Country Profile - Seychelles

General Information

Area: 455.3 sq km (175.8 sq miles).

Population: 80,410 (official estimate 1999).

Population Density: 176.6 per sq km.

Capital: Victoria (Mahé). Population: 60,000 (1994).

GEOGRAPHY: The Seychelles Archipelago occupies 400,000 sq km (150,000 sq miles) of the Indian Ocean northeast of Madagascar and contains 115 islands and islets. These fall into two groups of markedly different appearance, stemming from their distinct geologies:
Granitic: A dense cluster of 42 islands, the only mid-ocean group in the world with a granite rock formation. Their lush green vegetation is tropical in character, with a profusion of coconut palms, bananas, mangoes, yams, breadfruit and other tropical fruit. Indigenous forest exists on the higher slopes, where cinnamon and tea are planted. All, including the second largest, Praslin, are less than 65km (40 miles) from Mahé.

Coralline: Isolated coral outcrops speckling a vast area of the Indian Ocean to the southwest of the granitic group. They rise only a few feet above sea level but are covered with rich and dense vegetation due to fertilisation by copious amounts of guano. There is no permanent population. Aldabra, the largest atoll in the world, contains one-third of all Seychellois land and is a UNESCO-designated World Heritage Site.

The largest island in either group is Mahé, lying 4°S of the equator. It is 27km (17 miles) long by 8km (5 miles) wide and contains Victoria, the capital and main port, and 90 per cent of the population. Mahé is typical of the Granitic Islands, being mountainous and covered with jungle vegetation. Its highest point, indeed the highest point in the Seychelles, is Morne Seychellois (905m/2970ft). The isolated nature of the Seychelles has given rise to the evolution of many unique species of flora and fauna, including the coco-de-mer palm and unique varieties of orchid, giant tortoise, gecko, chameleon and ‘flying fox’ (fruitbat). National parks and reserves have been set up to protect this heritage. The Seychellois are descended from a mixture of French and British landowners, freed African slaves and a small number of Chinese and Indian immigrants, creating a unique culture.

Government: Republic since 1976. Gained independence from the UK in 1975. Head of State and Government: President France Albert René since 1998.

Language: The official language is Seselwa; Creole, English and French are also spoken.

Religion: 92 per cent Roman Catholic with Anglican, Seventh Day Adventist, Muslim, Baha’i and other minorities.

Time: GMT + 4.

Electricity: 240 volts AC, 50Hz. British three-pin plugs are in use.

Communications:

Telephone, fax, telegram: SEYTELS offers a 24-hour service for telegrams, telephones and faxes via SEYTELS/Cable & Wireless Ltd, Francis Rachel Street, Victoria, Mahé. Phonecards are available. IDD is available. Country code: 248. Outgoing international code: 00.

Mobile telephone: GSM 900 network. Network operators include Cable & Wireless (website: www.cws.sc) and Telecom (Seychelles Ltd) (website: www.airtel.sc).

Internet: ISPs include Atlas Ltd (website: http://www.seychelles.net).

Post: The main post office is in Victoria. Airmail collections are at 1500 weekdays and 1200 Saturdays; airmail to Western Europe normally takes up to 1 week. Post office hours: Mon-Fri 0800-1500, Sat 0800-1200.

Press: English-language newspapers include Seychelles Nation (morning daily except on Sundays), The People (monthly, published by the Seychelles Progressive Front) and Seychelles Review (monthly news review).

Radio: BBC World Service (website: www.bbc.co.uk/worldservice) and Voice of America (website: www.voa.gov) can be received. From time to time the frequencies change and the most up-to-date can be found online.

Passport/Visa

Passport Required? Visa Required? Return Ticket Required?
British Yes No Yes
Australian Yes No Yes
Canadian Yes No Yes
USA Yes No Yes
OtherEU Yes No Yes
Japanese Yes No Yes

PASSPORTS: Passport valid for 6 months from date of arrival in the Seychelles.

