The objective of this research report isto assess the market potential for local sourcing in theCabo Verde tourism food supply chain, with a particularemphasis on traditional sectors such as agriculture andfisheries. As tourism continues to expand rapidly in CaboVerde, the sector creates a growing market potential forlocally sourced produce. The number of inbound tourists inthe country has steadily increased from 428,000 in 2011 to710,000 in 2018 - a 7,5 percent CAGR in the period - causingwith it a rise in the direct economic contribution of travel& tourism activities to GDP, now estimated at near 20percent. The islands of Sal and Boa Vista dominate themarket, attracting together 76,4 percent of all arrivals,who visit overwhelmingly under the all-inclusive resortsegment. In addition, higher average lengths of stay inthese two islands imply that they account for proportionallymore room nights (89,9 percent of the total bed nights) thanthe rest of the country. The level of linkages between theprimary sector and tourism has long been a debated topic,particularly the untapped potential of additional positivespillovers and impact on poverty reduction. A World Bankstudy commissioned in 2013 estimated that more than 80percent of food and beverage products consumed byall-inclusive resorts were imported. While these resortshave been decisive in pushing infrastructure development andpromoting job creation, the level of linkages with localbusinesses is seen as being below potential. The study foundthat the low level of local food sourcing stemmed from arange of challenges related to sanitary and quantitystandards, volumes, reliability of supply, and connectivity.Since then, very little research has sought to quantify themarket potential in supplying tourism or assessing whichproducts could be prioritized at local production level, oncomparative and competitive advantages vis-à-vis imports.The methodology for this research comprised a quantitativeand qualitative survey with a representative sample of largehotels in Sal and Boa Vista, in addition to in-depthfollow-up interviews and desk review of pertinent data. Thetype of commercially sensitive information required from thesurveyed participants severely undermined participation,despite guarantees of confidentiality. A substantial effortwas invested in following-up, and the team was able togather consumption data covering a small representativesample of large hotels, as well as relevant information onmarket characteristics and trends from the leading hotelsupplier wholesalers.
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