Traditionally the economy of Seychelles was based on plantations with cinnamon, vanilla, and copra as the chief exports. In the 1960s, about 33% of the working population worked at plantations, and 20% worked in the public or government sector. In 1971, with the opening of the international airport, tourism became the dominant industry. The tourism sector paid better, and the plantation economy could only expand so far. The plantation sector of the economy declined in prominence, and tourism and fishing became the primary industries of Seychelles.
Since Seychelles' independence in 1976, per capita output in this Indian Ocean archipelago has expanded to roughly seven times the old near-subsistence level. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, followed by tuna fishing. In recent years the government has encouraged foreign investment in order to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, small-scale manufacturing and most recently the offshore sector. The vulnerability of the tourist sector was illustrated by the sharp drop in 1991-92 due largely to the Gulf War. Although the industry has rebounded, the government recognizes the continuing need for upgrading the sector in the face of stiff international competition. Other issues facing the government are the curbing of the budget deficit and further privatization of public enterprises.
Read more about Economy Of Seychelles: The Traditional Plantation Economy, Tourism and Fishing, Industry, Vulnerability, Growth, Financial Services, Offshore Oil and Gas, Statistics
Famous quotes containing the words economy of and/or economy:
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)