SHTA launches petition to modify new environment levy   |03 August 2023

The Seychelles Hospitality and Tourism Association (SHTA) has launched an online petition, calling on government to revise the newly introduced tourism environmental sustainability levy. 

The levy, which came into force on August 1, was initially announced during the 2023 budget address, and was given the green light by the cabinet of ministers last month.

It is being implemented in three tiers based on the size of the accommodation with those staying at small establishments being charged R25, while those in medium-sized and large hotels are required to pay R75 and R100 respectively, per person per night. The R100 charge also applies to yachts and island resorts.

Residents of Seychelles, staff from airline companies and all children under 12 are exempted from the levy, which is being collected directly by the tourism establishment upon checkout.

As per the government, it is a mean by which it can continue to deliver on its commitment to preserve “the breathtaking natural beauty of the archipelago, and promoting sustainable tourism”, and to further enhance conservation efforts and rehabilitation initiatives.

However, the SHTA has deemed the “imposition” of the levy as “ill-conceived and rushed” and is urging government to adopt a flat rate for all eligible visitors as opposed to the three-tier collection structure, in addition to removing the responsibility for collection from hoteliers.

Over 100 people have thus far signed the online petition to modify the payment and collection schedule.

In its most recent newsletter dated August 1, the SHTA states that it is “urgently seeking legal advice regarding the collection system being forced upon tourism establishments”.

Despite their discontent at the lack of notice as to the system and the cost of collection, the SHTA is encouraging members to momentarily abide by the measures, and to collect and pay the levy “under protest”, but to not confront tourists who express dissatisfaction and who refuse to pay.

“Government must now take full responsibility for the issuing of communications to alert tourists to the reality of the new levy and to take full responsibility for the reputational damage which will surely follow,” the newsletter states.

Chairperson on the SHTA, Sybille Cardon, explained to Seychelles NATION that the industry does not oppose the collection of an environmental levy, but, they are however against the discriminatory rates.
Mrs Cardon states that they had proposed a flat rate of R50 per person, per night.

Furthermore, the Association is proposing that the levy should be collected by government through the Seychelles Revenue Commission (SRC) upon departure, so hoteliers do not have to bear the hidden costs of collecting, especially since a number are still recovering from the Covid-19 pandemic.

Owner and director of Le Duc de Praslin hotel, Robert Payet, also shared similar sentiments, noting that he opposes the differential rates which will likely cause confusion among visitors, and most likely be problematic for hoteliers.

A good number of clients are not aware of the levy, given the short timeframe which hoteliers have been given for implementation, he added.

“We are not against a tourism levy, but we also need to consider whether it will make travels in Seychelles more expensive, if it will be problematic to our visitors. The more taxes and levies are introduced, clients will bear the brunt,” Mr Payet stated.

Mr Payet added that most visitors will willingly pay the levy if it is widely communicated through an effective marketing campaign towards a worthwhile cause.

Another suggestion from the industry is to have visitors pay the levy through the travel authorisation platform, or Travizory.

While a substantial proportion of the industries are dissatisfied with the fee and collection modality, others have no qualms about it.

Owner of a small establishment shared on social media that they have not received complaints from their clients in paying the levy, adding that “they understand the importance of it” and that it depends on how hoteliers pass on the information to guests.

According to the SHTA, concerns are not limited to accommodation establishments, as the yachting sector is also dissatisfied with how the levy has been designed and imposed. Although a lucrative sector for the Seychelles, the sector has recently suffered “enormous” increases in operating costs as compared to 2022, with increases in license costs, and safety certificates among others.

Fees applicable to clients are also on the rise, which could potentially reap negative impacts for the sector in going forward says the SHTA, based on its communication with actors from the sector.

Laura Pillay