Welcome to the Morocco Tourism Investment Road … · ONE, ONEP, … Financing ... • Royal Air Maroc operates two daily flights to Washington, DC and New York. Spain as seen from

Welcome to the Morocco Tourism Investment

Road Show to the USA

Introducing Morocco Tourism Investment Projects and Opportunities January 2018

MARKETING- Réalisation 1er Semestre 2017

AN INTRODUCTION TO THE MOROCCO TOURISM INDUSTRY

MOROCCO AT A GLANCE

10.3 M TOURISTS

ARRIVALS

19.3 M NIGHTS

OVERNIGHTS

$ 6.7 BN

SPENDING

242 624 BEDS

(112 344 Keys)

BEDDING CAPACITY

FDI IN TOURISM

6.6 M Stays

NUMBER OF STAYS

AVERAGE LENGTH OF

STAY : 2.9 NIGHTS

AVERAGE SPENDING :

~ $ 650 / TOURIST

TOURISM INVESTMENT FIGURES 2016

$ 1.36 BN


INTRODUCING SMIT AND THE POTENTIAL OF MOROCCO TO AMERICAN INVESTORS

Central entities in charge of tourism development in Morocco Other central entities with a

significant contribution

Ministry of Tourism

Marketing Destination Morocco to tourists / B2C Indicators : Tourists arrivals Tourism receipts & revenues

Hassan II Fund, FDII, ONE, ONEP,…

Financing investment incentives

AMDI / Invest in Morocco

Cross industries investments promotion

Government and ministries

Approval for incentives

CEN

TRA

L LE

VEL

LO

CA

L LE

VEL

Regional Tourism Delegation (DRT)

Regional Center of Investment (CRI)

Defining the Moroccan tourism strategy Regulations

Promotion of the destination to investors and operators / B2C Indicators : Investments in tourism (FDI) Room Capacity

MOROCCAN GOVERNMENT IN THE TOURISM SECTOR

Morocco tourism board /

ONMT Tourism development agency /

SMIT

Cities councils, Wilayas …

A LONG HISTORY BETWEEN MOROCCO AND THE USA

• Morocco is the first country to officially recognize the United States of America as an independent nation as early as 1777.

• The American Legation in Tangier was the first American public property outside the United States. It witnessed the U.S.-Morocco Treaty of Friendship in 1786, which is still in effect today. The legation is still owned and operated by the US Government today.

• In more recent years, Morocco has been a close ally of the United States in the North Africa region.

• Since 2006, Morocco has been the only African country to share a bilateral Free Trade Agreement (FTA) with the United States.

SEVERAL AMERICAN FLAGSHIPS CURRENTLY OPERATING IN MOROCCO

• Sheraton, Casablanca Hotel & Towers • Marriott, Jnan Fes • Le Meridien, Nfis Marrakech • AnaYela, Marrakech • W Hotel, Marrakech (opening soon) • Ritz Carlton, Rabat (opening soon)

• Hilton, Tangier City Center • Hilton Garden Inn, Tangier • Hilton, Tangier Al Houara (opening soon) • Hilton, Casablanca Sidi Maarouf (opening soon)

• Ramada Encore, Tangier • Ramada, Fez

• Hyatt Regency Casablanca • Hyatt Place, Taghazout • Hyatt Regency, Taghazout (opening soon)

STRONG U.S. DYNAMICS IN THE TOURISM INDUSTRY

• Since the free trade agreement signing with Morocco, the bilateral trade between both countries has multiplied threefold, and the number of U.S. companies seeking to invest in Morocco and establish links with Moroccan operators has increased considerably.

• The number of American tourists visiting Morocco has increased by almost 12% since 2014 on average. Tourism increased 23% from 2016 to 2017.

• Increasingly, Morocco is emerging as a geopolitical hub and platform for investment for West Africa and French-speaking African countries.

178,382 190,706 202,372

249,206

2014 2015 2016 2017

Number of US tourists visiting Morocco


WHY INVEST IN MOROCCAN TOURISM?

WHY TOURISM IN MOROCCO? A RESILIENT DESTINATION WITH UNTAPPED POTENTIAL

Secure, safe and stable environment

Top priority for government

Investor-friendly environment

Unparalleled tourism potential

Robust infrastructures

Resilient destination

Strategic location


A BUSINESS-FRIENDLY ENVIRONMENT SUPPORTED BY THE GOVERNMENT

A BUSINESS-FRIENDLY ENVIRONMENT

• Business ease: Takes less than 10 days to incorporate a company.

• No capital investment restrictions :

Non-resident entities or individuals may own up to 100% of the capital of their businesses in Morocco.

