The economy should be reinvigorated by the tourist industry this year, according to the Mauritius Commercial Bank (MCB). In the last edition of the MCB Focus, the economists of the bank wrote: “The tourist industry should position itself as a key sector in the economy taking the prevalence of the unexpected external shocks into consideration.” The tourist industry is expected to generate a 9% growth rate this year with 860,000 arrivals.

Even investment is linked to the tourist sector: the 10.8% investment rate compared to 2005 is at present improving thanks to the hotel and Integrated Resort Scheme(IRS) projects.

The industry will, however, be supported by other ones: financial services and building are expected to be among the most flourishing sectors. The building sector will be supported by the several IRS planned and the construction of new hotels.

As for more “traditional” sectors like textiles and sugar, the situation appears more precarious. Mauritian textiles will be faced with competition from China and it has to prepare for that. As for the sugar industry, there are still major uncertainties. Even if the reform has been launched, the results can’t be assessed yet.

Despite these problems, the MCB Focus has reviewed its forecast for the growth rate upwards – from 4.8% to 5.2%. But the MCB economists have made it clear that this depends on the rapid and complete implementation of the reforms contained in the last budget.