Seychelles, Countries COMESA (SIDS) States Developing Islands Small the of 29 to FDI on Report UNCTAD 2014 the Canada, Kingdom

Figure 5. economies due to the fiscal advantages they offer. offer. they advantages fiscal the to their of due size economies the to relative high is FDI that suggest Mauritius Comoros, Seychelles, countries COMESA (SIDS) States Developing Islands Small the of 29 to FDI on report UNCTAD 2014 The Canada, Kingdom. United Bahrain, and Emirates Arab Bermuda, United India, Hungary, Germany, from are investors sector. construction the in especially Investment Seychelles the created. of was Bureau 2004 realisation the July in in burden projects, tape red the reduce million. 180 US$ to million 38 US$ from 2008 and 2004 between particular in up rocketed but 70s the since trend upward an on been have FDI of Inflows DIRECT INVESTMENTFOREIGN (FDI) has services travel in trade 2009. since year every increased on surplus net The 4). Figure (see exports services of 72% for accounted tourism) for proxy (a services travel 2012 in exporters: or 56.5% jobs. 24,100 was industry, the by jobs supported Seychelles: including indirectly employment, to in Tourism & Travel employer of main contribution total the 2013, in WTTC, the to the according is Tourism Travel services share in services trade in services share services Travel 19

Travel services are the largest service service largest the are services Travel 22

22 n 03 FI nlw increased inflows FDI 2013, In 9

among which the the which among 20

The leading leading The Internet: address:Postal Streetaddress: Telephone: E ServicesSenior Officer Brockman,Trade in Contactperson: tion additionalFor informa-

- mail:

JaneDrake 5

To To –

- www.intracen.org ITC, ITC, +41 drake hotels and restaurants, construction, transport and and communications. transport construction, restaurants, and hotels the on centres interest investor foreign Seychelles, of case In regimes. tax favourable of result a as centres financial offshore of hosts become have SIDS Several FOOTNOTES / SOURCES - 7. 6. 5. 4. 3. 2. 1. 23. 22. 21. 20. 19. 18. 17. 16. 15. 14. 13. 12. 11. 10. 9. 8. 22730 0446 Palaisdes Nations, 1211 GenevaSwitzerland10, 54 -

[email protected] -

56Rue deMontbrillant, 1202 Geneva, Switzerland tential States Developing Island Small in « 2014, UNCTAD, COMESARegional Investment Agency. Focus:Africa 2014 : Seychelles. Bank Development African Council EconomicImpact 2014: Tourism Seychelles. & Travel World Seychellesgovernment. Seychelles. Ocean Indian the and Africa East Tourism 2007 Profit Pro€Invest, chelles. 2012/2013 Region Re- Africa NaturalKPMG Environment, of sourcesand Transport. As- Ministry Development Impact Seychelles African Social AXIOM,Bank, (ESIAS)”, and Study “Environment sessment 2010, Survey, IX Forum Economic ranks Seychellesas 2nd best IT centrein Africa”. “World 2014, Agency, News Seychelles Society Information the 2013′report (2013). ‘Measuring from facts Progress broadband Internet Tracking Africa ITU May2010. development, ICT in Africa leads Seychelles focus: Country (ITU) Union Telecommunication International http://www.mfw4a.org/ at: seychelles/financial online Available Profile. Sector Africa for Work Finance Making TradeITC Map. Country cial Data. Division Statistics Nations United Socialand other Services and Activities. Community, Administration, Public services, Administrative Trade, Construction, Transportation,Accommodation and activities: Food and Business and economic aggregate wing follo- the employedin old, years15 thanolder individuals for ILOSTATDatabase World Bank World Bank World Bank derivedTradefrom Map (ITC, UNCTAD, WTO jointdataset). figures all for Data services. commercial for is data trade All constructionand utilities. Force Survey, TradeProfile,WTO ITC Trade Map. Database ILOSTAT Data, Country Official counts division statistics UN from: derived data Key h srie pretg o idsr vle de includes added value industry of percentage services The –

Countryprofile, Seychelles (2013). ».

