Marrakech had a tough year in 2015 with falls in both occupancy and ADR, resulting in a fall in RevPAR of 21%. France remains a key market for the country as a whole so the increased terrorism in France and general nervousness surrounding North Africa, meant many tourist chose not to travel to the country.
Morocco presents a mixed picture for 2016. Holiday makers are coming back to Marrakech but the political push leads to economic nervousness and uncertainty. Marrakech should see a drop of occupancy owing to the amount of supply entering the market at a bad time for tourism. Luckily, the introduction of new branded four-star hotels may boost the average rates up and the security situation should encourage the clients to stay in the hotels extensively and thus increase F&B facilities revenue. This will trigger an increase of 10.3% in values in Moroccan Dirham. However, due to the currency devaluation following the economic uncertainty in the country, the values per room should drop by 7.6% in US dollars terms.