The Cape Verde tourism industry will continue to sustain property prices
Thomas Cook collapse to have no negative effects on the long term
The tourism industry in Cape Verde is still booming, and the collapse of Thomas Cook did not change this. Some of the world's most popular tourist hotspots were bracing for a tsunami of cancellations after the collapse, reality however proved that the panic wouldn't last long and gaps of available capacities are in the process of being filled by the ever growing demand for quality holidays with guaranteed sunshine.
True, some of the destinations where Thomas Cook remained a strong brand until its collapse, especially the ones in northern Africa, experienced major downshifts in arrival numbers and at least a slowdown of growth, if not a slight reduction of arrival numbers will be felt on many Mediterranean destinations. On destinations with high percentage of British tourist arrivals, this slowdown or decrease will even be underlined by the remaining insecurity around Brexit.
Continuing demand for quality holidays with guaranteed sunshine
But the demand is still there and it will not take long until competitors have re-acquired all available capacities. This will most certainly also be the case for Cape Verde and when knowing that Thomas Cook already started reducing its presence and capacity investments in Cape Verde over the past years, you can even expect for the recovery to be fast.
Most holidaymakers on Cape Verde arrive through the TUI travel group or stay in one of their branded hotels. These and other hotel brands like Steigenberger, Meliá, Hilton or Hardrock have already signed on the intent to manage large resort projects that are currently being built or planned and authorized to commence construction imminently. There can be no doubt that both developers and hotel management companies have strategies in place to fill their newly acquired capacities on the long term. What will happen this winter in the tourism industry is a redistribution of available capacities by the laws of economic nature, a little earthquake in the accommodation allotment landscape of the world's leading resort areas, and Cape Verde will feel some of the short-term shock-wave, but nothing more. The people are still there and they still want to visit attractive places such as Cape Verde.
Cape Verde tourist arrivals predict the evolution of property prices
Growing tourism numbers mean a growing popularity for the region or country, and growing popularity, thus demand, will create more flight and accommodation capacities to a region. The more people visit a place, the more holiday homes and apartments are necessary to cater for the visitors. While the big above mentioned travel groups will only sell to the limits of their own capacities, the marketing they used to achieve this will also "infect" customers outside of their pool of customers, making them aware of this new tourism hotspot, and wanting to travel there too, may it or may it not be through the services of these travel organizations.
Property prices in Cape Verde are expected to continue to rise over the next few years, despite a small backstep in the second quarter of this year, adding additional returns to investors letting their properties on the holiday rental market.
A unique spot on the tourism landscape
The warm weather throughout the year together with the lacking rainy or hurricane season that usually come with a tropical paradise like Cape Verde, make the islands an ideal spot for a hassle-free holiday. And for northern European holidaymakers, it is almost impossible to find a similar tropical paradise only 5 to 6 flight hours away from their home. Nearby rivals such as Gambia or the Senegalese Costa's may offer equal conditions, but still lack a big part of the infrastructure and unlike Cape Verde, are not free from tropical diseases.
The sustainable growth of Cape Verde is also due to its stable government and law apparel, which make of Cape Verde one of Africa's best rated democracies. Elections are free and fair and there is freedom of speech. Freedom House grants Cape Verde the first position for political rights and civil liberties, the only African country with this status. Cape Verdean property law, which derives from the Portuguese law, is transparent and there are no limitations to foreign property ownership . Cape Verde maintains close links with Portugal and the European Union and has even joined the World Trade Organization in 2008.
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