Tourism: Moroccan tax authorities zero in on Airbnb

Inspections are increasing to track down Airbnb rentals that evade tax authorities in Morocco. These rentals represent a significant loss of revenue, which needs to invest heavily in the tourist accommodation sector in the coming years

Par

As summer rapidly approaches, hotel professionals are busy refining their offerings to attract an increasingly demanding clientele. Concurrently, another market is experiencing significant activity: short-term rentals. Fueled by the American platform Airbnb, this market is expanding in Morocco, yet often evading tax authorities, resulting in substantial revenue losses for the state.

« As soon as I list my apartment on Airbnb, I receive requests ranging from a few days to two weeks. For the of May, I’m offering my apartment for 500 to 600 dirhams depending on the duration, but next month, I could rent it out for over 1000 dirhams per day, » says Salma, a young owner of a two-bedroom apartment in Tangier.

Salma, who has been active on Airbnb for two years, admits she has never declared her earnings to the authorities. « I have never paid taxes on the income generated from Airbnb. I have never been audited, and honestly, I never thought about declaring it. Everything happens online; the platform manages bookings and takes commissions, » she explains.

Increasing oversight

However, tourism expert Zoubir Bouhoute believes that this parallel activity -referring to Airbnb and similar short-term rentals- could partly explain the decline in sector revenues over the past two years, despite an increase in tourist arrivals. In March 2024, tourist arrivals in Morocco increased by 10% compared to March 2023, reaching 1.15 million visitors. However, the number of overnight stays in classified establishments decreased by 5% during the same period, totaling only 1.8 million overnight stays. Sector revenues also declined by 6% year-on-year, amounting to 23.7 million dirhams.

“This represents a significant loss for the state, which spends a considerable amount of money on promoting Morocco as a destination.”

Zouhair Bouhoute, expert en tourisme

« The sector’s revenue statistics do not take into account income generated from informal rentals, which unfortunately evade taxes. This represents a significant loss for the state, which invests heavily in promoting Morocco as a destination, only for a few individuals to profit without paying any taxes. It is essential to increase inspections and accelerate sector reform, » emphasizes the former president of the Provincial Tourism Council of Ouarzazate.

According to sources consulted by TelQuel, the control services of the Office of Foreign Exchange have recently launched extensive audit operations to trace international financial transfers intended for owners of properties rented out on Airbnb. These operations have uncovered significant amounts of undeclared income, sometimes exceeding 100,000 dirhams per month, generated by individuals operating multiple apartments simultaneously, primarily in Marrakech, Casablanca, and Tangier.

According to the latest estimates from AirDNA, a platform specializing in Airbnb data analytics, approximately 57,000 properties are listed for short-term rental in Morocco. Focusing on Marrakech, the country’s most dynamic market, there are 13,549 rental properties, including 45% studios, 27% two-bedroom apartments, and 11% three-bedroom apartments. AirDNA’s figures also indicate an average annual occupancy rate of around 42% for Airbnb listings, translating to average annual revenues exceeding 12 billion dirhams.

à lire aussi

A highly anticipated reform

“Our ultimate goal is to offer a significantly enhanced tourist experience.”

Contacted by TelQuel, the Ministry of Tourism, Handicrafts, and Social and Solidarity Economy assures that it is actively working to accelerate the implementation of a reform that will « revolutionize » the management of tourist accommodation establishments and ensure a higher quality of service meeting the new market demands.

This reform, framed within the Law 80.14 concerning tourist establishments, for which two implementing decrees were adopted last June and August (with the publication of application orders expected soon), aims to broaden and diversify the national tourism offering and increase Morocco’s accommodation capacity. It includes integrating new forms of accommodation such as bivouacs and homestays.

The reform also aims to regulate seasonal rental offerings marketed by online platforms like Airbnb, which will require authorization from local authorities based on specific guidelines in the future. « Accommodation occupies a crucial place in our roadmap. Beyond increasing capacity, we are committed to a reform that aims to diversify accommodation options and enhance their quality, » explains Fatim-Zahra Ammor.

A new classification system, established norms in partnership with the World Tourism Organization (UNWTO), and mystery shopper visits are planned to evaluate and control the quality of services offered by different types of tourist accommodation establishments. This effort is particularly geared towards preparing for the organization of the 2030 FIFA World Cup by Morocco and its Iberian neighbors.

« Our ultimate goal is to offer a significantly enhanced tourist experience, both for domestic and foreign tourists. With the additional needs required for organizing the 2030 World Cup, all stakeholders are mobilized to swiftly implement this reform, » emphasizes the Minister of Tourism.

Written by Safae Hadri, edited in English by Eric Nielson