Botswana, with 12.5 per cent growth, and Mauritius, with four per cent growth, were among the top-performing economies in 2021. Mauritius’ tourism and hospitality industry is the main driver of the economy, which accounts for a quarter of the island nation’s GDP; this was severely affected by the COVID-19 pandemic. Around 33,600 South African visitors arrived on its shores between January and May this year, following almost two years of lockdown and border closures. Te South African nation had put a ban on public gatherings due to the pandemic, but now the country has ended almost all restrictions.
Te government is set to make major changes to the casino industry in Mauritius, which has been in a state of decline for several years. Te Casino de Maurice was opened in 1970 in Curepipe as a means to bolster tourism. After that a number of casinos in hotels opened, so that by 1996 there were seven casinos in the country providing almost 1,000 people with jobs.
In 1989, the government, through the State Investment Corporation (SIC), took over 51 per cent of the shares in the casino companies and managed the sector by its newly created subsidiary, the State Investment Corporation Management Services (SICMS) Co. Ltd. - the investment arm of the government of Mauritius. Today, the SIC owns 100 per cent shares in Grand Baie Casino Ltd and Casino de Maurice Ltd, and also holds 51 per cent in the Caudan Waterfront Casino Ltd and 62.4 per cent in the Grand Casino du Domaine Ltd. Te SIC also owns all the shares of Beach Casinos Ltd and Sun Casinos Ltd, which are closed.
Apart from paying hefty amounts for licences and permits, casinos have also been taxed heavily and the SIC has poured significant sums into the casinos to keep them afloat. In 2011, the SIC announced that it intended to sell more than half of its shares in the Casinos of Mauritius as they were running at a loss, but reportedly a South African buyer backed out of the deal, due to the high tax rate, at the last minute.
Later in 2017, it was also reported that a number of private investors had put in offers to buy the casinos so that they could be privatised. Tis too ultimately came to nothing. Te sale has not been helped by the Casino Workers Union, which has opposed privatisation every step of the way as its members believe strongly that it will lead to lay-offs.
Undeterred, and due to declining revenue, in November 2021 the SIC announced that it would sell part of or all its shares it held in casinos in 2022. In February, the government announced that it would begin work choosing investors. Te privatisation process will consist of drawing up the sales offer for the four casinos and studying the proposals of potential buyers. Te SIC invited all interested parties to submit their bids before July 29, for all six casinos in Mauritius - four of which are operational. KPMG is handling the transaction.
P36 WIRE / PULSE / INSIGHT / REPORTS
MAURITIUS
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