Troukler - Less means more for visitors.

Troukler

Less means more for the visitors!

Seychelles is reputed to be an expensive destination. However, some visitors are finding that when they eventually get here Seychelles is without a doubt affordable, in certain cases very affordable depending on where you are staying. This is not as a consequence of anything that this government has done. In fact it is totally the opposite. It is the result of what the government has not done or cannot do. This Government has tried but failed in curbing the parallel market in foreign exchange. The reality is that powerful people in the government, some sitting on the Cabinet of Ministers, are heavily involved in the foreign exchange black market, especially those importing for business purposes.

The rupee is losing value fast against the US dollar, Euro and the Pound Sterling. The thirteen rupee Pound is almost upon us again. The government has not succeeded in pulling enough outside interest (investors) for participation in the local economy to solve the foreign exchange shortages. The truth of the matter is that certain investors have come in with nothing and this government has facilitated millions in hard currency for their projects. On top of that, concessions of every kind are given; tax exemptions, social security exemptions, free GOPs’, duty free vehicles for business and personal use, etc…….

The Central Bank has already reported that in spite of the fact that we received a record numbers of visitors last year, over 140,000, the foreign exchange earnings from tourism establishment going through the local banks have gone down compared to previous years. One contributing factor to that situation, no doubt, is the parallel foreign exchange black market, which is being encouraged by some top people in government.

Let us analyse together the following scenario: A visitor arrives in Seychelles with 2000 American Dollars which he plans to spend during his stay in paradise. He has barely entered the country when he is solicited for the green backs he carries in his back pocket. Before twenty four hours in the country he discovers that he can fetch twelve rupees for his dollar. He decides to change 1000 dollars and through some negotiations manages to get ten Seychelles Rupees for his dollar - making him a grand total of ten thousand rupees for a week’s holiday in paradise. Now you know why the destination has managed to keep its title of “paradise on Earth”.

The hotel and car hire firm having been paid for through the travel agent in his country of origin, our man has ten thousand rupees burning a hole in his pocket. It is more than enough for seven days in Seychelles since, although we are a high priced destination, we are the only one that doesn’t sell luxury goods in the shops in town thanks to price control. He will go back with one thousand dollars he had planned to spend during his stay over here. This is what you call making a profit on holiday, it can only happen in Seychelles where the SPPF has been in charged for over thirty years!

IS THE CENTRAL BANK PRINTING MONEY AGAIN?

The Central Bank has started printing crisp brand new R.500 notes which are expected to be dished out around election time this year. This exercise was prominent and being practiced openly during the Presidential election campaign. Some of the notes were even claimed to be fake and some businesses refused to take those notes as legal tender. Excess liquidity is exactly the same problem which was blamed for the foreign exchange crisis which now looms large over our country. It is hard to fathom why the government has gone back full circle on its promises and commitment to mop up liquidity in the economy. This clearly shows that the SPPF government has no intention of genuinely resolving our economic problems but is rather inclined to pay lip service only. You cannot only talk the talk, Mr. President. You have to walk the walk too.