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.



Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.