The Minister of Tourism Mr. Alain St. Ange has gone on a media blitz to remind the government, public, tourism operators that Seychelles is simply too expensive. He has called on all stakeholders to sit down dialogue see where they can make adjustments to cut operating costs and cost of food and beverage to not offend Visitors to our shores. He said:" when one visitor gets ripped off from their perception, they go to Tripadvisor tell everyone, thousands view this, and their friends will not come to Seychelles".
Travel Leisure Award Best Destination 2016
St. Ange highlighted what seem to go under the radar completely. Seychelles has been awarded the coveted and much sought after award: " Travel Leisure Best Destination- 2016". This is a great honor that culminates Ten (10) years of government and private sector change in approach. But there is room for improvement and we must improve to re main viable and relevant. For St. Ange it is the crowning of an illustrious career in Tourism that has taken him to the top in the field world wide. He will not be able to accomplish much more without the support of all ministries and the private sector.
The SCR. 140.00 Water Bottle
The Minister announced he was taken offense at a Sunday lunch when the bill presented had detail a bottle of water costing SCR. 140.00. Outrageous he says. But the alarm bell sounds off a stark reality.
A bottle of Pellgrini cost SCR. 38.00 wholesale. Add retail mark up, add service charge 10%, add VAT 15% , add Food and Beverage accepted scientific mark up x 3 , guess what, we get SCR. 150.00.
The same madness applies to Seybrew which retails for SCR. 25.00. By the time it hits the table and location of a Five Star hotel, it will cost SCR. 140.00. Seybrew is nothing more then water, fixed and mixed, with hops and grains aged for 30 days.
We can do better as a country, but it will require give and take on all sides. Better speed it up.
Central Bank Lets Down Tourism
At the point of sale wherein Euros are converted to Seychelles Rupees, the Central Bank plays it's role in making Seychelles a very expensive destination, destroying the opportunity for creating a feel good, good value destination for visitors. The Central Bank has a deficit of hard currency to meet demand. In a phrase this has been caused by a overvalued currency by as much as 20%.
If Seychelles wants to offer better value to visitors, reduce cost of operations, it must start with the Central Bank aligning the Seychelles Rupee to a bonafide rate. Cash flow is better then cash dreams . Take your pick.
Relook at Retail- Wholesale Business
Government must also relook at wholesale and retail businesses. A wholesaler should not be allowed to retail the same item it imports for wholesale. This allows excessive profits, and makes the destination expensive.
Challenges Ahead Massive
The challenges ahead are un daunting. It is unlikely government will be able to keep it all together with the added burden of political largess for two years and bad fiscal policies being put in place to please the voter, initiative by the opposition SNP but Le Pep fell for them without due reflection as to why voters are so irate.
It's not because of something we never had that makes us mad (13th month salary) it is what we have that you do not respect that I rates the Public.
Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellois!
7 comments:
Many items and services are indeed overpriced .Imagine a german whi used to pay a liter of good beer for 80 cent in Germany,must pay 1000Times more for not a bad beer here and made locally.Importi.g beers would cost 100 times cheaper zhan producing locally.Cat coco astronomic price,more rxpensive than a go and return flight to Mauritius.
Seychelles is not unjustifiably exprnsive only for tourists but also seychelles.
Time pl take actions.
In 2007 the Goose that lays the golden Egg was in ICU ready to die any day.
A 5 star hotel room in Seychelles was € 850.00 per night, yet the country faced bankruptcy.
Afif approached the Tourism Industry as PS for Finance and insisted we reduce our rates or perish.
Flights were coming in empty.
Today rates are down, a 5 star is the same price as one in Manila €150.00 per night.
Flights are now empty.
This means the entire destination has a problem.
This is where the Ministers of different ministries have taken Tourism not as a Goose that lays the Golden Egg, but as an Ass that will lay the egg even if you kick it to death , ignore it, even destroy it. This is what has happen.
I salute St. ange for his effort.
I have other thoughts for those ministries who have lent a key hand to destroy Tourism. We are now in serious problems.
Sesel Pou Seselwa!
Christopher Gill
If africa Exim bank did not come to Seychelles we would be empty at Sacoy.
When measure the cost of goods,and services consumed by tourists during a typical weeks beach vacation uses Seychelles as the Benchmark or comparator jurisdiction against which to measure all other destinations in zhe region,it ranks Seychelles as the most expensive jurisdiction in its core“sun,sand and sea“market,which raises concern that its pricing itsels out of reach of too many potential visitors.
Moreover,for Seychelles,classified as High~end destination where consumer price elaticities are lower or negligible,efforts are needed to ensure that product and,service quality remain commensurate with their high~end brand.
Seychelles is too expensive a.d needs to meet the budget of MID market tourism.It is now over priced,and making iit out reach of too many potential visitors~~thus has to reduce its tourism industry costs .
It is a combination of onitiatives that will change the high cost.Seychelles must get it right on tourism value.With structural measures that would improve zhe quality of the tourism product while lowering costs.
What are the examples of " Structural Measures" you refer to?
Tourists are advise by agents before they come to Seychelles it is expensive. So what they do is come prepared. Not to spend, but to go cheap.
Buy water bottles by the gallons
Buy food in grocery shops pack it in back pack
Buy wine hard liqueur in duty free carry it with you for your trip
Stock up on cigarettes and cigars.
Travel agents advise them well early that is why they leave with so much money in their pockets.
They can book rooms last minute when prices are lowest.
Unless government brings down prices which it can, there will be no change in this pattern.
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