• Free repatriation of capital and profits :

Non-resident entities or individuals may transfer 100% of capital gains on divestment, profits and dividends.

• No restrictions on land ownership :

Except for lands dedicated to agriculture, nonresident entities or individuals may own 100% of land deed.

• No restrictions in terms of staff recruitments :

Investors may recruit staff from any country without restrictions – especially senior staff.

A SET OF ATTRACTIVE TAX EXEMPTIONS FOR TOURISM

• Total VAT exemption on capital expenditures Scope : Goods, equipment and tooling for both items acquired in Morocco and

those imported. Period : 36 months from company's inception date or building’s permit date in

case the company engages in construction. Extension of this period may be granted once for an additional period of 6

months. • Total corporate tax exemption

Scope : Sales issued in foreign currencies. Period : First five years of company operations.

• Reduced Rate of 17.5% corporate tax :

Scope : Sales issued in foreign currencies. Period : From the company’s 6th year in operations forward. Compared to a standard corporate tax rate of 30%.

• Reduced VAT rate of 10% on sales (vs. standard rate of 20%):

Scope : Accommodation/rooms sales. Period : Unlimited.

STRONG INVESTMENT INCENTIVES: GOVERNMENT GRANTS

• For government land parcels, attractive pricing for prime location is offered.

• Government cash contribution of up to 50% of land value, within a limit of $25/sqm: Scope : Lots located in government-backed Azur Plan resorts. Timeframe : Paid once the development is completed.

• Incentives granted by the Moroccan Government:

Government cash contribution of up to 20% of private land value. Government cash contribution to offset infrastructure costs. Government cash contribution of up to 20% of total staff training costs.

The sum of all of the above mentioned incentives cannot exceed 5% of the total amount of the investment program. The cap reaches 10% in certain emerging regions. • Total customs duties exemption on imported capital expenditures:

Scope : Imported goods, equipment and tooling items. Period : 36 months from company's inception date or building’s permit date in

case the company engages in construction. Extension of this period may be granted once for an additional period of 6

months.

KING MOHAMMED VI’S VISION 2020

VISION 2020 Under the guidance of His Majesty King Mohammed VI, Morocco has launched “VISION 2020,” a

set of very ambitious strategic objectives structured around six major programs, aimed to position Morocco as a top 20 worldwide destination.

6 programs

AZUR PLAN

Leisure

MDINTI

QARIATI

Niche tourism / MICE

BILADI


A RESILIENT DESTINATION

World Class Brands Top Tourism Investors World class destination

A RESILIENT DESTINATION WITH PROMINENT INDUSTRY PLAYERS

#1 African destination for tourist arrivals. #1 African destination in investment attractiveness. Tourist arrivals to Morocco have not decreased the last 15 years.

A SECURE, SAFE AND STABLE ENVIRONMENT

Despite the global economic crisis, Morocco has shown strong resilience with an encouraging GDP average annual growth of 5.3% since 2010.

2008 2009 2010 2011 2012 2013 2014

Inflation 4,4% 0,7% 0,4% 1,8% 0,8% 1,5% 1,2%

Growth has been achieved in a stable macroeconomic environment with an average 1.1% inflation rate since 2010.

Unemployment rate has dropped below 10% for the 9th year in a row, enabling a peaceful and safe environment for tourists.

A STRATEGIC LOCATION AT THE GATES OF EUROPE

• Morocco is an accessible destination: about a ten-hour flight from the United States East Coast, and a three-hour flight from most European hubs.

• Direct flight connections include more than 32 European cities and 18 African cities, strategically placing Morocco as a central hub.

• Royal Air Maroc operates two daily flights to Washington, DC and New York.

Spain as seen from Tangier

17 international airports

#1 Africa to Europe hub

Modern urban transport infrastructures. Two extensive tramway networks.

More than 2,000 km of highways covering major tourism centers.

High-speed railways including Casablanca-Tangier

“Tangier Med” Port to be ranked a Top 15 harbor worldwide! • Increase to 8.5 million containers capacity in 2017 • Integrated offer of Industrial, Logistical & Commercial Zones

with multimodal infrastructure

ROBUST INFRASTRUCTURES

AN UNPARALLELED TOURISM POTENTIAL

PERFECT WEATHER ALL

YEAR LONG

Warm winters inland and

cool coastline summers

EXCEPTIONAL MONUMENTS

Imperial cities, palaces, souks, Kasbahs, medieval towns, renowned culinary

art and craft industry

MIXED AND VIBRANT

CULTURE

A singular Moorish

identity with African and

European influences

TRADITIONS OF HOSPITALITY

Morocco is among the

world’s three most

welcoming countries,

according to the

Washington Post.

