Seychelles World Bank Comes To Praslin

This week the World Bank officials in Seychelles on a specific mission to assess the Chain Analysis of the Seychelles Tourism Industry came to the second island once a leader in Tourism, and held open, frank,serious discussions with the Praslin business community.

World Bank Lays Down Reality

The World Bank officials laid down the reality of the Seychelles product in no uncertain terms.The Arrivals in the country are up each year for three years by 19%. This means Minister Alain St. Ange at the Ministry of Tourism is bringing in the numbers. St. Ange and his team are in fact meeting the objects of their portfolio: " bring Arrivals into Seychelles". We have seen their initiative when Chamber of Commerce pushed for the opening of the China Market. SHTA still living in the past, waiting for the Paris market to return to its days of glory, opposed this move. The Paris market will not ever be what it use to be pre- 2007. The World is changing, we must adopt or perish. On this St. Ange and Air Seychelles got it right.

The highest spenders today are the Chinese according to the World Bank. SHTA really got this one wrong. Thank God for Chamber of a Commerce.

Cover The Leaks

World Bank says our Yield is -1.4% in spite of all this growth. This is where the alarm bells ring for government and the private sector. It means we are doing some things dreadfully wrong under our policy of running Seychelles with hotels, live a boards, small houses, Eden Island, black market rooms, all competing in the market, with legitimate establishments.

World Bank says Live A Board yachts have not been forthcoming nor cooperative with them to provide information on their business activity or employment patterns. Ironically they also do not pay much taxes given that they control over 1,200 beds in the market. They seem to be the rich rebels in the economic layout of Seychelles Tourism. For some reason,government has known about this for years, on years, but they have done nothing, allowing the traditional establishment segment to take it in the pants when live a boards, rack up guests, do not pay taxes, pollute the environment and trash our coral reefs.

We proposed to World Bank a cap must be set on Live A Boards. Additionally, the fee for a Live A Board, needs to be re looked to discourage mass tourism on bare boats. They should be taxed yearly, not taxed on turnover because they are horrendous when it comes to cooperating with stakeholders. I propose that a basic Bareboat of 38 foot should be taxed up front each year SCR. 350,000.00 every January, for it to run during the year. As the vessel increases in size, the tax should increase as well. This will increase Yield, compliance, and solve the problem once and for all.

Yield Worse In Region

The World Bank says our Yield is the worse in the region. They announced, made it official, we are being out performed by Maldives and Mauritius, hands down. Ironically we are managed by Two (2) monopolies, one to a greater extent then the other. The DMC are handling less and less direct bookings today, perhaps this figure is down from its prowess of 95% in its heyday! to 30% today. But DMC have quietly reinvented themselves into lucrative sectors within the Tourism industry, such as bulk transfers of guests from airports and piers, crunching numbers of taxi drivers, to excursions where they monopolize this sector making entry for Seychellois into Tourism services virtually nil possibility.
On Praslin they control nearly 500 pax per day on excursions. Yet we have 126 license charters.
Greed left unfettered, will have no boundary. World Bank would add- it affects national Yield, and, it is just bad economics. We could not agree more with the World Bank.
Seychelles Chamber of Commerce (SCCI) has led the call to implement anti trust legislation to share the Tourism cake, Mr. St. Ange speaks about so often. In turn the Seychelles Hospitality Association has led the cry to protect the DMC and allow them to flourish as they please in classic monopoly style and fashion. Such practice empowers a select group of friends to benefit from the Industry. The vast majority, will be sucking it up as Yield remain sub par.

The Race To The Bottom

World Bank has noted with serious cause, the " Race to The Bottom" scheme large hotels with fixed structural expenditure per month, are engaging in. Hotels like Savoy, Ephelia, we have been advise, are selling rooms at € 140.00 per night with breakfast, double basis, to meet costs, at low periods. They are also affording the China market these bottom of the barrel rates to in courage loyalty. In turn, the Yield is crushed. One begs to ask is it not time for: anti room price dumping legislation in Seychelles? These international companies were granted approvals on a condition that they were building, delivering a five star product at a five star price for the country to benefit from their presence. If they cannot keep the prices at a reasonable level, we need legislation that will regulate this issue, the World Bank could not agree with us more.

Praslin Is Moving and Shaking

The business community on Praslin today has evolved into a sharp group of business people who know their business, know the issues facing them. One in all, know the numbers, and they know who is eating their lunch. Government is put on Notice: " Deal with the monopoly issue in Tourism".

Antitrust Experts Coming To Seychelles

No sooner them three days after the World Bank left, I received a mail: " Dear Mr. Gill, thank you for hosting the World Bank Meeting. After discussion with Minister Jean Paul Adam, he has ask the World Bank to send a delegation of experts on Anti-Trust Law to draft legislation to propose to government. We will be working on this over the next three months. XXX.

Sesel Pou Seselwa!

May God Bless All Freedom Loving Tourist Operators!