Although Preliminary Gross Direct Investment Flows for the first quarter of 2021 shows the extent to which the Mauritian economy has suffered from the pandemic, it also gives a hint at the resilience of the local tourism sector.
The Bank of Mauritius’ Preliminary Gross Direct Investment Flows indicate a slowdown of Foreign Direct Investment. Mauritius attracted only Rs. 2 billion in the first quarter of 2021 as compared to Rs. 3 billion last year and Rs. 4.7 billion during the same period in 2019.
Real estate activities alone attracted Rs. 1.5 billion, accounting for 75% of total FDI flows.
The second largest sector to have attracted the most foreign investment is the ailing accommodation and food service activities sector that includes hotels and restaurants. It attracted Rs. 234 million.
This is a good sign for the local tourism sector as it shows the confidence that the global business community has in the resilience and sustainability of the local tourism sector.
Local hotels and restaurants are struggling to meet current expenditures since the first wave of the pandemic hit Mauritian shores in March 2020. According to official data, the number of tourist arrivals decreased from 304,842 tourists in the first quarter of 2021 to 2772 in the equivalent period in 2021.