– - –

World DevelopmentWorld Indicators. Global EconomicProspects. CountryOverview, Seychelles. –

23 Countryprofile : Seychelles.

- Global Investment Trends Monitor Trends Investment Global

sector –

LabourForce Survey annual : average

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- profile.html einl netet Conference Investment Regional –

fia Eooi Outlook Economic African –

–

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ainl cons Offi- Accounts National - ecels Financial : Seychelles

onr Poie Sey- Profile, Country rvl Tourism & Travel fia itre and internet African

–

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– –

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–

Labour –

FDI – –

Seychelles snapshot Services KEY SERVICES DATA is traditionally the main contributor to GDP and the the and GDP to contributor main the traditionally is services is economy The 2016. 3% in around stabilise to growth for is outlook growth term the 3.5%. at 2013 completed, in slower grew economy were remarkably, projects investment large recovered as has However, 2011. in 5% of rate growth GDP a recording Seychelles crisis, 2013. in 14,220 US$ high island an is Seychelles SERVICES AAT GLANCE Services trade Services surplus: imports: Services exports: Services (17%) travel (25%), services commercial other (58%), 2012: importServices composition (7%) services commercial (21%),other transportation 2012: exportServices composition exports: share oftotal Services Trade services in share ofemployment: Services Services - middle income country with a GDP per capita of of capita per GDP a with country income middle 2

share of industry value added 2012: added2012: value share ofindustry 6

US$ 502 million US$ US$ 221million US$ contribution to GDP: contribution 4

Since the 2008 global financial financial global 2008 the Since - US$ 281 million 281 US$ state economy classified as a a as classified economy state 1 - , 2013 , based: the services sector sector services the based:

47.5% 87%

travel (72%), (72%), travel transportation transportation

58% 5

The medium medium The

88%

transport services becoming much less important important less important. more travel services and much with becoming dramatically services shifted transport has composition export the 2011, to years 6 the Over 2012. in a million 5 in US$ and million surplus 9 to down services financial trade in deficit trade net declining US$ to net services increasing communication an 2012) in combined million 276 (US$ services travel net in surplus trade The large a 2013). from results in trade services million on surplus 248 (US$ trade goods services million, 281 US$ of commercial trade in surplus a runs years. country previous The the from decrease a is which GDP to 58% contributed trade services year, following The in 2012. GDP of for88% 2013). in employment to 87% (contributing employer main million was recorded. million and 1) Figure (see exports services of 8% for accounted services financial other adequately is and insurance 2011, In small. quite though capitalized sector financial the global crisis, and economic downturn economic recent the Despite services Financial SERVICES SUBSECTORS 7

n value In - added terms, the sector accounted accounted sector the terms, added © James

which exceeds the deficit in deficit the exceeds which a net trade deficit of US$ 5 US$ of deficit trade net a

