Introducing Moroccan Tourism Investment environment and opportunities. February 23rd 2018 Younes Hajoui

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1 Introducing Moroccan Tourism Investment environment and opportunities February 23rd 2018 Younes Hajoui

2 MARKETING- Réalisation 1 er Semestre 2017 INTRODUCING THE MOROCCAN TOURISM INDUSTRY

3 2017 TOURISM FIGURES 11,3 M VISITORS 22,1 M OVERNIGHTS BEDS US $ 7,3 BN 7,7 M STAYS BEDS

4 MARKETING- Réalisation 1 er Semestre 2017 INTRODUCING SMIT AND THE POTENTIAL OF MOROCCO

SMIT : A performing tool for investors interested in

and project identification Information about the Morocco

Market intelligence on suitable investment opportunities

Intelligence Project follow-up and Investors aftercare

of investors to key officials and local operators Advise

5 SMIT : A performing tool for investors interested in tourism in Morocco Coordination of investment enquiries and project identification Information about the Morocco business environment and tourism investment figures Market intelligence on suitable investment opportunities and locations Projects Match making Information & Intelligence Project follow-up and Investors aftercare Technical advice Networking Networking and Introduction of investors to key officials and local operators Advise on Government incentives programs and facilitation of approval processes

6 MARKETING- Réalisation 1 er Semestre 2017 WHY INVEST IN MOROCCAN TOURISM?

AN UNPARALLELED TOURISM POTENTIAL PERFECT WEATHER ALL YEAR LONG Warm winters in the inland and cool summers in the coastline A MIXED AND VIBRANT CULTURE A singular

industry STUNNING LANDSCAPRES 3,500 Km of coastlines, large rivers and lakes, Atlas Mountains, Sahara desert outback A LONG TRADITION OF HOSPITALLITY Morocco is amongst

7 AN UNPARALLELED TOURISM POTENTIAL PERFECT WEATHER ALL YEAR LONG Warm winters in the inland and cool summers in the coastline A MIXED AND VIBRANT CULTURE A singular Moorish identity with African and European influences EXCEPTIONAL MONUMENTS Imperial cities, palaces, souks, Kasbahs, medieval towns, renowned culinary art and craft industry STUNNING LANDSCAPRES 3,500 Km of coastlines, large rivers and lakes, Atlas Mountains, Sahara desert outback A LONG TRADITION OF HOSPITALLITY Morocco is amongst the world s 3 most welcoming countries according to the Washington Post AN ESTABLISHED BRAND WORLDWIDE Who s never heard of Casablanca, Marrakech, Moroccan mint tea and Couscous?

8 AN UNPARALLELED TOURISM POTENTIAL 3500 km of beach coast 9 National parks 31 medinas 8258 Historical monuments 9 UNESCO registred monuments

9 MOROCCO IS ALREADY THE TOP TOURISM DESTINATION IN AFRICA World Class Brands Top Tourism Investors Transforming Morocco Into a world class luxury destination Morocco is ranked Africa s destination n 1 in terms of tourists arrivals and n 1 in terms of investment attractiveness in 2016

10 43 INTERNATIONAL AIRLINES FLYING TO AND FROM MOROCCO

11 43 INTERNATIONAL AIRLINES FLYING TO AND FROM MOROCCO

12 MARKETING- Réalisation 1 er Semestre 2017 A BUSINESS FRIENDLY ENVIRONMENT

13 A BUSINESS FRIENDLY ENVIRONEMENT Easiness in setting up a business : Takes less than 7 days to incorporate a company. No restrictions on capital investment : Non resident entities or individuals may up to own 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, non resident 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.

14 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 constructions. Extension of this period may be granted once for an additional period of 6 months. Total corporate tax exemption Scope : on sales issued in foreign currencies. Period : first 5 years of the company s operations. Reduced Rate of 17.5% corporate tax : Scope : on sales issued in foreign currencies. Period : From the 6 th year of the company s operations on. 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.

15 STRONG INVESTMENT INCENTIVES GRANTED BY GOVERNMENT For Government land parcels, attractive pricing for prime location is offered. Government cash contribution up to 50% of land value, within a limit of $25 / Sqm Scope : lots located in the Government backed Azur Plan resorts. Timeframe : Paid once the development is completed. Incentives granted by the Government : Government cash contribution of up to 20% of private land value. Government cash contribution to offsite 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 constructions. Extension of this period may be granted once for an additional period of 6 months.

16 FINANCING SUPPORT THROUGH EQUITY AND DEBT Co-investment of Morocco senior partners providing equity capital. Scope : Strategic projects such as those located in the Azur Plan resorts. Minority positions. Guarantee fund : The purpose of the Guarantee Fund is to guarantee medium and long-term bank loans intended for the financing of accommodation and / or tourist projects. Only companies registered under Moroccan law and involved in tourism investment projects are entitled for the guarantee. That does not include real estate and residential property only projects. The guarantee covers 60% of the nominal value of the loan. Banking system : The Moroccan banking system is strongly committed to supporting the tourism industry and hospitality investments through competitive financing solutions and facilities. Loans with attractive interest rates are available with maturities of up to 15 years. Gearing may be reach 70% of the total investment amount depending on the project, its location and risk profile.

Tourism Investment models available in Morocco Investment in stocks of public

tourism investment Investment are to be considered with senior Moroccan Government or

Acquisition of existing hotel and resort assets with on going operations.

17 Tourism Investment models available in Morocco Investment in stocks of public companies listed in the Casablanca Stock Exchange with exposure to tourism investment and operations. Investment in minority or majority stakes in holding companies with positions in the tourism investment and operations. Investment are to be considered with senior Moroccan Government or private partners. Acquisition of existing hotel and resort assets with on going operations. Brownfield projects, whether Distressed, or Trophy assets. Development of greenfield tourism projects in emerging, mature or premium destinations. Off site infrastructure development and upgrading may be involved depending on location.

18 THANK YOU FOR YOUR ATTENTION

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