Identifier
Created
Classification
Origin
07RABAT786
2007-04-30 16:04:00
UNCLASSIFIED
Embassy Rabat
Cable title:  

NATIONWIDE ECONOMIC IMPACT OF CASABLANCA BOMBINGS

Tags:  ECON EFIN EINV MA 
pdf how-to read a cable
VZCZCXYZ0002
RR RUEHWEB

DE RUEHRB #0786/01 1201604
ZNR UUUUU ZZH
R 301604Z APR 07
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 6449
INFO RUEHAS/AMEMBASSY ALGIERS 4403
RUEHMD/AMEMBASSY MADRID 5709
RUEHTU/AMEMBASSY TUNIS 9277
RUEHCL/AMCONSUL CASABLANCA 2996
UNCLAS RABAT 000786 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN EINV MA
SUBJECT: NATIONWIDE ECONOMIC IMPACT OF CASABLANCA BOMBINGS
REMAINS LIMITED

REF: A. RABAT 751

B. CASABLANCA 85

Sensitive but Unclassified-- entire text. Not for internet
distribution.

UNCLAS RABAT 000786

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN EINV MA
SUBJECT: NATIONWIDE ECONOMIC IMPACT OF CASABLANCA BOMBINGS
REMAINS LIMITED

REF: A. RABAT 751

B. CASABLANCA 85

Sensitive but Unclassified-- entire text. Not for internet
distribution.


1. (SBU) Summary: The series of suicide bombings in
Casablanca over the last month and resultant country-wide
security alert has had only a limited economic impact.
Tourism, Morocco's major source of foreign exchange revenue,
has remained resilient. Major destinations including Fes and
Marrakech remain almost fully booked, and international
carriers report few if any cancellations. Industry sources
argue that with increasing understanding that terrorism is a
worldwide phenomenon, investors and tourists alike have
factored the heightened risks of the last month into their
assessment of Morocco, and continue to view it as acceptable
or "normal." While they have not sought to conceal the
reality of the security threat, and indeed revealed this week
that dismantled cells were planning to attack such tourist
destinations as Essaouira and Marrakech, Moroccan officials
will doubtless remain vigilant to signs of slippage in the
sector, given its economic importance. End Summary.


2. (SBU) The series of suicide bombings in Casablanca over
the last month has not had an immediate impact on the
critical tourist sector, according to both industry and
government sources. Hotel managers, travel agencies, and
airlines, among others, report continued strong demand, and a
lack of mass cancellations. Tourism Ministry Secretary
General Hassan Kacima told us on April 27 that the Ministry
has stayed in close touch with associations representing both
hotels and travel agencies, and that all report little
impact. "There have been no wave of cancellations," he said,
and he contrasted the reaction with that which followed
September 11. Travellers, he suggested, now understand that
terrorism is a global phenomenon that can strike anywhere at
anytime. He stressed that this resilience has occurred even
as Moroccan officials have been forthright in emphasizing the
existence of a potential threat, and the need for continued
vigilence. The major tourist impact thus far appears to be a
decision by some major cruise lines to forgo scheduled stops
in Casablanca, as well as a similar decision by some American

tourists (Americans make up only a very small percentage of
the Moroccan tourism market-- approximately 1 percent).


3. (SBU) This relative calm in the face of the heightened
security alert was evident at Morocco's Annual "Assises du
Tourisme" on April 28 in Fes. Over two thousand industry
operators, including several hundred from overseas, gathered
to note the progress Morocco has registered on the road to
its goal of 10 million tourists by 2010, and to launch the
final phase of the program. A confident Tourism Minister
Adil Douiri emphasized that Morocco is no longer speaking of
a "goal" of 10 million, but rather predicts that this level
will be attained with ease. The mood of the gathering was
celebratory rather than tense, with applause and cheers as
foreign tour operators and airlines outlined their plans to
raise and in some cases double their capacity into Morocco.
The reality of the country's current security alert was
evident only in a few brief references to the need for
continued security vigilance, and in the extensive security
that surrounded the meeting venue in Fes: clearly Moroccan
authorities were taking no chances with this flagship event.


4. (SBU) This apparent calm is also reflected in the limited
number of calls post fielded from concerned American citizens
and businesses in the wake of the Casablanca incidents.
While some journalists have called us to ask worriedly about
the potential impact on tourism and investment, no investors
themselves have called. Wassin Kabbara, a Moroccan-American
who is managing a tourism investment fund here, argues that
businesses have internalized the risks. Even in the wake of
recent incidents, he believes, they still view the situation
in Morocco as "normal," and far more secure than the
situation in some other countries in the region.


5. (SBU) That assessment is apparently not fully shared by
all segments of Moroccan society. As reported Reb B, the
bombings' major economic impact to date appears to be
centered on upper end shopping and entertainment venues in
Casablanca. Some restaurants and clubs report a drop off in
business of 30-50 percent in the two weeks since the April 14
incidents. High end boutiques have seen a similar pattern.
Patrons of these establishments, in informal conversations
and in interviews with media outlets, including "Maroc
Hebdo," profess that the bombings in front of the Consulate
and Dar America brought home to them in a new way the reality
of the threat, and the realization that it could extend out

of the inner city slums where it was earlier concentrated.
For the time being, many have opted to forgo their normal
night out on the town, to avoid frequenting establishments
that they perceive could potentially become terrorist targets.


6. (SBU) Comment: We will continue to closely monitor the
situation surrounding Morocco's tourist sector, given the
pivotal role it plays in the country's balance of payments.
For now, however, it remains resilient, even as Moroccan
officials continue to highlight the seriousness of the
security situation in their public comments.

******************************************
Visit Embassy Rabat's Classified Website;
http://www.state.sgov.gov/p/nea/rabat
******************************************

RILEY