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Paradise on Earth for Tourists and Investors
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"You gather the idea that Mauritius was made first, and then heaven, and that heaven was copied after Mauritius." That's Mark Twain in Following the Equator, describing the island country in Indian Ocean.

Heaven on earth may be a misnomer, but Mauritian Prime Minister Navinchandra Ramgoolam believes his country is a paradise on earth for investors. "Though a small island, Mauritius has a diversified economy. We now have a 5 percent annual economic growth and favorable policies for investors," says the prime minister.

The island with its turquoise sea, green mountains, silver beaches and golden sun is an ideal tourist destination. In fact, tourism and services are two of the main driving forces of the 45 km by 65 km country. About 12,000 people are employed directly by the tourism sector, with many more working for it indirectly.

In 1970, Mauritius got only 28,000 foreign tourists. Today that figure has gone up to 600,000, or half of the country's population. "We are getting more tourists from China now," says the prime minister, hoping the proposed direct flights between China and Mauritius will increase their number to a large extent.

China recognized Mauritius as a tourist destination for its people in 2003, and about 5,000 Chinese visited the country last year. "We have signed a bilateral air agreement with China, so we probably will have direct flights to and from Beijing by next year or latest by 2009."

But that will fulfill only part of Ramgoolam's expectations, for he wants more Chinese enterprises to invest on the island and the ones that are already there to increase their volume of capital. To realize that goal, he has visited Beijing and Shanghai and the capitals of Zhejiang and Anhui -- Hangzhou and Hefei -- during his six-day official trip to China.

He was invited by Premier Wen Jiabao, and has already met with him and President Hu Jintao, and will fly back home on Saturday. He was in Beijing earlier, in November 2005, to attend the Summit of the Forum on China-Africa Cooperation.

Shortly after the Beijing summit, China decided Mauritius would be one of the bases for its three to five trade and economic zones (TEZs) in Africa. The move was part its "eight-point" policy to help African development.

"I'm very happy China has chosen Mauritius," the 60-year-old prime minister said. "This project is precisely the kind of cluster we are promoting in the country and, in spite of the many difficulties, we are committed to providing a conducive environment to investors."

The project will "definitely benefit both sides", says Ramgoolam. "On our side, we get some advanced technologies, we get jobs for our people and we get a turnover of foreign exchange. All this is important for us." The US$500-million TEZ in Mauritius is estimated to generate about 7,500 jobs and export earnings of more than US$200 million a year.

"On the Chinese side, you will get a platform to enter Africa. We have ports in southern Africa, we have ports in the Indian ocean. This ensures it of a market of nearly 500 million people."

Emerging as a middle-income economy, Mauritius is now poised to become the business hub of the Indian Ocean and the gateway to eastern and southern Africa.

On the eve of independence in 1968, Mauritius was essentially a mono-crop economy producing mainly sugar, which accounted for 99 percent of its export earnings. But economic restructuring saw the island nation develop from a low-income, agriculture-based society to a middle-income diversified economy with growing industrial - especially textiles - financial and tourism sectors.

The success of the Mauritian economy is the result of its political stability, good governance, clear policy orientation, consistency in management and a strong belief in free enterprise. Today, many people call it a "Mauritius Miracle" and cite is as an example for other developing countries to follow.

Although it's a multi-ethnic country, it has never been plagued by conflicts. Peace and unity are the key words on the island, and diligence is the name of the game for its people.

Ramgoolam sees the China-Africa strategic partnership as a very positive development, for it means more Chinese entrepreneurs investing in Africa, especially in his country. Though China accounts for 14 percent of the total foreign direct investment on the island, it's not the largest investor in Mauritius.

"We want sectors such as electronics, agriculture, IT and agro-business to be invested in." To attract more foreign investment, the Mauritius government reduced corporate tax to 15 percent in its 2007-2008 budget.

Ramgoolam began his second five-year term as prime minister on July 5, 2005, and has focused his development strategy on foreign investment. He is leading his people to transform the country into a competitive global business center.

Describing Beijing's policy toward Africa as "very good", he says China is undoubtedly an important player on the world stage today, and as an economic giant it is in a position to help Africa. China-Africa cooperation is "for development, both for the African continent and China".

"The more trade you have, the more exchanges there will be. It's better for both." This is a situation from which everyone will emerge with hands full.

It's important that African countries and China build on their past achievements and develop new forms of cooperation, he says, urging the continent to stand united at global forums and "reorient" their policies to "adapt to market economy".

Bilateral ties with China have improved with each passing year since the establishment of diplomatic relations between the two countries in 1972, he says. The past years have seen regular exchanges of views and close coordination on bilateral and major international and regional issues. "China today is one of the most important partners (of) Mauritius (and has helped it in) in its drive for higher economic development."

China may be very far from Mauritius geographically, he says, but culturally it's very close. It's not surprising to hear people speak in Cantonese, Hakka or Putonghua on the streets of Mauritius, even though English is the country's official language, and French is spoken by almost everyone. Chinese cuisine is part of the island's staples, as are Indian and continental dishes.

Spring Festival, or the Chinese lunar new year, is celebrated with as much joy and gaiety on the island as it is in China. The customs followed by the Chinese in Mauritius is the same as back home: houses are cleaned thoroughly before the Spring Festival, no knives or scissors are used on the actual day of the festival, the color red is omnipresent as the symbol of good luck and happiness, food is offered to the deities to ensure the next year turns out to be better and firecrackers are set off to drive away the evil spirits.

"We celebrate the festival in a big way. Every Chinese-Mauritian makes cakes and sends them to friends and neighbors," Ramgoolam says. It has become more of a community festival today. It is celebrated on a national level with cultural shows and other entertainment programs.

So Mauritius is not only about nature tourism, it's also about diversified culture and cuisine, and good business.

(China Daily July 13, 2007)

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