VISAS: Visa not required by any nationality as long as they have:

(a) onward or return ticket (if not, onward or return ticket must be purchased on arrival);

(b) proof of sufficient funds and organised accommodation for the duration of the stay.
A visitor’s permit, valid initially for duration of intended stay, is issued on arrival, subject to possession of (a) and (b) as above; alternatively a deposit may be made by ‘security’ bond in lieu. The permit may be renewed for 3 months at no extra cost, and then at a cost of an additional SRs200 every 3 months for a maximum of 1 year, provided the applicant holds a valid open return ticket. For further information, contact the nearest Seychelles Tourist Office.

Transit: Passengers in transit must have tickets with reserved seats for their onward journey.

Temporary residence: Enquire at the High Commission. Additional information about temporary residence and visitor’s permits may be obtained from: Immigration Division, 2nd Floor, Independence House, Victoria, Mahé, Seychelles (tel: 611 110; fax: 225 035; e-mail: dgoi@immigration.sc).

Money

Currency: Seychelles Rupee (SRe: singular; SRs: plural) = 100 cents. Notes are in denominations of SRs100, 50, 25 and 10. Coins are in denominations of SRs5 and 1, and 25, 10 and 5 cents. A number of gold and silver coins are also minted (with face values as high as SRs1500), but these are not in general circulation.

Currency exchange: Exchange facilities are available at the airport banks, which are open for all flight departures and arrivals. The following banks have branches in the Seychelles and will exchange travellers cheques and foreign currency: Barclays Bank, Bank of Baroda, Banque Française Commerciale, Central Bank of Seychelles, Development Bank of Seychelles, Habib Bank Ltd, Nouvo Banq and Seychelles Savings Bank. Currency exchange receipts should be kept in order to facilitate re-exchange on departure.

Note: Tourists must pay hotel bills in foreign currency (in the form of cash, travellers cheques or credit or debit cards). Payment in local currency is only allowed if an exchange receipt can be shown as proof of the conversion from foreign currency into local currency. The duty-free shop at the airport only accepts credit cards or foreign cash.

Credit & debit cards: American Express and Visa are widely accepted; Diners Club and MasterCard have more limited use. Check with your credit or debit card company for details of merchant acceptability and other services which may be available.

Travellers cheques: Accepted in most hotels, guest houses, restaurants and shops. To avoid additional exchange rate charges, travellers are advised to take travellers cheques in US Dollars or Pounds Sterling.

Exchange rate indicators: The following figures are included as a guide to the movements of the Seychelles Rupee against Sterling and the US Dollar:

Date Aug ’03 Nov ’03 Feb ’04 May ’04
£1.00= 8.39 9.33 10.04 9.86
$1.00= 5.26 5.50 5.52 5.52

Currency restrictions: The import and export of local and foreign currency is unlimited.

Banking hours: Mon-Fri 0830-1430, Sat 0830-1330.

Duty Free

Duty-Free: The following items may be imported into the Seychelles by persons of 18 years or older without incurring customs duty:

200 cigarettes or 250g of tobacco; 1l of spirits or 1l of wine; 125ml of perfume or 250ml of eau de toilette; gifts to a value not exceeding SRs130.

Prohibited items: The import of non-prescribed drugs and all firearms, including air pistols, air rifles and spearfishing guns, is prohibited. Video tapes must be declared and may be retained for security reasons. The import of animals and food and other agricultural produce is strictly controlled and subject to licensing.

Restricted exports: Shells, unprocessed coco-de-mer, processed or live fish and live tortoises may not be exported.

Public Holidays

Public Holidays: Jan 1-2 2004 New Year. Apr 9 Good Friday. Apr 12 Easter Monday. May 1 Labour Day. Jun 5 Liberation Day (Anniversary of 1977 Coup). Jun 10 Corpus Christi. Jun 18 National Day. Jun 29 Independence Day. Aug 15 Assumption/La Digue Festival. Nov 1 All Saints’ Day. Dec 8 Immaculate Conception. Dec 25 Christmas Day. Jan 1-2 2005 New Year. Mar 25 Good Friday. Mar 28 Easter Monday. May 1 Labour Day. Jun 5 Liberation Day (Anniversary of 1977 Coup). Jun 10 Corpus Christi. Jun 18 National Day. Jun 29 Independence Day. Aug 15 Assumption/La Digue Festival. Nov 1 All Saints’ Day. Dec 8 Immaculate Conception. Dec 25 Christmas Day.