© Ken Teegardin Banking sector is dominated by state and foreign Figure 2. Financial services share in services trade subscriptions per 100 inhabitants whose prices were sandy tracks. Public transport means to move around institutions, as plans to privatize state-owned financial below 5% of GNI per capita, whereas the average and between islands include buses, taxis and ferries 13 18 institutions have tended to be delayed. There are 8 African fixed broadband price of 64% of GNI. (CatCoco and Inter Island Ferry). Water Cruise and cargo ships call at Mahé but there are no scheduled commercial banks operating in the country holding There are 2 telecoms providers, Airtel Seychelles and international passenger services. Privately-owned almost 83% of outstanding government securities and Cable & Wireless Seychelles, and two local Internet schooners provide regular inter-island connections dominating the market. Commercial banks also services providers: Kokonet and Intelvision.14 between Mahé, Praslin and La Digue. Private charter operate in housing finance, dominated by semi-public Between 2008 and 2012, Cable and Wireless and boats operate to the other islands.17 institutions. 6 of the commercial banks are foreign Airtel, together with the government, funded the owned: Barclays Bank, Mauritius Commercial Bank construction of the Seychelles East Africa System (Seychelles), Habib Bank Ltd., Bank of Baroda, Bank (SEAS) cable. The SEAS is an almost 2,000 km long Tourism Al Habib Ltd., Bank of Ceylon. The remaining two are submarine fibre-optic cable, linking the country from previously state-owned banks that are being its landing site in the main island, Mahé, into the The tourism sector represents one of the economy restructured: Seychelles Commercial Bank (formerly existing SEACOM and Eastern Africa Submarine key sectors based on the country’s unique Seychelles Savings Bank) and Seychelles Cable System (EASSy) systems on the African biodiversity, cultural richness and wide maritime International Mercantile Banking Corporation (SIMBC) coast.17 With the SEAS cable landing, the international environment. In 2010, the “Vanilla Islands initiative” “Nouvobanq”. 10 13 Figure 3. Communication services share in services trade bandwidth almost tripled in 2012. was born with the idea to unite the seven Indian Ocean islands – Comoros, Réunion, Madagascar, The number of depositors with commercial banks per Seychelles is a net exporter of communication Maldives, Mayotte, Mauritius and Seychelles – under 1,000 adults has almost doubled between 2008 and services. The subsector recorded a trade surplus of one tourism brand. This led three years later to the 2012, from 590 to 1,025, while, over the same period, US$ 9 million in 2012. In the same year, formation of the Vanilla Islands Tourism Organization, the number of borrowers from commercial banks per communication services imports accounted for less 5 backed by the member governments and supported 1,000 adults increased by 34% from 116 to 155. than 1% of services imports, whereas the exports by the United Nations World Tourism Organization share was 2% (see Figure 2).9 Two pension funds and 4 licensed domestic (UNWTO). insurance companies currently operate in the country; the latter rely heavily on re-insurance from overseas In 2013, Travel & Tourism contributed 56.5% to GDP Transport services 19 companies. 10 and this is expected to rise. According to AfDB African Economic Outlook 2014, an increase in In 2012, transport services recorded a trade deficit tourism’s contribution to GDP between 2012 and (US$ 24 million) for the first time in nearly a decade. Communication services 2013 was due to a 10% increase in tourist arrivals as Between 2011 and 2012 there was a sharp decrease Seychelles diversified its markets beyond Europe to in the transport services share of total services Despite its geographically isolated position, new markets in Asia, Eastern Europe and Africa, exports from 30% to 22%. On the other hand, the Seychelles well-developed communications system along with the easing of global financial crisis. Figure 4. Transport services share in services trade transport services share of total services imports placing the country among the leaders in the region Construction of additional resorts and hotels is also a increased by 11% from 52% to 58% (see Figure 3). with regard to Information and Communications factor anticipating further growth in the short term.20 In 11 This made transport services the largest services Technology (ICT) deployment. In 2013, 23 fixed- 2012, 208,000 international tourism arrivals were import subsector.9 telephone subscriptions and 147 mobile-cellular recorded. The number of international tourists has 12 subscriptions per 100 inhabitants were recorded. The country has 14 airports.16 The national airline Air been on an upward trend since the establishment of Almost 60% of households had a computer, Seychelles operates international services. Helicopter the international airport in 1971.4 The average length increasing from 25% only in 2010, and 51% had (Seychelles) Ltd. provides an inter-island shuttle of stay per visitor has been consistently recorded at Internet access at home. Half of the population used service and scenic charter flights.17 around 10 nights. Approximately 80% of arrivals are Internet (50%), making Seychelles the African country 21 There are no railways. There are 508km of roads of international tourists coming from Europe. Tourism with the highest percentage of individuals using which, 490 km are paved16; elsewhere the roads are activities are, after fisheries, the second main source Internet. There were 13 fixed (wired)-broadband of foreign exchange earnings.19 Banking sector is dominated by state and foreign Figure 2. Financial services share in services trade subscriptions per 100 inhabitants whose prices were sandy tracks. Public transport means to move around institutions, as plans to privatize state-owned financial below 5% of GNI per capita, whereas the average and between islands include buses, taxis and ferries 13 18 institutions have tended to be delayed. There are 8 African fixed broadband price of 64% of GNI. (CatCoco and Inter Island Ferry). Water Cruise and cargo ships call at Mahé but there are no scheduled commercial banks operating in the country holding There are 2 telecoms providers, Airtel Seychelles and international passenger services. Privately-owned almost 83% of outstanding government securities and Cable & Wireless Seychelles, and two local Internet schooners provide regular inter-island connections dominating the market. Commercial banks also services providers: Kokonet and Intelvision.14 between Mahé, Praslin and La Digue. Private charter operate in housing finance, dominated by semi-public Between 2008 and 2012, Cable and Wireless and boats operate to the other islands.17 institutions. 