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Urban Development

How Can Cities Leverage the Potential of the ‘Sharing Economy’?

MD Staff

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According to Google Trends, the popularity of the phrase “sharing economy” has increased sixteenfold since 2013. But what is it? Sharing economy is often confused with overlapping terms such as the “collaborative economy”, “on-demand economy”, “gig economy”, “freelance economy”, “peer economy”, “access economy”, “crowd economy”, “digital economy” and “platform economy” – distinctions explored here.

Sharing is an age-old concept. But the potential pool of people with whom to share is growing exponentially, as technology-enabled platforms connect and vouch for new members from around the globe. Cities can leverage the potential of the sharing economy in municipal goods, municipal spaces, civic assets, municipal services and skills and the talents of city residents.

“While sharing may often decrease the cost of access, it also has the potential to address long-term societal challenges such as making cities more inclusive and building social connections between groups that might otherwise never have interacted. In experimenting with sharing practices, however, cities will also have to be agile in addressing externalities and disruption to their planning processes, policy formulation and regulatory structures,” said Cheryl Martin, Head of Industries, World Economic Forum.

The paper, mandated by the World Economic Forum Future of Urban Development and Services Initiative Steering and Advisory Committee, explores opportunities and challenges of the sharing economy in cities by highlighting examples and solutions from cities around the world:

  • Melbourne is a global leader in the food-sharing sector.
  • Seattle has six “libraries of things” in lower- and mixed-income areas, where citizens can borrow tools.
  • New York organization 596 Acres supports residents to reclaim and manage public land for communities.
  • Barcelona is driving a time-bank project where people exchange their time for doing everyday tasks.
  • London has a crowdfunding platform where citizens can propose project ideas and get City Hall’s support.
  • Seoul now has 97 distinct sharing schemes, from public bicycles to parking spaces to children’s clothes.
  • Kamaishi City is partnering with sharing platforms to prepare for hosting the 2019 Rugby World Cup.
  • Kigali motorbike taxi app SafeMotos uses smartphone data to distinguish safe from unsafe drivers.
  • Amsterdam is connecting senior citizens and low-income households to sharing platforms via CityPass.
  • São Paulo has implemented road-use fees to encourage transport network companies (TNCs) to complement public transit, limiting excess supply during peak hour congestion and augmenting supply when less served.

The paper also explores sharing-economy ideas that span multiple cities:

  • “Co-City” protocol is exploring forms of shared, collaborative and polycentric urban governance.
  • Sharing Cities Alliance organizes summits, seminars and a knowledge base for cities to draw on.
  • Trust Seal is the first Kitemark for sharing-economy companies, proving they adhere to good practice.

“The sharing economy is making cities redefine land-use strategies, minimize their costs, optimize public assets and collaborate with other actors (for-profits, non-profits, social enterprises, communities and other cities) in developing policies and frameworks that encourage continued innovation in this area. This paper focuses on the drivers of sharing in a city and how cities can embark on the sharing journey,” said Gregory Hodkinson, Chairman, Arup Ltd and Chair of the World Economic Forum System Future of Urban Development and Services Initiative.

The sharing economy has its challenges – from establishing trust and reputation to ensuring safety and security, and dealing with the uncertain effects on social equality and limited inclusivity. As Hazem Galal, PwC Global Cities and Government Leader, said: “Regulatory and tax structures need to be revisited to address these concerns as sharing platforms begin to scale across different sectors of the economy. At the same time, developing a culture of sharing within cities to improve services with accountability and transparency would go a long way in shaping the ‘sharing cities’ of the future.”

The paper explores potential solutions to these challenges. It makes the case that sharing in cities can have a transformative impact – boosting the economy and nurturing a sense of community by bringing people into contact with one another, facilitating neighbourliness, and improving the environment by making the most efficient use of resources. Cities have a potential role in facilitating/enabling and harnessing the sharing business models by fostering partnerships that shape a “sharing and collaborative” culture across all industry sectors.

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Urban Development

Creating Smart Cities for Innovative Tourism Experiences

MD Staff

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The UNWTO Conference on City Breaks: Creating Innovative Tourism Experiences (15-16 October 2018) concluded today in Valladolid, Spain, with a call for cities to become smart tourism destinations, where tourism governance and the digital economy mesh together to offer travellers diverse and authentic experiences.

