Airline Tax Threat to Moroccan Tourism in 2025?

Airline Tax Threats to Moroccan Tourism in 2025?

Morocco-based French tourism operators worried

While the tourism sector is on cloud nine, with record figures in 2024 and the first quarter of 2025, it could be in for a downturn for the rest of the year, particularly due to the loss of a significant portion of French customers, the leading country in terms of arrivals. This decline affects not only the French market, but might also affect other segments, following the French government’s decision to increase its TSBA solidarity tax on airline tickets (Taxe de Solidarité sur les Billets d’Avion)  to the detriment of foreign tourist destinations.

It is with great regret that Ryanair announced the cancellation of its two routes between Marrakech and Porto, Portugal. This decision follows the doubling of airport taxes in France starting in March, unlike other European countries, which are instead seeking to reduce them. The lack of common legislation on the matter within the European Union makes these tax disparities even more problematic.

This situation also worries French tour operators, who schedule charter flights to Morocco and are already seeing their revenues plummet. Moroccan hotels, which largely depend on this clientele attracted by affordable stays, are also likely to suffer. The future of the sector will depend on the evolution of this tax decision and any potential compensation measures that could be implemented to mitigate its impact.

Translated and adapted from actu-maroc.com/menaces-sur-le-tourisme-marocain-en-2025/ by fulbridge.com, BBA Morocco member

Background:

Key Developments:

Increased “Solidarity Tax” (TSBA):

The French government has moved forward with substantial increases to the “Solidarity Tax” applied to airline tickets. This tax, designed to generate revenue, has seen a sharp rise in rates across various flight distances and travel classes. These increases went into effect on March 1st, 2025.  

Varying Tax Rates:

The tax increase is not uniform. It varies significantly based on:

  • Flight distance (domestic, intra-European, mid-haul, long-haul).  
  • Travel class (economy, premium economy, business, first class).  
  • This means that those travelling in business and first class on long-haul flights will bear the heaviest burden.  

Impact on Private Jets:

In addition to commercial flights, France has also introduced a new passenger tax specifically targeting private jet flights. This measure is designed to increase revenue from private aviation.  

This tax is also tiered, depending on distance flown, and the type of private aircraft used.  

Retroactive Charges:

Some airlines, most notably Transavia, have implemented surcharges on tickets that were purchased before the new tax went into effect. This has caused frustration among consumers.

It is important to notice that not all airlines have taken this action.

Economic Impact:

The French government anticipates generating a significant amount of additional revenue from these tax increases. However, the aviation industry expresses concerns about the potential negative impacts on:

  • Airline competitiveness.
  • Regional airport viability.
  • Tourism.
  • Job losses.
  • Industry Concerns:

Competitiveness:

Airlines argue that these taxes will make French airports less competitive compared to other European hubs.

Regional Impact:

There are fears that the increased taxes will disproportionately affect regional airports, potentially leading to reduced connectivity.  

Consumer Impact:

Passengers will face higher ticket prices, which could deter travel.  

Lack of Consultation:

A large complaint from transport unions is that the tax increases have been implemented without proper consultation or impact studies.  

Environmental Reasoning:

The French government has stated that part of the reasoning behind the tax increases is to help with environmental concerns. However, the aviation industry has pushed back on this, and argued that this will harm the industry.  

The situation is evolving, and the long-term effects of these new taxes remain to be seen.

Overblown threat? A historic look at the UK’s APD

“The Air Passenger Duty (APD), for instance, is a common tax included on an air ticket for travellers flying from the UK[.] Since its introduction in 1994, APD has been a pivotal measure aimed at generating revenue for the UK government while pushing individuals to consider the environmental implications of their travel choices. This tax has incited extensive debate, as various stakeholders present compelling arguments for and against its continued implementation. “

A University of Hertfordshire study on the subject highlights the varying impact of the APD:

Short-haul trips: Tourist demand is inelastic for APD below £37.505. As the current APD rate ranges from £13 to £26 for short-haul trips, it has a limited effect on tourist demand.