Health

Special Precautions Certificate Required?
Yellow Fever No 1
Cholera No No
Typhoid and Polio 2 N/A
Malaria No N/A

1: A yellow fever vaccination certificate is required by all travellers over 1 year arriving from infected areas or who have passed through partly or wholly endemic areas within the preceding 6 days.

2: Typhoid occurs in rural areas.

Food & drink: Mains water is normally chlorinated, and whilst relatively safe may cause mild abdominal upsets. Bottled water is available and is advised for the first few weeks of the stay. Milk is pasteurised and dairy products are safe for consumption. Local meat, poultry, seafood, fruit and vegetables are generally considered safe to eat.

Other risks: Hepatitis A and B occur with occasional outbreaks of dengue fever.
Rabies may be present in certain areas. If you are bitten, seek medical advice without delay; for more information, see the Health appendix.

Health care: There is a large general hospital in Victoria and there are clinics elsewhere on La Digue, Mahé and Praslin. Visitors may obtain emergency treatment for a basic consultancy fee. Additional medical insurance is advised.

Travel – International

AIR: The Seychelles’ national airline is Air Seychelles (HM) (website: www.airseychelles.co.uk). Other airlines flying to the Seychelles include Aeroflot, Air Europe, Air France, Air Mauritius, British Airways and Kenya Airways.

Approximate flight times: From Mahé to London is 12 hours (10 hours direct) and to New York is 20 hours and 40 minutes (via London).

International airports: Mahé Island (SEZ) (Seychelles International) is 10km (6 miles) southeast from Victoria (travel time – 20 minutes). Some coach services are provided by agents and taxis are available. Airport facilities include an outgoing duty-free shop, banking and currency exchange facilities, car hire and restaurant/bar.
Departure tax: US$40 or equivalent, payable in foreign currency or by credit card (local currency is not accepted). Children under 12 years of age are exempt.

SEA: Cruise and cargo ships call at Mahé but there are no scheduled passenger services.

Travel – Internal

AIR: Air Seychelles provides an efficient network of scheduled and chartered services from Mahé to Alphonse, Bird, Denis, Praslin, Silhouette and Desroches islands. Helicopter (Seychelles) Ltd (tel: 373 900; fax: 373 055; e-mail: helico@seychelles.com; website: www.helicopterseychelles.com) provides an inter-island shuttle service and scenic flights. Charter flights can be arranged from any heli-stop.

Departure tax: US$40; visitors staying for less than 24 hours pay US$10 and children under 12 years of age are exempt.

SEA: Privately owned schooners provide regular inter-island connections between Mahé, Praslin and La Digue. Boats can be chartered privately to get to the other islands.

ROAD: Traffic drives on the left. There are paved roads only on La Digue, Mahé and Praslin; elsewhere the roads are sandy tracks. Bus: SPTC buses run on a regular basis on Mahé and Praslin from 0530-1900. There are a number of 18-seater coaches for airport transfers and excursions. Prices for buses and coaches are very reasonable. Taxi: There are about 135 taxis on Mahé and Praslin with government-controlled rates. There is a surcharge for taxi fares on Praslin between 1900-0600. Car hire: There are over 550 cars or Mini Mokes for hire on Mahé, and a limited number on Praslin. It is advisable to make advance reservations, especially in the high season. Conditions of hire and insurance should be carefully checked. Hire is on an unlimited mileage basis and the price includes Third Party insurance and tax. Minimum age is 21. Petrol is approximately 30 per cent more expensive than in Europe. Bicycles may be hired on La Digue and Praslin. Traffic regulations: There is a speed limit of 65kph (40mph) on the open road, decreasing to 40kph (25mph) in built-up areas and throughout Praslin. Documentation: A national driving licence is sufficient.

Travel Times: The following chart gives approximate travel times (in hours and minutes) from Mahé to other islands in the Seychelles.

Air Sea
Praslin 0.15 2.30
La Digue - 3.15
Bird Is. 0.30 7.00
Denis Is. 0.30 6.00
Round Is. - 0.15
Frégate Is. 0.15 2.00
Moyenne - 0.15
Desroches 1.00 -

Note: The ferry from Praslin to La Digue takes approximately 30 minutes.

