Morocco’s Tourism Shift: Apartment Rentals Surge, Challenging Hotel Industry

While the new school year begins in three weeks and Moroccans residing abroad (MREs) are preparing to return to their host countries, hotels are struggling to take advantage of the last days of their summer vacations in the various tourist destinations of the kingdom. Hoteliers may make efforts to take advantage of the dynamics of domestic tourism in early August and make up for the decline in bookings observed in late July, but they are facing increased competition due to the development of tourist apartment rentals, notes Maroc Diplomatique. As a result, a drop in hotel occupancy is observed.

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Why do vacationers prefer tourist apartments to hotels? Professionals justify this choice for two reasons. The first: most apartment owners do not impose a maximum number of people, which makes them attractive for large families whose purchasing power does not allow them to book several hotel rooms, especially since these families have to face significant expenses for the new school year. The second: this strong competition for apartments is pushing many hotels in the region to offer discounts of up to 60% to attract groups of friends and families facing the high cost of a hotel stay.

Faced with this increased competition, hoteliers must now adjust their rates to remain competitive.