Cape Verde

Tourism Tattler - - BUSINESS & FINANCE -

Cape Verde’s econ­omy is an ex­em­plary ex­am­ple of a sta­ble po­lit­i­cal en­vi­ron­ment and a work­ing democ­racy. A steady eco­nomic growth path has been fol­lowed by a ris­ing qual­ity of life for its cit­i­zens. This is all de­spite the coun­try not hav­ing an abun­dance of nat­u­ral re­sources, oc­ca­sional drought and a small agri­cul­tural base. Given this suc­cess and the abil­ity of the is­lands to at­tract Euro­pean guests for leisure breaks, we felt it was an in­ter­est­ing mar­ket to in­clude in the HVI.

Tourism is one of the main con­trib­u­tors to the econ­omy of Cape Verde. For­eign di­rect in­vest­ment is ac­tive in the coun­try due to high lev­els of in­vestor con­fi­dence aris­ing from a sta­ble po­lit­i­cal and eco­nomic en­vi­ron­ment and a grow­ing mar­ket. The coun­try at­tracts tourists from Europe, in par­tic­u­lar the United King­dom, Ger­many and Por­tu­gal due to strong na­tional and cul­tural ties.

The ho­tel in­dus­try is a ben­e­fi­ciary of the FDI that the coun­try en­joys. A new Re­sort Group prop­erty is be­ing con­structed on Sal Is­land and will be ready in Novem­ber 2016. There­after they have plans for sev­eral other ho­tels in the main is­lands, all of which will be branded by in­ter­na­tional hote­liers.

The mar­ket is evolv­ing rapidly and as such nei­ther oc­cu­pancy nor ADR can be seen as sta­ble, yet. How­ever, as both the num­ber of vis­i­tors to the is­lands and ho­tel sup­ply con­tinue to in­crease the fu­ture for the ho­tel in­dus­try looks pos­i­tive.

Cape Verde is grow­ing into a ma­ture mar­ket, with a sta­bi­lized strong oc­cu­pancy and prof­itable rate lev­els. The Re­sort Group built a strong busi­ness model to en­hance the tourism growth, while adding more rooms to the mar­ket. Ad­di­tional flights to the is­lands have been con­firmed and this should push the oc­cu­pancy up at a steady pace. Oc­cu­pancy will sur­pass the 75% thresh­old and rates are ex­pected to grow by 5%, push­ing REVPAR and val­ues up by 10.7%.

For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Cape_Verde

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.