TOURISM RESEARCH STUDY ON YACHTING SECTOR   CABO VERDE Table Of Contents Acknowledgements 3 Section 8. Recommendations 56 Abbreviations 4  .1. Building local capacity and skills for 8 the needs of these vessels 57 Executive Summary 6  8 .2. Developing infrastructure to support Section 1. Introduction 17 increased demand across Mindelo, Sal, Section 2. Methodology 18 and Santiago 59 Section 3. Market Overview and Trends 19 8  .3. Easing vessel entry, registration, procedures, and standardizing policies 3.1. Introduction to the Sector 19 across island/type of vessel 69 3.2. Global Nautical Tourism Industry  8  .4. Building Stronger Public-Private Overview 20 Partnership and Local Advocacy in Yachting 73 Section 4. National-Level Current 8  .5. Targeted Marketing to Yacht State Analysis 22 Decision Makers 76 4.1 National-Level Nautical Tourism Analysis 22 8 .6. Encouraging investment in yachting  79 4.2 National-Level Policy Analysis 24 8.7. Potential Impact of Recommendations 82 Section 5. Assessment of Current Status - Annex I.I: Questionnaire about Cabo Verde Santiago, São Vicente, Sal 28 for Yacht Brokers 95 5.1. Overview of Santiago, São Vicente,   nnex I.II: Survey for Private Sector in A and Sal 28 Cabo Verde 96 5.2. Analysis of Key Locations 29 Annex II: Market Overview and Trends 97 5.3. Further Insights, Marina Studies,  Yacht Industry Overview 97 and Ongoing Projects 34 Annex III: National-Level Current 5.4. Potential and Recommendations for State Analysis 101 Development 38 Local Business Ecosystem Survey Results 101 5.5 Take-Aways for Cabo Verde 40  nnex III.I: National Policy, Customs, A Section 6. Market Analysis 42 Immigration, Safety and Licensing 104 6.1. Actual Market Segments 42 Annex IV: Analysis of Key Locations 110 6.2. Augmenting Existing Market Segments 43 Annex V: Market Analysis 113 6.3 Looking Forward: What is the Potential  Annex VI: Potential Impact for Yachting in Cabo Verde? 46 of Recommendations 121 6.4 Takeaways for Cabo Verde 47 Section 7. Competitiveness Analysis 48 7.1. Canary Islands 48 7.2. Grenada 49 7.3. Croatia 50 7.4. Cross-Competitor Analysis 52 Cabo Verde Yacht Tourism Study 2023 2 Acknowledgements This report was produced by a core team that was led on the World Bank Group side by Cristina Navarrete Moreno, Louise Twining-Ward, Jessie McComb, and Dalia Regina Soares Gomes. The team of consultants from Trove Tourism Development Advisors included Danny Cohanpour, Regina Binder, Charlotte Slater, Thais Lima, Basil Smith, Hallie Milstein, and Eduardo Sarmento. We express our gratitude to the government entities involved in the project for their leadership and expertise. Special thanks to the agencies under the Ministry of Tour- ism & Transport and of the Ministry of Sea, to the local authorities in Tarrafal, Mind- elo, and Sal, to ENAPOR and Chamber of Tourism. The report also relies on the insights of survey respondents, including international luxury yacht brokers, international rally organizers and participants, and local busi- nesses in Cabo Verde. 3 Abbreviations ABBREVIATION MEANING ABBREVIATION MEANING Amp Ampere, unit of electric current GTA Grenada Tourism Authority ARC+ Atlantic Royal Cruising + Race Hz Hertz, unit of frequency ASYCUDA Automated System for Customs Data ICC International Certificate of Competence B&B Bed and Breakfast Information and Communications Technol- ICT ogy C Celsius IMar The Institute of the Sea, Instituto do Mar CAGR Compound annual growth rate IMP Maritime Port Institute CBI Citizenship-by-Investment INE Instituto Nacional de Estatística CBIA Croatian Boating Industry Association Higher Institute of Marine Engineering and ISECMAR Sciences CCTV Closed-circuit television cm centimeter The International Code for the Protection of ISPS Code Ships and Port Facilities COVID-19 / Coronavirus disease ITCV Instituto do Turismo de Cabo Verde COVID IYBA International Yacht Broker Association DNA Designated National Authorities IYC The International Yacht Company Direção Nacional de Aquicultura e Pesca Kilometers/square kilometers, DNAP - National Directorate of Aquaculture and Km/Km2 unit of length/ unit of surface area Fisheries LOA Length overall National Directorate for the Policy of the DNPM Sea Meters/square meters, m/m2 unit of length/ unit of surface area EC Eastern Caribbean dollar MAYAG Marine & Yachting Association of Grenada E.g. For example mL Milliliter, unit of volume EMAR The School of the Sea - Escola do Mar mm Millimeter, unit of length ENAPOR Cabo Verde Port Authority MMSI Maritime Mobile Service Identity EU European Union MOU Memorandum of Understanding EUR Euro MRCC Maritime Rescue Coordination Centre FAM Trip Familiarization trip Spanish Federation of Associations of MSD Marine Sanitation Device FEAPDT Sports and Tourist Ports MTT Ministro do Turismo e Transportes FLIBS Fort Lauderdale International Boat Show MYBA Mediterranean Yacht Broker Association ft Feet, unit of length N, E, W, S North, east, south, west g Grams, unit of mass NGO Non-governmental organization GDT General Directorate of Tourism Obecan Observatorio Canario de Empleo GHTA Grenada Hotel and Tourism Association PDDC Cruise Destination Development Program GPS Global positioning system PEDS II Sustainable Development Strategic Plan II Cabo Verde Yacht Tourism Study 2023 4 Abbreviations ABBREVIATION MEANING ABBREVIATION MEANING PONTAO Former pier development project V Volt(s) PPP Purchasing power parity VAT Value-added tax Quarantine flag, indicates the absence of VHF Very high frequency Q Flag diseases aboard a vessel WiFi Wireless fidelity, internet RADAR Radio detection and ranging $k / k USD Thousand Economic and Fiscal Regime - Régimen REF Económico y Fiscal RORC Royal Ocean Racing Club RORO Roll-On/Roll-Off Resilient Tourism and Blue Economy Devel- RTBED opment Self Contained Underwater Breathing SCUBA Apparatus International Sailing License and Creden- SLC tials SMEs Small and medium-sized enterprises SOLAS Safety Of Life At Sea International Convention on Standards of STCW Training, Certification, and Watchkeeping Convention for Seafarers UfM Union for the Mediterranean UK United Kingdom United Nations Conference on Trade and UNCTAD Development United Nations Educational, Scientific and UNESCO Cultural Organization United Nations Code for Trade and Trans- UNLOCODE port Locations U.S. United States USD United States Dollar UTC Coordinated Universal Time Cabo Verde Yacht Tourism Study 2023 5 Executive Summary The yacht tourism industry, encompassing leisure overall global yachting industry.2 As of the beginning yachting, charters, and races, experienced growth of 2023, the worldwide fleet of superyachts exceeding in 2022 and is projected to surge by 2030. Yacht 30 meters in length comprised 5,555 operational ves- tourism involves the use of motor or sailing yachts sels3, and there are 592,000 4 yachts only in the United for leisure, recreation, and travel purposes. This may States. The industry provides direct employment to manifest in the form of yacht charters, private-use between 148,000 and 163,0005 people globally. Fur- vessels, or rallies and races. The yacht sector has thermore, in 2023, the global yacht market is growing demonstrated growth, with an estimated global mar- due to more people engaging in recreational tourism, ket value of $9.1 billion in 20221. Projections suggest an increase in digital marketing, higher social media that by 2030, this value could grow to $13.7 billion, re- usage, and a rise in high-net-worth individuals (HN- flecting a compound annual growth rate (CAGR) of 5.2 WIs)6 seeking recreational and private tourism oppor- percent, when analyzed over 2022 to 2030. Yacht char- tunities, especially in marine activities, post-Covid. ters constituted a 30 to 35 percent share within the Yacht tourism can have an impact on local econo- mies. Global benchmark data shows the average yacht tourists spend $287 USD/per person/day.7 Studies indicate that yacht tourist revenue per day per head is about double that of a general leisure traveler. For example, in 2022 the average daily expenditure of in- ternational general leisure tourists in Spain was $162 AVERAGE YACHT USD8. In addition, yachting activities play a role in bolstering the local economy through various means TOURISTS SPEND $287 including marina and port operations, fuel and other taxable goods, job growth, taxes and levies and char- ter or tour operations. Typically, the average net worth of luxury yacht owners is around US$510 million.9 PER PERSON / PER DAY Cabo Verde 6 Yacht Tourism Study 2023 Executive Summary Properly planned, yacht tourism can have a pos- opment in Cabo Verde and that the opportunity for itive environmental impact. It is imperative to ac- yachting in the country is significant. Based on IYC knowledge the environmental impact associated with data, global demand for yachting has shifted in 2023 the yachting industry. Environmental sustainability from the traditional destinations in the Mediterra- is a critical consideration, and the recommendations nean and Caribbean in favor of sustainable tourism, outlined in this report are made with an aim to also newer destinations like the Seychelles, Costa Rica, Be- minimize ecological footprints, preserve marine eco- lize, and Indonesia10. systems, and promote responsible practices within the yachting sector. As such, any proposed developments In the past, Cabo Verde has consistently experi- or expansions include a thorough environmental im- enced yacht arrivals. However, when we look at pact assessment. destinations with a higher Compound Annual Growth Rate (CAGR), it becomes evident that there This study aimed to determine the opportunity for is an opportunity for Cabo Verde to achieve sim- Cabo Verde in yacht tourism. Cabo Verde is a rel- ilar growth. This can be accomplished through ative newcomer in the yacht tourism industry. With strategic marketing, policy adjustments, and in- only one marina in Cabo Verde, the industry is new. vestments in infrastructure. In Cabo Verde, histor- Still, there is opportunity for Cabo Verde to grow and ical data (available in Annex V) shows us that growth succeed in yacht tourism. In this context, a team of in yacht vessel arrivals has been relatively steady at yacht and marine tourism consultants conducted a re- around 15 percent CAGR since 2016 and that there search study, looking at the (1) demand for yacht tour- is room for improvement.11 In 2022, the last year for ism globally, (2) current state of infrastructure, policy, which there are four quarters, the total number of and marketing in Cabo Verde to support said demand, sailing vessels that stayed at least 24 hours in Cabo and (3) international case studies of competitive des- Verde was 447—of which around 300 were crossing tinations who have captured more of the yachting the Atlantic12. Length of stay in Cabo Verde is usually market. The team’s goal was to conclude if there exists three to five days. Moving forward, it can be expected an opportunity in the yacht tourism sector for Cabo that the CAGR for Cabo Verde would be 15-25 percent Verde and to provide investment and policy recom- over the next five to ten years without any significant mendations for Cabo Verde to achieve its potential in changes in marketing, infrastructure development or this sector. investment. In comparison, relative destinations such as Costa Rica and Seychelles have seen more substan- Key Findings: Key findings were derived from the tial growth, with Costa Rica’s arriving vessel CAGR at market analysis, current state analysis and 127.7 percent and Seychelles’ at 88.25 percent primar- competitive analysis. ily due to policy changes and investments. There is an opportunity to increase the CAGR of yacht arrivals Global yachting industry market trends in 2023 to 60 percent with investments in marketing, policy favor Cabo Verde’s yachting tourism development, changes and infrastructure, similar to case studies with a shift in demand towards sustainable tour- in Seychelles and Costa Rica.13 In addition, with the ism in comparable destinations. In examining the right policy improvements and infrastructure chang- current market in the yachting industry in Section 6 es, the length of stay can increase from a few days to in this report, the researchers observed that current 2-3 weeks. global trends are in favor of yachting tourism devel- Cabo Verde Yacht Tourism Study 2023 7 Executive Summary Yacht demand in Cabo Verde has been increasing, be addressed. Attracting more luxury yacht charters with continued potential for growth in these seg- from international markets presents an opportunity ments. Demand has been growing in Cabo Verde since for Cabo Verde but there are required improvements 2016 largely due to rallies and races (Atlantic Race that must be made first. There are approximately five Cruising ARC+ and more recently The Ocean Race), luxury yacht charter companies (both internation- transiting fleets and fishing yachts. The main common al and locally owned) active in Cabo Verde, mostly types of yachts currently active in Cabo Verde are the during November-February’s high season, and that transiting vessels from Europe to the Caribbean and has remained relatively stagnant over the years. After rallies and races including Atlantic Rally for Cruisers+ surveying a selection of international luxury charter (ARC+). There is continued potential in these specif- brokers about Cabo Verde, results of which are in An- ic segments as the number of vessels year-over-year nex V, the research revealed that charter customers are have increased and international demand has also in- not coming to Cabo Verde largely because they know creased across these market segments.14 little about Cabo Verde’s marinas or yacht amenities. The few luxury charter brokers that are aware of Cabo Additionally, feedback from rally organizers and par- Verde chose Cabo Verde because their clients were ticipants in Cabo Verde indicates a need for infra- looking for natural beauty and a tranquil location that structure improvements, especially at the Mindelo has a variety of activities. Charter brokers recommend marina, and emphasizes the importance of collabo- improving Cabo Verde’s international marketing as rative efforts to maximize the economic potential of well as introducing incentives for charter yachts to maritime events for sustained growth and success. stay longer and working with local charter companies After surveying rally organizers and participants, results to provide onshore tours, transportation, and guides of which are in Annex V, it was discovered that although to encourage yachters to extend their stay. their experiences in Cabo Verde were net positive, there is progress that can be made in two areas: infrastructure and Upon review of the current growth rates and en- partnerships. While the islands provide unique experienc- vironmental conditions in São Vicente, Sal, and es and serve as strategic stopovers, there is a need for in- Santiago, it was identified that the most potential frastructural development such as a TravelLift for repairs, exists in the following key market segments, bro- breakwater for wave protection, or marina expansion. ken down by location: The marina in Mindelo, despite its basic offerings, must evolve to cater to the rising demands of modern sailors, • São Vicente: The focus of the local yachting in- especially those familiar with top-tier European marinas. dustry in São Vicente should be on sailing vessels, Concerns about infrastructure, utilities, and services un- specifically around improving dwell time for rallies derscore the pressing requirement for upgrades to make and races as well as seasonal transiting vessels, in Cabo Verde a premier maritime destination. Additionally, addition to growing the capacity for sport fishing for sustained growth and success, there is a pressing need yachts. This is largely due to the trade winds that for collaborative efforts, particularly between the sailors, make Mindelo a favorable location for sailing ves- event organizers, and local leadership. Enhanced engage- sels, as well as the continued growth rates in these ment from the municipality can drive initiatives that rec- types of vessels that Marina Mindelo has seen in ognize and harness the economic potential of maritime recent years. events, transforming challenges into opportunities. • Sal: The focus in Sal, given the expansive local Survey results also indicate a lack of awareness amenities and hospitality infrastructure, should about the marinas and yacht amenities which must be on mid-size, primarily motor vessels (60-120’) for chartering. Cabo Verde Yacht Tourism Study 2023 8 Executive Summary • Santiago: The focus of the yachting industry hub for yacht tourism with room for expansion should be around compact, smaller sailing vessels and infrastructure upgrades to attract more ves- (40-60’) for charter activities, specifically in Tar- sels and requiring key improvements for a more rafal. However, as discussed in the recommenda- appealing yachting destination. São Vicente has tions section, a carrying capacity analysis must infrastructure to host these luxury vessels, though be done in Tarrafal first in order for any growth there is room for enhancement in some sectors. In São or development in yachting to take place. In addi- Vicente, Marina Mindelo is seeing high growth, but tion, there is potential for motor vessel expansion there is potential for further expansion of the Marina in the long-term in areas like Porto Lobo, North- and upgrades to infrastructure to take in even more east of Praia. boats as well as to improve services and amenities near the Marina to encourage longer length of stay of In examining the current state of policy and infra- these vessels. Porto Grande, situated in Mindelo Bay, structure in Cabo Verde in Section 8 of the report, primarily serves commercial purposes. Although it findings are collected at a national-level and for each can host large yachts upon request from Marina Min- of the three islands assessed: São Vicente, Sal, and delo, it is limited to just 24 hours. São Vicente has po- Santiago. tential to grow its vessel arrivals and has the capacity to do so year-round; however, local services, amenities Cabo Verde has strengths in marine education in- (tours and experiences), and a lack of on-shore recre- frastructure and nautical tourism legislation, but ation present challenges for yacht tourists to develop faces obstacles, emphasized by local business sur- an itinerary. In addition, there are key infrastruc- vey results. At a national-level, there are strengths as ture improvements, including the implementation of well as limitations in Cabo Verde for the yachting sec- a breakwater and TravelLift, that are required to in- tor. These strengths include a marine education infra- crease repair turn-around time and to turn Mindelo structure with three educational institutions to meet into a more attractive destination for yachts. the demand for skilled labor. There is also a strong foundation of nautical tourism legislation. However, In Sal, Santa Maria is a promising location for current policy limitations including high taxes and du- yacht tourism but needs improved marina infra- ties on foreign boats, lack of standardization in terms structure, while the Port of Palmeira has limita- of entry and registration of boats, and lack of enforce- tions. There are two main Sal sites presently used for ment on policies related to boat movements, seizure of yacht anchorages: Santa Maria and Palmeira. Locat- boats, wreckage, wastewater and sewage present ob- ed on Sal Island, Santa Maria has emerged as a par- stacles for Cabo Verde in growing their yacht arrivals. amount tourist hub with its pristine beaches and an In addition, after surveying local businesses in Sal and array of services tailored for visitors. The transforma- São Vicente about their perceptions of the yacht in- tion of the area from a modest fishing village to an epi- dustry, the results of which are in Annex III, there are center of luxury tourism, demonstrated by the pres- clear improvements that need to be made in local edu- ence of prestigious hotels like Hilton and Riu, speaks cation on yachting. Most local businesses surveyed in volumes to its potential. The proximity of Santa Maria Cabo Verde emphasized that there must be more local Village to pivotal locations like Amilcar Cabral Inter- education on the economic benefits of yachting. Busi- national Airport and Espargos underscores its strate- nesses also support the need for advocacy, public-pri- gic significance. However, for Santa Maria to further vate dialogue, infrastructure enhancement, and local capitalize on yacht tourism, infrastructure enhance- skills development in yachting. ments are imperative. Current anchorage facilities, while functional, remain rudimentary, emphasizing São Vicente in Cabo Verde is the most advanced the need for well-equipped marinas. Moreover, the Cabo Verde Yacht Tourism Study 2023 9 Executive Summary sites suggested for potential marina development hold several hotels of varying quality (with one standing promise, though evaluation rooted in both ecological out as particularly impressive), diverse visitor accom- sustainability and the preservation of local livelihoods modations, a scuba diving operation, and a historical remains essential. The simultaneous growth in ac- attraction. Introducing a marina coupled with com- commodation establishments, particularly luxury ho- munity awareness initiatives and training could boost tels, also indicates a future for tourism. Nevertheless, its already promising tourism prospects; however, an bridging the current gaps in services tailored to yacht assessment should be made of the destination’s carry- tourists, such as extended yacht rentals and special- ing capacity to gauge if it can even be plausible to take ized amenities, will be instrumental in amplifying the in yachts or build a strong, functioning marina. Al- region’s appeal. A visit and analysis of Palmeira yield- ternatively, the city of Praia is already well-equipped ed further conclusions: While Palmeira can efficient- to accommodate luxury yacht fleets. This readiness ly serve as an auxiliary solution, offering the island comes not only from those that dock in its waters but a foundational marina setup, its contribution towards also from vessels pausing before setting course for the amplifying the tourism quotient is limited. There are Caribbean. The harbor stands as an ideal destination multiple challenges regarding commercial shipping, for these vessels, offering all the essential facilities and large yachts, which are becoming increasingly for refueling, repairs, and anchoring. Furthermore, common, are compelled to anchor within the existing the city houses an international airport that receives ports due to the glaring absence of specialized an- flights from major European cities, thus promoting choring zones. In addition, the port in Palmeira is not international tourism in the area. However, the na- an ideal location for high net-worth yacht customers scent amenities, luxury hotel infrastructure or service looking for amenities. Proposals have surfaced sug- industry pose barriers to the development of Praia as gesting the establishment of a marina exclusively for a yacht tourism destination. As of now, there is a lim- yacht traffic, effectively separating them from tradi- ited number of restaurants, hotels, and entertainment tional fishing vessels. While this sounds promising, centers in Praia that would appeal to a high-net-worth the practical implementation would involve dredging demographic. to facilitate the smooth entry and exit of larger ves- sels. Comprehensively, an investment in a location The report examines three yachting sector com- like Santa Maria could yield more substantial long- petitors for Cabo Verde for valuable lessons in term dividends, both economically and for tourist sat- yachting development, providing insights for Cabo isfaction. In Sal overall, a feasibility study comparing Verde’s sector enhancement. In Section 8, the re- sites across Santa Maria and Palmeira, which will also port includes an analysis of three market competitors include an environmental assessment, can provide for Cabo Verde in the yachting sector, identified upon more tangible evidence related to the potential of key reviewing current market trends. The chosen compet- sites on the island for marina development. itors are: Canary Islands, because of the proximity of the Canary Islands to Cabo Verde and the maturity of In Santiago, Tarrafal shows tourism potential their yacht tourism market; Grenada, because of its but needs infrastructure assessment for a mari- presence on the route from Europe to the Caribbean na; Meanwhile, Praia is well-equipped for luxury for transiting vessels; and Croatia because it could be yacht fleets but requires more incentives for the a useful exercise to look at this market to gain valuable service industry and amenities catering to high- lessons on yachting development. Cabo Verde can draw net-worth individuals. Tarrafal, with its average valuable insights and lessons from the experiences and depth of five meters (or 16 ft), is equipped with only accomplishments of these countries in a few key cate- basic port amenities and primarily caters to inter-is- gories, listed below, to enhance its own yacht tourism land boat traffic. The region has a beautiful beach, demand and sector. Cabo Verde Yacht Tourism Study 2023 10 Executive Summary • Infrastructure Development: The Canary Islands night stays on nautical tourism vessels have and Croatia have expanded their yachting infra- boosted the industry. Cabo Verde can explore sim- structure, with numerous marinas and ports, mak- ilar measures to attract yacht owners and encour- ing it easier for yachts to dock and access essential age them to use local services for maintenance services. Cabo Verde should focus on developing and repairs. and expanding its marina facilities in specific ar- eas, as outlined in the Recommendations section of Overall, there are specific recommendations, outlined this report, to accommodate more vessels, provid- below, that Cabo Verde should take into consideration ing services like refueling, water, and electricity. when developing its yacht tourism industry to align with global best practices. • Customs and Entry Procedures: The Canary Islands have streamlined customs procedures, making it Recommendations: There is an opportunity for the easy for yachts to enter and exit the region. Cabo yacht tourism sector to contribute to Cabo Verde’s lo- Verde has the opportunity to simplify its entry cal economy. However, in order for that to become a and clearance processes, digitize its entry pro- long-term prospect, a number of investments and pol- cedures, reduce high entry fees and inconsistent icy recommendations, which are outlined in Section registration standards, which can be deterrents 11, should be made. for yacht tourists. Three scenarios have been developed for yacht • Legal Framework and Regulation: Like Croatia, tourism development in Cabo Verde, detailed in Cabo Verde should establish a comprehensive and the Recommendation Section, which all lead to clear framework for both charter operations and significant economic return for the country. The entry and registration for private use vessels. This three scenarios are introduced below: would help ensure the safety, security, and sus- tainability of maritime activities, as well as provide • Scenario 1 involves infrastructural development clarity for yacht operators. in one existing marina, Marina Mindelo, as well as the implementation of all national-level policy • Marketing and Promotion: Grenada’s “Pure Gre- and program recommendations outlined in this nada” campaign and Croatia’s destination mar- report. The estimated revenue for this scenario is keting campaigns, both including participation $62M USD per year (which will grow year-on-year in key international yachting trade shows and as the number of vessels entering the country in- publication in key yachting magazines, have been creases), with a total cost of $22-25M USD overall successful in promoting their regions as yachting for all recommendations. destinations. Cabo Verde should invest in effec- tive marketing strategies to raise awareness about • Scenario 2 involves infrastructural development its yachting opportunities and attractions. in both Mindelo and Sal, as well as the implemen- tation of all national-level policy and program rec- • Tax and Incentives: Grenada’s tax exemptions and ommendations outlined in this report. The esti- customs duty reliefs have attracted tourism, in- mated revenue for this scenario is $135M USD per cluding yacht tourism. Cabo Verde should consid- year (which will grow year-on-year as the number er similar incentives to make its destination more of vessels entering the country increases), with a appealing to yacht owners and operators. total cost of $35-40M USD overall for all recom- mendations. • Infrastructure for Yacht Maintenance: Croatia’s tax cuts for boat owners and incentives for over- Cabo Verde Yacht Tourism Study 2023 11 Executive Summary • Lastly, Scenario 3 involves infrastructural de- after the timeline, provide more context on the ideal velopment in Mindelo, Sal, and Santiago, as well steps for Cabo Verde. as the implementation of all national-level policy and program recommendations outlined in this Cabo Verde’s yachting sector plans include short- report. The estimated revenue for this scenario is term efforts to stimulate local and foreign interest $146M USD per year (which will grow year-on-year as well as to develop infrastructure in Mindelo, as the number of vessels entering the country in- medium-term focus on developing infrastructure creases), with a total cost of $55-60M USD overall in Sal and Santiago, and long-term goals to accom- for all recommendations. modate larger vessels and promote local businesses, with six identified focus areas for development. In the Below, a depiction envisions the ideal timeline short term, over the next 1-3 years, the focus is on stimu- for Cabo Verde if Cabo Verde were to implement lating Cabo Verdean participation in the yacht sector and Scenario 3 (all recommendations outlined in this laying the groundwork for foreign interest. Additionally, report). The timeline is broken into the urgent (12 initial investments in international trade shows and key months), short-term timeline (now until 3 years), me- infrastructure projects, along with tax and charter easing dium-term (3-5 years), and long-term (5+ years). The legislation, aim to attract international interest in yacht- timeline sees Cabo Verde developing its yacht tourism ing in Cabo Verde, particularly for sailing vessel fleets and industry organically, first aimed at driving local un- fishing yachts in São Vicente, setting the stage for growth. derstanding and ownership of the industry and slowly In the medium term (3-5 years), a government-led promo- growing international appeal to Cabo Verde for mo- tional campaign is planned to establish Cabo Verde as a tor and sail yachting. This was developed by closely recreational boating destination, further boosting inter- understanding the current gaps in Cabo Verde and national yacht charter operations, especially for eco-tour- forecasting demand. The recommendations, included ism. Finally, in the long term (5-8 years), Cabo Verde Table ES1: Ideal Timeline for Cabo Verde Stimulus Action Effect Comment URGENT: NEXT 12 MONTHS Launching local training, infra- Stimulate Cabo Verdean partici- Citizens get “first bite of the apple” Development of a “boating cul- structure projects, legislation for pation in the sector through boat and lay the groundwork for growth ture” takes place, people develop yachting, local employment, and ownership and lay the groundwork in the sector by providing fishing skills to service the sector’s needs. digitizing entry forms. for foreign interest in Cabo Verde trips, day excursions, etc. SHORT-TERM: NEXT 3 YEARS Initial investment in participation Stimulate international interest in International customers will begin This will begin to grow the at an international tradeshow. yachting in Cabo Verde to understand the product of demand while also preparing local Continue key infrastructure Cabo Verde. Cabo verde can begin legislation and infrastructure for projects in Sao Vicente with clear to focus on sailing vessel fleets international customers. outcomes that international and races (20-40 foot sailing yacht customers are looking for. vessels) as well as fishing yachts Implement tax and charter easing (10-20 foot sailing vessels) in Sao legislation. Vicente. MEDIUM-TERM: 3-5 YEARS Government launches a robust, Stimulate international yacht We can expect an increase in traf- At this stage, governmant can sustained promotional campaign charter operations in Cabo Verde. fic for motor vessels from 40’ to prepare investment incentives to put Cabo Verde on a recreation- 60’ (12-18 meters) to Cabo Verde to drive and attract marina al boating map. This includes drawn by interests and passions developers. highlighting policy changes, new for eco-tourism. Much of this infrastructure in Sao Vicente and traffic will be chartered, to Sal. Sal, and benefits for international yacht brokers and managers to do business in Cabo Verde. Cabo Verde Yacht Tourism Study 2023 12 Executive Summary Stimulus Action Effect Comment LONG-TERM: 5-8 YEARS Finalizing infrastructural changes Chartered vessels of more than 60 The yachts consume large At this stage, Cabo Verde will in all islands. Cabo Verde becomes feet (18 meters) and more begin amounts of fuel and require become a mature yachting des- more well-known as an attractrive to arrive. This traffic is entirely various services like laundry, trash tination. Yachts are encouraged on-shore aspect of the tourism chartered where travellers spend disposal and provisioning which and incentivized to remain in the product responds to increasing 1-2 weeks in the destination. The stimulate local businesses. Their destination for up to a year and business coming by sea. activity can be focused on Sal, high-end passengers shop, dine have their charter groups flown Sao Vicente, and in Tarrafal in and explore the destination. in. During that year all the yachts Santiago with the right infra- needs are supplied locally. structure projects having been implemented. anticipates attracting chartered vessels over 60 ft, with 6. Encouraging investment in yachting to inject cap- the infrastructure in place to support them and promote ital into the sector, drive further development, and local businesses, ultimately establishing the country as a maintain competitiveness in the global yacht tourism mature yachting destination where yachts remain for ex- market. tended periods, bringing economic benefits. In order to unlock this potential, and while general tourism product Recommendations are listed below at a high level. They development takes place, researchers chose six main focus are described in detail in the Recommendations section areas for Cabo Verde. The public and private sector must of this report, where information is provided for each focus on selected areas in order to develop a stronger op- recommendation on proposed owner, timeline, feasi- erating environment for yachting. The opportunities are: bility, profitability (for investments, specifically) and sustainability measures. 1. Enhancing local capacity and skills specific to yacht tourism needs, providing employment opportunities for the local workforce in Cabo Verde. 2. Developing essential infrastructure in strategic locations like Mindelo, Sal, and São Vicente to accom- modate the increasing demand for yacht tourism and ensure a smooth flow of vessels and tourists . 3. Simplifying vessel entry and registration procedures and standardizing yachting policies to streamline administrative processes and make Cabo Verde more attractive to yacht enthusiasts. 4. Establishing stronger public-private partnerships and fostering local advocacy for yachting to create a conducive environment for sustainable growth in the yacht tourism sector, aligning the interests of gov- ernment and private stakeholders. 