How Barack Obama will affect the US hotel industry Economic woes in 2009 : Managing in a downturn Four CIOs join our first Technology Roundtable The GM of the « Best Hotel in the World » tells us where luxury is heading Thoughts on 2009 from the CEOs of Scandic and Mövenpick

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THE MAGHREB

Morocco and Tunisia : big plans afoot PHILIPPE DOIZELET, Head of HORWATH HTL’s Paris practice, makes a solid case for considering these two North African countries the next hot Mediterranean markets, especially for developments mixing hotels and privately owned residences.

In Arabic, the word « Maghreb » – now connoting the countries

Despite the two countries being comparable in terms of

Libya, Tunisia, Algeria, Morocco and Mauritania – means « the

geographic environment, tourist product and cultural

land where the sun sets. » Very different from each other, these

background, Tunisia and Morocco are at different stages of

five countries mark the western boundary of Islamic religion and

their respective tourism development ; Morocco is developing

culture. The economic importance of the Maghreb countries

at a fast pace, whereas Tunisia is re-shaping its tourist model.

within Africa remains unquestioned : they account for nearly one third of the continent’s output, and their share increases yearly.

Morocco : picture of growth Investment began to accelerate in Morocco in the 1980s,

With a total area of almost 4.2 million km2, Algeria and Libya are the second- and fourth- largest countries in Africa,

when, by means of loans and tax exemptions, the government

respectively. Each of them has recently initiated integration

tourist industry and related services. In the early 1990s, the

into the global marketplace, with the energy sector (fossil fuel)

country hosted up to 1.5 million tourists per annum, mainly

driving their economies.

from France and Spain. In 2001 the king of Morocco signed

committed significant resources to the development of the

a strategic plan called « Vision 2010, » setting the goal of Mauritania, with GDP per capita of only $952 in 2007 (only

attracting 10 million tourists by 2010. The plan calls for adding

one twelfth that of Libya and one fourth that of Algeria), is the

160,000 beds, bringing the national capacity to 230,000. It

least-advanced country in the Maghreb, due to an absence of

also forecasts the creation of some 600,000 new jobs.

discovered recently. As the most politically unstable country

The national plan for tourism development « Vision 2010 »

of the Maghreb, it has seen more than ten governments

divides into two sub-plans, the « Azur » and « Mada’in » plans.

overthrown (or attempted coups d’état) since the country gained

It is an ambitious partnership between private operators and

its independence, the last one in August 2008. Most of the

the Moroccan government engaged in creating favorable

population is employed in the agricultural and mining sectors.

investment conditions. On top of product diversification, largescale training programs, improving the quality of services and

Tourism on the rise in Morocco and Tunisia

better distribution, the Azur Plan envisages the creation of 6

Viewed in this context, the economies of Morocco and Tunisia

new coastal resorts :

are more diversified and incorporate a wider array of services, including tourism. In 2007, the two countries together recorded

• Saïdia Mediterranea - 30,000 beds

some 14 million tourist arrivals, resulting in nearly 53 million

• Port Lixus - 12,000 beds

overnight stays. Numbers like these confirm their position as

• Mazagan - 7,600 beds

mainstream destinations in the Mediterranean region. In order

• Mogador - 10,500 beds

to accompany the tremendous growth in the tourism sector,

• Taghazout - 21,000 beds

Horwath HTL has recently opened new office locations in the

• Plage Blanche - 26,000 beds

capital cities of Rabat and Tunis.

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natural resources, although relatively small oil reserves were

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THE MAGHREB

Morocco and Tunisia : big plans afoot cont. In parallel, the Mada’in plan addresses the re-development of

Soaring tourist arrivals and growing interest in Morocco as a

existing destinations : Fes, Rabat, Marrakech among others.

second home destination is driving demand in up-scale projects

The key success factors of the « Vision 2010 » plan include :

of resorts and residential developments. Among the properties that are scheduled to open between now and 2011 :

• Limited land cost • Development of infrastructure • No custom tax on equipment • Quality real estate developers • Open sky policy.

• Four Seasons – a hotel and resort complex, consisting of hotel and villas, some of which are to be sold to private owners and then fully serviced by Four Seasons • Banyan Tree – a € 35m luxury resort hotel in the Palmeraie area • Mandarin Oriental – 45 private villas designated as

Together, these factors create the market conditions that

« Residences at Mandarin Oriental »

should encourage short stays and real estate sales.

