periods from time to time across the years. As Table 1.1 below shows, Puglia has a population of more than four million inhabitants. The level of educational achievement measured as percentage in tertiary education, even though it increased in the period 2007-2013, is still below the Italian and the European averages (by respectively 3.1 and 15.3 percentage points). Between 2007 (just before the financial crisis) and 2013 there was a large increase in the unemployment rate (of some 8.6 percentage points). The regions employment rate remains below 50%, lower than both the Italian and the EU averages, but with a decrease (-4.4%) between 2007 and 2013 showing that the economic crisis hit hard in 1 The Mezzogiorno includes the following Italian regions: Abruzzo, Puglia, Basilicata, Campania, Calabria, Molise, Sicily and Sardegna. 2 Named after government undersecretary Graziano Del Rio, a recent reform (law 56/2014) has abolished the Provinces and established new Metropolitan Areas. Bari became a Metropolitan Area in December 2014.


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the region. Puglia is also characterised by lower GDP per capita values than the Italian and EU averages. Table 1.1. A general overview of the social and economic conditions of the region3

Puglia Italy EU

2007 2013

2007-2013 (% or pp )

2007 2013

2007-2013 (% or pp )

2007 2013

2007-2013 (% or

pp)

Total population (million) 4.03 4.1 0.5 % 58.2 59.7 2.5% 498.4 507.2 1.8%Population education level (% of tertiary educated Level 5-6) 11.2 13.2 2.0 pp 13.6 16.3 2.7 pp 23.5 28.5 5.0 ppGDP per inhabitant (PPS, Index Number EU=100)* 69 67 -2 pp 104 102 -2 pp 100 100 0 pp

Total employment rate (15-64) (%) 46.7 42.3 -4.4 pp 58.7 55.6 -3.1 pp 65.2 64 -1.2 ppTotal unemployment rate (15 and over) (%) 11.2 19.8 8.6 pp 6.1 12.2 6.1 pp 7.2 10.8 3.6 ppPeople at risk of poverty or social exclusion (%) 41.0 43.3 2.3 pp 26.0 28.4 2.4 pp 24.4 24.5 0.1 ppNEET (not in employment, education or training) rate 15-24 (%) 23.5 28.2 4.7 pp 16.1 22.2 6.1 pp 10.9 13.0 2.1ppSource: Eurostat (Regional Statistics). Note: Variations ( 2007-2013) are expressed in percentage variation between two years (%) when figures are expressed in values (as for total population), and in pp (percentage points) when they are referred to indicators already expressed in % (i.e. total employment rate). Despite these adverse socio-economic characteristics, Puglia is considered the most dynamic region in Southern Italy. It has also recently exhibited a positive interaction between its traditional historical productive sectors and modern innovation and technology. As a result, it has attained a reasonable level of expertise and development in many of its key economic sectors. In recent years there has been a transition from an economy based predominantly on the primary sector to an economy which includes (some) big manufacturing activities, a significant number of SMEs, and a lively tertiary sector which supports the local economy. Both the culture and tourism sectors have been an integral part of this process representing an important asset for regional economic growth through the exploitation of the cultural heritage, events and creativity4. Tables 1.2A and 1.2B below provide a general statistical overview for the tourism and culture sectors5. It should be noted that as part of the Interim Report analysis, a cluster analysis was undertaken of all EU regions. Puglia was revealed to be a member of cluster 46 which comprises (mainly Mediterranean) regions for which the tourism sector is very important. In these regions, the incidence of tourism employment is higher than the EU27 average (6.2% vs 4.4%). The number of establishments per 1,000 inhabitants in the tourism sector is also higher (2.7 vs 1.0). These regions also have a lower percentage of nights spent by non-residents than the EU27 average (35% vs 44%). Table 1.2A shows that Puglia is very much a core member of cluster 4 in terms of its

3 The same table with data disaggregated by sex is included in the Appendix. 4 See Montalbano P., Palumbo F., and Valentino P.A (2014), Culture and creativity as drivers for local sustainable economic development, Project Wealth Local Sustainable Economic Development Research Group Working Papers, ENPI CBC Mediterranean Sea Basin, online paper. 5 More specific data are provided in the Statistical Annex. 6 See on this, Culture and Tourism Work Package 9, Interim Report, June 2015.


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main features. The share of tourism in regional economy (measured in terms of GDP) increased nearly 5 percentage points during the period 2007-2013, while for both Italy and EU the change in the same period was equal to zero. This increase was also accompanied by an increase of the percentage of workers employed in the tourism sector (+1.3%) and in the numbers of business local units in tourism (+0.7%). In all cases Puglia achieved a better performance than both Italy and the wider EU. In recent years Puglia has acquired an important position as a tourist destination not only for classical domestic tourist inflows, but also for international tourists. Between 2007 and 2013 an increase of 17.8 percentage points in the total numbers of tourists staying (in terms of arrivals at tourist accommodation facilities) per 1,000 inhabitants was registered. The figure is more than triple of the value registered for Italy as a whole (5.4 p.p.), and it is even above to the EU-28 average for the same period (14.7 p.p.). In terms of total numbers of nights spent in tourist accommodation (presences) per 1,000 inhabitants, the registered increase reached 16.9 p.p. by 2013 (with respect to 2007). By comparison, Italys figure was -0.9 p.p., and Puglia again exceeded the overall EU-28 growth rate of 10.6 p.p. Most notably, the international component in terms of arrivals increased by 45.6%, and in terms of presences in tourism establishments (nights spent) the increase was even higher, reaching 52.8%. As a consequence, the net occupancy rate of bed-places also increased in the 2007-2013 period by 0.5 p.p. in comparison to negative values for both Italy and EU. Turning to the culture sector where data are much more limited, the picture which emerges is that of a slower development than in the tourism sector. The number of workers employed in the culture sector increased by only 0.1 percentage points between 2007 and 2013, while the number of local business units in the culture sector experienced a decrease of 0.1 percentage points. However, it should be noted that this situation is quite similar to both the one for Italy as a whole and for the wider EU.