5. Promoting, marketing, and branding Cabo Verde as a premier yacht destination among key customer seg- ments to raise the country’s profile and attract more yacht tourism enthusiasts worldwide. Cabo Verde Yacht Tourism Study 2023 13 Executive Summary Table ES2: Recommendations Opportunity 1: Building Local Capacity and Skills Recommendations Geography Priority Establish a career development or internship program within Cabo Verde’s EMAR to channel graduates into significant roles at institutions like Marina Mindelo, Onave Shipyard, or Cabnave National High (1-3 years) Shipyard, as well as with repair firms (like BoatCV in Mindelo) or charter companies operating in Sal or São Vicente. Increase awareness of Cabo Verde’s EMAR program in São Vicente, Sal, and Santiago, highlight- National High (1-3 years) ing yachting’s economic benefits, salaries, and potential revenue. Establish a government-sponsored scholarship program to promote yachting skill development, Long-term (5-10 National enhance Cabo Verde’s reputation as a yachting destination, and boost economic development. years) Opportunity 2: Developing infrastructure to support increased demand across Mindelo, Sal, and Santiago Recommendations Geography Priority Implement wastewater and sewage disposal regulations in ports and marinas to ensure environ- mental sustainability, meet international standards, and protect coastal ecosystems; review and National Urgent (12 months) gap analysis of existing regulations through ENAPOR or IMP recommended. Amend Decree Law 37/2015 and Decree Law 2/2020 to define charter and privately-owned foreign vessel operations, setting safety standards, maintenance requirements, and client National High (1-3 years) management responsibilities. Develop policies on boat movement, seizure, and impoundment, addressing the liabilities associ- National High (1-3 years) ated with boats docked at locations like Marina Mindelo. Reassess duty on vessel parts to enhance yacht tourism, fostering a local supply of spare parts National High (1-3 years) and a cost-effective maintenance and repair ecosystem. Implement a breakwater at Marina Mindelo, based on an engineering feasibility study and envi- São Vicente High (1-3 years) ronmental impact analysis, with short-term development encouraged. Enhance Marina Mindelo’s services, including a TravelLift for repairs and expanding capacity by São Vicente High (1-3 years) 100 slips, to distribute repair workload and accommodate more boats. Establish an enforcement policy to prevent debris accumulation in the marine environment and National Moderate (3-5 years) promote sustainable material reuse. Develop a recreational center near Marina Mindelo, with plans for immediate, short-term, and São Vicente Moderate (3-5 years) long-term development to attract and engage yacht customers. Implement an enforcement policy against invasive species, including mandatory inspections, National Moderate (3-5 years) biosecurity measures for recreational vessels, and establishing inspection points. Cabo Verde Yacht Tourism Study 2023 14 Executive Summary Opportunity 2: Developing infrastructure to support increased demand across Mindelo, Sal, and Santiago Recommendations Geography Priority Conduct a feasibility study for a new marina on Sal Island to assess environmental, engineering, Sal Moderate (3-5 years) and market factors. Expand repair services on Sal Island to reduce dependence on Mindelo’s services, involving Sal Moderate (3-5 years) partnerships with BoatCV and others for collaboration with ENAPOR or Port of Palmeira. Develop a courtesy float at Santa Maria’s existing pier, with policies for embarkation fees to Sal Long Term (5-8 years) maintain and gradually expand the facility, benefiting users in both Palmeira and Santa Maria. Perform a comprehensive carrying capacity analysis in Tarrafal, Santiago, to determine its Santiago Long Term (5-8 years) capacity for tourists, fishing boats, and yachts, following the recent tourism development plan. Opportunity 3: Easing vessel entry, registration, procedures, standardizing policies across island/type of vessel Recommendations Geography Priority Develop a single online facility, an online portal whereby all necessary procedures and payments National Urgent (12 months made can be done. Increase awareness of Cabo Verde’s EMAR program in São Vicente, Sal, and Santiago, highlight- National High (1-3 years) ing yachting’s economic benefits, salaries, and potential revenue. Modify tax policies for certain vessels to improve Cabo Verde’s yachting business environment, drawing inspiration from Seychelles’ dramatic yacht increase in 2023 and Costa Rica’s exemp - National High (1-3 years) tion from various taxes on yachts. Opportunity 4: Building Stronger Public-Private Partnership and Local Advocacy in Yachting Recommendations Geography Priority Review and document government role and responsibilities in charter vessel as well as pri- National Urgent (12 months vate-use vessel entrance, licensing and registration Establish Recreational Navigation Council (which has been in progress already) to guide local National High (1-3 years) advocacy in marine—and yachting—tourism. This Council should consist of private and public sector stakeholders. Create a “Prior to Arrival” program for vessels, featuring a centralized information system or a clear document detailing all yachting services, facilities, and activities in Cabo Verde. Establish a standard set of procedures and requirements for yacht operators and crew to streamline entry, National High (1-3 years) comply with customs and immigration laws, and improve security and safety in Cabo Verde waters. Cabo Verde Yacht Tourism Study 2023 15 Executive Summary Opportunity 5: Targeted Marketing for Yacht Decision Makers Recommendations Geography Priority Invest in participation—and later, sponsorship, in a key charter boat show. National High (1-3 years) Partner with targeted publications for yacht brokers and captains. National High (1-3 years) Launch a collaborative boating and yachting campaign to target luxury charter brokers and man- agement companies in Europe that includes participation in multiple international trade shows, National Moderate (3-5 years) trade publications, and familiarization trips. Opportunity 6: Encouraging investment in yachting Recommendations Geography Priority Establish incentive regimes for maritime projects, similar to Cabo Verde’s R&D incentives in National High (1-3 years) science and technology, including tax deductions for eligible maritime-related expenses. Implement a targeted employment policy in yacht tourism, aiming for over 60 percent local hir- National High (1-3 years) ing to boost job creation, reduce unemployment, and enhance economic stability in Cabo Verde. Develop a maritime investment policy through Cabo Verde TradeInvest, focused on nautical and marine investments, seeking input from maritime experts and relevant government bodies like National Moderate (3-5 years) the Ministry of the Sea and ITCV. Initiate maritime legislation information dissemination programs to educate about the legal and National Moderate (3-5 years) regulatory framework for nautical tourism. Formulate and actively promote a policy framework for the regulation, development, and man- National Moderate (3-5 years) agement of marinas and related amenities in Cabo Verde. With strategic policy, infrastructure marketing and development enforcement, infrastructure development and marketing, Cabo Verde can capture the momentum around yachting. Cabo Verde Yacht Tourism Study 2023 16 Section 1 Introduction The report seeks to unlock Cabo Verde’s yachting sector potential for tourism and private investment, enhancing competitiveness and economic growth through policy and infrastructure improvements. The yachting tourism industry presents an opportu- nity for Cabo Verde to unlock economic growth and international recognition. The objective of the as- signment is to produce a complete market opportunity analysis on the potential of the yachting sector in the development of the nation’s tourism industry as well as uncover the potential for private sector investment. This study can guide Cabo Verde’s strategy towards en- hanced competitiveness in the global yachting market. By analyzing trends, evaluating current infrastruc- ture, understanding traveler preferences, and bench- marking against successful competitors regionally and globally, recommendations have been developed to guide Cabo Verde’s public and private sector in poli- cy and investments to develop the yachting industry. These recommendations all have significant potential economic impact. Through targeted investment rec- ommendations and policy enhancements, Cabo Verde can create an environment that entices yacht owners, operators, and tourists; Thereby fostering econom- ic growth, creating job opportunities, and generating sustainable revenue streams. Cabo Verde Yacht Tourism Study 2023 17 Section 2 Methodology The methodology of the project involved three also involved demand forecasting—both as is and with phases of research. Further information about the additional investing—for Cabo Verde over the next 10 methodology may be accessed in Annex I. years. This was accomplished by employing historical growth rates, using data from MarineTraffic, and build- Phase 1: Current State Assessment ing on insights from aforementioned benchmark mod- els to determine the yachting sector’s growth potential In Phase 1, it was assessed yachting infrastructure, in Cabo Verde under different investment scenarios. It policy, and investment in Cabo Verde through site was designated two sectors to survey for further data: visits, interviews, and surveys, forming the basis for luxury yacht brokers, and rallies and fleets organizers key recommendations in the Current State Analy- and participants, given the significant share that these sis. There were focus on understanding the current two segments have in the current market. Survey re- state of yachting infrastructure, policy, and investment sults of these two audiences were then analyzed and in- projects. On a week-long travel mission to three islands sights related to the sentiment of these yacht customers in Cabo Verde (Santiago, São Vicente, and Sal), the re- towards Cabo Verde, and the opportunities they see for searchers performed site visits at five locations (Port of Cabo Verde in yachting, were documented. Tarrafal, Santa Maria, Palmeira, Marina Mindelo, and Porto Grande). During this mission, roundtables and in- Phase 3: Competitive Analysis terviews were held to gain further insight from two pri- ority audiences: government entities and private sector In Phase 3, a competitive analysis was conducted businesses. For the latter audience, it was also admin- to assess Cabo Verde’s yachting position relative istered a survey in Sal and São Vicente where feedback to competitors, resulting in findings that contrib- was elicited on perceptions and actual economic impact uted to the Recommendations Report. A compet- of yachting. See Annex I for travel mission details. All of itive analysis was conducted of Cabo Verde’s position the travel mission findings were analyzed and includ- as a yachting destination relative to both regional and ed in the Current State Analysis section, forming the global competitors, namely Croatia, Canary Islands, foundation of key recommendations for Cabo Verde to and Grenada. The focal points of comparison included: take advantage of the yacht tourism market. a regulatory framework, safety regulations, licensing procedures, recreation and on-land amenities, and lo- Phase 2: Market Analysis cation advantages (see Annex VI). The competitive re- search was derived from desk research, yacht pattern In Phase 2, researchers analyzed yacht data for Cabo tracking, and trend analysis reports. By incorporating Verde, conducted demand forecasting, and sur- insights from these competitors, the study ensured a veyed key market players. To develop an understand- comprehensive competitor analysis for Cabo Verde. ing of key market segments for yachting for Cabo Verde, researchers analyzed a decade’s worth of leisure vessel data for key ports from vessel historical data source MarineTraffic, focusing on critical variables. This data has also been compared to parallel data for Seychelles and Costa Rica, also provided by MarineTraffic, and insights were derived from that comparison. Phase 2 Cabo Verde 18 Yacht Tourism Study 2023 Section 3 Market Overview and Trends 3.1. Introduction to the Sector Vessels are defined by type of boat, size, hull design and purpose. Below is an overview of the types of yachts and their typical sizes: Motor Yacht Sportfish Yacht Flybridge Yacht Catamaran Sailing Yacht Superyacht Table 3.1: Yacht Sizing Boat Type Definition Typical Sizes (Lengths) Vessels powered by internal combustion 9 to 18 meters (30 to 60 feet) for smaller models; over 30 meters (100 feet) Motor Yacht engines, offering luxury amenities. for larger ones. Specialized for sportfishing, equipped Sportfish Yacht 12 to 21 meters (40 to 70 feet) on average. with fishing amenities. Features an elevated outdoor helm Flybridge Yacht 12 to 30 meters (40 to 100 feet) or more, depending on the model. station for panoramic views. Multi-hulled vessels with stability, ideal 9 to 15 meters (30 to 50 feet) for smaller catamarans; up to 21 meters (70 Catamaran for motor or sail yachts. feet) for luxury models. Propelled primarily by sails and wind, 9 to 15 meters (30 to 50 feet) for smaller sailboats; over 30 meters (100 feet) Sailing Yacht offering eco-friendly sailing. for luxury sailing yachts. Epitome of luxury, offering extensive Over 40 meters (130 feet) for most superyachts, with some exceeding 91 Superyacht amenities and accommodations. meters (300 feet). Yachting tourism encompasses three main the responsibilities of ownership. It involves segments: transit yachting, charters, and private renting yachts for periods ranging from a few days use yachting. to several weeks. • Transit Yachting: Involves using yachts or boats • Private Use Yachting: Pertains to private yacht for the purpose of traveling through waterways owners who use their boats for personal leisure, often to reach a specific destination, with occasional on weekends or during vacations, with the possibility stops along the way. For example, the Europe to of occasional charters. This also includes cruisers Caribbean Transit Route, or the Atlantic Rally for focused on exploring specific destinations or places of Cruisers (ARC+ route). interest while yachting, rather than simply being on the water for the sake of it. • Charters: This segment allows individuals to enjoy sailing or cruising on private yachts without Cabo Verde 19 Yacht Tourism Study 2023 Section 3 3.2. Global Nautical Tourism Industry Overview The global yachting industry, encompassing var- ious segments, has experienced growth due to increased recreational tourism, enhanced digital marketing, rising social media usage, and grow- ing interest from high-net-worth individuals post- Covid15. Research and Markets reported that in 2022, the global yacht sector was valued at $9.1 billion. This valuation takes into account the total number of po- tential customers and the total revenue generated Source: Fortune Business Insights from these transactions. Forecasts predict the market will reach $13.7 billion by 2030, reflecting a Compound In 2023, the Mediterranean and Caribbean are still Annual Growth Rate (CAGR) of 5.2 percent16. popular for yacht charters, but there is a slight decrease in demand for traditional destinations in these regions, with charterers seeking new destinations, providing an opportunity for Cabo Verde20. Many vessels spend the European summer in the Mediterranean and the European winter in the Caribbean. Likewise, the majority of the boats that are possible to introduce to Cabo Verde are mostly in the lead-up to Christmas as they tend to transit between November and December to arrive in the Southern Ca- ribbean by the end of the year. However, comparative- ly between 2022 and 2023, there is a downward trend on traditional destinations in the Mediterranean and Caribbean, according to The International Yacht Com- pany (IYC) Charter Report 23. Source: Research and Markets Until October, the IYC 2023 data revealed a slight- The global yacht charter market has demonstrated ly decreased demand, by 2 to 3 percent, for char- growth, specifically, with yachts ranging from 7m ters in European and Caribbean destinations. This to 15 m (20 to 50 ft) and above 15 m (50 ft). Further- means that U.S. and European charterers are looking more, the segment of yachts between 24 to 45 m (75 for new touristic places, leaving room for Cabo Verde to 150 ft) is projected to grow at a CAGR of 5 percent to position itself and its services, often described by through 202717. In terms of propulsion, motor-driv- yachting experts as a “hidden gem.” Depending on the en yachts were dominant, capturing an 80 percent origin of the charterer, global charters typically last market share in 202018. Furthermore, yacht charters one week on average. At some point in the develop- represented 30 to 35 percent of the entire yachting ment of a destination, yachters can choose a destina- industry in 202019, presenting an opportunity for re- tion to keep their vessels in for the long term. gions like Cabo Verde to tap into both the 7 to 15 m (20-50 ft) and above 15 m (50 ft) charter markets. Average spending per week of yacht visitors by re- gion may vary. Motor yacht rentals in the Mediterra- nean are priced between $31,541 and $1.6 million per week, excluding additional expenses. Similarly, rent- 20 Section 3 Cruising Traffic in 2022. Source: IYC ing luxury sailing yachts in the Mediterranean can emphasize the importance of establishing and nur- cost anywhere from $20,491 to $532,784 per week, not turing relationships with yacht owners, brokers, char- including extra expenses22. Luxury superyacht char- terers, and captains who are in search of new experi- ters in the Caribbean can vary in price from $30,000 ences and are targeted through marketing strategies. to more than $1,000,000 per week, with additional Further information about the key components of the expenses covered by an advanced provisioning allow- yacht industry, their segments, size of boats, and ne- ance (APA). Meanwhile, the price for a crewed yacht gotiation may be accessed in Annex II. charter begins at $2,200 per person, assuming a group of six charter guests on a yacht featuring three guest cabins. Cabo Verde’s nautical tourism industry can benefit from yacht migration and rallies, offering opportuni- ties for extended stays and establishing relationships with yacht industry stakeholders through marketing. There is an opportunity to increase dwell time in Cabo Verde during this time or even keep yachts in for the long term. Moreover, rallies such as ARC+ and Ocean Race have expressed increasing interest from rally participants in coming to the territory. These trends 21 Section 4 National-Level Current State Analysis Cabo Verde was analyzed at a national level, with specific assessments to follow for Santiago, São Vicente, and Sal. 4.1 National-Level Nautical Tourism Analysis to oceanographic and fisheries research, particularly in areas like Marine and Fisheries Biology, Aquaculture, Driven by consistent growth in demand by and Fishing Technologies. The School of the Sea European vacationers, tourism has emerged as (Escola do Mar - EMAR) offers technical training and the most dynamic and fastest growing sector of professional updates for industry workers, operating Cabo Verde’s economy. In 2023, the total sector both in Mindelo and Santiago. EMAR provides courses contribution to Cabo Verde’s GDP was 34 percent (USD ranging from Naval Construction to Recreational 700.3M; CVE 73.4B) and it is expected to achieve 43.4 Navigation, supporting the luxury yacht market. Lastly, percent of GDP (USD 1,253.1M; CVE 131.4B) by 2033. the Higher Institute of Marine Engineering and Sciences This means a CAGR (2023-2033) of +6 percent and an (ISECMAR), established in 1996 and headquartered in economic CAGR (2023-2033) of + 3.4 percent23.1In 2022, Mindelo, serves as a high-level training institution, the country welcomed 835,000 tourists, exceeding the offering diverse courses and research opportunities resident population of 587,92524. The islands of Sal and in maritime engineering and sciences. Plans are in Boa Vista combined account for roughly 90 percent of progress to establish a training school in Mindelo, all visitors. However, Cabo Verde’s dependence on a few further enhancing the region’s marina and port international conglomerates limits diversification and development. This strategic investment in education heightens vulnerability to external shocks25.3 contributes to the economic growth and development of Cabo Verde. Yacht tourism is relatively new in the country. The primary demand for yacht tourism in Cabo Verde stems Cabo Verde faces challenges in its charter yacht from participants in regattas and boat races, including industry and a critical lack of potable water; however, the ARC and Ocean Race, based on interviews with there is a growing trend in excursion rentals in Marina Mindelo and the IMP. In particular, the ARC+ the Marina Mindelo area. A review of the charter rally is growing in popularity as a more relaxed and companies in Cabo Verde reveals that there are only a sociable journey to the Caribbean.264 handful of yachts available, either self captained or with crew. This may be due to high cost of market entry, lack Cabo Verde has established three educational of infrastructure, few sheltered ports, difficulty with institutions to meet maritime industry labor anchorage, proximity to other locations, difficulty with demands, although technical limitations and a holding, lack of professionally managed cluster fleet, single marina in Mindelo are growth challenges. and lack of support services. Notwithstanding, there is Cabo Verde has strategically established three a trend towards excursion rental including full- or half- educational institutions to meet the demand for day with activities. Themes such as “sail around the skilled labor in this industry. The Institute of the Sea islands” emerge as the more popular offering and while (Instituto do Mar - IMar), founded in 2019, is dedicated some are yachting experiences, many are not but remain Cabo Verde Yacht Tourism Study 2023 22 Section 4 critical to establishing a recreational foundation for companies (5.6 percent). nautical tourism in Cabo Verde. Further illustrating the current state of yachting in Cabo Verde, MarineTraffic Local businesses in Cabo Verde view potential reveals that on a daily basis, there are only a limited yacht sector growth opportunities and emphasize number of pleasure crafts present in Cabo Verde. the need for advocacy, public-private dialogue, These are mainly concentrated in the Marina Mindelo education, and infrastructure improvement. area with tours and excursions as the primary activity Qualitative findings show that these local businesses offered by these vessels. A majority of these boats are see great potential and some challenges in developing sail boats as opposed to motorized boats27. Since 2020, yacht tourism. They believe yacht tourism can benefit the country has contended with the over-dragging of the Cabo Verde economy, despite disruptions from their coast58 due to the increasing demand for sand COVID-19. Since the pandemic, the sector is showing for construction29. While this currently does not seem an upward trend, and many see the Ocean Race as an to affect nautical tourism, the local government is opportunity for growth. Challenges highlighted by concerned about the impact of this process on the survey responses include attracting more yacht traffic natural environment30. More challenging to the overall to locally owned businesses, ensuring a high-quality development of the country’s tourism industry is the experience, and promoting sustainability for motor lack of potable water within the current context of yachts. Businesses also emphasize the need for advocacy, severe drought exacerbated by a lack of systematic public-private dialogue, infrastructure enhancement, rainfall in recent years. This is critical as lack of potable and local skills development in yachting. There is a water will prevent yachts from coming to Cabo Verde31. need for more education about the economic benefits of yachting. Further qualitative and quantitative insights Local businesses were surveyed in Cabo Verde to from the survey may be found in Annex III. assess the potential and economic impact of yacht tourism, focusing on services, challenges, and Nautical tourism in Cabo Verde holds great recommendations for its development. Additionally, potential due to its location and commitment the context of the local business ecosystem and its to tourism, but requires investment in support interaction with yacht tourism in the destination infrastructure. Nautical tourism on the islands is constitutes a pivotal aspect for analysis to ascertain currently underdeveloped but has high potential due to the viability of nurturing the yachting industry in its geographic location, natural conditions and overall Cabo Verde. The survey questionnaire is available in commitment to tourism as an engine of economic Annex III. It examined the services or amenities these development in the country, promoting political and establishments offer to cater to yacht tourists and social stability32. There emerges an opportunity to sought to identify challenges faced in accommodating capture marine traffic crossing the Atlantic on their yacht tourists. Lastly, the survey aimed to collect way to the Caribbean or South America. However, to recommendations and suggestions for the government continue the development of the nautical sector and and relevant authorities to promote and develop yacht in turn the yachting sector, investment is required to tourism, along with assessing the financial impact of build a network of support infrastructures to capture the Ocean Race on these businesses. A total of 18 local a portion of the Atlantic crossing market or the luxury businesses completed the survey including hotels (27.8 European charter market. percent), restaurants (16.7 percent), charter companies (16.7 percent), dual hotels and restaurants (11.1 percent), art crafts companies (11.1 percent), tour operators (5.6 percent), boat repair shops (5.6 percent), and real estate Cabo Verde Yacht Tourism Study 2023 23 Section 4 4.2 National-Level Policy Analysis policies aimed at streamlining the entry procedures for yachts into the country, regulating crucial operational Cabo Verde’s nautical tourism policies are processes, and enhancing the enforcement of pre- fragmented, leading to complex processes and existing policies. Details regarding the prevailing enforcement challenges; Streamlining and national-level policies, encompassing customs, improving enforcement are recommended. Upon immigration, safety, and licensing, are provided in review of current national level policy, it is clear that Annex III.I for further reference. Cabo Verde has a foundation of policy in defining and governing nautical tourism. Nonetheless, the Below is a summary of important policies for the involvement of multiple agencies in Cabo Verde’s development of yacht tourism in a destination. Two maritime policies signifies a fragmented jurisdiction, tables are included: the first one lists policies critical leading to intricate processes and challenges in to yacht tourism development that Cabo Verde already enforcement. Streamlining responsibilities and has in place, and the second one lists critical policies initiating quarterly inter-agency meetings can foster that Cabo Verde does not have in place. consistency and bolster cooperation, simplifying regulatory compliance. For that reason, the focal point of this analysis resides in the potential revisions of Table 4.1 Policy requirements for a yacht destination and what Cabo Verde has in place Important Policies for the Development of Yacht Tourism in a Destination Responsible government agency POLICIES THAT CABO VERDE CURRENTLY HAS ALREADY IN PLACE Requirement for boaters to have a valid license and/or education certificate to operate a IMP vessel or a personal watercraft (PWC) Require all vessels to adhere to international safety standards and have updated safety IMP - 1488 I SÉRIE — NO 46 equipment on board. Establishing watercraft rules to regulate the speed, noise, operation, or zoning of vessels IMP in specific areas of the destination’s waters. Policies to identify and protect marine areas or sanctuaries to conserve biodiversity and ENAPOR/IMP sensitive ecosystems. Policies to promote sustainable fishing practices and enforce regulations to prevent DNAP overfishing. Policies that define responsibilities for maintenance of clear waterways and DNAP/DNA infrastructure. Policies that define areas of responsibility for emergency response plans for maritime accidents and natural disasters. Policies that require vessels to have adequate safety DNAP equipment and provide training for crew members. Cabo Verde Yacht Tourism Study 2023 24 Section 4 Important Policies for the Development of Yacht Tourism in a Destination Responsible government agency POLICIES THAT CABO VERDE CURRENTLY HAS ALREADY IN PLACE Categorization of vessels (Category A and B, etc.) whether or not boats can cruise. Vessel registration and titling requirements to identify and track vessels operating in the Yes Portaria 40/2023 destination’s waters. Foreign Vessel Clearance, Procedures for foreign vessels Yes Decree-Law No. 37/2015 Policies that govern standards in place for a vessel to be in place for public transportation Yes Decreto Lei 27/2016 (Cruises) Table 4.2 Policy requirements for a yacht destination and where Cabo Verde stands Important Policies for the Development Opportunity for Cabo Verde of Yacht Tourism in a Destination POLICIES THAT CABO VERDE DOES NOT HAVE IN PLACE Incentives offered by government to attract businesses to invest in marina development, yacht Cabo Verde TradeInvest does have tourism-related investment policies, which pro- infrastructure, or charter companies to increase vide incentives for “resorts and facilities” none are specific to the maritime sector. economic activity Policy to govern marina development and related Cabo Verde needs to create a policy framework with stakeholders like ENAPOR, ITCV, amenities and GDT to regulate and manage marinas and related amenities. Lowering customs duties, taxes, and fees for yachts could enhance Cabo Verde’s Relaxation of customs duty, taxes and moderation of yacht tourism, potentially raising government income. This approach might attract fees on yachts more yacht businesses and tourists, boosting taxable economic activities. Promoting over 60% local employment in yacht tourism boosts national jobs, cuts Employment policy to govern ratios between local foreign labor reliance, and spurs local investment. It aids socio-economic growth and foreign workers (60%, in other destinations) and skill development, requiring collaboration for policy success. A policy around wreckage can help Cabo Verde avoid the accumulation of debris in Policy around management of wreckage the environment and reuse these materials in a sustainable way. Urgent regulations for wastewater and sewage disposal in ports and marinas are Wastewater and sewage disposal in regulations in vital to maintain environmental sustainability and meet international standards, ports and marinas preventing marine pollution and protecting coastal ecosystems' health. Decree Law 37/2015 and 2/2023 mention leisure vessels but lack specific definitions Policies that govern how a charter functions and for charter companies. There is a chance to refine these laws, clarifying charter number of passengers that the vessel can carry, companies’ roles, licensing, passenger limits, payment, and charter tourists’ stay payment required and length of stay. duration. Decree Law 37/2015 and 2/2023 discuss leisure vessels but do not define privately Policies that govern terms under which private- owned foreign yachts. A sea balcony initiative to link all leisure vessel services owned foreign yachts can remain in the country, and (charter companies and private yachts) including titles, inspections, certification, for what time, as well as taxes and fees are applied. and registration, and other maritime matters, involving the Ministry of the Sea, IMP, and ITCV, is proposed. Carry out a review of the institutional framework for nautical tourism with a focus on Policies to reinforce institutional capacity, roles and the licensing requirements for activities inherent to nautical tourism - namely the responsibilities in leisure vessels and governance licensing of water sports schools, yachting, sport fishing operators, diving centers, maritime ecotourism excursion operators, boat trips, among others (ITCV/IMP). Cabo Verde Yacht Tourism Study 2023 25 Section 4 Important Policies for the Development Opportunity for Cabo Verde of Yacht Tourism in a Destination POLICIES THAT CABO VERDE DOES NOT HAVE IN PLACE Policies governing how boats are moved (Marina Such a policy can help Cabo Verde avoid concentration and management of Mindelo, liabilities involved), seized or impounded. abandoned boats Strengthen the capacities of safety and rescue institutions by providing them with the human and material resources necessary to ensure that nautical activities are Policies around training Standards carried out in accordance with the rules of safety for people and goods, care and preservation of the environment. This can be governed by IMP. Implement information programmes to attract more investments and promote blue Policy that will encourage local ownership and employment. This should be complemented by the creation of an advisory body to investment in the industry (tax breaks, incentives) support companies (ITCV, Tourism Chamber, Cabo Verde TradeInvest) Laws to prevent the spread of aquatic invasive Cabo Verde’s sustainable tourism strategy needs to tackle invasive species risks from species that can harm the destination’s ecosystem, yachts. Yacht movement can introduce harmful species, impacting the environment undermine the economy, and impair recreational and leisure activities. Enacting laws and conducting inspections to curb this spread is activity. crucial for safe and enjoyable water-based experiences for yacht tourists. In analyzing nautical tourism policies in Cabo spare parts is crucial. Recommendations include Verde, six key opportunities were identified for the leniency in tax policies such as exemptions on development of the industry, all of which we delve into customs duties for materials and VAT reduction in the Recommendations section. on spare parts imports to support a sustainable maintenance infrastructure for yachts. 1. Tax Incentives: Tax policy reforms in Cabo Verde offer a chance to boost the local yachting industry. 5. Safety Regulations: Enforcing existing safety Learning from Costa Rica and Seychelles, extending regulations and developing new policies for vessel VAT exemption for vessels from six months to one security is essential. Investments in security year for yachts could stimulate growth, create jobs, infrastructure and clear emergency protocols and increase visitor spending. can enhance safety, enforce international safety standards, and promote Cabo Verde as a 2. Regulatory Clarity for Charter and Private responsible yachting destination. Yachts: The existing boating regulations need refinement, particularly for charter companies 6. Environmental Policies: Implementing stringent and privately-owned foreign yachts. By specifying policies on wreckages and invasive species is safety standards, licensing requirements, and necessary to preserve marine ecosystems and responsibilities, Cabo Verde can professionalize promote sustainable tourism. This effort requires services, attract more yachts, and ensure meticulous monitoring and the active engagement responsible tourism. of public, private, and academic sectors to drive effective policy change and ensure environmental 3. Streamlining Entry Processes: Simplifying protection as a cornerstone of the industry’s entry and registration for yachts and reviewing growth strategy. charter period extensions can make Cabo Verde a more attractive nautical destination, addressing In summary, Cabo Verde has strong tourism seasonal limits and VAT-related stay durations. foundations and natural conditions for nautical tourism, but regulatory and infrastructure 4. Customs and Duties: A reevaluation of duties on challenges need to be addressed. Cabo Verde Cabo Verde Yacht Tourism Study 2023 26 Section 4 already has a developed tourism market, which is a key activity for the country and plays an important role in its GDP composition. The territory possesses natural, market, and regulatory conditions for the full development of nautical tourism. This potential is already recognized through the establishment of institutions such as IMar, EMar, and ISecMar, aimed at training its population to work in the sector. However, the country still needs to refine certain regulatory and infrastructure sectors to unlock its true potential. Challenges include having only one marina, limited anchoring locations, bureaucratic customs and tax processes without incentives. All of these hinder charter companies from doing business in the country and contributing to the local economy. The recommendations provided have the potential to unlock nautical tourism in the country, providing Cabo Verde with the means to compete for tourists who might choose other destinations in the region, such as the Madeira Islands, the Canary Islands, or even established European or Caribbean destinations. In the upcoming sections, the opportunities will be addressed separately for Santiago, São Vicente, and Sal. Cabo Verde Yacht Tourism Study 2023 27 Section 5 Assessment of Current Status - Santiago, São Vicente, Sal An assessment of current yachting-related infrastructure in Cabo Verde was undertaken on the following three islands: Santiago, São Vicente, and Sal. Section 5. Assessment of Current Status - Santia- of Santiago are extensively cultivated for various crops. go, São Santiago holds historical significance as it was the first Within each island, a selection of ports, marinas, and of the Cabo Verde islands to be permanently inhabited. potential yachting sites were chosen as areas of focus. To this day, it remains the leading commercial hub wi- These included Tarrafal, Porto da Praia, Marina Min- thin the archipelago. The capital city, Cidade da Praia, delo, Porto da Palmeira, and Santa Maria. These desti- is located in the extreme southern part of the island nations were analyzed based on the following aspects: and serves as the seat of the government. location, approach, anchorage, facilities, servi- ces, and marina studies. Additionally, research and São Vicente, with an area spanning 227 square kilome- analysis were undertaken to determine current yacht ters34, features a predominantly hilly terrain. Howe- traffic in these locations using MarineTraffic data. All ver, there is an exception in the form of a low-lying of this information was amalgamated to determine the peninsula on the northeast coast and sand dunes ex- growth potential of each destination and inform re- tending to the south and east of Baia do Porto Grande. commendations for their development. It is within this area that Mindelo, the archipelago’s second-largest city, is situated. When viewed from the 5.1. Overview of Santiago, São Vicente, and Sal northeast at distances ranging from 25 to 30 nautical miles, the western hills seem distinct from the central Santiago is the largest Cabo Verde island with mass, which centers around the 774-meter-high Monte mountainous terrain and the capital Praia, while Verde. The summit of Monte Verde is often obscured São Vicente is characterized by hills and the city by cloud cover. of Mindelo, and Sal is known for its flat landsca- pe, popular beaches, and salt trade heritage—each Sal, the most northeasterly of the Cabo Verde islands, offer distinct features for potential yacht tourism spans an area of approximately 216 square kilome- development. ters, characterized by mostly low and flat terrain. Its highest point is Monte Grande (also known as Mon- Santiago stands as the largest island in the Cabo Ver- te Vermelho), which stands at 407 m in the far nor- de archipelago, with an expansive surface area of 991 theast. Sal is a popular destination for beachgoers with square kilometers33.6It surpasses the other islands in the main resort area being Santa Maria, located in the size. The terrain on Santiago varies, with much of its south. Beyond the beaches, Sal offers a history tied to central and northern regions being mountainous. The its salt trade heritage, and its inland landscape featu- island’s highest peak is Pico da Antonia, reaching an res unique and barren landscapes. elevation of 1392 meters. The lower slopes and valleys Cabo Verde 28 Yacht Tourism Study 2023 Section 5 5.2. Analysis of Key Locations The following table provides an overview of the analysis conducted on the key locations. Further information regarding each destination can be accessed in Annex IV. Table 11: Key Locations Santiago São Vicente Sal Tarrafal Porto da Praia Marina Mindelo Porto da Palmeira Santa Maria Image 1: Baio do Tarrafal Google Image 2: Port of Praia Diagram, Image 3: Marina Mindelo Image 4: Port of Palmeira Birds-Eye Image 5: Santa Maria Google Maps View ENAPOR Orientation View, ENAPOR Maps View Location Baía do Tarrafal, on Porto da Praia, at the Mindelo is the second- Porto da Palmeira, Santa Maria, 16 km the northwest coast head of a sheltered largest city in the situated on the west from Amilcar Cabral of Ilha de Santiago, bay, provides excellent archipelago. When coast, provides International Airport provides shelter from protection from various viewed from 25 to 30 reliable shelter from and 20 km from various winds. The town wind directions. The nautical miles to the northwesterly to Espargos on Sal Island, is located at the bay's historic part of the northeast, the western southerly winds, thanks is a top destination southeast, overlooking city, standing on a hills stand out from to the presence of a known for pristine a sand beach plateau 30 meters the central mass, breakwater positioned beaches, restaurants, surrounded by coconut above sea level to the which includes the to the northwest. shops, spas, and palms. It's a weekend north of the harbor, 774-meter-high Monte Two prominent wind more. Major hotel spot for Praia residents boasts grand churches, Verde, often hidden by generators serve as chains are present, and Santiago's main charming squares, clouds. markers for the village and international and tourist attraction. official buildings, and in the northwest, and national cruises stop a lively market. Urban a grouping of silver oil here. Once a fishing development extends storage tanks can be village and salt port, across the surrounding seen in the southeast. Santa Maria is now the lower terrain in all It is certified with the archipelago’s premier directions. ISPS Code and allows tourism spot, famous entry clearance to for windsurfing and a Cabo Verde. vibrant nightlife with numerous bars and restaurants. Cabo Verde Yacht Tourism Study 2023 29 Section 5 Santiago São Vicente Sal Tarrafal Porto da Praia Marina Mindelo Porto da Palmeira Santa Maria Approach Santiago’s coastline, Santiago’s coastline Mindelo, the entry Porto da Palmeira When approaching the steep with a 0.5M off- is mostly steep with a point for São Vicente, is is accessible during area from the south, ing recommendation, recommended 0.5M accessed via two deep daylight and feasible at navigators should iden- requires caution when offing.Entering during channels and provides night in good weather, tify a group of buildings approaching from the daylight is straightfor- protection from various with caution advised near the bay’s head south to distinguish ward, with no hazards winds, though westerly for a shoal near the as a landmark. It is Baia do Tarrafal from beyond 400 meters off- swells may occur. Mar- breakwater. important to maintain a Baia do Chao Bom. The shore. Entering at night iners should be aware distance of at least one Ponta Preta light, north is not recommended, of underwater hazards, nautical mile from Pun- of Baia do Tarrafal, is but if necessary, boats including wrecks near ta do Sinó, identified by notable for its location can use the “Cais the dinghy pontoon. a lighthouse positioned on a 30-meter high Novo” light, keeping it Approaching Ilha do inland. Navigators ledge against a hill between 286° and 031°. Sal, be mindful of its should also be aware rising to 369 meters. The city and quay have low-lying, haze-prone that visibility can be Safe bay entry requires ample ambient lighting. landscape, maintaining significantly reduced steering just south a 0.5-1 nautical mile during winter months of east and avoiding offing, with stronger due to the Sahara’s shallow areas near the currents under north- “bruma seca,” poten- shore, with typically east trade winds. tially making it difficult clear water. to locate landmarks. Cabo Verde Yacht Tourism Study 2023 30 Section 5 Santiago São Vicente Sal Tarrafal Porto da Praia Marina Mindelo Porto da Palmeira Santa Maria Anchorage Vessels can anchor in Yachts are advised to The anchorage is situ- The preferred anchor- Santa Maria offers 5-8 meter depths near anchor in the western ated in the northeast age for yachts is in the effective shelter from moorings on a sand and section of the harbor, corner of the bay, northeastern part of southwest to east winds rock seabed, needing between the two offering secure holding the harbor, with depths but experiences occa- caution and a tripline. jetties, with depths of 5 in firm sand and some ranging from 3 to 5 sional northeasterly Anchoring west of the to 6 meters, but caution mud. Depths in the out- meters over a bottom of swells leading to some mole in sandy mud is advised due to known er region of the anchor- sand and stones. While rolling. The recom- is stable but offers wrecks and water age gradually decrease the holding in this area mended anchorage is little swell protection. turbidity. Two anchors towards the beach, is variable, once an near the central pier, Using dual anchors is might be necessary where there have been anchor is securely set, but approach cau- recommended due to for better security. The reports of patches it is anticipated to hold tiously due to depth possible evening gusts. anchorage can get with less reliable well. The interior of the changes. Reliable Depart promptly in choppy in northeast holding. To counter the mole is consistently holding is found in northwesterly swells. trade winds. occasionally strong busy with cargo ves- depths of 5 meters or Dinghies may land on northeasterlies, which sels, ferries, and fishing more on sandy terrain. the beach or use mole Access to land is pos- can intensify to gale boats. Some yacht operators steps in big swells. The sible via deteriorating force (35-40 knots) in use a second anchor to count of moorings for steps on the southern gusts, generous scope There is a small quay stabilize against swells. local fishing vessels jetty or by landing on is advisable, preferably located in the northern has risen, with some the beach, which can employing chain. Water corner of the harbor Santa Maria is a prefer- beaching. be challenging during visibility in the area for dinghy storage. able choice when deal- surf conditions. Strong is relatively low, with However, visitors are ing with north-north- southerly winds in visibility often less than encouraged to exercise west swells, making August, September, 1 meter. consideration and it more suitable than and October can create use a long painter, as Palmeira, Mordeira, or hazardous swells, so it Additionally, Baia local residents use this Sal Rei for anchoring. is inadvisable to leave de São Pedro, quay for landing and Accessing the beach an anchored yacht un- located slightly over hauling their dinghies can be challenging due attended for extended five nautical miles ashore. It is important to surf, but ladders on periods during this southwest of Mindelo, to avoid obstructing both sides of the pier time. offers protection from their activities with and securing dinghies northwest to southeast inflatable dinghies on on the leeward side are winds. However, it’s short painters. available. No need for a important to note that watchman or minder in northeast winds may this area. channel down the wide valley, and swells can enter from the east. The optimal anchorage is situated off a small village at the eastern end of the black sand beach, providing depths of approxi- mately 10 meters with reliable holding. Cabo Verde Yacht Tourism Study 2023 31 Section 5 Santiago São Vicente Sal Tarrafal Porto da Praia Marina Mindelo Porto da Palmeira Santa Maria Facilities Tarrafal has no marinas This multifunctional Marina Mindelo can Established in 1986, Due to its inadequate or ports 35 , but accessi- port accommodates accommodate boats the Port of Palmeira infrastructure, boats bility issues have been various vessels, up to 50 meters, with has seen two expansion that anchor in this resolved, and environ- from freighters and a berth capacity of phases. In 2010, the region find little to re - mental sustainability container ships to bulk 145 36 , mainly serving pier was extended by supply their fleets, such measures are in place. carriers. It is among international clients. 