A look at some of the competition: The Seychelles Islands limit their tourist visits per year

Nice place, The Seychelles Islands. They were hit badly last January by tropical cyclone Felleng that destroyed hundreds of homes and businesses, but according to press reports are well on their way to full recovery and so are their tourism arrivals. Their client markets in Europe are the same as ours, with the addition of France that is not a large market for Barbados tourism.

The Seychelles limit the number of tourists per year to 150,000, and only allow so many tourist beds per island so the country can retain its environment and social feel. It also avoids price wars between hotels and keeps tourism a viable business without the social destruction caused by walling off the coasts with hotels all struggling to stay alive in a market where the lowest price and least profit “wins” – if you call that winning.

A pity some of our Bajan leaders were not of the same mind decades ago.

“Under the 1990-94 development plan, which emphasizes that the growth of tourism should not be at the expense of the environment, the number of beds on the islands of Mahé, Praslin, and La Digue is to be limited to 4,000. Increases in total capacity are to be achieved by developing the outer islands. To avoid future threat to the natural attractions of the islands, 150,000 tourists per year are regarded as the ultimate ceiling. The higher cost of accommodations and travel, deficiencies in services and maintenance of facilities, and a limited range of diversions handicap Seychelles in attracting vacationers at the expense of other Indian Ocean tourist destinations”

Wikipedia’s entry for Tourism in Seychelles

“In 1971, with the opening of Seychelles International Airport, tourism became a serious industry, basically dividing the economy into plantations and tourism. The tourism sector paid better, and the plantation economy could only expand so far. The plantation sector of the economy declined in prominence, and tourism became the primary industry of Seychelles.”

… Wikipedia’s entry for The Seychelles

23 Comments

Filed under Barbados, Barbados Tourism

23 responses to “A look at some of the competition: The Seychelles Islands limit their tourist visits per year

  1. Moneybrain

    The question is whether or not The Seychelles strategy is to promote Premium Class Tourism only. If so limiting arrivals lends cache and exclusivity.

    In the mid 1970s, aged 20, I wrote my dissertation on Barbados Tourism and concluded that with an already over populated island we should pursue Premium Tourism and NOT “Hamburger and Chips” package tours where we get all the sociological negative impact but very little profit since most of the cash never passes through Bim.

  2. Iain

    The Seychelles Tourist Authority regularly mail out press releases to the world tourism industry. You rarely, if ever, see anything from the BTA. It’s not difficult, but this lack of basic understanding of how the industry works speaks volumes about the proficiency of the island’s so-called tourism ‘experts’.

  3. Adrian Loveridge

    Moneybrain,

    Its a different kind of thinking. Lets look at the economics of the latest BTA promotion, Barbados Island Inclusive. The BTA are spending 11 per cent ($11 million) of their entire current fiscal year budget to HOPEFULLY attract
    an ‘additional’ 15,000 long stay visitors, who are predicted to spend $30 million. After expenses, that’s an average of US$90 per person per day, based on a 7 night stay.
    One of the US’s largest tour operators is currently offering return flights (New York/Barbados/New York) with JetBlue and 7 nights at a 3 star hotel on the south coast for US$627 per person. Lets say the TA is paying US$350 for the flights and is working on a margin of 20 per cent. That’s leaves US$151.60 for the room of US$43.31 per ROOM (2 persons) per night including VAT. Then take away the Barbados Island Inclusive ‘FREE Spending’ vouchers of US$200 person and you have a net spending deficit of US$96.80 for two persons over 7 days. The gamble maybe, that after using their ‘FREE’ (taxpayer funded) Spending vouchers, these visitors will go on and spend another US$678.40 per person to even HOPE to justify the economics of the promotion.
    One more look at the economics. BDS$11 million (or 11 per cent of the entire current fiscal year BTA budget) to attract an ‘additional’ 15,000 long stay visitors, or less than 2.75 per cent of the total of 2012 arrivals, who MAY spend $30 million which represents 1.5 per cent of the anticipated gross revenue from tourism this year.
    Does it make any sense to you?

  4. Anonymous

    Sorry TA should be TO (Tour Operator)

  5. Yatinkiteasy

    I bet they do not allow All Inclusive Hotels to operate there.

  6. Moneybrain

    @Adrian
    It should be unnecessary for you to prove that Political involvement in business strategy leads to losses. Government should have a seat at the table BUT should get out of business peoples way since they are the ones taking the risk and therefore must get strategy right. Facilitate should be Govts mantra!

  7. just want to know

    The MoF said in today’s paper on the back page he is going to give assistance to hoteliers and other tourism entities help. I trust it will be dropping VAT taxes to 15% or less, before he can see any improvement in spending power in this country.

  8. Carson C. Cadogan

    The Tourism industry need to start helping themselves. This cap in hand thing is demeaning.

    The public purse is not a bottomless pit.

  9. just want to know

    No one in the hotel Industry is asking government (taxpayers ) for $ & cents, what they are asking for is to lower the taxes on refurbishment material, make it a little cheaper for importing some things that cannot be had in Barbados. This country is much, much too expensive for locals & tourists alike. Just take a look at the number of hotels closing down, that alone should say something is not right. Use the money that is being allotted to the ministry of tourism in more appropriate ways.