Medium- and long-haul trips: The current APD rate is more than £75, which is more than the critical value of £52.505, above which the tourist demand becomes highly elastic. This confirms that the current APD rate for medium- and long-haul trips may deter tourists from travelling overseas.

An Airline UK report would suggest:

Short-haul and Long-haul: APD increases ticket prices, which dampens demand and negatively impacts connectivity at UK airports.

Ticket Prices: APD represents, on average, about 16% of ticket prices for short-haul destinations and 18% for long-haul destinations. This increases to 27% and 26% respectively during off-peak periods.

Further reading

Why Are Travel Costs Soaring Experts Explain The Global Impact On Tourism In 2025

Tourist Taxes Part Two Their Impact On The Aviation Industry

How the tax system distorts the travel industry

United Kingdom Air Passenger Duty (APD) and the impact on travel and tourism

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Create a Business Online in Morocco: National Rollout

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Morocco has taken a significant stride in its economic modernization with the nationwide launch of the online business registration platform, directentreprise.ma. This initiative, spearheaded by the Moroccan Office of Industrial and Commercial Property (OMPIC), marks a pivotal moment in the country’s efforts to foster a more dynamic and accessible business environment. The platform aims to simplify the often complex process of establishing a new company, reducing bureaucratic hurdles and empowering entrepreneurs across the nation.

Centralized Digital Hub for Business Creation

Directentreprise.ma serves as a centralized digital hub, allowing entrepreneurs to complete all necessary administrative procedures online. This eliminates the need for time-consuming and often frustrating in-person visits to multiple government offices. By integrating key institutions such as OMPIC, the Ministry of Justice, the General Secretariat of the Government, the General Directorate of Taxes (DGI), and the National Social Security Fund (CNSS), the platform provides a seamless and efficient experience for those looking to create a business online in Morocco.

“This digital platform is a cornerstone of our efforts to modernize Morocco’s business environment,”

Phased Implementation and National Expansion

The platform’s journey to nationwide implementation began with a pilot program in Rabat in February 2023. This initial phase allowed industry professionals, including notaries, lawyers, and accountants, to test the system and provide valuable feedback. Following the pilot’s success, the platform was gradually rolled out to major cities across Morocco in 2024. This strategic rollout to cities like Casablanca, Marrakech, Agadir, Tangier, Fès, Oujda, Laâyoune, Béni Mellal, and Dakhla ensured that the platform’s benefits will be accessible to a wider range of entrepreneurs before its full national launch.

Impact and Adoption Metrics

The platform’s adoption has been rapid and widespread. To date, over 12,000 businesses have been registered through directentreprise.ma, demonstrating its effectiveness and the strong demand for streamlined business registration processes. Furthermore, more than 2,400 professionals have registered to provide assistance to entrepreneurs, ensuring that users have access to the support they need to navigate the process.

“This digital platform is a cornerstone of our efforts to modernize Morocco’s business environment,” stated a high-ranking official from the Ministry of Industry and Trade. “By simplifying administrative procedures and leveraging technology, we are empowering entrepreneurs and driving economic growth. We are commited to making Morocco a competitive place for business.”

Legal and Regulatory Reforms Enabling Digital Transformation

The implementation of the online platform necessitated significant legal reforms, reflecting the Moroccan government’s commitment to creating a modern and efficient regulatory framework. Key among these reforms are Law 88.17, which establishes the framework for electronic business registration and support, and Law 89.17, which modernizes the Commercial Code. These legislative changes are part of a broader effort to modernize the administration and attract both domestic and foreign investment.

The success of this project is the result of close collaboration between OMPIC and various government bodies, including the Ministry of Industry and Trade, the Ministry of Justice, and the Ministry of Economy and Finance. This collaborative approach has been crucial in ensuring the platform’s smooth implementation and its alignment with the country’s broader economic development goals.

The initiative signifies Morocco’s commitment to leveraging technology to drive economic progress and create a more business-friendly environment.

Victim of it’s own success?

At the time of writing, directentreprise.ma website is down.

