Mention Tangiers to most Europeans and they will have a romantic vision of the interwar years when Tangier was a hotbed of spies and espionage or recall the days when Western bohemians such as the Rolling Stones were drawn to the city to smoke kif in Cafe Hafa. Even the ancient Greeks recognised its possibilities referring to it as "the most beautiful city in the world."
Since those heady days the city slipped into obscurity as a combination of political mistrust (the King feared rebellion from his northern most cities) and consequent economic decline fed underdevelopment and poverty. But today Tangier is a city on the move; the sunshine now bounces off the first gleaming facades and the views feature construction cranes amongst the palms.
MASSIVE INVESTMENT TRANSFORMS CITY
King Mohammed VI is the driving force behind this rebirth. He wants to make this ancient trading city relevant to the 21st century, after all the strategic and location advantages of Tangier are the same today as they've always been, it's the gateway between Europe and Africa and the first major port at the mouth of the Mediterranean.
Over 1 Billion euro of public funds have been allocated as a physical sign of the King's intent on top of massive loans from the EU and private investment from France, Germany and the United Arab Emirates. The aim is quite simply to spruce up Tangier, transforming it into the intercontinental hub of trade between Europe, Asia and America. Overseeing this ambitious project is one of the most inspirational local officials in Morocco, Mohammed Hassad, the governor of the Tangier-Tetouan Region and a graduate of an elite Parisian university. Before his appointment in Tangier he was chiefly responsible for the "re branding" of Marrakech, taking it from a dusty desert city to a chic, desirable location attracting over 4 million visitors a year.
Key to Hassad's strategy has been to put in place the infrastructure improvements required to attract European visitors, and the prosperity they bring, back to Tangier. He wants to recreate the glory days from the mid 1920's to the early 1960's when intellectuals and spies injected a dash of glamour and to when Tangiers was seen as an equal with any other major city in Europe.
A KING-SIZED PROJECT
The previous King of Morocco, Hassan II, never visited Tangier, leaving the "rebellious region" to the cannabis barons and smugglers. But the future King spent his early years in the town and could even be seen jogging around some of the leafier suburbs or water-skiing off the beaches. Today he invites celebrities and politicians to his palace on the hills overlooking the Bay of Tangier. His efforts have attracted a string of celebrities and influential people to settle in the town; the fashion designer Yves Saint Laurent, former Spanish Prime Minister Felipe Gonzalez and the philosopher Bernard-Henri Levy.
But the project is far greater than any person, no matter their influence. In July 2007 the King opened the new Tangier Med Port, situated just 35km from the city and built in record time and on budget. This new facility has been so successful that a further extension has already begun creating the largest deep-water port in Africa with a capacity in excess of 8.5 million containers. (As a comparison, Hamburg, the largest container port in Germany only passed this mark a year ago.) It is expected that the port will create in the region of 100,000 new jobs, many of which will be middle and upper management positions taken up by expat professionals on contracts, creating a significant area of demand for rental properties.
Cargo ships will dock here, transferring goods from Asia and beyond for shipment across the Atlantic or for transportation to Europe by truck or boat. In addition, a new roll-on, roll-off dock will be built that can handle 1.5 million vehicles and five million passengers.
The external areas of the Med Port will also benefit from having three new special economic areas covering around ten square kilometres for logistics, industry and trade. It's here that multinational companies are now establishing their operations, benefiting from the absence of import and export tariffs to manufacture and assemble their products and then sending on to the countries with which Morocco has free trade agreements, the USA and the European Union.
As recently as September 2007 Renault Nissan announced the establishment of a new car manufacturing plant in Tangier which will be located on a 300-hectare site inside the Tangiers Mediterranean Special Economic Zone and will use the Tanger Med port. Representing an investment of more than €600 million, the complex will create 6,000 direct jobs and 30,000 indirect jobs.
FURTHER TRANSPORT IMPROVEMENTS DRIVE GROWTH
Where today the centre of town is clogged by traffic from the port and the loading bays and cranes blot the skyline, soon the centre of town will be transformed as the existing port is remodelled into a luxury marina attracting the largest ocean going yachts and the world's richest people to the city. The sweeping bay of Tangier has the potential to become one of the most picturesque on the Mediterranean rivalling Monaco and Palma for glitz and glamour with expensive yachts bobbing off shore and refined restaurants and boutiques lining the promenade.
