SHTA welcomes concession, but hopes for more

Head of the SHTA, Louis D'Offay, has said that the new tourism incentives package will help the industry, but does not go far enough.

In the first reaction to the new Tourism Incentives package, unveiled to members of the industry this week, the Seychelles Hotel and Tourism Association (SHTA) Chair said that the tourism concessions, "go some way to lowering our operating costs but not far enough to make Seychelles affordable."

In a generally positive assessment of the amendments to the Tourism Incentives Act, Mr D'Offay said, "we have to recognise that government has made an effort to relieve the burden of operating costs, however, social security contributions, for instance, does not mean a great deal over all."

He also noted that concessions on GST and Trades Tax will also have a "small but positive impact."

Mr D'Offay, owner of the L'Archipel Hotel, said that the hotel industry had been looking for concessions on water and electricity costs, a reduction in the seven percent sales tax and a reduction in Trades Tax on certain SMB supplied items.

Will no announcements were made by the Ministry of Tourism and Transport on any of these issues Mr D'Offay said that the industry is still in talks with government and that they are hopeful of further money saving announcements in the November budget.

Describing the new measures as, "more encouraging from an investment point of view," Mr D'Offay said that they would be unlikely to reduce prices, beyond a possible two to three percent fall in food and services charges, but would at least remove the need for a price rise.

"I hope the tourism situation will improve, but we have to move faster," said Mr D'Offay, who pointed out that the local travel trade has a far smaller profit margin to play with than regional rivals such as Mauritius, which limits the ability to cut prices.

LINKS