The Tourism Industry of Seychelles is exposing deep weaknesses that if left unfettered over the next three (3) months, it will derail the Archipelago's number one earner of hard currency. Let's look at the issues.
Seychelles Too Expensive!
Costly Food
Seychelles number one problem in regards to its image is that it is simply too expensive. Visitors cry while on holiday here. The cost of food is astronomical, due to lack of any consumer protection in place. This allows Dubious Indian store keepers to rip off operators, who in turn pass the high outrageous costs to Visitors.
Costly Transport and Fuel
Fuel costs are too high. government imposed an excise tax on fuel recently, on top of other taxes, making fuel now SCR. 17.41 per liter. This high cost affects the price of excursions, and make use of a car rental outrageous when combined with the € 60.00 rate per day. Car hire companies pay 150% on vehicles imported, along with 15% VAT plus and an excise tax on imports. A vehicle safe life span in a high salted climate is 5 years. Tires are replaced every three months because roads are so,so pitiful. Road tax is SCR. 1.50 per cc. Imagine.
Room Cost Nuts!
One night in a five star hotel in Seychelles will cost you the same as Five nights in a five star hotel resort in Mauritius or Maldives. Simple.
These astronomical costs are a result of high bank interest rates, 15% is common, high imported labor cost, which include housing and meals, uniforms for staff, transportation externally and internally, high VAT at 15% for a micro economy. The unproductive, lack of discipline in the young Seychellois labour force who are taught that a job is a price legs for the employer, augments costs of rooms.
Recently, Seychelles legislature passed a whopping 13 th Month Salary Scheme for private sector staff, dealing a 40% increase in input costs for the industry.
Death To The Industry
The Industry is facing a cardiac arrest. National room occupancy hovers at 42% a dismal performance. National yield is down -2 % load factor of planes in bound are -40%. Word has leaked that Air Seychelles will abandon the direct link flights to China. A no excuse to flop route, except for the prevalence of stubborn stupidity. If we lose the China market, we lose a key market that has huge potential, and the bottom line, is it kept the rooms full while European markets slacked off and opted for cheaper rooms in Mauritius and Maldives.
Mauritius , Seychelles or Maldives
One of the most popular questions today on travel forums is where to travel: Mauritius, Seychelles or Maldives.
The Le Pep government led by Mr. Danny Faure, the LDS run by Mr. Ramkalawan will both be happy to learn, that Seychelles is the last choice of the three destinations, but we have a 13 th month salary, free health care ( though a failing service), free education ( though the worse test scores in the World) , an incredible taxing scheme, though money is also incredibly mis spent across the national spectrum.
As long as Business has weak leaders, they will continue to take it in the pants.
Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellios!
5 comments:
I don't agree with the statement that small shopkeepers rip off the public.
They provide a service opening very
long hours till late at night sometimes up to 11pm and on Sundays and public holidays.
They are from poor backgrounds and extraordinarily hardworking,
I know of one who wakes up at 3am
to put the freezer on so that people
will get cold drinks when they come in
the morning. There is a cost to this
labour.
If there is any shop ripping people off,
it is STC who appears to be working
Of 400-500 percent margins. That is
daylight robbery.
But the largest expense for any hotel
is salaries. labour is too expensive
for the level of productivity they provide.
so let's not blame the guys who actually
do work.
8:39
A kilo of beans a farmer sells for SCR. 30.00 a kilo.
The Indian shop keeper who wakes up at 3:00 am to stock his fridge for the day as you put it, resells this bean for SCR. 90.00 per kilo.
10 kilos of beans which fits into my bag nets SCR. 600.00 for this shop keeper.
This is stealing. Whether or not you agree with it.
This is pricing irresponsibly, whether or not you like it.
This practice applies to most goods, whether or not you like it.
If shop keepers cannot become more fair in pricing, we need to address this with the Hindi priest, and Indian High Commission.
Stop defending the un defendable.
Maybe we need to give FTC POWER TO SHUT DOWN THEIR STORES FOR NON COMPLIANCE WITH REASONABLE PRICING SCHEMES.
Christopher Gill
While Seychelles is unique and ahs always been more expnsive than its neighbours in this region ....it is unfortunately shooting herself in the feet with its astronomic and unjustified overdozed prices.Five star hotels overcharging -----for the needs to pay for the empty rooms they cannot fill up ...hotel were built too big ......(often with the aim in head to blocked unofffically beaches access to Seychellois and avoid others to build near them and be their competitors)......
I donot know if the new minister of tourism is or not competent ,,what we can say to date ..is he seems lost and donot know where to get started .........
What is clear though ,is that he must act rapidly .....the industry cannot afford to wait ...it must have clear policies coming from the government to act....
We need less speeches from our ministers and more actions .....
8.39 it is not the time of opening or closing that make them riped customers .....it is the intension to ripe .....could these illegal indains tell us why when tomatoes in sri lanka is twenty times lower than in Seychelles that imported toamtoes in their shops from sri lanka cost thousand times its original price including imprt fees etc..?well ,they cannot justified it ,,for it is simply using the opportunity bcecause we have a tomatoes shortage to ripe customers ..and pl government has a duty and obligation to protect customers by going after these opportunites riping customers.of coruse prices are set y the market forces---but however government has a duty to ensure fairness and q abuses ... I guess PL government have Governemnt Price controller for dealing with such cases ?If yes ,times to get to work guys nad stop those hiking prices artificially.
Pl must deal with price hikes ,over charge and ensure that Seychelles is competitive to its high performing neighbours .........
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