Trouble in Paradise as Seychelles Economy Shrinks

Sun-kissed beaches and crystal-clear seas are no longer enough to guarantee growth for the Seychelles’s economy.
Gross domestic product declined the most in four years, dropping 2.9 percent in the first quarter compared with the previous three months, as European tourists stayed away and tuna catches dropped. That was the first contraction in a year.
A slow recovery in Europe is curbing tourism in the Indian Ocean island, which relies on visitors’ spending on luxury hotels, restaurants and beer for more than two-thirds of foreign income. Tourism makes up a quarter of the economy and employs 25 percent of the workforce in the nation of 90,000 people.
“Tourism is a huge driver of the economy, for jobs, for foreign exchange, for growth,” Thea Fourie, senior economist for sub-Saharan Africa at risk-analysis company IHS Global Insight, said by phone from Pretoria, South Africa. “Although the European Union’s growth is somewhat better, it is still far from strong.”
Accommodation and food services contracted 5.5 percent in the quarter, fishing shrank 17.9 percent and manufacturing of beverages and tobacco fell 14.7 percent, the statistics office said in an e-mailed statement today. Tuna fishing and processing accounts for almost 5 percent of GDP and 7 percent of jobs.

‘Quite Challenging’

“The first quarter was quite challenging in terms of tourism, which has underperformed,” Finance Minister Pierre Laporte, said by phone today. “Some of the sectors, such as the fishing sector, are quite seasonal. I think we’ll get a better picture in the second quarter.”
Visitor arrivals in Seychelles fell 6.2 percent to 57,489 in the three months through March compared with the prior quarter, according to the statistics office. Almost 70 percent of tourists were from Europe.
GDP growth forecasts will probably be cut as tourism slides, Fourie said. The International Monetary Fund estimates expansion of 3.7 percent this year and 3.8 percent in 2015, compared with 3.5 percent last year.

 http://www.bloomberg.com/news/2014-06-27/seychelles-economy-sees-steepest-slump-in-four-years-on-fishing.html

Comments

  1. Mr. Pierre Laporte next President of Seychelles cum waiting, says wait for another quarter to know what is happening to the Seychelles economy. Does Minister Laporte need to wait one more quarter to know that a ticket to Praslin costing 2400 one way will hurt the economy? Does Minister Lorte need to wait another quarter to know that 15 percent VAT is not sustainable in a Tourism economy?

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  2. This statement by Pierre Laporte says it all.
    Wait another quarter.
    Pierre Laporte obviously does not know what is driving the Seychelles economy downward.
    We know what is happening and when Mr. Laporte is ready to make some initial concessions with Trade we will tell him.

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  3. PL MNA dress down Pierre Laporte import program Assyuda failed import program. Yet he says wait for another quarter to see what is wrong.
    Gill told us in his article last week Laporte likes to send you to next year on every question. No minister of finance has ever told any one to wait to next year or next quarter.

    This is the sickness of Laporte.

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  4. Just what Christopher Gill said in his article about Pierre Laporte, the Bloomberg Reporter quotes the same.......wait till another quarter, before we know, wait till next year. Danny Faure never told us to wait till next year or next quarter. Danny faure listen to the problem, assess it, and he propose a solution. How can we take Laporte seriously when everything he put in place is falling apart? Mr. Gill told us he destroyed Niger economy. Now Seychelles. Please remove Pierre Laporte at finance July 1 st. Reshuffle .

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  5. Seychellois suffer because Pierre Laporte is not thinking fast enough. He is like a turtle laying eggs on Aldabra under patatran when he faces economic issues.

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  6. Seychelles First28 June 2014 at 05:45

    The current government’s management of the economy has been dismal and is leading to dire consequences for all of us. Despite of all the rises in prices, taxes and fees, coupled with the so-called unavoidable austerity measures that were thrown into place, public debt still increased, what’s more, the government continues to scour the globe looking for more money to borrow. Had the government listened to sensible economic advice, many of these debacles could have been averted. The advice, broadly speaking, was to focus on motivating economic activity and growth. It appears that our idiotic government aren’t required to listen to sense, leaving everyday Seychellois to suffer.

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  7. Thank you guys!

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  8. Happy Independence Day all Freedom Loving Seychellois!

    Sesel Pou Seselwa!

    Christopher Gill
    Leader
    The Seychelles Freedom Party

    ReplyDelete
    Replies
    1. It will never be a happy independence day as long PLP is in power.

      Delete
  9. When a country is run by a group of terrorists, murderers, people with impairment of integrity, virtue, and moral principles, this is the end product in which the people of Seychelles have to endure. Either they do something about it or live with it. Simple!

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  10. JAM can not do a simple introduction with the Sri lankan President without reading from a prepared piece of paper. WHAT A SHAME. Even the delagations found out very quickly. One thing he does well is cutting ribbons and dropping the curtains. He was once a major and colonel yet can't stand straight during a guard inspection ceremony.
    SFP don't think you have the move like Jager. No matter how hard you will try.

