In search of stability
Let's return to the crisis of 2008: the rise in oil prices and the turmoil on the financial markets had a devastating effect on the country's economy, with the Governor of the Central Bank even resigning, officially for health reasons. His resignation revealed the extent of the damage... and the short-sightedness of the State, which some economic analysts blame for having tried to modernize the country too quickly, resulting in huge debts. The crisis, which began under Albert René, is said to be rooted in the fact that the country has lived beyond its means, the corollary being one of the biggest rises in living standards in Africa in the last twenty years. The two pillars of the state (fishing and tourism) were no longer sufficient to cope with rising fuel prices and imported foodstuffs, and the Seychelles suddenly found itself on the verge of bankruptcy, unable to assume its colossal debt: 800 million dollars, or 165% of GDP, one of the highest in the world!
This extreme situation forced the government to seek urgent financial assistance from the International Monetary Fund (IMF). After Iceland, Ukraine and Hungary, the Seychelles thus became the fourth country in 2008 to obtain consideration for a loan inherent in the financial crisis, a procedure enabling a member state to draw on the Fund's general resources account to cope with the temporary imbalance in its finances. The IMF's intensive care thus forced the government to normalize its relations with the international financial system and to align its currency, the rupee, in order to better integrate the Seychelles economy with the rest of the world, resulting in a further devaluation of an overvalued currency which, between July 2007 and November 2008, lost around 150% of its value. The Seychelles rupee now fluctuates between SR18 and SR22 per €1 in the first few weeks after the IMF devaluation, and by September 2024 was trading at SR15.34 per €1.
Having put an end to the black market, since Seychellois now have access to foreign currency, this devaluation will of course have caused prices to soar. Although the State has urged hoteliers to maintain their rates in order to preserve the flow of tourists, it is not certain that this advice will be heeded for long, as the spectacular increases in electricity, water and gas are likely to affect the price of rooms, tables and tourist services.
Nourishing sea and tourist paradise
The sea is first and foremost a source of nourishment. The Seychellois are said to be the world's biggest consumers of fish. Seychelles waters are generous, and the French, Spanish and Japanese in particular, lured by miraculous catches (but for how long?), have been exploiting this prolific "Seychelles Economic Maritime Zone" under license for some twenty years. Let's hope it stays that way for a long time to come... This huge chunk of ocean, with a surface area of 1,300,000 km2, is a treasure trove. Only 455 km2 is actually land. Under license from the European Union, some thirty French and Spanish boats net tuna in the deepest waters to supply the Conserveries de l'océan Indien, based in the port of Victoria, the world's second largest tuna port. The Japanese and Taiwanese - who have just as many boats - prefer to fish by line, in an industrial version, but on the good old principle of the hook (with mackerel or squid to bait the customer). The pwason, bled on board, is preserved for a few days in saltwater ice, before being landed and immediately cut up, then exported to Europe, where it is sold fresh.
In any case, the Seychelles is a tourist paradise, and is certainly enjoying the jam mentioned by ex-president René, with tourism accounting for two-thirds of GDP. Now the country's main economic pillar, it is also the main source of employment, whether directly linked to the hotel and restaurant business or indirectly stemming from tourism. Tourism is barely forty years old. This luxurious nature is worth its weight in rupees, or rather euros! Until now, the Seychelles have never given in to the temptation to build huge vertical structures, which are much more economical to manage. While Mahé and Praslin now boast a few large structures, the Seychelles are characterized by a host of small hotels and guesthouses. These hotels, whatever their range, are among the most expensive in the world. A night in the archipelago costs around €100-120 in a low-end guesthouse and €250-280 in a mid-range hotel - a mid-range that is still poorly represented, as there is a notable shortage of 3-star hotels. As for the fashionable top-of-the-range: up to more than €3,000, always well integrated into nature. We need to preserve this infinitely precious natural environment by limiting the number of visitors, hence this policy of selection by money.
Towards a "blue" economy
The archipelago is determined to protect its exceptional natural heritage. While ecotourism and environmentally-friendly establishments have already been legion since the arrival of tourism on the islands, at the end of 2018 Seychelles became the first country on the planet to issue "blue bonds". This is a loan (worth around $15 million), backed by the World Bank, to support initiatives linked to the protection of the ocean and its ecosystems. Numerous initiatives have been put in place to preserve the environment, including coral replanting, turtle and sea turtle conservation, flora preservation, respect for biodiversity and systematic beach cleaning. Hotels have also opted for "green" gestures, offering their guests their own bottled water and bamboo straws. Of course, every effort is made to recycle waste and reduce greenhouse gases.
In August 2023, in the same vein, the state is introducing a tax (between SR25 and SR100 per night and per person, depending on the size of the establishment) called "Tourism Environmental Sustainability" to initiate government projects in favor of environmental protection. Like the tourist tax in France, it will be collected by hotels, in the hope that it will be put to the best possible use by Wavel Ramkalawan's government in office until 2025. Just so paradise remains paradise!