And the ambitions don't stop there. Plans for a tunnel from Tangier to Spain are underway which will make the technical challenges faced by the Channel Tunnel look like "child's play", according to the respected tunnel builder Giovanni Lombard who at 80 years old may never live to see his greatest achievement completed. So don't ditch the ferry tickets yet, the earliest date for completion is 2025.
It is anticipated that this final link will enable high-speed train travel from London to Tangier and Marrakech to become a reality, maybe even one day stretching the length of Africa to Capetown. A bid of several billion euro was recently accepted from a French consortium to link Tangier to Marrakech by TGV high speed train taking the journey time from around eight hours down to just two.
The international airport that serves Tangier, Ibn Battuta International, has been undergoing some extensive improvements, which include a new multi-story car park and baggage handling facilities to enable it to receive a greater volume of flights. Previously the airport had been served only by the flag carriers Royal Air Maroc and British Airways who charged premium rates and controlled the routes. However the Open Skies Agreement signed between the Moroccan Government and the EU has opened up air travel to the Kingdom and the low cost carriers are beginning to announce new routes to Tangier. Easy jet recently opened a service from Madrid and will shortly be starting services from Barcelona and the UK.
TOURIST NUMBERS EXCEED EXPECTATIONS
The Vision 2010 Programme, launched by the Moroccan Government in 2001, aimed to increase tourist numbers to 10 million by 2010. At present the number of tourists stands at 9.4 million, only 600,000 short of the total - an incredible achievement given the global economic conditions. The new air routes and marketing campaigns in Northern Europe have been successful.
Revenue from the sector increased last year to .5 billion compared to 3.5 billion during 2006, itself an increase of 29.9% on the previous year. Moroccan government statistics also show that tourism revenues have increased at a greater rate than arrivals, suggesting that Morocco is increasingly attracting high spending tourists rather than the mass-market all-inclusive visitor.
BUT WHAT DOES THIS MEAN FOR TODAY'S PROPERTY INVESTOR?
When the world's largest residential developers Emaar and the creators of Sun City in South Africa decide to invest in a country, there's obviously something going on. Property investors should see these ventures as a massive vote of confidence in Morocco and a sign that this growth is a sustainable long term project from which they can make real returns rather than a speculators bubble created by an influx of speculators.
High levels of Capital Growth - As property prices in established Northern European markets are increasingly affected by the global credit crunch and a loss of confidence, property investors are looking at Morocco as a country in which they can earn the returns they previously enjoyed from their property investments.
The imminent entry of low cost carriers to Tangier airport provides investors with an immediate investment opportunity in Morocco. One of the best routes to successful property investment is to buy in an area that is about to go up in the world. Recent research by Savills and Holiday-Rentals indicated that property prices within 10 miles of an airport served by a low-cost airline are nearly 40 per cent higher than those of properties a similar distance from airports with scheduled services only, and that the rents were about 30 per cent higher. It seems that holiday makers want to save on the air fare but are willing to spend extra on the accommodation.
Increased Rental Demand - The North African Times recently correctly identified these trends as resulting in an increased demand for rental property. As more visitors discover Morocco it is clear that there will more holiday lets and requirements for self-catering accommodation.
10 REASONS TO CONSIDER MOROCCO FOR PROPERTY INVESTMENT
1. Never to be repeated entry level prices - similar to Spain 20 years ago.
2. Sleeping giant of Mediterranean tourism - less than 3 hours from the UK & Europe.
3. The Open Skies agreement opens Morocco up to low cost airlines.
4. Vision 2010 has increased tourism, improved infrastructure and revolutionised the property market.
5. Year round warmth means 12-month season.
6. Strong political backing combined with substantial government investment.
7. Massive private sector investment.
8. Tax regime favourable to investors - 0% IHT, 0% CGT after 10 years, 0% Income tax for 1st 5 ownership years.
9. Shortage of European standard rental accommodation for international business.
10. 100% repatriation of profits on sale.
