Mauritius: Tourists to hit 1 million mark by 2018 in Mauritius

Smoothening in occupancy rates is expected over the estimate period of 2014-2018, although occupancy rates have declined over the completed 2 years, in the backdrop of excessive room supply.

A statement recently released by international market research firm ‘Research and Markets’ shows only marginal increase in domestic tourist volumes in Mauritius, which are expected to rise at a Compound Annual Increase Rate (CAGR) of 0.31% over the five-year estimate period, to reach 1 million by 2018.

Titled ‘Travel and Tourism in Mauritius to 2018’, the statement observes that the tourism industry has developed into a major pillar of economic development in Mauritius, which is however, increasingly feeling the heat of intense competition in the international tourism industry.

Next a significant breakdown in 2009 due to the Eurozone crisis, given that the European market was the key source market of Mauritius, massive promotional campaigns were undertaken by the Mauritian Tourism Promotion Authority (MTPA), in order to make Mauritius shift from its traditional market to emerging ones such as China and India.

Promoting Mauritius as a prime holiday island destination was really fruitful, as an increase in the number of visitors were registered, with 993,106 visitors coming to Mauritius in 2013 against 965,441 in 2012. However, tourism earnings for the year 2013 showed a decline at Rs 40,557 million, down by 8.6 % from Rs 44,378 million in 2012.

Taking a closer look at the emerging markets, the statement observes that tourism arrivals from India increased by 3.7% from 55,197 to 57,255; Chinese visitors doubled from 20,885 to 41,913; while Russian footfalls decreased by 23.3% from 19,429 to 14,905.

Furthermore, according to the Tourism Office of Mauritius, South African tourists surpassed UK visitors in 2012, taking third place in total tourist volumes to Mauritius.

In total, 94,208 South Africans visited Mauritius in 2013, compared with a total of 89,058 tourists in 2012.

Moreover, in order to attract additional South African tourists, Mauritius is implementing additional hardy activities such as parachuting, mountain excursions, quad biking and sea diving, as South Africans have shown interest in adventure-based tourism.

Worryingly, room occupancy rates in Mauritius followed an uneven trend during the review period.

Impacted by the Eurozone sovereign deficit crisis, which led to a decline in request from the European travelers, the occupancy rate declined from 68.0% in 2008 to 61.0% in 2009.

But, a recovery was seen in the following years, with occupancy rate increasing to 65.0% in 2011.

However, driven by an excessive increase in the supply of hotel rooms (at a rate of 5.0%) in 2012, the occupancy rate declined again in the same year, to reach 62.0%. A smoothening in occupancy rates is expected over the estimate period.

Finally, the statement noted that car rental companies in Mauritius operate in a highly competitive market, where average daily rates lie between Rs 800.0 (USD 28.1) to Rs 2,500 (USD 87.9), depending on the number of rental days and brand of car. Local and small car rental companies offer cars for as little as Rs 500 (USD 17.6) as the aim is to survive and perhaps, even succeed, in a highly competitive environment.

Thus, with all these changes in the coming next the government must take the initiative to develop new infrastructure, implement additional tourism-related projects and adopt various methods to promote domestic tourism in order to increase domestic tourist volumes.