30 meters, a 90-meter as water, electricity, However, local com- the few Cabo Verde It faces high demand, breakwater, RORO and fuel. The optimal munity involvement is ports certified under especially in November ramp, 2-hectare anchorage location is needed. A rural tourism the ISPS Code. The port and December, but is container area, 6900 close to the somewhat plan exists to attract features a fishing quay limited in accommodat- m2 RORO yard, and repaired pier situated various boats, includ- with a fish processing ing larger vessels due a container scanner in the middle of the bay, ing fishing vessels, unit and a 355-meter to weather conditions facility were added. without any infrastruc- alongside the marina passenger terminal. and lack of a breakwa- In 2015, a 115-meter ture. Vessels have to project, with the exact ter. The marina’s depth pier was built for larger head to ports with more investment unknown Recent expansion and was recently reduced ships. utility offers, like Porto but requiring local modernization (in 2014) due to nearby construc- de Palmeira, to refuel community integration extended quay no. 1 tion. The port also features and continue their for success. to 460 meters with a a 34-meter-long journey. depth of -13.5 meters. fishing pier, a 450 A new 8-hectare con- m2 sheltered storage However, with existing tainer park was added, area, and handles up to luxury hotel offerings, increasing capacity. 70,000 tons of cargo Santa Maria attracts The port has two RORO annually. However, the global tourists, partic- ramps, container lack of a designated ularly in upscale yacht weight control scales, marina in Sal Island tourism. warehouses spanning hinders yachting, 10,000 m2, and a con- prompting a feasibility tainer scanner building. study to address the Temporary refuge is issue. The absence of available in the new clear policies and a fee fishing harbor. system for infractions currently discourages In total, the port yacht owners from provides 1,132 meters anchoring in Sal Island, of berthing space underscoring the need with depths ranging for a marina. The Port from 3 to 13.5 meters. of Palmeira primarily It is enclosed by the caters to larger vessels, Santa Maria Islet and leaving smaller boats quays 01 and 02, each and recreational sailors with specific depth with unmet needs. capacities. Quays 03 and 04 primarily The harbor is capable handle domestic traffic of comfortably accom- with specific draft and modating more than length limits. 30 yachts, but it might give off a somewhat stark impression and occasionally experi- ence swell. Cabo Verde Yacht Tourism Study 2023 32 Section 5 Santiago São Vicente Sal Tarrafal Porto da Praia Marina Mindelo Porto da Palmeira Santa Maria Services Tarrafal is dominated Praia, Cabo Verde’s Marina Mindelo is the The real estate market The local real estate by local businesses, capital, serves as a cen- primary provider of es- in the area is active, market is vibrant, with with most hotels being tral hub with essential sential boat amenities, with a variety of proper- properties actively small, 3-star B&Bs services, maritime and offering electricity, wa- ties for sale, attracting sold, boosted by the and guesthouses, air transport, and quali- ter, diesel, and refuel- U.S. investors due to growing airline industry and lacking luxury ty medical care, though ing, with management the expanding airline and interest from U.S. accommodations. The it lacks businesses assisting in procure- industry and American investors, such as Municipal Market offers catering to the yacht ment and collaborating market entry. However, Hilton 37 and Riu38 . provisions and local market and high-end for laundry services. tourists often leave However, tourists often cuisine, but high-end accommodation. The Waste management Porto da Palmeira, leave Porto da Palmeira restaurants are absent. port provides a range is challenging, with which is focused on for more developed of marine services, maintenance and repair maritime trade, for tourist areas, with San- including docking/ primarily in-house nearby tourist-de- ta Maria, 20 km from undocking, equipment and collaborations veloped areas. Santa Sal’s capital, offering for loading operations, for specialized tasks. Maria, close to Sal’s diverse amenities and goods traffic manage - Client feedback empha- capital and near Porto hotel infrastructure. ment, towing, storage sizes the importance of Palmeira, offers a range Santa Maria is a luxury facilities, and energy, repair services. of hotel facilities and hotel hotspot, with water, and bunkering amenities, appealing to amenities like spas, services. international travelers casinos, and golf clubs. and sea arrivals It has medical facilities and offers boat tours, but lacks luxury yacht rentals for extended periods. Cabo Verde Yacht Tourism Study 2023 33 Section 5 5.2.1 Current Yacht Traffic gth of stay for visiting yachts is between one and two weeks. Data from Marina Mindelo shows that France In 2022, Santiago received 33 yachts around Porto and England contribute more than half of the vessels, da Praia, Mindelo hosted 1,130 yachts, and Sal re- while other countries make up 32 percent. Interviews gistered 305 yacht visits39, indicating the potential revealed visits from Germany and Denmark. 54 percent for yacht tourism in these locations. To determine of mariners visiting Mindelo are aged 25-40, with po- the current status of yachting in each location, a clo- tential for repeat visits. Additionally, over a quarter of ser look was taken at current yacht traffic using Mari- visitors are in the 51-65 age group43. neTraffic data where we examined boats that arrived at Cabo Verde and were between 10 and 100 meters. Sal We did not filter the results by any time duration in order to provide overall yacht traffic numbers across In 2023 so far, Porto da Palmeira has welcomed 105 ya- the locations in Cabo Verde. chts. In 2022, Porto da Palmeira welcomed 323 yachts, the highest number in history. During the same time Santiago in 2022, Santa Maria has welcomed 155 yachts44. Both Porto da Palmeira and Santa Maria have seen consis- There is a lack of data on yacht arrivals in Tarrafal. tent growth in yacht arrivals. However, in 2022, Porto da Praia welcomed 33 yachts. In 2023 so far, Porto da Praia welcomed 10 yachts. Du- 5.3. Further Insights, Marina Studies, and Ongoing ring this time, an additional 2 yachts anchored around Projects Praia for a total of 12 yachts40 visiting Porto da Praia and its surroundings. 5.3.1. Marina Development Project in Tarrafal São Vicente A marina project in Tarrafal, though faced with ini- tial challenges, is progressing with solutions and Mindelo has a well-equipped marina with 144 berths. aims to attract various boats while promoting com- In 2022, Marina Mindelo received 1,130 yachts41, mar- munity integration. There are currently no marinas or king the largest number of yacht arrivals in history. ports in the city of Tarrafal. However, there is a project The peak season, from mid-October to February, ca- underway to transform the area around the bay of Ta- ters mainly to sailing yachts, hosting diverse cliente- rrafal into a marina. Surrounding this prospective ma- le, including families, groups, and solo travelers. From rina, several hotel projects are already in the planning March to July, the marina experiences a distinct sport stages. Although environmental concerns and accessi- fishing season with approximately 15-20 fishing boats bility presented initial challenges, the matter of accessi- that usually stay about a month before returning to the bility has been resolved. Strategies for sewage and water Canary Islands and the Azores. August and September management have been designed to uphold environ- mark the low season with an average of 10-20 yacht mental sustainability. Markedly, the local community entries per month. While sailing yachts predominate, has not been actively participating in the project’s evo- there is a modest presence of motor yachts, around 10- lution. Moreover, parallel to the marina initiative, a plan 15 per year. Charter services, mainly operated by one had been established for rural tourism expansion. The company within the marina, are prominent during the project’s objective is to attract diverse boats, including high season, serving clients who arrive by plane, stay fishing boats. The precise investment needed for this for a week, and depart by air. Data for 2023 thus far metamorphosis is still undetermined. For the endeavor shows 453 vessel arrivals to Mindelo and Mindelo is on to be genuinely successful, it is critical that it integrates track to surpass its 2022 levels42. On average, the len- seamlessly with the local community. Cabo Verde Yacht Tourism Study 2023 34 Section 5 5.3.2. Mindelo Cruise Terminal Project at Porto existing cruise fleet. Based on the team’s interviews Grande with ENAPOR in Sao Vicente, the Porto Grande acts as a single-day stop for yachts focused on providing The Cabo Verde government is working on develo- necessary repairs, but it is not a destination for yachts ping a specialized cruise terminal in Mindelo, ai- looking to stay longer than one day due to the port’s ming to enhance safety for cruise passengers and focus on cruising. associated operations, however, the Porto Grande only remains a single-day stop for yachts. The go- vernment of Cabo Verde is presently engaged in the development of a specialized cruise terminal in Min- delo at the Porto Grande commercial port. It is located at the entrance of the island45 in a semicircular basin with a two-kilometer radius, naturally protected from strong maritime currents. Its calm and clear waters reach depths ranging between 11 and 30 meters. Due to its physical and natural characteristics, Porto Gran- de offers excellent entry and shelter conditions for any type of vessel. This undertaking is driven by the impe- rative need to ensure the safety and security of cruise passengers and associated operations. Concurrently, there is an initiative underway to construct a dedi- cated terminal exclusively for fishing activities. This endeavor seeks to segregate the two distinct mariti- me functions, ensuring optimized operations for each Image 1: Porto Grande Proposed Project sector. Further information on this project, its catego- ries, and functional stages can be found in Annex IV. 5.3.3. Development of Skilled Labor Through Education The terminal can accommodate a wide range of vessels. Central to the terrestrial works is a building Cabo Verde has begun in recent years to enhan- approximately 900m2 in size, designated as the “Visi- ce the vocational development provided in nauti- tor Welcome Center.” Adjacent to this is a transporta- cal tourism to train skilled labor for the region’s tion zone spanning roughly 6,150 m2, which will offer marinas and ports, and it already has three edu- parking provisions for both individual and collective cational institutions for national-level maritime passenger vehicles. Complementary infrastructures, training which present significant opportunities such as a CCTV circuit, fire fighting network, and for the nation’s yachting industry. To help ensure scanners, are also integrated into the design, which the skilled labor required to meet the demands of the values security, functionality, and adaptability. The yacht and recreational nautical tourism industry at a Terminal design facilitates the mooring of a spectrum national level, the country has three educational ins- of vessels, segmented into Large (Embarcação 1), Me- titutions: the Institute of the Sea (Instituto do Mar - dium (Embarcação 2), and Small (Embarcação 3) ca- IMar), the School of the Sea (Escola do Mar - EMAR) tegories. Each category is distinct in terms of dimen- and Higher Institute of Marine Engineering and Scien- sions, tonnage, and the potential to house passengers. ces (Instituto Superior de Engenharia e Ciências do The marina’s capacity is so extensive that it can ac- Mar - ISECMAR). Information about each institution commodate approximately 90 percent of the world’s can be found in Annex IV. With these three options Cabo Verde Yacht Tourism Study 2023 35 Section 5 for training a qualified workforce for the yacht indus- sed in a marina, ideally on the south or southwest try in Cabo Verde, more people can be involved in the coast of Santa Maria. development of this sector in the country. It would be in the interest of both the government and the priva- A cost-benefit analysis of marina placement in Sal te sector to invest in these institutions so that more is suggested due to conflicting opinions, but both opportunities are created, specifically around disse- brokers emphasized that yacht tourism has had a po- minating information on these programs to young sitive impact on the economy by creating employment people and their families as well as providing more opportunities and generating revenue through taxes. opportunities for Cabo Verdean society to participate in the program. 5.3.5. Marina Study in Santa Maria 5.3.4. Insights from Charter Companies Working Santa Maria is an ideal location for marina deve- in Sal lopment, but environmental concerns and poten- tial conflicts with local fishing communities must For those already offering charters in the country, be carefully managed, with three potential sites the building of marinas on Sal is key to growing proposed pending an evaluation due to resource this market, but there are disagreements regar- limitations. Particularly around Bikini Beach, Santa ding where a marina should go. Maria is an especially prime candidate for marina de- velopment, yet the drive for development is intricately • One operator emphasized the weakness of air con- tied with environmental apprehensions and potential nectivity between the islands, stating that relia- clashes with the local fishing communities. It is im- ble flights are crucial for their 1-2 week charters. perative to safeguard areas of ecological significance For this reason, they are based in Sal. To avoid 35 while ensuring the sustainability of local livelihoods, percent VAT, they return the boats to Europe for especially fishing. Three potential sites were presen- maintenance before the high season. They belie- ted within and near Santa Maria, shown in the image ve that Cabo Verde’s weather can attract charter below. clients as an alternative to the Caribbean, given its proximity to Europe. Due to the absence of ma- 5.3.6. Santa Fé International Resort Project in rina facilities on Sal, they have placed their own Porto Lobo moorings. They are also working on a plan to build a sheltered marina near the port in Palmeira and Located on Santiago, Porto Lobo holds untapped seek government support. potential with the Santa Fé International Resort • A local charter operator offers day trips and week- project leading the way in combining yachting, lu- long charters on various vessels, with growing xury, and sustainability46. Currently in its fundrai- demand from Scandinavian agencies. However, sing phase, the Santa Fé International Resort project maintenance issues, lack of skilled professionals, aims to transform the destination by uniting tourism and inconsistent regulations hinder their opera- with educational, cultural, and environmental initia- tions. They recommended facility improvements, tives that foster the preservation and enhancement of professional training, better harbor and customs the region’s natural beauty including numerous coves regulations, and unified rules to support indus- and Cabo Verde’s largest seagrass farm. The project en- try growth. Additionally, they believe that regis- compasses a wide range of amenities including a mari- tration fees and VAT create hurdles for boat sales na, hotels, a botanical garden, and a golf course, signa- and investments. The company operates five year- ling the potential for Porto Lobo to emerge as a premier round boats in Cabo Verde but suggests the need destination in Cabo Verde that combines sustainability for incentives, such as VAT exemptions, to attract and luxury. charter companies. An interest was also expres- Cabo Verde Yacht Tourism Study 2023 36 Section 5 Image 2: Suggested Sites for Marina Studies Image 3: Santa Fé International Resort Master Plan Cabo Verde Yacht Tourism Study 2023 37 Section 5 5.4. Potential and Recommendations for Development 5.4.1 Tarrafal (Santiago) with community engagement initiatives and training, Tarrafal is working on developing a marina that could undoubtedly elevate Tarrafal’s already promi- holds promise for tourism, but its success hinges sing tourism prospects. on addressing environmental and infrastructure challenges while considering local fishing inte- 5.4.2 Porto da Praia (Santiago) rests and maintaining historical significance, as it competes with other areas for tourism appeal. Porto da Praia’s airport presents a vital link for Tarrafal is making strides to establish itself as a fu- Cabo Verde to attract international visitors in- ture-ready tourist destination with the development terested in yachting, but limited luxurious hotel of a marina. This endeavor is intricately tied to both and dining options may hinder its appeal to weal- the local fishing industry and plans for tourism faci- thier travelers, necessitating incentives for servi- lities, and it has garnered the interest of various in- ce industry growth. Porto da Praia, with its Nelson vestors, including one with submarine connections, Mandela International Airport, serves as a crucial link although further discussions are necessary. Recent connecting Cabo Verde to key European destinations infrastructure enhancements and the area’s unique through direct flights, holding potential for drawing geographical features set Tarrafal apart. However, a international visitors seeking to charter or rent yachts primary concern in promoting yacht tourism in Ta- during their Cabo Verde sojourn, providing a gateway rrafal is the necessity for a deep floating dock due to to the region’s culture, natural beauty, and maritime shifting soil conditions, necessitating an infrastructu- adventures. However, accommodations within Praia re investment, all while considering the site’s histori- currently lack luxurious options, including the absen- cal significance as a World War II location. The marina ce of five-star hotels in the capital, possibly deterring project stands as the linchpin for Tarrafal’s maritime wealthier travelers from residing before embarking potential, though it faces challenges related to envi- on yacht excursions. While Praia offers a variety of ronmental considerations and sewage and water ma- dining options, the city falls short in internationally nagement. The ultimate aim is to construct a hotel recognized restaurants, presenting an opportunity complex and restaurants around the marina, with a for investors or chefs to cater to the upscale cliente- focus on harmonizing with the local community. Whi- le’s demands. On the upside, Praia is well-prepared to le the marina can undoubtedly attract tourists, it may host luxury yacht fleets, serving vessels that dock in not provide direct benefits to the traditional fishing its waters and those pausing before setting a course community. Ideas, such as fuel transfer by boat from for the Caribbean. The harbor stands as an ideal desti- Rice, open doors to boat excursions, ocean races, and nation, equipped with essential facilities for refueling, fishing competitions, further enhancing Tarrafal’s repairs, anchoring, and relaxation. Additionally, the appeal. Despite its immense tourism potential, Tarra- city has an international airport with connections to fal faces competition from other areas when evalua- major European cities, facilitating international tou- ting various aspects, given its limited port amenities rism. To fully harness its potential, however, incen- catering primarily to inter-island boat traffic. Never- tives are vital, particularly to spur the growth of its theless, the region has a stunning beach, a range of service industry, as the current number of high-end hotels, a prominent SCUBA diving operation, diverse restaurants, hotels, and entertainment centers re- visitor accommodations, and a compelling historical mains limited for the high-net-worth demographic. attraction. The introduction of a marina, combined Cabo Verde Yacht Tourism Study 2023 38 Section 5 5.4.3 Mindelo (São Vicente) tourism in Cabo Verde, with room for enhancement. Porto Grande primarily serves commercial purposes, Marina Mindelo in São Vicente exhibits poten- but by integrating policies to foster industry growth tial for yacht tourism growth but improvements and attract foreign investments, São Vicente could in infrastructure, safety, and local skills are ne- become the foremost destination for yacht rentals in cessary, along with diversifying services, marke- Cabo Verde. ting, and collaboration with the government and investors to unlock its full potential and establish 5.4.4 Porto da Palmeira (Sal) São Vicente as a prominent yacht rental destina- tion in Cabo Verde. Marina Mindelo in São Vicente To unleash maritime tourism potential around has shown potential for development, with a prima- Porto da Palmeira, addressing the one-day an- rily international client base and a strong emphasis chorage policy and establishing a dedicated ma- on attracting a global audience, despite a setback in rina with facilities is critical. To unlock the mari- 2020 due to the pandemic. The consistent growth in time tourism potential of Sal Island, specifically near yacht demand and participation in prestigious rega- Porto da Palmeira, it is crucial to address the current ttas during off-peak months like January highlight one-day anchorage policy, which restricts the island’s the marina’s potential. Seasonal activities like sport growth as a premier tourist destination. A recommen- fishing and sailing offer diverse clientele opportuni- ded solution is the establishment of a dedicated ma- ties. To unlock its full potential, infrastructure and rina near Porto da Palmeira to provide facilities and safety measures need enhancement. The addition of a longer-term anchorage. This development would en- travel lift, identified as crucial by the marina manager, hance the island’s reputation as a maritime explora- can attract vessels and reduce the length of stay, be- tion hub, aligning with its scenic beauty and cultural nefiting BoatCV, the sole repair company in Mindelo. attractions. Intensified marketing campaigns should Challenges include a shortage of local skills for yacht target sailing and yachting enthusiasts, promoting charter repairs and a lack of recreational facilities, su- Sal Island’s unique maritime offerings. Engaging with ggesting the need for sailing and swimming schools. boat owners and operators for feedback is vital to tai- To address these needs, Escola do Mar (EMAR) offers lor maritime facilities and services, ensuring that Sal training and qualification courses across the islands, Island becomes a sought-after maritime destination covering essential skills for the boat industry. To har- and maximizes growth in maritime tourism. Additio- ness the marina’s potential, it is recommended to in- nally, the creation of a “courtesy dock” in Palmeira for vest in breakwaters, expand to accommodate larger guest embarking and disembarking could be a prelimi- vessels, and install a travel lift. Active engagement nary step towards a permanent marina facility. While with the government to secure funding for breakwater Palmeira, known primarily as a commercial port, has construction is advised, along with considering alter- the potential to cater to recreational boats due to its native options. Diversifying services, including res- structural features and an influx of boaters, its current taurants, shops, and recreational activities, should be services are basic and rudimentary. The security and explored. Intensified marketing efforts and the crea- cost-effectiveness of anchoring at Palmeira make it tion of a recreational center offering sailing classes an attractive choice, but it lacks aesthetic appeal and and charters can attract local clientele and broaden proximity to the tourism hub of Santa Maria. the marina’s recognition. Collaboration with national investors and relevant agencies is encouraged to faci- Addressing challenges like specialized anchoring litate progress. Further observations from the Mana- zones, dredging, and visual pollution is essential ger of Marina Mindelo can be found in Annex IV. São for the maritime development of Sal Island. The Vicente stands out as the most advanced hub for yacht objectives of Palmeira’s development should be clari- Cabo Verde Yacht Tourism Study 2023 39 Section 5 fied. While it can efficiently serve functional needs, 5.5 Take-Aways for Cabo Verde investing in a location like Santa Maria could yield more substantial long-term dividends in terms of Sal and São Vicente, particularly Mindelo, are the economic impact and tourist satisfaction. Challenges most promising for yacht tourism in Cabo Verde include the need for specialized anchoring zones for due to their infrastructure and amenities. When large yachts, potentially requiring extensive dred- considering the potential for yacht tourism in Cabo ging, and the evolving maritime landscape with ex- Verde, Sal and São Vicente, particularly in Mindelo, ternal influences introducing complexity. Aesthetics emerge as the most promising locations, poised for and concerns about visual pollution from poorly re- further growth and development. These islands have gulated marinas punctuating the coastline also need the infrastructure, strategic positioning, and ameni- to be addressed in Sal Island’s maritime development. ties that cater to maritime enthusiasts, making them Nevertheless, as described later in the Recommenda- attractive destinations. In contrast, Santiago also pos- tions section, we are recommending a feasibility study sesses potential, but it demands investment and deve- in relation to a marina facility in Sal Island. lopment, as well as community buy-in to fully unlock its prospects. 5.4.5 Santa Maria (Sal) Recent developments in Cabo Verde’s maritime Santa Maria, with its proximity to the airport and sector show a shift in opportunity towards attrac- luxury accommodations, has the potential to beco- ting larger motorized vessels and high-net-wor- me a top yacht tourism destination, but infrastruc- th individuals, though challenges exist. In recent ture improvements and services for yacht tourists years, Cabo Verde’s maritime sector has witnessed a are essential for its success. Santa Maria emerges paradigm shift with both promising opportunities and as a pivotal destination, rapidly transforming from a challenges. Currently, sailing vessels predominantly modest fishing village into a bustling tourist hub with go to Cabo Verde’s waters, but there is a discernible pristine beaches and an array of services tailored for shift in the wind, leaning towards attracting larger, visitors, including hotel chains like Riu, Oasis, Robin- motorized vessels and high-net-worth individuals. son Club, and Hilton. Its strategic significance, mar- Ambiguities from national guidelines create confu- ked by its proximity to Amilcar Cabral International sion, signaling a pressing need for clearer directives. Airport and Espargos, is undeniable. To capitalize on Conflict between the fishing and tourism sectors fur- yacht tourism, essential infrastructure improvements ther complicates the maritime landscape, undersco- are needed, as current anchorage facilities are rudi- ring the need for a balanced approach that can cater to mentary. The potential for well-equipped marinas both industries. Despite these challenges, Cabo Ver- is promising, but their development requires careful de’s unique geographical vantage suggests a prospe- evaluation, considering ecological sustainability and rous horizon for yacht tourism. Also in recent years, the preservation of local livelihoods. Simultaneously, there have been studies to establish new marinas in the growth in luxury accommodations signals a future Cabo Verde, all of which were discarded, including the for tourism, although addressing service gaps for ya- proposed Marina Murdeira on the island of Sal. The cht tourists, such as extended rentals and specialized project almost came to fruition in 2009, with an envi- amenities, will enhance the region’s appeal. With a ronmental impact study47 for the creation of the faci- fusion of local insights, expert knowledge, and sustai- lity, but was abandoned thereafter. A marina in Santa nable practices, Santa Maria holds the potential to be- Maria was intended to support the increasing demand come a premier yacht tourism destination in the Cabo for yacht tourism on the island of Sal but faced similar Verde archipelago, furthering its appeal to maritime non-action. enthusiasts and bolstering its status as a burgeoning hub for visitors. Cabo Verde Yacht Tourism Study 2023 40 Section 5 Collaboration among stakeholders is necessary to loped yacht tourism industry in Cabo Verde mandates develop a yacht tourism industry while preserving synergies across multiple stakeholders, from the local the environment. A component of Cabo Verde’s mari- bodies to the government, all while ensuring environ- time journey is a penchant for rapidly assimilating ma- mental safeguards and navigating geopolitical waters. ritime regulations, often mirroring Portuguese legisla- In addition, in order to ensure that any infrastructure tion. While efficient, this has led to terminology-related development across islands is sustainable, a thorough confusion in multiple instances, stymying certain ini- environmental impact study of each of the proposed si- tiatives. Furthermore, despite its archipelagic nature, tes will enable Cabo Verde to minimize environmental Cabo Verde grapples with a cultural conundrum; A si- impact by evaluating actions such as providing pump- zable portion of its populace feels disengaged from the out to eliminate discharge of wastewater, incorpora- maritime realm, diagnosing a gap in nautical cultural ting marine life protection measures such as avoiding integration. Altogether, the larger discourse undersco- anchoring in marine diverse areas, and promoting re- res a central theme: collaboration. Achieving a deve- newable energy usage. Cabo Verde Yacht Tourism Study 2023 41 Section 6 Market Analysis cent), Germany (10 percent), Denmark (7 percent), and the U.S. (6 percent)48. The growth rate of this sector is Cabo Verde exhibits potential as a yachting desti- around 5 percent, with an average spend of about $250 nation, supported by research on actual, potential, per person per day. and demand segments. Cabo Verde is already proving to be an attractive boating destination and shows great Rallies and races potential for further development as a yachting destina- tion. In order to discern the actual potential in various Existing yacht tourism in Cabo Verde is largely dri- market segments for Cabo Verde, researchers analyzed ven by sailing rallies like ARC+ that include a stop data from both MarineTraffic, the IMP at each major in the country, offering opportunities for positive marina or port (Marina Mindelo, Port of Palmeira, and publicity and the potential to attract more tourists. Porto Grande), as well as desk research. Data on current This existing market is largely made up of transit ves- yachts anchoring at Port of Tarrafal are not available sels participating in the ARC+. The ARC+ is a rally that via public or private sector re- includes a stop in Cabo Ver- sources. In the market analysis, de on the way from Europe to three specific components for Dominant Market Segments the Caribbean. They have se- yachting in Cabo Verde are stu- veral routes that include this died: actual market segments, SPORT FISHING YACHTS stop over: ARC+ to Saint Lucia, potential market segments, and market demand. RALLIES AND RACES ARC+ to Saint Vincent and the Grenadines, and ARC+ to Gre- TRANSITING VESSELS nada, all visiting Cabo Verde. 6.1. Actual Market Segments CHARTER VESSELS In 2022, ARC+ data49 shows 100 participating vessels, with an Several key market segments increase every year. Most race are potentially fertile for Cabo participants are from the UK Verde’s growth as a yachting destination. Learn (27.6 percent), followed by France (13.2 percent) and more in Annex V. There are four market segments the U.S. (9.2 percent). Other countries make up 24.9 that currently dominate the yacht market in Cabo Ver- percent. The average age is 51 years old. Most have a de: sport fishing yachts, rallies and races, transiting higher education (81.4 percent) and an average income vessels and charter vessels. of 6,000 to 10,000 euros (34.6 percent). More races that stop in Cabo Verde include the Ocean Race, Viking Ex- Sport fishing yachts plorers, and the Atlantic ocean to ocean pacific. These races could generate positive publicity about Cabo Ver- Sport fishing in Cabo Verde peaks from March to July, de’s hospitality which would drive more tourism and/or attracting 15-20 boats per month. In the high season inclusion in additional races. (March to July), about 15-20 sport fishing boats are oc- cupied monthly, while 10-20 boats are used in the low Transiting vessels season (August to September). These vessels, typically 20-40 foot motor yachts, are found in Marina Minde- Cabo Verde serves as an established transit point lo. The main visitors for catch-and-release sportfi- for sailing vessels crossing from Europe to the Cari- shing come from the UK (24 percent), France (21 per- bbean. Transit from Europe to the Caribbean is an 42 Section 6 established market for Cabo Verde. Crossing the At- Strategies are needed to encourage and stimulate local lantic from the Canaries via Cabo Verde enables boats ownership of vessels in this category, enabling Cabo to make the most of the north east trade winds; their Verdean citizens to gain a foothold in the industry. latitude at 16º50’N is right in the path of the trade winds, promising a great sail to the Caribbean and Rallies and races a warm welcome awaiting your arrival. In 2022—the last year for which researchers have four quarters—, Participation in the ARC+ route has grown steadily, the total number of sailing vessels in Cabo Verde was and organizers and participants suggest immediate 447 according to Marine Traffic data50. As mentio- improvements such as welcoming crews, providing ned, ARC+ data states that about 10051 of them were discounts, and organizing activities, alongside ad- crossing from Europe to the Caribbean. This statistic dressing navigational hazards. From 2014 through is likely higher than indicated because not all vessels 2023, the growth of participation in the ARC+ route has transiting are part of the rally, so an estimate of 275- increased 9.2 percent per year52. Currently, ARC+ organi- 300 boats in 2022 were transiting vessels. zers manage expectations of yachtsmen coming to Cabo Verde including limiting their needs to “top-up” only fuel Charter vessels and water. Organizers and attendees of rallies and races limited to ARC+ and The Ocean Race were interviewed. Surveys provided insights into the potential and The research obtained the contribution of eight corres- limitations of the yacht charter market in Cabo pondents from the sector of organization and participa- Verde. Approximately five charter companies cu- tion in these nautical races. Organizers expressed disa- rrently serve Cabo Verde including Cabo Verde Sailing ppointment that there was no welcoming of their group and Albion. Some charter companies are more active upon arrival in Mindelo. Whilst they say that staff at the than others; however, across the board, there are li- marina is incredibly hardworking, they found the lack mited sizes of vessels, constrained to catamarans and of any official greeting odd. They also say that there is a boats under 15m long. To shed light on why charter need for greater availability of parts and services for these operations are low in Cabo Verde, 18 international vessels as this is the last stop before making the Atlantic luxury yacht brokers were surveyed to understand crossing. Improvements able to be made immediately and their perspectives on several critical aspects, inclu- at little to no cost include greeting the yachtsmen when ding market demand, infrastructure, challenges, and they arrive—which is an opportunity to showcase locally opportunities. made goods—and providing discounts at local restaurants and shops specifically for ARC+ participants. A more in- 6.2. Augmenting Existing Market Segments volved task is creating a yachting week of activities and festivals for their time in Mindelo. Finally, the removal of Further penetration of the aforementioned mar- navigational hazards such as abandoned or sunken vesse- ket segments is likely if a methodical approach is ls is critically important. Policies and regulations should taken to the development of the sector. The areas be considered to avoid boats being abandoned and regular for further development are “low-hanging fruit”—me- sweeps of the area should be done. aning the most straightforward and easily achievable. (See more in Annex V). Additionally, for sustained growth and success, there is a pressing need for collaborative efforts, Sport fishing yachts particularly between the sailors, event organizers, and local leadership. Enhanced engagement from Promoting this segment and enabling more ac- the municipality can drive initiatives that recogni- cessible sport fishing licenses will draw more con- ze and harness the economic potential of maritime noisseurs and prompt additional business on-land. events, transforming challenges into opportunities. Cabo Verde Yacht Tourism Study 2023 43 Section 6 Transiting vessels Cabo Verde as a prominent yacht charter destination. The results indicate a demand for yacht charter expe- If infrastructure and amenities are improved, riences, with international brokers handling over 20 the dwell time and number of yachtsmen may in- charters annually. Larger motorboats between 31 and crease. Adjustments to increase dwell time include: 70 meters are the preferred choice, with charters typi- • Diversify attractions: Provide a variety of cultural, cally lasting one to two weeks. The Mediterranean, water, nature, and historical activities to extend particularly Croatia, is a popular charter region, and tourist stays. there is a growing interest in diverse destinations, • Flexible itineraries: Allow yacht