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. 
 
¶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