The positive economic impact of tourism in Morocco is enormous. According to glObserver, a market research firm, Morocco will have approximately 14 million visitors, with an annual revenue of $8.8 billion by the end of 2016 (Morocco Tourism Profile 2012). It doesn't look like the inflow of money will slow down anytime soon. Foreign investment has poured into Morocco's tourism sector, and international hotel chains are building large resorts across the country. Development is occurring mainly along the coast of Morocco. This will attract real estate investors looking to gain exposure to tourism and real estate markets. While it is good that invested money flows into the country, much of the profits made flee Morocco because foreign hotels send the earnings back to their country of origin. Due to the recent increase in tourism, foreign airlines are increasing the number of routes to the country. In addition to real estate investments, there are other factors that contribute to the influx of money into Morocco. Morocco has a high level of literacy as well as strong government support for the hospitality sector; these factors are expected to contribute to the growth of the tourism industry in Morocco in the years to come (Morocco Tourism Profile 2012). As the tourism industry in Morocco is going, not everything is working well. The Moroccan national airline Royal Air is in serious financial difficulty. The airline loses money on a monthly basis due to high fuel and labor costs. Numerous low-cost airlines have stepped in to compete with Royal Air and expand the tourism industry despite Royal Air's economic difficulties. Socio-cultural: The second area that is important to look at… middle of paper… deals with their environment due to the increase in tourism. Increased tourism is putting a strain on Morocco's water supply. Morocco naturally has a very low renewable water supply. Large hotels, which include huge swimming pools and fancy golf courses, require a huge amount of water to operate. Often, this leaves nearby civilians with little or no running water. While most residents of urban areas have access to running water, many people in rural areas do not have access to it. However, the Moroccan government is trying to take action to preserve the environment. One of the ways Morocco is proactive in protecting its environment is through its planting programs. Every year, two million palm trees are planted and distributed throughout the South with the aim of discouraging the effects of golf course and hotel development (Environment and Ethical Tourism.).