Morocco Tourism: Is This A Recovery Year?

: NEWS; 01/25/13

The economic downturn in Europe and instability in Mali and Algeria are all contributing to the tourism sector's slow recovery in Morocco. While there are some promising developments such as the Ryanair decision to use Marrakech and Fez as bases for their aircraft, there is still a touch of gloom in the tourist industry. Tourism experts say that concentrating on airline services and introducing medical tourism may be the key to a brighter future.

"We are getting only three or four bookings a week which is just enough to keep our head above water,' one riad owner told reporter. "Hopefully the lull since New year will see a pick-up in March and April."

The situation in Fez is patchy, with some riad owners reporting good numbers of guests with a surprising number of visitors from South American nations such as Argentine, Mexico and Brazil. Those operators who concentrate on the North American and British markets are seemingly those experiencing the worst of the slowdown.

The decline in visitor numbers has caused a number of accommodation businesses to shift their focus and lower their rates to encourage domestic tourism. "As far as we're concerned, we've revised our room rates and also diversified our offer to Moroccan families," one Marrakech hotel manager explained. "We've also improved our internet communications, with a new platform providing information and online booking facilities."

Last year, journalist Rajae El Oufairi was accurate in suggesting that focussing on national tourists, with attractive offers, would be a solution for the sector under current market conditions. "In Morocco today there is a real emergent middle class,and the problem is the absence of tourist offers to match the expectations of the Moroccan middle class.

However, at street level, traders say that business is quiet. Street restaurants and small business owners are generally confident that things will pick up. "It is always quiet in winter,' hanout (small shop) owner Yousef says. "We don't get a lot of business from tourists anyway. They tend to take pictures and move on. But when there are a lot of tourists the guest houses spend more in the souq."

Writing in the online journal Magharebia, Hassan Benmehdi reports that although Morocco is hoping 2013 will be a year of economic recovery for the tourism sector, experts are cautioning the rebound will not be as easy as once thought.

"Tourism in Morocco is crucial to the country's economy, as it represents about 7.1% of the gross domestic product," financial analyst Moussa El Mouritani explained. "The European market represents over 50% of the tourism in Morocco; however that market is still unstable and the economy is having a hard time getting back to its normal pace and normal progression."

Moroccan Tourism Minister Lahcen Haddad has pointed out that efforts have been made on many levels to find ways to minimise the impact of the weak economy, particularly in Europe. Haddad said that the Moroccan government plans to develop and finalise pragmatic methods that would allow several projects to come to life. That would require raising a total of 38 billion dirhams for developing 36,000 additional beds and eventually lead to the creation of over 10,000 jobs.

The point, Haddad said, was to invest with people involved in important projects such as the convention centre and the amusement park in Marrakech, the Tama Ouanza resort in Agadir as well as the myriad of resorts in Fez and the Biladi clubs in Martil and Benslimane.

Also on the 2013 agenda, the introduction of medical tourism and sustainable tourism classes.

Tour operators are dissatisfied and feel that the field "is not living up to expectations". For Abdelali Mouktadir, who works in sales at a Marrakech hotel resort, the bad economy makes them less competitive. Another Marrakech hotel operator said that the government should focus efforts mainly in the aviation sector and should work harder on making Morocco a tourist destination. The country's potential is not being correctly showcased, Casablanca restaurant manager Driss Belloufi said.

The National Tourism Federation (FNT) wants to reinforce logistics so that the country's vision for domestic tourism gets some kind of support. The tourism minister also looks to further reinforce training through the establishment of several partnerships with various international institutes. He also asked field professionals to help out and determine their exact needs in terms of expertise and human resources.

On a financial level, Industry and Trade Minister Abdelkader Amara noted that tourism related investments come mainly from domestic sources (64%), while only 36% come from abroad, primarily the US and Saudi Arabia. "Next year we will have investments in the area of 20 to 30 billion dirhams," he said. According to the latest data of the High Commission for Planning (HCP), tourism represents more than 7 per cent of the gross domestic product and is one of the top five job generating fields in Morocco.

