Since Seychelles' independence in 1976, per capita output in this Indian Ocean archipelago has expanded to roughly seven times the old near-subsistence level.
Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, followed by tuna fishing.
At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, small-scale manufacturing and most recently the offshore sector.
The vulnerability of the tourist sector was illustrated by the sharp drop in 1991-92 due largely to the Gulf War.
Although the industry has rebounded, the government recognizes the continuing need for upgrading the sector in the face of stiff international competition.