STUNNING LANDSCAPES

3,500 km of coastlines,

large rivers and lakes, the

Atlas Mountains, and

Sahara desert outback

RECOGNIZABLE CULTURE

WORLDWIDE

Ever heard of Casablanca,

mint tea and couscous?


TOURISM INVESTMENT OPPORTUNITIES


ORIENTAL REGION

Mediterranean Morocco is the new

“beach & leisure” seaside destination

that boasts modern entertainment

facilities and a unique sustainable

eco-tourism positioning.

The Mediterranean is a development

of diversified seaside amenities and

important natural resources with its

highly rich and diversified climates:

ocean coast, lagoons, forests,

mountains and plains. There are also

several incredible cultural attractions

with many Kasbahs, medinas and

caves.

MEDITERRANEAN MOROCCO

SAIDIA The Blue Pearl

Also known as the “Blue Pearl” of Morocco, Saidia enjoys a 14 km long beach and splendid climate. Saidia is a new generation resort that was able to preserve its Moroccan character, serving as an ideal spot from which to explore the country.

Saidia ensures all tourist comforts during the holidays. Beach umbrellas and mattresses, high standards of services, and attentive staff serve to accommodate every need. Partake in a lavish sunbathing at noon, followed by visiting the hotel’s spa for a wellness break to regenerate!

Bordering a preserved sea, Saidia is the perfect place to gather with family and friends to enjoy the simple summer pleasures. Taking a ride to the nearby small fishing town of Ras El Ma to watch fishermen unload the catch of the day -- and preparing delicious, fresh fish -- is a common summer-time activity.

MEDITERRANEAN MOROCCO Saidia Beach Hotel Snapshot

• Saïdia is a beach resort spread across an area of 713 hectares, in front of a coastal strip of 6 km of beaches of exceptional beauty.

• The bay is a mixed use land development that includes residential and hotel developments, a marina, a shopping area, a golf course and several sport and entertainment facilities.

• Two upscale hotel units are open in the bay and several others are under construction. Many sections have already been built and sold.

Project Saidia Beach Hotel

Concept Beach front golf resort

Location Saidia Beach Resort - Saidia - Oriental

GPS Waypoint 35°06'29.4"N 2°17'31.1"W

Nearest Airport Oujda Angad Airport - 70 km

Area ~ 6.7 Ha ; 9.2 Ha; 6.5 Ha

Ownership Government (SDS)

Investment size Approx. $40M x3 = $120 M

Target Capacity 500 beds x3 = 1,500 beds

Target IRR 12%


NORTH CAPE

Located just in front of European

shores, the North Cape region of

Morocco is the gateway of Africa and

bridge between two continents.

With a double coastal façade both on

the Atlantic and Mediterranean, the

North Cape region enjoys splendid

beaches while also boasting some of

the most astonishing Moroccan heritage

cities, such as world-renowned Tangier

Andalusian Tetuan, and charming

Chefchaouen.

NORTH CAPE

Mediterranean Morocco

Atlas & Valleys

Central Morocco

North Cape

Centre Atlantic

Marrakech & Atlantic

Souss Sahara Atlantic

Great South Atlantic

Lixus Resort

Primary positioning : Beach and coastal tourism

Alternative positioning : Cultural tourism

• Located in the top northwest corner of Africa, overlooking the Gibraltar strait, Tangier is one of the busiest international maritime routes. Tangier connects the West and East, as well as the North and South.

• A former exclusive seaside destination, Tangier has evolved into a strong MICE destination for businessmen/businesswomen and investors alike. The Tangier region benefits from strong government attention, and many high profile infrastructure developments have been launched, such as: Tangier Free Zone, Tangier Med Port, the newly built train station where the High Speed Train is due to be launched by mid-2018, a complete renovation of Ibn Battuta International Airport, and, last but not least, the Tangier Tech Zone, a high technology area.

• Tangier has all it takes to offer a diverse experience for its visitors: one of Morocco’s most beautiful bays, a rich medina heritage, classified as World Heritage by UNESCO, vibrant nightlife and atmosphere with Mediterranean and Spanish flavors, and several prestigious hotels.

TANGIER: A PLACE LIKE NO OTHER

Lixus Resort is located 80 km south of Tangier

and about 170 km north of Rabat. It is home to

one of the most beautiful beaches of the

region.

The resort’s infrastructure was developed by

the Large Moroccan Institutional Alliance.

Residential components have already been

sold, and a golf course and beach hotel have

recently opened.