6 of the commercial banks are foreign Airtel, together with the government, funded the owned: Barclays Bank, Mauritius Commercial Bank construction of the Seychelles East Africa System (Seychelles), Habib Bank Ltd., Bank of Baroda, Bank (SEAS) cable. The SEAS is an almost 2,000 km long Tourism Al Habib Ltd., Bank of Ceylon. The remaining two are submarine fibre-optic cable, linking the country from previously state-owned banks that are being its landing site in the main island, Mahé, into the The tourism sector represents one of the economy restructured: Seychelles Commercial Bank (formerly existing SEACOM and Eastern Africa Submarine key sectors based on the country’s unique Seychelles Savings Bank) and Seychelles Cable System (EASSy) systems on the African biodiversity, cultural richness and wide maritime International Mercantile Banking Corporation (SIMBC) coast.17 With the SEAS cable landing, the international environment. In 2010, the “Vanilla Islands initiative” “Nouvobanq”. 10 13 Figure 3. Communication services share in services trade bandwidth almost tripled in 2012. was born with the idea to unite the seven Indian Ocean islands – Comoros, Réunion, Madagascar, The number of depositors with commercial banks per Seychelles is a net exporter of communication Maldives, Mayotte, Mauritius and Seychelles – under 1,000 adults has almost doubled between 2008 and services. The subsector recorded a trade surplus of one tourism brand. This led three years later to the 2012, from 590 to 1,025, while, over the same period, US$ 9 million in 2012. In the same year, formation of the Vanilla Islands Tourism Organization, the number of borrowers from commercial banks per communication services imports accounted for less 5 backed by the member governments and supported 1,000 adults increased by 34% from 116 to 155. than 1% of services imports, whereas the exports by the United Nations World Tourism Organization share was 2% (see Figure 2).9 Two pension funds and 4 licensed domestic (UNWTO). insurance companies currently operate in the country; the latter rely heavily on re-insurance from overseas In 2013, Travel & Tourism contributed 56.5% to GDP Transport services 19 companies. 10 and this is expected to rise. According to AfDB African Economic Outlook 2014, an increase in In 2012, transport services recorded a trade deficit tourism’s contribution to GDP between 2012 and (US$ 24 million) for the first time in nearly a decade. Communication services 2013 was due to a 10% increase in tourist arrivals as Between 2011 and 2012 there was a sharp decrease Seychelles diversified its markets beyond Europe to in the transport services share of total services Despite its geographically isolated position, new markets in Asia, Eastern Europe and Africa, exports from 30% to 22%. On the other hand, the Seychelles well-developed communications system along with the easing of global financial crisis. Figure 4. Transport services share in services trade transport services share of total services imports placing the country among the leaders in the region Construction of additional resorts and hotels is also a increased by 11% from 52% to 58% (see Figure 3). with regard to Information and Communications factor anticipating further growth in the short term.20 In 11 This made transport services the largest services Technology (ICT) deployment. In 2013, 23 fixed- 2012, 208,000 international tourism arrivals were import subsector.9 telephone subscriptions and 147 mobile-cellular recorded. The number of international tourists has 12 subscriptions per 100 inhabitants were recorded. The country has 14 airports.16 The national airline Air been on an upward trend since the establishment of Almost 60% of households had a computer, Seychelles operates international services. Helicopter the international airport in 1971.4 The average length increasing from 25% only in 2010, and 51% had (Seychelles) Ltd. provides an inter-island shuttle of stay per visitor has been consistently recorded at Internet access at home. Half of the population used service and scenic charter flights.17 around 10 nights. Approximately 80% of arrivals are Internet (50%), making Seychelles the African country 21 There are no railways. There are 508km of roads of international tourists coming from Europe. Tourism with the highest percentage of individuals using which, 490 km are paved16; elsewhere the roads are activities are, after fisheries, the second main source Internet. There were 13 fixed (wired)-broadband of foreign exchange earnings.19 Figure 5. economies due to the fiscal advantages they offer. offer. they advantages fiscal the to their of due size economies the to relative high is FDI that suggest Mauritius Comoros, Seychelles, countries COMESA (SIDS) States Developing Islands Small the of 29 to FDI on report UNCTAD 2014 The Canada, Kingdom. United Bahrain, and Emirates Arab Bermuda, United India, Hungary, Germany, from are investors sector. construction the in especially Investment Seychelles the created. of was Bureau 2004 realisation the July in in burden projects, tape red the reduce million. 180 US$ to million 38 US$ from 2008 and 2004 between particular in up rocketed but 70s the since trend upward an on been have FDI of Inflows DIRECT INVESTMENTFOREIGN (FDI) has services travel in trade 2009. since year every increased on surplus net The 4). Figure (see exports services of 72% for accounted tourism) for proxy (a services travel 2012 in exporters: or 56.5% jobs. 24,100 was industry, the by jobs supported Seychelles: including indirectly employment, to in Tourism & Travel employer of main contribution total the 2013, in WTTC, the to the according is Tourism Travel services share in services trade in services share services Travel 19

