An archipelago of ten islands located off the coast of Senegal, Cape Verde owes 22% of its GDP to tourism, which is also its primary source of foreign currency.
A popular destination for European travelers, this natural jewel of the Atlantic Ocean has seen its tourist arrivals drop to 180,000 visitors in 2020 for 147.96 million euros in revenue, compared to 758,000 tourists and 506.48 million euros in revenue in 2019.
Last February, the government allocated 20 million euros by 2026 as part of the Social Fund for the sustainability of Cape Verde tourism. The objective is to boost the attractiveness of the archipelago.
At the same time, several hotel operators continue their expansion in this West African market dominated by the Portuguese business. Moreover, Oasis - a hotel group based in Lisbon - inaugurated its fifth establishment in Cape Verde in early July. In addition, the country is currently working on a project to renovate its museums related to the sea, thanks to 110,000 euros in funding from the European Union (EU).
While Covid-19 had plunged the Cape Verde tourism industry into an extremely difficult situation, the local economy has to deal with the war in Ukraine, which has boosted inflation to 8%. At the end of June, the authorities declared a state of economic emergency. However, the government bets on this summer season. To maximize their potential, the management of the archipelago's airports was recently entrusted to the French group Vinci.