tourists to custo- away from the Caribbean. mize experiences based on preferences for longer visits. Charter brokers emphasize the need for marke- • Simplify visa processes: Streamline procedures to ting, infrastructure improvement, and community make extending stays hassle-free for visitors and involvement to enhance Cabo Verde’s status as a crews. charter destination. Brokers stress the importance of • Extended berthing: Offer competitive rates and diverse attractions, safety, security, and infrastructu- amenities to encourage longer stays for yacht re in marketing efforts. Challenges related to logistics, charter and private owners. regulations, and customs costs need comprehensive • Seasonal events: Organize week-long festivals du- addressing. Client preferences, logistical considera- ring yachting shoulder seasons to attract transi- tions, and seasonal factors are primary influences in ting vessels. destination choices. The Greek Isles and Croatia ex- • Ongoing promotion: Maintain a consistent pre- cel as yachting destinations, while the Caribbean is sence at international venues to stay top of mind experiencing a decline. Cabo Verde’s potential lies in for yacht brokers and owners. its exotic and accessible nature, but limited aware- • Yacht support services: Ensure efficient access to ness remains a significant hurdle. Almost all brokers maintenance, refueling, and provisioning to enti- lack knowledge about Cabo Verde’s infrastructure ce longer stays. and amenities for the yacht industry. Further, a lack of promotion between Cabo Verde and the Canary Charter vessels Islands signifies a potential opportunity. To improve Cabo Verde’s status as a charter destination, brokers Yacht charter experts see potential in Cabo Verde, strongly recommend enhancing marketing and pro- with its unique appeal, but infrastructure and ex- motion, involving the local community, conducting perience improvements are necessary to maximize FAM trips, and improving infrastructure. Cabo Verde’s this opportunity, as larger motorboats on one- to relative obscurity is seen as an untapped opportunity, two-week charters are preferred by clients. Our with a need to alter perceptions to position it as an survey of charter brokers and managers, included in exotic and discreet destination conveniently located Annex V, indicated that there is an appetite for char- near Europe. ter availability in Cabo Verde, though infrastructure and experiential improvements would be necessary to Balancing the preferences of private yacht owners maximize this opportunity. To these experts, the loca- and the charter industry is crucial for Cabo Verde’s tion, natural beauty, tranquility, privacy, ability to in- development, with potential in both markets. A cru- teract with local communities, and variety of activities cial consideration is striking a balance between catering makes it attractive to the charter consumer. On ave- to private yacht owners’ exclusivity preferences and de- rage, a single week-long charter leaves approximately veloping a thriving charter industry. Cabo Verde has the $50k in country per vessel53. The survey findings on potential to develop assets enabling it to explore options yacht preferences reveal key insights for positioning for both demographics. These can be complimentary Cabo Verde Yacht Tourism Study 2023 44 Section 6 markets if properly planned. One topic not broached by Sal survey responses, but still of critical note, is the draw of taxable goods and services. Moreover, to extend dwell Focus on mid size vessels (18m-36m) for chartering. time in Cabo Verde for the charter market, survey fin- Sal is where current charters are operating from; increa- dings suggest promotional and policy revisions such as: sing the number of available vessels including investing • Introducing incentives for charter yachts to stay in a small fleet of 18m catamarans would again capita- longer. This can include reduced fees for longer lize on existing trends. A collaborative effort between charters, special packages, or seasonal discounts. EMAR and private charter companies who have expres- • Collaborating with yacht charter companies to crea- sed interest in Cabo Verde should be encouraged to in- te bundled services. These could include onshore vest in a small fleet of the most commonly requested tours, transportation, and guides to encourage ya- vessels. Not only would this build local capacity, but it chters to extend their stay. would provide vessels in place to grow charter business. • Providing digital platforms and information servi- ces that make it easy for brokers and private owners Santiago to plan and customize their booking. Offer online resources, navigation tools, and guides. Focus on compact vessel charters in Tarrafal. For • Offering loyalty programs, discounts or incentives medium-term and long-term focus, it is suggested prio- to charter brokers and their clients for repeat visits. ritizing Tarrafal for development in the charter market, specifically for 12m-24m vessels to support sailing and 6.2.1. Practical Applications for Augmenting Seg- leisure activities. Currently, vessels must anchor out be- ments cause there is no dock in the marina, thus it is supported by the proposal to build a dock and further infrastruc- Island-specific prioritization is recommended for ture, such as a hotel, in Tarrafal. Tarrafal’s appeal lies implementing strategy to augment existing mar- in its historical sights, cultural attraction, and access to ket segments. Key areas for promotion and policy the sea. However, should these infrastructure develop- improvements are best determined on an island by ments to support the charter market be adapted, the be- island basis: nefits would overflow to uplift private sector businesses, beyond charter companies. Praia should be considered São Vicente for a longer term focus for charter market expansion. As described in the Assessment of Current Status, given Focus on rallies and races, seasonal transiting development in Santa Fe International Resort and the (12m-24m), and sport fishing. Because São Vicente is ambition of having a marina, Marina Porto Lobo, could in the direct path of the trade winds, stopping here is potentially be a destination that is attractive to larger smarter for sailing vessels. This would then contribute yacht and superyacht segments. to an uptick in staying time. For São Vicente, the marina manager offered a number of suggestions including in- creasing the number of berths and a travel-lift as well as other amenities. Here, creating a “regatta week” would provide touristic opportunities on land as well as on the water. Another advisable course of action would be to assist local business people to acquire vessels for sport fishing and participate in the industry as it grows. Cabo Verde Yacht Tourism Study 2023 45 Section 6 6.3. Looking Forward: What is the Potential for ding third quarter 2023) at 62 percent, cooling off in the Yachting in Cabo Verde? most recent three year period to 7 percent as new gover- nment limitations were placed on yacht charter capacity The report has forecasted yachting demand in Cabo due to environmental concerns and fears of over-tourism. Verde for the next decade based on historical data. To forecast yachting demand in Cabo Verde for the next decade, ten years of data on leisure vessel traffic to Cabo Verde were analyzed, along with data from Costa Rica and Seychelles. Forecasting demand is inherently uncertain, so a combination of quantitative data, qualitative insi- ghts, and scenario analysis was used. Using a decade’s worth of data from marinetraffic.com, researchers con- sidered various factors, including economic trends, tou- rism development, marketing strategies, and changing consumer preferences. This methodology allows regular updates to maintain accuracy. Historical data (available Comparative Growth Rates in Cabo Verde, Costa Rica and Seychelles in Annex 6.5) shows that Cabo Verde’s growth has been relatively steady since 2016, with some exceptions like the Based on the ten year CAGR for Cabo Verde, the in- impact of COVID-19 in 2020. Additionally, the team used crease in this market segment internationally and the same set of data that was analyzed in the Assessment the increase in projected number of HNWI, the CAGR of Current Status section, but filtered only on any arrivals for Cabo Verde can be expected to be 15-2555 percent that lasted longer than 24 hours in order to ensure there over the next five to ten years. This is if Cabo Ver- was a level playing field between the three destinations. de continues its status quo, without implementing recommendations outlined in this report. However, with action, these odds increase in Cabo Verde’s favor and growth rates could increase at a higher rate. Growth rates may then level off at the higher base rate, given the year over year growth in Costa Rica and Seychelles which takes into account each nation’s respective promotional and policy changes aimed at enhancing yachting tourism and efficiency. To predict Cabo Verde’s future growth in this segment, it is considered three potential courses of action: 1. International Marketing Campaign: If Cabo Ver- Actual Arrivals in Cabo Verde, Costa Rica and Seychelles de launches a sustained, robust marketing campaign and attends trade shows to raise awareness in 2024- In comparison, Costa Rica and Seychelles have seen 2025, yacht arrivals can grow in the year following more growth, primarily due to policy changes and in- the campaign. vestments. The CAGR for Costa Rica over the ten year pe- 2. Policy Changes and Announcements: If Cabo riod was the largest among the three destinations studied, Verde implements and announces policy changes, 107 percent (including third quarter 2023) with nearly 52 growth could increase in the year after the an- percent CAGR from 2021 through 202354. The Seychelles nouncement. had a similarly high CAGR in the ten year period (inclu- Combined Approach: If Cabo Verde makes definitive steps to implement a marketing campaign, continue to implement and announce policy changes, as well as Cabo Verde Yacht Tourism Study 2023 46 Section 6 work on a few key infrastructure changes, which are sition Cabo Verde as a thriving destination in the outlined in the recommendations, a CAGR of 60 to 80 luxury ecotourism and yachting sector. These pre- percent is forecasted in 10 years. dictions assume political stability and no major global health or weather-related disruptions. Policy changes, infrastructure improvements, and strong promotion can increase the length of arriving vessels in Cabo Ver- de. The data also suggests that Cabo Verde’s proximity to the European yacht market is an advantage. France and the UK are more aware of Cabo Verde as a destina- tion, indicating that promoting Cabo Verde as a yacht destination for Europe should be a focus. Furthermore, data indicates that while Cabo Verde has a relatively high number of sailboats, it has lagged in motor vessel arrivals, falling behind Costa Rica and Seychelles. Poli- cy changes, such as easing vessel entry/registration and infrastructure development, can accelerate growth in this segment. In the short-term, if Cabo Verde implements key plan- ned recommendations in two areas—marketing and 6.4 Takeaways for Cabo Verde policy changes, they can be prepared to see a 25 to 30 percent year-over-year rate of change in the next 3-5 To best capitalize on actual and potential market years. Lastly, if Cabo Verde implements key changes in segments for Cabo Verde yachting, it is Trove’s con- infrastructure, policy changes and marketing, it can see clusion that the first course of action is for Cabo Ver- a year-over-year rate of 25 to 40 percent in the next 3-5 de to begin addressing the so-called low-hanging years. fruit. This includes the augmentation of existing mar- kets such as sport fishing, rallies and races, transiting vessels, and charters. Because Costa Rica and Seychelles were studied, this report concludes that these market expansions will allow for yachting development in Cabo Verde. In particular, these segments should be dedica- ted promotional and policy efforts based on island-spe- cific opportunity. Policy work necessitated to capitalize on these markets includes investment and taxation to realize growth in these industries. It is predicted to increase yacht arrivals in Cabo Ver- de, emphasizing the importance of policy changes, infrastructure development, and European market promotion, particularly for motor vessels, to po- Cabo Verde Yacht Tourism Study 2023 47 Section 7 Competitiveness Analysis In this section of the study, researchers conducted an even better kept secret, if all of the facilities are a competitive analysis to assess Cabo Verde’s provided. Working with the Canaries, Cabo Verde can status as a yachting destination in comparison begin to draw from this existing market in the spirit of to three other selected destinations: the Canary collaboration and cooperation. Insights gained from the Islands, Grenada, and Croatia. The objective is to development of yachting tourism, including secondary evaluate Cabo Verde’s competitive position in the and tertiary economic impacts in the Canaries, are regional and global yachting industry. To achieve this, critical to the competitive analysis. various critical aspects of the yachting experience were examined, including the existing regulatory framework 7.1.1. Take-aways for Cabo Verde governing customs and immigration procedures, safety regulations, and licensing requirements. The The Canary Islands serve as a crucial stop on Competitive Research focused on desk research, yacht transatlantic routes and offer valuable insights pattern tracking, and trend analysis reports that are for Cabo Verde with their mature yachting accessible. The full competitive analysis is included industry and marina infrastructure. The Canary in Annex VI, but below is a summary table and main Islands, situated off the northwest coast of Africa, take-aways.VI). The competitive research was derived are a consolidated yacht destination in the Atlantic from desk research, yacht pattern tracking, and trend Ocean. This archipelago, often compared to Cabo analysis reports. By incorporating insights from these Verde, presentcs several key factors that make it both competitors, the study ensured a comprehensive a beacon and a challenge for Cabo Verde’s aspirations competitor analysis for Cabo Verde. in the maritime tourism sector. The Canary Islands serve as a first stop for many yacht routes, particularly 7.1. Canary Islands those crossing from Europe to the Caribbean or South America. This geographic advantage draws travelers The Canary Islands offer insights into the who may consider the Canary Islands their ultimate infrastructure, services, and amenities that have destination and a benchmark for comparison. The contributed to its success. The Canary Islands were Canary Islands also have a well-established and mature chosen because of their proximity to Cabo Verde yachting industry, catering to a diverse range of and because the maturity of their yacht tourism vessels, including mega-yachts. This sector’s maturity market presents an ideal opportunity to understand offers valuable insights into how Cabo Verde could the target market. From this research, the result is effectively develop and capitalize on its own maritime an understanding of infrastructure, services, and tourism market. The archipelago features a network of amenities both on land and on the water that have marinas, some of which are equipped with state-of-the- allowed yacht tourism to flourish in the Canaries. art facilities and a wide array of entertainment options. Furthermore, the Canaries provide an ideal charter base from which Cabo Verde can learn a great deal. Cabo Verde’s unique charm, natural beauty, and The diversity of experiences available in the Canaries cultural authenticity distinguish it from the is important to creating a long term development plan more commercialized Canary Islands. Cabo Verde, for Cabo Verde. Interestingly, some charter companies however, retains its appeal as a more unique and refer to the Canaries as a well-kept secret. The Cabo less-commercialized destination compared to the Verde islands may be able to compete for those seeking Canary Islands. The Cabo Verdean experience offers Cabo Verde Yacht Tourism Study 2023 48 Section 7 a blend of rustic charm, natural beauty, and cultural bestowed by a renowned specialized magazine. The authenticity that may resonate more with discerning goal in this initial phase of work is to understand travelers seeking an exclusive experience. Geologically simple viability for private sector investment by and ecologically, Cabo Verde stands apart from the looking at existing markets and trends. If the basic Canary Islands. Its volcanic landscapes and distinct critical mass is there, then it is possible to look beyond ecosystems offer a different set of natural attractions. this traditional mariner route as there are many types Additionally, the culture and population of Cabo of “competitive sets” that can be used to demonstrate Verde possess unique characteristics, reflecting its how Cabo Verde might succeed. African and Creole heritage, which differentiates it from the Spanish culture found in the Canary Islands. 7.2.1. Take-aways for Cabo Verde Both Cabo Verde and the Canary Islands recognize the importance of the Blue Economy for their economic Grenada’s well-established yacht infrastructure sustainability. They are committed to sustainable and visitor-friendly visa policies pose a practices and are actively involved in marine benchmark and competitive challenge for Cabo conservation efforts. In summary, the Canary Islands Verde’s maritime tourism aspirations. Grenada present an enticing model for Cabo Verde’s aspirations is a Caribbean yacht destination that has already in maritime tourism. It serves as an example of a well- established itself, drawing the attention of key developed yachting industry and infrastructure. Yet, stakeholders in the region. This can serve as both a Cabo Verde maintains its allure as a distinctive and shining example and a potential challenge for Cabo exclusive destination. While the Canary Islands can Verde. Grenada is frequently compared to Cabo Verde offer valuable insights, Cabo Verde’s unique charm in terms of infrastructure, attractions, facilities, and potential for growth are equally compelling for amenities, and utilities because it serves as the those seeking an extraordinary maritime experience. ultimate destination for many yachts crossing the Atlantic en route to the Caribbean. Despite its smaller 7.2. Grenada GDP and population compared to Cabo Verde, Grenada has emerged as a prominent nautical destination and Studying Grenada provides an excellent basis for has taken the lead in promoting the country on the comparison and insights into how Cabo Verde international stage. Through this study, it becomes can develop its own yacht tourism sector and evident that Grenada has already built infrastructure potentially expand into alternative competitive and a workforce for luxury experiences, catering to sets. Secondly, Grenada offers a more advanced and individuals with higher purchasing power. These high-end experience compared to Cabo Verde, so it visitors often opt to rent mega-yachts and make use provides a valuable basis for comparison. This contrast of the marina facilities to explore the surrounding offers valuable insights into how to effectively explore islands. Grenada has 10 well-equipped marinas, and capitalize on this market. Moreover, Grenada offering a wide range of entertainment options and shares a similar island structure with Cabo Verde, tourist attractions. Among them, the state-of-the-art with Grenada acting as the central hub while also Port Louis Marina, located in St. George’s and owned leveraging the tourism and attractions of Carriacou and operated by Camper & Nicholsons Marinas, stands and Petite Martinique. This report aims to compare out. Cabo Verde currently lacks a comparable business, how a nation with just a fifth of the population and which could be a competitive weakness compared half the GDP of Cabo Verde, like Grenada, manages to to its Caribbean counterpart. Another advantage of sustain a flourishing yachting industry. Furthermore, Grenada is that it does not require visas or passports it is noteworthy that Grenada clinched the title of the for visitors from countries like the United States, region’s preferred yachting destination for 2023, as Canada, and the United Kingdom. This simplifies the Cabo Verde Yacht Tourism Study 2023 49 Section 7 process for individuals with high purchasing power conservation. Researchers chose Croatia because this from these countries, eliminating concerns about more developed market may hold valuable lessons on immigration bureaucracy. yachting development. Croatia has emerged as a global yachting hotspot with a well-developed infrastructure, Cabo Verde offers distinct natural features and a plethora of marinas, and a strong yachting culture. unique culture compared to Grenada, which excels Understanding Croatia’s strategies for effective coastal in investment and infrastructure, presenting management, marina development, and promotion a valuable model for Cabo Verde to develop its of nautical tourism. Furthermore, Croatia’s journey maritime tourism. Cabo Verde excels over Grenada as offers valuable lessons in striking a balance between a more exclusive and lesser-known destination. Many economic benefits and environmental conservation. high-net-worth individuals may find their time in Cabo This includes implementing sustainable practices for Verde more appealing, seeking a rustic and authentic waste management, water quality preservation, and experience, an offering Grenada may no longer offer. protecting marine biodiversity. Ultimately, an analysis Cabo Verde also stands out for its unique geological of Croatia’s yachting industry will equip Cabo Verde and natural features, distinct from what tourists will with the knowledge and strategies needed to develop a encounter in Grenada. The culture and population of robust, sustainable, and thriving yachting sector that Cabo Verde possess unique characteristics, setting aligns with its unique identity and aspirations. them apart from the residents of Caribbean islands. Both archipelagic nations recognize the importance 7.3.1. Take-aways for Cabo Verde of maritime sustainability for the continuation of their economic development. Therefore, both are While Cabo Verde offers unique appeal, Croatia’s signatories to international agreements and receive well-developed infrastructure, clear regulations, external financial assistance to support their blue and extensive services make it a more competitive economy initiatives. Additionally, both territories destination for yachting. Cabo Verde faces offer favorable navigation conditions throughout the challenges such as high entry fees and inconsistent year, with Grenada avoiding the Caribbean hurricane registration standards, while Croatia offers incentives season. Navigation conditions in Grenada are generally like a 20 percent tourist tax cut for boat owners and more forgiving than in Cabo Verde, but hiring a skipper clear regulations. Croatia boasts over 50 marinas can mitigate this challenge in the African islands. In and well-defined infrastructure, while Cabo Verde conclusion, Grenada holds an edge over Cabo Verde in is in the early stages of developing its yachting terms of investment, infrastructure, workforce, and facilities. Both destinations enjoy favorable weather immigration facilitation. However, Cabo Verde excels conditions, but Croatia’s diverse wind patterns and in exclusivity as a destination. The West African low navigational difficulty make it a top choice for nation can draw inspiration from Grenada’s success in sailors. Safety regulations are in place in both regions, developing its nautical infrastructure to attract more with Croatia’s well-established regulatory system tourists and accommodate the rental of mega-yachts. and Cabo Verde’s efforts to align with international standards. Licensing requirements are stricter in 7.3. Croatia Croatia, ensuring competency, while Cabo Verde faces challenges in streamlining its license application Analyzing Croatia’s well-developed yachting sector process. Croatia excels in on-land amenities, offering provides essential insights into effective coastal historic sites, festivals, and cuisine, while Cabo Verde management, marina development, promotion provides unique cultural experiences. Croatia imposes of nautical tourism, and striking a balance a sojourn tax, which is crucial to keep onboard, between economic growth and environmental whereas Cabo Verde offers accommodative fiscal Cabo Verde Yacht Tourism Study 2023 50 Section 7 policies, including discounts on marina entry fees. Croatia’s marinas provide utilities and services, enhancing the yachting experience, while Cabo Verde faces challenges related to potable water. Both destinations have educational institutions for skilled labor, but Croatia’s workforce is more extensive and experienced. Finally, Croatia has a well-established network of yacht brokers and international broker associations, promoting responsible yachting practices, while Cabo Verde primarily consists of smaller chartering companies. Cabo Verde Yacht Tourism Study 2023 51 Section 7 7.4. Cross-Competitor Analysis A cross-competitor analysis provides key insights of Cabo Verde’s opportunities and improvement areas compared to each yacht market competitor, below. Table 7.4 Cross-Competitor Analysis Cabo Verde Canary Islands (Spain) Grenada Croatia Specific Cabo Verde’s marine edu- The Canary Islands offer a Grenada attracts nautical Croatia, known for anchoring differentiated cation and nautical tourism 7% local consumer tax and tourism through tax ex- freedoms and incentives policies laws are offset by high fees Europe’s lowest corporate emptions and customs duty like a 20% tourist tax cut for foreign boats, incon- tax at 4%t, with straight- reliefs, supported by a $20 for boat owners, has seen sistent registration, and forward customs and good million World Bank credit increased European tourism weak policy enforcement, transport links for crew for sustainable blue growth. since joining the Schengen affecting yacht arrivals. changes. It also has flexible entry Area and actively supports requirements for travelers the Mediterranean’s Blue from countries like the U.S., Economy as part of UfM and Canada, and the U.K. the BlueMed Initiative. Marketings Since 2016, Cabo Verde has After travel restrictions Grenada, known as “Pure Croatia, over the last decade, Campaigns seen rising demand from ral- eased, the Canary Islands Grenada,” was named the has developed several mar- lies, races, transiting fleets, launched “The Warmest 2023 Yachting Destination keting campaigns focused on and fishing yachts, partic- Welcome of All” cam- of the Year, hosting events nautical tourism. The 2023 ularly those traveling from paign, boosting European like the Carriacou Regatta campaign highlighted its Europe to the Caribbean tourism. By 2023, this led to Festival and running a entry into the Schengen Area and in events like ARC+. This increased demand and air tourism campaign since and off-season attractions. trend is expected to persist connections, making it a top 2017 to showcase its varied with growing vessel numbers Spanish tourism destination, attractions. and international interest. as Exceltur reported. Infrastructure São Vicente, along with Sal The Canary Islands boast 42 Grenada has built its infra- Over the past two decades, and Santiago, has a degree ports with over 10,000 moor- structure and workforce Croatia has grown its yacht- of yachting infrastructure, ings, managed by various over two decades to cater to ing infrastructure from 12 to with São Vicente featuring sectors. To encourage in- luxury experiences, with 10 over 50 marinas, with contin- a marina and the latter two vestment, they grant conces- marinas offering entertain- ued plans for improvements. proposing marina projects. sions and are implementing ment and attractions, includ- This growth, starting after All three islands experience a Blue Economy strategy to ing the notable Port Louis the 1980s, was boosted by consistent yacht anchor- promote sustainable nautical Marina in St. George’s. the Adriatic Croatia Interna- ages, especially during the tourism and enhance infra- tional Club’s development of peak season from November structure. central marinas. to February. The Cabo Verde archipelago, The Canary Islands, near Grenada, at the southern end Croatia, situated at the around 800M southwest of North Africa, comprise seven of the Windward Islands in crossroads of Central and the Canary Islands, consists large and several smaller the Caribbean, is made up Southeast Europe, boasts of ten larger and four smaller islands, covering about 7,300 of three islands—Grenada, an archipelago of 1,244 islands, totaling 4033km2. square kilometers. square Carriacou, and Petite Marti- formations along the Location Separated from the West kilometers. nique—with a population of Adriatic coast. This includes African coast by a 325M wide around 112,000. 78 islands, 524 islets, and channel, it forms a horseshoe 642 cliffs and reefs, with 49 shape open to the west. islands inhabited year-round near the shore. Cabo Verde Yacht Tourism Study 2023 52 Section 7 Cabo Verde Canary Islands (Spain) Grenada Croatia The Cabo Verde islands Temperatures in the Canary The climate in Grenada is In August, the Adriatic sees offer favorable weather Islands range from 22°C tropical year-round, hot and average temperatures of conditions. The region has to 27°C, although the best humid, with a cooler season about 23°C in the north and consistently high tempera- time is between April and from December to March and 26°C in the south. Winters are Climate tures that are not excessively September. a hotter, rainier period from colder in the north, averaging scorching, coupled with June to November. 7°C in February, while the minimal rainfall. south has milder winters, with average temperatures around 10°C. The Cabo Verde islands, In the Canary Islands, Grenada enjoys steady east- Croatia’s coastal region has primarily in the path of north- northeast trade winds are ward trade winds, particular- consistent winds year-round, east trade winds, experience prevalent, with distinct ly reliable from December to ideal for both professional over 80% of winds from this acceleration zones. May, supplemented by gentle and recreational sailing. Its Wind direction, with occasional westerly breezes in summer. varied wind patterns, safe northerly or easterly winds. Sailors there often adjust Adriatic waters, and abun- The average wind speeds are their routes to the winds’ shift dance of islands, bays, ports, around 10-12 knots. from northeast to southeast. and landmarks make it a top yachting destination. In Cabo Verde, swells can The Canary Islands experi- Grenada’s Atlantic coasts In Croatia, the tidal fluctua- unpredictably arise from ence a tidal range of about often have moderate to tion is around 30 cm during various directions due to dis- 2 meters during maximum rough waters due to trade spring tides. The prevailing tant storms, impacting most mean spring tides. The winds, with currents flowing current usually moves west- anchorages, especially near Canary Current, influenced westward and intensifying ward, but its speed and direc- Currents and large beaches. Local winds by northeast trade winds, between islands. Tides tion can vary with strong or Tides are steady, but storms to the flows southwest through the occur once or twice daily persistent winds, particularly north in winter (December islands at about 0.5 knots, with minimal variation, and from the east or southeast, to May) or south in summer occasionally increasing to 2 occasional mini-tidal waves potentially increasing the (June to November) can knots in summer. can lead to unusually high current’s speed significantly. generate powerful, far-reach- tides, particularly when trade ing swells. winds are weak. Navigational Level 3 - Difficult: 20 days or Level 3 - Difficult: 20 days or Level 3 - Difficult: Level Level 1: Easy - Requires five Degree of 400 miles as skipper 400 miles as skipper 3 - Difficult: 20 days or 400 days or 100 miles as skipper Difficulty miles as skipper on a similar yacht. In Cabo Verde, yachts must For yachts arriving in the Yachting in Grenada adheres In Croatia, the Ministry of the adhere to regulations for Canary Islands from outside to international standards, Sea, Transport, and Infra- high standards and safety Europe, it’s recommended with all vessels required to structure oversees yachting as outlined in the Maritime (though not mandatory) to enter through designated regulations, including Code of Cabo Verde, Law complete clearance at a Port Ports of Entry. Visitors must licensing and safety. Boats No. 24/X/2023. This law sets of Entry and obtain clearance have a valid passport and from Schengen areas, as Regulatory legal parameters for secure when leaving, as it may be proof of return or onward well as non-Schengen boats Framework and sustainable maritime required by other countries’ travel. Travelers from the pre-checked in a Schengen operations, in line with inter- authorities. U.S., Canada, the UK, the country, are not required to national standards. British Commonwealth, most report to maritime border of Europe, South Korea, and authorities upon entering Japan do not need a visa for Croatian waters. entry. Cabo Verde Yacht Tourism Study 2023 53 Section 7 Cabo Verde Canary Islands (Spain) Grenada Croatia Cabo Verde complies with In the Canary Islands, In Grenada, while specific In Croatia, sea safety is para- international ocean safety skippers must have an certification for chartering mount, with a 24/7 operating agreements, including SO- International Certificate of isn’t required, evidence of Search and Rescue service Safety LAS for ship safety standards Competence (ICC) or Inter- sailing skills is needed. If managed by the National Regulations and the STCW Convention national Sailing License and capability is in doubt, based Maritime Rescue Coordina- for seafarer training and Credentials (SLC) to legally on a sailing resume, hiring a tion Centre (MRCC) in Rijeka. certification. navigate European waters. skipper at personal cost may be required. Cabo Verde has streamlined For private use, a yacht must Grenada’s Yachting Act of In Croatia, at least one erson the sport fishing licens- register in the 7th category 2000 regulates commercial on board a yacht, particu- ing process with online and pay a fee. For commer- yachting, detailing the larly if chartered without a applications, but personal cial purposes like rentals, it requirements for operating skipper, must possess Nav- interactions with department should be in the 6th category, yachts for hire or reward in igational and VHF licenses. staff and slow processing which provides tax advan- the region. These licenses, issued by Licensing times can be challenging tages. Commercial users are Croatian Port Authorities, for those with tight vacation recommended to register cover aspects of navigation, schedules. under the Spanish flag. safety, and communication. Holders of foreign licenses should confirm their validity in Croatia. In Cabo Verde, travelers can The Canary Islands offer Grenada offers attractions Croatia offers recreational hike the volcanic terrain, activities like rowing, water like beaches, waterfalls, activities and attractions visit beaches, participate in skiing, sailing, motorboating, chocolate factories, and rum in coastal towns and cities, watersports like windsurfing, kayaking, diving, surfing, distilleries, alongside notable such as Dubrovnik’s Old play golf, and experience kitesurfing, windsurfing, and diving sites. The island Town, Split’s Diocletian’s Recreation the local culture through sport fishing. Whale watching is known for its yachting Palace, and Trogir, all UNES- and on-land music and festivals, with São is another attraction in the events, supported by the CO sites. Visitors can enjoy amenities Vicente island being notable area. Marine & Yachting Associ- cultural sites, museums, for such events. ation of Grenada and the galleries, festivals, and local Grenada Yacht Club, which cuisine, including seafood organize races and enhance and traditional dishes, at the yachting culture. waterfront restaurants. Current fiscal policies include In the Canary Islands, boats Cruising permit fees in this Boat owners and occupants a 50% discount on marina over 8 meters face a regis- region are determined by the must pay an online sojourn entry fees for a set period. tration tax, but category 6 size of the vessel, starting tax for overnight stays on lei- On Sal island, previous fees registered boats are exempt at $50 EC for boats up to 40 sure boats over seven meters, totaling €12 from immigra- from the 12% tax. Used feet, and increasing to $150 based on length and stay tion and maritime police have yachts’ tax values are deter- EC for boats over 80 feet. duration. Keep the payment Taxes been waived after the COVID mined annually. To avoid tax There is an exemption from receipt onboard as proof. pandemic, allowing for free evasion, boats changing to these fees for boats moored Non-EU boats entering the access. category 6 within 4 years of in shipyards. EU must clear customs and purchase or used privately have documents proving the must pay due taxes. vessel’s community goods status. Cabo Verde Yacht Tourism Study 2023 54 Section 7 Cabo Verde Canary Islands (Spain) Grenada Croatia Cabo Verde faces a potable Fresh water quality differs In Grenada, marinas provide The Croatian coast boasts water crisis due to severe across the Canary islands; essential services like water, numerous marinas from drought and inconsistent bottled water is available in electricity, and fuel for visit- Umag to Dubrovnik, offering rainfall, deterring yachts supermarkets. The standard ing vessels. over 12,500 sea berths and from visiting the islands due electricity supply is 220 7,500 land berths. These Utilities to insufficient drinking water volts at 50 Hz, the same as in marinas are well-equipped supplies. mainland Europe. with facilities like restaurants and shops and are easily accessible by various modes of transportation. Cabo Verde has three In the Canary Islands, out In Grenada, the tourism Croatia’s workforce is well- educational institutions of the 1,985,802 residents sector, especially yachting, is versed in the yachting sector, dedicated to marine research aged 16 and over, 1,178,878 a key economic driver. For ex- including professionals in and technical training for the are part of the labor force. ample, in 2003, the yachting boat maintenance, repair, yacht and nautical tourism Of these, 999,057 are industry directly employed yacht chartering, and marine industry. employed and 179,822 are 250 people, highlighting its services. This skilled work- unemployed, resulting in a role in job creation. force ensures that yachts Personnel 15% unemployment rate. As are well-maintained, safe, of August 2023, 15.8% of and equipped to meet visitor the workforce is employed needs. in hospitality, and 50.6% in services. In Cabo Verde, Marina The Canary Islands provide Grenada offers services for Croatia provides mainte- Mindelo caters to yachts services for yachting tourists, yachting tourists including nance and repairs, provision- with services like refueling including utilities, supplies, utilities, supplies, mainte- ing, marina facilities, charter Services and utilities, while the Port maintenance, provisioning, nance and repairs, super- services, healthcare, and Available of Praia accommodates food at prices comparable markets, convenience stores, accommodation for yachters. commercial ships. to mainland Europe, marina marina facilities, charter facilities, charter services, services, medical services, and healthcare. and accommodation. In Cabo Verde, the yacht bro- The Canary Islands boast a Grenada’s yachting sector Croatia’s yachting industry kerage sector mainly features range of yacht and sailboat includes international yacht is backed by a network of boutique charter companies rental services, includ- brokerage firms, supported brokers and associations Brokers offering half-day to full-day ing short trips, day-long by organizations like the Ma- like the Croatian Boating and Broker sailing trips around the excursions, and season-long rine & Yachting Association Industry Association (CBIA), Associations archipelago. charters, all requiring a of Grenada (MAYAG). focusing on collaboration, captain and crew. standard-setting, and pro- moting responsible yachting practices. Cabo Verde Yacht Tourism Study 2023 55 Section 8 Recommendations Through research, six opportunities were identified across Santiago, Sal and São Vicente as growth areas for Cabo Verde to grow its yacht tourism. These insights largely were derived from interviews with the demand side (brokers, rallies and races) and research on the supply side (marina, government and private sector interviews locally). These recommendations were developed based on a combination of information gathered during research in Cabo Verde as well as best practices seen in other destinations (including the destinations identified in the competitor analysis as well as market analysis—Seychelles, Costa