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Table 1.2A. A general overview of the tourism sector

Puglia Italy EU

2007 2013

2007-2013 (%

or pp) 2007 2013

2007-2013 (%

or pp) 2007 2013

2007-2013 (%

or pp)

The share of tourism in the regional economy (measured in terms of GDP) (%)* 3.4 8.3 4.9 pp 4.2 4.2 0.0 pp 3.2 3.2 0.0 pp

Percentage of workers employed in the tourism sector (%)** 4.3 5.6 1.3 pp 5 5.6 0.6 pp 4.2 4.5 0.3 pp

Local business units in tourism (as proportion of total local units) (%)*** 7.6 8.3 0.7 pp 7.9 8.4 0.5 pp 8.5 8.4 -0.1 pp

Total arrivals at tourist accommodation establishments per 1,000 inhabitants 668 787 17.8% 1,651 1,740 5.4% 1,507 1,729 14.7 %

Total nights spent by residents and non residents per 1,000 inhabitants 2,821 3,298 16.9% 6,370 6,313 -0.9% 4,707 5,208 10.6 %

Net occupancy rate of bed places**** 33.3 33.8 0.5 pp 40.9 40.5 -0.4 pp 42 41.3 -0.7 pp

ADDITIONAL INDICATORS FOR PUGLIA

Arrivals at tourist accommodation establishments (total) (million) 2.7 3.2 18.3% 96.2 103.9 8.0% 751.3 876.9 16.7%

Arrivals at tourist accommodation establishments (non-residents) (million) 0.4 0.6 45.6% 42.9 50.3 17.2% 257.7 323.2 25.4%

Nights spent at tourist accommodation establishments (total) (million) 11.5 13.4 16.4% 376.6 376.8 0.04% 2,352.0 2,641.5 12.3%

Nights spent at tourist accommodation establishments (non-residents) (million) 1.6 2.4 52.8% 163.5 184.8 13.0% 1,007.8 1,192.1 18.3%

Source: Eurostat, Regional Statistics. * IPRES - Istituto Pugliese di Ricerche Economiche e Sociali. For Italy and EU-28: Gross value added (at base year prices), % of all NACE Activities of I-Accommodation and food service activities, and N79 - Travel agencies, tour operator reservation services and related activities. ** 2008 instead of 2007. *** 2008 instead of 2007; 2012 instead of 2013. For tourism we have included: I-Accommodation and food service activities, and N79 - Travel agencies, tour operator reservation services and related activities. **** 2012 instead of 2007. Note: Variations ( 2007-2013) are expressed in percentage variation between two years (%) when figures are expressed in values (as for total population), and in pp (percentage points) when they are referred to indicators already expressed in % (i.e. total employment rate). Table 1.2B. A general overview of the culture sector

Puglia Italy EU

2007 2013

2007-2013 (%

or pp) 2007 2013

2007-2013 (%

or pp) 2007 2013

2007-2013 (%

or pp) The share of culture in the regional economy (measured in terms of GDP) (%)* n.a. n.a. n.a. 2.0 2.1 0.1 pp 2.6 2.6 0 pp Workers employed in the culture sector (%)** 0.9 1 0.1 pp 1.5 1.7 0.2 pp 2.3 2.3 0 pp Local business units in culture (as proportion of total local units) (%)*** 1.8 1.7 -0.1 pp 1.7 1.6 -0.1 pp 2.0 2.0 -0.1 pp Source: Eurostat, Regional Statistics. * For Italy and EU-28: Gross value added (at base year prices), % of all NACE Activities of 59 - Motion pictures, video and television programme production, sound recording and music publishing activities; 60 - Programming and broadcasting activities; 90 - Creative, arts and entertainment activities; 91 - Libraries, archives, museum and other cultural activities; and 93 - Sports activities and amusement and recreation activities. ** 2008 instead of 2007. *** 2008 instead of 2007; 2012 instead of 2013. For culture we have included: J58 - Publishing activities; J59 - Motion pictures, video and television programme production, sound recording and music publishing activities; J60 - Programming and broadcasting activities; and G476 - Retail sale of cultural and recreation goods in specialised stores. Note: Variations ( 2007-2013) are expressed in percentage variation between two years (%) when figures are expressed in values (as for total population), and in pp (percentage points) when they are referred to indicators already expressed in % (i.e. total employment rate).


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2 The regional ERDF 2007-2013 strategy in the culture and tourism sectors

2.1 Rationale and objectives of the regional strategy in the tourism and culture sectors

The Tourist Triennial Regional Programme of the Puglia Region is the reference document setting up the regional policy framework for tourism. Even though this was specifically focussed on tourism, the Triennial Programme follows an approach that closely interlinks tourism with culture7. It also seeks to integrate other policy fields that may be drawn upon to support Puglias position in international markets. The Triennial Programme outlines trajectories for both growth and investment priorities but does not provide resources for project financing. The Programme assumes that all available financial resources (both at European and national level) will be brought to bear by the regional authorities to put in practice the policy framework directives (see Table 2.3 at the end of this section for further details). The regional policy framework embedded in the Triennial Programme is based upon overcoming two key challenges. The first of these is that although Puglia is characterised by a cultural heritage with exceptional civil and religious architecture, museums, libraries and historic archives, as well as by excellent natural assets and ethno-anthropological traditions, these have until now been used in only a limited way to stimulate tourism. The second of these challenges is that interventions until now have been scattered and fragmented. There has also been and a lack of sufficient private investment capital. The latter is mainly due to the small size of tourist establishments and their fragmentation. Moreover, the management of cultural goods has been carried out at the national level, mainly with the aim of conservation rather than of development. This too has limited the involvement of private investment capital. The underlying rational of the new regional policy framework on tourism is thus related to the need to strengthen the attractiveness of the region in order to generate higher rates of growth. This was to be achieved by integrating tourist promotion with interventions which protect the cultural heritage, cultural assets and local ecosystems, while developing also new forms of cultural creativity8. This overall general objective was to be pursued through the identification of specific objectives characterized on the one hand by a consolidation of the results achieved in previous years in terms of restoration and conservation of cultural heritage, and on the other hand by re-positioning Puglia on international markets through an approach based on: the development of an integrated system of policies connected with tourism;

7 In 2005, anticipating a national process, both culture and tourism competences were allocated to a single Policy Councillor in the newly-elected regional government. This has resulted in a clearer political will in the development of these sectors to increase regional attractiveness and growth. This political will was later strengthened by the drafting of regional laws specifically aimed at reorganising the governance system and the creation of a clearer overall approach towards culture and tourism policies. 8 See on this, Nota metodologica per la definizione della procedura di integrazione attiva territoriale e limplementazione di sistemi ambientali e culturali regionali, P.Montalbano e F. Palumbo, 2013 (internal regional document).


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an improved quality of the tourist offer so that an adequate level of service can be maintained even in the face of an increase in demand;

the de-seasonalization and the diversification of the offering;

the development of a higher quality and more sustainable supply of local cultural and environmental heritage assets by strengthening cultural offerings throughout the territory;

the restoration of the architectural heritage and key monuments;

the strengthening of the network of museums, libraries, historical archives, and theatres;

the development of promotional and enhancement activities for the cultural heritage, greater investment in marketing actions, and the stronger promotion of the image of Puglias cultural heritage and of the hospitality of the region; and

the reorganisation of the system of governance and the implementation of new forms of interaction and partnership between the different stakeholders (public and private) that operate in the territory and can contribute to making it more attractive and competitive (see Section 3.3 below for detail of these changes).

