Morocco’s Tough COVID Restrictions Hammer Tourism Sector

An aerial view of Marrakech, Morocco November 10, 2021. REUTERS/Ilan Rosenberg/File Photo
An aerial view of Marrakech, Morocco November 10, 2021. REUTERS/Ilan Rosenberg/File Photo
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Morocco’s Tough COVID Restrictions Hammer Tourism Sector

An aerial view of Marrakech, Morocco November 10, 2021. REUTERS/Ilan Rosenberg/File Photo
An aerial view of Marrakech, Morocco November 10, 2021. REUTERS/Ilan Rosenberg/File Photo

Businesses working in Morocco's key tourism sector say the country's tough COVID-19 restrictions, including a full flight ban, are undermining its competitiveness compared to rival destinations.

Morocco shut its borders in late November and will only reopen them at the end of January. It has also banned new year celebrations and is enforcing its vaccine pass requirements more strictly in response to the Omicron variant of the coronavirus.

"These restrictions are unjustified and they have made Morocco lose tourists to Mediterranean competitors such as Egypt and Turkey," said Lahcen Zelmat, head of Morocco's hotel federation, Reuters reported.

Tourism generated $8 billion, or 7% of Morocco's economy, in 2019, but the Central Bank expects it to have made only $3.6 billion this year.

Hotels in Marrakech, the main tourist hub, have only 14% occupancy at what is normally peak season, Zelmat said.

"We fear that by the time borders reopen we will find it hard to sell Morocco due to the sudden border closures," said Emmanuelle Barat, a tour operator.

"I have received no customers for the last 10 days," said Taher Onsi, a restaurant owner in Marrakech, adding that domestic tourism could not offset the fall in foreign visitors.

The government has approved a 2,000 dirham ($216) payment to tourism workers registered with social security who have been hit by the crisis.

"This aid does not cover businesses and workers who earn their living indirectly from tourism," Onsi said.

Said Afif, a member of the scientific committee that advises the government on coronavirus, said the curbs would protect lives and the economy by keeping the pandemic under control.

Recorded daily coronavirus cases have gone from around 100 earlier this month to 1,960 last Thursday.

Morocco is Africa's most vaccinated country, having now administered two shots to 23 million people, in a total population of 36 million. Nearly three million have also had booster shots.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.