The Tourism and Leisure Development Incentives in Mauritius are tailored to foster the growth of tourism-related and leisure development projects, particularly focusing on the enhancement and expansion of hotels and hotel management.

Hotel Management Scheme Overview

The Hotel Management Scheme underpins Mauritius’ strategy to promote tourism and leisure by supporting projects aimed at developing and managing hotels across the island. This initiative is pivotal in enhancing the hospitality sector’s infrastructure and services to meet international standards and attract global tourists.

Key Incentives Offered

To incentivize investment and ensure sustainable growth in tourism and leisure sectors, the scheme offers the following incentives:

  1. Reduced Corporate Tax: Participants in the Hotel Management Scheme benefit from a reduced corporate tax rate of 15%. This competitive tax rate aims to lower operational costs for hotel developers and operators, facilitating reinvestment into infrastructure improvements, service enhancements, and staff training.
  2. Tax-Free Dividends for 10 Years: Investors and shareholders involved in qualified hotel management projects enjoy tax-free dividends for a period of 10 years. This encourages long-term investment and ensures profitability, fostering investor confidence and stability in the tourism sector.
  3. Free Repatriation of Profits, Dividends, and Capital: Subject to receiving “A” status from the Bank of Mauritius, participants are granted the freedom to repatriate profits, dividends, and capital without restrictions. This provision enhances financial flexibility and mitigates risks associated with international investments, thereby attracting foreign capital and expertise.
  4. Term Loans and Overdrafts at Preferential Rates: Qualified projects under the scheme have access to term loans and overdraft facilities at preferential interest rates. This financial support facilitates project financing, capital expenditure, and operational liquidity, ensuring smooth implementation and sustainable growth of tourism-related ventures.


In conclusion, Mauritius’ Tourism and Leisure Development Incentives, particularly the Hotel Management Scheme, play a crucial role in stimulating economic growth through tourism and hospitality sectors. By offering competitive tax benefits, tax-free dividends, repatriation privileges, and access to affordable financing, the incentives encourage investment in hotel infrastructure, management services, and leisure developments. This strategic approach not only enhances Mauritius’ attractiveness as a tourism destination but also supports job creation, infrastructure development, and overall economic diversification.