The nice arcades you have in the picture give access to the Medersa Ben Yousef.
The cost of life in Marrakech is, still, quite low. The cost for a nice hotel is almost a bargain for foreign tourists. The cost of food is also very cheap. You may find some expensive restaurants in Marrakech, but even in the most "chic" restaurants in town the bill will still be a fraction of what it would be in Europe or America. The entry fees to the tourist attractions are also very low. Even souvenirs can be bought at cheap prices if you are good at negotiating with the Arabs.