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, HVS 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 was constructed on Sal Island and launched 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 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%.