More than 150 new hotel rooms planned for outer islands |18 October 2004

Mr Nitin Vashisht, GM of MK Resorts Seychelles, told journalists that the company hopes to add around 50 rooms to the resorts on Alphonse and Desroches, for which it will acquire the management lease on November 1, and to build an all new 65 room resort on Platte.

Speaking on Friday at the Ministry of Land Use and Habitat's Independence House offices, Mr Vashisht described MK Resorts as, "very confident about Seychelles and the tourism potential. We feel that this is the right time to enter the market, which in our opinion is poised for a big growth with international airlines entering the market very soon."

Mr Vashisht said that the company would initially concentrate on the construction of the Platte hotel, which is scheduled to be completed by early 2006 and to create around 80 local employment opportunities, before turning its attention to the Alphonse and Desroches upgrades.

MK Resorts is an entirely foreign owned company, the principal share holder of which is Indian businessman Mr Xavier Mani.

The MK Resorts GM was joined in the press conference by the Minister for Land Use and Habitat, Joel Morgan and Island Development Company executive chairman, Glenny Savy.

Minister Morgan sought to quell recent speculation about underhand business practice and island sales, insisting that all dealings are strictly above board and that no 100 percent lease of an island would be considered.

"It is not the case that this is the subject of cosy or underhand deals. Each development proposal made by investors is looked upon on the basis of its merits, and the agreements that are signed with them are based upon the cash projections for their projects, the capital investment that they are proposing to make and the sustainability of their investment."

Predating the Merp (macro-economic reform programme) tourism concessions, the MK Resort Platte lease was signed under the Investment Promotion Act (IPA) on January 4, 2003.

Minister Morgan went on to suggest that the leasing of islands for tourism development should be viewed as an indication of confidence in the economy and the tourism potential of the islands.

IDC head Glenny Savy said that under the Platte lease agreement MK Resorts would pay $8,000 per month for their portion of the island, terms which will net over $5.75 million over the course of the 60-year lease.

Mr Savy also said that under the terms of the lease the developers are given a set time period in which the hotel construction must take place, otherwise the land will revert back to IDC, in order to prevent land speculation.

At present IDC has less than ten members of staff working on Platte, but this figure is set to rise to around 50 during the construction of the hotel, falling back down to 10-15 once the hotel is up and running.

The staff changes will be made to enable IDC to meet lease obligations regarding the supply of electricity, water and sewerage facilities to the new resort.