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Illegal tourism businesses urged to formalize their operations |12 December 2017

As from today December 12, all establishments offering accommodation to tourists without a proper licence are being asked to either come forward to start procedures to legalise their activity or stop doing it altogether.

They will have a period of three months -- that is up to March 12, 2018 -- to comply.

From this date all establishments found operating without a licence will be dealt with under the law.

The Minister for Tourism, Civil Aviation, Ports and Marine, Maurice Loustau-Lalanne, said the department of tourism is willing to work with them, advise them and help them to regularise their activity so they can continue to operate but with the required standard and within the recommended legal framework.

Establishments wishing to start procedures to regularise their activity can get in touch with officials from the tourism department on 4286500.

Minister Loustau-Lalanne announced the decision during a meeting with the press yesterday morning at Botanical House. He was flanked by representatives of different agencies namely the department of tourism, Seychelles Revenue Commission (SRC), Seychelles Licencing  Authority (SLA) and the police.

Minister Loustau-Lalanne said all concerned authorities will work according to a master list of these establishments and a team made up of representatives of the previously mentioned agencies will visit these establishments to collect more information and get first hand evidence from any visitors found on site during the inspection visits.

At the International Airport, Minister Loustau-Lalanne said immigration officers will step up their effort to identify visitors who if any found to be going to stay at one of the establishments considered illegal they will be referred to the STB office  where they will be led to one which is operating legally.

The minister said the decision to address the situation followed discussion by the tourism multi-sectorial committee after which recommendations were submitted to the Cabinet and decision has been taken to address the issue of illegal tourism related activities which are taking place and at an increasing level. These include boats being chartered for excursions, private homes being rented as tourism accommodations, among others.

Minister Loustau-Lalanne said to start with the focus will be on accommodation facilities but will later turn to tackle the issue of boat charters as more indepth investigation is carried out in that area.

He pointed out that it is becoming a concern as more and more establishments offering accommodation to visitors  but which do not have a licence to operate legally are listing on social reservation networks like airbnb.com. 

“There are currently over 200 such establishments and they are scattered everywhere on Mahé, Praslin and La Digue. They vary in size from one-bedroom to several bedrooms and some are situated on Eden Island,” Minister Loustau-Lalanne pointed out.

He went on to note that under the SLA Act, accommodating a foreign visitor without a licence is liable to a R50,000 fine and a jail term of up to five years.

He said they will step up their effort to apply the law with those who fail to comply.

Minister Loustau-Lalanne added that in its effort to address the situation the tourism department wants to ensure the activity meets the required standards   to prevent embarrassing the tourism industry in the event that a mishap befall the visitors in an establishment which is not licenced and provides no insurance cover.

He added that a lot of questions will be raised with regard to the measure but all these will be addressed and clarified during the accommodation owners  interactions with officials at the department of tourism.

Meanwhile Marie-France Fanchette, assistant commissioner for domestic tax at the SRC, has said that these accommodations are being taxed because they are deriving a revenue from the activity even though it is not legal.

“We are mandated to collect revenue but we are aware that the issue of illegal operation was not being addressed. We conducted a massive exercise to compile a list of all these establishments which we exchanged with the department of tourism and we therefore welcome the move to push for these establishments to regularise their activity and conform with regulations for the benefit of everyone,” Ms Fanchette pointed out.

Minister Loustau-Lalanne said the aim is to safeguard the tourism industry.

 

 

 

 

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