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Fez – The Casablanca Urban Agency (AUC) is set to impose a series of restrictions on the engineering designs of real estate projects, with the aim of reducing the percentage of hotel apartments to 20% in the newly-established buildings within the city center.
Hotel apartments are serviced apartment complexes that use a hotel-like booking system, usually designed for guests for longer stays. They are utilized for investment purposes by owners as daily or monthly tourist accommodations, particularly through international electronic platforms such as “Airbnb.”
An anonymous AUC source, told Morocco World News (MWN) that tourist professionals engaged in discussions with the Director of AUC regarding the growing demand by real estate developers for these types of apartments in Casablanca. They also discussed the harm it poses to the tourism sector in the Kingdom’s economic capital.
The same sources added that the demands of tourism professionals were addressed by AUC, under the supervision of the Ministry of the Interior. The ministry intends to determine the percentage of hotel apartments in the real estate industry and the conditions to be met in order to obtain building permits by the state.
Permits for accommodation services are mandatory according to current law, and those who fail to meet the necessary requirements will be held accountable for their legal violations, indicated the AUC source.
Casablanca’s city center is renowned for its large number of classified hotels, an industry that can hardly keep up with the cheap accommodations easily found on online booking platforms.
During their meeting with the urban agency officials, tourism professionals recorded that their businesses were greatly harmed by these illegal small-apartment rentals, usually booked by tourists through various social networking sites and international leasing platforms, including Airbnb. They explained that the demand for the built-for-rent real estate increased in vital areas of the economic capital due to its investment returns.
The same sources stressed that tourism professionals are intensifying their efforts to combat illegal tourist accommodation activities. This is especially important since the economic capital receives a significant number of business tourism customers who prefer international reservations and rental sites. The source also stressed that they have also reached out to the Ministry of Tourism and the Ministry of Interior to build a cooperative approach in this regard.
The impact of Airbnb
According to the Airbnb terms and conditions portal, Moroccan hosts are considered to be engaged in a commercial activity, which requires them to comply with various consumer protection standards, including exercising due care and diligence, and providing travelers with clear and accurate information regarding the products and services that accommodations have to offer.
As a business, Moroccan Airbnb hosts are also called to comply with the current health and safety legislations including ensuring that the accommodations are safe and that travelers are adequately protected.
The Moroccan Industrial and Commercial Property Office has a set of guidelines on basic requirements for business registration and for different types of entities. Businesses operated on a regular basis can be created with the assistance of the local Regional Investment Center and must be registered in the commercial register corresponding to their activity through the local commercial court.
According to the latest stats from Airbnb, Morocco is the sharing platform’s second most popular destination in Africa, with 21,000 active listings and a 68 percent increase in inbound guest growth last year.
According to the Arab Weekly News, Morocco’s active listings on Airbnb generate average annual earnings of $1,300, bringing in a total of $22 million in earnings for local households. Airbnb, which entered the Moroccan market in 2010, makes money by charging fees to both guests and hosts on each rental.
New sanctions take hold in Casablanca
The new government sanctions will affect not only Moroccan owners of these built-to-rent properties but also foreign owners too, as they make up a large amount of the owners in this rental market.
Foreign owners of vacation holiday properties in Morocco are finding that the open-door booking system does not sit well with the religious laws affecting nationals. For instance, hosting an unmarried couple can result in a number of sanctions on the host, Moroccan or not.
Owners who provide their accommodation services through the Airbnb platform will be subject to legal restrictions in accordance with Decree No. 2.23.441 and the provisions of Law No. 80.14 related to tourist establishments and other forms of tourist accommodation.
Studio apartment owners are now legally required to obtain a license from the authorities after declaring the nature of their activities and submitting a comprehensive file with all the necessary documents.
As for lodging and hostel type accommodations, the new decree stipulates that owners of such spaces must obtain a license from the authorities and specify the number of rooms to be marketed.
Cracking down on accommodation licenses is of utmost priority to officials, as Casablanca is a renowned tourism destination for travelers from around the world.
The Moroccan city of Casablanca has secured its position as the fourth-best city in Africa to live, work, and study, according to Brand Finance’s City Index 2023.
The city, often dubbed Morocco’s economic capital, boasts a thriving business ecosystem and a strategic geographical location.
This combination has made it an attractive destination for international investors and businesses looking to tap into the African market.
Read also: Morocco Wants to Tax Airbnb Hosts to “Ensure Equality”
