- Average prices and margins continuously falling, despite double-digit growth
- Objectives far from the destinations that the city challenges
- The deteriorating environment and urban upgrading contribute to this
A sign of the evolution of tourism, the double-digit growth of Marrakech does not reduce the sector’s problems and Marrakech has not managed to come out on top. According to professionals, there is nothing to be euphoric about. First, this “false growth” is barely making up for the losses of 2011. And in their eyes, overnight stays and arrivals are far from reflecting the key indicators of a tourist destination. The evolution of the sector means that today, it is the volume of tourism income that takes precedence, as the World Tourism Organization points out. Its executive director, Frédéric Pierret, also recommends a review of public tourism policies which should outline strategies based on this development. In Marrakech, a barometer of tourist activity in Morocco, and despite the growth shown, the added value of tourism is almost crushed. On the ground, this translates into margins, the sinews of war, which have been declining consecutively for 6 years. “We have very little room for maneuver in terms of prices and no one talks about it,” recognizes a local professional during the survey carried out by the editorial staff among Marrakech hoteliers. “Profit margins in the hotel industry have deteriorated, losing 10 to 15 points compared to costs such as energy and salaries which have grown by double digits,” he continues. Revenues have shown a decline of 2% for more than two years and this observation is not reported anywhere and even less in the regional program contract of Marrakech Atlantique. And to stop this erosion and raise prices, it will take more than two years of recovery with political support to increase the attractiveness of the destination, estimate the most optimistic professionals. To do this, it will first be necessary to work on urban upgrading which remains one of the most important factors in determining the prices of hotel services. And at this level, the 2020 vision and the regional program contract remain very modest. Elsewhere, national and local authorities are aware of the economic impact and are becoming major players in the sector by investing directly in the development of structuring equipment. This is not the case in Marrakech. And as long as this awareness is lacking, it will be difficult to compete in the big leagues where hotel prices, all categories combined, are more determined by the location and the environment around the establishments. It is this involvement of local and national authorities that the private sector in Marrakech is seeking, with a real priority for tourism. However, the draft 2014 finance law was not favorable for tourism and confirms that the sector is unfortunately no longer one of the government’s priorities, regrets Fouzi Zemrani, tour operator and former president of the federation of travel agencies. Marrakchi professionals deplore this just as they deplore the last minute solutions and the new air tax brandished as a magic solution for the promotion of tourism. This new imposition also raises major questions. First of all, on its merits. “It’s a risk that the destination Morocco is taking by adding a tax in a very feverish situation,” said another professional. And the TOs, which represent 30 to 40% of the volume of Marrakech and who have made efforts to maintain programming there, are already starting to react. Some TOs are just asking to postpone the entry into force of this tax scheduled for April 2014, because they have already launched the publication of the brochures. Other tour operators have more virulent criticism and openly refuse this tax. They already estimate their margins to be very small, given the evolution of tourism. Finally, the low-cost airlines which operate in Marrakech are also showing their reservations and are waiting to see the implementation of this new taxation before reacting officially. Aware and very sensitive to the Moroccan economic context, professionals in the tourism-loving city, although they are not entirely against it, remain doubtful regarding the implementation of this tax (see box).
A real reform of tourist taxes This is what tourism professionals hope for. Those in Marrakech still hold out hope for a real reform of all taxes (TPT, municipal tourist tax and air tax) by 2015 to fully benefit tourism. As a reminder, the private sector was the first to sound the alarm in 2004 on the means to be made available for promotion and had even made proposals. At the time, the FNT had suggested taking the TPT (tourist promotion tax) out of the hotel perimeter and moving it to international transport tickets in order to recover it in a different way with an additional improvement. This option was not retained and, today, the sector must undergo a new tax.
theconomist
