The law comes with the objective of protecting Moroccan service providers such as hotels and tourism agencies from bankruptcy.
Rabat – The House of Representatives of the Moroccan Parliament adopted Wednesday, May 13, Draft Bill 30.20 that aims to support the tourism sector in the wake of steep losses due to the COVID-19 crisis.
Minister of Tourism Nadia Fettah Alaoui presented the bill to the Government Council on April 30. The legislation lays out specific provisions relating to travel contracts, tourist accommodation agreements, and air passenger transport.
The law comes with the objective of protecting Moroccan service providers such as hotels and tourism agencies from bankruptcy.
Tourism Minister Nadia Fettah Alaoui presented the bill before deputies of the House of Representatives, emphasizing that the legislation “intervenes in a particular context marked by the socio-economic impacts of the spread of COVID-19.”
The bill’s technical provisions allow service providers such as travel agencies, tourism businesses, and transport companies to reimburse amounts owed to customers with a loan receipt, either in the form of a proposal to provide the same or similar service, without increasing prices, said the minister.
The minister explained that these provisions are only applicable during a precise period of time, following a series of well studied conditions.
They concern travel contracts, tourist stays, and air transport contracts that were scheduled during the period of March 1 to September 30, and which were canceled due to the repercussions of COVID-19.
The minister shared the bill’s intent “to implement this legal device in order to help travel agencies, tourism companies, owners of tourist transport and air transport of passengers faced with financial and socio-economic difficulties.”
The repercussions of COVID-19 on tourism
Tourism is the second-largest contributor to Morocco’s economy, accounting for 11% of its GDP. It is also one of the hardest hit sectors by the crisis, after Morocco’s decision to suspend all non-essential activity in mid-March and postpone all international flights until at least May 31.
Alaoui declared on May 5 that 87% of hotels in Morocco have closed due to the COVID-19 crisis, during a meeting of the Productive Sectors Committee at the House of Representatives.
“Everyone acknowledges that the two sectors of tourism and air transport will need a bigger support than other sectors, because the crisis is global, and we cannot advance the sector independently,” Alaoui said.
The official revealed that the state of emergency has caused a 63% decline in hotel stays since Morocco entered a lockdown on March 20. The decline includes classified accommodation establishments in popular tourist hubs such as Marrakech, Agadir, Casablanca, Tangier, Rabat, Meknes, and Essaouira.
Out of 3,989 tourist accommodation establishments, 3,465, or 87%, are closed due to the COVID-19 pandemic. Barely more than 500 such establishments remain open in the country.
A study by the National Tourism Confederation (CNT) estimated Morocco will see a 39% drop in tourists and lose over $13.85 billion in tourism revenue between 2020 and 2022.
Globally, the UN World Tourism Organization (UNWTO) expects international tourism to drop up to 80% in 2020. However, these calculations may vary and are contingent upon countries’ decisions to lift the borders closure.