• Marrakech Serail – the « Lucien Barrière Hotel, » including 85

Thanks to the policy of government incentives and quality

• SBM (Monaco) – a luxury hotel project

large-scale operations, Morocco has succeeded in diversifying

• Raffles Resort – 150 rooms and 36 villas, opening in 2009

and upgrading its supply. Currently, this modern tourist

• Park Hyatt Marrakech – designed as a part of Al Maaden

suites and a Fouquet’s restaurant

destination offers a wide choice of activities, from traditional sunbathing through cultural circuits to desert tourism, trekking, golf and wellness.

residential and leisure development • Starwood – intends to introduce its design brand « W » in Marrakech in 2010 • InterContinental Marrakech Resort & Spa – a new-built resort

Through its investment vehicle Risma, Accor is the leading

development, scheduled to open in the first quarter of 2011.

operator in Morocco with 32 hotels. However, the presence of On a short-term basis, the recent crisis has a strong impact on the financing of new projects and may limit the additions of new The strategy for Morocco has been acclaimed by key

rooms, at least for a certain period. But taking a longer-term

investment groups from the gulf such as Emaar, Al Qudra, KHI,

perspective, the future of Moroccan hotel investment is attractive

Sama Dubai as well as leading international operators including

and will continue to draw investors from Europe and Middle East.

Accor, Marriott, Starwood, and Hilton to name just a few. Tunisia : gaining ground Marrakech, due to its status of most-visited city, is considered

Similar to Morocco, tourism in Tunisia plays an important role,

to be one of the preferred places for investment mainly due

contributing 7 percent of GDP and 17 percent of export value.

to a higher Average Daily Rate than in the rest of the country.

The country has already recovered from the Djerba attack of

2009 will see massive additions of hotel supply in Marrakech

2002 and keeps increasing tourism income even more rapidly

which will be combined with real estate programs.

than the number of arrivals and overnight stays.

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other international hotel groups is increasingly diversified.

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THE MAGHREB

Morocco and Tunisia : big plans afoot cont. In parallel, liberalization in air transportation allowed it to reach a sustained growth of seat capacities.

• The Tunis Sports City, which will be built by the Bukhatir Group on 245 ha ; • The South Lake area, Mediterranean Gate, developed by

Today, Tunisia is already one of the top beach destinations

Sama Dubai on 830 ha.

in the Mediterranean. In terms of accommodation, about 80 percent of the lodging facilities are conventional seaside hotels,

The other key area in greater Tunis is Gammath, where several

which are almost exclusively marketed through tour operator

marina projects combined with hotel and real estate are

channels. This market profile was successful for attracting mass

projected as an answer to the scarcity of moorings for yachts

tourism, but can hardly compete with destinations developed

in the Mediterranean.

more recently such as Turkey or Egypt. For decades, Morocco and Tunisia have developed financial The Tunis hotel market has been stable for quite a long time.

incentives to the benefit of their own residents. The initial

However, significant changes there have occurred over the past

objective was to develop international tourism without

two or three years. The Tunisian

rejection by locals. However,

government is now aware that the

this idyllic scenario has been

Tunisian traditional hotel model is

tempered by an unbalanced mix

challenged. In addition, upscale

of product. The 100 percent hotel

hotel villas are only now beginning

model was suitable to a low- to

to emerge in Tunisia, for example,

middle-range clientele of French

The Residence.

and German operators. In 2009 mix of hotel and real estate, as

Plan of Modernization of the

well as a lesser share of tour

Hotel Industry, calling for the

operator business, is required to

modernization of 45 hotel units

create additional value for future

at a total investment of US$ 1.25

developments.

billion, is not sufficient to radically alter the country’s positioning. It is

Both countries represent true

therefore critical that Tunisia further

investment opportunities and

diversify its tourism industry, basing

soon will become an indispensible

on its potential to develop activities

development destination for

like spas, golf and MICE.

international groups wishing to conquer new markets in the

In the foreseeable future, the

Mediterranean region. Tunisia

hotel additions in Tunis will be

is actually one head behind

concentrated around the three

Morocco but is likely to repeat its

mega-projects under development

successful path. There is no doubt

all around the Tunis Lake :

that 2009 may be a crucial year in this perspective.

• The North Lake area, 200 ha, already 80 percent completed ;

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WORLD TOUR : HERE, THERE AND EVERYWHERE

and beyond, a well-balanced Launched in 2004, a National

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