Airbnb vs. Long-Term Rental: Profitability in the Seychelles

Published on April 22, 2026 and written by Cyril Jarnias

Seychelles Rental Profitability: Airbnb vs Long-Term Rentals

Within the flourishing Seychelles real estate market, more and more investors are questioning the potential profitability of short-term rentals through Airbnb compared to long-term rentals.

This article delves into the heart of this issue by analyzing the dynamics of both models across different cities in the archipelago. While tourism continues to dominate the local economy, the rise of platforms like Airbnb represents a tempting opportunity, but is it truly the most lucrative option?

By exploring key performance indicators and city-specific data, we aim to determine whether the growing popularity of vacation rentals actually translates to better profitability compared to traditional rentals, thereby offering a valuable guide for property owners and potential investors.

Comparison of Airbnb and Long-Term Rental Yields in the Seychelles

Rental Type	Average Revenue (per night or per month)	Average Occupancy	Location (example)
Airbnb (short-term)	$246 USD per night	39%	Baie Saint Anne, Praslin
Long-term rental	$800 to $1,500 USD per month (studio/2-bedroom)	~100%	Victoria, Mahé; Anse Royale

Financial Advantages

• Airbnb:
  • Significantly higher income potential during peak season: a property in Baie Saint Anne with an average occupancy rate of 39% generates approximately $2,900 USD/month (246 × 12 nights), which is two to three times more than an equivalent long-term rental.
  • Pricing flexibility based on demand and the possibility of offering additional services to increase the average booking value.
  • Concrete examples: some hosts manage multiple properties and reach up to nearly $300,000 USD/year on Praslin, demonstrating the potential profitability of the tourist market.
• Long-term rental:
  • Stable and predictable income year-round without dependence on tourism or seasonality.
  • Less daily administrative effort (single tenant management).
  • Lower vacancy rates in urban areas like Victoria.

Financial Disadvantages

• Airbnb:
  • Highly variable income depending on the season. During the off-season or unforeseen events, the occupancy rate can drop drastically.
  • Requires active management: guest reception, frequent cleaning, responding to customers.
• Long-term rental:
  • Capped yield even during strong tourist periods; little or no ability to adjust rents quickly.

Associated Costs

• Airbnb:
  • Platform service fees: between 3% and sometimes more for certain high-end bookings or ancillary services added via new features launched in summer 2025.
  • Increased maintenance: professional cleaning after each stay (~$20–40 USD/service), regular upkeep due to accelerated wear and tear on the property.
  • Applicable local tourist taxes on each short-term booking.
• Long-term rental:
  • Limited initial fees: inventory/contract + possible one-time agency fees (~1 month’s rent).
  • Regular but less frequent maintenance; repairs shared with the tenant according to the standard local contract.

Geographical Impact on Yield

– Baie Saint Anne (Praslin): High ADR (>$240 USD/night), strong potential with premium/touristic positioning; top hosts easily exceed average local annual revenues thanks to a diversified offering tailored to the international visitor profile.

– Victoria/Mahé: Best security/yield balance for long-term rentals due to strong local demand linked to the country’s main economic activities. Monthly rents there are among the highest but remain lower than the maximum possible yield via Airbnb during the beach high season.

Seasonality vs Stability

Short-term rentals like Airbnb are heavily impacted by tourist seasonality, which directly affects the occupancy rate – a notable peak during July–August/December–January followed by a drop off-season. Conversely, a long-term rental generally guarantees a constant cash flow independent of the local tourist calendar.

Practical Summary

The choice between short-term rentals like Airbnb and long-term primarily depends on the investor’s financial goals and the time they wish to dedicate to their property.

To maximize profits in the Seychelles:

• Airbnb proves generally more profitable in major tourist areas like Praslin, especially if you can offer differentiating ancillary services during summer/winter tourist peaks,
• Traditional rental remains preferred in active urban centers, where it ensures regularity without major daily effort or increased exposure to economic uncertainties linked to global tourism.

Analysis of Profitability Data by City

City	Average Airbnb Rental Revenue (€/month)	Airbnb Occupancy Rate (%)	Airbnb Operational Costs (% of revenue)	Average Long-Term Rental Revenue (€/month)	Long-Term Occupancy Rate (%)	Long-Term Operational Costs (% of revenue)
Victoria	2,000	74	28	1,100	97	17
Anse Boileau	1,700	66	25	950	95	15
Bel Ombre	2,100	68	27	1,250	94	16

Analysis of Profitability Indicators

• The average rental revenue is systematically higher via Airbnb, particularly in Bel Ombre and Victoria, where tourist appeal drives prices upward.
• Occupancy rates are generally higher for long-term rentals, reducing vacancy and ensuring better income stability.
• Operational costs for Airbnb include frequent cleaning, booking management, and replenishing supplies; they are therefore significantly higher than for traditional rentals.
• For classic rentals, recurring fees are mostly limited to routine maintenance and less intensive management.