Rica, Canary Islands, Grenada, and Croatia). These six opportunities are: Table 8 Overview of Opportunities Opportunities Description Enhancing local capacity and skills specific to yacht tourism needs, providing employment Building Local Capacity and Skills opportunities for the local workforce in Cabo Verde. Developing essential infrastructure in strategic locations like Mindelo, Sal, and São Vicente to Developing Infrastructure accommodate the increasing demand for yacht tourism and ensure a smooth flow of vessels and tourists. Streamlining Entry and Registration Simplifying vessel entry and registration procedures and standardizing yachting policies to Procedures streamline administrative processes and make Cabo Verde more attractive to yacht enthusiasts. Establishing stronger public-private partnerships and fostering local advocacy for yachting to Building Public-Private Partnerships create a conducive environment for sustainable growth in the yacht tourism sector, aligning the interests of government and private stakeholders. Promoting, marketing, and branding Cabo Verde as a premier yacht destination among key customer segments from key international boat shows and boating magazines. This can support Promotion, Marketing, and Branding all segments, but is especially important in the luxury charter market as seen in the luxury charter broker survey results. Encouraging investment in yachting to inject capital into the sector, drive further development, Encouraging Investment and maintain competitiveness in the global yacht tourism market. For each of these areas, specific recommendations have been developed for Cabo Verde for both new or modified policies or investment projects that could be implemented. Below recommendations are listed, organized by category. Further information is included on priority, timeline, feasibility, profitability (for investments), and sustainability for each recommendation. We have also provided information on the estimated cost of each recommendation based on our review of comparative destinations and case studies. Cabo Verde 56 Yacht Tourism Study 2023 Section 8 8.1. Building local capacity and skills for the needs Recommendation 2 - Awareness Program across Sal, of these vessels Santiago and São Vicente Islands Through this research, it has been identified that Spread EMAR program awareness to Sal and there is a challenge locally in developing the Santiago through city workshops for students and right skills needed for these vessels. Brokers, for parents, highlighting its economic impact in marine example, in the broker survey, expressed that local tourism, with government involvement. Presently, skills needed improvements in crews and marina staff EMAR has several related programs to yacht tourism upon visiting Mindelo, for instance. Capacity building based out of São Vicente. However, the EMAR training in yacht related skills is urgently needed. These skills program, as described in the Current State section, include both technical expertise such as mechanical, is relatively new and the program has not yet been electrical, engineering, navigation, repair as well as distributed across Sal and Santiago islands. Developing those related to hospitality. more awareness across São Vicente, Sal and Santiago of the EMAR program in Mindelo on the economic impact 8.1.1. Recommendations of yachting/salary/potential revenues is recommended. The awareness program can involve workshops in major Upon initial review, as shown in the Current State cities across Sal, Santiago and São Vicente islands and section, the EMAR program fills academic gaps in focus on inviting high-school and university-level the main areas needed for yacht vessels: electrical students and parents to learn more about careers in repair, mechanical repair, culinary, crew and the marine tourism sector. During these workshops, customer service, and deck maintenance. EMAR and defined government representatives, from organizations like the Ministry of the Sea, can discuss Recommendation 1 - Career Development/Internship the program and the economic impact that can come Program Development to graduates of the program in the industry. Longer term, it is recommended satellite programs of EMAR However, more public investment in the EMAR on these islands. Community outreach and awareness program is needed in order to generate a larger raising of the positive economic impact of the tourism pipeline of equipped local staff coming out of industry generally and yachting in particular is highly the program ready to work on leisure vessels. recommended. The community needs to be assisted The recommendation is for EMAR to develop a in identifying business and career opportunities and career development or internship program aimed the financial services should be encouraged to develop at funneling graduates from the various tracks into imaginative strategies for enabling participation in key jobs at institutions across Cabo Verde, including the boating/yachting sector as it develops. This is at Marina Mindelo, Onave Shipyard, or Cabnave especially true in Sal and Santiago where the potential Shipyard, or alternatively with repair companies (e.g. for development is high but the understanding of the BoatCV in Mindelo) or charter companies that work in industry seems deficient. After all, a successful tourism Cabo Verde (usually operating in Sal or São Vicente). industry depends on the buy-in of the local community Such an internship program can be funded by public and, given that so much of Cabo Verde’s territory is investment aimed at developing more linkages ocean, it is from that resource many citizens will need between academics and the local workforce. to derive their livelihood. Raise awareness of the EMAR program in São Vicente and Mindelo among students and families and introduce a tax relief incentive to encourage Cabo Verde Yacht Tourism Study 2023 57 Section 8 private sector participation in yacht training, industry. To harness this potential effectively, this aligning it with existing tourism employment report proposes the introduction of a strategic policy programs. Outreach to fishers, goods and services aimed at promoting yachting skill development and providers and those in the hospitality industries is enhancing the country’s reputation as a premier also recommended. The EMAR program, especially as yachting destination. This report’s recommendation it is in its first year, needs a consolidated awareness entails the establishment of a government-sponsored campaign in São Vicente and in particular Mindelo as degree and/or certification program scholarship, well as the enrollments are still growing and the local which will be awarded selectively to individuals students and families need to learn about the program with a demonstrated commitment to the yachting and its differences as compared to other institutions sector. In exchange for this educational opportunity, locally such as ISECMAR. This report recommends scholarship recipients will be required to commit the establishment of a tax relief incentive scheme to a five-year period of working within Cabo Verde’s that encourages private sector participation in yachting sector. This initiative draws inspiration yacht training programs conducted at marinas and from similar programs in other destinations, such as onboard vessels. This initiative should be strategically Greece, Antigua and Barbuda, and Italy, which have integrated with existing training programs that successfully boosted their yachting industries through prepare individuals for employment in the tourism selective scholarship programs. industry. By adopting this policy, Cabo Verde can cultivate Recommendation 3 - Scholarship Program for EMAR a skilled workforce, stimulate industry growth, and solidify its position on the global yachting To tap into Cabo Verde’s yachting potential, map while contributing to economic development. introduce a government scholarship program The government can establish a system for for yachting degrees/certifications. Cabo Verde monitoring scholarship recipients’ compliance with has immense potential for the growth of yachting the commitment to work in Cabo Verde, and provide as a lucrative market segment within its tourism necessary support and incentives for their professional growth. Other destinations, such as Antigua and Table 8.1 Overview of Recommendations - Building Capacity Recommendation Estimated Cost Owner Timeline Feasibility Sustainability Raise awareness of the High: EMAR can collaborate EMAR program across with local stakeholders to Moderate - Increased multiple islands in Cabo EMAR, with $75,000 USD for disseminate information, awareness can lead to the Verde, specifically support from awareness program Urgent making this recommenda- economic benefits associ- São Vicente, Sal, and Ministry of development and (12 months) tion feasible. EMAR just ated with yachting, but it Santiago, emphasizing the Sea implementation launched one year ago in may take time to realize the the economic impact of 2022 so it is an opportune full impact. yachting, salaries, and time. potential revenues $75,000 USD for EMAR, with Career Development/ High: There are the requi- High: This program can awareness program support from High Internship Program site stakeholders in place to lead to the growth of quali- development and Ministry of (1-3 years) Development make this happen. fied talent in Cabo Verde. implementation the Sea Cabo Verde Yacht Tourism Study 2023 58 Section 8 Recommendation Estimated Cost Owner Timeline Feasibility Sustainability Establish a govern- The sustainability of this Ministério Moderate to High - While ment-sponsored program can be evaluated das Finanças the implementation of a scholarship program to by tracking the number e Fomento scholarship program is promote yachting skill of scholarship recipients, $25,000 USD per Empresarial Long-term - feasible, it may require the development, enhance their contributions to the year for scholarships (Ministry of (5-10 years) development of selection Cabo Verde’s reputation yachting sector, and the Finances and criteria, monitoring mech- as a yachting destina- impact on Cabo Verde’s Business De- anisms, and a commitment tion, and boost economic reputation as a yachting velopment) tracking system. development destination. 8.2. Developing infrastructure to support increa- have the ability to accommodate at a minimum 50 ves- sed demand across Mindelo, Sal, and Santiago sels, the largest vessels of which will be on the deepest end. This study can guide the government and priva- Competing at the intersection of luxury ecotou- te sector in identifying suitable locations and making rism and yachting will require improvements in informed decisions about whether to invest in a new infrastructure. This includes marina development marina. Evaluating the costs and benefits of different and improvements in current marina infrastructure locations, such as Palmeira and Santa Maria, will be a through breakwaters, wave attenuation systems and critical aspect of this study. Collaboration in the form other mechanisms. of a public-private partnership can ensure that the study is conducted effectively and that investment de- 8.2.1. Recommendations cisions align with the long-term sustainability of the island’s tourism industry. Recommendation 1 - New Marina Development Study in Sal Island, including Palmeira and Santa Maria Feasibility study to identify suitable locations for a marina catering to sail and motor boating in San- Perform a feasibility study for a new marina in ta Maria is recommended. The study should include Santa Maria on Sal Island and collaborate in a environmental impact assessments, engineering sur- public-private partnership to ensure informed in- veys, and a market demand analysis to ensure a viable vestment decisions align with tourism industry project. Given the lack of consensus on the placement sustainability. There have been relevant studies com- of the “premier” marina on Sal, this report recom- pleted by ENAPOR and other organizations to assess mends a cost benefit analysis be conducted among a new sites in Sal for a marina, and in the past, ENA- variety of locations, chief among them Palmeira and POR has received proposals for marina development Santa Maria. Santa Maria does present more oppor- in Palmeira. However there has not yet been a mari- tunities for PPP as it is an attractive land based des- na development study for a new marina in Palmeira tination with several hotels (some already operating and Santa Maria. Conducting a feasibility study for a at high international rating standards). Public invest- new marina in Santa Maria, on Sal Island, is essential ment in Sal infrastructure is recommended, which will to understand the environmental, engineering, and create incentive for private sector investment in the market dynamics. The feasibility study should focus build-out of marina and related amenities. With pro- on interim solutions, short-term and long-term mari- per shelter and protection, private investment may be na infrastructure and operations. Interim and short- attracted for repair, supplies, and logistical needs to term solutions should include a new dock that would make yachting destinations in Sal viable. Cabo Verde Yacht Tourism Study 2023 59 Section 8 Recommendation 2 - Breakwater Development in taken. Most competitor or model yacht destinations Marina Mindelo (including Croatia, Seychelles, Costa Rica, Canary Is- lands, and Grenada) have TravelLift machines in their Conduct an environmental impact analysis and re- marinas to support repair processes, in order to prevent view the existing engineering feasibility study for all boats from having to be sent to shipyards including the breakwater at Marina Mindelo. Marina Minde- Onave and Cabnave. lo has developed an engineering feasibility study and analysis related to the implementation of a breakwater In addition, with the development of a breakwater in the marina. This report recommends an environ- at Marina Mindelo, there is potential to expand mental impact analysis, as well as review of the pre- the marina further for 100 new vessels by develo- vious engineering feasibility study (and development ping the marina to hold 100 new slips. This would of any net-new analysis) be completed. Short-term augment and improve the quality of the existing mari- development of a breakwater is also encouraged, with na facility and increase the capacity to invite new ves- the government taking the lead. A breakwater would sels during and outside of the high season. not only enhance the safety of the marina but also attract investors interested in expanding the marina Recommendation 4 - Feasibility Study for Courtesy to accommodate more yacht traffic. This infrastruc- Float Development in Santa Maria Using Existing Pier ture improvement, while requiring a significant initial investment, has the potential to generate long-term It is necessary to study the long-term feasibility of profitability by drawing more visitors and boosting establishing a courtesy dock in Santa Maria, Sal. A tourism. temporary float, funded by embarkation fees, aims to provide temporary mooring for boats, enhancing yacht Recommendation 3 - Enhanced Services at Marina tourism readiness and increasing the island’s appeal to Mindelo enthusiasts. The goal is to amortize costs to encoura- ge potential private sector investments. In the interim, Assess the demand for services at Marina Mindelo creating a courtesy dock in Santa Maria could meet the through a short-term feasibility study, collaborate needs of yacht tourists. with private enterprises, and install infrastructure aligning with practices in other competitive yacht This report suggests that the existing dock in Santa destinations. Maria adopt policies and recommendations to faci- litate the collection of embarkation fees, contribu- A feasibility study in the short term can assess the de- ting to a maintenance and expansion fund as needed. mand for these services and the amortization of costs. The Santa Maria dock is suitable for serving people in Collaborative efforts with private enterprises can en- both Palmeira and Santa Maria. Project costs should sure that services cater effectively to yacht tourism, be amortized to recover expenses and attract private improving the marina’s profitability and long-term investments, thus enhancing the island’s readiness for sustainability. The installation of a TravelLift has long yacht tourism and its attractiveness. been requested by the local management at Mindelo. Even allowing for the cost of management fees and ope- A courtesy float, a temporary or small-scale floa- rating expenses, the investment could be easily amor- ting structure, would provide a safe and convenient tized by user fees over a few years. It is recommended mooring point, allowing yachts and boats to access that it be installed and that a comprehensive feasibility Santa Maria without a fully equipped marina. Im- study including future proofing of all the needs of ser- plementing a courtesy float in Santa Maria would help vices including provisioning of spare parts be under- assess yacht tourism demand, collect visitor preferen- Cabo Verde Yacht Tourism Study 2023 60 Section 8 ce data, and inform future marina development plans understand that a tourism development plan was re- while enabling amortization. Thus, we would recom- cently completed in Tarrafal, but a formal carrying mend a comprehensive feasibility study be performed capacity analysis should be completed to understand to study the long-term sustainability and viability of the carrying capacity of Tarrafal for tourists, fishing such an initiative in Santa Maria. boats and yachts. Recommendation 5 - Repair Services in Sal The carrying capacity will consider the environmental impacts not only from the vessels themselves such as Encourage private sector investment in Sal’s re- pump-outs and fuel, but also will analyze sun levels pair and maintenance services by addressing cus- needed to ensure seagrass beds remain healthy. There toms and logistics challenges, promoting gover- are new products for docks that allow sunlight to pass nment-private collaboration, and engaging with through them. These and other measures to protect BoatCV and other companies for critical partner- the environment will be discussed in the study. ships to enhance profitability and yacht traffic. Based on what was heard from the charter interviews Recommendation 7 - Creating a recreational cen- completed, as well as in the broker survey results, sti- ter near Marina Mindelo with an interim, short- mulating private sector investment in Sal’s repair and term and long-term plan to attract people and excite maintenance services is critical. Addressing customs yacht customers and logistics challenges can alleviate issues faced by charter companies and yacht owners. Collaboration Establishing a recreational center near Mari- between the government and private enterprises can na Mindelo requires initial planning, leveraging create a favorable environment for such investments, existing attractions, and considering the develo- potentially leading to profitability and increased yacht pment of a new center in the future. To establish traffic. Engagement with BoatCV and other companies a recreational center near Marina Mindelo that will to partner with ENAPOR or the Port of Palmeira in attract people and excite potential yacht customers, Palmeira will be critical. a well-structured three-stage process is essential. In the planning phase, begin with a needs assessment to Recommendation 6 - Comprehensive Carrying Capacity understand customer preferences and conduct market Analysis in Tarrafal research to identify opportunities and competition. Select a location within or near the marina, consi- Conduct a study in Tarrafal, emphasizing the need dering accessibility and alignment with the marina’s for a carrying capacity analysis to guide develo- theme. Develop a concept for the center and create a pment while preserving natural beauty. Conduc- detailed financial plan to secure funding. Instead of ting an in-depth analysis to determine the maximum building a new center, it would be prudent to leverage sustainable capacity for yacht tourism in Tarrafal is existing centers to channel visitors to, including the crucial for the region’s long-term sustainability. This Belem Tower Replica, Mindelo Sea Museum, or Hotel study should encompass environmental and social Pont D’Agua, located on the water, which can serve as factors and involve close collaboration between go- interim attractions to engage potential customers. At vernment agencies, environmental experts, and the the Hotel Pont D’Agua, for instance, there can be hos- local community. The findings can guide future deve- ted poolside events, special packages combining stays lopment and investment decisions while ensuring that at the hotel with access to the marina’s facilities. In Tarrafal’s natural beauty is preserved. Researchers the future, development of a recreational center can be proposed. Cabo Verde Yacht Tourism Study 2023 61 Section 8 Recommendation 8 - Wastewater and Sewage Disposal Immediate enactment and enforcement of these Regulations in Ports and Marina regulations are essential to prevent pollution from ports and marinas, safeguard marine ecosystems Cabo Verde is developing sustainability policies and public health, and maintain Cabo Verde’s in- for its niche tourism and should review similar ternational reputation and compliance with ma- destinations for effective initiatives for both the ritime agreements. The significance of enacting and present and future sustainability. Cabo Verde is enforcing these regulations urgently cannot be overs- making efforts to promote sustainable tourism prac- tated. Ports and marinas serve as vital hubs for mari- tices, but the country is still developing its sustaina- time activities, but they can also be sources of pollu- bility policies compared to some of the other destina- tion. Without proper wastewater and sewage disposal tions with similar characteristics. Recommendations regulations, these areas can discharge harmful conta- include a review and analysis of sustainability policies minants into coastal waters. This pollution threatens across this niche market to find a combination of ini- marine ecosystems, including coral reefs and aquatic tiatives and policies that works for Cabo Verde now habitats, and can disrupt the natural balance of these and to ensure a sustainable future. fragile environments. Additionally, the improper dis- posal of wastewater and sewage not only harms the en- Enforcing policies requiring sewage treatment on vironment but also poses health risks to those in close vessels and designating all Cabo Verde waters as proximity, including marina staff, tourists, and local a No Discharge Zone enhances Cabo Verde’s ima- communities. Urgent regulations are essential to pro- ge as a sustainable yacht tourism destination. The tect public health and safety. Moreover, Cabo Verde’s sustainability policies introduced are crucial for ensu- commitment to international maritime conventions ring the responsible and environmentally conscious and agreements necessitates adherence to stringent development of yacht tourism in Cabo Verde. Man- wastewater and sewage disposal standards. Failure to dating that vessels must either have on-board treat- comply could lead to reputational damage and poten- ment devices (Type I or Type II MSD) or holding tanks tial sanctions. (Type III MSD) for waste disposal promotes responsi- ble sewage management, preventing pollution of Cabo Recommendation 9 - Policy on Charter Operations Verde’s pristine waters. Designating all Cabo Verde waters as a No Discharge Zone reinforces the commit- Cabo Verde’s existing regulations for recreational ment to protecting the marine environment. These boating can be improved to enhance professiona- policies not only enhance the regulatory framework by lism and the country’s reputation as a yacht tou- setting clear standards but also foster a positive image rism destination. Currently, Cabo Verde possesses of Cabo Verde as a responsible and sustainable yacht regulations under Decree Law 37/2015 and Decree Law tourism destination, further attracting conscientious 2/2023 that govern recreational boating operations to travelers and investors to the region. The implemen- some extent. However, the existing framework lacks tation of urgent regulations for wastewater and sewa- specificity when it comes to charter companies. While ge disposal in ports and marinas is an imperative for the regulations are in place, there is a high opportu- Cabo Verde and it has not been made clear that these nity for improvement by further defining and refining regulations currently exist. This pressing matter de- these policies to cater specifically to charter compa- mands immediate attention to ensure environmental nies operating within the country. The impact of this sustainability, uphold international standards, and enhanced policy approach could be substantial. By ad- safeguard the health of coastal ecosystems. dressing charter companies explicitly, Cabo Verde can clarify their roles and responsibilities within the re- Cabo Verde Yacht Tourism Study 2023 62 Section 8 gulatory framework. This includes setting clear safety nation’s commitment to modernizing its maritime po- standards, outlining requirements for vessel main- licies and procedures, fostering responsible tourism, tenance, and specifying responsibilities concerning and ensuring long-term sustainability in this crucial client management. Such clarity would promote res- sector. ponsible and safe charter operations while providing legal and operational guidelines for charter compa- Recommendation 11 - Policies Governing Boat nies. Furthermore, these refined policies can establish Movement and Liabilities specific licensing requirements for charter companies. This ensures that operators meet predefined qualifi- Cabo Verde needs policies to address boat move- cations and prerequisites, enhancing professionalism ment, seizure, and impoundment to ensure effi- and competence within the industry. Clear guidelines cient management, safety, and sustainability in on passenger capacity, payment structures, and per- maritime activities. Cabo Verde currently lacks missible length of stay for charter tourists can also be policies governing the movement, seizure and im- set. These measures enhance transparency and fair- poundment of boats, such as those docked in Marina ness for both charter companies and tourists, thus Mindelo, and the associated liabilities. This leads to bolstering the reputation of Cabo Verde as a yacht marinas and private sector representatives often left tourism destination. on their own when it comes to taking action on idle boats. This gap presents a medium-level concern as Recommendation 10 - Policy on Private-Owned it leaves potential issues unaddressed. Specifically, Foreign-Owned Vessels the absence of regulations regarding boat movement and potential liabilities could lead to challenges re- Clear policies are needed to reflect the nation’s lated to the management of abandoned vessels. To commitment to modernize maritime policies for mitigate this concern, it is advisable for Cabo Verde responsible tourism and sustainability. Currently, to consider the creation of policies that address boat Cabo Verde possesses regulations under Decree Law movement, seizure, or impoundment. Such policies 37/2015 and Decree Law 2/2023 that govern recreatio- should delineate clear procedures for the movement of nal boating operations to some extent. However, the boats within marinas and ports, taking into account existing framework lacks specificity when it comes to safety, environmental, and logistical factors. Additio- foreign-owned leisure vessels (yachts) for primarily nally, these policies should establish mechanisms for private use. Cabo Verde currently lacks defined poli- addressing liabilities in case of accidents, damages, or cies that govern the terms under which privately-ow- abandonment. The creation of a regulatory framework ned foreign vessels can remain in the country. The would not only ensure the efficient management of creation of clear and standardized regulations would boats but also enhance the overall safety and sustai- provide foreign vessel owners with certainty regar- nability of maritime activities. ding the terms and conditions of their stay, potentia- lly attracting more private vessels to Cabo Verdean Recommendation 12 - Review of Duty on Parts waters. Additionally, revenue generated through taxes and fees could contribute to the country’s economic Reassessing and potentially reducing duties on development. In conclusion, while Cabo Verde has spare parts is crucial to fostering a cost-effective made strides in regulating its maritime sector, there is maintenance and repair ecosystem, with recom- ample room for refinement and expansion, particular- mendations for lenient tax policies like customs ly in addressing charter operations and privately-ow- duty exemption and VAT exemption on spare part ned foreign vessels. The proposals to create a “Sea imports. The review of duties on parts represents a Balcony” and introduce electronic systems signify the pivotal step in enhancing the regulatory framework Cabo Verde Yacht Tourism Study 2023 63 Section 8 for yacht tourism in Cabo Verde. By reassessing and goods promoting environmental conservation and potentially reducing these duties, the local supply of renewable energy, along with rebates for busines- spare parts near marinas can flourish. This, in turn, ses using rooftop photovoltaic equipment. establishes a more cost-effective and efficient main- • The Canary Islands: Renowned for possessing Eu- tenance and repair ecosystem, catering to the needs rope’s most advantageous tax regime, the Canary of yacht owners and charter companies. Collaboration Islands operate under a unique tax system, sanc- between the government and customs authorities is tioned by the EU, designed to counterbalance the vital to create an environment that is conducive to limitations brought by their geographic isolation. local suppliers and reduces the overall cost of yacht This system features a local consumer tax set at a maintenance, thereby increasing the profitability of standard rate of 7 percent, substantially below the stakeholders in the yacht tourism sector. This report EU’s mandated minimum of 15 percent for its mem- recommends reducing customs duties for required ber states. Furthermore, the region boasts Europe’s materials and equipment by 25 percent the current most competitive corporate tax rate, fixed at 4 per- duty as well as a reduction on VAT rate for specifi- cent, albeit with certain conditions and restrictions cally the import of spare parts - vital to boat repair in place. These fiscal policies significantly enhance - to 10 percent from 15 percent. We have observed the islands’ appeal to investors. international case studies such as Costa Rica, Sey- chelles, and the Canary Islands, where a reduction We would recommend implementing these improve- in current customs duties as well as a reduction in ments and evaluating performance in vessel arrivals VAT, specifically for equipment and parts, has led across the initial ten-year period of implementation. to success. These include: Recommendation 13 - Enforcement Policy around • Costa Rica: In Costa Rica, a notable policy exempts Wreckage up to two land, air, and/or sea vehicles acquired for personal use, including yachts, both private and In the pursuit of environmental sustainability and charter, from all import and value-added taxes and responsible maritime practices, it is imperative for other tariffs. This law is regarded by industry ex- Cabo Verde to adopt and enforce a stringent policy perts as a significant turning point for the yachting regarding wreckage management. While the urgency industry. of this matter may not be immediate, its long-term im- • Seychelles: In Seychelles, yachting activities be- plications for both marine ecosystems and the tourism nefit from special tax rates under the Business Tax sector are substantial. In interviews conducted, this was Act, with yacht operators enjoying tax advantages raised as an issue that should be addressed sooner ra- on income and capital investments. In 2019, the in- ther than later. The core objective of such an enforce- dustry contributed USD 2.52 million in taxes, with ment policy is to prevent the accumulation of debris in six different taxes collected, including VAT and the marine environment and promote the sustainable CSR. Seychelles offers incentives for both locals reuse of these materials. Here are key points that under- and foreigners to register their yachts, with eligible line the significance and benefits of such a policy: vessels under 15 years receiving tax exemptions on earnings, crew salaries, sales, and transfers. Howe- 1. Environmental Preservation: The marine envi- ver, these tax benefits have led to some exploiting ronment in Cabo Verde is a vital asset, attracting loopholes to minimize taxes. The government re- tourists and sustaining fisheries. Preventing the gulates yacht importation, taxation, and licensing, accumulation of wreckage, such as abandoned and offers special tax rates for yacht charters. Ad- vessels or marine litter, is essential to safeguar- ditionally, tax incentives are provided for imported ding these valuable ecosystems. Left unaddressed, Cabo Verde Yacht Tourism Study 2023 64 Section 8 wreckage can harm marine life, damage coral reefs, sengers. Knowing that a destination has measures in and negatively impact water quality. place to address and remove hazards like abandoned 2. Tourism Attraction: The appeal of Cabo Verde as wrecks instills confidence and makes the destination a yacht tourism destination hinges on its pristine more appealing. Yacht enthusiasts often have a deep coastal areas and marine life. An enforcement poli- appreciation for pristine natural environments. Re- cy around wreckage not only protects these attrac- gulations that emphasize responsible vessel disposal tions but enhances them. Visitors are more likely to and removal of wrecks demonstrate a commitment to choose destinations that prioritize environmental environmental preservation. preservation, thereby bolstering the tourism in- dustry. Destinations that prioritize marine ecosystem 3. Resource Management: Rather than viewing protection and effectively manage abandoned wreckage as a liability, Cabo Verde can leverage it boats and wrecks gain a positive reputation within as a resource. Sustainable reuse of materials sal- the global yachting community. Yacht owners are vaged from wreckage can support local industries, more likely to be attracted to destinations that prio- such as construction and art, while reducing the ritize the protection of marine ecosystems. A desti- burden on natural resources. Also, strategic dispo- nation that effectively manages abandoned boats and sal of wreckage can create artificial reefs to make wrecks gains a positive reputation within the global attractive locations for scuba diving. yachting community. Word of mouth spreads quickly 4. International Reputation: Adopting and enfor- among yacht owners and management companies. cing strict wreckage management policies aligns When a destination is known for its responsible mari- Cabo Verde with international standards and best time practices, it becomes more enticing. Abandoned practices in maritime and environmental conser- boats and wrecks can pose navigational challenges vation. This enhances the nation’s reputation as a and potential damage to vessels. Regulations that ad- responsible custodian of its coastal resources. dress these issues reduce the likelihood of accidents and vessel damage. Yacht owners and charter compa- To effectively implement this policy, Cabo Verde should nies are more inclined to visit destinations where such consider: risks are minimized. Regulations create a framework for vessel owners to follow. Those who comply with • Monitoring and Reporting: Establish mechanisms these regulations demonstrate responsibility and ac- for reporting and tracking wreckage incidents. This countability. Yacht owners and management compa- enables timely responses and ensures accountabi- nies are more likely to engage with destinations that lity. have clear rules and expectations. • Removal and Salvage: Develop protocols for the re- moval and salvage of wreckage, particularly in en- Recommendation 14 - Enforcement Policy around In- vironmentally sensitive areas. vasive Species • Recycling and Repurposing: Encourage initiati- ves that promote the recycling and repurposing of Cabo Verde should collaborate with relevant stake- wreckage materials, reducing the environmental holders to implement regulations preventing the footprint. spread of aquatic invasive species. Another aspect of sustainability policy are laws to prevent the spread Regulations addressing abandoned boats and of aquatic invasive species that can harm the destina- wrecks improve the safety and navigability of tion’s ecosystem, undermine the economy, and impair a destination’s waters. Yacht owners and charter recreational activity. In addition, as discussed with companies prioritize safety for their vessels and pas- academic institutions across Cabo Verde on the travel Cabo Verde Yacht Tourism Study 2023 65 Section 8 mission, invasive species in yachting is a threat. Des- Biosecurity regulations are crucial for attracting tinations like Cabo Verde can collaborate effectively eco-conscious travelers, promoting environmen- with marinas, port authorities, and relevant stake- tal stewardship, and maintaining healthy waters holders to implement stringent regulations aimed at for yachting activities in Cabo Verde. The impor- preventing the introduction of invasive species by vi- tance of such regulations cannot be overstated. Ya- siting yachts. Such regulations are not only vital for cht customers increasingly prioritize destinations environmental preservation but also align with global that demonstrate a commitment to environmental trends in responsible yachting. stewardship and responsible tourism practices. When destinations actively promote and enforce biosecu- Cabo Verde can collaborate with marinas and port rity regulations, they not only attract eco-conscious authorities to ensure cleanliness standards and travelers but also contribute to the global effort to prevent the introduction of invasive species. One protect fragile ecosystems. Furthermore, these regu- way to achieve this collaboration is by instituting lations serve as a valuable promotional tool on the mandatory inspections and biosecurity measures for global stage. They position Cabo Verde as a destina- all incoming yachts. Competitor destinations, such as tion that values the preservation of its unique envi- those in the Mediterranean and the Caribbean, have ronment, ultimately attracting visitors who appre- already adopted similar regulations. These measures ciate and respect these efforts. Because yachting is a typically involve inspections by trained personnel to recreational activity that relies on access to clean and ensure that yachts adhere to strict cleanliness stan- healthy waters, invasive species can disrupt recrea- dards and have not inadvertently transported invasive tional activities, making yachting less enjoyable and species from other regions. By working closely with even risky. Laws that prevent the spread of invasive marinas and port authorities, Cabo Verde can establi- species ensure that yachting tourists can continue to sh designated inspection points where arriving yachts safely engage in water-based activities and enjoy their must undergo checks. These checks may include hull experiences to the fullest. These include boat inspec- and equipment inspections, as well as assessments of tions, process and restrictions involving hull cleaning, ballast water and hull fouling to detect and prevent and other practices. the introduction of potentially harmful species. Our recommendations are summarized below and in- cluded in detail underneath. Table 8.2 Overview of Recommendations - Infrastructure Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability Strong involve- Wastewater and $80,000 USD National Moderate - Feasi- ment from private, Sewage Disposal for planning and Directorate of Urgent (12 ble with rigorous nonprofit, academic Regulations in Ports strategy around Aquaculture months) monitoring and sector will be critical and Marina policy. and Fishing infrastructure in driving policy change. Cabo Verde Yacht Tourism Study 2023 66 Section 8 Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability High - In all cases inter- nationally, a Ensuring the Moderate - Devel- breakwater sustainability of this Breakwater Devel- The average cost Public-Private oping a breakwater High has encour- investment requires opment in Marina of a breakwater is Sector Partner- is feasible, but (1-3 years) aged yachts to monitoring visitor Mindelo $2-3M USD. ship it requires initial arrive in larger numbers and tourism investment. amounts due growth. to weather conditions. The cost of the feasibility study is $100,000 USD. The average cost High - Im- of a TravelLift proved is $300,000- services can 400,000 USD. The Moderate - Feasi- Monitoring visitor attract more Enhanced Services cost of expanding Public-Private bility depends on numbers and service High yacht traffic at Marina Mindelo the marina would Sector Partner- cost-effectiveness utilization will be (1-3 years) and generate (TravelLift) depend on the ship and demand for essential to ensure revenue. Will results of the services. sustainability. consolidate study but can repair services be estimated to at the Marina. be $6-7M USD to develop the capacity for 100 more vessels. High - Feasible with Sustainable as it Policy on charter Ministry of $100,000 USD the involvement of promotes responsible operations and Pri- the Sea, Port for planning and High (1-3 key stakeholders tourism, enhances vate Owned vessels Authority (IMP), strategy around years) to amend current professionalism, and - amend existing and the Tourism each policy. regulation to include ensures long-term regulation Institute (ITCV). charters. economic growth. High - but key is $50,000 USD Policies Governing Ministry of the enforcement as ex- Enhances safety for planning and High (1-3 Boat Movement and Sea and Port isting policies exist and sustainability in strategy around years) Liabilities Authority already at a certain maritime activities. policy. level. $150,000 USD Moderate -Feasible Ministry of Fosters a cost-ef- Review of duty on for planning and High (1-3 with government and Finance and fective maintenance parts strategy around years) customs collabora- Planning ecosystem. policy. tion. It is critical to engage all relevant stake- holders in the con- $160,000 USD Modification and Ministry of Moderate - Feasible versation on the tax for planning and High (1-3 easing of tax policy Finance and with proper analysis easing. This would strategy around years) for certain vessels Planning and negotiation encourage yacht policy. tourism, job creation, and economic growth. Cabo Verde Yacht Tourism Study 2023 67 Section 8 Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability High - Im- $1M USD to High - Encouraging proved repair Monitoring invest- Repair Services in develop and staff Moderate private sector invest- services can ment impact and ENAPOR Sal repair services (3-5 years) ment is feasible with benefit charter service quality will in Sal. collaboration. companies and ensure sustainability. yacht owners. High - Un- Feasibility studies derstanding typically cost the feasibil- High - Understand- around $150,000 ity of a new ing the feasibility of USD. High - A new marina is a new marina is es- marina can This study will help essential for sential for planning. New Marina Develop- The average Ministry of the boost tourism guide long-term planning. There have been ment Study in Sal cost of a marina Sea and economic development and There have stalled studies for a is estimated at growth if well- investment in Sal. been stalled while in Sal. 10M-12M USD, planned. studies for a but would depend while in Sal. on the results of a study. Moderate - Sustainable $1.5M USD for Moderate to High tourism Environmental and Assess Recreational the development Marina Mindelo Moderate - An analysis is benefits the social factors will be Center Potential in of a recreational + ITCV (3-5 years) feasible with collab- community assessed to ensure Mindelo center in Mindelo. oration. but may not sustainability. generate direct revenue. Sustainable as it pro- $40k per harbor National Low - needs over- tects marine ecosys- Enforcement policy annually for plan- Directorate of Moderate sight, proper pro- tems and enhances around wreckage ning and strategy Aquaculture (3-5 years) tocols and enforce- tourism. Requires around policy. and Fishing ment regulation. close measurement & reporting. Strong involvement Moderate - needs $65,000 USD National from the private, Enforcement Policy designated inspec- for planning and Directorate of Moderate nonprofit, academic around Invasive tion points and strategy around Aquaculture (3-5 years) sector will be critical Species collaboration with policy. and Fishing in driving policy stakeholders. change. Low - It can improve attractiveness Low - A courtesy to yacht en- Monitoring visitor Courtesy Float The average cost float is a feasible thusiasts and numbers and usage Development Feasi- of a courtesy float ENAPOR and/ interim solution Long Term may generate will be important to bility Study in Santa development is or Ministry of and may enable (5-8 years) incremental assess sustainability. Maria Using Existing estimated to be the Sea additional revenues revenue from Pier $75,000 USD. through moorings both moor- and anchorage ing fees and embarkation revenue. Cabo Verde Yacht Tourism Study 2023 68 Section 8 Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability The average cost Environmental and Moderate - of a carrying social factors will be Sustainable capacity analysis assessed to ensure Moderate to High tourism Comprehensive is $100,000 USD. sustainability. Carry- Long Term - An analysis is benefits the Carrying Capacity Our estimated MTT ing capacity ensures (5-8 Years) feasible with collab- community Analysis in Tarrafal cost for a marina long-term sustain- oration. but may not is $10-12M, ability of any new generate direct depending on the tourism or infrastruc- revenue. results of a study. ture development. 