The Government of Seychelles has announced significant amendments to its Environment Protection (Tourism Environmental Sustainability Levy) Regulations, which are scheduled to become effective on 1 January 2026. These revisions aim to redefine cost structures for accommodation providers and reinforce the archipelago’s dedication to sustainable tourism practices, with a specific emphasis on supporting the resilience of smaller businesses within the sector.

A primary change in the updated regulations is the complete removal of the levy for small accommodation establishments. This exemption is designed to alleviate financial pressures, offer greater operational flexibility, and enable small businesses, such as locally owned guesthouses and boutique lodgings, to remain competitive. This move is expected to significantly benefit a large segment of these smaller operators, which are vital for diversifying Seychelles’ accommodation offerings and fostering community-based tourism experiences.

Conversely, for medium and large accommodation providers, the Tourism Environmental Sustainability Levy will continue to be applied. It will be collected directly by tourism accommodation providers on a per person, per night basis. From the start of 2026, the new tiered levy rates will be SCR 75 per person per night for medium establishments (defined as having 25 to 50 rooms) and SCR 100 per person per night for large establishments (those with more than 50 rooms). Guests staying on yachts and at island resorts will also be subject to a SCR 100 per person per night levy. This structured approach ensures that larger, more resource-intensive operations contribute proportionally to the nation's environmental sustainability initiatives.

The revised regulations also maintain all existing exemptions, underscoring Seychelles’ commitment to inclusivity. The levy will continue to be inapplicable to citizens and residents of Seychelles, airline and yacht crew members, and children aged 12 years and under. These exemptions are intended to protect local residents and essential travel personnel from additional costs, while simultaneously enhancing the destination's appeal for families traveling with young children.

For tourism professionals across Africa, these policy changes in Seychelles offer valuable insights into how governmental policy can effectively balance environmental stewardship with economic viability. By exempting small-scale operators, the government signals strong support for sustainable, community-driven tourism—a model many African destinations are keen to adopt to diversify offerings and distribute tourism’s economic benefits more broadly. The continued application of the levy to major industry players, including medium, large providers, yachts, and island resorts, emphasizes their critical role in safeguarding natural resources. These contributions are crucial for funding environmental protection and sustainability projects, ensuring that Seychelles' pristine natural beauty, including its beaches, coral reefs, and unique biodiversity, is preserved for future generations.

These regulatory updates are anticipated to further solidify Seychelles’ reputation as a global leader in sustainable island tourism. The government’s proactive and carefully targeted policy design is expected to yield both environmental and economic dividends. For those managing or marketing African island destinations, Seychelles’ latest strategy provides a blueprint for evolving fee structures to support long-term sustainability without impeding local entrepreneurial spirit. As the global tourism sector continues to adapt, such nuanced and scalable approaches to sustainability levies, as demonstrated by the Seychelles model, are likely to become more prevalent across sub-Saharan Africa, particularly where natural resource protection is integral to both tourism and national identity. This approach fosters a more inclusive and resilient tourism industry, where growth and sustainability progress hand in hand.