Impact Of Tourism on Morocco’s Economy

The impact of tourism on Morocco’s economy is significant, with the sector contributing around 7.1% of the country’s GDP in 2019. Tourism is considered a strategic sector for driving the country’s economic and social development, and it has been a crucial economic sector alongside the automotive industry, phosphates, and agriculture.
In 2018— tourism contributed more than 8% to Morocco’s GDP, and when indirect contributions to transport, food, handicraft, and other related sectors are considered, the figure grows to about 15%. The sector is estimated to employ more than 2.5 million people both directly and indirectly, accounting for almost 25% of the total Moroccan workforce.
Tourism has a tremendous impact on economic development, especially for emerging countries like Morocco. Benefits of tourism include income generation, job creation, and positive impacts on the image of the country. The Moroccan Agency for Tourism Development (SMIT) has implemented measures to promote Morocco as a tourism destination, creating a business climate that is favorable to tourism investors.
Morocco has pursued extensive economic liberalization reforms since the 1990s to shift towards a more market-oriented model. Key changes include- privatizing state-owned enterprises, lowering trade barriers, easing currency controls and streamlining areas like taxation and investment codes.
Tourism plays a crucial role in Morocco’s economy— contributing significantly to GDP and employment. The sector’s impact extends beyond direct contributions, as it also supports related industries such as transport, food and handicraft. The Moroccan government and tourism agencies have taken steps to promote the country as a tourism destination and is further boosting the sector’s economic impact.
Morocco’s geographical proximity to major European and African markets provides a strategic platform for export-oriented manufacturing and services. Emerging opportunities exist across autos, aeronautics and electronics manufacturing given recent public investments and policy incentives.
However— the difficult business environment poses hurdles. Pervasive corruption, red tape, inadequate infrastructure and skills shortages undermine competitiveness. The regulatory environment and rule of law need significant reforms to enable healthy private sector growth.

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