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Morocco’s Tourism Revenues Drop 69% in Q1 2021

Moroccan tourism sector lost 78% of the number of tourists and 69% of its quarterly revenue due to the coronavirus pandemic. (Reuters)
Moroccan tourism sector lost 78% of the number of tourists and 69% of its quarterly revenue due to the coronavirus pandemic. (Reuters)
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Morocco’s Tourism Revenues Drop 69% in Q1 2021

Moroccan tourism sector lost 78% of the number of tourists and 69% of its quarterly revenue due to the coronavirus pandemic. (Reuters)
Moroccan tourism sector lost 78% of the number of tourists and 69% of its quarterly revenue due to the coronavirus pandemic. (Reuters)

Morocco’s tourism sector has been “gravely affected” by the coronavirus pandemic, said Minister of Tourism Nadia Fettah Alaoui during a session at the parliament.

Almost 430,000 tourists visited the kingdom by late March, she explained, a 78 percent drop compared to the same period in 2020.

Minister of Solidarity and Social Development Jamila El Moussali said tourism revenues did not exceed 5.3 billion dirhams ($530 million) in Q1 2021, a 69 percent drop from the same period last year.

Air traffic in all Moroccan airports was also affected, recording a 70.16 percent drop compared to 2020 and a 73.9 percent decline compared to 2019.

She expected a similar scenario until 2023, with full recovery anticipated the year after.

As for the national air carrier, Royal Air Maroc (RAM), Alaoui said most of its flights have been suspended.

Alaoui pointed to a stimulus package of up to 2,000 dirhams ($227) to tourism companies, tour guides, and restaurants registered in the National Social Security Fund (CNSS).

She stated that 5,518 companies submitted requests by late April to benefit from the program and pay the salaries of more than 79,000 employees.

The government had earlier approved a 2020/2022 program, which according to Alaoui, aims to preserve jobs and improve the tourism sector.

While the government is preparing to lift health restrictions, the minister said a program has been set to support small and medium tourism enterprises and to encourage domestic tourism.

The ministry is currently working on in-depth studies on foreign and domestic markets, as well as promotional campaigns, in preparation for the revival of the tourism season, Alaoui explained.

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.