Within this wider strategy, the 2007-2013 ERDF Regional Operational Programme (ROP) played an important role. The new regional approach introduced by the Triennial Programme for tourism became integrated into the ERDF regional development strategy and tourism became one of the regional drivers of economic activity for both employment growth and the overall economic development of the region. Table 2.1 below summarises the ERDF programmes rationale for culture and tourism in Puglia in terms of the main rationales for public financial support to culture and tourism identified in Task 1 of the study (see Interim Report). Table 2.1. ERDF ROP rationale for culture and tourism in Puglia

Rationale for culture Rationale for tourism (i) addressing the market failures which typically characterize the production and consumption of cultural goods

(i) reducing seasonality via tourism promotion

(ii) enhancing the attractiveness of places: culture as a place-branding and tourism attractor

(ii) promoting a more equal distribution of tourism development and destination competitiveness, in order to stimulate a more widespread growth of tourism including in less popular areas, and the marketing/promotion of less developed tourism products

(ii) strengthening the positive socio-economic effects associated with cultural goods and activities; cultures role in generating employment and building competitive advantage

(ii) stimulating and supporting employment and sustainable economic growth

Source: Own classification, on the basis of stakeholder interviews and regional policy documents.

In these respects, the ERDF ROP for 2007-2013 exhibited a shift from the previous period, which had also included tourism and culture among its objectives. According to regional programming documents and carried out interviews, in the 2007-2013 programming period attention in the region moved from policies aimed at mainly restoring and conserving natural and cultural assets to policies aimed at promoting and improving access to the now largely restored natural and cultural assets. The purpose was to increase and support tourist flows into the region. Environmental and cultural heritage has thus been deliberately harnessed to attract more Italian and


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foreign tourists and now represents an important factor for the economic development of the region. In terms of the taxonomy developed in Task 1 of the study (see Interim Report), the ERDF strategy developed for the Puglia region was a mix of the following typologies:

Support for innovation and competitiveness. This approach was pursued by all of the priority themes with the objective of upgrading cultural and tourism services through product, process and organisational innovation (for example by implementing cluster strategies). This was the trait dunion of the whole regional strategy for the Enhancement of natural and cultural resources for attraction and development.

Socio-economic and environmental sustainability. This approach is specific to the coastal areas, which are heavily dependent on the tourism sector. The objective is to preserve historical assets and manage those negative economic, social and environmental externalities related to heavy flows of tourists.

Regeneration and social cohesion. This strategic approach is indirectly addressed by upgrading local cultural and natural assets, supporting cultural infrastructures and promoting events.

Table 2.2 summarises the objectives of the ERDF regional strategy for tourism and culture in Puglia, as structured through the priority themes, and their contribution to the policy approaches identified in Task 1 of the main report. Table 2.2. ERDF regional strategy for tourism and culture: Policy approaches and priority themes

Policy approach to culture and tourism

Priority theme Regeneration and social cohesion

Support for innovation and

competitiveness

Socio-economic and environmental sustainability

Promotion of natural assets

Protection and development of natural heritage

Improvement of tourist services Protection and preservation of the cultural heritage Development of cultural infrastructure Other assistance to improve cultural services Source: Own classification, on the basis of stakeholders interviews and regional policy documents.


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Table 2.3. National/regional programmes supporting the regional integrated strategy for culture and tourism

REGIONAL INTEGRATED STRATEGY FOR CULTURE AND TOURISM

BRIEF DESCRIPTION ROLE OF PUGLIA FINANCIAL ALLOCATION

Tourist Triennial Regional Programme

A series of programmes the latest of which is for the years 2012-2014, which represent the overarching strategy. These provide a tool for the programming strategy for tourism, and lists the financial resources available to be used to implement it.

In line with the guidelines included in the Regional Laws for tourism promotion, the regional programme seeks to enhance regional natural and cultural resources in order to increase the tourist attractiveness of the region through the building up and promotion of a system of integrated tourist products.

The programme itself has no financial allocation. Being an overarching policy document, it simply lists the available resources that could be used to implement the strategy (EU, national and regional)

NATIONAL/REGIONAL PROGRAMMES

PROGRAMME BRIEF DESCRIPTION ROLE OF PUGLIA FINANCIAL ALLOCATION

Interregional operational programme POIN Cultural, natural and tourist attractors

This was designed to support the development for tourist purposes of cultural and natural resources which are present across the southern Italy Convergence regions. The strategy seeks to implement an integrated tourist offer based on the identification of the key cultural, natural and tourist attractors (poles).

Puglia is involved in the coordination of a Ports Networks strategy and in the development and enhancement of the its two main regional touristic attractor poles (the Gargano and Salento territories)

The POIN distributed Euro 1,977.4 Million among the eight Italian Southern Regions. Out of these, around Euro 330 Million are available for Puglia Region (50% ERDF contribution)

Interregional Implementation Programme for the South (PAIN)

PAIN is mainly aimed at integrating the attractor poles across all of the regions. It involves not only the four Convergence regions (Campania, Calabria, Puglia and Sicilia) but also the other southern regions of Abruzzo, Molise, Basilicata and Sardegna.

Puglia is involved in the development of its touristic attractor poles in strict coordination with those of the other Southern regions.

PAIN is financed by the National Fund FAS (Underused Areas Fund) with a financing of Euro 170 Million for the valorization of the natural and cultural resources of the Puglia Region.


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2.2 The main elements of the ERDF interventions in the tourism and culture sectors

