Moroccan government is keen to sell hotels & grow tourists to cut down debts

Friday, November 23, 2018

As part of a privatization effort to reduce the budget deficit of the country, the Moroccan government is keen to sell its stake in La Mamounia, considered as one of the most famous hotels in Africa.

The initiation comes as the government is aiming growth in tourism to support its economy.

The state-run National Railway Office of Morocco owns 60 percent of La Mamounia, with the state-owned investment management fund Caisse de Depot and Gestion, and the city council of Marrakech each owning 20 percent. It is considered that the hotel could sell for more than $300 million when bids are sought next year.

Constructed in 1923, the hotel was revamped in 2009 by designer Jacques Garcia and earlier this year, Architectural Digest named it as one of the seven “most significant” in the world. Winston Churchill, Charles de Gaulle and Elton John were some of the past guests here.

October saw the government forecast Morocco’s shortfall in 2019 would narrow to 3.3 percent of GDP, down from the 3.8 percent anticipated this year. Driving this will be privatization and improving governance of public companies, which the draft budget of the government said would raise $842.85 million.

Besides La Mamounia, other assets being considered for sale are a stake in Maroc Telecom, the country’s largest telecom operator, and a power plant.

In 2010, the department of tourism released its “Vision 2020” strategy to make the country one of the top-20 tourist destinations of the world and “a model of sustainability in the Mediterranean destinations.”

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