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  11. The gap in our economy is between what we have and what we think we ought to have - and that is a moral problem, not an economic one.

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  12. High ticket price on Ethad,no direct flights from main market help in the down fall.High dependency of cheap EXPATS which annually make the country lost 2,5 billion plus is another cause of the problem.High cost of living with virtually no salarywage increase of workers thus low consumers pending which a bulk part of an economy help creating the disaster.

    Weak government policy ,increasing umployment,,creeping corruption that persist,increasing bloated public service,no consistent plan to growth job creation ,With Dr laporte/Pp we on the verge of JUNK BOND status.

    The shrinking economy will probably pose serious problem for the Central Bank.

    One must also point out that this government has changed nothing seen the collapsed in 2008--corruption keeps sky rocketing,mis-management,,addiction to foreign debt,lots of big five star hotels which keep profit abroad(financial leakage etc..etce..tc all these issues should have been addressed and solved PP/Laporte has kept the status quo that created the chaos.They just donot get it,they just cannot stop from the communist economic policy and addiction to corruption.

    Diversity of the economy---(diversity St Ange here mean creating non-related tourism industries more economy is too a mono-economy thus depending only on tourism).

    Fisheries falls--well if we would have fish our TUNA ourselves though there would be a fall we would still generate maybe not 3 billions as Foreign sieners generated in 2008 in a world^s economic crisis,I would have maybe one million but enough for a small country and population like ours.50 years Pp you have allowed foreigners to robbed us multi-billions if not trillions while we pocket peanuts.Of course with all those foreign Sieners/over 60 sieners)when the made a bad catch due to the amount their expense is high in regards to revenues then they cannot even give you the hand full of peanuts they use too.Reduce EXAPTS then Sr 2,5 billions would stay in our Banks-Connect our main market with direct flights than cost of tickets would drop and tourists would come :develop OOF SEASOn tourism would provide Europeans with lower budget to visit our land during low season would compensate the lost during high season.Increase workers salary and reduce Ministers self-given double salry and anull life pension theey are an unjustified and burden on our small economy espeicially when this government have failed us on all level.you astronomic self-given salary is just not justified(NB Egyptian President get Just increase this year 2014 SFR5300 swiss frank literally or about the same that Pp crook gifted themselves even lower.Stop importing chickens from Brasil teemed with Anti-biotic that we should not be consuming but take an outter island from GLENNY and produce ourselves.Tons of eaweeds to conver tinto high quality medications a lucrative business that generate multi-million of dollars and we have a big marketAfrican market that needs such products.Reduce astronomic price and unjustified price on certain products diary products thus allow consumers to spend.Stop robbing and serving yourselves from the people's coffers.Sell our SEPEc it is unprofitable and must be kept alive but pouring into our economy it is not sutainabel instead you could have bought Cargo ships transport goods to our shores since we import 90 percents from abroad especially Asia,It makes more sense.Stop Importing GOPS to control our institituions they are costly and ineffective.speed up the use of renewable energy thus reduce importation and fossil fuel costs therefore saving for government.

    Mother land strike to progress,advance,expand, and develop mainly because of PP communist style economy and creeping corruption but also because PP has handed our economy to foreigners.Voodoo economy just donot work Pp/laporte.Cancel your life pension Pp and the double salary you gave yourselves last year.lead b example donkeys.

    Jeanne D'Arc

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  13. Happy INDEPENCE day too.Your LEADERSHIP CHRIS HAS PUSHED PP,RAM TO CANCEL THEIR INFAMY DAY AND ROMOVED ram'S BORTHER ZONM LIB--IT IS A GREAT ACHIEVEMENT FOR Seychellois.

    Jeanne D'Arc

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  14. 04.51
    FAURE Is a communist educated donkey--we donot even know what he studied in CUBA.Communist economic principles do not work--China has changed its communist economic to capitalistic economic so did PUTIN ,those who failed to do so collapse CUBA ;SECHELLES ;ZIMBABWE;NORTH KOREA,etc...
    This time Seychellois would have to take to the streets and get those marons out.We cannot give them another change.They have had many changes to do differently but have proven to be incapable.

    Jeanne D'Arc

    Jeanne D'Arc

    ReplyDelete
  15. Michel statute looks more European than African,Creole.it therefore more a symbol of our colonial master.

    ReplyDelete
  16. Sri lnakan President is a butcher like him.Michel illegally sold him one of our outter island in 2012 in secrecy so that the former can laundered millions of Sir Lankan tax payers' money he robbed.These are two evils who share the same crookedness--both wicked and murderers.Both their people do not like them,both involed in illcit pratices.And to be able to transfer without detection stolen money from and to Sir lanak/Seychelles a Sri Lankan Amvbassy has been opended s othat mutli-millions of stoelen dolalrs could be carried in Diplomatic bags to our shores or vice versa. if not tons of Ahrd drugs too.