Accommodation

ACCOMMODATION: Although the Seychelles have been a popular tourist destination for more than 10 years and now offer the full range of accommodation from self-catering apartments to luxury hotels, careful planning has ensured that the islands have retained the astonishing beauty and quiet charm that attracted the first tourists. Right from the start, the Government decreed that no new building could be higher than the surrounding palm trees, with the result that big-city levels of comfort and convenience have been achieved in thoroughly Seychellois settings. There are about 4500 hotel beds on the islands and it is advisable to confirm reservations with a deposit, particularly during the high season from December to January and in July and August. For further information, contact the Seychelles Hospitality and Tourism Association, 1st Floor, STMA HQ, Bel Ombre, PO Box 1174, Victoria (tel: 620 210; fax: 620 214; e-mail: sha@seychelles.net; website: www.shta-seychelles.com).

HOTELS & GUEST HOUSES: All recently built hotels come well up to international standards and there are numerous large resort hotels equipped with air conditioning, private bathrooms, swimming pools and full sporting facilities. Older hotels and guest houses on the smaller islands may lack some sophistication, but their charming seclusion has long recommended them to those seeking complete peace and privacy: Somerset Maugham once sought out the quietest so that he could write a novel without interruption. Many hotels and guest houses are former plantation houses modestly modernised and run by the resident owner. Thatched-roof chalets and guest houses, built in the local style, are to be found mainly on outlying islands. The Seychelles Hotel Association comprises some 74 hotels on the islands. More information is available from the Association (see above for address and telephone number). For up-to-date prices, contact the Tourist Office (see Contact Addresses section).

SELF-CATERING: Self-catering units are available on the main islands. For details, contact the Tourist Office.

YOUTH AND CAMPING: There are no youth hostels and camping is not permitted.

Sport & Activities

Watersports: Coral reef diving is possibly the main sporting attraction in the Seychelles. Spearfishing is forbidden and, perhaps as a consequence, the fish are not afraid of people. The clear water makes conditions perfect for underwater photography. The coastal waters are a haven for 100 species of coral and over 900 species of fish. The annual Subios underwater festival is held in the Seychelles over a 3-week period in November and attracts underwater experts from all over the world. Snorkelling is also very popular, with many snorkelling spots conveniently close to the beaches; most of the larger hotels rent out snorkelling equipment. A favourite location for snorkelling is the St Anne National Marine Park, which encompasses six islands off the coast of Mahé. Details about the Seychelles’ best dive sites are also available from the Seychelles Tourist Office (see Contact Addresses section). Game fishing is a comparatively new sport in the Seychelles, but the abundance of fish has already made the islands popular with enthusiasts. Fishing seasons are governed by weather conditions: from May to September, the trade winds blow from the southeast; and from November to February, from the northwest. Black, blue and striped marlin, sailfish, yellowfish and dogtooth tuna, wahoo and barracuda are just a few of the game fish found in these tropical waters. Power boats, cabin cruisers and yachts are available for charter for anglers and others wishing to explore the islands at their own pace. Vessels may be booked in advance by the day, week or month. Reservations may be made at local agents or through The Marine Charter Association, PO Box 204, Victoria, Mahé (tel: 224 679; fax: 322 126; e-mail: mca@seychelles.net; website: www.seychelles.net/mca). The best spots for salt water fly fishing are Alphonse and Desroches island.

Windsurfers, canoes and sailing dinghies may be hired on the more popular beaches, such as Beau Vallon Bay on Mahé, and water-skiing and paragliding are available at many other resort areas. Equipment may be hired.

Other: A new 18-hole golf course has recently been opened on Praslin at the Lemuria Hotel (contact the Seychelles Tourist Office for details; see Contact Addresses section).
There are also opportunities for squash, tennis and badminton. Organised hiking and walking tours are available to explore the islands’ flora and fauna; some of the best trails are on Aride, Mahé, Praslin and Silhouette.

