Moroccan Business Strengths and Weaknesses
From International Business Wiki
== The Weaknesses of Tourism in Morocco ==
Located in Northern Africa, Morocco is a desert filled paradise where many like to retreat. Much like any country, it has a goal to lure in thousands of tourist each year to entertain. In order to help the economy of Morocco grow, the government must rely on visitors spending their well-earned income while simultaneously creating an image of beauty for the world.
Morocco is a country that is affected by the actions taken by other countries around it. The tourism in this country is largely influenced by the wars of other countries and responds immediately. Recently, Morocco has been in a stronghold in regards to its tourism sector. Since Morocco is located near Iraq it has felt the impact created by the war currently in order with the United States and Iraq. The result of the war has caused the tourism to fade in this country because according to the Jamestown Foundation, Morocco is located in a dangerous vicinity that requires them to increase their security at the borders. For some this increase in awareness may not have any effect, but for many visitors this poses a cautious mentality. In this current period in time the overall trends in tourism for this country are slowly changing based on the fact that a global warning is set in place for that area in the Eastern world.
A major concern for entering traveling to Morocco is the fact that terrorism in the this country has been at a dangerous level. There are incidences where taxis leaving to and from the airports and hotels have been victims of car bombings. Also, many hotels and resorts have had to setup large barricades to prevent any extremists from entering these facilities. The violence which not only occurs around Morocco, but within it is a definite disadvantage to its sector of tourism.
EIU Viewswire indicates that Morocco’s tourist sector is respondent of locals who have left to study abroad and then return to the country during the Holidays. This is a major player in increasing the economy in Morocco. Although that helps to increase the tourism during these specific seasons that does not say much for the country when the source of its tourism comes from citizens leaving then returning cyclically.
Morocco’s government is in a continuous struggle to fill the tourism void. They plan to increase the promotion of the tourism sector with new endeavors. As of now the four and five star resorts do not have the capacity to entertain the amount of guests that would like to stay there. This is a major issue for the country, because it is essentially turning visitors away. Anyone who travels to another country ultimately requires a comfortable stay in a well organized and lavished resort.
Furthermore, the government’s efforts will expand existing resorts and implement many new ones with the long-term goal of strengthening Morocco’s economy through its tourism sector. This country has a great advantage based on the fact that is surrounded by some of the largest and most extravagant bodies of water including the Mediterranean Sea. Resorts located along the coasts of these waters will surely draw in new tourists in the long-term and prospectively the near future. With the abundance of bed space throughout the country there should be a dramatic increase in the number of tourists entering the country each year. The current downturn in tourism should start to fade away and this country’s economy will begin to alleviate the weaknesses which it has felt. All in all, Morocco must continue to face its inherent weaknesses, many of which are out of the countries control. Over time tourism here will flourish and begin to strengthen greatly. The current efforts of the government will prove to benefit its sector of tourism and overall economy.
References
EIU Viewswire (2003) Morocco: Tourism New York http://proquest.umi.com.ucfproxy.fcla.edu/pqdweb?index=0&did=664984901&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1193764436&clientId=20176
Chebatoris, Matthew (2007) AQIM’s Threat to Morocco’s Tourism Sector Global Terrorism Analysis (Volume 5, Issue 11). The Jamestown Foundation http://www.jamestown.org/terrorism/news/article.php?articleid=2373452
Geographic Weaknesses of Morocco
Morocco is a beautiful land with distinct features such as high desert plateaus, lush valleys, and old picturesque fortresses. Morocco lies in Northern Africa bordering Algeria and the Western Sahara. Its coastline includes the North Atlantic Ocean, the Mediterranean Sea and the straight of Gibraltar. The total landscape of Morocco is just over 177,000 square miles or slightly larger than California. Despite Morocco's beauty and Mediterranean climate it has some prominent geographic disadvantages. Morocco has a relatively low store of natural resources, and its inconsistent rainfall makes agriculture extremely difficult.
Morocco is a poor country and this is in part due to its small amount of natural resources. However, it does have a plentiful store of phosphates and citruses (2). Morocco possesses about two-thirds of the world's reserves of phosphates (4). These are exported to make fertilizers and other agrochemicals. This accounts for a majority of Morocco's economy. However, the country still suffers from a lack of energy. Oil explorations have been disappointing and have not proven oil as a consistent and high profit market for Morocco. Low natural resources are one of the reasons Morocco has struggled with building a strong economy and sustaining economic growth.
Another Geographic weakness of Morocco is inconsistent rainfall and extreme variations in climate and geography between its different regions. In the broad coastal lowlands, average annual precipitation diminishes progressively from about 32 inches (800 mm) on the northern Gharb plain to less than 8 inches (200 mm) in the Sous valley. Farther south, beyond the Anti-Atlas, semiarid conditions quickly fade into desert (1)(4). Because of Morocco's mountainous landscape, wind and pressure conditions can determine whether certain areas receive a large amount of rain or experience a drought. Morocco's mountains create a significant rain shadow directly east of the mountains, where in the path of the prevailing winds, desert conditions begin abruptly (4). This greatly hinders the agricultural potential of Morocco. Extensive use of irrigation must be used in order to create a more consistent growing condition. However irrigation comes at a price, as major erosion and silting are frequent. Despite the less than desirable growing conditions, Morocco still is self sufficient in providing itself agriculture.
There are many future plans for Morocco, including making the natural resources that are available easier to exploit and more efficient. The country is actively developing its irrigation potential that ultimately will irrigate more than 2.5 million acres (1 million hectares) (4). Also further oil and natural gas explorations are planned as well as hydro-electric power plants designed to aid the energy needs of Morocco (3).
1. Morocco. (2007) Retrieved October 29, 2007 http://www.bbc.co.uk/weather/world/country_guides/results.shtml?tt=TT000420
2. Morocco. (2007) Retrieved October 30, 2007 http://www.lexicorient.com/e.o/morocco.htm
3. Morocco. (2007) Retrieved October 30, 2007 http://www.mbendi.co.za/indy/oilg/af/mo/p0005.htm
4. Morocco. (2007). In Encyclopedia Britannica. Retrieved October 31, 2007 from Encyclopedia Britannica Online: http://www.britannica.com/eb/article-46576