The ERDF ROP9 of the Puglia Region 2007-2013 was adopted by a Community Decision10 on 20 November 2007. Its principal aim is to promote the full convergence of the regional economy in terms of growth and employment, while ensuring sustainability. The initial total financial resources amounted to Euro 5.2 Million which became Euro 4.2 Million after reprogramming (Euro 2.6 Million ERDF)11. The ROP identifies the following eight priorities: 1) Promotion and dissemination of research and innovation for competitiveness; 2) Sustainable and efficient use of environmental and energy resources for development; 3) Social inclusion and services to enhance the quality of life and the attractiveness of the region; 4) Promoting the potential of natural and cultural resources to improve the attractiveness and development of the region; 5) Networks and mobility links; 6) Competitiveness of productive systems and employment; 7) Competitiveness and attractiveness of cities and urban systems; 8) Governance, institutional capacity and competitive and efficient markets. From an operational point of view, out of the eight priorities, OP support to tourism and culture is structured along two axes. The first is a dedicated Axis IV which is entirely focused on the Enhancement of natural and cultural resources for attraction and development with the general objective of improving the attractiveness of the region for tourism purposes. The second comprises two Lines of Activity within Axis VI for competitiveness of productive systems and employment (see Table 2.4 below). It is Axis IV which is entrusted with the task of ensuring the implementation of the new integrated regional strategies via the ERDF support. The two Lines of Activity within Axis VI are less directly focused on the culture and tourism strategy as they represent financial support to the regional systems of SMEs via direct financial grants for mainly infrastructural restructuring and development of tourist establishments. Axis VI grants aid to enterprises in the tourist sector as a contribution to initial investment carried out by SMEs. It involves Integrated Facilitation Programmes aimed at improving the tourist offer in Puglia. Line of Activity 6.1.9 grants initial investment aid to individual enterprises in the tourist sector, while Line of Activity 6.1.10 targets consortiums of enterprises in order to seek an integrated set of investments in order to improve the regional tourist offer12. With a planned budget of Euro 352 Million (of which Euro 219 Million represents the ERDF contribution), Priority Axis IV of the Puglia ROP 2007-2013 represents 8.4% of the total value of the programme. The complete Priority Axis VI has a planned budget of Euro 1.097 Million (of which Euro 684,528 represents the ERDF contribution) and this corresponds to 26.1% of the total value of the programme. Line of Activity 6.1.9 had an initial planned budget of Euro 45 Million (of which Euro 28 Million represents the ERDF contribution). This comprises 1.1% of the total value of the programme. Line of Activity 6.1.10 was allocated an initial Euro 54 Million (of which Euro 33.7 Million 9 http://fesr.regione.puglia.it/ 10 The Operational Programme ERDF Apulia 2007-2013 was adopted with Commission Decision (CE) n. C/2007/5726 of 20.11.2007 and further modified with Commission Decision C(2011) 9029 of 1.12.2011 and Decision C(2014)9373 of 4 December 2014. 11 Initially, the EU co-financing rate was 50%. As a result of reprogramming the co-financing rate became 62.4%. 12 Data and information on Axis VI are also included in the Puglia Case study that was carried out in the framework of the Ex post evaluation of Cohesion Policy programmes 2007-2013, focusing on the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) -Support to SMEs - Increasing Research and Innovation in SMEs and SME Development - Work Package 2, of the DG REGIO (2015).


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represents the ERDF contribution). This comprises 1.3% of the total value of the programme. As for connections with other Structural Funds, namely ESF, it is worth saying that the ESF ROP 2007-2013 of Puglia Region does not include a specific strategy on tourism and culture. However, the development of human resources working or potentially working in tourism and/or cultur sectors, are mentioned among possible actions to be financed under both Axis I Adaptability and Axis IV Human capital13. As such, training actions referred to the development of (among other) the tourism and cultural activities sectors were developed at province level. For example, in the Province of Foggia, training activities for supporting the increase of skills and competencies of entrepreneurs and civil servants in the framework of Local Touristic Systems were financed in 2012 (472,500). Also in the Province of Lecce in 2011 a training action for the development of the management of the touristic sector (350,000) was financed. No consolidated data on financial allocation of these interventions are available14. Further connections to tourism and culture can be identified also under Axis VII - Competitiveness and attractiveness of cities and urban systems even if only at the level of strategy. For example, requalification of urban centers projects (Integrated Project of Urban Development) which were financed under Axis VII were aimed at contrasting the phenomena of de-urbanisation and social exclusion of urban centres, both from an economical and social point of view and at valorising historical and cultural resources within urban centres (and this, indirectly, could contribute to enhance the attractiveness of these urban centres also for tourists). However, no specific data and information on the role of these projects with regard to tourism and culture are available.

13 ESF ROP 2007-2013 Puglia Region,

file://Programma%20Operativo%20Regionale%20Puglia%20FSE%2020072013%20(1).pdf 14 ESF ROP 2007-2013 Puglia Region, AIR 2010, 2011, 2012, 2013,

http://fse.regione.puglia.it/portal/pls/portal/FSE.DYN_SOTTOSEZIONE.show?p_arg_names=id_sottosezione&p_arg_values=20

http://fse.regione.puglia.it/portal/pls/portal/FSE.DYN_SOTTOSEZIONE.show?p_arg_names=id_sottosezione&p_arg_values=20http://fse.regione.puglia.it/portal/pls/portal/FSE.DYN_SOTTOSEZIONE.show?p_arg_names=id_sottosezione&p_arg_values=20


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Table 2.4. ERDF regional strategy for tourism and culture (Axis IV and part of Axis VI): Lines of activities, objectives, actions and expected results The logic of intervention

AXIS IV LINE OF ACTIVITIES OBJECTIVE ACTIONS EXPECTED RESULTS

Line of Activity 4.1: Infrastructure, promotion and valorisation enhancing the tourism economy

Promotion of the tourism economy by the enhancement, characterization, diversification and promotion of integrated tourism offerings, the completion and characterization of tourism infrastructure and territorial marketing actions with actions dedicated to the completion of infrastructure supporting the tourism economy (especially tourist ports)

4.1.1. Completion of infrastructure to support the tourist economy (i.e. tourist ports, and the removal of architectural barriers on sites of tourist importance) 4.1.2 enhancement and promotion of the region through the development of specific marketing actions aimed at strengthening the attraction of Puglias tourist destinations on national and international markets 4.1.3 Development of hospitality structures and leisure facilities for social tourism, in rural and beach contexts as well as in the old town centres.

An expansion of the national, but more importantly the international tourist presence

Reduction of seasonality

Line of Activity 4.2: Protection, enhancement and management of the cultural heritage

Protection and enhancement of the regional cultural heritage by actions aimed at promoting them inside and outside the region and increasing the use of the cultural heritage

4.2.1 Completion and expansion of the networks of cultural heritage, archaeological sites, museums, public libraries, historical archives, historical theatres, castles and cathedrals 4.2.2 Protection and enhancement of the cultural heritage

An increase in the demand for cultural products and services in the region

Line of Activity 4.3: Development of cultural activities and entertainment

Development of new cultural activities that could stimulate both cultural demand from the local population as well as local production and the development of production chains in the region

4.3.1. Development of services for promotion, communications, and digital technology for the tourist development in the territory and the cultural heritage in order to increase the attractiveness of the area for television and film production 4.3.2 Development of artistic and cultural events

An increase in the demand for cultural products and services in the region

An increase in the value added attributed to the sector

The achievement of a territorial rebalancing of cultural activities, by spreading them throughout the entire regional territory

An increase the number of sites for the enjoyment of live shows, in particular developing the smaller theatres in the region (both public and private) and an increase in the number of events timetabled (e.g. festivals, shows, etc.)