8.3. Easing vessel entry, registration, procedures, customs and immigration procedures and building the and standardizing policies across island/type of portal into websites promoting recreational boating vessel and fishing will create a friendly, yet efficient facility for use by visiting boaters. Implementing a transition Standardizing and simplifying entry and from paper-based licenses to digital licensing registration procedures is essential to enhance represents a leap forward in enhancing the entry Cabo Verde’s appeal as a yacht tourism destination. process for yachting and fishing enthusiasts in Cabo Entry and registration procedures in Cabo Verde Verde. Under this recommendation, licenses would are complicated, multiple agencies are involved be digitally recorded in a central database, accessible and locations are inconvenient for both passengers in real-time through smartphones or similar devices. and crew. The policies are inconsistent across the Payments made through this digital system would be various islands and enforcement varies. This is also instantly directed to the national treasury’s account, the case for vessel types - charter or private-use creating a transparent and traceable financial trail. vessels. Given the nature of this category, there are This approach offers a multitude of benefits for both only policy recommendations and no investment visitors and the nation. recommendations. Transitioning to digital licensing creates an efficient, hassle-free experience that promotes 8.3.1. Recommendations Cabo Verde as an attractive destination for yachting and fishing enthusiasts. The shift to Recommendation 1 - Simple online facility, online digital licensing simplifies and expedites the entry portal whereby all necessary procedures and process for visiting boaters and fishermen. No longer payments made can be done burdened by paperwork, travelers can swiftly acquire the necessary permits using their smartphones, Moving to digital licenses can be seamlessly ensuring a hassle-free experience upon arrival. By integrated into Cabo Verde’s tourism promotion incorporating licensing, customs, and immigration efforts. It is recommended pursuing a process to procedures into a unified single window portal, Cabo eliminate paper-based licenses. The license would Verde creates an efficient and user-friendly facility for consist of a record in a central database, which could visitors. This consolidated approach eliminates the be accessed in real time via a smartphone or similar need for travelers to navigate multiple bureaucratic device. Payments made using such a system go channels, promoting a more welcoming and enjoyable immediately to the national treasury’s account, leaving experience. Visitors who experience the ease and a digital trail to facilitate reconciliation. Packaging efficiency of Cabo Verde’s digital entry process are these processes into the single window portal, with likely to become enthusiastic advocates. Their positive Cabo Verde Yacht Tourism Study 2023 69 Section 8 experiences can lead to word-of-mouth marketing, length of stay for charter vessels to six months without sparking interest among their peers and colleagues in VAT payment on the cost of the charter; an unintended the global yachting and fishing communities. consequence of this is that it makes the destination highly seasonal. Most of those interviewed said that Digitizing entry processes enhances Cabo Verde is an ideal year-round destination given competitiveness and promotes Cabo Verde as the climate especially. The disconnect between the an efficient destination for enthusiasts. In the allowed length of stay without VAT and the potential highly competitive yacht tourism and fishing sectors, to attenuate the season beyond six months should be streamlined digital entry processes have become addressed. This recommendation proposes extending industry standards. Implementing such a system the duration to 12 months, as opposed to the 6-month aligns Cabo Verde with its competitors, ensuring that period discussed with ENAPOR and IMP, to achieve it remains a competitive and attractive destination more consistent revenue generation and visitation. for travelers seeking convenience and efficiency. The central database created by this digital licensing system Expanding the allowable charter period to 12 provides valuable data on visitor trends, allowing months for foreign-flagged luxury yachts over 20 authorities to make informed decisions about resource meters enhances Cabo Verde’s year-round yacht allocation, marketing strategies, and infrastructure tourism appeal. In Costa Rica, for the first time, development. The digital trail of payments ensures foreign-flagged luxury charter yachts measuring 20 transparency and accountability in revenue collection. meters and above will be able to charter legally within This reduces the potential for financial discrepancies Costa Rica and remain in the country for 12 months. and contributes to a more robust and trustworthy Introducing an extended charter period for foreign- financial system. By embedding the single window flagged luxury yachts measuring 20 meters and portal into websites promoting recreational boating above marks a transformative step in enhancing the and fishing in Cabo Verde, the nation showcases its regulatory framework for yacht tourism in Cabo Verde. commitment to offering an efficient and user-centric Under this recommendation, these yachts will have experience. This integration not only simplifies the the opportunity to legally charter within Cabo Verde planning process for travelers but also serves as a and stay in the country for a duration of 12 months, marketing tool, reinforcing Cabo Verde’s reputation an increase from the previous limit of 6 months. This as a yacht and fishing enthusiast’s paradise. policy change aims to strategically address several key aspects of the yacht tourism industry. By extending the This recommendation serves as a reinforcement of allowable stay for luxury charter yachts, Cabo Verde Recommendation 5 found in the World Bank’s Nautical seeks to transition from a predominantly seasonal Tourism Legislation Research report, which centers tourism destination to a year-round attraction. The around the “creation of a digital sea desk.” 12-month window accommodates visitors throughout all seasons, reducing the dependence on specific peak Recommendation 2 - Review and Extension of months and diversifying the tourism calendar. Charter Period Extending the charter period boosts the local Aligning Cabo Verde’s charter vessel regulations economy by attracting more tourists and with its year-round appeal can extend the season encouraging investment in marine services beyond six months and enhance sustainability. and infrastructure. The extended charter period Numerous brokers and managers mentioned both promises economic benefits. It not only draws luxury Costa Rica and the Seychelles as attractive emerging yacht owners and charter companies to Cabo Verde destinations for charter. Cabo Verde presently limits for more extended periods but also encourages longer Cabo Verde Yacht Tourism Study 2023 70 stays by high-net-worth tourists. This translates more vessels and encourages longer stays, positioning into increased spending on accommodations, dining, Cabo Verde as an attractive yacht tourism hub. The activities, and local services, generating revenue and extended VAT exemption leads to increased spending on job opportunities for the local economy. The policy local services, maintenance, and refitting, invigorating change enhances Cabo Verde’s attractiveness to yacht the maritime industry and creating jobs. Longer stays owners and charter businesses by providing them with by yacht enthusiasts translate to higher consumption of greater flexibility and convenience. Yachts can undergo goods and services, further fueling the local economy. necessary maintenance, refitting, or repairs while This policy change makes Cabo Verde more appealing enjoying the country’s picturesque surroundings, to yacht owners, charter companies, and enthusiasts. contributing to the development of local marine The 12-month VAT exemption offers financial relief and services and infrastructure. The extended charter flexibility, driving yacht owners to choose Cabo Verde period can encourage yacht operators and investors to for their needs. It also prompts investments in marina consider Cabo Verde as a hub for yacht tourism. The facilities, yacht services, and local infrastructure, longer duration provides the stability and incentives thereby boosting the industry’s potential. needed to make investments in marina facilities, yacht services, and amenities. Cabo Verde should adopt policies similar to Costa Rica and The Canary Islands’ successful Recommendation 3 - Review of Tax Policy and tax exemptions for revenue and sector growth. Exemptions Following successful case studies like Costa Rica, which has experienced consistent yacht demand growth over The proposed tax policy changes in Cabo Verde the past decade, it is evident that tax exemptions work. hold the promise of enhancements to the local The Canary Islands is another example. The territory yachting industry. These recommendations are aimed implements a local consumer tax at a standard rate of at mitigating seasonality and fostering year-round 7 percent, markedly lower than the European Union’s vessel availability. This recommendation proposes required minimum of 15 percent for member states. extending the duration to 12 months, as opposed to Additionally, the region offers the lowest corporate the 6-month period discussed with ENAPOR and IMP, tax rate in Europe at 4 percent, although this is subject to achieve more consistent revenue generation and to specific terms and limitations. Such tax structures visitation. greatly increase the attractiveness of the islands to investors. Extending the VAT exemption on yachts in Cabo Verde from six months to a year is a strategic move to Emulating policies such as the exemption from enhance the industry’s potential and local economy. import and value-added taxes on vehicles, including Tax deferments and abatements are compelling yachts, is a significant opportunity for Cabo incentives. Government revenue loss can often be Verde. Such a policy encourages more yacht activity counterbalanced with other incentives that promote while increasing visitor spending, creating business local spending. Yacht tourism unlocks high-paying opportunities, and generating jobs. The relaxation of job opportunities across various industries, making an VAT and sales tax could become an income source for in-depth analysis of its economic impact imperative. Cabo Verde’s yacht tourism industry, attracting more Expanding the VAT exemption from six months to a full businesses and visitors and stimulating economic year, for both charter and private vessels, represents activity. Therefore, implementing such a policy is vital, a strategic maneuver to bolster yacht tourism in Cabo as it holds the potential to yield revenue and drive sector Verde. This change addresses a crucial aspect of tax growth. regulation and its influence on the industry. It lures Cabo Verde Yacht Tourism Study 2023 71 Section 8 Table 8.3 Overview of Recommendations - Easing Vessel Entry Recommendation Estimated Cost Owner Timeline Feasibility Sustainability There are three compo- nents of sustainability of such an online process: • Documentation of the process and align- ment across agencies (Police, IMP, ENAPOR, Simple Online Facility: Moderate - Digitization in $100,000 USD for and others) online portal whereby all government in any market necessary procedures development and IMP Urgent takes stakeholder engage- • Training on new implementation of (12 months) process and payments made can ment, investment and clear be done online form. communication. • Marketing on new process to yacht customers regionally and internationally These steps are critical to full adoption and change management of such a rule. Moderate - Critical to look at success of competitor Tracking of the vessel destinations and apply arrivals after approach and $150,000 USD for Review and Extension of High similar extension laws in enforcement of such a pol- planning and strate- IMP Charter Period (1-3 years) Cabo Verde. May take a icy will allow Cabo Verde to gy around policy. multi-agency approach in gauge the effectiveness of getting policy approved such a policy. and implemented. Tracking of the vessel Moderate - Tax policy ex- arrivals after approach and $160,000 USD for Ministry of Review of Tax Policy and High (1-3 emptions for these type of enforcement of such a pol- planning and strate- Finance and Exemptions for Vessels years) vessels will require a review icy will allow Cabo Verde to gy around policy. Planning of wider policy. gauge the effectiveness of such a policy. Cabo Verde Yacht Tourism Study 2023 72 Section 8 8.4. Building Stronger Public-Private Partnership This report would recommend that the Ministry of the and Local Advocacy in Yachting Sea or other relevant authority begin the process to re- calibrate the process in a collaborative session based In an effort to foster the growth and sustainability on vessel type. These conversations should take place of the yachting industry in Cabo Verde, a series of firstly in one joint meeting across all authorities in all strategic recommendations has been put forth to three islands: Sal, Santiago and São Vicente. Then, the enhance public-private partnerships and engage policy should be codified and in due time publicized to in local advocacy efforts. The overarching goal is to internal and external audiences. bring together the public sector, private enterprises, This recommendation reinforces Recommendation 9 and local communities to jointly promote and advocate from the Nautical Tourism Legislation Research Report, for the maritime and nautical sectors, with a particular which calls for carrying out a comprehensive review of emphasis on yachting. the institutional framework for nautical tourism. 8.4.1. Recommendations Recommendation 2 - Establishment of Conselho de Navegação Recreativa Recommendation 1 - Review Government Roles and Responsibilities in Yachting Sector Cabo Verde should create a body to act as an intermediary between stakeholders and public Cabo Verde needs to establish a clear organizational authorities. Inspired by recent regulations, Cabo Verde chart and policy for charter and private yachts should consider the formation of a body similar to the larger than 12 meters to streamline entry and “Conselho de Navegação Recreativa” (Recreational registration. The Market Overview and Trends section Navigation Council). These organizations typically of this report breaks down the roles and responsibilities act as intermediaries between local stakeholders and as understood in Cabo Verde. However, government public authorities, advocating for the interests of yacht authorities in Cabo Verde should align on, together, and owners, charter companies, and the broader maritime document these processes for charter companies and sector. They would serve as catalysts for collaboration, private vessels working in Cabo Verde. To ensure clarity fostering a conducive environment for yachting growth. and efficiency in the entry and registration processes This entity would serve as a platform for discussion, for both charter yachts and private use yachts, Cabo capacity building, and advocacy efforts aimed at Verde should establish a well-defined organizational fostering the growth of the maritime and nautical chart and delineate specific responsibilities for various sectors, including yachting. Its mission would be to government agencies based on these two different types engage stakeholders from both the public and private of vessels. This approach will streamline operations and sectors to collectively address industry challenges and provide a clear roadmap for all stakeholders involved. opportunities. This council should include yachting as a These roles can be affirmed in a policy related to foreign sub-component. Researchers understand that the policy leisure vessels larger than 12M used for charter and provision is currently within the draft regulation by the private use. Instituto do Turismo e Comércio (ITCV), but it must be further developed to include yacht tourism. The Ministry of the Sea should organize joint discussions with relevant authorities based on The proposed council should play a central role vessel type, then formalize and publicize the in ensuring effective regulation enforcement resulting policy. There is confusion taking place and industry communication during awareness currently around the roles and responsibilities of campaigns. To galvanize support and enthusiasm for various government authorities in the yachting sector. the yachting industry, targeted awareness campaigns Cabo Verde Yacht Tourism Study 2023 73 Section 8 should be rolled out in strategic yachting destinations spearhead a national tourism awareness campaign. across Cabo Verde. Locations such as Tarrafal, Santa This campaign should be driven by both public Maria, and Mindelo, which are magnets for yachting and private sector interests, as a unified effort is enthusiasts, should be central to these campaigns. more likely to yield impactful results. The primary Engaging the local population, especially during the objective of the campaign would be to sensitize the off-season when businesses may seek alternative public to the economic opportunities associated avenues for revenue, can help generate grassroots with yachting while also highlighting the areas advocacy. The involvement of local businesses in these where irresponsible practices can have adverse campaigns serves a dual purpose: it fosters community effects.The council should serve as a coordinating buy-in and highlights the economic benefits of yachting body that brings together representatives from for local entrepreneurs. In addition, this organization the public and private sectors to collaborate on can oversee collaborative endeavors between ITCV, communication strategies. It can facilitate dialogue Ministerio da Mar, to raise awareness of the positive and information sharing between stakeholders, impact of prestigious events like the Ocean Race to ensuring that all are on the same page regarding Cabo Verde’s profile as a premier yachting destination regulations, best practices, and the economic and to local businesses. Planned awareness campaigns, benefits of responsible yachting. with a specific focus on showcasing the sustainability • To address the deficiency in communications around and allure of yachting, will be instrumental. These boating, the council can organize educational campaigns should encompass various promotional programs and workshops for both the yachting activities, including magazine features, active community and the general public. These initiatives participation in boat shows, and public relations efforts. can provide insights into the importance of The Ocean Race can serve as a potent PR initiative, responsible yachting, environmental conservation, aligning the yachting sector with global events and and the economic opportunities that yachting can attracting international attention to Cabo Verde. The bring to local businesses and communities. proposed “Conselho de Navegação Recreativa’’ in Cabo • Through targeted campaigns, the council can Verde can play a pivotal role in ensuring the effective sensitize the public to the potential consequences enforcement of regulations and promoting clear of irresponsible boating practices. This includes communication within both the public and private raising awareness about the environmental impact sectors of the yachting industry. of marine pollution, the benefits of sustainable yachting, and the importance of preserving Cabo It should be empowered to support the following Verde’s pristine coastal areas. key recommendations: This recommendation aligns with Recommendation 6 from the Nautical Tourism Legislation Research Report, • The council should actively oversee and facilitate the which advocates for the creation of a Recreational enforcement of regulations governing the yachting Boating Council. industry. This includes monitoring adherence to safety standards, environmental regulations, Recommendation 3 - Prior to Arrival and customs and immigration requirements. The Communications council can collaborate with relevant government agencies, marinas, and port authorities to ensure Public sector investment is required to develop a that regulations are consistently applied and concerted program to share more information to understood by all stakeholders. boats prior to arrival. Currently, there is a lack of • Recognizing the deficiency in communication clarity regarding the wide range of services available to regarding boating and yachting, the council can yachts entering Cabo Verde’s marinas and ports. This Cabo Verde Yacht Tourism Study 2023 74 Section 8 includes essential services such as customs clearance, • Create an exhaustive service directory that covers immigration procedures, safety inspections, and all aspects of yachting, from boat repair and environmental compliance checks, as well as other maintenance facilities to provisioning providers, crucial aspects like repair facilities, provisioning local tour operators, and safety authorities. options, excursions, on-land activities, tours, local This directory should be regularly updated and authority contact numbers, safety contact numbers, made accessible both online and in print for the and more. To address these challenges and foster a more convenience of yachters. transparent, efficient, and visitor-friendly yachting • Integrate on-land experiences such as cultural environment, Cabo Verde should take a multi-faceted tours, guided excursions, and local activities into approach, including: the yachting service ecosystem. Collaborate with local tour operators and guides to offer tailored • Establish a standardized and centralized experiences that showcase the beauty and culture information-sharing system or easy-to-understand of Cabo Verde. document that provides details about all yachting • Incorporate safety and emergency information into services, facilities, and activities available across the information-sharing system, including local Cabo Verde’s islands. This should include a authority contact numbers, safety protocols, and consolidated and user-friendly guide that yachters emergency response procedures. This ensures that can access before and during their visits. This yachters are well-informed about safety measures should arrive when an online form, recommended and have access to immediate assistance when earlier, is shared. needed. • Develop streamlined processes that enable yacht owners and operators to easily connect with local Most destinations with growing yacht tourism agencies or concierges. These processes should industries have such a program and it is feasible for encompass customs and immigration procedures, Cabo Verde, in particular the IMP, ITCV and Ministry safety inspections, environmental compliance of the Sea to incorporate such a program. checks, repair services, provisioning options, and booking excursions and activities. Table 8.4 Overview of Recommendations - Advocacy Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability High: Relevant authorities can es- Enhancing clarity and Review Government tablish a well-defined Urgent (less efficiency in opera- Roles and Responsi- $200,000 for re- organizational chart ITCV than 12 tions through clear bilities in Yachting view and planning. and delineate specif- months) role definitions and Sector ic responsibilities for policy guidelines. various government agencies. Advocating for the High: Similar councils interests of yacht have been suc- Establishment owners, charter cessfully created to of Conselho de High (1-3 companies, and the $75,000 USD ITCV coordinate repre- Navegação Recre- years) broader maritime sentatives from the ativa sector. Development public and private of awareness cam- sectors. paigns. Cabo Verde Yacht Tourism Study 2023 75 Section 8 Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability High - Improved services can High: Drawing attract more $75,000 USD for Creation of a inspiration from suc- yacht traffic Prior to Arrival Com- development and High (1-3 standardized and ITCV cessful practices in and generate munications implementation of years) centralized informa- other yacht tourism revenue. Will the program. tion-sharing system. destinations. consolidate repair services at the Marina. 8.5. Targeted Marketing to Yacht Decision Makers of a dedicated website. The project’s progression will adhere to a meticulous roadmap, commencing with a It is an important priority for Cabo Verde’s rigorous market study, precise segmentation analysis, government, in particular the ITCV, to develop and the formulation of a distinctive branding strategy. a marketing campaign targeting yacht owners Subsequently, the focus will shift to the development and yacht charter broker businesses to develop and execution of a marketing strategy and campaign awareness and interest in growing both private use tailored to Cabo Verde’s unique yachting landscape. yachting and charter yachting in the São Vicente In the current landscape, ITCV’s appointed marketing and Sal Islands. The campaign should encompass agency lacks a specific concentration on yachting or various platforms, including boat and other relevant boating industries. Therefore, the commencement of trade shows, trade marketing, digital marketing, and a an extensive planning process that caters to the unique dedicated website. The project will begin with a market aspirations and prerequisites of Cabo Verde’s yachting study, segmentation, branding strategy and then sector is paramount. continue to the marketing strategy and marketing campaign. Currently, ITCV’s marketing agency does 8.5.1. Recommendations not have a focus on yachting or even boating, so it is critical to begin to expand the planning process for Prior to a campaign, though, specific steps are Cabo Verde. recommended for developing a presence at at least one international boat show and in relevant Cabo Verde aims to enhance its global yachting publications. An investment recommendation revolves reputation through a marketing campaign. In the around exploring opportunities for a public-private pursuit of advancing Cabo Verde’s standing in the global partnership, potentially with prestigious organizations yachting industry, the government, with a particular like the World Bank. This partnership will aim to focus on the Institute for Tourism Promotion (ITCV), secure investment for the development of Cabo has recognized the pressing need for a comprehensive Verde’s yachting sector. Led by ITCV, this collaborative marketing campaign targeting yacht owners and yacht approach can focus on a marketing development and charter broker businesses. This multifaceted initiative roll-out to involve marinas, private sector stakeholders, seeks to raise awareness and stimulate interest in and other relevant parties. Recognizing a gap in the expanding both private use yachting and charter market, as articulated by marinas, private sector yachting across the São Vicente and Sal Islands. The entities, and brokers, it is essential to produce a suite of proposed campaign is poised to span various platforms, promotional material, in print and online, showcasing including participation in high-profile boat shows and Cabo Verde as a yacht destination. This concerted effort events, strategic trade marketing, the implementation should encompass ITCV, Marina Mindelo, Ministerio of digital marketing strategies, and the establishment da Mar, and Port Authorities, resulting in a valuable Cabo Verde Yacht Tourism Study 2023 76 Section 8 resource that conveys Cabo Verde’s unique attractions Recommendation 2 - Targeted Publications for Yacht to potential visitors. This brochure should be on Cabo Brokers and Yacht Captains Verde and not any specific facility. In addition, ITCV should lead the charge on exhibit design for charter ITCV should initially collaborate with yachting shows, discussed next. magazines to establish the destination’s presence as an emerging yachting location. Next, ITCV is Recommendation 1 - Investment in Charter Shows encouraged to invest in 1-2 initial publications first to “test the waters.” ITCV can collaborate with prominent Another essential strategy involves concentrating yachting magazines with a strong presence in Cabo marketing efforts on key markets with yachting Verde’s target markets including the UK and other potential, including the UK, Germany, and Spain. European countries. Magazines such as “Yachting and These countries have sizable yachting communities Boating World,” “Yachting World,” “Yachting Monthly,” and are primary sources of visitors to Cabo Verde. and “Yachting Magazine’’ should be actively engaged to Currently, discussions with marina and government feature Cabo Verde as an emerging yachting destination. stakeholders demonstrate that the charter show ITCV can also leverage online resources such as attendance is ad-hoc and a strategy is not in place. superyacht services guides, boat captains’ directories, and yacht-related networks to establish Cabo Verde’s It is vital to allocate public sector funding to presence. These platforms provide essential information firstly, attend, charter shows globally, and in the to captains, guides, and yacht owners and serve as vital long-term sponsor events with a particular focus touchpoints for marketing efforts. on key audiences such as charter brokers, charter owners, and captains. Cabo Verde can actively Recommendation 3 - Launch a Collaborative Boating participate in high-demand events like the MYBA and Yachting Campaign Charter Yacht Show in Barcelona, Spain (April 27 – 30) and the British Motor Yacht Show 2023. Sponsoring After an initial marketing approach for trade shows these events allows Cabo Verde to not only attend but and magazines, a wider campaign is necessary. A also to be recognized as a contributor among other pivotal policy recommendation is the cultivation of sponsors. This report recommends for Cabo Verde a cooperative venture with essential stakeholders, to attend one charter show, specifically the MYBA including ITCV, Marina Mindelo and the Ministerio Charter Yacht Show in Barcelona, Spain given its da Mar, to initiate a unified boating and yachting focus on yacht customers in the Mediterranean, first marketing campaign. This collaborative endeavor will during this time period. The choice of these events harness collective expertise and resources, effectively is deliberate, targeting high-demand markets known promoting Cabo Verde as a premier yacht destination. for their yachting communities. For instance, Belize This campaign can include wider international Tourism Board began a few years ago to attend and participation in key boat shows, branding and exhibit at top yacht broker conferences, including digital marketing targeting yacht brokers and yacht FLIBS, and most recently on October 5, 2023, they are management companies, and partnerships with key sponsoring an International Yacht Broker Association yacht magazines and publications. This campaign (IYBA) Open House in Fort Lauderdale, Florida. should also include one familiarization tour of charter brokers from key international brokerages to come to Cabo Verde week to explore key areas, including Mindelo and Santa Maria. Cabo Verde Yacht Tourism Study 2023 77 Section 8 Table 8.5 Overview of Recommendations - Marketing Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability High: Allocation of High: This Reaching yachting $75,000 USD for public sector funding will increase Investment in Char- High (1-3 communities repre- participation in ITCV for attending global awareness and ter Shows years) senting sources of one charter show. charter shows and opportunity for potential visitors. sponsoring events. new markets. High: Creation Targeted Publi- of a profile for Continued active $25,000 USD for High: Relationship cations for Yacht High (1-3 Cabo Verde for promotion of Cabo participation in ITCV building with key Brokers and Yacht years) an internation- Verde as an emerging 1-2 publications. publications. Captains al and niche yachting destination. audience. $250,000 USD Unified boating and Launch a Collabo- per year for High: Collaborative Moderate yachting marketing rative Boating and development and ITCV effort to enable the (3-5 years) campaign to continu- Yachting Campaign implementation pooling of expertise. ously attract visitors. of campaign. Table 8.5 Overview of Recommendations - Marketing Recommendation Estimated Cost Owner Timeline Feasibility Profitability Sustainability High: Allocation of High: This Reaching yachting $75,000 USD for public sector funding will increase Investment in Charter High (1-3 communities repre- participation in ITCV for attending global awareness and Shows years) senting sources of one charter show. charter shows and opportunity for potential visitors. sponsoring events. new markets. High: Creation Targeted Publi- of a profile for Continued active $25,000 USD for High: Relationship cations for Yacht High (1-3 Cabo Verde for promotion of Cabo participation in ITCV building with key Brokers and Yacht years) an internation- Verde as an emerging 1-2 publications. publications. Captains al and niche yachting destination. audience. $250,000 USD Unified boating and Launch a Collabo- per year for High: Collaborative Moderate yachting marketing rative Boating and development and ITCV effort to enable the (3-5 years) campaign to continu- Yachting Campaign implementation pooling of expertise. ously attract visitors. of campaign. Cabo Verde Yacht Tourism Study 2023 78 Section 8 8.6. Encouraging investment in yachting Cabo Verde TradeInvest to craft a sector-specific policy framework aimed at promoting nautical and marine Encouraging investment in yachting will inject capital investments. To achieve this goal, TradeInvest should into the sector, driving further development and actively seek guidance and input from a diverse range ensuring that Cabo Verde remains competitive in the of stakeholders, including private sector organizations global yacht tourism market. with expertise in maritime development and relevant government agencies such as the Ministry of the Sea 8.6.1. Recommendations and the Institute for Tourism in Cabo Verde (ITCV). Investment policies will also be required to stimulate Actions that create an attractive environment for the development of the various sub sectors (maritime yacht owners to visit and do business in Cabo Verde supplies and repair, fishing gear and supplies, dining may offer tax incentives or tax holidays for specified and entertainment options, duty-free shopping, periods, provide assurance for the security of the etc. that support boating and yachting activity. vessel and stimulate the growth and development of Strategically, to prevent domination by expatriate support and supplier services in the local economy. investors, these benefits should be offered to the domestic market or the diaspora initially enabling Recommendation 1 - Policy to enable investment national support for and involvement in the sector. in maritime projects Recommendation 3 - Establish programs for the It is recommended to adopt incentive regimes for dissemination of information regarding nautical maritime recreation and infrastructure in Cabo tourism legislation Verde similar to those in science and technology research and development. These should include Collaborative efforts are essential to inform tax deductions for eligible expenses and prioritize stakeholders about the legal framework for nautical eco-friendly practices and local employment. Public/ tourism and foster economic activity. These private sector collaboration should also be considered programs should focus on providing information about for infrastructural development. the legal and regulatory framework governing nautical tourism. Collaborative efforts should be initiated with Recommendation 2 - Cabo Verde TradeInvest agencies such as ITCV (Cabo Verde Tourism Institute), Maritime the General Directorate of Tourism (GDT), and the Maritime