Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Cabo Verde The Potential of Local Experiences and Online Marketplaces to Diversify Tourism Final Report, October 2019 Public Disclosure Authorized Disclaimer This report was prepared by Judy Karwacki, with contributions from Helena Moscoso, in the context of the Diversifying Tourism and Strengthening Linkages through Digital Technologies in Cabo Verde Analytical work (ID: P169076). The authors' views expressed in this publication do not necessarily reflect the views of the World Bank Group. P a g e | 1 The Potential of Local Experiences and Online Marketplaces to Diversify Tourism Table of Contents Executive Summary ............................................................................................................... 6 1 Introduction ................................................................................................................. 10 1.1 Methodology and Outcomes ............................................................................................ 11 2 Why Focus on Local Experiences? ................................................................................. 11 2.1 The Global Tourism Trends ............................................................................................... 11 2.2 Local Tourism Development in Cabo Verde ....................................................................... 12 2.3 Definition of a Local Experience ........................................................................................ 13 3 Online Marketplaces for Tours and Activities................................................................ 16 3.1 The Maturing Online Market for Tours and Activities ........................................................ 16 3.2 Types of Online Marketplaces for Tours & Activities ......................................................... 17 3.3 Dominant Marketplaces ................................................................................................... 18 3.4 Leading P2P Marketplaces ................................................................................................ 18 3.4.1 AirbnbExperiences ................................................................................................................ 18 3.4.2 Other Key P2P Marketplaces ................................................................................................. 20 3.4.3 Listing Policies of P2P Marketplaces ..................................................................................... 20 3.5 Leading OTA Marketplaces ............................................................................................... 20 3.5.1 TripAdvisorExperiences (includes Viator) ............................................................................. 21 3.5.2 BookingExperiences .............................................................................................................. 21 3.5.3 Other OTAs ............................................................................................................................ 22 3.5.4 Listing Policies of OTAs .......................................................................................................... 22 3.6 Profile of the Traveler ...................................................................................................... 22 3.7 Local Experiences and Online Marketplaces: Opportunities and Challenges ....................... 24 3.7.1 Opportunities for Developing Destinations .......................................................................... 24 3.7.2 Challenges for Developing Destinations ............................................................................... 26 4 Case Studies ................................................................................................................. 27 4.1 Bermuda .......................................................................................................................... 27 4.2 Airbnb Africa Academy..................................................................................................... 30 5 Cabo Verde Tourism Demand ....................................................................................... 31 5.1 Inbound Visitors .............................................................................................................. 31 5.2 Projected Tourism Growth ............................................................................................... 32 5.3 Tourist Arrivals and Hotel Nights ...................................................................................... 32 5.4 Tourist Characteristics ...................................................................................................... 33 5.5 Main Tourist Segments .................................................................................................... 34 5.5.1 All-Inclusive Tourists ............................................................................................................. 35 5.5.2 Adventure Travel Visitors ...................................................................................................... 36 5.5.3 Cruise Visitors ........................................................................................................................ 37 5.5.4 Other Tourist Segments ........................................................................................................ 39 6 Cabo Verde Tourism Supply ......................................................................................... 39 6.1 Accommodation Supply ................................................................................................... 39 6.1.1 Types of Establishments ........................................................................................................ 39 6.1.2 Bed Capacity .......................................................................................................................... 41 6.2 Local Experiences Assets .................................................................................................. 42 6.3 Challenges for Developing and Marketing Local Experiences ............................................. 43 7 Benchmarking Cabo Verde on Online Marketplaces ...................................................... 47 7.1 Number of Listings ........................................................................................................... 47 P a g e | 2 The Potential of Local Experiences and Online Marketplaces to Diversify Tourism 7.2 Types of Listings ............................................................................................................... 48 7.3 Pricing ............................................................................................................................. 48 7.4 Duration .......................................................................................................................... 50 7.5 Benchmark Assessment Conclusion .................................................................................. 51 8 Key Findings ................................................................................................................. 52 8.1 Overall Findings ............................................................................................................... 52 8.2 Local Experiences Development Potential ......................................................................... 54 8.2.1 Types of Local Experiences .................................................................................................... 54 8.2.2 Priority Locations................................................................................................................... 60 8.3 Demand for Local Experiences .......................................................................................... 61 8.3.1 Potential Market Demand and Value .................................................................................... 61 8.3.2 Increasing the Demand for Local Experiences ...................................................................... 64 8.4 Marketing Potential of the Online Marketplaces ............................................................... 64 8.4.1 Complementary Digital Marketing ........................................................................................ 66 8.4.2 Travel Trade Marketing ......................................................................................................... 68 8.5 Supporting the Development of Local Experiences ............................................................ 69 Recommendations .............................................................................................................. 70 Annex 1: AirbnbExperiences ................................................................................................ 87 Annex 2: P2P and OTA Marketplaces ................................................................................... 91 Annex 3: Bermuda Case Study ............................................................................................. 94 Annex 4: Cabo Verde Tourist Arrivals and Hotel Nights ........................................................ 99 Annex 5: Stakeholders' Information and Input ................................................................... 100 Annex 6: Cabo Verde Cruise Tourism Statistics ................................................................... 104 Annex 7: Cabo Verde Tourist Accommodation Supply .......................................................