Morocco’s Hotel Industry in Crisis: COVID-19 Cancellations Prompt Urgent Call for Government Aid

The entire hotel and events sector has been slowing down since the appearance of Covid-19, notes l’Observateur, mentioning that the Hyatt Regency, which usually hosts major economic and cultural events, is going through difficult times. Accommodation, catering and events are all experiencing a drastic drop in activity. According to the hotel’s commercial and marketing director, Sophie Leroy, the latter activity accounts for nearly 50% of its turnover.

The situation is no different for the Barceló group, whose activity, in Morocco as well as internationally, is hitting rock bottom, according to one of its managers. All the group’s establishments are closed. The Risma group, operating in 12 cities of the Kingdom, found itself with a turnover of 327 million dirhams as of June 30, 2020, a 53% drop compared to June 30, 2019, according to its financial indicators for the first half of the year, recently published.

The hotel occupancy rate of the group’s hotels has halved over the same period (from 67% to 37%) and Risma’s net income (RNPG) shows a loss of 69 million dirhams, compared to a positive RNPG of 65 million dirhams the previous year, the same source points out.

On the verge of despair, Sophie Leroy urges the public authorities to launch the resumption of event activity. The same call comes from the representative of the Barceló brand, for whom the only solution remains the opening of borders. And the president of the National Federation of the Hotel Industry (FNIH), Lahcen Zelmat, hammers that the opening and easing of inter-city travel measures remain the only prospects for reviving the sector.