At its regular meeting today, Cabinet considered a report and recommendations on sustainable tourism carrying capacity for Mahé and the Inner Islands.  The report recommended a moratorium on new large hotel establishments, as well as the need to consolidate on the quality and standards of existing establishments. Some presently derelict tourism establishments could be restored.  There should also be limits on smaller scale developments.  The expansion and enhancement of electricity, water and sewerage facilities should be a prime consideration for further development.  There should be a proper audit on tourism receipts from all establishments to ensure that the country benefited to the maximum from this pillar of the economy.

Cabinet was also advised that there should be a better control on the conversion of residential houses for tourism development.  Allocations of land bank intended for residential housing should not be used for commercial tourism development.

Cabinet advised that there be greater decentralisation of services from Mahé so that more disbursements of loans and funds from public sector agencies, presently made on Mahé, could also be made on Praslin and La Digue.

Cabinet approved an amendment to the legislation for the payment of a 13th month salary, which would allow Government to regulate the payment of this salary in the case of small businesses.