she saw loads of gays on the streets and holding hands
I lived in Agadir in Morocco for 8 months back in 1999, and many of the men walk around holding hands and even greet each other with a kiss, but they are not gay, it is just part of their culture.
The strange thing was that if I walked down the street with my girlfriend holding hands and the Police saw us, they would use their batons to separate us by striking our hands.
It is a lot more relaxed now as more holidaymakers are spending time there, but I guess if you still go to the small villages you will still find this practice going on.