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Being the largest and most populated island in the Seychelles Republic (with about 81,000 souls, Mahe contains 90% of the country's total body count), Mahe's public transportation system is set up to serve tourists quite well. Options are plentiful, though costs vary widely. Here are your choices:
Car rental, depending on your choice of vehicle, can be pretty expensive. Jeep rental, in particularly, runs high. The older the model, though, the less you'll have to pay. When renting, many opt to use what's called a Minimoke (or beach buggy). It's a great way to visit the island's many beaches. The roads of Mahe Island are winding and narrow, with some steep drop-offs and no guardrails, so if you're driving, be prepared for these things. Night lighting on the roads is poor, so avoid driving at night. Seatbelts are specifically in the front seat, and don't forget to drive on the left side.
Taxi service is available on Mahe Island, with some companies working directly with hotels, and some privately-run services operated by locals. You may a little less when hiring a local. Mahe Island buses are plentiful, though can tend to be crowded, especially during peak seasons. They make loads of stops, but if you're not in a hurry, they'll keep your wallet from thinning out to fast, compared to a rental car or taxi.
Ferry and inter-island flight services will get you from island to island, if that's one of your goals, and bicycle rental is an option, though, with the island's road conditions (see above), they're best used for transportation in town.