Mauritius’ Foreign Direct Investment up 8.7% in first six months of 2014: BOI
During the second half of 2014, the BOI expects subsequent inflows linked to the entry of China’s Shangri-La Hotels on the Mauritian hospitality market with an investment of Rs 800 million in Le Touessrok Hotel. (Image: Le Touessrok Resort)
Mauritius attracted Foreign Direct Investment (FDI) in excess of Rs 5 billion in the first six months of 2014, representing an estimated increase of 8.7% over the corresponding period last year.
Mauritius’ premier investment promotional agency, Board of Investment (BOI), released these estimates in its latest newsletter, noting that in the first semester of 2013, FDI stood at Rs 4.6 billion.
It may be noted that the Bank of Mauritius is expected to publish its official figures on FDI shortly, as indicated in the newsletter.
BOI’s Managing Director, Ken Poonoosamy, also mentioned in the editorial that FDI acts as a catalyst for the island’s industrial diversification, employment creation, export development and growth.
Overseas investments have also helped Mauritius to shift from overt dependence on agriculture to a diversified and dynamic economy with new sectors of focus such as manufacturing, tourism and financial services, and a higher per capita income besides.
Consequently, Mauritius participates actively in the global race for FDI to get an investment boost for the economy, and, through such cross-border merger or acquisition (M&A) transactions, the island economy gains access to finance, global best practices and new markets.
Further to the acquisition of Indian Resort’s Le Mornea and Le Moreva by Spain’s Riu Hotels & Resorts, which is owned by German multinational travel and tourism company TUI AG, a whopping Rs 3.3 billion worth of investments are estimated for the acquisitions and renovation works.
The three hotels are expected to open their doors by February 2015 under the RIU brand.
During the second half of 2014, the BOI expects subsequent investments linked to the entry of Shangri-La Hotels – a premier hotel company based in Hong Kong with over 80 hotels and 34,000 rooms worldwide – on the Mauritian hospitality market.
Shangri-La Hotels of China plans an investment of Rs 800 million in Le Touessrok Hotel and will take over the management duties of the 200-room hotel and proceed with re-launching as the Shangri-La Le Touessrok Hotel and Spa in August 2014.
Besides, the world’s largest charter airlines owned by TUI A.G., Thomson Airways, marked an important event for the semester by running its inaugural flight from Gatwick Airport in London to Mauritius on April 28, 2014.
Overall, tourism arrivals from traditional as well as emerging markets are likely to increase with investments by flagship brands from Europe and Asia.
Already, the island paradise has witnessed an increase in Chinese tourists spurred by the launch of the China Southern Airline flight to the island at the end of June 2014.
According to the BOI, such initiatives will help Mauritius to achieve the target of one million visitors this year.