Article Previously published by View From Fez

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Comments (9)

+2 #1 Agadir — 3o3o 2013-01-26 15:42

2013 forecast has predicted a .1% growth for EU, luxury travel should be the focus with respect to EU since this class is recession proof. Having said that, Our ministry/privat e sector should target the Americas, Asia, and Africa in order to diversify and capitalize on the economic growth that these countries are experiencing. I am in the industry and I have experienced major set backs as of the past two years. I would also like to mention that banks are providing limited help to projects that want to expand, also land owners are experiencing building-permit delays. Anyone is experiencing otherwise?

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0 #2 RE: Morocco Tourism: Is This A Recovery Year? — Aminos 2013-01-28 06:26

Hello Agadir, I think Morocco has a cool vibe going on in the US right now. It is pretty much everywhere. Beauty salons selling argan oil like hot cakes, Chain furniture stores selling moroccan furniture, grocery stores selling moroccan recipes and packaged meals, moroccan mint tea, etc All these products are being sold by foreign companies using moroccan concepts or moroccan goods. However, when you ask people where Morocco is, very few people really know the answer.

Not sure how, but morocco desperately needs some foreign media exposure.

I think the other problem for visitors from US, the routes to Morocco are really long and expensive. Casablanca with the only direct flight unfortunately is not a tourist city. So routes needs to be created directly to the exotic cities such as fez, marrakech and Agadir. Hopefully, morocco will allow more foreign airlines to fly directly from US, etc

The potential is there for sure. Morocco is the most beautiful country in the world.

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+1 #3 traveller — becky 2013-01-29 17:14

Hello Agadir & Aminos: I am curious on the local feeling about the current security issues throughout Africa - specifically Mali, Tunisia and Algeria - all neighboring countries to Morocco. How is this affecting tourism in in Morocco in general, and Tangier specifically? My family and I have reservations there in March. We are very excited about going to Morocco, but I remain highly concerned that it's just a matter of time before the political violence in the region spreads to Morocco, as it is surrounded by countries under travel warning by the US State Department. I would greatly a local opinion, and looking to hearing back from one or both of you. Peace.

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+1 #4 Agadir — 3o3o 2013-01-30 00:38

Hi Becky,
Travel and Hospitality reps 7% of our national GDP so the gov ensures that both investors and end users are safe. In addition to that, foreign direct investment in the travel sector has been trending up. If it makes you feel any better Google up the heads of states & celebs that spent the new year's eve in Morocco

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+1 #5 To Becky — Yet Another Moroccan 2013-01-30 02:37

I wouldn't worry too much about your traveling plans. Morocco is very safe. Remember, in the 90's, there 100,000's who died in the Algerian civil war and nothing had spilled over.
Furthermore, Tangier is the furthest point in North Africa to Mail :)

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+1 #6 Mr.Bimo — Bimo 2013-01-30 20:54

Tourism will be fine when RAM stops overcharging for plane tickets!!!!!!!! !!!!!!!!!!!!!!! !!!!!!!!!!!!!!! !!!!!!!!!!!!

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+1 #7 RE: Morocco Tourism: Is This A Recovery Year? — Aminos 2013-02-06 09:24

Hello Agadir, What do you think of the new project of Hyatt? Also, what do you think about investing in Real Estate in the taghazout area?

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0 #8 RE: Morocco Tourism: Is This A Recovery Year? — 3o3o 2013-02-07 21:24

Moroccan banks had highly leveraged assets in real estate biz before the boom and bust of 2008 so now they are sorta wary. I am a small time entrepreneur; however, ripple effects are being felt by everyone. They are being very selective with respect to potential borrowers. Here is an article from Bloomberg that breaks down the situation, including Hyatt Place. Are you an investor?
bloomberg.com/.../...

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0 #9 RE: Morocco Tourism: Is This A Recovery Year? — Aminos 2013-02-25 12:02

I really love the Agadir region and especially Taghazout. It is one of my favorite spots in Morocco. Is there a concern when Buying Real Estate in taghazout as far as clear title of ownership etc?

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