Social Profile

Food & Drink: Seychellois Creole cuisine is influenced by African, Chinese, English, French and Indian traditions. The careful blending of spices is a major feature and much use is made of coconut milk and breadfruit. Local specialities include kat-kat banane, coconut curries, chatini requin, bourgeois grillé, soupe de tectec, bouillon bréde, chauve-souris (fruit bat), cari bernique, salade de palmiste (made from the ‘heart’ of the coconut palm and sometimes known as ‘millionaire’s salad’) and la daube (made from breadfruit, yams, cassavas and bananas). Breadfruit is prepared in similar ways to the potato (mashed, chipped, roasted and so on) but has a slightly sweeter taste. Other locally produced fruits and vegetables include aubergines, calabashes, choux choutes, patoles, paw-paws (papaya), bananas, mangoes, avocados, jackfruits, grapefruits, guavas, lychees, pineapples, melons, limes and golden apples. Lobster, octopus, pork and chicken are used more frequently than beef or lamb, which must be imported. Most restaurants offer a few items of what is termed ‘international’ cuisine, generally with a bias towards preparations of fresh fish and shellfish, as well as the Creole delicacies mentioned above. There are Italian and Chinese restaurants on Mahé. Some of the main hotels have bakeries and home-baked bread is also a feature of some of the small guest houses and lodges. Waiter service is the norm. All restaurants which are members of the Seychelles Restaurateurs’ Association quote an average price per person for a 3-course meal inclusive of two glasses of wine and coffee. Prior notice should be given in restaurants for groups of four or more and advance bookings should be made for restaurants on Round and Cerf and for La Réserve restaurant on Praslin.

A wide range of wines, spirits and other alcoholic beverages is available in the Seychelles. Seybrew, a German style lager, is made locally. The same company produces Guinness under licence and soft drinks. Local tea is also popular – see below under Shopping. A hotel licence permits hotel residents to drink at any time. Alcohol can be sold to anyone between Mon-Fri 1400-1800, Sat 0800-1200 and 1400-1800. Other bars open 1130-1500 and 1800-2200. It is illegal to drink alcohol on any road or in public.

Nightlife: Largely undeveloped and unsophisticated. There is, however, much to be enjoyed in the evenings, and a speciality is the local camtolet music, often accompanied by dancers. Several hotels have evening barbecues and dinner dances. Theatre productions are often staged (in Creole, English and French) and there are cinemas in Victoria and casinos at Beau Vallon Bay Hotel and the Plantation Club.

Shopping: Local handicrafts include work with textiles (such as batik), fibres (such as basketwares, table-mats and hats) and wood (such as traditional furniture, ornaments and model boats). Pottery and paintings may also be bought. Special souvenirs might include jewellery made from green snail shells. Tea-growing and manufacturing in the Seychelles is done on a small scale. Local tea can be bought in the shops or when visiting the tea factory on Mahé, where many blends of tea may be sampled at the Tea Tavern. Vanilla is cultivated as a climbing plant around the base of trees as it can be pollinated by hand. Pods can be bought in shops and used as flavouring. Cinnamon grows wild on all the islands. It can be bought as oil or in quills made from dried bark which can be freshly grated before use. Shopping hours: Mon-Fri 0900-1600, Sat 0800-1200. Some shops close weekdays 1200-1300.

Special Events: For a full list of events, contact the Seychelles Tourist Office (see Contact Addresses section). The following is a selection of special events occurring in the Seychelles in 2004:
Mar Atlas Seychelles Charity Fishing Tournament, Mahé. May 25 FetAfrik: Africa Day Celebrations. Jun Agricultural and Horticultural Show, Mahé. Aug-Sep Round Table Annual Regatta, Mahé. Oct 25-Nov 2 Creole Festival (celebration of Creole food, dance and music). Dec Christmas Show, Mahé.

Social Conventions: The people live a simple and unsophisticated island life and tourism is carefully controlled to protect the unspoilt charm of the islands. Before the international airport opened in 1971, the islands could be reached only by sea, and since they are miles from anywhere, visitors were few and far between and the people were little influenced by the outside world. They developed their own language and culture which – like so many things on the islands – are unique. Shaking hands is the customary form of greeting. The Seychellois are very hospitable and welcome guests into their homes. When visiting someone’s home, a gift is acceptable. A mixture of imperial and metric systems operates. For example, petrol is dispensed in litres, whilst bars sell bottled and draught beer in half-pint measures. Casual wear is essential and formal clothes are only worn by churchgoers. Swimwear should only be worn on the beaches. Tipping: Tips in restaurants, hotels, to taxi drivers, porters and so on are usually already included, as 5 to 10 per cent of the bill or fare. All hotel and restaurant tariffs include a service charge, but payment is not obligatory.