Sources:

La Nuit d’Orient: A Cultural and Musical Celebration in Morocco

On March 21, 2025, the Maison Denise Masson in Marrakech will host a remarkable event—La Nuit d’Orient, a musical and poetic recital that brings together the rich cultural traditions of the Orient and the West. Starting at 9:30 p.m., this unique performance will feature a blend of French melodies, classical and modern Arabic poetry, and Arab-Andalusian music. The event promises to be a captivating experience that showcases the beauty of cultural exchange through music and art.

A Fusion of Music and Culture

La Nuit d’Orient will feature an exceptional lineup of artists: Jeff Cohen, a celebrated pianist; Nasser Houari, a skilled Moroccan lutenist; Mohamed El Mazzouji, an actor and artistic director; and a soprano, whose name will be revealed soon. The recital will present an eclectic mix of musical genres, seamlessly blending French classical music with Moroccan-Arabic musical traditions.

Performed in both French and Arabic, La Nuit d’Orient provides a rare opportunity to experience how music transcends language, connecting diverse audiences through its emotional depth and beauty. The recital aims to promote interculturality, bringing together audiences in a shared celebration of art.

By uniting French classical music and Arabic poetry, the event fosters a deeper understanding of the cultural ties that bind Morocco to the rest of the world. For foreign residents in Morocco, La Nuit d’Orient offers a valuable opportunity to experience local culture through a unique artistic lens. It allows expatriates to engage with Morocco’s cultural history while enjoying world-class performances that highlight the beauty of intercultural exchange.

A Unique Musical Experience

The recital promises a one-of-a-kind musical experience. The sounds of the piano, lute, and Arabic poetry will come together to create an atmospheric and deeply emotional evening. Arab-Andalusian music’s intricate melodies and rhythms will blend seamlessly with French classical compositions, offering an unforgettable auditory experience.

This fusion of musical styles highlights the beauty of cultural diversity and serves as a reminder of the shared human experience that unites us all, regardless of where we come from. The evening will feature songs and poetry that explore themes of love, beauty, and longing—universal topics that resonate with people from all backgrounds.

For foreign residents, La Nuit d’Orient is a chance to discover a new side of Morocco’s musical and poetic traditions, offering a deeper connection to the country’s rich cultural landscape.

Practical Information

La Nuit d’Orient will take place at the Maison Denise Masson in Marrakech, starting at 9:30 p.m. Tickets are available for purchase at the French Institute of Marrakech and on Guichet.com. General admission tickets are priced at 80 dirhams, while members and those under 26 years old can purchase tickets for 40 dirhams.

This event offers an excellent opportunity to experience a night of world-class performances that celebrate both French and Moroccan musical traditions.

5-Dirham Sardine: A Ripple in Morocco’s Seafood Market

5 dirham sardines creates debate about middle-men in the markets

The image of a bustling Marrakech fish stall, with sardines piled high and sold for a mere 5 dirhams per kilo, has ignited a fervent debate across Morocco. This seemingly simple act by a local fishmonger, just ahead of Ramadan, has exposed the complex dynamics of the nation’s seafood industry, raising crucial questions about affordability, the role of middlemen, and the feasibility of sustainable pricing.  

The Cultural and Economic Significance of Sardines in Morocco

Sardines hold a significant place in Moroccan cuisine and culture, especially during Ramadan, when they are a common feature on Iftar tables. Their accessibility has traditionally positioned them as a crucial protein source for lower-income families. However, fluctuating prices, often attributed to the involvement of intermediaries, have made this staple increasingly precarious.

Challenging the Status Quo

The Marrakech fishmonger’s bold move has directly challenged the prevailing narrative of inflated sardine prices. By bypassing the usual channels and selling directly to consumers at a drastically reduced rate, he demonstrated that a more affordable model is potentially viable. This action has resonated deeply with consumers struggling with rising living costs, prompting widespread praise and calls for greater transparency in the seafood supply chain.

However, the 5-dirham sardine has also drawn skepticism and criticism from wholesalers and industry professionals. They argue that such a low price is unsustainable, potentially leading to losses for fishermen and other stakeholders. Concerns center on the costs associated with fishing, transportation, storage, and market fees, which they claim make such a price point unrealistic.

