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# [SEYCHELLES] Central Bank Holds Rate at 1.75% as Tourism Slides 14%
- URL: https://businessoi.media/en/seychelles-banque-centrale-taux-directeur-maintenu-a-1-75-face-a-un-tourisme-en-chute-de-14-en/
- Published: 2026-07-19T02:55:58.000Z
- Updated: 2026-07-19T02:55:58.000Z
- Description: The Central Bank of Seychelles holds its key rate at 1.75% for Q3 2026 as tourism falls 14%: only 154,232 visitors and $455M in revenues over five months. The Seychellois rupee depreciates under pressure from Middle East geopolitical tensions.
- Author: Emmanuel TAOCHY
- Tags: Seychelles, tourisme, Économie, Revue matinale, #en

**The Central Bank of Seychelles held its benchmark rate at 1.75% at its monetary policy meeting of 29 June 2026, for the third quarter. A signal of stability in a context of sharply declining tourism and imported inflationary pressures.**

## Tourism Hit Hard by Global Tensions

The statistics for the first half of 2026 are unambiguous: tourist arrivals in Seychelles fell by **14%** by mid-June compared to the previous year. Over the first five months (January–May 2026), tourism revenues declined by **2.1% to $455 million**, with only **154,232 visitors** recorded. The main cause: Middle East geopolitical tensions, which disrupted major transit hub airports and significantly reduced passenger flows since March 2026\. The archipelago, whose foreign exchange earnings depend on tourism for over 60%, is directly feeling the impact, with the Seychellois rupee under pressure.

## Imported Inflation on the Watch

Alongside currency pressure, soaring global maritime freight and energy costs are feeding rising domestic inflation. The central bank maintained its deposit facility rate at **0.25%** and lending rate at **3.25%**. First Vice-Governor Brian Commettant stated: 'Economic activities continue recovering, but uncertainty remains high, particularly regarding international developments impacting Seychelles directly.'

## Diversification: The Imperative Priority

Despite this difficult picture, growth projections for 2026 remain broadly positive, supported by fisheries, offshore financial services and a gradual recovery in air travel. The archipelago is simultaneously advancing its economic diversification strategy in the blue economy and local agriculture, to reduce its structural vulnerability to the global tourism cycle.

## Why It Matters

Holding the key rate is a bet on stability in the face of uncertainty. But the fundamental question remains open: can an archipelago of 100,000 people continue to depend on tourism for 60% of its revenues in a world prone to geopolitical shocks? The answer will be built through diversification — and the urgency of that transformation grows with every crisis.