  10. Anonymous

    Carson,
    Are you going to start by giving back the almost $1 million in TIRF (Taxpayer funds) that your hotel went ‘cap in hand’ for? Perhaps then, we will get the VAT refunds that your Government has owed us and that have been due for 3 years and 7 months, so far.

  11. Adrian Loveridge

    Just want to know.
    Hopefully the MOF will come up with something before its too late to avoid massive staff lay-offs. Personally I feel that any assistance given should be subject to each hotel (or other tourism entity) being up-to-date with ALL statutory Government obligations. One of the biggest challenges is the price of electricity . Someone quoted yesterday that the cost has DOUBLED in the last five years, but if you look at oil prices, they reached at peak at US$147 per barrel on 11 July 2008, and are now hovering around US$101.
    I know BL&P uses Bunker C, but has that really DOUBLED over the last five years? Perhaps someone more informed could comment?

  12. Carson C. Cadogan

    “Just take a look at the number of hotels closing down, that alone should say something is not right.”

    What it is saying is that far too many of these Hotel properties are very poorly managed. Many of them are owned and operated by fast buck artists. They are actually doing the industry a favour by closing their doors.

  13. Adrian Loveridge

    Carson, is it that they were badly managed or were not able to beg Government for massive taxpayer subsidies like your hotel?

  14. Carson C. Cadogan

    UK man in court for assaulting boy

    “A SIXTY-SIX-YEAR-OLD man from the United Kingdom appeared before a Port of Spain magistrate yesterday charged with the grievous sexual assault of a ten-year-old boy.

    According to the police, the incident occurred on April 28 at Power Boats Marina in Chaguaramas.

    The accused, Dereck Ide, was arrested and charged days after and was questioned by officers of the Western Division. Appearing before Magistrate Maureen Baboolal-Gafoor, Ide was not called upon to plead as the charges had been laid indictably”

    Tourism at its best!!!

  15. Carson C. Cadogan

    Adrian, ask the various companies in Barbados who were left holding the bag to the tune of millions of dollars in unpaid bills for goods and services?

  16. Carson C. Cadogan

    As a matter of fact that is why many companies in Barbados are now only extending seven to fourteen days max. credit terms to these “nicely run” hotels.

    The companies having been burned many times are doing everything in their power to limit their exposure to many hotel properties.

  17. Marine rider

    As far as I know the Seychelles Islands are one of the main destinations in Europe. You can find a large veriety of room prices and air fares are very competitive plus service is excellent. I never been there, but I received the same comment from anyone that visit the Islands: beautiful and affordable.

  18. Carson C. Cadogan

    Adrian Loveridge, I see your boy PAIN who told you that you are not indigenous to represent hotels in Barbados has a big case against Hinkson.

  19. marsdalebear

    I have been taking some overseas visitors round the island for the past few days. Asked what they thought of Barbados their response was that thety would think twice before visiting again.This had nothing to do with the prices but everything to do with the apparent surly manners of the local population. They asked why nobody smiled and why nobody was interested in giving good service.After all the weather is great, the island is beautiful and the people generally very nice.
    On a visit to Chefette the conversation went something like this:
    May I have a milkshake please?
    Wha flavour?
    What flavours do you have?
    Server points to menu board.
    Oh, I will have a vanilla
    Wha size?
    Medium please
    $*
    Never a smile, please or thank you
    This is not confined to Chefette and has nothing to do with race, just an inbuilt aversion to provide good service.It starts with the uniformed Gestapo at the airport.
    Untill this is addressed tourists will not return as the word spreads

  20. abc

    we wont return to barbados after visiting the island over 20 years.
    everything “marsdalebear ” mentions is true.
    endless harrassments and criminal locals did the rest.
    ongoing ignorance and hybris will ruin barbados.
    the island will miss a pretty penny from us , relatives, friends, and…..and….
    bad news has spread :-((

  21. Harlisuccess

    My beautiful Buccament Bay

    Matters not what the doom-mongers may say
    The critics have had their day
    Argyle Airport is on it’s way
    and thousands will come to stay
    in my beautiful Buccament Bay
    A paradise in palm trees that sway
    That’s my beautiful Buccamant Bay
    Investors you bet
    High returns they will get
    from my beautiful Buccament Bay

  22. Loon

    @Harlisuccess
    You cock , its over even you know that

  23. Yatinkiteasy

    @HardlysuccessatBB
    Don’t Stop The Carnival

    Plastic containers for drinks
    Not 5 star methinks
    No Trader Vic’s as advertised, but that’s nothing new
    Can’t open for 30 guests ….too few.
    Managers have fled, not paid , it is said.
    Will have to join the queue.
    There is not enough spray
    To keep the damn mossies away
    And the beach that was black.
    Is trying to come back.
    Investors were told
    Returns? As good as gold!
    What have they got?
    Diddly squat!
    No income to share
    The cash is not there.
    Not to mention legal title
    No one yet has received
    Except one lucky fachet
    Who writes from his toilet.
    Marina, there is none
    Galleon got bun
    Harlequin Air?
    Not there.
    My Beautiful Buccament Bay
    Come quick before it fades away.