The conference brought together tourism leaders from the public and private sectors to analyse how to respond to the growing trend of city breaks as leisure experiences. They concluded that public-private partnerships, the inclusion of local communities and the creation of smart destinations are crucial for urban destinations to gain the knowledge and define the policies they need in order to respond to the new demands of hyper-connected and hyper-informed tourists.

“We must understand the evolution of tourists towards greater sustainability and inclusiveness, using new technological tools,” said Jaime Cabal, Deputy Secretary-General of the World Tourism Organization (UNWTO). “Creativity and innovation are needed when designing the experiences they are increasingly demanding.”

The Councillor for Culture and Tourism of Valladolid, Ana Maria Redondo, echoed this call, adding: “We need a better understanding of the fundamentals behind the current demand for city break experiences. Smart destination tools are our means to obtain this knowledge.”

The Deputy Director-General for Tourism Development and Sustainability of the Ministry of Tourism of Spain, Ruben Lopez Pulido, suggested that cities and all destinations change their models of tourism development to respond not only the most demanding tourists, but also to the rise of the digital and knowledge economy. “Being a smart destination is not just a label, but a process towards the comprehensive transformation of destinations, while always aiming at the achievement of the Sustainable Development Goals,” he said.

Speakers at the conference included Dieter Hardt-Stremayr, President of European Cities Marketing and CEO of the Graz Tourism Office in Austria, who described what he considered key challenges for the growth of city breaks: transportation issues, seasonality, and the dispersion of tourism demand within a city and over time. “Our main challenge is to attract visitors to come right at this moment. To overcome it destination managers should focus on parts of the tourism offer that are ‘temporary’,” he concluded.

The main conclusions of the conference referred to urban tourism governance models. Participants highlighted that, with the growth of high-speed, low-cost transportation links that provide more and more visitors with access to city breaks, city destinations must respond by prioritizing investments that benefit residents and tourists alike.

They also concluded that with the technological advances that allow the creation of smart destinations, destination management organizations must shift their focus from only promoting the experiences available for tourists in cities, to managing urban tourism in all its complexity. For their part, tourism policy makers should use smart destination tools to study the impact of tourism on the profitability and sustainability of a city, and place the destination at the centre of policy changes. These conclusions will be taken into account in the UNWTO work plan on urban tourism.

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Urban Development

Melaka a model green city

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In the last five years, Melaka has made great strides toward building a sustainable, green city.

By 2020, the government-run 7248ha Melaka World Solar Valley aims to power most of the daily activities of manufacturers, housing developers, farmers and other stakeholders.

Recently, a public-private partnership installed 100,000 LED street lamps along the Alor-Gajah-Melaka Tengah-Jasin Highway, which will improve road safety and reduce carbon dioxide emissions.

The urban landscape has also changed. Walkable neighbourhoods with mixed-use development have increased foot traffic and reduced car use.

The Melaka River, long a polluted backyard drainage canal, is now a popular gathering place and tourist attraction.

Melaka’s transformation is the result of meticulous planning, a comprehensive approach supported by government policies and projects, private sector engagement and citizen initiatives.

The Asian Development Bank (ADB) is proud to have worked with Melaka to develop its roadmap, the Green City Action Plan.

In addition to a technical assistance grant to underwrite the plan, which was completed in 2014, ADB also helped Melaka implement it, including by structuring bankable projects for solar energy and street lighting, setting up a database to track indicators in environment and economic growth, and conducting training in urban development, environment planning and knowledge sharing.

The Melaka projects are the first to be implemented under the Green Cities Initiative of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), an ADB-supported sub-regional cooperation programme focused on the development of 32 provinces in these three countries.

It aims to help states and provinces discover and use their relative comparative advantages to work together in the sub-region.

So far, four other cities – Songkhla and Hat Yai in Thailand; Medan and Batam in Indonesia – have developed similar plans.

A “green” city means an area that is resilient and inclusive, manages its natural resources well, promotes low carbon growth to remain competitive and improves the livelihoods of all citizens.

With each green city plan, countries are moving away from business-as-usual economic growth models to forge a clear, concise vision for a city’s future based on factors such as comprehensive analysis and consensus among key stakeholders.

These plans present a paradigm shift, where cities pursue integrated urban development and environmental planning as they make a transition to a cleaner, greener and more prosperous future.