LIXUS RESORT

Project Lixus Resort

Concept Beach Front resort

Location Larache

GPS Waypoint 35°13'34.4"N 6°08'08.1"W

Nearest Airport Tangier Ibn Battuta Airport

Area ~ 470 Ha

Ownership Private

Investment size $50 M

Target Capacity 200 beds

Target IRR 14%


SOUSS SAHARA ATLANTIC

Extending over a vast area, the Souss

Sahara Atlantic zone enjoys Morocco’s

longest coastline.

The region has one of the most

beautiful and immaculate beaches in

Morocco, where the sea meets the

great Sahara desert.

SOUSS SAHARA ATLANTIC

Guelmim / White beach

• Guelmim, a city in southern Morocco, is often called the “Desert Gateway.” It is the capital of the Guelmim-Oued Noun region, which includes parts of southern Morocco.

• Guelmim is accessible through the main national roads, N1 and N12, which link it to the nearby region of Souss-Massa and Agadir, which lies 200 km north.

• Guelmim is located just north of Asrir, which was the site of an important trade-route city and capital of the Saharan tribes. It was known in Arabic sources as Noul Lamta. It is home to a camel market. Many of the inhabitants speak the Hassaniya dialect, as it is part of the Sahrawi-inhabited southern region of Morocco.

• Although it does not directly lie on the shore, Guelmim is known for the stunning beaches which can be reached in less than half an hour by car. “Plage Blanche” or “White Beach” are two of the most famous beaches in the area.

GUELMIM: A DESERT GETAWAY

Located 65 km west of Guelmim, the “White

Beach” is one of the most beautiful sites of the

province, which extends approximately 45 km.

This site is ideal for strolling the beach,

exploring the dunes, or visiting the cliffs.

WHITE BEACH RESORT

Project Resort de Plage Blanche

Concept Beach Front dunes resort

Location Plage Blanche resort

GPS Waypoint 31°28'11.5"N 9°46'39.9"W

Nearest Airport Guelmim Airport

Area ~ 600 Ha

Ownership Government

Investment size $1 B

Target Capacity 20,000 beds

Target IRR 14%

White Beach Resort Layout

Land: 600 ha (government-owned property).

Sea front line of 7 km with a river extension.

Favorable climate year round.

• Agadir had a bedding capacity in excess of 40,000 beds at the end of 2016, and overall city occupancy rate has been exceeding 55% on average since 2010.

• With its temperate climate and stunning

beaches, Agadir remains Morocco’s seaside destination with the greatest potential.

• Hosting more than 1.5 million tourists every year, Agadir treats its visitors to such attractions as numerous restaurants, bars, nightclubs and casinos.

• Agadir is famous for its beautiful bay and is host to many high-end hospitality and residential developments around the Marina.

• The region is also the first agricultural pillar in Morocco (fruits, vegetables and fish canning industries) and second touristic pillar in the country.

• Since the early 1970s, Agadir has been a popular seaside destination among European tourists seeking a sunny getaway.

AGADIR An experience of the Atlantic Ocean

AGADIR

“Agadir Founty” “Agadir Founty” is a land parcel owned by

SMIT, located at the heart of the Agadir tourist district.

The parcel is one of the last parcels available for hotel development in the Founty area.

The land has direct access to Agadir beach and main road access, leading to downtown Agadir.

The parcel is also a 10-minute walk from most nightlife attractions in Agadir, with numerous restaurants, bars, nightclubs and casinos in the vicinity.

Project Agadir Founty

Concept Urban beach hotel

Location Founty touristic district - Agadir

GPS Waypoint 30°23'42.3"N 9°35'40.6"W

Nearest Airport Agadir Al Massira Airport - 25 km

Area ~ 7 200 sqm

Ownership SMIT



Target IRR 15%

AGADIR “Agadir Founty” layout


THE GREAT SOUTH

The great South Atlantic is

considered an untouched territory

with impressive sand dunes and

beaches.

Over the past few years, Dakhla,

formerly a small fish town, has

grown to become a trendy eco-

friendly destination.

Recently, the first direct

international flight between Dakhla

and Paris was established.

GREAT SOUTH ATLANTIC

DAKHLA Where the desert and sea meet . . .

Dakhla has become a rising tourism destination in Southern Morocco as a world-famous hotspot for windsurfing and kitesurfing.

It is not surprising that Dakhla leaves visitors breathless with wonderful views on an impressive

bay, as well as many endless beaches and sand dunes.

Dakhla is the top fishing port in Morocco with nearly 500,000 tons of fresh fish, mainly sardines and anchovies. This unique destination offers tourists an opportunity to sample the region’s culinary specialties.

