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Cape Verde tourism tax rises 21% until April
Cabo Verde collected 561 million escudos (five million euros) in the first four months of the year with the tourist tax paid by tourists visiting the archipelago, an increase of 21% compared to 2023, according to official data.
© Lusa
Economia Cabo Verde
According to the budget execution summary published by the Government, the increase in the tourist tax is justified "by the substantial increase in tourist demand".
The amount collected was almost 71 million escudos (642 thousand euros) above the Government's best forecasts and means an average revenue equivalent to more than one million euros per month.
The tourist tax was created by the Cape Verdean Government in May 2013 and is used to finance the Fundo Mais, which supports the Cape Verdean Government's social support, namely the Social Inclusion Income (RSI) attributed to families in situations of extreme poverty, which the Government intends to eradicate by 2026.
Cape Verde's hotel establishments broke the guest record in 2023, exceeding one million: the year closed with 1,010,739 guests, according to the National Institute of Statistics (INE).
The numbers also exceed pre-pandemic values: "compared to 2019, there was a 23.4% growth in the number of guests".
The Government and private institutions predict that the sector (which represents a quarter of Cape Verde's Gross Domestic Product) will continue to grow, leveraged, in part, by the start of low-cost airline flights in October to Sal Island -- which concentrates the vast majority of the archipelago's tourist activities.
Read Also: Cape Verdean Government wants to receive 1.2 million tourists this year (Portuguese version)
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