The initiative is very relevant, because cities are the primary drivers of economic growth across countries in the Association of Southeast Asian Nations (Asean), producing about 70% of the region’s gross domestic product.

Almost 300 million people in Asean already live in cities, and another 90 million people are expected to move in by 2030, pushing up the urban share of the population to nearly 45%.

Urbanisation is placing a growing environmental strain on cities, such as air, water and noise pollution, traffic congestion and inadequate solid waste management.

Tackling these challenges will require city governments to integrate social and environmental considerations into locally customised economic development plans.

It will require innovation, testing and application of new ideas, learning and sharing of lessons, and development of new approaches to emerging challenges.

The Green Cities Conference, to be held on Oct 1 in Melaka, will bring city leaders together to collaborate on green growth strategies.

It also seeks to continue to support the Green Cities Network established under the IMT-GT and the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area.

ADB strongly supports the network of Asean green cities, which serves as a platform for knowledge sharing.

Coinciding with the 25th anniversary of IMT-GT, the conference also provides a window for action following Melaka’s success in transforming into a green city.

It’s time now for policy makers to make their own Green City Action plans a reality. The implementation process requires strong coordination between multiple government agencies, the private sector and communities.

It will also require a management approach easily adaptable to project monitoring, data analysis and citizen feedback.

ADB stands ready to provide knowledge and financial support to further develop competitive, inclusive and green cities across Asean.

ADB

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Urban Development

Urban Tourism: We Need to Build Cities for Residents and Visitors

MD Staff

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At the 7th UNWTO Global Summit on Urban Tourism in Seoul, Republic of Korea (16-19 September), the Secretary-General of the World Tourism Organization (UNWTO), Zurab Pololikashvili, laid out a vision looking to 2030 for urban tourism that contributes to sustainable and inclusive cities.

“A vision of urban tourism for 2030 needs to be inclusive, resilient, innovative and smart”, Mr. Pololikashvili said at the conference, which was held in partnership with the Seoul Metropolitan Government and engaged 900 participants from 50 countries in how to build cities for both residents and tourists.

Key amongst the conference conclusions was that technology and innovation will play a key role in this vision, but only if cities invest in the right infrastructure and skills, set an enabling regulatory framework and break the silos that exist among data sources. Speakers also stressed the role that tourists themselves play in respecting the local communities, traditions and values of cities.

The conference was opened by Park Wonsoon, Mayor of Seoul, who stressed that “Seoul has improved its tourism because we have been able to predict changes in tourism, technology, society and environment to follow trends and react appropriately to challenges”.

Do Jonghwan, Minister of Culture, Sports and Tourism of the Republic of Korea, commended the summit for producing “an array of suggestions on cities’ function and role in tourism, the value and significance of cities to be shared with travellers, and how tourism can bring financial benefits with added values for residents.”

Memorable experiences were discussed at length as a major shift in motivation for tourists. “Tourism is a top sector in the experience economy, which is now becoming the transformational economy – cities, to be competitive, need to be authentic and provide transformational experiences,” said the conference’s keynote speaker B. Joseph Pine II, author of the best-seller ‘The Experience Economy’.

The conference stressed that tourism can and should contribute to the New Urban Agenda and the Sustainable Development Goals (SDGs), particularly Goal 11 on safe, resilient, inclusive and sustainable cities.

For that, participants called for tourism to be included in urban governance; led by cooperation among public, private sector and civil society; planned and managed considering local community needs and benefits; and smart in using technology and innovation to promote authentic experiences, monitor tourism impact and promote dispersal policies to spread benefits to the whole city and manage congestion. These four key areas of action will be taken forward to the 8th UNWTO Urban Tourism Summit, to be held in Astana, Kazakhstan in 2019.

On the occasion UNWTO released the report ‘‘Overtourism’? Understanding and managing urban tourism growth beyond perceptions’, produced in collaboration with the Centre of Expertise Leisure, Tourism & Hospitality (CELTH), Breda University of Applied Sciences, and the European Tourism Futures Institute (ETFI) of NHL Stenden University of Applied Sciences. The report proposes eleven strategies and 68 measures to help understand and manage visitor growth in cities.

The 7th UNWTO Global Summit on Urban Tourism was organized by UNWTO and the Seoul Metropolitan Government with the support of the Ministry of Culture, Sports and Tourism of the Republic of Korea, the Korea Tourism Organization and the Seoul Tourism Organization.

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