March 31st, 2006
Marrakech - A City Of Cultural Tourism.
Marrakech, a former French colony and a popular leisure tourism destination in the heart of Morocco, has ambitious plans to develop tourism: plans triggered by the national Vision 2010.
Due to strong seasonality and recent increases in supply, most properties are achieving moderate occupancy and the leisure demand driven destination faces increasingly price-sensitive customers. The majority of the room supply is in local ‘Riads’ or other operations of the maison d’hôtes type, but international hotel groups are showing increasing interest in Marrakech.
The local tourism strategy aims to benefit the national Vision 2010 and has a specific plan for tourism development in Marrakech that is expected to increase the room supply by approximately 7,000 by 2010. This further increase in room supply is expected to dilute demand in the short to medium term, although the planned open skies policy, if launched as planned, is foreseen as having a positive impact on both airport arrivals and bednights. In addition to traditional hotel supply, investors are increasingly looking for opportunities in the secondary home market through fractional ownership or timeshare developments. We discuss opportunities in these areas later in this article.
Marrakech
Marrakech is just north of the Atlas Mountains in central Morocco. The city is important because of its geographical location; it is the place where the north and south of the country meet, and a number of major highways intersect. It is the capital of the Marrakech-Tensift-El-Haouz region, has 840,000 inhabitants, is a former capital of the country and is one of four imperial cities in Morocco. Marrakech is a commercial and tourist centre and the main industries are agriculture and food processing, wool and leather goods such as carpets, and mining. Marrakech is a Berber city with some Arabian influences.
The vision of the Moroccan government is to have 10 million visitors by 2010 – currently the number stands at approximately 5 million – and it has developed ‘Plan Azur’ as a framework to achieve this. Part of this plan involves the development of six new tourist resorts – five on the Atlantic coast and one on the Mediterranean coast.
In Marrakech, Vision 2010 has led to the establishment of a project known as Aguedal, which is located to the south of the city on the edge of the urban perimeter bordered to the east by the road to Ourika, to the south by wasteland and to the west by the projected extension of France Avenue. The site is approximately one kilometre from the existing La Mamounia Hotel.
Tourism to Morocco increased year on year until 2001, when the events of 11 September had a significant effect on visitor numbers, especially as Morocco is a Muslim country. The figures for 2003 show that the war in Iraq and the bombings in Casablanca on 16 May 2003 in particular had a further effect on demand for accommodation in Marrakech. Demand picked up strongly in 2004, helped by new ‘no-frills’ direct flights by Atlas Blue from ten major European cities, including London, Amsterdam, Brussels, Geneva, Milan and Zürich.