Line of Activity 4.4: Interventions for an ecological network

Promotion of the development of Protected Natural Areas, and also through the development of green tourism and sustainable territorial marketing

4.4.1 Interventions for the greater use of natural areas (including by tourists) 4.4.2 Promotion and enhancement of the natural heritage (also with tourism aims) 4.4.3 Interventions for improving accessibility to natural areas

An expansion of the national, but more importantly the international tourist presence

Reduction of seasonality

AXIS VI Line of Activity 6.1: Intervention for enterprise competitiveness

Consolidation and support of the growth of local enterprises

6.1.9: Qualification of the tourism offer - supporting investments in the tourism sector through grant aid to enterprises as a contribution to initial investments in fixed assets (e.g. buildings, construction works, renovations etc) carried out by SMEs 6.1.10: Service for innovation and competitiveness in the tourism sector - supporting investments in the tourism sector through grant aid to consortiums of SMEs for the development of the Integrated Investment Programmes in Tourism (PIA TURISMO)

Increase the receptiveness of the tourist establishments (hotels, etc.) and the quality of services offered

Source: Own analysis, on the basis of regional policy documents.


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Table 2.5 below seeks to classify the different types of interventions financed through Axis IV and the two Lines of Activity of relevance in Axis VI in terms of the typologies developed in the Interim Report of the study. The interventions are divided into hard physical infrastructure investments aimed at increasing accessibility to sites, recovering already existing natural or historical assets, and constructing new cultural facilities, and softer non-infrastructural interventions aimed at upgrading the already existing supply of tourism services. These include activities such as promotional campaigns, educational tours, and support for events (e.g. workshops, fairs, festivals).

Table 2.5. Regional strategy for tourism and culture: Types of intervention

Type of intervention Sector Hard Soft

Tourism

Infrastructure and facilities (e.g. roads, signage, lighting, street furniture, routes and trails, parking areas, picnic areas) to improve the use of and access to tourism resources and interventions aimed at tourism development

Improvement and strengthening of the regional system of tourist harbours

Development of hospitality structures and leisure facilities for social tourism, in rural and beach contexts as well as in the old town centres

Recovery of buildings for tourist accommodation

Projects and realization of the networks of trails for hiking

Cycling routes for eco-tourism Reconstruction of natural sites Recovery of rural buildings for tourist

accommodation Machinery, equipment and furnishings Fixed assets (e.g. buildings, construction

works, renovations etc)

Interventions to improve tourist reception, aimed at a better use and provision of dedicated services

Promotion of the regional tourism system through initiatives of hospitality and educational tours

Promotion of the regional tourism system through the organization of, and/or participation in sectoral initiatives at national and international level

Awareness-raising campaigns for local communities and the regional business system

Programmes aimed at promoting and enhancing regional tourism

Integrated communication plans Strategic planning, industry analysis and

implementation activities of the local tourist systems (LTSs)

Studies and research on natural sites Promotion and enhancement of natural heritage for

tourism Consultancies Fairs participation

Culture

Recovery, restoration and enhancement of monuments in historic/artistic areas

Restoration and upgrading of cultural heritage assets of minor importance

Interventions for the restoration and enhancement of historic theatres (infrastructure, furniture)

Intervention for the adaptation of museums and improvement of museum services

Integrated interventions for infrastructure and promotion of systems and networks of cultural heritage

Restoration and enhancement of the system of archives

Restoration and enhancement of the system of libraries

Interventions for the support of the regional system of film production, multimedia and audiovisual activities and for SMEs in the sector

Activities and big events within the movie and audiovisual field (regional networks of cinemas and festivals)

Valorisation and communications relating to Puglia as a cultural location (e.g. educational tours, international workshops for attracting international operators, integrated communication plans, international events and fairs)

Development of artistic and cultural events Integrated communication interventions for cultural

productions of Puglia: festivals, exhibitions and cultural events

Exhibitions and workshops on visual arts, multimedia and photography

Relevant cultural events Festivals and big event live shows Cultural events aiming at valorization of the territory Studies and research on regional cultural activities Technical assistance to the Regional Steering

Committee on Cultural Activities (monitoring and evaluation)

Internationalization of cultural activities (e.g. participation in international events, marketing, etc.)

Live shows and events in a regional context Improvement and valorization of music and dance

events (e.g. Puglia Sounds) International music fairs (e.g. Medimex)

Source: Own analysis, on the basis of regional policy documents.


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The division of financial resources between hard and soft interventions are reported in Table 2.6. Table 2.7 presents similar information in terms of numbers of interventions. As can be seen, while many more financial resources were devoted to hard interventions (66.8% hard vs 33.2% soft), in terms of the number of projects soft and hard interventions come out as nearly the same (50.1% soft vs 49.9% hard). This pattern can be partly explained by the more expensive nature of hard interventions as well by the need to complete several infrastructural and restorations interventions started in the previous programming period However, when one examines Axis IV alone, while financial resources were more devoted to hard interventions (58.3% hard vs 41.7% soft), the number of projects focused on soft interventions amounted to nearly double those for the hard ones (63.8% soft vs 36.2% hard). This shows that within Axis IV particular attention was given to the identification of different and numerous soft interventions linked to the sub-regional planning of activities (more on this later in Section 3.3), together with the specific needs and investments in the creative industries. Same figures referred to 2000-2006 programming period are not available. Qualitative information from interviewees allow to consider resources dedicated to soft intervention (namely for valorisation of the touristic attractions and for cultural activities) relevant, both in term of total amount and in term of percentage on total allocated resources. Table 2.6. Financial allocations to hard and soft. interventions for culture and tourism by Line of Activity

Culture Tourism Total Financial Allocation

Hard Soft Hard Soft Hard Soft 4.1: Infrastructure, promotion and valorisation enhancing the tourism economy - - 46.6% 53.4% 46.6% 53.4% 4.2: Protection, enhancement and management of the cultural heritage 87.4% 12.6% - - 87.4% 12.6% 4.3: Development of cultural activities and entertainment 0.0% 100.0% - - 0.0% 100.0%

4.4: Interventions for an ecological network - - 99.2% 0.8% 99.2% 0.8%

Total Axis IV 62.5% 37.5% 53.9% 46.1% 58.3% 41.7%

6.1.9: Qualification of the tourism offer - - 100% - 100% - 6.1.10: Service for innovation and competitiveness in the tourism sector - - 99.6%* 0.4% 99.6% 0.4% Total Axis IV and Lines 6.1.9 and 6.1.10 of Axis VI 62.5% 37.5% 69.8% 30.2% 66.8% 33.2% Source: Regional monitoring database of ERDF projects (updated at 31 December 2014). *Within this figure it is possible that a small percentage of financial allocations to soft interventions is included. It has not been possible to separate this element out.


