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Viewing cable 06RABAT2351, MOROCCO-EU OPEN SKY AGREEMENT FEEDS TOURISM BOOM

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Reference ID Created Released Classification Origin
06RABAT2351 2006-12-29 17:12 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Rabat
VZCZCXRO6791
RR RUEHBC RUEHDE RUEHKUK RUEHROV
DE RUEHRB #2351/01 3631712
ZNR UUUUU ZZH
R 291712Z DEC 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 5484
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUEHLO/AMEMBASSY LONDON 3189
RUEHFR/AMEMBASSY PARIS 4494
RUEHCL/AMCONSUL CASABLANCA 2510
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/FAA NATIONAL HQ WASHINGTON DC
UNCLAS SECTION 01 OF 02 RABAT 002351 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR NEA/MAG AND EB/TRA 
USDOC FOR ITA/MAC/ANESA 
 
E.O. 12958: N/A 
TAGS: EAIR ECON MO
SUBJECT: MOROCCO-EU OPEN SKY AGREEMENT FEEDS TOURISM BOOM 
 
 
1. (U) Summary: Morocco's booming tourist industry received a 
boost on December 12 with the signing of a new EU-Morocco 
open sky agreement.  The agreement replaces all existing 
Moroccan bilateral aviation agreements with European Union 
(EU) member states and supports the GOM's goal of doubling 
the number of tourists that visit Morocco each year to 10 
million by 2010.  In principle, the agreement provides 
reciprocal, unlimited access between European and Moroccan 
destinations, but complete ratification among EU members 
along with Moroccan compliance with regulatory aspects of the 
agreement may take up to 18 months.  End Summary. 
 
------------------------- 
More Than Just Open Skies 
------------------------- 
 
2. (U) The primary objective of the EU-Morocco open sky 
agreement is to provide reciprocal, unlimited access between 
Moroccan and European destinations.  The first phase, which 
went into effect with the agreement's signing on December 12, 
permits direct country-to-country flights, known as third and 
fourth freedom rights.  Fifth freedom rights, which enable 
airlines to carry passengers to a reciprocal country, and 
then on to an additional country (rather than back to their 
own), will commence in the second phase of the agreement, 
following EU member ratification and Moroccan implementation 
of relevant EU aviation laws.  Abdelouahab Yaalaoui, Director 
of Civil Aviation and lead Moroccan negotiator for the 
agreement's regulatory aspects, was non-specific when asked 
about Morocco's implementation requirements, telling econoff 
they were operational in nature. 
 
3. (SBU) While the new agreement is intended primarily to 
expand access to the Moroccan tourism sector, it also 
includes key annexes on safety, air-traffic control, 
regulatory management, and passenger security.  According to 
Yaalaoui, the agreement requires Morocco to achieve EU safety 
and regulatory standards that are above and beyond those 
required by the International Civil Aviation Organization 
(ICAO).  As a result, Yaalaoui said his office was expanding 
in order to comply with the regulatory requirements of the 
agreement and to manage the upgrade of Morocco's aviation 
infrastructure.  He said the intent was for civil air traffic 
to experience a seamless transition in and out of Moroccan 
airspace, just as if they were transiting between France and 
Germany.  He added that Morocco would expand its air-traffic 
control capabilities, improve aviation safety, and strengthen 
passenger screening.  He also acknowledged that Morocco 
cannot afford to compromise air-traffic safety as it strives 
to expand tourism. 
 
4. (U) Morocco's support for the open sky agreement sprang 
from its desire to increase tourism.  According to the 
Minister of Transport, Karim Ghellab, tourists comprise 
two-third's of Morocco's air passengers, which will require 
Morocco to raise air passenger capacity to approximately 15 
million per year if it is to meet its goal of attracting 10 
million tourists by 2010.  Ghellab explained that without the 
new agreement, Morocco would have to invest more than USD 3.3 
billion to expand Royal Air Maroc's fleet by 60 new planes in 
the next five years in order to meet the 15 million target. 
 
5. (SBU) In the short-term, low-cost carriers may have 
difficulty expanding their service.  In June 2006, EasyJet 
and Ryanair initiated service to Morocco under previous 
bi-lateral agreements.  Expecting the new EU-Morocco open sky 
agreement to go into effect at signing, Ryanair 
(headquartered in Ireland) planned to expand service from 
Germany and France by taking advantage of the agreements 
fifth freedom rights.  In November, however, Ryanair 
announced that it was forced to postpone these plans 
indefinitely due to a ratification issue within the EU. 
While in principle, the EU-Morocco open sky agreement went 
into effect at signing, several EU members have voiced the 
need for national (internal) ratification, a process that 
could take up to 18 months.  Reportedly, French transport 
officials oppose expanded fifth freedom rights under the new 
accord until internal EU ratification is complete.  Comment: 
Morocco was the largest French passenger growth market in 
2006, up more than 26 percent from 2005.  Many observers 
interpret France's tough stance as an attempt to protect Air 
France's dominant position in the market.  Until the 
ratification issue is resolved, phase two of the agreement 
 
RABAT 00002351  002 OF 002 
 
 
and its fifth freedom rights appear on hold.  End Comment. 
 
--------------------------------------------- - 
The Agreement Will Support, Not Create Tourism 
--------------------------------------------- - 
 
6. (U) While the agreement is intended to expand air service, 
increase competition, and lower consumer costs, the African 
Airlines Association (AAA) notes that open sky agreements in 
themselves are not major tourism development drivers.  For 
example, Tanzania, Mali, Cape Verde, and Ghana have all 
signed open sky agreements with the U.S. without any positive 
impact on their tourism industry.  Instead, the AAA and 
UNESCO believe markets must develop consumer demand through 
product packages. 
 
7. (SBU) According to Philippe Queau, Mahgreb Regional 
Representative for UNESCO, Morocco will need to continue 
development of its unique historical niche to sustain growth. 
 While Morocco's beach resorts must compete with other 
popular European destinations, Queau believes that Morocco's 
future tourism potential lies in the development of its 
cultural, historical, and architectural features.  In a 
December 21 conversation with econoff, Queau remarked that 
Morocco's Casbahs, Riyads, and ancient heritage offer 
Europeans a unique experience.  As part of UNESCO's cultural 
pillar, Queau said his office was actively engaged in 
restoring historical buildings in Meknes and Fes in order to 
make the area more attractive for tourists, thus creating the 
demand for expanded traffic. 
 
8. (SBU) Comment:  The EU-Morocco open sky agreement serves 
notice of Morocco's intent to become a leader in modern air 
commerce and represents a significant milestone in its goal 
of doubling the number of tourists that visit each year. 
Nonetheless, Morocco faces a formidable task ahead in order 
to achieve European air-traffic control and regulatory 
standards.  The majority of Moroccan airspace remains 
uncontrolled, with full radar service limited to just a few 
terminal areas.  Furthermore, the office of the Director for 
Civil Aviation faces a daunting task as it reinvents itself 
to become the Moroccan version of the FAA.  While full 
implementation of the agreement's fifth freedom rights is 
still months, if not years, away, all indicators point to a 
continued boom for the Moroccan tourism industry.  In the 
meantime, Morocco must continue to seek a balance between 
developing a tourism industry that attracts increased numbers 
of European vacationers and preserving the ancient cultural 
heritage that makes it unique.  End Comment. 
****************************************** 
Visit Embassy Rabat's Classified Website; 
http://www.state.sgov.gov/p/nea/rabat 
****************************************** 
 
Riley