Morocco’s Car Rental Industry Struggles Despite Tourism Rebound

The recovery of tourism activity in Morocco, which welcomed 10 million visitors at the end of July, had positive effects on the car rental sector, which was severely affected by the Covid-19 crisis. But the expectations of professionals in the sector do not seem to be met. Contrary to tourism, which is regaining its colors, the recovery of car rental activity remains timid, analyzes the magazine Finances News Hebdo.

"The summer season has exceeded a little the level of last year, but less than expected. The beginning of the year was timid and the month of July was in the doldrums. Domestic tourism has been disrupted, as the school year has been delayed and, consequently, the holidays as well. Moroccans living abroad have opted for the car to return to the country, as air travel was too expensive. As a result, the demand for car rentals has not evolved much," explains Tarik Dbilij, president of the Federation of Car Rental Companies without Drivers in Morocco (FLASCAM), quoted by the weekly.

The sector remains marked by an increase in supply and significant vehicle purchases. "In 2023, we bought 48,000 vehicles compared to 37,000 in 2019, which is the reference year, i.e. more than 11,000 additional units. Last year, our sector had achieved 37% of the total volume of the automotive market. During the first half of 2024, it reached more than half of automotive purchases," details the manager.

The sector is also affected by the informal sector, which is gaining ground. A phenomenon that is more noticeable at airports during the summer season. Illegal activity in the sector creates damage to professionals in order who face unfair competition and exposes populations and tourists to security risks. It also harms the image of the kingdom.