Surge in Travel Revenues Signals Morocco's Economic Resurgence

Tuesday 05 November 2024 - 11:48

In a noteworthy development for Morocco's economy, travel revenues reached 87.1 billion dirhams by the end of September 2024, marking an impressive 8.4% increase compared to the previous year and a remarkable 44.7% rise from the same period in 2019. This information was shared by Prime Minister Aziz Akhannouch during a recent session dedicated to discussing the pivotal role of foreign trade in bolstering the national economy.

Akhannouch highlighted that the influx of tourists has continued to soar, with over 14.5 million visitors recorded in 2023. As of late September 2024, 13.1 million tourists had already been documented, reflecting an increase of 2 million from the same timeframe in 2023 and a substantial 29% growth since 2019.

The Prime Minister attributed these positive trends to a comprehensive recovery plan initiated by the government shortly after taking office, alongside a new strategic roadmap for the tourism sector. He noted that these initiatives have proven effective in revitalizing tourism, which is essential for economic development.

Additionally, Akhannouch acknowledged the significant contributions of Moroccans living abroad to the nation's external revenues. Over the past three years, remittances from the Moroccan diaspora have reached unprecedented levels, exceeding expectations with 115 billion dirhams transferred in 2023 alone, up from 110 billion dirhams in 2022, representing a 4.1% increase.

In the first nine months of 2024, remittances rose by 5.2%, totaling 91.5 billion dirhams, further underscoring the financial support provided by expatriates.

The country has also seen extraordinary results in the outsourcing sector, with service exports hitting 18 billion dirhams in 2023—a 14% increase from the previous year—positioning Morocco as a leader in Africa for this industry.

Akhannouch emphasized that a new digital strategy is set to enhance offshoring activities, thereby improving service exports and contributing positively to the trade balance. The services sector reported a surplus of 133 billion dirhams in 2023, up from 116 billion dirhams in 2022, reflecting strong performance across various sectors.

The government has made strides in improving its trade balance as well; it achieved a historic low current account deficit of just 9 billion dirhams, or -0.6%, compared to a deficit of 43 billion dirhams (-3.4%) in 2019. This marks the lowest deficit level since 2003.

Amid these achievements, Akhannouch pointed out that imports rose over 12% by the end of 2023, highlighting the tangible effects of structural reforms implemented by his administration.

He also reported a decline in national debt levels, now below 70%, down from 72%, following a significant increase between 2011 and 2020.

The government's successful initiatives and structural reforms have not only improved sovereign debt ratings but also fostered a positive outlook among international financial institutions regarding Morocco's economic prospects. Akhannouch reaffirmed his administration's commitment to enhancing these indicators and further elevating Morocco's sovereign credit rating on the global stage.