Tourism in Seychelles was discussed with the press as part of a review of the region's tourism industry.
Alain St.Ange, the Seychelles Minister responsible for Tourism and
Culture, took part in a conference call discussion panel as part of this
review of the region's tourism Industry.
The Seychelles Minister emphasized in the panel discussion that
Seychelles remains a tourism destination known for offering personalized
tourism. "This is because we are not after the millions in tourism
arrivals, but more because we remain a niche tourism
destination and one conscious that we are a destination of choice
because we are not a mass market destination,” Minister Alain St.Ange
said.
The discussions started with the topic of Dubai hotels that are today
barely able to break even as occupancy levels plummeted to 50.3 percent.
A tourism expert on the discussion panel said that the Dubai hotel
market saw their occupancy levels fall to 50.3 percent in July as
overall demand within the city reduced due to the summer heat and
because of the impact of Ramadan, according to the latest
HotStats survey of full-service four- and five-star hotels by TRI
Consulting.
It was already widely reported that occupancy in Dubai hotels was down
4.6 percentage points compared to the same period last year and their
gross operating profit per available room (GOPPAR) plummeted by 99.5
percent to US$0.07, resulting in hotels barely
covering operational expenses.
“Dubai hotels were impacted from the collective effect of the annual
summer slowdown and the occurrence of the holy month of Ramadan
throughout the entire month of July, resulting in occupancy levels
falling to 50.3 percent. This had a trickledown effect on
the profitability of hotels especially with significantly lower food
and beverage revenues during the month. Hotels only marginally broke
even as high fixed operating costs resulted in GOPPAR dropping to
US$0.07. Although performance was down in July, the
overall market remains strong with year-to-date occupancy levels
averaging 79.4 percent and profit margins at 46.4 percent,” commented a
panelist who quoted Peter Goddard, the Managing Director of TRI
Consulting in Dubai.
When the Seychelles Minister was questioned on the August updated
visitor statistics that is showing a 1% drop over the same period as
2013, Minister St.Ange said that Seychelles remained a long-haul tourism
destination vulnerable to the economic situation
of its main source markets. "When France, for example, sneezes, we
immediately catch a bad cold. Our Tourism Board diversified our
country's tourism markets when it was evident that Europe was undergoing
a difficult economic moment. Europe remains our biggest
source market, and today all the islands of the Indian Ocean region are
following the same trend in stagnant figures out of Europe or even
recording a slight drop in numbers. The only exception for Seychelles is
Germany which has remained a solid source market
with German holidaymakers choosing Seychelles over other destinations,"
the Seychelles Minister responsible for Tourism and Culture said.
The Seychelles Minister took time to discuss forward statistics
available to the Seychelles Tourism Board based on one-to-one
discussions with main tour operators and booking engine operators and
said that he remained satisfied that the Seychelles Tourism Board,
the body mandated to market the Seychelles, was doing a good job. The
Minister emphasized that he believed that the success of Seychelles
rested on a working public/private sector partnership in the marketing
of the islands. "We have a Tourism Board of Directors
controlled by the private sector where they hold four board members
versus three government officials. We did this to allow the private
sector, those sitting in the frontline of our tourism industry, to guide
our marketing. They need the industry to work,
and they are proactive with ideas, because they depend on a buoyant
industry for the survival of their own businesses. We even appointed as
our Director of Marketing the professional they, the private sector,
nominated, because we wanted them to have their
very own person in the chair working with them for the marketing of
Seychelles," Minister St.Ange said.
"The Seychelles Tourism Board organizes an annual marketing meeting
where all the islands’ representatives in their overseas offices join
their marketing team in Seychelles to sit with the private sector and
airlines to plan the work ahead. Their plan of action
is then further analyzed in their mid-year marketing meeting where they
review together again trends, challenges, and successes," Minister
St.Ange said. "The Department of Tourism in the Ministry of Tourism and
Culture on the other end only look at policy
matters, and as a government department falls under the Minister's
Office, but the Tourism Board falls under their
private-sector-controlled Board of Directors in what is seen as a
perfect separation of responsibilities approach," the Minister added.
The Seychelles Minister tabled for discussion forward booking figures
compiled by the CEO of the island's Tourism Board based on her
one-to-one discussions with tour operators and booking engine operators
who are big suppliers for Seychelles. Minister St.Ange
said that for the period September to December, France and Italy would
remain at -11% respectively when compared to 2013, whereas from Germany
an increase of +19 is being expected. South Africa would see a +2,
Austria a +38, Russia a +26, Hong Kong a +100,
the UAE a +1.5, and La Reunion a +100% over the same period as 2013.
Comparative forward trends for the Indian Ocean region compiled through
information from suppliers were tabled for forward booking September to
December and Mauritius is seen to be recording a no growth from France
but a minus 16% from Italy; Maldives on its
part is showing a -4 from France and a -15 from Italy, and Zanzibar is
showing a -19 from France and a -17 from Italy.
Air Access was also discussed and the challenges of the destinations
analyzed. "At our peak periods, when we should be full, we cannot get
booking from our main source markets because the airlines serving
Seychelles through the two Middle East hubs are running
on a very high load factor. We have the hotel rooms, but cannot get the
passengers to Seychelles," Minister St.Ange said.
Mauritius and Maldives are benefiting from a direct flight to China
which has opened that market for them whereas Seychelles is seen to be
stagnating in opening China as a source market, because air access is
only available through the Middle East hubs.
Minister St.Ange spoke about the importance of direct non-stop flights
working alongside the hubs and cited the successful CONDOR weekly flight
as an example where the destination benefits directly at the same time.
The Minister was questioned about the business
case for more flights to Seychelles when airlines serving the
destination were today averaging but a 60% average load factor, and in
reply the Minister said that if that analysis is an applicable golden
rule, then Seychelles should not be building any more
hotels, resorts, or self-catering apartments, because the average
annual occupancy level of the islands is no greater to what the airlines
were recording as load factor. "But we are still receptive to building
new hotels. We need the FDI, we need a solid updated
hospitality network, and we need a comprehensive air access network to
support the hospitality network," Minister St.Ange said. "Tourism is the
pillar of the Seychelles economy. Visitor arrival numbers are today
sitting at 3 times the total population of Seychelles
and at over 5 times the working population of the islands. Tourism
accounts for 25% of GDP, 25% of employment, and 70% of foreign exchange
earnings. Tourism is important, and tourism in Seychelles is 100% for
Seychelles," Minister St.Ange pointed out.
The Seychelles Tourism Board has Ambassador Barry Faure (Secretary of
State at the Ministry of Foreign Affairs) as Chairman, and as board
members Captain David Savy (Airline Consultant and Chairman of the
Seychelles Civil Aviation Authority), Steve Fanny (PS
at the Ministry of Finance and Industries), Brijesh Jivan representing
the Seychelles Chamber of Commerce and Industries (SCCI), Alan Mason
(head of Mason's Travel and the Mason's Group of Hotels) representing
the Seychelles Hospitality & Tourism Association
(SHTA), Paul Hodoul (a car hire operator and owner of a small homegrown
hotel establishment) representing the Seychelles Hospitality &
Tourism Association (SHTA), and Philippe Guitton (the Group General
Manager of the Constance Hotels Ephelia and Lemuria)
representing the Seychelles Hospitality & Tourism Association
(SHTA) until his working contract in Seychelles ended recently (a
replacement for Mr. Guitton is expected to be named soon).
Sherin Naiken, the CEO of the Tourism Board, sits as an ex-officio member, and Jenifer Sinon is the Board Secretary
