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Losses jeopardise tourism in Rodrigues
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Losses jeopardise tourism in Rodrigues
The end of Catovair may deal a deadly blow to the tourism industry in Rodrigues. This is the fear of many business operators there who could have to close down if Catovair stopped its activities. As for Catovair, the problem is that it has been operating at a loss since it was launched and only a Reunion-Rodrigues route could bring it profitability. The airline is waiting for a decision from the government.
Rumours have been rife that a big investor proposed to take over the company. Even though Catovair did not want to comment on this possibility, the company has not hidden the fact that it is in difficulties. Despite the good performance of the company ? 80% occupancy rate since April ? Catovair ?continues to accumulate losses?.
Although the company still wants to be the ?second carrier? to Rodrigues, it can?t afford to rely just on this destination. The cost per seat is too high and only a regular service between Mauritius, Reunion and Rodrigues would help reach a balance.
If the state refuses to give Catovair the right to serve Reunion, it could well mean the end of the company? as well as that of Rodrigues tourism according to investors there. The chief-commissioner, Johnson Roussety, acknowledges the contribution of Catovair in making the island more accessible but he does not want to be too pessimistic, ?Air Mauritius is still there?.
However, present and future investors do not agree with him, as air access is a key factor in the development of tourism in Rodrigues. If the pioneer of tourism in Rodrigues, Mauritours, is thinking of selling its hotels ? although nothing has been decided so far ? it may hint at a less than rosy future for the island?
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