As one of the most politically stable and economically vibrant countries of Africa, Cape Verde is a truly appealing tourist destination for all kinds of world travellers. With a reputation for being very laid back, the Cape Verdean culture tends to make visitors feel relaxed and stress-free. This is perhaps why it has also become very popular with foreign investors who are interested in hotels and resorts.
The Attraction of the Cape Verde Lifestyle
As a thoroughfare for shipping and air lanes, Cape Verde is well positioned to capitalise on the tourist economy. The islands themselves have a rich and colourful history, having once been the home to the slave trade, as well as a port for traders, merchants, pirates, and many other shady characters. Many years after the slave trade was abolished, the islands, including Cape Verde, looked to tourism as a means of generating economic growth. Consequently, it remains one of the most vibrant national economies in Africa today, with a reputation for good hospitality and a relaxed lifestyle.
The qualities that make Cape Verde attractive to tourists also make it a great place for property investment opportunities. Some of the most promising Cape Verde property investment opportunities lie in the luxury hotel and resort sector, with many wealthy foreign investors looking to expand their portfolios to include the hospitality market.
Investing in the Tourist Economy
Given the fact that Cape Verde is a popular tourist destination, one would automatically assume that it should be a hotspot for foreign investment, but all smart investors interested in a long-term return look for the following trends and characteristics in their target market:
- Stability: The regionally stable representative democracy of Cape Verde makes it an attractive target for foreign investors. Buying into a stable market that leans towards liberalism means that any investment is more likely to flourish long term.
- Tourism: The characteristics that make Cape Verde popular with tourists also make it attractive to investors who want to buy into the luxury resort market.
- Diversification: One of the biggest benefits for companies and individuals looking for foreign investment opportunities is the fact that it not only increases the value of their property portfolio, but also increases diversification. Diversifying one’s portfolio ensures that a slowdown in one economy has a smaller impact on the overall value of the portfolio and financial returns. Currently, Cape Verde represents an exciting opportunity for investors looking at luxury hotels and resorts.
- Ongoing returns: What sort of return will the investment guarantee? What financial incentives are there to invest, and how are they structured to guarantee ongoing return over the medium to long term? These are all vital questions to ask.
For Cape Verde, this sort of investment adds to their national economy and makes it an ever more attractive option for foreign tourists. In this sense, it is a win-win scenario for all stakeholders. Furthermore, investors looking at Cape Verde are interested in a return on investment that makes financial sense for them.