Tourism Arrival Improves But Still No Forex

TOURISM ARRIVAL IMPROVES BUT WHERE’S THE FOREX?

The latest statistics collated by the National Statistical Bureau (NSB) reveals that the number of tourists visiting the Seychelles since the beginning of the year has surpassed most expectations. It is not clear, however, if it has resulted in an increase in foreign exchange in the banking system.

The tourist numbers so far this year is 12% above the same period last year. Europe continues to be the principal source of our tourists and accounts for almost 100% in the rise in the number of arrivals. France remains the principal market followed by Italy.

The most up-to-date survey of bed occupancy available is for the months of January and February. This shows that bed occupancy rose to 50% compared to 46% in 2005 while room occupancy rose to 51% compared to 48% the previous year. Even at that rate the occupancy figures are not encouraging considering that most establishments, apart form the five star hotels, are exposed to the alarming rise in prices due to the distortions of the black market and price controls. While tourism numbers may increase, the number of days spent are on the decline.

Tourism earnings for the year up to the end of May totals SR 286.1 million according to the Central Bank. However, this was 43% less than the same period last year which recorded SR 503 million. This state of affairs should raise considerable alarm at the Central Bank and the Ministry of Finance.