Business Profile

Economy: Tourism is the largest industry in the Seychelles’ economy; it now accounts for over 20 per cent of GDP, and draws 70 per cent of foreign exchange earnings. The service sector as a whole covers three-quarters of the Seychelles’ economy.
Despite a shortage of fertile land, the agricultural sector produces copra for export, a variety of cash crops including tea and vanilla, and staple foods like cassava and sweet potatoes for domestic consumption. Fishing became increasingly important from the 1980s onwards, both through expansion of domestic operations and the lucrative sale of licences to foreign fleets. Industry comprises a small mining sector which extracts guano (rich in minerals) and some natural gas, plus light and small-scale industries including food and drinks (notably a tuna-canning operation), boat-building, metals, chemicals, wood products and tobacco. There is also a thriving re-export business based on a recently established export-processing zone. Extensive searches for offshore oil and gas reserves have so far been unsuccessful. The economy’s heavy dependence on tourism makes it especially vulnerable to external factors (such as the September 11 attacks on the USA), over which it has no control. In 1995, in an attempt to diversify the service economy away from tourism, the Government started to promote the Seychelles as an ‘offshore’ financial services centre. This has been moderately successful, especially given that this is now a highly competitive and – because of concerns about fraud and money-laundering – controversial field.

After several years of recession, the economy is growing slowly. The main financial problem is the size of the country’s external debt. The Seychelles must import many essential products – an expensive process given the islands’ location – and this consumes the bulk of the foreign exchange earned from tourism.

The Seychelles is a member of the African Development Bank and the Indian Ocean Commission (which provides for regional economic co-operation). The Seychelles’ principal trading partners are the UK, Yemen (the main source of imported oil), Germany and the countries of the South African Customs Union (South Africa, Botswana, Namibia, Lesotho and Swaziland).

Business: Businessmen do not wear suits and ties, although a smart appearance is advised. Most executives speak English and/or French. Office hours: Mon-Fri 0800-1600.

Commercial Information: The following organisation can offer advice: Seychelles Chamber of Commerce and Industry, PO Box 599, Ebrahim Building, Victoria, Mahé (tel: 323 812; fax: 321 422; e-mail: scci@seychelles.net).
Conferences/Conventions: Further information from Mason’s Travel, Michel Building, PO Box 459, Victoria, Mahé (tel: 322 642; fax: 225 273; e-mail: info@masonstravel.com; website: www.masonstravel.com); or Creole Holidays, Orion Building, PO Box 611, Victoria, Mahé (tel: 280 100; fax: 225 817; e-mail: webmaster@creoleholidays.sc; website: www.creoleholidays.sc); or Premier Holidays, Premier Building, PO Box 290, Victoria, Mahé (tel: 225 777; fax: 225 888; e-mail: premier@seychelles.net); or Travel Services Seychelles, Mahé Trading Building, PO Box 356, Victoria, Mahé (tel: 322 414; fax: 321 366; e-mail: tss@tss.sc).

Climate

Climate: The islands lie outside the cyclone belt but receive monsoon rains from November to February with the northwest trade winds. This hot and humid season gives way to a period of cooler weather, though the temperature rarely falls below 23°C, and rougher seas when the trade winds blow from the southeast (May to September).

Required clothing: Tropical lightweights, with rainwear advisable during the rainy season. Sun hats and sunglasses essential all year round.

Economic and Trade Relations with Seychelles

General Trend of Trade with India
Trade between India and Seychelles has shown a marked decline from the estimated 3.5 per cent during the year 2000 to 1.4 per cent during 2001 and 2% in 2002. When viewed against the overall decline in Seychelles trade by 27%, there is only a marginal decline of trade with India in 2002 compared to the earlier highest figure of 3.5%. The figure got a boost (around 4%) on account of partial utilization of the EXIM Line of Credit for imports of TATA and Ashok Leyland buses in 2003.

