Africa -  Cape Verde

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%.

Exchange Rate:

Exchange Rate 2014 Exchange Rate 2015 Change 2014/2015 Exchange Rate 2016 Change 2015/2016
US$ 1 1 1
Cape Verde 0.01204 0.01005 -16.5% 0.01009 0.4%

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Cape Verde RevPAR Change

Cape Verde RevPAR

Year RevPAR
2012 42.02
2013 43.88
2014 34.78
2015 42.16
2016 46.68

For more information, please contact:

Tim Smith, MRICS
tsmith@hvs.com
  • +27 797 342296 (w)
Tshepo Makhudu
tmakhudu@hvs.com
Laura Dutrieux
ldutrieux@hvs.com