Morocco boosts hotel investment to boost tourism

Expectations for foreign investment growth in the Moroccan hotel sector continue to rise during 2024, with clear signs that the country is starting to meet its targets. According to recent statistics, investments in Morocco's hotel sector increased by 7% in the first half of the year, reaching 409 million dollars.

The Moroccan government actively supports the tourism industry through various programmes which, according to official data, generate approximately 2.5 million jobs and bring in 10.5 billion dollars in foreign exchange. The country presents itself as a politically and socially stable destination compared to other nations in the region, and relies heavily on tourism as one of its main sources of foreign exchange, along with exports, industry and direct investment.

As reported by Al Arab, in 2023, Morocco opened 135 new hotel units with a total investment of 780 million dollars. This figure is expected to increase in the coming years due to the growing need for new facilities, especially after the country won the bid to host the 2030 World Cup. According to the Ministry of Tourism, Morocco currently has 4,742 classified hotel establishments, of which 471 were opened in the last four years, representing an 8 per cent increase, double that of the previous period. 

Despite the challenges of the pandemic, the number of classified hotel rooms in Morocco experienced a significant increase from 64,400 in 2012 to 121,000 in 2022. Currently, more than 150 hotel brands operate in the market, second only to South Africa with approximately 430 brands and Egypt with 300. It is estimated that the market needs between 20,000 and 30,000 new rooms to meet growing tourism demand.

Al-Zubair Bouhout, a former head of a regional tourism board, believes that "the figure achieved in investments in the first half of 2024 is positive, but insufficient". In an interview with Bloomberg Asharq, Bouhout said government programmes such as the Investment Charter, Go Tourism and Cap Hospitality will help increase investment in the sector by double digits by the end of this year.

In the first half of this year, Morocco received 7.4 million tourists, an increase of 14% compared to the previous year. The number of visitors reached a record 14.5 million last year. Bouhout stresses the need for a significant increase in investment in the sector of at least 15% this year, since, in order to expand air routes, promote Morocco as a tourist destination and attract 26 million foreign tourists by the end of the decade, it is imperative to strengthen the hotel offer.

In addition to expanding the hotel offer, the government is seeking to develop the entertainment sector. Earlier this year, the Go Tourism programme was launched to encourage the establishment and development of 1,700 tourism businesses with expected investments of 70 million dollars. Recently, the government also announced its intention to support the renovation of 25,000 hotel rooms through the Cap Hospitality programme, for which it has earmarked 400 million dollars.

Imad Barqad, CEO of the Moroccan Government Tourism Engineering Company, stresses that this programme will provide impetus and incentives for hotels, regardless of their classification, to renovate their rooms. The government programme will provide loans to tourist accommodation companies planning to refurbish their facilities, with the state covering the full interest. These funds are expected to cover investments ranging from 290,000 to 10 million dollars (3 to 100 million UAE dirhams), with a repayment period of up to 12 years.

The main objective is for the hotels to be ready for events to be held in Morocco, such as the 2025 Africa Cup of Nations and the 2030 World Cup, and to be able to offer a unique experience to tourists. Barqad stresses that hotels are one of the most important points that tourists focus on to express their experience and decide to repeat their visit to the country. Morocco is aiming to attract some 17.5 million tourists by 2026, especially as it prepares to host major sporting events and international conferences.

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Recent reports reveal that major Spanish hotel groups are strengthening their presence in Morocco to take advantage of the country's record-breaking tourism boom in 2023. Barceló, RIU, Iberostar and Meliá, which already own 18 hotel establishments in the Moroccan market, are considering expanding their activities to take advantage of Morocco's tourism growth. Spanish group Hotusa also plans to build three new hotels in Morocco by 2026. The first of these hotels is expected to open in the new centre of Casablanca under the name Eurostars Casa Anfa next autumn. The other two units, Eurostars California and X-Zarqtoni, will open between the end of this year and the middle of next year.

These three hotels, consisting of 251 rooms, will significantly enhance the tourism offer in the region, considered one of the best locations for visitors, especially foreigners. In addition, US giant Radisson Group is preparing to expand its tourism investments in Morocco, aiming to operate 25 hotels by 2030.