Travel services are the largest service service largest the are services Travel 22

22 n 03 FI nlw increased inflows FDI 2013, In 9

among which the the which among 20

The leading leading The Internet: address:Postal Streetaddress: Telephone: E ServicesSenior Officer Brockman,Trade in Contactperson: tion additionalFor informa-

- mail:

JaneDrake 5

To To –

[email protected] -

56Rue deMontbrillant, 1202 Geneva, Switzerland Socialand other Services and Activities. Community, Administration, Public services, Administrative Trade, Construction, Transportation,Accommodation and activities: Food and Business and economic aggregate wing follo- the employedin old, years15 thanolder individuals for ILOSTATDatabase World Bank World Bank World Bank derivedTradefrom Map (ITC, UNCTAD, WTO jointdataset). figures all for Data services. commercial for is data trade All constructionand utilities. Force Survey, TradeProfile,WTO ITC Trade Map. Database ILOSTAT Data, Country Official counts division statistics UN from: derived data Key tential States Developing Island Small in « 2014, UNCTAD, COMESARegional Investment Agency. Focus:Africa 2014 : Seychelles. Bank Development African Council EconomicImpact 2014: Tourism Seychelles. & Travel World Seychellesgovernment. Seychelles. Ocean Indian the and Africa East Tourism 2007 Profit Pro€Invest, chelles. 2012/2013 Region Re- Africa NaturalKPMG Environment, of sourcesand Transport. As- Ministry Development Impact Seychelles African Social AXIOM,Bank, (ESIAS)”, and Study “Environment sessment 2010, Survey, IX Forum Economic ranks Seychellesas 2nd best IT centrein Africa”. “World 2014, Agency, News Seychelles Society Information the 2013′report (2013). ‘Measuring from facts Progress broadband Internet Tracking Africa ITU May2010. development, ICT in Africa leads Seychelles focus: Country (ITU) Union Telecommunication International http://www.mfw4a.org/ at: seychelles/financial online Available Profile. Sector Africa for Work Finance Making TradeITC Map. Country cial Data. Division Statistics Nations United h srie pretg o idsr vle de includes added value industry of percentage services The –

Countryprofile, Seychelles (2013). ».

– - –

World DevelopmentWorld Indicators. Global EconomicProspects. CountryOverview, Seychelles. –

23 Countryprofile : Seychelles.

- Global Investment Trends Monitor Trends Investment Global

sector –

LabourForce Survey annual : average

–

- profile.html einl netet Conference Investment Regional –

fia Eooi Outlook Economic African –

–

– is iiain ad Po- and Limitations its :

–

ainl cons Offi- Accounts National - ecels Financial : Seychelles

onr Poie Sey- Profile, Country rvl Tourism & Travel fia itre and internet African

–

Country profile:Country

– –

National Ac- National ITU News ITU

–

Labour –

FDI – –

share of industry value added 2012: added2012: value share ofindustry 6

US$ 502 million US$ US$ 221million US$ contribution to GDP: contribution 4

47.5% 87%

travel (72%), (72%), travel transportation transportation

58% 5

The medium medium The

88%

which exceeds the deficit in deficit the exceeds which a net trade deficit of US$ 5 US$ of deficit trade net a