Morocco’s Car Rental Industry Faces Crisis Amid Oversaturation and New Regulations

"Several rental agencies were created shortly before the release of the new specifications book on April 15, 2024. In 2023 alone, some 1,800 car rental companies were created," says Tarik Dbilij, president of the Federation of Car Rental Companies without Drivers in Morocco (FLASCAM), quoted by Les Inspirations Eco. Last year, car rental companies acquired 48,000 vehicles compared to 37,000 in 2019, the reference year. "Thus, the Moroccan market now has no less than 11,600 car rental companies and 160,000 rental vehicles. This supply exceeds current demand."

"Today, we do not feel and do not foresee any recovery," adds the official, who explains this situation by the "gap" in the summer season due to the end-of-year exams of students scheduled for mid-July, and the delay in the arrival of French tourists due to the organization of early legislative elections in their country, the second round of which will take place on July 7. Fouad Meliani, president of the National Employers’ Union of Car Rental Companies (SPNL), shares the same opinion. According to him, it will be necessary to wait until mid-July to note an influx of tourists. "The summer is starting slowly. There was indeed a peak, thanks to the Eid Al Kébir period, but there was a drop just after," he explains.

The two professionals hope for a recovery in August in the cities of Marrakech, Tangier, Casablanca and Agadir, which welcome many visitors. They also believe that the new specifications book will do more harm than good to the sector. "We thought that after two years of consultation with the supervisory ministry, our recommendations would be taken into account, but the ministry seems to be adhering to this hemorrhage of creation. We respect this opinion, but we do not think it will be beneficial for the sector," said Tarik Dbilij. Professionals are also facing rising prices for new cars.