Cabo Verde tourism prices climb 6.9 %

Cabo Verde’s National Institute of Statistics (INE) reported that the tourism-offer price index rose 6.9 % year-on-year in Q3 2025, reflecting robust visitor demand, higher accommodation costs, and renewed airline connectivity. The data underscore a resilient recovery in the archipelago’s tourism sector despite a mixed global travel environment and tighter European monetary conditions.

According to INE’s quarterly bulletin, hotel tariffs increased 8.1 %, food and beverage services 6.2 %, and transport-related components 5.5 %. These gains offset mild declines in recreation spending, yielding a quarterly increase of 1.3 % versus Q2. Tourist arrivals totalled roughly 260 000 during the period, only 4 % below the pre-pandemic record of 2019. Average occupancy in mid-range resorts climbed to 72 %, up from 65 % a year earlier.

Tourism remains Cabo Verde’s dominant export earner, accounting for 25 % of GDP and nearly half of foreign-exchange inflows. The World Bank projects 2025 real GDP growth at 4.6 %, underpinned by travel services and construction tied to the island’s Blue Economy strategy. Inflation has moderated to 3.4 %, helped by easing import costs and a steady escudo–euro peg, which anchors price stability through the region’s monetary union with Portugal.

Government efforts to lengthen visitor stays and diversify beyond all-inclusive packages are bearing fruit. The Ministry of Tourism’s incentive program—offering tax credits for eco-lodges and cultural tourism—has attracted 22 new operators since 2023. Domestic credit to the hotel sector expanded 9 % year-to-date, while non-performing loans in hospitality fell below 5 %.

Analysts say the steady rebound strengthens Cabo Verde’s fiscal outlook. Tourism taxes generated CVE 8.4 billion in the first nine months of 2025, up 11 % year-on-year, providing space to reduce external borrowing. The current-account deficit narrowed to 3 % of GDP as service exports recovered faster than goods imports.

Regional travel trends reinforce the optimism. The Airlines Index (JETS) gained 7 % over the quarter and Brent crude (CL=F) remained near US $85 per barrel, limiting fuel-surcharge pressures. With European demand stabilising and charter capacity expanding, Cabo Verde’s tourism-price momentum signals the islands’ regained competitiveness in the mid-Atlantic market.