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CABO VERDE 2 Contents Index TOURISM DEVELOPMENT BOA VISTA - CABO VERDE 2 Contents Index - Country Overview pag. 4 - Tourism Market Overview pag. 12 - Boavista Overview pag. 18 - Competitive Environment pag. 22 - Promoter pag. 24 - Concept & Site Analysis pag. 25 - Contacts pag. 51 3 Country Overview Location and History The Cape Verde islands are located off the west of Africa. The archipelago consists of 10 islands of volcanic origin and cover a combined area of about 4.000 km2. The biggest islands are Santiago and Santo Antão. Praia is the capital. The islands were discovered by Portuguese and Italian explorers in the 15th century. Prior to this, they were uninhabited. The islands’ strategic location enabled prosperous and strong economic growth during the slave trade in the 16th century. After the decline of the slave trade, Cape Verde provided supplies and crew for shipping, with particular focus on the island of São Vicente where the main harbour for the archipelago was located. In 1975 Cape Verde achieved the independence from Portugal, with Portuguese being used as official language of the country, although Creole is the main language used by the population. Political Stability & Economy The political climate in Cape Verde is very stable and has been so for the last two decades. The current ruling party is the Movimento pela Democracia (MPD) who won the elections in 2016 defeating the Partido Africano da Independencia de Cabo Verde (PAICV) party. Since 1991, after the adoption of a multi-party state, there have been regular and peaceful changes of government. Cape Verde is recognised by the World Bank as being one of the most interesting countries in Sub-Saharan Africa and currently ranks among top performers in the World Bank’s Country Policy and Institutional Assessment (CPIA) for Africa. In 2000, the Cape Verde Escudo was pegged to the euro at the rate of 110,265 Escudos to €1. This has been conducive to creating a stable economic platform and mitigated any risks attached to foreign currency exchange levels. In December 2007, Cape Verde achieved middle-income country status with the World Bank, demonstrating good governance, sound macroeconomic management, including strong fiscal discipline and credible monetary and exchange rate policies. In July 2008, Cape Verde joined the World Trade Organization. 4 Country Overview Geography The Cape Verde archipelago is in the Atlantic Ocean, approximately 570 kilometres off the western coast of the African continent, near Senegal, The Gambia and Mauritania, being part of the Macaronesia ecoregion. The country is composed by ten islands (nine inhabited) and eight islets, that constitute an area of 4.033 km2. The 10 islands are spatially divided into two groups: - The Barlavento Islands (windward): Santo Antão, São Vicente, Santa Luzia, São Nicolau, Sal and Boa Vista; - The Sotavento Islands (leeward): Maio, Santiago, Fogo and Brava. The largest island, both in size and population, is Santiago, which hosts the nation's capital, Praia, the principal urban agglomeration in the archipelago. Three of Cape Verde islands, Sal, Boa Vista and Maio are fairly flat, sandy and dry; the others are generally rockier with more vegetation. Geologically, the islands are principally composed of igneous rocks, with volcanic struc and pyroclastic debris. Historical volcano (within human settlement) has been restricted to the island of Fogo. Extensive salt flats are found on Sal and Maio. On Santiago, Santo Antão and São Nicolau, arid slopes give way in places to sugarcane fields or banana plantations spread along base of towering mountains. 5 Country Overview Weather & Climate Cape Verde is tropical dry with 350 sunny days per year. lt has a dry season, from November to July, tempered by trade winds. The rainy season is from August to October. Halfway between the Tropic of Cancer and the Equator, Cape Verde's climate is hot and dry for most of the year, with temperatures ranging from 22 to 28 degrees. In the coldest months (January and February) the trade winds coming from the northeast blow harder. The temperature rarely descend below 20°C, even at night and the water temperature is close to that of air. The rainfall occur in the late summer when the temperatures begin to drop (it also comes in August to 32°C). 6 Country Overview Economy The Cape Verdean government established the top priorities for development: Natural resources: salt, pozzolana, limestone. 1. Promotion of market economy and private sector; Agriculture: bananas, corn, beans, sugarcane, coffee, fruits, vegetables, livestock 2. Development of tourism, light manufacturing industries and fisheries; products. 