Ministry (MM) to ensure a cohesive approach. Cabo Verde TradeInvest should develop specific Collaborative initiatives should be forged with key policies to stimulate the maritime industry and partners, such as ITCV and the Tourism Chamber, to sub-sectors while initially targeting domestic offer essential information, guidance, and support to and diaspora investors to prevent expatriate SMEs. This support will play a pivotal role in nurturing dominance. It is noted that while Cabo Verde local businesses, fostering economic activity, and TradeInvest, the country’s investment promotion realizing the full potential of nautical tourism in Cabo agency, has established general investment-related Verde. Nautical tourism sector is a stratified sector policies, there is an absence of policies tailored in which investment and consumer participation are specifically to the maritime sector. This absence driven by areas of passionate interest or recreational extends to a lack of targeted incentives for the demands. A sustained and multi-faceted promotional development of yacht tourism in Cabo Verde. To effort will be required to position and elevate Cabo Verde address this gap and harness the economic potential as a desirable destination. This will require imaginative inherent in the maritime industry, it is imperative for advertising and public relations campaigns in addition Cabo Verde Yacht Tourism Study 2023 79 Section 8 to a physical presence at boat shows and similar events considerations, including environmental sustainability, promoting travel or sport fishing. These efforts should safety standards, infrastructure requirements, and zoning be coordinated and driven by ITCV. regulations specific to marina development. Moreover, it should outline the licensing and permitting processes for This recommendation serves as a reinforcement of marina operators, ensuring transparency and adherence Recommendation 10 from the World Bank Nautical to legal requirements. This framework will not only Tourism Legislation Research, which emphasizes provide a clear roadmap for investors but also serve as the need to establish programs aimed at promoting a foundation for responsible and sustainable maritime awareness and understanding of existing nautical development. Furthermore, as part of the collaborative tourism legislation. effort, Cabo Verde TradeInvest should facilitate regular consultations and discussions with these stakeholders Recommendation 4 - Policy to govern marina to ensure that the policies remain dynamic and development and related amenities responsive to evolving industry needs and changing economic conditions. Ongoing collaboration will help Cabo Verde should create a policy framework in in streamlining administrative processes, enhancing collaboration with key stakeholders to regulate and investment attractiveness, and maintaining the highest guide marina development and recreational port standards of quality and safety in marina development. management. Develop, and proactively promulgate, a policy framework to regulate and guide the development As part of the policy framework, Cabo Verde should and management of marinas and associated amenities provide tax incentives to qualified investors, signaling in Cabo Verde. Collaborate with key stakeholders, the commitment to foster a thriving nautical tourism including ENAPOR (Port Authority), ITCV (Cabo Verde sector and attract potential investors. Another Tourism Institute), and GDT (General Directorate of recommendation as part of this policy is that appropriate Tourism), to establish and implement the necessary investors should qualify for a combined tax incentive regulations for marina exploration and recreational package that offers waivers of customs duty, stamp tax and port usage. In addition to the critical steps outlined property for combined development of a marina facility previously, another pivotal component of Cabo Verde’s and a land-based development (hotel, condominiums). strategy for promoting maritime investment and Since this offer could apply across a range of possible nautical tourism is the establishment of a robust policy investments, from small (20-60 rooms) hotels or fishing framework to govern marina development and related lodges with a small marina, to condominium projects amenities. The creation of such a framework is essential of various sizes and large hotels, the time of duration to regulate and guide the responsible development and of the concessions could be scaled to the size of the efficient management of marinas and their associated investment. By establishing a policy framework for marina facilities throughout the country. development and related amenities, Cabo Verde will send a strong signal to potential investors, both domestic and Cabo Verde TradeInvest should take the lead international, that the nation is committed to fostering a in developing this policy framework, in close thriving nautical tourism sector. collaboration with key stakeholders. These stakeholders should include ENAPOR (Port Authority), This recommendation is a reinforcement of ITCV (Cabo Verde Tourism Institute), and GDT (General Recommendation 4 from the World Bank Nautical Tourism Directorate of Tourism). The involvement of these Legislation Research, which focuses on the importance entities is crucial, as they possess the requisite expertise of approving regulations that govern the operation and and jurisdictional authority to address various aspects utilization of marinas and recreational ports in Cape of marina exploration and recreational port usage. Verde. The policy framework should encompass a range of Cabo Verde Yacht Tourism Study 2023 80 Section 8 Recommendation 5 - Targeted Employment Policy workforce consists of local individuals, the nation Implementing a targeted employment policy in the becomes less reliant on external labor sources. yacht tourism industry can bolster Cabo Verde’s This not only enhances economic self-sufficiency but employment rate, reduce reliance on foreign labor, also mitigates potential challenges associated with involve potential national investors, and stimulate the recruitment and retention of foreign workers. economic growth by encouraging domestic Furthermore, involving potential national investors in investment, while fostering a sense of national the yacht tourism industry becomes a viable proposition ownership in the sector. The implementation of through this policy. Cabo Verde’s large diaspora is also a targeted employment policy in the yacht tourism a logical source of potential investment and should be industry is a strategic move that can yield numerous aggressively targeted. As local workers gain prominence advantages for Cabo Verde. Specifically, the policy within the sector, it naturally paves the way for more should aim to maintain a percentage of local workers, Cabo Verdean entrepreneurs and investors to engage ideally exceeding 60 percent, within the sector. Such in maritime businesses. This, in turn, fosters economic an initiative carries multifaceted benefits that can growth and diversification by encouraging domestic significantly impact the nation’s economic and social investment. landscape. Foremost, the employment policy is poised to play a pivotal role in bolstering the national employment In addition to these economic advantages, the rate. By prioritizing the hiring of local talent, Cabo employment policy can serve as a platform for Verde can create job opportunities for its citizens, skill development among Cabo Verde’s citizens. As thereby contributing to reduced unemployment and they become increasingly engaged in yacht tourism- enhanced economic stability. This approach not only related roles, they have the opportunity to acquire fosters financial well-being among the population but valuable skills and expertise, thereby enhancing their also promotes a sense of national ownership in the yacht employability not only within the sector but also across tourism sector. Reducing dependency on foreign labor is various industries. The following are the summarized another critical advantage that this employment policy investment policy recommendations: can bring to Cabo Verde. By ensuring a portion of the Table 8.6 Overview of Recommendations - Encouraging Investment Recommendation Estimated Cost Owner Timeline Feasibility Sustainability The long-term impact can be en- Moderate - It is feasible to sured by periodically reviewing implement such incentive Incentive Regimes $150,000 USD for and adjusting eligible expenses Cabo Verde High (1-3 regimes, but it may require for Maritime policy strategy and to align with industry needs and Projects TradeInvest years) legislative changes and planning. environmental concerns, thereby careful consideration of promoting sustainable develop- eligible expenses. ment. Regular policy review and stakeholder involvement will ensure long-term alignment with High - This policy can be Comprehensive $150,000 USD for industry demands, fostering Cabo Verde Moderate developed by existing Maritime Investment policy strategy and sustained growth in the maritime Policy TradeInvest (3-5 years) institutions and involves planning. sector. Proper marketing of said stakeholder collaboration. policy will be critical to obtaining awareness of international and domestic investors. Cabo Verde Yacht Tourism Study 2023 81 Section 8 Recommendation Estimated Cost Owner Timeline Feasibility Sustainability ITCV, Regular updates and collabora- General High - These programs can tion with key partners will ensure Information $100,000 USD for Directorate be established relatively Moderate that the information remains Dissemination policy strategy and of Tourism quickly, leveraging existing Programs (3-5 years) up-to-date and relevant for planning. (GDT), governmental and tourism promoting the nautical tourism Ministry of institutions. sector over the long term. the Sea Moderate - It may require Periodic reviews and consul- coordination among tations with stakeholders will $120,000 USD for Marina Development Cabo Verde Moderate different stakeholders, but ensure that the policy remains Policy policy strategy and TradeInvest (3-5 years) the involvement of relevant responsive to changing needs planning. authorities enhances and continues to promote sus- feasibility. tainable marina development. Regular monitoring and enforce- $160,000 USD for Ministry of Moderate. It may require ment of hiring quotas will ensure Targeted Moderate Employment Policy policy strategy and Justice and industry cooperation and long-term local employment, (3-5 years) planning. Labour. monitoring mechanisms. contributing to economic stabili- ty and industry growth. 8.7. Potential Impact of Recommendations In Scenario 1, Cabo Verde would carry out infrastructure improvements in Sao Vicente and In order to fully harness the vast potential of Cabo implement national recommendations, anticipating Verde’s yacht tourism industry, recommendations annual revenues of $62.7M USD. The plan focuses on have been identified across six key opportunities. fully developing Marina Mindelo by adding 100 slips, These opportunities vary in priority (urgent, high, a breakwater, and a TravelLift. The estimated cost for moderate, long-term) as well as in scope (national or these enhancements is between $22 to $25 million island-specific). These recommendations aim to create USD. This revenue is expected to increase as the a robust and attractive environment for yachting, yacht tourism industry grows. This total includes the benefitting both the local economy and the global following economic impact drivers, in USD, per year: yacht tourism market. Table 8.7 Annual Yacht Revenue Streams in Cabo Verde: Scenario 1 We have also identified three scenarios for Cabo Revenue Source Annual Revenue Verde, including costs and corresponding revenues $9.5M Hotel Revenue for each scenario. These scenarios are focused on Restaurant Revenue $810K showcasing the clear economic impact possible with investments in yacht tourism. All scenarios indicate Charter Operations Revenue $10.0M meaningful return for Cabo Verde based on economic Marina Fees $10.7M levers including: new jobs, hotel revenue, restaurant Provisioning and Food Service $510K revenue, boat fees and levies, charter operations Fuel Revenue $6.8M (excluding VAT), marina fees (excluding VAT), provisioning and food, fuel, yacht maintenance and Yacht Maintenance and Repair Revenue $20M repairs, and on-land recreation (shopping, tours and Revenue from Shopping, Tours, Excursions $3.9M excursions). For reference to the calculations, refer to Total Revenue $62M Annex VI. Table 23 Cabo Verde Yacht Tourism Study 2023 82 Section 8 In addition, we estimate that our recommendations Local Economic Opportunities and Strategic can, when implemented, lead to the development of Collaboration in Mindelo. The scenario acknowledges an estimated 200 new jobs for Cabo Verde. the governmental role in economic opportunities for Cabo Verde’s citizens through encouraging local Visitor Center Impact and Vessel Size Focus in investment in nautical tourism. Mindelo presents an Mindelo. The establishment of a visitor center is opportunity for collaboration with entities such as projected to extend visitor duration. Although the ARC+ and Ocean Race to promote extended stays for number of hotel nights and meals has not been vessels transiting between the Mediterranean and the increased, an extension is anticipated with the Caribbean. The aim is to establish Cabo Verde as a establishment of the visitor center. The focus in home port. Mindelo and proposed marinas is on vessels smaller than 15 meters (50 ft), constituting 60 percent of the vessels, to target the sports fishing market. Targeted marketing towards high-net-worth individuals and charter companies is expected to attract larger vessels in the future. Cabo Verde Yacht Tourism Study 2023 83 Notes Cabo Verde 84 Yacht Tourism Study 2023 Notes 1. (2023). Yachting Industry Market Trends & 2023 thy-are-moving-toward-intangible-luxury-assets-in- Predictions. Galati Yacht Sales. https://www.galati- cluding-passports-and-healthcare-01597963745 yachts.com/yachting-news/yachting-industry-mar- 10. (2023) Charter Market Report. IYC. https://issuu. ket-trends-2023-predictions com/iycsuperyachts/docs/charter_market_report_ june_2023_issuu 2. (2023) Global Yacht Market (by Propulsion, Cate- 11 Marine Traffic. (2023) www.marinetraffic.com gory, Type, Length, & Region): Insights and Forecast 12 Marine Traffic. (2023) www.marinetraffic.com with Potential Impact of COVID-19 (2022-2026). Kon- 13 Marine Traffic. (2023) www.marinetraffic.com cept Analytics https://www.researchandmarkets.com/ report/yacht#tag-pos-1 14. Marine Traffic. (2023) www.marinetraffic.com 3. Dazert, R., de Waard, M., & Webster, F. (2023). The 15. (2023) World Ultra Wealth Report 2022. Wealthx State of Yachting 2023. SuperYacht Times. https://dri- https://wealthx.com/reports/world-ultra-wealth-re- ve.google.com/file/d/1Asv76GeDZZt_4zIJHaR- port-2022 rqUxjv2NoKHT/view?usp=sharing 16. (2023) Global Yacht Market (by Propulsion, Cate- 4. (2022) Ever Wonder: How Many Yachts Are There gory, Type, Length, & Region): Insights and Forecast in the World?. Yatco. https://www.yatco.com/how- with Potential Impact of COVID-19 (2022-2026). Kon- many-yachts-are-there-in-the-world/ cept Analytics https://www.researchandmarkets.com/ report/yacht#tag-pos-1 5. (2023) Superyachts. Warsash Maritime School. ht- tps://maritime.solent.ac.uk/maritime-industry/su- 17. (2023). Yacht Charter Market Size, Share & CO- peryachts VID-19 Impact Analysis, By Yacht Type (Motor Yacht, Sailing Yacht, and Others), By Yacht Size (Up to 40m, 6. (2023) World Ultra Wealth Report 2022. Wealthx 40 to 60 m, and Above 60m), By End-Use (Leisure, Bu- https://wealthx.com/reports/world-ultra-wealth-re- siness, and Others), By Contract Type (Bareboat and port-2022 Crewed), and Regional Forecasts, 2023-2030. Fortune Business Insights. https://www.fortunebusinessinsi- 7. (2023) Global Yacht Market (by Propulsion, Cate- ghts.com/yacht-charter-market-105123 gory, Type, Length, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2026). Kon- 18. (2023). Yacht Market Size - By Type (Flybridge cept Analytics https://www.researchandmarkets.com/ Yacht, Sports Yacht, Cruiser Yacht), By Length (Be- report/yacht#tag-pos-1 low 24 meters, 24 - 45 meters, Above 45 meters), By Propulsion (Motor, Sail), Regional Outlook & Global 8. López, A. (2023) Average daily expenditure of in- Forecast 2023 - 2032. Global Market Insights. https:// ternational tourists in Spain from 2010 to 2022. Sta- www.gminsights.com/industry-analysis/yacht-mar- tista. https://www.statista.com/statistics/449607/ ket average-daily-expenditure-by-international-tou- rists-in-spain/ 19. Shah, R. (2023) Yacht Charter Market Outlook (2023 to 2033). Future Market Insights. https://www.future- 9. Block, F. (2020). The Wealthy Are Moving Toward marketinsights.com/reports/yacht-charter-market Intangible Luxury Assets, Including Passports and Healthcare. Barrons. 20. Johnson, T. (2023). Superyachts and Private Travel: h t t p s: // w w w. b a r r o n s .c o m /a r t ic le s / t h e -w e a l- Discover the Latest Trends. International Banker. ht- Cabo Verde Yacht Tourism Study 2023 85 tps://internationalbanker.com/life-arts-travel/super- yachts-and-private-travel-discover-the-latest-trends/ 30. (2020). Governo decide, por ajuste direto, licencia- mento para dragagem de areia. Governo de Cabo Ver- 21. (2023) Charter Market Report. IYC. https://issuu. de. https://www.governo.cv/governo-decide-por-ajus- com/iycsuperyachts/docs/charter_market_report_ te-direto-licenciamento-para-dragagem-de-areia/ june_2023_issuu 31. (2023). Reverse Osmosis & Water Treatment in 22. (2023). Mediterranean Yacht Charter. Yacht Char- Cape Verde. Pure Aqua. https://pureaqua.com/rever- ter Fleet. https://www.yachtcharterfleet.com/medite- se-osmosis-water-treatment-in-cape-verde/ rranean-yacht-charters-1548.htm 32. Serra, M., De Sousa, J. F. (2021). Nautical Recrea- 23. (2023). Economic Impact Research. World Travel tion and Development of Tourism in Cape Verde. & Tourism Council. https://wttc.org/research/econo- Portus Online. https://portusonline.org/wp-content/ mic-impact uploads/2021/12/Cabo_Verde 24. (2023) Estatísticas do Turismo 2022. Instituto 33. Hammick, A. (2004). Atlantic Islands: Azores, Ma- Nacional de Estatística (INE) https://drive.google. deira Group, CanaryIslands and Cape Verde (4th ed.). com/file/d/1b9N_vcE1jxMh9ho5RjwoSVIKpNJsBcnw/ Imray Laurie Norie & Wilson Ltd view?usp=sharing 34. Brossmann, K., & Megroz, A. (2023). Harbours & 25. Resende-Santos, J. (2019) Cape Verde and the risks of Anchorages Cabo Verde Islands: Sailing and Naviga- tourism specialization: the tourism option for Africa’s tion. Amazon small states, Journal of Contemporary African Studies, 37:1, 148-168, DOI: 10.1080/02589001.2019.1619916 35. (2023). Porto do Tarrafal. Enapor. http://www.ena- https://www.tandfonline.com/doi/abs/10.1080/02589 por.Cabo Verde/page/porto-do-tarrafal 001.2019.1619916 36. (2023). Gestão de Terminais de Cruzeiros e Náu- 26. Bunting, E. (2023) The ‘easy’ way to sail across the tica de Recreio. Enapor. https://drive.google.com/ Atlantic? Yachting World. https://www.yachtingworld. file/d/1zbS7OerNyNGY6cNs2J_U LQTGcwN7f L5E/ com/races/arc/the-easy-way-to-sail-across-the-at- view?usp=drive_link lantic-144690 37. (2023). Hilton Cabo Verde Sal Resort. Hilton ht- 27. Marine Traffic. (2023) www.marinetraffic.com tps://www.hilton.com/en/hotels/sidcvhi-hilton-ca- bo-verde-sal-resort/ 28. (2017). Fogo: Fishermen’s Association disputes the 38. (2023). Hotel Riu Cabo Verde 5*. Riu. https:// way sand dredging is being done on the coasts of the www.riu.com/en/hotel/cape-verde/island-of-sal/ho- island. Inforpress. https://inforpress.cv/fogo-fisher- tel-riu-palace-cabo-verde/ mens-association-disputes-the-way-sand-dredging- is-being-done-on-the-coasts-of-the-island/ 39. Marine Traffic. (2023) www.marinetraffic.com 29. (2023). Posicionamento sobre dragagem de areia 40. Marine Traffic. (2023) www.marinetraffic.com na ilha do fogo. Projecto Vitó Cabo Verde. https:// projec tov ito.org /posiciona mento-sobre-d raga- 41. Marine Traffic. (2023) www.marinetraffic.com gem-de-areia-na-ilha-do-fogo/. Cabo Verde Yacht Tourism Study 2023 86 42. Marine Traffic. (2023) www.marinetraffic.com 55. Marine Traffic. (2023) www.marinetraffic.com 43. Gomes, J. (2023). Interview in Marina Mindelo with Jackie Gomes in the Travel Mission [Interview by D. Cohanpour]. 44. Marine Traffic. (2023) www.marinetraffic.com 45. (2013). GUIA DO PORTO GRANDE 2012/13. Enacol. http://www.enacol.cv/wp-content/uploads/2019/05/ Guia-Guide-Porto-Grande-2012-2013.pdf 46. Santa Fe International Resort (2023). https://www. santafeinternationalresort.com 47. Semedo, J., Gomes, S. (2006) Estudo de impacto ambiental Marina da Murdeira. TURIM, Sociedade de Turismo e Imobiliária, S.A. https://www.eia.nl/ docs/mer/diversen/os25_074-005_microsoft_word_-_ eia-marina-texto.pdf 48. Gomes, J. (2023). Interview in Marina Mindelo with Jackie Gomes in the Travel Mission [Interview by D. Cohanpour]. 49. ARC+ Itinerary (2023). World Cruising https:// www.worldcruising.com/arc_plus/arcplus_itinerary. aspx 50. Marine Traffic. (2023) www.marinetraffic.com 51. ARC+ Itinerary (2023). World Cruising https:// www.worldcruising.com/arc_plus/arcplus_itinerary. aspx 52. Atlantic Rally for Cruisers. (2023). Interview re- garding the Atlantic Rally for Cruisers event. [Perso- nal communication]. 53. Luxury Yacht Charters, 2023. https://luxuryyacht- charters.com/ 54. Marine Traffic. (2023) www.marinetraffic.com Cabo Verde Yacht Tourism Study 2023 87 Annexes Cabo Verde 88 Yacht Tourism Study 2023 Annex I Annex I: Methodology re demand for yachting without considering any additional investments. This forecast takes into Phase 1: Market Analysis account factors such as seasonality and other va- riables that might influence demand. 1. Data Source: We rely on a primary data source, b. Forecasted Demand in Cabo Verde (With Ad- MarineTraffic, which offers historical data on lei- ditional Investing): Building on insights from sure vessel traffic in and out of the ports of Min- Seychelles and Costa Rica as benchmarks, we eva- delo, Palmeira, and Santa Maria in Cabo Verde. luate the potential impact of additional invest- 2. Data Variables: Key variables extracted from the ments in Cabo Verde’s yachting infrastructure, MarineTraffic dataset include information such marketing initiatives, and regulatory enhance- port country, port name, UNLOCODE, Maritime ments. We adjust growth rates and demand pro- Mobile Service Identity (MMSI), call sign, ves- jections accordingly, offering a forward-looking sel name, vessel type, vessel flag, vessel length, view of the yachting sector’s growth potential in owner, manager, timestamp (in UTC), move type Cabo Verde under different investment scenarios. (arrival or departure), and the boat’s origin. 3. Time Period: We analyze the data spanning Then, we developed a list of yacht market customers the past decade to capture historical trends and from whom we needed to obtain data. This included growth rates, allowing for a robust understanding the two market segments below. of the evolution of leisure vessel traffic in Cabo Verde. To provide context and benchmarks, we The first group was yacht brokers. Yacht brokers are also gather ten years’ worth of similar data for integral to the yacht charter and sales industry, ser- Seychelles and Costa Rica. ving as key intermediaries between clients and char- ter destinations. We focused on charter brokers based Data Analysis in Europe primarily given that based on the review of MarineTraffic data, this is where charters to the Ma- a. Growth Rates in Cabo Verde: The analysis invol- caronesia ecoregion, along with the Azores, the Ca- ves calculating year-on-year growth rates in leisure nary Islands, Madeira, and the Savage Isles, are pre- vessel traffic for each of the three ports in Cabo Ver- dominately coming from. The questionnaire itself is de, specifically Mindelo, Palmeira, and Santa Maria, provided in Appendix 1. based on the historical data. b. Benchmarking Against Models: In order to con- We initiated conversations with prominent interna- textualize Cabo Verde’s yachting market develop- tional yacht brokers who oversee a network of other ment, we select Seychelles and Costa Rica as ben- brokers. They will be entrusted with distributing the chmark destinations. While they are not direct questionnaire to their subordinates, thereby ensuring regional competitors, they serve as valuable models a diverse and expansive data set. We distributed the due to their thriving yachting sectors, and they questionnaire to 700+ brokers and we gathered 18 res- also cater to the ecotourism and explorers’ niche. ponses, which we analyzed. We analyze growth rates in leisure vessel traffic for both Seychelles and Costa Rica over the same ten- The questionnaire we have devised aims to address year period and investigate key events that may the following objectives: have triggered spikes in yachting demand, such as legislative changes in Costa Rica in 2021. • Marketing Strategies: To gain insights into how yacht brokers market Cabo Verde as a yachting Demand Forecasting destination. • Client Selection: To determine the criteria used a. Forecasted Demand in Cabo Verde (As Is): by brokers when recommending Cabo Verde as We employ historical growth rates in leisure ves- a charter destination and identifying the target sel traffic within Cabo Verde to extrapolate futu- clientele. Cabo Verde Yacht Tourism Study 2023 89 Annex I • Linkages with Canary Islands: To ascertain the Ocean Race and the ARC+ Races. The Explorer’s Rally extent to which brokers emphasize the connec- organizers did not respond to the requests for inter- tions between Cabo Verde and the Canary Islands. views. The interview questions for the rally organi- • Challenges in Selling Cabo Verde: To gauge the zers and participants are in Appendix 2. perceived difficulties in promoting Cabo Verde as a charter destination and identify the underlying Using the information from the market analysis we reasons. identified market segments, needs of each market • Recommendations for Improvement: To solicit segment, traveler preferences and a forecasted de- suggestions from brokers on potential enhance- mand for a yachting market in Cabo Verde. ments to position Cabo Verde more attractively in the charter market. Phase 2: Current State Assessment Then, we identified the rallies and fleets segment as The choice to specifically assess Sal Island, São Vicen- the second market customer segment from which it is te, and Santiago Island for a yacht assessment project important to collect data. Rallies and fleets that come in Cabo Verde over other islands is driven by several to Cabo Verde are the yearly ARC+ (Atlantic Royal strategic considerations: Cruising + Race), the Ocean Race (which had its first year in 2022), and the Explorer’s Rally. We dissemi- nated requests to organizers of all three rallies and interviewed eight participants and organizers of The Key areas of focus in the current state assessment Factor Description São Vicente in the islands has yachting infrastructure with one marina, while Sal and Santiago have ongo- Yachting Infrastructure ing marina development projects. These islands experience consistent yacht anchorages, especially during peak season (November-February). Sal Island, Santiago, and São Vicente feature international airports with regular flights, increasing their Accessibility accessibility and appeal as potential yachting hubs for global tourists and yacht enthusiasts. The historical attraction of yacht charters and sailing enthusiasts to these islands provides a wealth of Historical Yachting Activity existing data and experiences, offering valuable insights for assessing their potential. Sal, São Vicente, and Santiago are tourist destinations with beaches, cultural experiences, and natural Tourism Appeal features. Their tourism infrastructure supports yachting with onshore activities and amenities. Santiago has potential to improve its tourism and increase its national importance. These islands contribute to Cabo Verde’s economy and tourism industry, making them priority areas for Economic Significance assessing yachting’s economic impact and potential for growth. Sal and Santiago are strategically positioned within the Cabo Verde archipelago. Sal is well-situated for Regional Positioning exploring neighboring islands as well as the African continent, given its proximity. Santiago serves as the nation’s capital and offers connectivity to other parts of Cabo Verde. Cabo Verde Yacht Tourism Study 2023 90 Annex I Other islands in Cabo Verde, in particular São Nicolao possible to gather some important information for this and Maio, can be subjects of a further study. After alig- project. ning on the specific islands we will focus on, we priori- tized specific audiences to obtain data for the current From Government, we aimed to understand the below state analysis. These audiences included: to give us an understanding of the current state of yachting policy and investment in Cabo Verde: Government Entities • What is the current demand for yacht tourism in Collaboration with government officials and relevant Cabo Verde? authorities provided insights into the existing regu- • Which market segments does the government see latory framework, policies, and potential initiatives to as the most promising for yacht tourism? support the growth of the yachting industry in Cabo • Are there specific regions or islands within Cabo Verde. The Government entities that we met with on Verde targeting yacht tourists more than others? the mission consisted of the following entities. We in- • What existing infrastructure supports yacht tou- terviewed these Government entities to request key in- rism? formation in relation to the potential for yacht tourism, • What are the current customs and immigration past yacht tourism development projects, as well as to procedures for yachts entering Cabo Verde? request current policies or regulations involving leisure • Are there specific safety regulations that yacht vessels in Cabo Verde. We chose these entities as they operators should be aware of when in Cabo Verde have a direct influence on policy and investment deci- waters? sions surrounding maritime tourism in Cabo Verde. • What are the licensing requirements for yachts and their crew in Cabo Verde? a. Câmara Municipal do Tarrafal - Santiago • In your perspective, what are the strengths and b. Chamber of Tourism (Câmara Turismo) - Sal weaknesses of the yachting sector in Cabo Verde? c. CMSV (Câmara Municipal São Vicente) - São Vicente • Based on current trends and policies, what oppor- d. EMAR (Sea School) - São Vicente tunities and threats do you foresee for the yach- e. ENAPOR (Cabo Verde Port Authority) - São Vicen- ting industry? te and Sal • Are there plans to expand or improve marine faci- f. IMP (Maritime Port Institute) - São Vicente and Sal lities for yachts in the near future? g. Minister of Tourism and Transports - São Vicente • What services does the government currently and Sal offer or plan to offer to attract yacht tourists? h. Ministry of the Sea - Santiago and São Vicente • What regulations or policies are in place related i. ONAVE - São Vicente to yacht tourism? j. Port of Palmeira - Sal • How does yacht tourism contribute to the nation’s k. Port of Praia - Santiago employment rate? l. Port of Tarrafal - Santiago • What are the current fees and taxes associated m. Porto Grande - São Vicente with yacht tourism? n. Praia City Hall - Santiago • How does the government see yacht tourism im- pacting local rental markets? In addition, as several of these entities are based in • Are there any vessels owned or resident in Cabo Praia, we organized a Government Roundtable on Sep- Verde that could be classified as a yacht? tember 8th focused on providing an overview of the • What activities and/or attractions in Cabo Verde yachting sector and yachting market as we all as to that would be helpful in making the destination pose questions related to the strengths, opportunities attractive as a yachting destination? improvement areas and threats to the yachting market • Conversely, what impediments do you see? in Cabo Verde. This was rather important since it was Cabo Verde Yacht Tourism Study 2023 91 Annex I Overall, we interviewed 25 government officials in Assessing Private Sector Impact Cabo Verde and have included the findings. Private sector businesses play a significant role in the overall economic impact of yacht tourism. Their Private Sector Businesses input provides insights into the economic benefits or challenges associated with yachting activities, inclu- Surveying private sector businesses, such as hotels, ding job creation, revenue generation, and expansion repair companies, charter companies, and restau- opportunities. rants, during a yacht tourism opportunity analysis in Cabo Verde is crucial for several reasons. We surveyed 18 businesses largely in Sal and São Vicente given the larger amount of activity in these two islands in yach- ting over Santiago. Through the survey, we looked to gather information on the following themes: Business impact focus areas Aspect Description By surveying businesses, we can gauge their perception of Cabo Verde's potential as a yacht tourism des- Market Potential tination. This helps in understanding if the private sector is aligned with the development of yacht tourism and if they see opportunities for growth. Businesses interacting with yacht tourists have firsthand experience in dealing with this customer seg- Customer Insights ment. Their feedback on the number of yacht customers, changes in demand over time, and their impact on businesses is invaluable for the analysis. Understanding what services or amenities businesses currently offer to yacht tourists helps in identifying Service Offerings existing infrastructure and potential areas for improvement or expansion. Private sector businesses can highlight challenges they face in accommodating yacht tourists. Their rec- Challenges and Solutions ommendations for addressing these challenges and enhancing the yacht tourism experience are essential for future planning. Attractions and Unique Businesses can share their perspective on the key attractions and unique aspects of Cabo Verde that Selling Points appeal to yacht tourists. This information can inform marketing strategies. Gathering feedback on what the government or relevant authorities can do to promote and develop yacht Policy Recommendations tourism while addressing potential issues or challenges is vital for crafting effective policies and initiatives. Cabo Verde Yacht Tourism Study 2023 92 Annex I The survey results provided us insights for the policy and environmental condition for a marina. recommendations and understanding of investment • Sal: Palmeira - We completed a site visit of Pal- opportunities for training, local skills, and infras- meira to understand the infrastructure and envi- tructure. ronmental conditions at the Port of Palmeira. • São Vicente: Marina Mindelo - We completed a Site Visits site assessment of Marina Mindelo, the only acti- ve Marina in Cabo Verde, to understand the dyna- In addition, to understand the current state of infras- mics around an established marina locally. tructure at both marinas and ports in São Vicente, Sal • São Vicente : Porto Grande - We completed a and Santiago, we performed site assessments at the site assessment of Porto Grande, which is a com- following locations: mercial port that often allows for leisure vessels to dock overnight as well as is a site for past at- • Santiago: Port of Tarrafal - This port was cho- tempts at marina development. sen as it has been a point of interest by the go- vernment in the past for marina development. In In the site visits, we looked at key conditions to un- addition, the local and national government has derstand the (1) fit for the infrastructure and con- invested in tourism development locally. ditions that yacht customers are looking for (2) the • Sal: Santa Maria - Although there is no port or challenges that the site could face in continued de- marina in Santa Maria, we surveyed a few key velopment and (3) the past investment completed in areas to understand the potential of the terrain each site. The key conditions we looked at were: Site visit - key conditions Aspect Description Marina Capacity Determine the maximum vessel size that marinas can accommodate and their current capacity. Assess the number of berths, their size, and the depth of water to accommodate different yacht sizes. Exam- Berth Facilities ine the condition of docks, cleats, and mooring lines for safety and convenience. Evaluate how easily yachts can access the marina or port, considering navigational aids, channels, and Accessibility clearance under bridges or power lines. Assess the depth and width of the access channel. Examine the range and quality of services and amenities available, including fueling stations, waste dispos- Services and Amenities al facilities, fresh water supply, electrical hookups, and Wi-Fi connectivity. Ensure the presence of adequate security measures, such as surveillance cameras, well-lit areas, and Security and Safety secure access control. Evaluate the availability of emergency response services and safety measures. Infrastructure for Yacht Assess the availability of boatyards, workshops, and skilled labor for yacht repairs and maintenance. Con- Maintenance sider infrastructure for haul-out and dry storage. Identify the facilities offered by marinas, such as refueling, repair, provisioning, and other services catering Facilities to yacht owners. Understand the range of additional services provided, such as guided tours, catering, entertainment, and Additional Services amenities for yacht tourists. Determine the current number of berths available in marinas and their capacity in terms of yacht size and Berth Capacity quantity. Investigate whether yachts can refuel at marinas and assess the quality and pricing of fuel compared to Fuel Quality and Price regional standards. Cabo Verde Yacht Tourism Study 2023 93 Annex I Aspect Description Fee Structures Understand the fee structures for yacht docking, maintenance, and other services provided by marinas. Yacht Type Ratios Explore the ratios between sail and motor yachts received by marinas. Using this information, we were able to complete a Locations: current state assessment of infrastructure across the Sal, Santiago and São Vicente islands. • Canary Islands: Proximity to Cabo Verde and a mature yacht tourism market made this destina- All of the travel mission findings were analyzed and tion ideal for understanding the target market included in the Current State Analysis section, for- and requirements needed to attract it to Cabo ming the foundation of key recommendations for Verde. Insights from the Canary Islands informed Cabo Verde to take advantage of the yacht tourism Cabo Verde’s development plan, considering in- market. frastructure, services, and amenities. • Grenada: Serving as a benchmark destination for Phase 3: Competitive Analysis many yachts traveling from Europe to the Carib- bean, Grenada provided valuable insights into ya- Comparison points: chting routes and the final destination for many travelers who make a stopover in Cabo Verde. • Regulatory Framework: Scrutinizing the legal This comparison also shed light on how a smaller and administrative rules that governed yachting nation with less GDP sustains a flourishing yach- activities in Cabo Verde and its counterparts to ting industry. provide insights into navigating regulations and • Croatia: Croatia’s well-developed yachting in- potential barriers. dustry offered insights into coastal management, • Safety Regulations: Delving into the safety stan- marina development, and promotion of nautical dards, protocols, and enforcement mechanisms in tourism. It served as a model for sustainable ya- place for yachting operations to ensure a secure chting growth and balancing economic benefits and attractive yachting environment. with environmental conservation. • Licensing Procedures: Comparing the licensing requirements and procedures in Cabo Verde to those of other destinations to identify inefficien- cies or streamlined processes. • Recreation and On-Land Amenities: Assessing the range and quality of recreational opportunities and amenities available for yachters when on land to highlight potential areas for improvement. • Location Advantages: Analyzing the geographi- cal advantages and challenges of each destination to understand Cabo Verde’s unique selling points as a yachting hotspot. Cabo Verde Yacht Tourism Study 2023 94 Annex I Annex I.I: Questionnaire about Cabo Verde for Yacht Brokers Cabo Verde Yacht Tourism Study 2023 95 Annex I Cabo Verde Yacht Tourism Study 2023 96 Annex II Annex II: Market Overview and Trends Yacht Industry Overview The yachting industry is a business that involves various aspects of mana- ging, servicing, and facilitating activities related to private and charter ya- chts. It encompasses a wide range of services and activities associated with these vessels, including their purchase, operation, maintenance, and char- tering for recreational and leisure purposes. Key components of the yachting industry include: Key components of the yachting industry Segment Description Yacht Manufacturing and Involves