IMF Warns Seychelles Government To Stay on Track

The IMF has issued a warning to the Seychelles government to stay on track.
This report came after the last State of the Nation Address made by then President James Alix Michel, which had numerous largess programs- expenditures which unless offset by higher revenue collection, will risk the achievements made until now since Seychelles went bankrupt in 2007.

Road To Reform Has Been Hard

The road to reform in Seychelles has been a hard slug. The brunt of the burden has rested on the private sector, mainly the Tourism Industry, which since 2007, has faced a loss of yield, resulting from global competition and lower room prices. Today, a hotel room in Seychelles is cheaper then a hotel room in Seychelles in 2007 by 50%. 

In spite of these price cuts, operational costs had stabilized with the reduction in fuel costs, but since the measures of the last SONA have now taken effect, for example, 13 th Month Salary imposition on the private sector, increase tariffs of PUC by 10%, increase of input costs in production of a room night, Seychelles is now becoming more expensive then ever, with Four star and Five star hotels increasing room per night cost by 40% over night, in reaction to increase of inputs in production line.

PL Takes On Recommendation of Praslin Business Community
Two years ago, the Praslin business community advise the PL Minister of Finance to take steps to reduce the tax burden on small business, since we have been suffering since 2007. 

We ask Minister of Finance to take meaningful steps to start taxing foreign owned properties, houses, villas, boats, yachts, their fair share to contribute to the running of the economy. For too long, non Seychellois, have enjoyed a tax holiday by simply investing in Seychelles, while Seychellois invest, and are subject to taxes. It was an unfair situation, that had gone on for too long. SCCI went silent on this key issue.

We support Governments measures to tax charters, yachts, villas owned by non Seychellois, Seychellois, non Seychellois alike. It is about time!

I call on all SCCI members, to resign in writing. Defy the annual membership fees, until such time the SCCI -1. Amends the proxy rules, 2. Changes the Chairman and Vice Chairman who are "yes men in mold" but fundamentally lack courage to stand up for business on key issues.

We note also the Chairman of Seychelles Chamber of Commerce has been reluctant to support this measure to tax charters, yachts, villas.. When the tide is high, there is no room in the sea for non swimmers. 

The Chairman of Seychelles Chamber of Commerce lacks the back bone to represent the private sector and Praslin in particular. He should simply grab Dolor Ernesta hand and resign or go raise honey bees to fight global warming. Stop wasting our time at his effort of self promotion on the backs of the Seychelles business community.

Minister La Rose Says SCR. 900 Million Uncollected

The new minister of Finance, Dr. Peter LaRose advise us SCR. 900 Million is due in revenue and uncollected. The Minister will note, the Praslin business community raised this issue as a warning to the out going Minister Jean Paul Adam. We advise the former minister of Finance, the following: 1. 35% business tax in a micro economy as Seychelles is too high, 2. VAT of 15% is too high for a micro economy as Seychelles, which performs in Tourism sector only 9 months out of 12 months a year at best.  Furthermore, we advise the minister, that given the licensing of over 13,000 rooms, with an average occupancy of 48% nation wide, hotel investments are destined to fail, one and all, with the exception of those highly lined such as Four Seasons, Kempenski, Banyan Tree, Hilton. As a consequence, we advise the minister, because his threshold for VAT is too high, he will face noncompliance, defiance, and non payment. Businesses around the world pay taxes when they are reasonable, and secondly, when the money is spent well on behalf of the contributor. In Seychelles, this is not the case. Hence, the defiance.

I would like to point out, the short fall of 900 Million is a direct result of a Chamber of Commerce, not defending and pushing forward the issues,agenda of the membership, because it is a " Yes  Man " operation delivers this exact result. Therefore, no one in government, nor in business, should be surprise by the results delivered.

GOS Get Back On Track
GOS needs to get back on track, it needs to do it fast. The light on 2017 is burning fast. January registered a reduction in load factor by -60%. Room occupancy therefore must be fluttering at 25% or less. We have lost visibility in Tourism, therefore, for the next traveler, we are not so relevant, they will opt for high visibility destinations such as Cuba, Dominican Republic, Vietnam, Thailand, Mauritius .
Crime is on the increase again, after over 400 prisoner releases, more then Obama commuted in his last days of office for all of America. There is no time to lose with not one more minute of nonsense.
Our beaches are as filthy as they ever have been. Trees fallen from the 2006 Tsunami remain in place, rotting on beaches around Praslin. Nothing has been done, though for years, we register the complaint. Trash and micro plastics are now common on the beaches. We need them cleaned up to retain our image before those that do come to Seychelles.

Sesel Pou Seselwa!