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Table 2.7. Number of hard and soft interventions for culture and tourism by line of activity

Culture Tourism Total Number of projects

Hard Soft Hard Soft Hard Soft 4.1: Infrastructure, promotion and valorisation enhancing the tourism economy - - 15.5% 84.5% 15.5% 84.5% 4.2: Protection, enhancement and management of the cultural heritage 86.2% 13.8% - - 86.2% 13.8%

4.3: Development of cultural activities and entertainment 0.0% 100.0% - - 0.0% 100.0%

4.4: Interventions for an ecological network - - 98.3% 1.7% 98.3% 1.7%

Total Axis IV 41.0% 59.0% 28.3% 71.7% 36.2% 63.8%

6.1.9: Qualification of the tourism offer - - 100% - 100% - 6.1.10: Service for innovation and competitiveness in the Tourism sector - - 99.6%* 0.4% - -

Total Axis IV and Lines 6.1.9 and 6.1.10 of Axis VI 41.0% 59.0% 58.4% 41.6% 49.9% 50.1%Source: Regional monitoring database of ERDF projects (updated at 31 December 2014). *Within this figure it is possible that a certain percentage of soft interventions are included. It has not been possible to separate this element out.

The 2007-2013 ERDF strategy for tourism and culture was mainly focused on the urban areas within the region. Although specific data at sub-regional level are not available for some 41.2% of interventions, Table 2.8 below gives sub-regional details for those interventions for which data are available. The distribution among the different cities is territorially oriented on the basis of the presence of cultural and historical heritages (castles, churches, historical building, archives and public libraries) on the territory and the share of population. In 2014, the Province of Bari represents more than 40% of the total population of the region (including the newly defined province of BAT-Barletta-Andria-Trani) and the province of Lecce represents 20% of the total population15. Touristic arrivals and presences are unequal distributed between Puglia provinces, and are concentrated in the provinces of Bari, Foggia and Lecce. Foggia, and to some extent Lecce, are particularly interested by maritime tourism.

15 ISTAT, Demographic Statistics


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Table 2.8. Percentage of financial allocations by type of sub-region and NUTS

Territorial dimension Allocated resources (Euro Million) % of allocated

resources Bari 13.129 63.3%

Not applicable 80.97 61.7% Rural 1.55 1.2% Urban 4.,77 37.1%

Lecce 35.70 17.2%Not applicable 2.26 6.3%

Rural 0.96 2.7% Urban 32.47 91.0%

Foggia 16.94 8.2%Not applicable 0.83 4.9%

Sparsely populated 3.30 19.5% Urban 12.82 75.7%

Brindisi 12.10 5.8%Not applicable 0.51 4.2%

Sparsely populated 0.28 2.3% Urban 11.31 93.4%

Taranto 11.33 5.5%Not applicable 0.86 7.6%

Rural 1.71 15.1% Urban 8.75 77.3%

Total 207.36 100.0%

Not applicable 85.44 41.2%Rural 4.22 2.0%Sparsely populated 3.58 1.7%Urban 114.12 55.0%Total 207.36 100.0%Source: SFC 2013. 2.3 Governance and supportive features of the ERDF strategy in the tourism

and culture sectors: main actors, process phases and procedures The Puglia region government is the overall ERDF ROP Managing Authority (MA). However, in order to implement specific interventions relating to the different ROP Axes, individual Intermediate Bodies were established. Puglia Sviluppo SpA is the company in region that acts as the Intermediate Body for the management of business incentives including those delivered within Axis VI with regard to Line of Action 6.1.9 and 6.1.10. In the case of the more important Priority Axis IV, designed to implement the new regional integrated strategy interlinking culture and tourism, existing organisations and governance systems were not thought suitable. Instead, what was required was the design of a new governance system. A bottom-up participatory model of governance was established at the beginning of the 2007-2013 programming period to implement the overall ERDF regional strategy by reinforcing democracy and community responsibility. This new system was designed to promote the integration of the various (local) territorial assets, capabilities and resources (both financial and human) in order to implement innovative projects.A key component of this new participatory approach was the development of ten so-called area vasta, (in English, broad areas). These are sub-regional aggregations of municipalities which represent a part of the


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regional territory16 and are experimenting in an innovative process of multilevel governance which has as its outcome the definition of strategic plans for each area vasta which are funded by integrated financial resources (ERDF ROP, but also PAIN/POIN and other national and regional resources). The strategic plans elaborated by each area vasta are first evaluated by a specific Regional Committee for the evaluation and verification of public investments. These evaluations then represent the basis for further programme and implementation agreements within the region. Within the framework of this general coordination process based on common objectives and procedures (the area vasta programmes), specific territorial negotiation outlines were established with the aim of implementing the cultural and tourist strategy at local level through a process of sub-regional strategic planning. This is designed to empower local stakeholders and increase democratic participation towards an overall strategic vision focusing on the following features:

The development of new cultural products strongly connected with the territory and integrated in so-called Local Tourist Systems (LTSs) defined by the relevant national law (L. 135/2001) as: homogenous or integrated tourism contexts with widespread individual or associated tourist businesses involved that can diversify the tourist offer and improve the regions attractiveness. In other words, LTSs have strongly local characteristics and themes and place a strong emphasis on a new generation of services at the cross-over point between culture and creativity. In this context, the policies for promoting tourism have been geared towards the positioning of Puglia in both national and European markets, and towards the creation of a new brand.

The creation of new integrated Environmental and Cultural Systems (ECSs)17 throughout Puglia. These seek to combine the environmental with the cultural heritage. ECSs promote the adoption of new integrated cultural services with the aim of promoting and enhancing attractiveness, cultural demand and tourism; drive innovations and investments in new technologies; and support creative entrepreneurship activities. The final goal is to transform the existing cultural heritage into new networks of physical spaces aimed at promoting innovation and entrepreneurship in the field of culture and creativity.

LTSs and ECSs are different, but complementary, for the overall effort that Puglia has been making for culture and tourism. While LTSs are a new governance instrument envisaged by a national law and subsequently locally implemented, ECSs are integrated interventions moving from the identification of a key idea of integrated valorisation within the multiplicity of environmental and cultural resources specifically designed for the implementation of the cultural and tourist strategy included in the Puglia ERDF ROP 2007-2013.

16 The area vasta concept is a new one. An area vasta does not represent a geographic entity, but rather a dimension of a territorial planning halfway between local and regional institutions. This concept has grown out of a process that has involved private and public stakeholder discussions on the promotion and implementation of effective partnership systems and alliance networks. 17 Designed on the basis of the results achieved by the PIS (Sectorial Integrated Programmes) implemented in the programming period 2000-2006, the ECSs are based on systematising environmental and cultural resources with the aim of promoting more efficient programme implementation.


