Page 83 - Valor Hospitality Partners - Casa Anfa Project

MARKET KNOWLEDGE - MOROCCO

• Valor have extensive market knowledge in Sub-Saharan and Southern Africa and have internally researched Morocco and
Casablanca using their internal Revenue Managers from Africa, UK and the USA. Q1 2020 is generally unavailable and certainly with
the recent events surrounding COVID-19, predicting the remainder of 2020 is difficult in any region.

• What is key will be historical trading data and 2017 – 2019 which is generally gloomy with respect to Casablanca. Future growth

prospects however bode well and are very encouraging. The lack of quality 4 and 5 star hotel options in Casablanca also presents a
serious opportunity hence the Valor interest in working with ownership on this very exciting project.

• The following is a snapshot of what we found to be key information for our assessment.

Morocco – Market Overview

In 2018, Morocco received 12.3 million tourists, up 8% from the previous year, and the tourist arrivals in the country totaled 11.3 million
in the first 11 months of 2018, accounting for an average of one million tourist per month and an increase of 8.5% compared to 2017.
During 2000-2018, Morocco had an average annual growth of 6% in tourism arrivals, which is two points higher than growth in global
tourism.

• Chinese tourist arrivals in Morocco grew impressively within three years after the relaxation of visa requirements. These arrivals

increased tenfold from 10,000 in 2015 to nearly 200,000 last year. Marrakech, the top Moroccan tourist destination, recorded over
2.4 million tourist arrivals from January to November, in addition to 2.6 million scheduled hotel stays through the end of 2018. We
believe this number has continued to grow rapidly.

• According to the 2019 Travel Risk Map, in terms of travel safety, Morocco is as safe as most European countries, such as the
United States and Canada, and thereby has a low risk level. By maintaining this level over the last three years, it is the only country

to have a low risk level in North Africa. Algeria and Tunisia are at a medium risk level, while Egypt has a high-risk level.