Although tourism is an activity sustained mainly by private initiative, governments have traditionally played a key role in its development and in the promotion of their countries as tourism destinations. Over the past decade, however, there have been increasing signs of disengagement from tourism by the public sector. This has resulted in the relinquishing of a number of governments traditional responsibilities and activities in the field of tourism in favour of both local authorities and the private sector. This study was commissioned in an attempt to gain a better understanding of the reasons behind these changes and their implications for the future.