The Middleman’s Grip: Addressing Price Inflation and Official Concerns

The core of the issue lies in the influence of middlemen, whose role in the distribution chain has been a subject of persistent complaints. These intermediaries, often operating between fishermen and retailers, are accused of inflating prices through multiple layers of markups. Consumers and some industry observers argue that streamlining the distribution process by reducing the number of intermediaries could significantly lower prices and ensure fairer returns for fishermen.  

Official sources within Morocco have acknowledged the challenges posed by middlemen. The National Office of Fisheries (ONP), responsible for regulating the fishing sector, has faced numerous complaints regarding price manipulation and unfair practices. Reports from the ONP and the Ministry of Agriculture, Maritime Fisheries, Rural Development and Forests have highlighted the need for improved market transparency and better enforcement of regulations to protect both consumers and fishermen.

For example, reports published by the Economic, Social and Environmental Council (CESE) have repeatedly pointed to the issue of intermediaries and the lack of price transparency in the food distribution sector, including fish. CESE reports have called for a more efficient and equitable system, with better traceability and price monitoring. Furthermore, consumer protection associations in Morocco have frequently filed complaints with the relevant authorities, citing instances of price gouging and unfair competition.

The ONP has attempted to address these issues by implementing measures to improve market information and promote direct sales from fishermen to retailers. However, the complexity of the distribution chain and the entrenched practices of some intermediaries have made it difficult to achieve significant change.

Catalyzing Debate and Questioning Long-Term Feasibility

The Marrakech fishmonger’s act has served as a powerful catalyst for a renewed discussion about these systemic problems. It has highlighted the potential for alternative models, where direct sales and reduced intermediation could benefit both consumers and fishermen. However, the long-term sustainability of such models remains a critical question.

Professionals in the sector argue that the 5-dirham price point may not account for all the costs involved, including the risks associated with fluctuating catches and market demand. They emphasize the need for a balanced approach that ensures fair returns for all stakeholders while maintaining affordable prices for consumers.

Now what?

The debate underscores the need for a comprehensive reform of the seafood distribution system in Morocco. This reform should focus on:

  • Increased Transparency: Implementing better price monitoring and traceability systems to ensure fair pricing and prevent price manipulation.
  • Reduced Intermediation: Promoting direct sales from fishermen to retailers and exploring alternative distribution models to reduce the number of intermediaries.
  • Strengthened Regulation: Enhancing enforcement of regulations to protect both consumers and fishermen from unfair practices.
  • Support for Fishermen: Providing financial and technical support to fishermen to improve their efficiency and reduce their reliance on intermediaries.
  • Consumer Education: Raising awareness among consumers about market dynamics and promoting responsible purchasing practices.

The 5-dirham sardine has become more than just a price point; it has become a symbol of the struggle for affordability and fairness in Morocco’s food market. As the debate continues, it is clear that addressing the challenges posed by middlemen and ensuring sustainable pricing will require a concerted effort from all stakeholders, including government agencies, industry professionals, and consumers. The challenge is to find a balance between affordable prices for consumers and fair returns for the people who work to bring the fish to the market.

Sources and related content

Local fish merchant slashes prices revealing the price gouging of middlemen – TelQuel

Key Findings from Reputable Sources:

  • Economic, Social and Environmental Council (CESE):
    • The CESE has repeatedly highlighted the “dysfunctioning role of the marketing channels” and the “unregulated role of middlemen” in driving up food prices.
    • They emphasize that these intermediaries engage in “speculative practices” that contribute to price spikes.  
    • The CESE has called for government regulation of these middlemen and for increased transparency in the food market.
  • Food and Agriculture Organization of the United Nations (FAO):
    • The FAO acknowledges the inefficiencies within Morocco’s food distribution systems, including the role of “unnecessary yet compulsory middlemen.”
    • They point to the inadequacy of wholesale facilities as a contributing factor to food losses, hygiene problems, and impediments to an efficient food marketing system.
    • The FAO is also involved in projects aimed at modernizing Morocco’s urban agrifood logistics, including the development of new wholesale markets.