    Why Should a country like Sir Lanka which is two hours flight from Seychelles and vice versa must have an Ambassy in Seychelles ?Well to facilitate Michel/Sri Lanakn president illicit deals-

    -but CIA hears,knows,traces everything--which it would provide to us after Michel is toppled as well as a new Sir Lanka government would provide once the actual crooked President ended his terms in office.As the saying goes"what goes around,comes around"

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  17. 2.9 percent decline means it would be very difficult to have a 2 percent growth for the full year.It is heading to a recession Dr Laporte and Prof. Fanny.

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  18. PL has removed Zom Lib from public land under SFP pressure.
    PL has cancel National Day and announce it will now celebrate Independence Day as our National Day under pressure from SFP.
    We welcome PL efforts and call to move towards National Unity and Reconciliation.
    PL must continue to do the talk and the walk.
    Next, we call on PL to cancel this fake rainbow flag, pushed forward by France Albert Rene in 3 rd Republic. I sat on National Symbol Committee and I know this flag belong to Rene. SFP call on PL to : Restore our National Flag from June 29 th, 1976, Independence Day.
    As for your bronze statue depicting starving Seychellois with ribs out, stomach in, thin bone legs, by Tom Bowers correctly highlighted as a uk fabrike. We reject this work, and call for its removal. Place this in your garden next to Zom Lib. We want all national symbols to be created by Bona Fide Seychellois.

    Seselwa Unite!

    Sesel Pou Seselwa!

    Christopher Gill
    Leader
    Seychelles Freedom Party

    ReplyDelete
  19. The Sri lNakn President known by his people as "The butcher of the Tamils"meets with Seychelles butcher Michel and his gang of criminals.How much did Partielepep pocketed in the illegal sell out of one of our Outter Isalnd to Sir Lnakan Butcher?Why all partielepep gan member are silent?How much millions of stolen Sir Lankan people stolen money he brought is Diplomatic bags to launder Paritlepep? And how much more is preview to be laundered now that he open an Ambassy for this purpose?You better teel us apritlepep else CIA will do for you,including the millions you pocketed in this illegal deal of sell out of Seychellois patrimony sooner than later.

    ReplyDelete
  20. Polcie Stations around the country is the new slaughterhouses of aprtielepep.No investigations or when there is one,know police officer is found responsible though they should have a moral duty to ensure the safety of the indiviudals the detend.A lady hung with her underwear' ridiculous as the police officer who came out to telle us the tale.Fortensic investigation can indeed solve the problem,but as it is crimes being committed by partielepep thugs ..such things as forensic investigation just do not take palve.Fprensic experts sit in an office without equipment and all trace of invidences on the crime scene washed away by state killers.

    ReplyDelete
  21. Police killing citizens, nothing change.

    ReplyDelete
  22. KILL ONE IN YOUR FAMILY THEN GO AFTER THEIR FAMILY THATS ONLY ADVISE I GIVE YOU MY SEYCHELLIOS BROTHERS:I DONT SEE ANY CHANGE WITH THIS KIND OF POLITI-CHIEN ON THIS SMALL ISLAND.

    ReplyDelete
  23. Sri Lankan President are telling Michel to built 3 floor hospital let this man come on our to give him idea if a Seychellios will tell him he will hear the idea I bet this hospital will finance by Sri Lanka lots of those immigrant on our shore.
    Can someone tell us who pay for those immigrant workers healthcare staying on our shore?Seen years we asking no one had give us answer,if they get our health care for free that's why Sri Lankan are telling this moron how to built the hospital.

    IF FOREIGNERS LIKE IMMIGRANT WORKERS ECT ARE GETTING OUR HEALTH CARE FOR FREE!WE MUST STOP IT!!

    ReplyDelete
  24. Michel is freiend with all mafia to invade Seychelles and protect by killer when step down egal were they come,Michel know exactly what is up to protection from foreign killer but cant see to much in baka alcohlic never care were their sleep or they got food to eat.

    ReplyDelete
  25. This Sir Lankan President and his brothers are known and have a record in criminal activities.We must stop him and Michel from establishing he criminal camp and activites on our shores.Seychelles image has been tarnished by partilepep and Michel seems just cannot stop from his criminal addiction.Sri Lankan Bank set up in Seychelles to launder illicit money,Ambassy to transfer stolen money to our shores,Hospital to operate illegL KIDNEY TRAFFICKING AS uK TIME INVESTIGATION REVEALED.aND MANY OTHER ILLICT DEALS.

    ReplyDelete
  26. They killing Seychelles deliberately to allow Arab pick it up for nothing.

    ReplyDelete
  27. PP and Michel donkey you want to built hospital on Mahe with 3 floor hospital we Praslinois we have only one floor we also need a two floor hospital no emergency room no machine like computer temograhy no maschine for peoples who are diagnose with cancer nothing to save Praslinios,Diguios life and peoples working on those outer island near Praslin.May be if you are working on Aride when arrived Mahe by plane you already dead.Praslinios every time have to spend money to go to Mahe for treament.

    Baie ST Anne Ex SPUP

    ReplyDelete

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