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Monday, February 15, 2016

Seychelles DMC Face PL Ministers!





The Three (3) main Destination management Companies urgently ask for a meeting with Government of Seychelles ministers to address issues affecting their businesses. Creole Travel Services, the lions share of the industry was led by Guillume Albert CEO, Masons Travel, the long time operator, since early days in Tourism was led by Lenny Alvis, and Seven Degrees South was represented by Anna Butler- Payet.

Government was led by robust reinvigorated Minister Joel Morgan, along side was Minister St. Ange, and junior Minister Micheal Benstrong holding a key ministry - " Investment".

DMC Want A Better Deal

The DMC told government they want a better deal. They need better priority access to Port Victoria to take advantage of the lucrative bonanza Cruise Ship segment which has double visits to Port Victoria on the heels of the arduous work done by Our world famous Minister of Tourism Alain St. Ange. Colonel Ciseau they say has denied them access close to starboard of the cruise ships. Lenny Alvis of Masons said: " when Costa comes with 1480 passengers plus crew, Masons is happy to take only 50% of the passengers! and the remaining 50% can be shared by the independent operators. This is fine with Masons he says.

Taxis operators not invited to the meeting complain that they too do not get adequate access to the cruise ship business. Seems everyone wants to get access to the broad side of cruise ships.

We Suffer With Too Much Expenses and Insurance
Creole Travel CEO justified his position of keeping and enjoying the cruise ship meal for his company as he wishes, saying:" we pay over €450,000.00 per year in insurance, we invest a lot in marketing, and we must insure each passenger by 40 Million.....our margins are very,very small". 

DMC From Old Seychelles
The reality is the DMC model is a business model from " Old Seychelles" , it's origins in the age of group tours, group charters, package tours. DMC back then filled demand for excursions by building boats, running them, along side buses, to group handle visitors.


Today, travelers demand independence and freedom to choose. DMC were slow to react to the online tour agency threat for room and airline bookings. Now they have taken refuge in transfers, excursions, out right hotel ownership, to keep every potential cent they can earn from a visitor booking with them.
What groups remain, DMC attempt to control their itinerary 100%.

Minister Benstrong Stands Up Against Monopolies!

Minister Michael  Benstrong faced the DMC and correctly highlighted that they operate monopolistic practices in the Tourism Industry, they must become conscious of this, and change their approach. He said: " you are operating under vertical integration, bare in mind, Praslin and La Digue are small islands, that offer very little opportunity for residents outside of Tourism Industry.....small operators are suffering".


We salute Minister Benstrong for raising the Red flag on these players, who openly say they have no obligation to the Public, and can give their business to whoever they choose. Correct, but you cannot give business to yourself, if you are a DMC in a vertical monopoly. This is where GOVERNMENT must step in to protect the sanctity of the economy, because monopolies are the CANCER of the FREE MARKET.
Most jurisdictions Government will intervene regulate, break a company that becomes a Dominant Player in nanny sector, if it's conduct is detrimental to the overall health of the economy. In USA the cut off is 25 % control. In Comesa countries like Seychelles, 40% cut off.
From what we understand, the two DMC control 50% of the market. It may be more, when you uncover the subsidiary companies, and straw man companies.


Minister Morgan Draws The Line

An energized Joel Morgan raised his hand to draw the line with Creole Travel and Cat Cocos: " you threaten our IMO credentials each time you bring CatCocos to line up with the Port Victoria docks to collect cruise ship visitors. We will not take it!"- Minister interjected.
We salute Minister Morgan on this stance. As Minister of transport he must also look into the safety aspect of running too many passengers on ferries, and excursions with a low crew to passenger ratio. Given a calamity,the crew could not possibly adhere to the safety of so many guests.

St. Ange Call For Balance in Trade

Speaking as mediator, Minister St. Ange called on all stakeholders to work together, compromise, share, to find a way forward so the Industry becomes more inclusive, and less exclusive. " We are all stakeholders in the Tourism Industry, it is our Industry".

Congratulations on all sides for accepting the need for dialogue. We all need each other in Seychelles, dialogue couple with action, is the only way forward.

Sesel Pou Seselwa!

May God Bless All Freedom Loving Seychellois!

4 comments:

Anonymous said...

This is true. Dialogue and compromise is the only way forward.
Well said Mr. Gill.
Who can disagree with you?
SHTA?

Anonymous said...

We must congratulate the ministers for standing up for the free market and Seychellois business suffering from the unfettered callous practices of the DMC.
Now, the message is clear, let us hope they change their approach and attitude.

Anonymous said...

When i look at Seychelles international airport compare to our neighbours,it doed not reflect the quality we want to offer visitors.
We desperately need new terminals,a new airport buildings.
How can we build new airport complexe/terminals without the need to close the whole airport and thereby affect the tourism industry etc.......?
The most effective and madeable option would be to build by different stages.
For instance......
~close up the actual R estaurant on the outside of the international Airport and covert it into a Temporary Domestic Terminal.
~The actual Domestic terminal could be then demolished and turn into a temporary International Terminal.
~Then the actual Int. Terminal can be demolished and rebuild. (Of course with jetways).
As to the closed Restaurant,a temporary wooden opened building could be temporary built where the ugly Clock Tower is.There would be some minor problems,taxi parking, etc that would need to be considered,but generally speaking,for me,that the only practical ,cost and time effective solution to construct a new airport complexe to meet demand and provide quality service.

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