GOI INTEREST IN USAID ADRIATIC SUSTAINABLE TOURISM

UNCLAS ROME 001887

SIPDIS

SENSITIVE
SIPDIS

STATE PASS TO USAID HENRIETTA FORE, ALONZO FULGHAM, NORMAN
NICHOLSON
PASS TO EUR/FO KURT VOLKER, MATTHEW BRYZA
DEPT OF COMMERCE PASS TO PAUL DYKES

E.O. 12958: N/A
TAGS: EAID ECIN ECON EIND ETRD ZL IT
SUBJECT: GOI INTEREST IN USAID ADRIATIC SUSTAINABLE TOURISM
ALLIANCE (ASTA)



1. (SBU) SUMMARY: The Chief of Tourism in the Government of
Italy's (GOI) Office of the Prime Minister expressed interest
in supporting and contributing to a proposed Adriatic
Sustainable Tourism Alliance (ASTA) after meetings with
USAID. Our contact requested that a high level USG
representative write to Ministry of Culture Rutelli seeking
the GOI's formal views and soliciting means to move the
project forward. Meetings with officials in the GOI's
Ministry of Foreign Affairs (MFA) were more ambivalent, but
interest in the PM's office may be sufficient to open the
possibility of GOI funding for ASTA. END SUMMARY.


2. (SBU) During a recent visit to Italy Thomas Mefford, the
USAID Deputy Assistant Administrator for Europe and Eurasia,
discussed support for the proposed ASTA with relevant
officials from the Office of the Prime Minister and MFA. The
PM's Chief of Tourism, Angelo Balducci, expressed interest in
the program and believed it could have a place in Minister
Rutelli's tourism program (as Minister of Culture, Rutelli
controls the GOI's tourism and tourism development
initiatives). Balducci saw the proposed ASTA project as an
effective means for developing Balkan economic development
and increasing Italian presence in tourism in the Balkans.
He also thought the program had significant potential
infrastructure and environmental components, again
heightening its relevance to the GOI. In addition he flagged
possible EU interest in the project. Balducci proposed that a
high level USG official, perhaps Mr. Mefford or Ambassador
Spogli, write Rutelli, referencing Mr. Mefford's meeting with
Balducci. The letter could explore means to move the project
forward (Balducci reports to Rutelli). Balducci offered to
send the Embassy and USAID a sample request letter in a
suitable format to obtain maximum attention from Rutelli.


3. In an initial meeting with Alessandro Foschini, a member
of Balducci's staff, Foschini expressed interest in the ASTA
program in the context of providing GOI development
expertise. He noted that Italy has some experience in
tourism development through the Barcelona Declaration's Five
Plus Five process. Foschini also thought that major Italian
tourism companies might be interested, especially for skiing
and coastal-oriented tourism.


4. (SBU) Mefford also met with Alain Economides, Director of
Development, Maria Zappia-Cailluax, Chief of Development, and
Raffaella Valentini, Deputy Head of Office, Middle East and
Balkans, at MFA. While interested, they requested more
precise details on specific tactics that the ASTA project
might fund, and more specificity of how funding would be
deployed before they could commit to the project. Mefford
noted that the first part of the actual project, area mapping
and analysis, would identify more precisely the tactics and
funding that were necessary.


5. (SBU) Zappia-Caillaux identified the expertise that MFA's
development program offers: credit lines, infrastructure
development, technical assistance, and training. Economides
suggested that Mefford speak with other EU countries, in
addition to Italy and Greece, to expand European interest in
the project. Economides also suggested that Mefford speak
with relevant tourism authorities in the Italian regions
bordering the Adriatic. He noted that the regions have
budgets and spending authority allocated to them for tourism
that may be other sources of support for ASTA.


6. (SBU) COMMENT: Post believes that Balducci's interest
signals a credible way forward for ASTA. Post also views the
opportunity to deal with the central Italian government as
more effective than dealing with a number of separate
regions. Balducci noted that, contrary to Economides's
suggestion, the Ministry of Culture would have competence for
funding ASTA, rather than the Italian regions, since ASTA
would be a Europe-wide project. Further, since ASTA would
involve foreign environmental and infrastructure issues, the
Ministry, rather than the regions, would again have funding
and management competence.


7. (SBU) We expect to receive the sample/draft letter from
Balducci's office shortly. Upon receiving the draft letter,
we will forward it to Mr. Mefford/USAID for consideration.
END COMMENT.
SPOGLI