The Seychelles archipelago in the Indian Ocean has an upscale tourist industry, making tourism, along with fishing, the country’s largest source of foreign revenue. The tourism industry including the villas in Mahe, Seychelles, and hotel suites in Mahe, Seychelles hires more than 20% of the island’s population, accounting for 17% of the country’s GDP. However, a global travel slowdown threatens this vital economic pillar, with government statistics showing that the number of tourists visiting Seychelles last year fell by 7.7% to 122,038 from 132,246 in 2002, a record high.
While higher spending per tourist offset some of the decreases in tourist numbers in 2003 due to the opening of many new five-star hotels like the Best Beach Resort in Mahe, Seychelles. Seychelles’ annual revenue dropped by 4% to $124 million in 2003 compared to 2002.
“The Iraq war and the outbreak of Sars had a lot of consequences in the global travel industry last year,” Tourism Minister Joseph Belmont said. “While other tourist destinations lowered their prices to keep their markets, the Seychelles did not, and as a result, visitors preferred to go elsewhere,” he adds.
The announcement by British Airways, the only carrier with first-class seats, that it will leave in July has also been a setback for Seychelles. The airline announced that it would eliminate two weekly flights from London to Seychelles in order to better use its aircraft.
The tourism industry in Seychelles has been shocked by this, especially the luxury resorts, which charge between $1,000 and $4,000 per night. The BA decision, according to upmarket resorts, would have an effect on their businesses because wealthy visitors would think twice about visiting the island if no sleeper seats are available on any airline flying to the Seychelles.
“Do you think people would be able to sit for up to 15 hours in a crowded economy class seat if they paid thousands of dollars for a night in one of our five-star hotels and villas for rent in Mahe, Seychelles?” said a Seychelles tour operator specializing in luxury vacations.
Luxury Tourism
The Seychelles has some of the best beaches in the world, and it has an abundance of wildlife and natural beauty thanks to nearly half of its landmass being set aside as nature reserves. However, some visitors argue that it is overpriced, which has harmed the country’s reputation as a vacation destination.
“There is an impression that Seychelles is an expensive city,” says Eddie Belle, the Tourism Ministry’s principal secretary. “We want to be able to accommodate all kinds of tourists, not just the rich. We’ve discovered that many who stay in smaller hotels believe they’re not getting good value for their money “he continues.
By September 2001, hotel sales in the luxury sector were already in decline around the world, but the September 11 attacks accelerated and prolonged the trend (Felton, 2003). Areas like the Seychelles, which rely heavily on the luxury market, may be more vulnerable to global tourism slowdowns than destinations that cater to a broader range of tourists.
Ionnides and Holcomb (2003) address the dependence of small-island destinations on upmarket tourism, questioning whether policies aimed at attracting high-spending tourists while restricting the growth of mass package tourism are environmentally or economically justifiable. The consumption of energy and natural resources per capita is lower in mass tourism, and the destination benefits from a broader potential market. However, mass tourism on small islands has its own set of issues, which can have a negative impact on local agriculture, forestry, and fishing economies (Conway and Apostolopoulos, 2002).
In terms of sustainable tourism growth, small island states pose a significant challenge. On a small island, resources are scarce, economic and social activities are concentrated along the coast, and the interconnectedness between the economic, environmental, social, cultural, and political spheres is deep and widespread.
Tourists’ perspective of the Seychelles
Recognizing the importance of long-term tourism growth, the Seychelles released “Vision 21: Tourism Development in Seychelles 2001-2010” in 2001, which outlined the islands’ national tourism strategy. “Tourism in Seychelles shall continue to be established to the highest standards for the maximum social and economic benefit of the Seychelles citizens while maintaining a commitment to the preservation and conservation of the natural environment and biodiversity,” according to the “vision.” Ecotourism, marine-related sports, the promotion of the islands’ cultural heritage, and community-based tourism are all included in the development plan.
The government is encouraging developers to develop a niche market in eco-tourism, which could help generate more revenue, and the number of small, exclusive luxury resorts being built in remote locations is also growing. Analysts, on the other hand, remain skeptical.
“The strategy of creating niche markets in eco-tourism is fair,” according to an Economist Intelligence Unit study on tourism in Seychelles. “However, such isolated projects would have a little wider effect and are less explicit, in both a physical and policy context.” Meanwhile, in the Anse Royal district, the government has launched a range of ecotourism pilot projects.
“With Sars and the war in Iraq, I believe 2003 was an exceptional year, and the security threat has always been in the back of tourists’ minds. In 2004, we will put these events behind us and focus on marketing Seychelles. We anticipate a better year this year “he said
