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Tangier, Morocco: Success on the Strait of Gibraltar

Z. Joe Kulenovic's picture
 Z. Joe Kulenovic
Modern factories, seaport terminals, and technical schools, plus priceless cultural monuments: Tangier, Morocco

In late 2014, the World Bank’s Competitive Cities team visited the Moroccan city of Tangier, to carry out a case study of how a city in the Middle East & North Africa Region managed to achieve stellar economic growth and create jobs for its rising population, especially given that it is not endowed with oil or natural gas reserves like many others in the region.
In just over a decade, this ancient port city went from dormant to dominant. Between 2005 and 2012, for example, Tangier created new jobs three times as fast as Morocco as a whole (employment growth averaged 2.7% and 0.9% per year, respectively), while also outpacing national GDP growth by about a tenth. Today, the city and its surrounding region of Tanger-Tétouan is a booming commercial gateway and manufacturing hub, with one of Africa’s largest seaports and automotive factories, producing some 400,000 vehicles per year (with Moroccan-made content at approximately 35-40%, and a target to increase that share to 60% in the next few years). The metropolitan area now boasts multiple free trade zones and industrial parks, while also thriving as a tourist destination. As in our previous city case studies, we wanted to know what (and who) drove this transformation, and how exactly it was achieved.

Tourism ecosystems: A way to think about challenges and solutions to tourism development

Shaun Mann's picture

Ecosystem: A complex of living organisms, their physical environment, and all their interrelationships in a particular unit of space.
Tourism: A social, cultural and economic phenomenon that entails the movement of people to countries or places outside their usual environment for personal, business or professional purposes.

I was part of a tourism ecosystem, once, when I built and operated a small lodge on the banks of the Nile in Uganda. While I was living in a tent in the bush building the lodge, life was simple: My little ecosystem was the land around the lodge and the tribulations of fending off monkeys and snakes by day and leopards, hippos, elephants and mosquitoes at night. The sun and rain beat down hard, and tools and workers broke down regularly. The generator was a particular pain in the neck.

Apart from supplies coming in, I was not really connected to the outside world. Money ran out for awhile and I had to rush to Kampala and persuade the bank give me a bigger overdraft (at 26 percent interest – thieves!).
Once the lodge was finished, I had to join another ecosystem: the world of registering the company, getting licenses, drawing up employment contracts, getting a bank overdraft, getting a tax ID number – all the elements of the enabling environment for me to do business. Then I had to join another one: I needed bums on beds, and I had to link my wonderful product to local markets; I had to develop promotional materials and packages; I had to interact and contract with tour operators and local travel agents to supply me business; I needed market access. 

Nile Safari Camp: home for two years

Then, guess what? My business plan wasn’t panning out. I didn’t get the occupancies or the rates that I projected from the local market. I had to step into yet another ecosystem: the world of international long-haul travel. I needed more and better-paying customers. I had to understand how the big international tour operators sold their product, what they were looking for in new product and how they contracted. I had to join another ecosystem to make that happen. Turns out my little product wasn’t enough to attract international customers on its own, I had to team up with other lodges and offer a fuller package; we had to cluster our products. I had to diversify and innovate and find ways to add value to my accommodation offer – birdwatching, fishing, guided walks, weddings and honeymoons, meetings and workshops. . . . Well, there are whole ecosystems around each of those market segments. You need to understand them before you can do business with them.        

Clearing the air: the 5 most common questions about national park PPPs

Warren Meyer's picture
Big Pine Creek Recreation Area, Inyo National Forest, California. Photo:

If the thought of summer conjures up visions of national parks, you’re not alone – in 2014, nearly 3 million tourists visited forests, mountains, trails, and rivers at U.S. national parks.

If you crossed the gate into one of these treasures, you probably didn’t care whether that particular forest or mountain fell under government or private ownership. But it’s worth noting, because national park concessions fill a vital role helping the National Park Service carry out its mission, and there are benefits to these partnerships that can keep the parks viable — and the visitors happy — for decades to come. 

There are also misconceptions about national park PPPs. To clear the air, I’ve answered some of the most common questions below.

Where will the footprints be when there is no more sand? Coastal erosion and the future of Senegal

Matthias Cinyabuguma's picture

Where will the footprints be when there is no more sand?  Coastal erosion and the future of Senegal

Rocky shores that hardly measure more than several meters at high tide are all that are left of some of Senegal’s most highly prized beaches at the seaside resort Saly. With every year that passes, the Atlantic ocean inches closer, much to the dismay of locals and tourists alike.
25% of the Senegalese coast is at high risk for coastal erosion, and it is estimated that this figure will increase to 75% by 2080 if sea levels continue to rise. A victim of climate change, Senegal tourism has taken a hit despite being one of the key focus areas of the Plan Sénégal Émergent, the country’s long-term growth and development strategy.

​Environmental conservation, tourism and economic development: an avant-garde Brazilian solution through PPPs

Maria Emília Barbosa Bitar's picture
Note: This blog entry was adapted from an original submission for the PPIAF Short Story Contest. It is part of a series highlighting the role of Public-Private Partnerships (PPPs) in projects and other transformative work around the world.

For the most part, protected areas in Brazil are managed by the public sector. As a result, like other countries, these areas face conservation difficulties, including a lack of resources for maintenance and other initiatives.
Gruta de Maquiné, part of the Peter Lund 
Cave Route. Photo: Francisco Martins/flickr

Because of this lack of public-sector financial and human resources, the private sector has provided a significant portion of funding for managing protected areas. One of these cases is in Brazil’s Minas Gerais State. The Secretary of State for Environment and Sustainable Development (SEMAD), Forest State Institute (IEF) and Public-Private Partnership Central Unit collaborated to develop a PPP model focused on management, conservation and operation of three protected areas, located in the State’s Karst region: PPP Peter Lund Cave Route.

