The recent increases in airline ticket prices by major air carrier companies and the development of the prices of accommodation in hotels and tourist accommodation establishments have reinforced fears of curbing the pace of the flow of foreign tourists to Morocco, especially since this pace recorded a significant acceleration during the first quarter of the year, despite the fact that Ramadan coincides with the month of Ramadan. Last March, the number of arrivals jumped to 3.3 million people, an increase of 12.8 percent compared to the same period last year. While the aforementioned category of tourists represented 55 percent of the visitors.
The months of April and May are of great importance to operators in the tourism sector in Morocco, as they are a precursor to the peak period in the market, as demand gradually increases before the summer holiday season and the return of Moroccan immigrants abroad. While the prices of airline tickets and the price of hotel accommodation are subject to the law of supply and demand, which allowed the actors to approve deliberate increases, taking into account the constraints of competition and the repercussions of inflation in the countries exporting tourists and the Kingdom (the receiving country), where the rate of tourism spending is considered a “barometer” measuring the sector’s activity and its level of profitability.
Activists downplayed the importance of the price increases compared to the growing level of attraction for the Moroccan destination, the promotion of which has been known for a number of developments recently, as air transport links have been intensified, especially through low-cost transport companies “Locust”, as well as the reliance by the Moroccan National Tourism Office on the direction of New in promoting through social media content, in the context of the “Trend House” initiative, which focuses on the “Tik Tok” website to introduce the Kingdom’s tourism qualifications.
Implications of inflation
The magnitude of the impact of inflation varied according to the degree of response of the tourism sector and the Moroccan economy during the last period. Analysis of the current situation and future expectations showed the resistance of national tourism to changes in fuel and food prices, as well as fluctuations in currency exchange rates.
In this regard, the pace of the flow of foreign tourists has maintained its upward trajectory since last year, as the Kingdom received 14.5 million tourists. This represents remarkable progress, an increase of 34 percent compared to 2022. According to Mourad Bayoud, a travel agent and contractor in Marrakesh, despite the increase in airfare and accommodation prices since last month, immediately after Ramadan, the demand for Moroccan destinations, especially Marrakesh and Agadir, has continued its upward trend.
In this context, the professional actor reported that reservations have reached the peak level in the Red City for the next three months, stressing that prices are governed by the law of supply and demand in the market. Therefore, actors are required to exploit this opportunity and intensify their investments in order to expand the offer, which stimulates tourists’ daily spending.
Bayoud added, in an interview with Hespress, that the development of inflation did not only concern Morocco, but also included countries exporting tourists. This reduced the extent of its impact on the pace of the flow of foreign tourists, which amounted to 55 percent of the total arrivals to the Kingdom during the first quarters of the current year.
The same spokesman explained that the rise in the level of prices in general, including the costs of travel, accommodation, and tourist activities, did not significantly affect the cost of tourism in Morocco and did not reduce its attractiveness as a tourist destination.
Domain justice
Data issued by the National Tourism Observatory recently highlighted the concentration of the flow of Moroccan and foreign tourists during the first quarter of the current year in Marrakesh, then Agadir and Essaouira, while Casablanca, Rabat, Fez and Tangier declined. These are the data that revealed imbalances in the tourism supply at the geographical level, with Marrakesh and Agadir receiving 64 percent of incoming tourists, at a rate of 40 percent and 24 percent, respectively.
For his part, Al-Zubair Bouhout, a tourism expert, confirmed that the increase in air ticket prices will not significantly affect demand, given that this category of carriers has a special type of customers for whom the price increase does not make a difference, as they are keen on the quality and diversity of services first and foremost. The same applies to tourist accommodation.
Bouhout explained, in a statement to Hespress, that the situation is not much different for customers of low-cost carriers “Locost,” as they do not feel that the ticket price has increased during the peak period from 25 euros on average to 100 euros?
The tourism expert pointed out the importance of the Ministry of Tourism and sector players focusing on enhancing their investments during the remaining months of the year in order to make the most of the increasing demand, especially during the summer holiday season.
The spokesman stressed that the offer is still geographically limited to two cities, and must be expanded to include other regions in the Kingdom. This is done by developing air links and developing tourism promotion projects according to the nature and specificity of the destination.