Seasonal Trends Influencing Profitability

• The high tourist season (November-April), particularly during European holidays or local events like the Victoria Carnival, leads to an increase in Airbnb occupancy rates (+10 to +20 points).
• Off-season (May-October), the rate sometimes falls below the average thresholds indicated above – a drop compensated for by slight dynamic price adjustments possible on Airbnb, whereas traditional rental remains stable but without a premium.

Geographical Variations

Victoria: Capital with strong international demand. Clear advantage for short-term offerings if well positioned (proximity to port/airport).

Anse Boileau: Semi-touristic residential area. Moderate profitability but appreciable stability for annual rentals.

Bel Ombre: Upscale beach neighborhood. Maximum potential for short-term rentals thanks to premium tourism.

Detailed Comparison of Fixed & Variable Costs

Comparative List:

• Maintenance Fees:
  • More frequent for short stays: professional cleaning between each guest vs monthly or quarterly maintenance for long-term.
• Local Taxes:
  • Short-term stays subject to specific tourist tax; sometimes partial exemption or annual cap depending on local regulations.
  • Classic rental subject to usual property taxes; absence of additional tax on nightly stays.
• Regulations:
  • Constantly evolving for platforms like Airbnb: mandatory prior declaration in several urban districts like Victoria; possible quotas during tourist peaks.
  • Regulations for traditional rental remain stable but require a written lease compliant with Seychellois law with a legally extended notice period compared to short-term rentals.

Visual Summary – Strengths/Weaknesses by City

City	Airbnb – Major Asset	Long-Term – Major Asset	Favorable Season	Main Constraints
Victoria	Constant tourist demand	Income security	Mid-November to April	Evolving Airbnb regulations
Anse Boileau	Good profitability for family vacations	Attractive price/local anchoring	December-February	Lower international visibility
Bel Ombre	Premium nights sold	Best security/price ratio	December-March	High maintenance / variable taxation

Key Takeaway

Operation via platforms like Airbnb offers superior yield potential in all the key areas analyzed but necessarily comes with increased occupancy volatility, heavier variable fees, and growing regulatory exposure. Annual rental provides stability and administrative simplicity at the cost of a lower yield – particularly marked in highly touristic sectors like Bel Ombre.

Factors Influencing Profitability in Different Seychelles Cities

The rental market in the Seychelles is influenced by various local economic factors, including the cost of living, tourist occupancy rates, and local regulations. The cost of living in the Seychelles is relatively high, which can affect the profitability of real estate investments. Tourist occupancy rates vary by season, with strong demand during international vacation periods.

Tourist Occupancy Rates

Tourist occupancy rates are generally higher during peak seasons, which can influence the performance of seasonal rentals on platforms like Airbnb. For example, in Baie Saint Anne District, Praslin, the occupancy rate is 39%, with an average annual revenue of $29,624 dollars for Airbnb hosts.

Tourist Seasons and Airbnb Performance

Tourist seasons have a significant impact on Airbnb performance compared to long-term rental. During peak seasons, prices and occupancy rates are higher for seasonal rentals, which can make Airbnb more profitable. Conversely, during off-seasons, long-term rental can be more stable and less subject to demand fluctuations.

Infrastructure and Services

Nearby infrastructure and services play a crucial role in rental profitability. Cities with good tourist infrastructure, such as well-connected airports and quality services, attract more tourists and can increase the value of real estate properties.

Real Estate Prices

Real estate prices vary considerably depending on location and available infrastructure. Areas with major tourist attractions and enhanced services tend to have higher prices. This can affect the potential profitability for investors, as properties located in these areas can generate higher revenues but also require higher initial investments.

Tourist and Resident Preferences

The preferences of tourists and long-term residents strongly influence the choice between Airbnb and long-term rental. Tourists often seek authentic and personalized experiences, which favors seasonal rental. Conversely, long-term residents generally prefer the stability and security of long-term rental.

Comparative Table of Preferences

Rental Type	Tourist Preferences	Resident Preferences
Airbnb	Authentic experiences, flexibility, central location	Less suitable due to price and availability variability
Long-Term Rental	Less suitable for short stays, fewer unique experiences	Stability, security, predictable cost

In summary, the rental market in the Seychelles is influenced by various economic factors and customer preferences. Investors must consider these elements to maximize their profitability, whether for Airbnb or long-term rentals.