3. Development of transport communications and energy facilities. Industry: fishing products, clothing, shoes, beverages, salt, construction, building materials, ship repair, furniture, metal products, tourism. The economy is service-oriented with tourism, commerce, transport, communication and public services accounting for almost 70% of the GDP. Although nearly 35% of the The outlook for Cape Verde would appear to be positive. Real GDP growth is anticipated at population lives in rural areas, the share of agriculture in GDP is around 10%; fishing or close to 5% over the next few years, suggesting that Cape Verde will be one of the accounts for 1,5%, both of them are increasing rapidly. stronger performers within the African countries, and indeed European region, and tourism forecasts suggest arrivals could grow between 6% and 10% over the next decade. The GDP in Cabo Verde advanced 4,6 percent year-on-year in the last 3 years (2016-17-18) compared to a -15 percent recession in 2015. Main contributors to the growth were trade, transports, public administration, manufacturing and restaurants and hotels. Unemployment rate goes from 16% of 2013 to 9% of 2017 thanks to services, tourism and construction growth. Country Annual GDP Annual Growth rate % (thousands of Euro) 7 Country Overview Demographics The population of Cape Verde is estimated to be just over 0,55 million people (2018). Of this total, just under 300.000 live in Santiago (where Praia, the capital, is located). São Vicente is second in terms of population (80.000 residents), while Boavista has approximately 20.000 residents. The population growth rate for the archipelago is modest at around 1% per annum over the past five years and is forecast to grow at a marginally higher rate of 1,2% over the next six years. More Cape Verdeans live overseas with some of the largest communities settling in the US (0,5 million) and in Portugal (150.000). The influence of diaspora on every day life on Cape Verde cannot be underestimated. It is estimated that Cape Verdean’s living overseas send home remittances worth 9-10% of GDP, and therefore have a pivotal role in the islands’ economy. The median age of the population is around 22,7 years while the life expectancy is just over 70 years, in-line with developed countries within Africa. Approximately 61% of Cape Verde’s population live within urban areas. The largest urban population is within Praia, with an estimated 125.000 residents. The majority of the population resident in Cape Verde is of creole ethnicity, a combination of black African and European descent. Adult literacy rates are high particularly among the youth (97% compared with 84% across the national population) which is encouraging and a strong indication of the skills of Cape Verdeans. 8 Country Overview Infrastructures overview - Airport Until 2001, Cape Verde had only one international airport (Amilcar Cabral Airport located on Sal). After a period of All major cities of departure investment, primarily as part of the PIP (Public Investment Program), Cape Verde now has seven airports, four of which are international (Santiago, São Vicente, Sal and Boavista). Milano, Bergamo, Verona, Bologna, Roma, Napoli Munich, Basilea, Cologne Cape Verde had 2.700.000 passenger movements in 2017. Amilcar Cabral Airport was built by the Italians in 1939 Hannover, Hamburg, Stuttgart, Nürnberg and was the first international airport to open on Cape Verde. It was built as a fuel and provisions hub for planes en-route from Italy to South America. Dusseldorf, Frankfurt, Luxembourg Amsterdam, Brussels Most connections are to Europe with regular services to Portugal (through TAP Airlines), Germany and Nordic Stockholm, Helsinki, Copenhagen, Oslo countries (through TUI), Belgium (with Jetairfly and Thomas Cook Airlines), Canary Island (with Binter), France Paris, Lisboa, Las Palmas, Prague (with Vueling, Transavia) and Italy (with Neos Air and Blu Panorama). London, Manchester, Birmingham, Glasgow Boston, Reykjavik, Fortaleza 9 Country Overview Summary Cape Verde has a very stable political environment, and its links with EU countries (in Continued efforts to attract overseas investment, partnered (where possible) by government particular Portugal, Spain and the UK) have raised its profile within the international funding, should help to achieve these growth forecasts. community instilling confidence for potential investors in the archipelago. Indeed, it has a positive rating from the World Bank, being regarded as one of the most open The forging of new relationships for FDI from non-European source markets is encouraging and countries in Sub-Saharan Africa, and its membership to the WTO has increased its will help to mitigate any susceptibility that Cape Verde has had in the past through its exposure to reputation. European countries. There is still a huge reliance upon overseas investment to enable Cape Verde to grow, with the tourism sector making such a high contribution to GDP. The archipelago, despite its reliance upon imports, has over the past decade demonstrated real GDP growth at levels that are significantly higher than other Business Confidence Index economies within Africa and particularly across Europe. Much of this increase in GDP has historically been as a result of FDI from traditional European countries investing in the service sector and specifically tourism. However, with the global economic crisis hitting parts of Europe (specifically Portugal and Spain) particularly hard, FDI from these core investment partners has been reduced significantly.
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