05/08/06 - Cape Verde’s tourism sector grows 25 percent between 2000 and 2005
ImageThe number of tourists visiting Cape Verde has increased 25 percent between 2000 and 2005, boosting the sector’s contribution to the growth of the archipelago’s economy, officials said. Last year, tourism accounted for 10.4 percent of Cape Verde's gross domestic product (GDP), or 3.4 percentage points more than in 2000, according to a report on the sector presented to the Parliament by the government last week.
In 2005, the archipelago welcomed 230,000 visitors, or almost four-fold the number that visited in 2000.

According to the government, the rise in visitors gives the country the status of “international tourist destination,” and is expected to continue over the next few years, considering the hotel investments that are currently planned.

In 2005, Sal Island received over 70 percent of total tourist entries, followed by Santiago Island, which had 14 percent and Sao Vicente Island with 8.4 percent.

The number of beds available for tourist on the archipelago is expected to increase to 31,000 over the next few years and the number of rooms to 16,000, according to government forecasts.

Growth of tourism is also projected to create a further 17,000 direct jobs.

"The effect will be much greater, considering tourism’s capacity to create indirect employment," the report said.

Tourism-related real estate, particularly the promotion of vacation homes to Europeans, “is a new type of tourism that is beginning on the archipelago.”

Tourism is currently the main source of foreign direct investment in Cape Verde, particularly from Italy, which invested over US$141 million in the 2000-2005 period, followed by Spain (US$116 million) and Portugal with US$46 million).

Recently, Macau businessman David Chau announced an investment totaling US$100 million on a resort in Praia, which includes a casino, hotel and restaurants.
 
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