Important Features of Trade with India
In 1978, Tata Exports helped set up the Seychelles Public Transport Corporation (SPTC) by providing 80 buses on commercial terms. In the year 2000, 34 TATA buses with spares were imported under a US$ 2 million Line Of Credit advanced by the Govt. of India. With a further US$ 5 million EXIM line of credit nearly 60 TATA and Ashok Leyland buses were added in 2003. This gave a boost the overall share of trade with India to around 4% in the year 2003. The only major investment from India is by the Bharti Telecom group who, along with partners from Mauritius, U.K. and Seychelles, have invested over $25 million to provide a second line of telecom services in the country in competition with Cable & Wireless (Seychelles). The company has recently acquired a hotel (Le Meridien Barbarons) and renovating it as a 5-star resort to get advantages of forex repatriation. The Bank of Baroda has been maintaining a branch in Seychelles since 1978 and has also been extending loans and credit lines to the Govt and Seychelles Marketing Board (SMB). The major items of import by the Govt. are through the SMB, which imports rice, onions, potatoes and soyabeans, and of late pharma products, machinery, construction material etc. from India.

Factors affecting Exports to Seychelles
The imports are a reflection of the policy of discrimination against private traders at the cost of the Seychelles Marketing Board (SMB). The Govt. has enacted stringent regulations, forcing the private sector to virtually abandon direct trade with countries like India, with restrictions on issue of forex, opening of LCs or granting of import licenses. The desperation of the Seychelles Chamber of Commerce and Industry had reached such a low that a FICCI delegation's visit to Seychelles in December 2001 had to be held in abeyance as the situation on the ground was not appropriate for the visit. The visit is still to take place. A meeting of the Jt. Trade Committee scheduled for Dec'03 had to be cancelled for the very same reason. Payment for imports made prior to June 2001 remains frozen, leading to virtual halt in trading by Indian exporters with Seychelles with nearly US$ 700,000 of export proceeds lying blocked with commercial banks from 1998 onwards. Trade is yet to pick up with India despite better connectivity than before both by air and sea. A regular shipping service is available between Mumbai and Mahe. Air Seychelles put an additional weekly flight to Mumbai from end Oct'03, thus 2 weekly flights between Seychelles and India have augmented passenger traffic and could boost tourism and trade prospects from India.

There is potential for export in areas such as food items, construction materials, drugs and pharmaceuticals, Ayurveda products, consumer durables, textiles, automobiles etc. There is no export from Seychelles to India. The initial idea of making Seychelles a regional hub has since dissipated and with lack of proper guidelines on foreign investment there has been no worthwhile investment in the country except in the tourism sector. Negotiation on BIPPA have been protracted and the government has vaccillated the fostering transparency in promoting and protecting foreign investments.

Measures taken to improve trade
Concerted efforts have been made by the mission in facilitating visits of the EXIM Bank representative and Project Director, NSIC from Johannesburg. The Mission also disseminates trade related information to concerned parties in India and Seychelles on a regular basis. The Indo-Seychelles Joint Commission has had six sessions so far, the last one was held in Mahe in October 2002. Issues concerning bilateral trade and investment were highlighted in the 6th JCM. Director, GOITO, Johannesburg visited Seychelles in Feb'03 to explore possibility of tourism from Seychelles to India. GOITO's efforts supported by the Mission have seen a steady increase in tourist traffic from Seychelles to India with two weekly connections to Mumbai.

Future prospects
The country is under immense pressure to pursue discussions with IMF and World Bank to tide over its economic difficulties and has come out with a macro economic reform package with effect from 1st July 2003 to bring about structural reforms though nothing much seem to have happened except imposition of a 12% GST (Goods and Services Tax) which has sent prices spiraling across the board making Seychelles the most expensive country in the region.
India will stand to gain from a liberalized economy, on three counts (i) the bulk of private traders are Indians and have trading link with their places of origin (ii) Indian goods are cheap and compatible - some Indian products have made inroads into Seychelles through Singapore and Mauritius and (iii) Seychelles proximity to India and the availability of air and shipping links.
Once the private sector gets energized, they will seek cheaper imports on which Indian goods have a competitive edge. India as a cheap market for trade and tourism is gaining ground and a growing number of Seychellois are visiting India for tourism, training and of late medical treatment