Morocco extends financial aid to quake-affected tourism companies

The devastating 8 September Al-Haouz earthquake was a severe blow to Morocco's tourism sector, which was still trying to recover from the coronavirus pandemic. For this reason, the Kingdom's Ministry of Tourism has announced the launch of a digital platform aimed at providing financial support to businesses in the industry, one of the most important in the country, affected by the brutal earthquake.

This initiative is part of Rabat's ambitious plans to rebuild the country after the earthquake. This platform, in particular, allows tourism businesses to submit applications for financial support. To date, 667 applications from Moroccan companies have been assessed.

Financial support can reach up to 2 million DH ($197,000) for companies most affected by the earthquake and 500,000 DH ($49,000) for companies with minor damage, Morocco World News reports.

Shortly after the earthquake that killed nearly 2,900 people, King Mohammed VI announced that the country would invest $11.7 billion over five years to rebuild the six provinces most affected by the quake. This investment is also intended to cover projects aimed at boosting socio-economic development in these regions.

Approximately 30% of these funds are dedicated to immediate relief efforts, including emergency relief, housing reconstruction, infrastructure repairs and restoration of health and education facilities that were affected by the earthquake.  

It is estimated that more than 2,900 villages need to be rebuilt, while 2.8 million affected people need to be assisted.

Funding for the reconstruction plan is based on a combination of government budget spending and a contribution of 2 billion dirhams ($195 million) from the Hassan II State Fund for Economic and Social Development.

In addition, to support the financing of the plan, Rabat has established a fund that collects donations from local citizens and businesses. As of September, the fund had raised more than 10 billion dirhams or more than $900 million. 

In this regard, international aid and remittances could also be used for reconstruction and to support the country's external financial stability, as noted by the rating agency Fitch.

In a recent report, Fitch also notes that the impact of the earthquake on Morocco's economic sector will lead to increased public spending, higher fiscal deficits and higher debt in the short term.