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With natural resources being scarce
tourism is the mainstay of the economy. The advent of tourism as a
major national industry began in 1971 with the opening of the
international Airport. By 1977 tourism had become the dominant
industry giving strength to those sectors related to it. The tourism
sector contributes 20% to GDP and yield 60% of the Foreign exchange
earnings. In 1997 the estimated visitor income stood at SR819
million. Being dependent on tourism makes the economy very vulnerable
to external economic factors. The gulf war of 1991 for example caused
tourism arrival to fall by 13%. In order to diversify and broaden the
economic structures the Government of Seychelles has embarked since
1990, on a liberalization program.
The main tourist origins are:
France, U.K., Italy and Germany
which account for more than 60% of the tourists, Emerging markets are
S. Africa and S.E. Asia.
Tourist arrival stood at 37 000 in
1975 and at 130 955 in 1997or an 8% increase from the previous year.
The average stay in 1997 10.3. The tourism division however feels that
tourist should not exceed 200 000 a year. This is because the
Government policy is to avoid straining the economic carrying capacity
bearing in mind the impact on this industry should there be serious
environment degradation. (see environment) It is however also
the Government's policy to target a selected high income
clientel. |
