Designed to Perform
MAURITIUS (-/Baa1/- *)
Country Risk Assessment - Mauritius
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KEY DEVELOPMENTS
Bank of Mauritius (BOM) is expected to keep its key
policy rate of 3.50% throughout 2019, given the
subdued inflation currently sitting at 0.5% y/y in
Jan 2019
Over the long term, Mauritius' development as a
transshipment and finance hub on China's
Maritime Silk Road - to be secured by a free trade
agreement by early 2019 - will help boost
economic growth.
Political stability undermined by persistent
revelations of corruption, illegal activity or
misconduct from leading political figures which
could prompt early elections in 2019.
As at 31 Dec, tourist arrivals have grown by 4.3 y/y
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KEY STRENGTHS
Mauritius has had historically a stable political environment
Judicial system is regarded as independent
Diversified economy; manufacturing and tourism expected to benefit from
growth in Asia
Good record of attracting investment and business friendly environment
Prudent external debt-management and strong payments record.
Ample liquidity available in the domestic capital market
Double Taxation Avoidance Agreements (DTAAs) and Investment
Promotion and Protection Agreements (IPPAs) with many African countries
Mauritius is moving towards being a transshipment and financial hub for
Sino-African trade, which represents opportunities for Mauritius' long term
growth trajectory
The country also aims to become a leading tax free shopping destination,
auguring for an expansion in the tourism and retail sectors.
KEY RISKS
The country is also exposed to external shocks through
the economy's openness, high dependence on food and
fuel import costs, and excessive reliance on volatile
export revenues from tourism, sugar and textiles
UK and EU growth impacts on Mauritian economy.
Should growth lower in those regions, Mauritius is also
affected.
Increase in external debt and public contingent liabilities
Mauritius is particularly prone to imported inflation from
high oil and food prices. Both carry a substantial
weighting in the CPI basket.
"Changes to Mauritius' tax treaty with India and its
participation in the 'Convention on Mutual Administrative
Assistance in Tax Matters' will weigh on the country's
financial sector."
Sector Focus: Hospitality
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Tourism is the third pillar of the
economy and has shown resilience
and steady growth in the last few
years
From 656,450 tourist arrivals in
2000, the country now welcomes c.
1.4m tourists each year
Traditional markets such as the EU
(+5.6%) has seen sustained growth,
while targeted growth markets
including China and India are
seeing stabilized arrivals
Sector focus: Education
Growing number of expats
on the island and rising
middle income have
contributed to increased
demand for high end
school, with international
standards
The supply in this particular
niche has historically been
limited given free schooling
offered by the State but is
now catching up.
Tourism Statistics
Tourist arrivals
Growth of "Accomodation and Food Sevices Activities" sector (%)
Tourist arrivals increase over previous year (%)
Gross earnings from Tourism (Rs. Mn)
Gross earnings per tourist (Rs.)
I 13
Source: statsmauritius.govmu.org
2014
1,038,334
2015
Tourism Statistics
2016
2017
1,151,252
1,275,227 1,341,860
2018
1,399,287
6
5
9
11
9
11
5
5
4
4
44,304
50,191
55,867
60,262
64,000
42,668
43.597
43,809
44,909
45,878
Mauritius
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