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To better coordinate the process, increase local participation, and at the same time retain regional leadership (thus adopting a coherent system between the general objectives set at regional level and the needs and the interventions planned at local level), Puglia decided to create in 2011 a Regional Tourism Agency called Pugliapromozione. Its primary mission is to manage the activities of tourist promotion throughout the regional territory becoming the sole agency since the dissolution of five previous provincial Tourist Promotion Agencies TPAs18. The new agency is designed to support the regional tourist system and reinforce tourist demand, whilst simultaneously rationalising the expenditure of the limited national and European funds at the disposal of the region19. Moreover, at the regional level, a re-organization of the regional offices to manage integrated interventions and pilot experimentation was carried out. The presence of a single Area Director in charge of the coordination of different policies and regional departments involved in the implementation of ERDF Axis IV appears to have allowed a more uniform and coherent approach. Both Pugliapromozione and the local governments involved in area vasta, LTS and ECSs are also among the main beneficiaries of interventions financed under Axis IV. Table 2.9 below presents a list of the main beneficiaries for both Axis IV and the Axis VI Lines of Activity in the 2007-2013 programme. Table 2.9. Beneficiaries by Line of Activity

LINE OF ACTIVITY BENEFICIARIES 4.1: Infrastructure, promotion and valorisation enhancing the tourism economy Puglia regional government and other public bodies

4.2: Protection, enhancement and management of the cultural heritage

Puglia regional government, other public bodies, religious organisations and other possible beneficiaries as defined by the ERDF ROP Steering Committee

4.3: Development of cultural activities and entertainment

Puglia regional government, other public bodies and their consortiums, bodies and foundations owned by public bodies, and small enterprises

4.4: Interventions for an ecological network Puglia regional government, other public bodies and managers of protected areas 6.1.9: Qualification of the tourism offer SMEs 6.1.10: Service for innovation and competitiveness in the tourism sector

Single medium-size enterprises or consortiums of SMEs

Source: ERDF, Axis IV and Axis VI Regional Implementation Programme.

As Table 2.9 makes clear, both the Puglia regional government and the other levels of government (i.e. provinces, rural communities, and municipalities) are actively involved directly or indirectly (via Pugliapromozione for example) as beneficiaries in all Axis IV Lines of Activity. Only with specific regard to Line of Activity 4.3 are small enterprises (SMEs) included among beneficiaries, along with consortiums of local public entities (e.g. the LTSs). Private sector, network of stakeholders, artists etc.. were supported for the development of cultural activities such as music festival, concerts, participation of musical events at international level (see, for example, the mini case study Puglia Sounds), but also in other cultural sector like theatre (organisation of theatre festival, i.e. Teatri Abitati).

18 Regional Law 1/2002 had already defined this dissolution, a dissolution which was later re-iterated in regional Law 18/2010. 19 The dissolution of the five TPAs and the establishment of just one RTP allowed a faster acceleration of expenditures which moved from Euro 1.5 Million in 2010 to Euro 14.6 Million in 2014 (Pugliapromozione Annual Report, January 2015).


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Within Line of Activity 4.3, the use of publicprivate partnerships was limited to the development of soft cultural activities and was locally used for empowering small businesses. However, small enterprises are recipients in the other Lines of Activity and can manage (via negotiated procedures) small parts of projects for which in-house bodies (such as Pugliapromozione) are the principal beneficiaries. By contrast, the two Axis VI Line of Activity (6.1.9 and 6.1.10) are confined solely to SMEs and medium-size enterprises. The different beneficiaries involved in the implementation of the various Lines of Activity in both Axis IV and Axis VI were subject to formal selection procedures and standard types of contracts were implemented. With specific regard to Axis IV, the active presence of public bodies at the local level as well of the Puglia regional government, together with differences across the four Lines of Activity in the types interventions permitted made it necessary to develop a differentiated use of selection procedures. As can be seen by Table 2.10 below, in many cases the regional government assigned the implementation of interventions directly to itself or through in-house bodies (such as, for example, Pugliapromozione within Axis IV and PugliaSviluppo within Axis VI). Negotiated procedures with local government were also widely used within the system of multilevel governance previously described. Public open tender procedures were mostly limited to physical and infrastructure interventions. With specific regard to Axis VI the only public tender procedures carried out were for direct requests by the enterprises of financial support (grants). The aid is not delivered through calls, but on a continuous basis upon request by potential beneficiaries. As for Line of Activity 6.1.9, the aid intensity (defined as the maximum percentage that could be requested) is 45% for micro and small enterprises and 40% for medium-sized enterprises. With Line of Activity 6.1.10 the aid intensity is 35% for medium-sized enterprises and 45% for small enterprises. The criteria adopted for project approval were as follows:

With regard to Axis IV these were: integration with other interventions/programmes aimed at the development and enhancement of the LTSs and/or ECSs; qualitative and quantitative analysis of the demand for tourist and cultural activities; economic sustainability; capacity for increasing quality standards of tourist systems; impact on the regional tourist system through interventions aimed at the diversification and de-seasonalisation of tourist flows; feasibility of the interventions; and innovation.

With regard to Axis VI these were: reliability and consistency of the technical and financial proposal; compatibility of the initiatives main objectives with the growth potential of beneficiaries; feasibility of the interventions; reliability of the proposed increased employment (together with the gender division of new jobs); environmental sustainability; integration with the economic and productive territory; completion and/or consolidation and/or innovation of sectoral and territorial supply chain; and characteristics and timing of the investment plan.

Generally speaking, both the Axis IV and Axis VI implementation processes (from programming to the tender design and definition and delivery of financing), proved to be relatively efficient. Moreover, in both cases, during the interviews it was pointed out to us that a certain degree of flexibility in adjusting and fine-tuning the processes


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during the programming period to cope with observed shortcomings was achieved. However some weaknesses were also recorded in both cases. In the case of Axis VI, the identification of consortium bids in Line of Activity 6.1.10 proved cumbersome and slowed down the starting date of the projects and thus the level of expenditure. Moreover, in both Lines of Activities in Axis VI, the system in place seemed to be more prone to specific requests from SMEs, thus failing to stick to a more strategic and steering role. As for Axis IV, the new governance system proved to be still in need of some adjustment especially in the coordination of all the local governments involved in the area vasta programming. Better capacity building needs to be undertaken in the next programming period and a stronger regional leadership in the process would be desirable. Stronger institutional capacity to consider and systematise other forms of territorial governance and coordination among local stakeholders is needed (in order to avoid duplication and confusion). For example, the Local Action Groups (GAL), the Sectoral Integrated Programming (PIS), and others created during the previous programming period in 2000-2006 did not always function effectively. Weak institutional capacity within and among some of the local territories meant that, in some cases, efficient implementation of territorial planning and the identification of local strategies was hampered. In particular, some local areas have only recently discovered a tourist vocation and were not sufficiently equipped to cope with complex processes and procedures.