Dakhla is accessible by a 1.5-hour flight from Casablanca and main Moroccan cities. A direct route from Paris was recently opened, which is expected to increase accessibility.

DAKHLA Dakhla Eco-resort

Similar to the well-known Oued Eddahab bay, a notable destination for kitesurfing, the goal of Dakhla projects is to develop an eco-friendly resort dedicated to extreme sports.

The views from the land are the best

views in the entire area.

Dakhla is close to the Dakhla city airport (about a 20-minute drive).

Project Dakhla Extreme Sports Eco-resort

Concept Beach front Eco-resort

Location Oued Eddahab Bay - Dakhla

GPS Waypoint 23°48'15.4"N 15°43'49.4"W

Nearest Airport Dakhla Airport - 20 km

Area ~ 200.0 Ha




Target IRR 12% - 14%

DAKHLA

Dakhla Eco-resort


MARRAKESH & ATLANTIC

At the base of the Atlas Mountains,

Marrakesh remains the jewel of

Morocco with an established tourism

industry.

Essaouira, which is sometimes

described as “Marrakesh by the Sea,” is

well on its way to becoming a world-

class hospitality destination with

important hospitality developments

going on.

MARRAKESH & ATLANTIC

MARRAKESH Experience Morocco’s unique heritage!

Marrakesh is the most attractive tourism destination in Morocco. Each year, Marrakesh hosts more than 3 million tourists and the Marrakesh “Menara” International airport is ranked first in Morocco in terms of arrivals with a total 1,638,864 in 2015.

The city has the highest bedding capacity of the country, with 65,000 beds, encompassing some of the most recognized hotel brands.

The Marrakesh “medina” (medieval town center) -- as well as many other historical monuments in the city -- are classified as World Heritage by UNESCO.

Marrakesh is also famous for its vibrant nightlife, with jetsetters coming from all around the world to enjoy its distinctive atmosphere.

• Al Massira Lake green resort is a government-owned lake front land parcel suitable for eco resort developments.

• Situated between Marrakesh and Casablanca, Al Massira Lake Green Resort will be a perfect getaway connecting these two large tourists markets.

• With a strategic position near the lake, water activities such as fishing, canoeing, or boating, are highly attractive to visiting tourists.

MARRAKESH Al Massira Lake Green Resort – At a glance

Project Al Massira Lake Green Resort

Concept Lake front Eco resort

Location Al Massira Dam - Marrakesh

GPS Waypoint 32°24'57.9"N 7°30'02.5"W

Nearest Airport Casablanca Mohamed V Airport - 110 km

Area ~ 14.0 Ha




Target IRR 14%-16%

MARRAKESH Al Massira Lake Green Resort

Green resort

Project access road


CENTRAL MOROCCO

Central Morocco features the ancient

city of Fez, the spiritual capital of

Morocco. This open air museum city, a

UNESCO World Heritage Site, will

transport tourists back to medieval

times.

Central Morocco is located at the heart

of the Middle Atlas mountains, which

offers numerous hiking and trekking

opportunities near the peaceful city of

Ifrane.

CENTRAL MOROCCO

FEZ

Fez is one of Morocco’s major tourism destinations. The “medina,” or ancient medieval town center, is classified as a World Heritage Site by UNESCO. The medina recently celebrated its 1,200th anniversary.

Fez is believed to contain one of the largest and best preserved medieval cities in the world. According to UNESCO and Guinness Records, Fez also hosts the oldest existing, continually operating and first degree-awarding educational institution in the world. The university, El Qarawiyyin, is sometimes referred to as the world’s oldest educational institution.

Within Fez lie many priceless historical sites, such as the city fortified walls, the tanneries, the Bou Inannia Medersa (medieval university), the Ibn Danan Synagogue, and the Moroccan dynasties tombs, among many others.

Projet « Resorts Constellation in Fez »

Development of the Project: • A structured entertainment and leisure offering,

featuring local characteristics and focusing on well-being (including a network of luxury hammams, etc.).

Constellation of Resorts in Fez is focused on art and traditional themes.

Project Constellation Resort

Concept Urban hotel

Location Fès

Nearest Airport Fès saiss Aiport – 15 km



Target Capacity 5,000 beds

Target IRR 15%

IN ADDITION TO NUMEROUS EXISTING, PRIME LOCATION HOTELS

Documents

Welcome to the Morocco Tourism Investment Road … · ONE, ONEP, … Financing ... • Royal Air Maroc operates two daily flights to Washington, DC and New York. Spain as seen from