SAFEA PPP for Life

Morocco Travelling

TRAVEL VISA AND INSURANCE

MOROCCO - A PPP for Life

First Fact - Morocco is a world renowned destination with more than 10 million arrivals per year, still most of their infrastructure relating to tourism are not fully developed

Second Fact - Morocco is as any other African Country in need of foreign currency to be able to maximise their balance trade with other countries.

Third Fact - Morocco has been highlighted as a tourism destination which travellers are recommended to purchase travel insurance when visiting.

This recommended public private partnership is intended to support Morocco and their government to create the needed infrastructure, increase its foreign currency and preempt the travel insurance needs for visitors to Morocco.

We will discuss in more detail this PPP for live but before we get into the details lets learn more about what are public private partnerships its concerns and benefits and how will this developing financial model can support the creation of sustainable growth for Morocco.

“TRAVEL INSURANCE POLICY TO COVER THEFT,

LOSS AND, IN PARTICULAR, MEDICAL

PROBLEMS IS STRONGLY RECOMMENDED FOR ALL VISITORS TO MOROCCO”

LONELY PLANET, ESSENTIAL INFORMATION, MOROCCO

PPP

Public-Private Partnerships have attracted much attention in recent years as possible means to handle large and costly projects, such as the construction of new infrastructure. The overall goal of PPP projects is to find solutions to problems in which the advantages of the private sector (such as financial assets, efficient management, propensity to innovative and entrepreneurship) are combined with the advantages of the public sector (such as social and environmental concern). To be economically sensible.

A PPP project should generate a combination of allocative efficiency and productive efficiency that is superior to an entirely public or entirely private project.

PPP IS NOT PRIVATIZATION, GOVERNMENT STILL OWNS THE

UTILITIES AND FACILITIES BUT IT RECOGNISES THE PRIVATE

SECTOR AS A PARTNER IN DEVELOPMENT, MAXIMISING

RESOURCES AND EFFICIENCIES

PPP

Advantages

PPP presents numerous advantages both for the public partner and the private partner. The private partner is likely to get access to new sectors and achieve more business activity, enjoy better margins and get more long-term revenues.

The advantages for the public partner may be summarised into the following arguments, improved service quality, lower project costs, risk sharing, earlier and faster construction, and better budget fulfilment.

OPENNESS AND MORE INFORMATION MAY INCREASE

THE PERCEPTION OF THE PPP’S IN THE MINDS OF CITIZENS

AND DECISION MAKERS, BUILD TRUST AND EDUCATION WILL

CHANGE MINDS

PPP

Concerns PPP projects are typically complicated projects. One major reason for this is the fact that the projects generally have to deal with long-term investments that are divided into two phases – the construction phase and the operational/maintenance phase – being very different in character and implying different demands.

Disadvantages are generally fewer but are important to consider in order to reducing the risks of running into problems that are avoidable. We can broadly identify three types of problems. The first depends on the fact that the state, during normal economic circumstances, can borrow money at a lower cost than private firms, and the second and third types of problems – hold-up and lock-in – arise because of the difficulties in writing complete contracts.

HOW TO ACHIEVE VALUE FOR MONEY DEFINED BY EFFECTIVE

USE OF PUBLIC SECTOR RESOURCES ON CAPITAL

PROJECTS HOWEVER LACK OF PUBLIC FUNDS IS THE PRIMARY

MOTIVATOR FOR PPP MODEL

A PPP for Life

MOROCCO TRAVEL VISA AND INSURANCE

TRAVEL VISA AND INSURANCE

MOROCCO - A PPP for Life

This PPP envisages to create a management system that will in short:

• Implement a visa on arrival system at all international airports in Morocco as well as changing the visa regulations for travellers into the country

• Implement a travel insurance model linked with the new visa on arrival regulations.

• Create a new yearly fund to contribute to nationwide development needs

• Increase efficiencies in the arrival and departure process in morocco

• Create the funds necessary for future Airport needs.

We will not provide extreme detailed information at this point in time due to model confidentiality but we are able to provide in the next page the potential financial impact of such a public private partnership may have in the tourism industry in Morocco.

This PPP will be formed by three parties:

• Government (Ministries of Transportation and Emigration)

• Insurance Company• Software Management Company

PPP

Potential Financial Impact• We assume 5 Million will need visa with the new regulation.• US$50 per Visa on arrival• Visa will include a basic travel insurance for Morocco• US$5 charity gift may be added by visitor for yearly specific project on interest to help with the poorer communities • Software Management Company to fund the systems• Insurance Company to setup the basic travel insurance• Government to provide the legislation and the sites for implementation• We assume 35% profit from the system - excluding the Charity gift which is fully paid out to charity yearly

JUST STRAIGHT CHARITY FUND WILL POTENTIAL CREATE

US$2.5 MILLION PER YEAR THAT WILL MAKE A HUGE IMPACT ON THE POORER POPULATIONS IN MOROCCO, BASED ON 10% OF TRAVELLERS CHARITY ACTION

A PPP for life

BENEFITS• Impressive foreign exchange intake to the country• Creation of wealth that can support further PPP’s for redevelopment and or refurbishment of Airports• Increase efficiencies in the legislative process for international visitors into Morocco• Increase efficiencies in the arrival process in the airports in Morocco• Help the poorer communities with straight funding to yearly relevant plans to combat the wealth gap.• Mitigating the need for Visitors to buy travel insurance in advance of visit and increasing the safe perception of the

country who takes care of their visitors always.• And much more ….

SAFEA PPP for Life

By Jose Ventura

References: Alexanderson, g.& S. Hulten (1998) Arlandanbanan Konferencerapport Benett, E., P. Grohman & B. Gentry (1999) Public-Private Partnerships for Urban Environment Options and Issues Lonely Planet Essential Travel Information Morocco (2015) WTTC annual travel information: (2014) Morocco Travel Statistics Valilla, T (2005) How expensive are cost savings? on the economics of Public Private Partnerships.

Further References include the mandatory reading f the provided by the Financing for Development Mooc from the World Bank at coursera.org

Copyright of Jose Ventura 2015

A PPP for Life