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.



Gold Edges Up on Weak US Dollar, Political Uncertainty

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. - Reuters
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. - Reuters
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Gold Edges Up on Weak US Dollar, Political Uncertainty

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. - Reuters
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. - Reuters

Gold prices edged higher on Wednesday, aided by a weaker US dollar and political uncertainty following the latest import tariffs announced by US President Donald Trump.

Spot gold firmed 0.1% $2,918.83 an ounce as of 0955 GMT after rising nearly 1% on Tuesday. Prices hit a record high of $2,956.15 on February 24 and have gained 11% so far this year.

US gold futures rose 0.3% to $2,929.70.

"Uncertainty is food and water for gold and hence the bias on prices is to the upside," independent analyst Ross Norman said, Reuters reported.

"Gold looks content to consolidate after recent gains, but with one eye firmly on the $3,000 level."

The dollar index dropped to a three-month low, making bullion more appealing to other currency holders.

In an address to Congress, Trump said further tariffs would follow on April 2, including "reciprocal tariffs" and non-tariff actions aimed at balancing out years of trade imbalances. This came just after he followed through on new 25% tariffs on imports from Mexico and Canada that took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%.

Meanwhile, top bullion consumer China unlocked more fiscal stimulus, promising greater efforts to support consumption and cushion the impact of an escalating trade war with the United States.

Markets now await the ADP employment report due at 1315 GMT and US nonfarm payrolls on Friday for cues on the US interest rate trajectory.

"Geopolitical events and tariffs are currently overshadowing economic data... Significant deviations from market expectations would be needed to create meaningful movement, and any reaction to this week’s ADP and payrolls data is likely to be short-lived," said Zain Vawda, market analyst at MarketPulse by OANDA.

Spot silver advanced 1% to $32.32 an ounce, platinum gained 1% to $970.20, and palladium added 1% to $951.50.