World Bank Report: Morocco’s Tourism Sector Rebounds, Contributes 7% to GDP

In its latest report on the economic situation in Morocco, the World Bank looked at the contribution of tourism to the Moroccan economy, reports Challenge. According to the report, the sector has seen a marked recovery after the Covid-19 pandemic, reinforcing its importance in the country’s economic recovery. Tourism accounts for about 7% of GDP and generates more than 500,000 direct jobs, or about 5% of Morocco’s active population, it states. The lifting of restrictions and the influx of the Moroccan diaspora in 2022 have boosted the sector. The number of visitors has largely exceeded the levels of the 2010s, reaching a new peak of 14.5 million in 2023.

As for revenues, the sector generated 104.7 billion DH in 2023, marking a strong increase compared to previous years, the report explains, attributing this dynamism to pent-up demand that was released after the pandemic, with a massive return of foreign tourists and Moroccans residing abroad (MREs). Tourism has also had a positive impact on other sectors of the economy, such as hotels, restaurants, trade and services.

The value added of accommodation and catering activities increased by 68% in 2022, and by 23.5% in 2023. The accommodation capacity has continued to grow, reaching nearly 291,000 beds in 2023. Last year, tourism revenues represented about 7.2% of GDP and 16.7% of total goods and services exports. The only negative point: the decrease in average spending per tourist. While the number of tourists has increased, the average spending per tourist has decreased, from 7,379 DH in the 2000-2010 period to 5,613 DH in 2023.

Moroccan tourism has certainly seen an upturn, but Morocco has failed to increase its market share compared to its Mediterranean competitors such as Spain, Turkey and Egypt, the World Bank notes, stating that its market share in Mediterranean destinations has remained stable at around 3.4%. It is therefore necessary for Morocco to strengthen its efforts to improve its attractiveness and differentiate itself from its regional competitors. The World Bank recommends that Morocco implement strategies to improve the quality of the tourist experience and increase average spending per visitor, including the development of new infrastructure, the promotion of eco-tourism and cultural tourism, and the improvement of services for visitors.

Other recommendations: adopt a more proactive strategy to attract more international tourists and strengthen its market share, strengthen collaboration between the public and private sectors to maximize the economic benefits of tourism.