Many risks and opportunities linked to the reopening of Mauritius’s borders

The DPM was speaking at the opening ceremony of a two-day Communication Workshop on Financial Support and Schemes to the Tourism Sector targeting Tourist Associations and Operators of the industry.  The event is organised by the Tourism Authority in collaboration with SME Mauritius Ltd.  The objectives are to inform participants on the various schemes put in place and on the Green Financing mechanisms available; and address any queries with regards to the existing schemes and the procedure to follow. 

The work agenda comprises presentations on the following: support schemes by the Mauritius Commercial Bank and the State Bank of Mauritius; financial support by the Development Bank of Mauritius; support initiatives by the Tourism Authority; and guidelines and schemes by the Mauritius Revenue Authority.

In his address, Mr Obeegadoo highlighted the importance of public-private partnership in the tourism sector and the need to work together in the interest of Mauritius to counter the Covid-19 threat. The priority of Government is to safeguard employment in all economic sectors, he further stated.

Speaking about the tourism industry, the DPM recalled that the sector employs 100,000 people, generates 40,000 direct jobs and contributes up to 8% of the GDP.  The contribution peaks up to about 23% of the GDP with tourism activities in the formal and informal sectors.  In 2019, tourist arrivals for Mauritius reached 1.4 million which generated Rs 63 billion. However, since the beginning of 2020, only 300,000 tourists visited Mauritius, he noted.

The Minister recalled that during the entire lockdown period, Government chose to safeguard employment.  As such, employers from the formal sectors received Government’s financial aid through the provision of an equivalent of half of a one month’s basic wage up to a cap of Rs 25,000 of assistance per employee.  As for employees in the informal sector, they received aid amounting to more than Rs 5,000 in order to be able to support their families, he remarked.

According to Mr Obeegadoo, since the borders continue to remain closed, Government is supporting the tourism sector through the Wage Assistance Scheme which concerns, among others, hotels, guest houses, tourist residences and other accommodations which hold a tourist accommodation certificate issued by the Tourism Authority. From March to July 2020, Government has spent nearly Rs 2 billion to support this initiative, he indicated.

However, stated the DPM, the tourism sector will not be able to rely indefinitely on Government’s assistance. Consequently, Government will proceed in phases to allow, first and as soon as possible, the return of all stranded Mauritians in the safest way possible to protect the country from a second wave, he pointed out.  The second phase will entail allowing the arrivals of tourists as the borders will have to open one day and the tourism industry must restart its operations, said the DPM.

The Deputy Prime Minister also said that Government is fully aware of the concerns of tourism operators, and their wish to have an indicative date of the reopening of Mauritian borders.  He reiterated that Government will continue to support the industry jointly with SME Mauritius Ltd, the Tourism Authority, the Mauritius Tourism Promotion Authority, the European Union and all the partners, so as to be successful in this difficult transition phase in ensuring a safe reopening of the borders at the earliest and under the best of conditions.