Morocco’s Tourism Boom Drives Surge in Car Rental Demand

2024 was the year of all successes for Moroccan tourism. This revival of tourism activities has benefited related sectors such as catering, leisure, transportation and, of course, car rental, reports the magazine Finances News Hebdo. "2024 started rather timidly, but the situation improved significantly after Ramadan, before accelerating during the summer period and the following months. This upswing has affected practically all regions of the Kingdom, and more particularly the tourist cities. Our achievements have exceeded those of 2019 (reference year)," says Tarik Dbilij, president of the Federation of Car Rental Companies without Drivers in Morocco (FLASCAM).

Good prospects are announced for the sector in 2025. Tarik Dbilij is optimistic: "The sector should evolve in 2025 on the same upward trend as last year. Purchases should continue, allowing the fleet to be renewed and the offer to be strengthened. During this year, many events will be organized. Morocco has strengthened its position as a reference destination internationally. Air services have multiplied and the Ministry of Tourism and the Moroccan National Tourist Office (ONMT) are continuing their country promotion programs. The demand for car rental is increasing from both foreign and domestic tourists. It has become an increasingly sought-after practice by Moroccans due to the benefits it offers".

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In order to meet this demand, the rental companies bought more than 52,000 cars in 2024, achieving a growth of 13% compared to 2023. These purchases represented 35% of total automotive sales, with a predominance of Dacia and Renault brands, accounting for 62% of acquisitions. Rental companies not only supply the new car market, but also play a key role in the used vehicle (VO) segment. "Rental companies are very active in the VO market. We work closely with distributors, most of whom have created dedicated subsidiaries, We have an alliance with M. Automotive, which has helped boost the sector," says Dbilij. And he explains: "With the buyback formulas, the operations are fluid, safe and take place in complete tranquility. They also allow us to avoid intermediaries and other vehicle dealers who operate mostly in the informal sector. We ensure that the vehicles offered are maintained according to the manufacturer’s standards. This will help to upgrade the VO market and reduce informality in the activity".

Despite the existence of a legislative framework, the car rental sector faces unfair competition from the informal sector. "With the growth of the tourism sector, the informal sector has grown. Many clandestine operators have emerged in all tourist cities. They do not meet the specifications imposed by the authorities, setting various regulatory conditions to be able to operate, in particular the status concerning the company, its manager and the vehicles to be rented," Dbilij further explains.