Seychelles Tourism Levy Abolished for Small Accommodation Operators

VICTORIA, Seychelles — The abolished Seychelles tourism levy has brought welcome relief to small tourism operators across the islands, with small hoteliers and guesthouse owners warmly welcoming the government’s decision to remove the Tourism Environmental Sustainability Levy of R25 per person per night previously applied to visitors staying in small accommodation establishments. The measure, first announced by President Patrick Herminie during his inaugural address to the National Assembly in November last year, was formally enacted through the Environment Protection (Tourism Environmental Sustainability Levy) (Amendment) Regulations, 2025, which came into force on January 1, 2026.

The significance of this policy change extends beyond mere financial relief to represent recognition of the vital role small operators play in Seychelles’ tourism ecosystem. Small accommodation establishments, defined as those with one to 17 rooms, form a significant part of what Seychelles offers tourists, particularly for visitors seeking locally-owned, lower-impact accommodation that provides authentic cultural experiences. The Ministry of Finance, Economic Planning, Trade and Investment confirmed the levy removal in a press release issued on Tuesday, bringing official closure to months of industry advocacy.

Manager of Songbird Villa and owner of HeySey.com, Matthew Pillay, described the move as both positive and pragmatic. While the fee itself was modest, he noted its administration placed a disproportionate burden on smaller operators, many of whom lacked the systems and staffing of larger resorts. From a visitor perspective, he added, the levy was often poorly understood and inconsistently communicated, creating confusion at check-in and unnecessary friction. If environmental protection is the objective, funding mechanisms should be structured in a way that is clear, centralised, and easy to administer, rather than fragmented at the smallest operational level of the industry.

Vice-chairman of the Seychelles Small Hotels Establishment Association (SSHEA) and owner of Mountain Apartment Self Catering, Louisiaane Jacques, hailed the government’s decision as a milestone and hard-won victory for the association. She stated that the group was relentless in its advocacy because they knew the previous policy created an unfair weight on the very people who represent the heart of Seychellois tourism. For Ms Jacques, the change represents three key wins: financial fairness, as small establishments operate on tighter margins and removing the levy makes them more price-competitive; reduced red tape, as many operators are one-person businesses; and recognition that the sector can influence policy when united.

Owner of Dar and Douce Self Catering, Peter Sinon, echoed the sentiment, describing the decision as very good. He noted that multiple paperwork was required to fill out and it was a big inconvenience, with responsibility falling on operators to collect, fill in forms, and handle different documents. He said it was a hassle that created difficulties for clients requiring receipts, adding that the process consumed time and caused irritation for both operators and guests. SSHEA believes sustainability should not come at the cost of local businesses and will continue ensuring the voice of the small hotelier is heard at the highest levels.

Despite the abolition, any levy collected during December 2025 must still be remitted to the Seychelles Revenue Commission by January 14.

📷 Image source: Seychelles Tourism Authority — tourism.gov.sc

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