The Seychelles have seen a pickup in tourism after a larger part of their population was vaccinated against the Seychelles Coronavirus than any other nation.

The number of visitors to the island archipelago in the Indian Ocean fell by 92% to 6,785 in the first quarter when the international travel area almost came to a standstill. The Seychelles have since reopened their borders and several airlines have resumed their flights. The country recently saw an increase Covid-19 Infections, although it subsided this week.

The tourism figures “are not numbers before Covid, but it is a significant improvement,” said Naadir Hassan, Minister of Finance, Economic Planning and Trade, in an interview on Thursday. While the government banned the mixing of households and sporting events in response to the increased number of viruses, the minister said the economy could not handle another border closure regardless of whether there was another surge.

“If we close our main sector, tourism, it will be affected,” said Hassan. “That means we will not have any income that will immediately affect our exchange rate and the government will not be able to sustain its economy.”

Falling tourism revenues have put a heavy strain on the government’s finances. This requires more disciplined spending and a significant reduction in support for Air Seychelles Ltd., Seychelles Public Transport Corporation and other government agencies, the minister said.

The budget deficit is expected to fall from 18% in 2020 to 15.3% of gross domestic product this year, according to the budget published in February. The Seychelles are currently in talks with the International Monetary Fund about the provision of budget support.

The nation’s debt is roughly 100% of its gross domestic product. At the end of last year, Rs.1.1 billion ($ 1.1 billion) was owed, just over half of that to outside creditors.

The government plans to reorganize its debt and replace some domestic loans with more external funding. A move she hopes will lower her interest bill, Hassan said.

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