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Table 2.10. Selection procedures by typology of interventions within Axis IV

Interventions Public open tender procedures

Negotiated procedures

Regional

government with no

selection procedures

Other procedures

Line of Activity 4.1.1 A. Interventions to improve tourist reception, aimed at a better use and

provision of dedicated services Yes No No No

B. Infrastructure and facilities (e.g. roads, signage, lighting, street furniture, routes and trails, parking areas, picnic areas) to improve the use of and access to tourism resources and interventions aimed at tourism development

No Yes Yes No

C. Improvement and strengthening of the regional system of tourist harbours Yes Yes Yes No Line of Activity 4.1.2

A. Promotion of the regional tourism system through hospitality initiatives and educational tours Yes Yes Yes No

B. Promotion of the regional tourism system through the organization of and/or participation in sectoral initiatives at national and international level Yes Yes Yes No

C. Awareness-raising campaigns for local communities and the regional business system No No Yes No

D. Programmes aimed at promoting and enhancing regional tourism Yes Yes Yes No E. Integrated communication plans No Yes Yes No F. Strategic planning, industry analysis and implementation activities of the

local tourist systems (LTSs) No Yes Yes No

Line of Activity 4.1.3 A. Creation of a network of structures dedicated to social tourism such as

sport and leisure structures addressed also to people with disabilities

No Yes No No

Line of Activity 4.2.1 A. Recovery, restoration and enhancement of monuments in historic/artistic

areas Yes Yes No No

B. Restoration and upgrading of the cultural heritage assets of minor importance Yes Yes No

No

C. Interventions for the restoration and enhancement of historic theatres (e.g. infrastructure, furniture, ICT) Yes Yes No

No

D. Interventions for the adaptation of museums and improvement of museum services Yes Yes No

No

E. Restoration and enhancement of the system of archives Yes Yes Yes No F. Restoration and enhancement of the system of libraries Yes Yes Yes No G. Integrated interventions for infrastructure provision and promotion of Yes Yes Yes No


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Regional

government with no


Other procedures

systems and networks of cultural heritage Line of Activity 4.2.2

A. Interventions for the restoration and valorisation of the museum system Yes Yes Yes No Line of Activity 4.3.1

A. Interventions to support the regional system of film production, multimedia and audiovisual activities (e.g. subsidies for equipment, ICT, etc. and for SMEs in the sector)

No No Yes No

B. Activities and big events within the movie and audiovisual field (regional networks of cinemas and festivals) No No Yes Yes

C. Valorisation and communication activities relating to location of Puglia (educational tours, international workshops for attracting tourists) No No Yes No

D. International operators, integrated communication plans, international events and fairs No No Yes No

Line of Activity 4.3.2 A. Integrated communication interventions for cultural productions in Puglia:

festivals, exhibitions and cultural events No No Yes No

B. Exhibitions and workshops for the visual arts, multimedia and photography Yes No Yes Yes C. Relevant cultural events Yes No Yes No D. Festivals and big event live shows No Yes Yes Yes E. Cultural events aiming at valorization of the region No No Yes No F. Studies and research on regional cultural activities No No Yes No G. Technical assistance to the Regional Steering Committee on Cultural

Activities (monitoring and evaluation) No No Yes No

H. Internationalization of cultural activities (participation in international events, marketing, etc.) No No Yes No

I. Live show events in a regional context (e.g. events in local theatres such as Residenze teatrali) No No Yes No

L. Improvement and commercialization of music and dance events (e.g. Puglia Sounds) No No Yes No

M. International music fairs (e.g. Medimex) No No Yes No Line of Activity 4.4.1

A. Recovery of buildings for tourist accommodation Yes, but only for interventions on

buildings No

Yes, but only for

coordination, guidelines

and

No


October 2015 32



Regional

government with no


Other procedures

preliminary analysis of buildings

B. Projects and realization of the network of trails for hiking

Yes, but only for the physical

implementation of trails

No

Yes, but only for the

design and coordination

of the network of

trails

No

C. Cycling routes for eco-tourism Yes No No No D. Reconstruction of natural sites Yes Yes Yes No E. Studies and research on natural sites Yes Yes Yes No

Line of Activity 4.4.2

A. Drafting of a Quality Chart for the promotion of the region: a European Chart for the Sustainable Tourism (CETS).

Yes, but only for actions aimed at

encouraging firms to adhere to the Quality

Chart

Yes, but only with regard to local

public bodies and authorities for the protection of the natural heritage

and for monitoring purposes

Yes, but only for drafting the Charter


No

B. Promotion of products through the Quality Chart Yes, but only for actions aimed at

involving firms within promotional activities






No

C. Actions for the improvement of the quality of food products and reception facilities through the use of quality brands


encouraging firms to adhere at promotional

activities





No


October 2015 33



Regional

government with no


Other procedures


D. Implementation and promotion of Quality Brands based on the natural heritage


encouraging firms to engage with

promotional activities




Yes only for drafting the Charter and

for monitoring purposes

No

E. Production and diffusion of information, materials and studies Yes Yes Yes No

F. Actions in support of the Natural Parks Yes, but only for

actions of territorial valorisation

Yes, but only with regard to public

authorities for the protection of the natural heritage

and for coordination with other institutional

bodies

Yes, but only for action to create and

commercialize the

network of Natural Parks

No

Line of Activity 4.4.3

A. Physical recovery of rural infrastructure Yes, but only for

physical infrastructure interventions

Yes, but only with local government Yes No

B. Preservation and development of natural sties Yes, but only for

physical infrastructure interventions

Yes, but only with local government Yes No

Source: ERDF, Axis IV Regional Implementation Programme.


October 2015 35

3 Effectiveness and sustainability of the strategy: outputs and results

3.1 Measuring achievements: the monitoring and evaluation system in place

The monitoring system in place at the regional level reports only on limited aspects of the achievements of the OP and is focused on implementation indicators (e.g. number of projects implemented, expenditure). It is structured at the Axis level and provides some partial evidence at the level of Line of Activity or specific typologies of interventions. There is more detailed and up-to-date information available within the offices responsible for Lines of Activity within the Regional government, or within implementing agencies. This more detailed information is systematically used by programme managers responsible for implementation, but is not centrally included in the official regional monitoring system. The result of this is that several unofficial monitoring systems have been developed. These do not match up well with the official centralised monitoring system. Quite a lot of evidence on the results achieved by individual projects is available and collected thanks to the personal interactions of programme managers with beneficiaries. However, the collection of data and information from beneficiaries is fragmented and not centralised, and this lack of a comprehensive and integrated system results in poor feedback at the strategic level. This has hindered a full and thorough evaluation exercise. The responsibility for carrying out evaluations of programmes lies with the Evaluation Unit of the regional government. No evaluation studies of the impact of the strategy on tourism and culture system in the region and on the strategy implementation process were carried out. However, there is a widely-shared opinion among the interviewees that it is still too early for an ex-post evaluation of the 200

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