Marrakesh - Economy

Economy

Marrakesh is a vital component to the economy and culture of Morocco. Improvements to the highways between Casablanca and Agadir and the airport have led to a dramatic increase in tourism in the city, which now attracts over 2 million tourists annually. Because of the importance of tourism to Morocco's weak economy as a whole, King Mohammed VI has vowed to attract 20 million tourists a year to Morocco by 2020, doubling the number of tourists from 2012. The city is popular with the French, and many French celebrities have bought property in the city, including fashion moguls Yves St Laurent and Jean-Paul Gaultier. In the 1990s, very few foreigners lived in the city, but real estate developments have rocketed in the last 15 years, and by 2005 over 3,000 foreigners had purchased properties in the city, lured by its culture and the relatively cheap house prices. It has been cited in the French weekly magazine Le Point as the second St Tropez: "No longer simply a destination for a scattering of adventurous elites, bohemians or backpackers seeking Arabian Nights fantasies, Marrakech is becoming a desirable stopover for the European jet set." However, despite the tourism boom, the majority of the city's inhabitants are still poor, and as of 2010, some 20,000 households still have no access to water or electricity. Many enterprises in the city are facing colossal debt problems.

Despite the financial crisis, investments in real estate progressed substantially in 2011 both in the area of tourist accommodation and social housing. The main developments have been in facilities for tourists including hotels and leisure centres (golf courses and health spas), with investments of 10.9 bn dirham (USD 1.28 billion) in 2011. The hotel infrastructure in recent years has experienced rapid growth. In 2012 alone, 19 new hotels were due to open, a developing boom often compared to Dubai. Royal Ranches Marrakech, one of Gulf Finance House's flagship projects in Morocco, is a 380 hectare resort under development in the suburbs and one of the world's first five star Equestrian Resorts. The resort is expected to make a significant contribution to the local and national economy, creating many jobs and attracting thousands of visitors annually; as of April 2012 it was about 45% complete.

The Avenue Mohammed VI, formerly Avenue de France, is a major city thoroughfare. It has seen rapid development of residential complexes and many luxury hotels. Avenue Mohammed VI contains what is claimed to be the largest nightclub of Africa, Pacha Marrakech, a trendy club attracting young people and clubbers, featuring house and electro music. It also has two large cinema complexes, Le Colisée à Gueliz and Cinéma Rif, and the new shopping precinct, Al Mazar.

Trade and crafts are also extremely important to the local economy, fueled by tourism. There are 18 souks in Marrakesh, employing over 40,000 in pottery, copperware, leather and other crafts. The souks contain a massive range of items from plastic sandals to fake Palestinian scarves, made in India or China. Local boutiques are adept at making western-style clothes using Moroccan materials. The Birmingham Post comments: "The souk offers an incredible shopping experience with a myriad of narrow winding streets that lead through a series of smaller markets clustered by trade. Through the squawking chaos of the poultry market, the gory fascination of the open-air butchers' shops and the uncountable number of small and specialist traders, just wandering around the streets can pass an entire day." Marrakesh has several supermarkets and hypermarkets including Marjane Acima, Asswak Salam and Carrefour, and three major shopping centers, Al Mazar Mall, Plaza Marrakech and Marjane Square; a branch of Carrefour opened in Al Mazar Mall in 2010. Industrial production in the city is centred in the neighborhood of Sidi Ghanem Al Massar, containing large factories, workshops, storage depots and showrooms. Ciments Morocco, a subsidiary of the Italian firm has a factory in Marrakech. The AeroExpo Marrakech International Exhibition of aeronautical industries and services is held here as is the Riad Art Expo: Tradeshow Moroccan art of living.