The PPP Peter Lund Cave Route aims to structure a single, singular national and international tourist track, aligning the unique natural and cultural elements of the karst region. This new management model is demonstrating results for conservation and sustainable development, including the mobilization of public policies that value one of Brazil’s greatest characteristics: biodiversity.

Financing community-based tourism: 9 ways to get taken seriously

Hermione Nevill's picture

Reducing risk is the only way for community joint-ventures to get serious with commercial banks. Without commercial finance, this niche tourism sector might never deliver on its potential. Photo: World Wildlife Fund
Over the last 20 years, joint-ventures between local communities and the private sector have grown up as a feature of the sustainable tourism development agenda. Typically, the community provides the land, the heritage or the wildlife asset base while the private sector brings the capital, management know-how and business networks. When they work well, these partnerships contribute substantially to local economic and social development, as well as providing professional, unique and authentic tourism experiences for visitors.
Lena Florry is an Area Manager for Wilderness Safaris, the private-sector partner in a community joint venture (CJV) lodge in Namibia. ”What we have here at Damaraland really changes our lives,” she says. “Previously, in our village, I was herding goats. Now we have good jobs and a much better life.” Crucially, Lena is also a member of the local community and takes personal pleasure in sharing the model’s success story with the camp’s US$500-a-night paying guests.
Typical benefits include income for communities through lease or contract agreements, employment and supply-chain opportunities, skills and knowledge transfer from the private sector, and usually a kind of joint “tourism asset protection” like wildlife preservation or heritage protection. In Namibia, for example, community conservation generated about US$7 million in returns for local communities in 2013, and the elephant population doubled in 20 years.
While much emphasis has been placed on the development impacts of this model, the actual health of the businesses has often been overlooked. As long as the ventures continue to deliver a development dividend – such as contributions to a community fund, or increased biodiversity – all is believed well. For the venture’s supporters, it may then come as a surprise when applications for commercial finance are rejected.
“We would like to finance the sector,” says Christo Viljoen at First National Bank (FNB) Namibia. “But our biggest challenge is to determine the financial viability of the community joint-ventures. We find the risks involved are not properly addressed in the business plans.”
Banks report that risks typically have to do with corporate governance, low-quality financial data, collateral, the level of experience of the sponsor, and a host of structural problems in the CJV business – not least, the balance between the development dividend versus the profitability of the business. All these factors help to undermine a firm’s viability. A business that cannot demonstrate financial viability – and, thus, show how it will pay back a loan – cannot be financed.
This presents a very real problem.  Without the means to make necessary investments in the business (such as refurbishment or expansion), the quality of the tourism product deteriorates, occupancies and rates decline, and funds for the community and for wildlife protection drop.
In an effort to help the various stakeholders increase the financial viability of CJVs, reduce risk and increase loans, the World Bank Group and the World Wildlife Fund released “nine tips” at the recent tourism trade show ITB Berlin 2015. Dr. Hannah Messerli of the World Bank’s Trade and Competitiveness Global Practice said, “We believe that destinations that address these issues are more likely to provide comfort to the banks in lending.”

Look who's talking about PPPs

Alison Buckholtz's picture
Long-term infrastructure planning. Service delivery even beyond the “end of the line.” E-government outreach that includes everyone. As these and other benefits of public-private partnerships (PPPs) reach more people, a deeper understanding of PPP strategies is entering the mainstream. 

Examples of this organic knowledge-sharing, born of individuals’ first-hand positive experiences with PPPs, can be found among thought leaders across a range of fields. Editors of Handshake, the World Bank Group’s PPP journal, have interviewed many of these experts about their experience with PPPs and have compiled some of their perspectives here.
Edward Glaeser, urban economist and Professor of Economics, Harvard University (Cities issue, p. 30, “Triumph of the PPP”), on the need for oversight of PPPs: “There is a lot to be gained in the marriage of public and private, but there are also enormous risks. There are cases where either the government has mistreated the private partner, or companies have figured out a way to mistreat the government. PPPs always require firm oversight. They are enormously valuable as a way to solve a financing problem, and the people who are fighting to solve this problem are doing one of the most important jobs in the world.”

Francesco Bandarin, UNESCO’s Assistant Director-General for Culture (Tourism issue, p. 26), on PPPs as a solution for World Heritage Sites: “Over the past 10 years we’ve had an increased level of attention to World Heritage Sites, and there’s been a subsequent expansion in the number of sites as a result. When you have an expansion of your core business the first question you ask yourself is 'How do I keep delivering the same quality of services?' For us, this includes monitoring services, support to member states, tracking and responding to trends, and trying to use tourism as a resources instead of just a force of destruction. We want to deal with tourism in a way that’s constructive. PPPs can help us do that.”

The benefits of e-Visas, and how to overcome implementation challenges

Radu Cucos's picture
The Electronic Visa (e-Visa) has emerged as one of the most innovative services implemented in the area of freedom of movement and people-to-people contacts.

E-Visa allows the management of the visa application process to take place entirely in a virtual environment. Everything is done with the help of the Internet: the visa application and supporting documents are submitted online, the payment is made online and the decision on the application is communicated online. Some of the best examples of e-Visa services I have encountered are implemented by the authorities of Australia, Turkey, New Zealand and Georgia.
Serving as Chief Information Officer at the Moldovan Foreign Service, I had the opportunity to lead the development of the Moldova e-Visa Service in partnership with the World Bank’s eTransformation project.

The Moldovan e-Visa service was launched on August 1, 2014. So far, we can make the following observations and conclusions about the benefits of e-Visa: