MOROCCO

While it’s true that Morocco is a fascinating mix of elements from both the Atlantic and the Mediterranean, the country has much more to reveal to tourism investors. Yann Assor, director and head of corporate finance at PWC Morocco, shares his market ins

Leading African tourism

Morocco is the frontrunner in the African tourism market, according to recent data released within the ‘Africa Tourism Monitor’, a report by The African Development Bank. Since 2014, the country has welcomed more tourists than both Egypt and South Africa. Despite the widespread conflicts and insecurity in neighboring countries, Morocco achieved its goal of 10 million tourists, edging the target to record a total of 10.28 million visitors in 2014. The number has risen slightly in the interim. According to the latest figures issued by the Moroccan Tourism Observatory, almost 11 million tourists came to the country in the first eight months of 2016 alone, led by French, Spanish and English visitors. Agadir, Marrakesh and Casablanca were the most popular destinations. Additionally, the country has over 5,500 hotels in various categories, including luxury properties, such as Royal Mansour and La Mamounia in Marrakesh, part of the Leading Hotels of the World chain, Hyatt Regency and Four Seasons in Casablanca. Morocco welcomed more tourists than any other country in Africa, followed by Egypt and South Africa. This outcome is the result of a decade of steady development under the framework of two successive sector development plans: Vision 2010 and Vision 2020. Despite an increasingly challenging regional environment, the sector has proved resilient, bolstered by domestic political stability. While recording a minor drop in tourist arrivals in 2015, the sector picked up again in 2016, driven by increased air connectivity, further diversification of source markets and a more specialized tourism supply. Morocco’s tourism sector is the second largest contributor to the economy, representing around 12 percent of GDP, and is also the second largest provider of jobs in the country.

Reasons to invest

Morocco is a tourist destination that has many strengths and clear potential, which has allowed it to become increasingly popular. With varied and contrasting landscapes and a rich cultural heritage, the country represents a diverse touristic experience. The government is offering several incentives in a bid to boost

investment in the country. These include: exemption of import duty preference for all capital equipment needed for the promotion and development of the project; and VAT exemption for capital goods, machinery and equipment acquired in Morocco for a period of 24 months from the date of commencement of business of the company. VAT is also exempt for import for a period of 36 months for capital goods, machinery and equipment acquired on importation. For investments that meet certain criteria, the investor may conclude with the State, an investment agreement granting implementation aid for the project. To remove the constraints on access to financial resources, Vision 2020 is considering the setting up of an instrument for national and international investment mobilization: the Moroccan Fund for Tourism Development (FMDT). Investment premiums will be implemented, taking account of the level of risk perceived by investors for each type of product and for each destination. To strengthen its commitment to supporting the implementation of Vision 2020, the banking sector has indicated its willingness to mobilize a budget of USD 2.4 billion. Aside from commercial banks responsible for financing the sector, funds for national investment have been created to support the dynamic development of tourist projects. These include: Actif Invest; Madaef; H Partners; capital T; and Saham Hotels.

Investment opportunities • Azur 2020 Program

To provide an internationally competitive range of seaside resorts for Morocco.

• Program Green/eco/sustainability

Valuation of natural resources and rural areas in respect of socio-cultural authenticity of host communities.

• Heritage and Legacy Program

Promotion of the Moroccan cultural identity through the structuring and valuation of tangible and intangible heritage of the kingdom, together with the construction of coherent and attractive tourist products.

• Animation Program, Sport & Leisure

Creating consistent animation offers, varied and complementary to the basic tourist infrastructure, in order to consolidate Moroccan tourism and make it more competitive and attractive to many tourists.

• Niche Program with high added-value (or business and welfare)

Strengthening the position of Morocco as a tourist destination for business, welfare and health.

• Biladi Program

Strengthening domestic tourism through a suitable product that takes account of habits and customs.

Why you shouldn’t miss out on Morocco

“Our resort became a true destination, reflecting cosmopolitan Morocco,” said Nordine Fakir, partner and general manager of Nikki Beach Marrakech, one of the first brand outlets to open in the MENA in 2004. It is, since its opening, frequented by a clientele looking for an international ambiance and experience. Marrakesh has undoubtedly evolved to become an international city and a true tourism icon. “Over the years, and thanks to forward-thinking tourism strategies, Morocco has successfully positioned itself as a genuine tourism destination, managing to attract international labels and brands,” Fakir said. He added that the country remains one of the safest in the region, a factor that has had a highly positive impact on arrivals and investors alike. Besides lodging and entertainment, the country is renowned for its upper-end gastronomy. “The country is ‘touristically’ loaded: It has year-round sun, close proximity to Europe, is full of culture and safe,” he said. New projects include the famous Raspoutine, which recently opened in Marrakesh, after launches in Paris and Rome, while another initiative - the VIP Room - is set to open soon.