the construction, design, and sale of yachts. Companies in this sector build and sell luxury boats to Sales individuals or charter companies. Refers to renting a yacht for a specific period, often with a crew, for leisure purposes. Charter companies Yacht Chartering provide these services to individuals or groups looking to experience a yacht vacation without owning a vessel. Companies oversee the day-to-day operation, maintenance, and logistics of yachts. They ensure that ves- Yacht Management sels are in top condition, compliant with regulations, and ready for charter or private use. Yacht brokers facilitate the buying and selling of yachts, connecting buyers and sellers. They often provide Yacht Brokerage expertise on yacht values, market trends, and the purchase process. Crew members, including captains, deckhands, stewards, and chefs, play a crucial role in operating and Yacht Crew maintaining yachts. They provide services to guests and ensure the safe navigation of the vessel. Marinas and docking facilities provide berthing spaces, fueling, repairs, and other amenities for yacht Marinas and Dock Services owners and charter companies. Companies specializing in yacht services offer maintenance, repair, and refitting services to keep yachts in Yacht Services and Repairs optimal condition. Financial institutions provide loans and financing options for yacht purchases. Insurance companies offer Yacht Finance and Insurance coverage for yacht owners to protect against risks and liabilities. Many regions with coastlines or attractive waters promote yacht tourism, offering destinations, activities, Yacht Tourism and services to attract yacht owners and charterers. Yacht operations are subject to various international and local regulations, particularly with regard to safe- Regulatory Compliance ty, environmental standards, and maritime laws. Compliance with these regulations is essential. Cabo Verde Yacht Tourism Study 2023 97 Annex II Yachting activities play a significant role in bolstering the local economy through various means, including: Key role of yachting in bolstering local economy Activity Role Yacht Manufacturing and Involves the construction, design, and sale of yachts. Companies in this sector build and sell luxury boats to Sales individuals or charter companies. Refers to renting a yacht for a specific period, often with a crew, for leisure purposes. Charter companies Yacht Chartering provide these services to individuals or groups looking to experience a yacht vacation without owning a vessel. Companies oversee the day-to-day operation, maintenance, and logistics of yachts. They ensure that ves- Yacht Management sels are in top condition, compliant with regulations, and ready for charter or private use. Yacht brokers facilitate the buying and selling of yachts, connecting buyers and sellers. They often provide Yacht Brokerage expertise on yacht values, market trends, and the purchase process. Crew members, including captains, deckhands, stewards, and chefs, play a crucial role in operating and Yacht Crew maintaining yachts. They provide services to guests and ensure the safe navigation of the vessel. Marinas and docking facilities provide berthing spaces, fueling, repairs, and other amenities for yacht Marinas and Dock Services owners and charter companies. Companies specializing in yacht services offer maintenance, repair, and refitting services to keep yachts in Yacht Services and Repairs optimal condition. Financial institutions provide loans and financing options for yacht purchases. Insurance companies offer Yacht Finance and Insurance coverage for yacht owners to protect against risks and liabilities. Many regions with coastlines or attractive waters promote yacht tourism, offering destinations, activities, Yacht Tourism and services to attract yacht owners and charterers. Yacht operations are subject to various international and local regulations, particularly with regard to safe- Regulatory Compliance ty, environmental standards, and maritime laws. Compliance with these regulations is essential. Yachting destinations attract tourists who contribute to the local economy through spending on accom- Tourism Revenue modations, dining, entertainment, and local attractions. The influx of yacht enthusiasts and their guests provides a steady stream of revenue for businesses in the area. Tour Operators and Many yachting destinations offer guided tours, water sports activities, and adventure excursions. Local Excursions tour operators and adventure companies profit from yachters seeking unique experiences. Marinas and ports catering to yachts generate income from docking fees, fuel sales, and maintenance Marina and Port Operations services. These facilities employ local staff, purchase supplies, and pay taxes, which directly benefit the local economy. Yacht owners and guests often need transportation to and from airports, as well as local transportation Transportation Services during their stay. Taxi services, car rental agencies, and chauffeur services benefit from this demand. Yacht charter companies rent out vessels to tourists, providing a source of income for local boat owners and Yacht Charter Services crews. These businesses also create jobs in reservations, maintenance, and customer service. Yacht tourists contribute to the patronage of local cultural attractions, museums, and historical sites, Cultural Attractions which helps preserve the area's heritage and provides income to these institutions. Yacht owners and operators often require various goods and services, from provisions and equipment to Local Suppliers repairs and maintenance. Local suppliers, such as grocery stores, marine supply shops, and repair yards, benefit from this demand. Cabo Verde Yacht Tourism Study 2023 98 Annex II Activity Role Yacht tourists frequently dine out at local restaurants and use catering services for onboard events. This Restaurants and Catering boosts the restaurant industry and provides employment opportunities for chefs, servers, and support staff. Yachting destinations typically invest in environmental preservation and sustainable practices to maintain Environmental Conservation their appeal. For example, initiatives like marine conservation efforts. Yachting can benefit a local economy by generating revenue through taxes (VAT, charter fees, etc), marina Taxes and Fees fees, sales taxes, and overall increased tourism-related spending. For the negotiation of yachts with less than 10-24 m collaborations can involve offering yacht charters as (33-78 ft), local tourism operators may either own the part of vacation packages or facilitating bookings throu- vessel or rent it from a third party. They would then gh their tour booking desks and concierge services. create and present tours to hotels, and these establi- shments would then offer them to tourists. Travelers: These travelers are interested in exploring a destination’s coastal beauty and maritime activities. They engage directly with local yacht operators or ac- cess yachting services through hotels and tour booking desks. For vessels over 24 meters (78 ft), operations are more sophisticated. Typically, yacht owners rely on a captain, who takes care of the tactical aspects of the boat, and a management company, which handles the maintenance and rental of the vessel. Brokers approach these com- panies to market the boat to individuals interested in renting them during the season. Typical Stakeholder relationships for smaller yacht operators These stakeholders can be defined according to the be- low: Local Yacht Operators: Local yacht operators are in- dividuals or companies that typically own or lease ya- chts intended for charter or rental to tourists and trave- lers. These operators play a pivotal role in the yachting ecosystem by providing vessels and related services for tourists interested in exploring the coastal and mariti- me attractions of a destination. Their marketing efforts are directed towards local hotel concierges and tour Typical Stakeholder relationships for larger yacht operators booking desks to attract potential customers. Hotels: Hotels may range from boutique to large resort properties and often collaborate with local yacht opera- tors to offer yachting experiences to their guests. Such Cabo Verde Yacht Tourism Study 2023 99 Annex II These stakeholders can be defined as follows: ses, private events, or corporate outings. Consumers engage with yacht brokers and management compa- Captains: Captains are experienced and highly ski- nies to identify, book, and enjoy yachting experiences lled maritime professionals responsible for oversee- tailored to their preferences. ing the daily operations and navigation of luxury ya- chts. They maintain close communication with yacht The European Boating Industry estimates there are owners, providing regular updates on the yacht’s con- 48 million European citizens who regularly parti- dition, safety, and operational status. Captains play a cipate in recreational marine activities (36 million pivotal role in ensuring the safety and well-being of of whom are boaters). Furthermore, over six million both the vessel and its passengers. boats are kept in European waters while 10,000 mari- nas provide over one million berths both inland and Yacht Owners: Yacht owners are individuals or enti- in coastal areas. ties who own luxury yachts. They rely on the exper- tise and services of management companies to opti- From 2010 to 2020, approximately 100 new yachts mize the utilization and management of their yachts. were launched each year56, leading to a current count Yacht owners seek to maximize the return on their of over 5,000 luxury vessels measuring over 24 me- investment while ensuring the vessel is maintained ters cruising the world’s oceans. The demand for new to the highest standards and adheres to all legal and and used superyachts remains high57, and the market regulatory requirements. for superyachts exceeding 50 meters in length is ex- pected to see continued growth in the coming decade. Management Companies: Management companies Moreover, this trend is expected to increase in 2023, are professional organizations or service providers especially for larger yachts over 100 meters. specializing in the management and operation of lu- xury yachts. These companies handle various aspects, The market for yachts measuring up to 40 meters in including crew management, maintenance, charter length represents the largest global segment. These bookings, financial management, and compliance yachts find versatile applications in both personal with maritime regulations. Their primary goal is to and competitive recreational boating activities. The ensure the efficient and profitable operation of yachts 40-meter yacht charter offers several advantages, on behalf of their owners. such as its sailing capabilities, which harness wind di- rection and promote fuel efficiency. Additionally, end- Yacht Brokers: Yacht brokers are intermediaries or users favor yachts of this size due to their cost-effec- agents who facilitate the sale, purchase, or charter of tiveness, minimal maintenance expenses, suitability luxury yachts. They play a crucial role in connecting for shallow waters with fixed installations, and ease yacht owners and charterers (consumers) with vessels of use which results in reduced mooring costs. and services. Yacht brokers collaborate with manage- ment companies to access a diverse range of yachts The global yacht market’s growth is not limited to for their clients and engage in marketing efforts to specific regions. This is because a great yachting des- attract consumers interested in chartering yachts for tination is characterized by a combination of factors leisure or special events. that cater to the desires and needs of yacht enthu- siasts. Consumers/Charterers: Consumers or charterers are the end-users of luxury yachting services. They are individuals, groups, or organizations seeking to char- ter yachts for various purposes, such as leisure crui- Cabo Verde Yacht Tourism Study 2023 100 Annex II Key Factors that Yacht Customers Look For Aspect Description Privacy and Exclusivity Many yachters seek secluded anchorages. Crystal-clear waters, picturesque coastlines, and breathtaking landscapes create the perfect backdrop for Natural Beauty a memorable yachting experience. Favorable Weather Yachting enthusiasts seek destinations with reliable, pleasant weather patterns, ensuring safe and enjoy- able sailing year-round. Consistent winds, moderate temperatures, and minimal storms enhance the appeal Conditions of a yachting destination. Infrastructure and Marinas and ports equipped with modern facilities for docking, maintenance, and provisioning are essen- tial. Yacht-friendly services such as repair shops, fuel stations, and a variety of dining and entertainment Amenities options add to the overall appeal. Cultural and Recreational A good destination offers diverse activities on land, from adventure to exploring historical sites and local Opportunities markets to engaging in water sports like snorkeling, diving, or fishing. Yachters appreciate destinations with easy access by sea, well-maintained navigation channels, and Accessibility hassle-free customs and immigration procedures. Proximity to airports with good connections is also advantageous for those arriving by air. A good yachting destination prioritizes the safety of visitors with well-marked channels, up-to-date naviga- Safety tional information, and reliable medical and emergency services. When asked about their clients’ preferred destina- tions, yacht charter brokers58 affirm that islands such Annex III: National-Level Current State Analysis as the British Virgin Islands, Saint Maarten, Baha- mas, and Saint Barthélemy (the Caribbean Sea), as Local Business Ecosystem Survey Results well as Amalfi in Italy, Sardinia, France, Corsica, and Greece (the Mediterranean Sea), are the most popu- Quantitative Findings lar to visit. The research also confirms that following those, the most popular are Croatia in the Adriatic Sea and French Polynesia in the South Pacific. None of the destinations are in Africa or close to Cabo Ver- de. These charters mostly cover all possible travel re- gions, which are the Mediterranean (96 percent), the Caribbean (88 percent), Northeast U.S. (31 percent), Southeast Asia (31 percent), Pacific (35 percent), and the Rest of the World (33 percent). Overall, though they comprise 91 percent of winter season bookings, the Bahamas and Caribbean are see- ing slower seasons in comparison to 2022. U.S. trave- lers are chartering more in the Mediterranean versus Based on the sample size, the findings below should the Caribbean. Even so, the Mediterranean charter be considered directional. season is slower in 2023 than it was in 2022. U.S. and European charterers are looking for new destinations, leaving room for Cabo Verde to position itself and its services. Cabo Verde Yacht Tourism Study 2023 101 Annex III Overall, the biggest impact has been seen in “increase in revenue and sales” with almost 89 percent of bu- sinesses stating it as an economic impact. Second to that was “increased employment” followed by “ability to expand and scale”. Among these local businesses, there is an overwhelming belief that Cabo Verde can become a yacht destination with 100 percent seeing potential in the destination. A majority (55.6 percent) of businesses have had ya- cht customers before. These responses varied mostly based on how close to the shore these businesses were situated, especially in São Vicente. Over 94 percent of these businesses believe that there is a positive economic impact of yacht tourism on the Cabo Verdean economy. Overall, most businesses (83.3 percent) have seen an increase in the amount of yacht tourists in Cabo Ver- de over the last five years. However, the increase has not been linear due to the impact of the Covid-19 pan- demic. Additionally, almost 17 percent of businesses are expecting to see a sharper increase this year with the arrival of the Ocean Race. A majority (55 percent) of businesses have seen “in- creased employment”, “increase in revenue and sa- les,” and “ability to expand and scale” due to the im- pact of yacht tourism on the Cabo Verdean economy. Cabo Verde Yacht Tourism Study 2023 102 Annex III The survey responses regarding the financial impact of the Ocean Race on local businesses in Cabo Verde vary. Some businesses (44.4 percent) reported positive effects, such as an increase in customers during and after the race, attributed to the event’s visibility and word-of-mou- th recommendations. Others (55.6 percent) stated that the event had no positive impact, particularly businesses loca- ted away from the port area. Overall, the impact appears to be mixed, with some businesses benefiting from increa- sed sales and exposure while others remained unaffected. Qualitative Insights 44.5 percent of respondents are currently not seeing sig- nificant business from yachting traffic. Some businesses The survey on yacht tourism in Cabo Verde revealed have highlighted the fact that overall business increases mostly positive experiences in local businesses accommo- in the winter time but others were expecting to see a sha- dating yacht tourists, who are generally seen as easygoing rper increase in business from yachting traffic than they and appreciative. While most businesses reported no cha- have received. llenges, some noted a need for better marina facilities and a few mentioned issues with tourists’ high expectations. Key attractions of Cabo Verde highlighted in the survey include its strategic location, diverse islands, local cuisi- ne, music, and cultural events like the annual Carnival. The country’s natural beauty, safety, family-friendliness, and good value for money were also emphasized. Respondents suggested several improvements to boost yacht tourism, such as increasing marina capacity, focu- sing on yachts over cruise ships, and enhancing marke- ting efforts. They also raised concerns about visa issues and the potential for yacht tourists to settle permanently. 50 percent of businesses see yacht tourism having a po- Other recommendations include improving harbor in- sitive impact on the environment. Among those unsure frastructure, security, and training in yachting-related or who see it having a negative impact, many made the skills. The importance of environmental protection, clear distinction between motor yachts and sailing yachts. Mo- regulations, and the development of more marinas was tor yachts are seen to have a more negative impact than stressed. The government was advised to support exis- sailing yachts. ting marinas and regattas, address security concerns, and expand safe anchoring options to encourage longer stays and exploration of the islands. Cabo Verde Yacht Tourism Study 2023 103 Annex III Annex III.I: National Policy, Customs, Immigration, lieves it has great potential, considering its geographical Safety and Licensing position, sea conditions, which can contribute to diversi- fying the tourism offer and creating decent employment. The operations of the Nautical Tourism governance ins- During this planning cycle, the country states that the titutions are guided by major policy instruments. The- works on the São Vicente Cruise Terminal will be com- se include the National Development Program II for pleted by 2026, positioning Cabo Verde on the cruise rou- 2022-202659 (PEDS II). It is based on the economic specia- te. The country also mentions Blue Economy (Economia lization of Cabo Verde’s islands, valuing its main endoge- Azul) projects, focusing on fisheries development, ship nous assets, and allowing for an average annual economic repair and construction, maritime services, and nautical growth of no less than 5 percent, the eradication of extre- sports, highlighting several investment opportunities for me poverty, the reduction of absolute poverty and regio- the private sector and the implementation of entrepre- nal asymmetries, and the reinforcement of territorial and neurship promotion policies, particularly in the Maritime social cohesion. Special Economic Zone in São Vicente. Regarding the Economic pillar plan60 The country aims to Cabo Verde’s government also has specific legislative ins- ensure economic recovery, budget consolidation, and sus- truments for nautical tourism activities. The two primary tainable growth, promoting diversification and making documents lay down the legal framework61. They are the Cabo Verde an economy circulating in the middle Atlan- “Current Legal Framework Governing Nautical Tourism tic. It relies on four basic guidelines: restoring the activity Activities in Cabo Verde”62 and “Maritime Code of Cabo of companies affected by the Covid-19 pandemic and ac- Verde.”63 Both pieces of legislation exemplify the nation’s celerating the transition from the informal to the formal ambition, the former specifically catering to nautical tou- economy; expanding the range of financial and non-fi- rism and the latter providing a marine charter. nancial instruments to promote private sector invest- ment and employment; focusing on sustainable growth, The main legislation is the Current Legal Framework Go- reducing vulnerabilities to external shocks, and streng- verning Nautical Tourism Activities in Cabo Verde, pri- thening economic resilience through diversification and marily detailed in the Decree-Law No. 37/2015 of 29th transformation of the economy through innovation and July, which was later amended by Decree-Law No. 2/2023 digital entrepreneurship; and creating an institutional on 12th January. Its overarching goal was to consolidate framework for dialogue with various actors involved in various regulations pertaining to recreational nautical business development for policy coordination and moni- activities, maritime tourism, sport fishing, and the navi- toring. gation, stay, and operations of foreign recreational vessels within national waters. Under the Plan for Recovery, the operationalization of the Impact Fund and the Sovereign Fund for Private Invest- Furthermore, the preamble of this legislation highlights ment Guarantee is a focal point. The Impact Fund, worth the law’s adoption of a minimalist intervention approach, $10 million USD, aims to capitalize small and medium-si- promoting the growth of nautical tourism and recreatio- zed enterprises, including nautical tourism, focusing on nal activities while simultaneously safeguarding personal bringing yachts and superyachts, providing shipyards ca- safety, assets, and the natural environment, in line with pable of maintaining and repairing these vessels, as well public interests. Within this framework, yachts opera- as attracting international regattas such as the Ocean ting in the region are required to strictly adhere to the Race. This could put the country on the route of a high set regulations, ensuring compliance and maintaining value-added economy, complementing traditional hotel the standards laid out by the authorities. This is part of tourism with large-scale resort offerings. The country be- a broader initiative to streamline maritime activities, en- Cabo Verde Yacht Tourism Study 2023 104 Annex III hance safety, and uphold the integrity of nautical opera- an opportunity for Cabo Verde to codify and standardize tions within Cabo Verde’s waters. processes in policy as well as to modify policy to promote growth in yacht tourism and investment in yachting. This law was complemented by the Ordinance nº40/2023, of September 20, 2023, which regulates sport fishing and Cabo Verde has established regulations and laws for cus- maritime-touristic activities in Cabo Verde. It determines toms, immigration, maritime safety, and boat licensing. which fish species are allowed to be caught in the coun- The immigration is governed by the Alta Autoridade para try’s waters, the identification of the fishermen, and their a Imigração de Cabo Verde65. Foreign nationals desiring fishing licenses. It also stipulates the use of insurance of entry into Cabo Verdean territory must hold a valid visa up to 2 million Cabo Verdean escudos ($20,000 USD) for appropriate for the purpose of their visit. The issuance of tourist vessels up to 20 meters, and up to 8 people, subject visas can be performed abroad by Cabo Verdean embassies to a fine if the law is not complied with. and consulates, or domestically by the Direção de Estran- geiros e Fronteiras. During the arrival of cruise ships, a task In addition to being governed by a specific legal fra- force is mobilized to cater to tourists in a short timeframe. mework, the Nautical Tourism sector is also complemen- There are specific categories of foreign nationals who can ted by an array of regulatory provisions, such as the Mari- enter Cabo Verde without a visa: time Code of Cabo Verde. It is detailed in the law Law No. 24/X/2023, from 5th of May 2023. This code replaces the • Individuals holding an identity card as an employee one from 12 years ago and provides the following outlines. or agent of a foreign mission or international orga- Recreational navigation is subject to special legislation. nization, issued by the government department res- ponsible for foreign relations. It governs the maritime spaces and addresses legal mat- • Refugees possessing valid travel titles. ters stemming from maritime navigation. While the Co- • Individuals with valid residency permits. de’s individual books and applicable international laws • Citizens from countries benefiting from visa exemp- binding Cabo Verde are respected, its regulations apply tions, either through national laws or international universally to any ship, irrespective of its nationality or accords where Cabo Verde is a party. the origins of its owners. However, these stipulations • Foreign honorary consuls and consular agents of do not limit the authority of other flag or port states, as Cabo Verde. recognized by prevailing international conventions, es- • Native Cabo Verdeans who have acquired foreign na- pecially the provisions highlighted in Title VII of Book tionality, as well as their spouses and descendants, II for foreign state vessels. While vessels under the Cabo can enter upon displaying relevant family relation Verde flag are subject to this Code’s provisions globally, documentation. this does not infringe upon the jurisdiction rights of other coastal or port states under international law. Meanwhile, The Direção de Estrangeiros e Fronteiras is the institution recreational navigation operates under specific laws, but charged with issuing visas and residency permits. Foreign when appropriate, can defer to this Code’s provisions, as nationals wishing to prolong their stay beyond the visa’s long as they align with recreational activities’ essence. duration need to obtain appropriate authorization from this entity. Overall, the Maritime Code of Cabo Verde64 aims to pro- vide a comprehensive and modern legal framework to For entry into Cabo Verde, foreign nationals, especially regulate and promote safe, secure, and sustainable mari- non-residents, should possess a valid passport or equi- time activities in Cabo Verde’s waters. While policies are valent document; a “laissez-passer” issued by states or in place for the governance of marine tourism, specific international organizations recognized by Cabo Verde; classification of yacht regulations, processes, and stan- an identity card as previously described; travel titles for dards is not solidified in current regulation. This presents refugees; or any other documents stipulated in laws or in- Cabo Verde Yacht Tourism Study 2023 105 Annex III ternational conventions involving Cabo Verde. skipper (or in a few places, the entire crew) to visit the ca- Citizens from member countries of the Comunidade Eco- pitao do porto (port captain) or, in less important harbors, nómica dos Estados da África Ocidental (CEDEAO) must the Delegaçao Maritima (harbor office), the Policia Ma- also present an International Vaccination Certificate. ritima (maritime police), and sometimes the Cabo Verde Policia de Fronteira (immigration), though not necessarily Entry may be denied for foreign nationals if they do not in that order. Elsewhere, the local policia deal with pa- cumulatively meet the legal entry requirements or pose a perwork, a process and duration, which varies from place threat to public order, security, or public health. Specifi- to place. cally, foreigners under the age of 16, traveling unaccom- panied without proper permissions, may be denied entry. For certain certified ports like Porto Grande, Porto de Likewise, entry may be denied to those responsible for a Praia Santiago, and Sal Palmera, safety regulations rela- minor if they are not permitted into Cabo Verde. ted to the International Code for the Protection of Ships and Port Facilities (ISPS Code) are implemented. A gulet The structure of customs in Cabo Verde falls under the or captained yacht charter does not need a license to sail Directorate-General of Customs66, overseen by the Minis- in Cabo Verde, however a license is required for a bareboat try of Finance. It is divided into three jurisdictions: Praia yacht charter and documents certifying sailing qualifica- (in Santiago), Mindelo (in São Vicente), and Espargos (in tions must be presented. In the review of current IMP re- Sal). Their mission is to oversee goods that enter and exit gulations, the emphasis on security and safety of vessels Cabo Verde, ensuring that all applicable taxes and fees at ports or marinas is not fully enforced. Enforcement of are collected. The country offers incentives in the form of existing safety regulations under existing Maritime laws exemptions and reductions on duties and taxes for spe- in Cabo Verde detailed in this section is critical. Cabo Ver- cific sectors, including Maritime, Tourism, Agriculture, de is a signatory to a number of international agreements Industry, and Fisheries, to boost economic activity. related to safety and protection of the ocean. Pertaining to safety, these documents include Safety Of Life At Sea For the maritime, the list of allowables includes the im- (SOLAS), which sets forth safety standards for the cons- portation of commercial vessels and tugboats, materials truction, equipment, and operation of ships to ensure the intended for manufacturing, construction, repair, main- safety of life at sea and The International Convention on tenance, or equipment, and spare parts for these vessels, Standards of Training, Certification, and Watchkeeping as well as road tractors and trailers used exclusively on ro- for Seafarers (STCW Convention) which establishes mini- ll-on/roll-off (RORO) cargo ships. These items are exempt mum training and certification requirements for seafarers from customs duties, provided they do not move beyond to ensure safe and competent ship operations. the port cargo terminal or stray more than two kilometers from it67. Additionally, Cabo Verde has enacted the following regu- lations: It is an offense to make landfall anywhere other than at Palmeira on Ilha do Sal, Mindelo on São Vicente, or Por- to da Praia on Santiago—designated ‘Official Sea Border Posts’. Clearance out of the islands must be made from one of the same three harbors, effectively preventing ya- chts from legally visiting either Fogo or Brava before con- tinuing westward. Most commonly, it is necessary for the Cabo Verde Yacht Tourism Study 2023 106 Annex III Chapters of current maritime regulation Chapter Summary This chapter outlines the general provisions related to the safety and standards that national vessels in Chapter I: General Provisions Cabo Verde must adhere to. It emphasizes compliance with international conventions, government regula- tions, and the responsibility of shipowners and captains to ensure safety and environmental responsibility. This chapter details the inspection procedures for national ships in Cabo Verde. It categorizes inspections Chapter II: Inspection of into construction, maintenance, and supplementary inspections, and explains when each type is carried National Ships out. It also discusses the responsibilities and costs associated with these inspections and the potential suspension of ship operations in case of safety issues. Chapter III discusses the issuance and display of safety certificates for ships in Cabo Verde. It distinguishes between international and national certificates based on compliance with safety and pollution prevention Chapter III: Safety Certificates standards. The chapter also addresses the importance of prominently displaying these certificates onboard and the consequences of their absence or expiration. This chapter focuses on the inspection of foreign ships in Cabo Verde's national ports. It describes Cabo Chapter IV: Inspection of Verde's authority as a port control state and the primary focus of these inspections on ship certificates and Foreign Ships documentation. The chapter also highlights the possibility of suspending operations for foreign ships fail- ing inspection due to safety or environmental concerns and the communication process with the flag state. Cabo Verde, as a signatory to international maritime The policy encompasses a multi-faceted approach to tac- agreements like SOLAS and STCW Convention, affirms kling this issue. It begins with systematic identification its commitment to global standards of maritime safety and documentation of abandoned vessels and wrecks and seafarer competence. Nevertheless, the nation’s own along Cabo Verde’s picturesque coastline. This process in- regulations, as detailed from Article 248 to 268, empha- volves cataloging various vessel types, pinpointing their size a structured approach towards both national and fo- locations, capturing ownership details (when available), reign ships. These rules underscore the country’s dedica- and conducting assessments of their impact on the mari- tion to maintaining maritime standards, but their efficacy ne ecosystem and tourism activities. depends on the maritime administration’s diligence and enforcement capability. While the articles are exhaustive, Ownership verification is a pivotal step, especially when they need rigorous implementation to ensure ships, whe- owners can be identified. Cabo Verde should establish ther domestic or foreign, uphold the desired safety and en- clear and transparent procedures for confirming owner- vironmental standards within Cabo Verde’s jurisdiction. ship and initiating contact with owners whenever feasi- ble. This may involve formal notifications through official Lastly, from researchers’ understanding, there is no cu- channels, providing owners with a defined period to re- rrent regulation in place for abandoned boats and wrecks claim or salvage their vessels. For abandoned boats and and across interviews with local marinas and interviews wrecks that pose environmental or navigational hazards, The issue of abandoned boats and wrecks presents a con- Cabo Verde must develop well-defined protocols for their siderable challenge to both the maritime environment safe and responsible removal. Specialized salvage compa- and the tourism industry in Cabo Verde. Addressing this nies can be engaged to conduct these operations while ad- concern through the development of a policy is imperative hering to stringent environmental and safety regulations. to protect the nation’s coastal areas and foster responsible maritime practices. Cabo Verde Yacht Tourism Study 2023 107 Annex III Foreign charter boat process entering Cabo Verde Step Description Organization Responsible 1. Arrival in Cabo Verde waters Captain/Yacht Operator 2. Port Entry and Clearance IMP 3. Customs Declaration Customs and Immigration Office 4. Immigration Clearance Customs and Immigration Department 5. Safety Inspection and Compliance Check IMP 6. Application for Charter Business License DNPM National Directorate for Maritime Policy 7. Environmental Compliance Check DNA National Directorate for Environment 8. Payment of Applicable Taxes and Fees DNPM National Directorate for Maritime Policy 9. Issuance of Cruising Permit IMP 10. Start Charter Operations Charter Company Foreign and Local Private Use Vessels in Cabo Verde Foreign private owned vessels process entering Cabo Verde Step Description Organization Responsible 1. Arrival in Cabo Verde waters Captain/Yacht Operator 2. Port Entry and Clearance IMP 3. Customs Declaration Customs and Immigration Office 4. Immigration Clearance Customs and Immigration Department The tax policies and regulations in Cabo Verde have un- • Corporate income tax credit of up to 30 percent of the dergone a few changes in recent years and provide gene- eligible investments made in tourism, touristic pro- rous incentives for research and development in areas of motion activities and real estate tourism project in- science and technology. Similarly specific legislation may vestment; be considered to accelerate investment in marinas and to • An exemption from IUP on the acquisition of real es- encourage yachting activity. Touristic Utility Status (Es- tate used for the construction and installation of tou- tatuto de Utilidade Turística) is currently granted to the ristic projects if granted by the municipality; following types of touristic projects: • A reduced rate of 5 percent of customs duties on the importation of materials and equipment used in tou- • Installation, granted to new tourist resorts and faci- ristic projects; and lities; • Exemptions from stamp duty on the financing of tou- • Operation and exploitation, granted to existing tou- rism investments. rist resorts and facilities; and • Refurbishment, granted to existing tourist resorts The tax policies and regulations in Cabo Verde have un- and facilities in connection with improvements and dergone a few changes in recent years and provide gene- expansions. rous incentives for research and development in areas of science and technology. Similarly specific legislation may Touristic Utility Status generally allows for the following be considered to accelerate investment in marinas and to tax incentives and benefits: encourage yachting activity. A proposal that merits atten- Cabo Verde Yacht Tourism Study 2023 108 Annex III tion is the recommendation to grant yachts entry sans the fees associated with customs and immigration are typi- burdensome 40 percent duty. The underpinning rationa- cally handled by the ship’s captain. le is the envisaged long-term economic windfall such a measure could usher in. Current fiscal policies seem to be There seems to be insufficient exchange of information accommodating, with a 50 percent markdown on marina between the public and private sector in relation to cus- entry fees for a stipulated duration. Specific to Sal, histo- toms and immigration, as it is evident that the govern- rical data indicates that prior charges, which aggregated ment has been making efforts to streamline and impro- to €12—a combination of immigration and maritime poli- ve the various entry requirements and processes, while ce fees—have been abrogated post the COVID pandemic, the private sector laments the paucity of such efforts. leading to cost-free access. For instance, by subscribing in 2015 to the ASYCUDA Delving into the realm of taxation for yachts, there are World system Cabo Verde’s customs authority adopted specific delineated charges: the Port Usage Fee (Tarifa a fully paperless process that handles all customs pro- do uso do porto or TPM), and provisions for water and cedures and related accounting processes, greatly sim- energy. Intriguingly, the government abstains from plifying the entry processes for visiting marine traffic. levying taxes on individuals leasing yachts to others Benefits would have included reduced customs clearan- on the island. Additionally, a regulatory stipulation di- ce time, minimized the need for physical inspection, a sallows vessels from docking at the island’s ports for positive environmental impact by reducing the use of durations exceeding a single day, barring exceptional paper and enhanced the integrity of the customs de- circumstances. partment by limiting the need for face-to-face contact. However, Cabo Verde has not yet implemented this The discourse further broached the logistical dy- electronic customs process. namics between yachts and cruise ships at docking points. This segued into deliberations on security pro- This UNCTAD developed “single window” software tocols, transit solutions for passengers, and the fiscal should generate valuable data for use in economic sta- landscape governing yachts upon their entry into na- tistical analysis and planning for the state. It is built tional waters. An overarching theme is the challenge on the latest open and web-based technology, which of maintaining impeccable service standards amidst makes it possible for it to be “plugged in” to any website these multifarious considerations. that may be developed to serve the recreational boa- ting community. If a similar simplification of the im- Overall, at a national level, there exists regulation, migration procedures can be achieved and added to the environmental conditions, and policies in place for a system, the captain of a visiting yacht can complete all foundation for the yacht tourism sector. However, the procedures and make all payments without having to development of net-new policy and modifications, as visit various offices in port. Inspection by customs or are recommended in the Recommendations section, immigration may then take place at those departments’ will allow for easier entry processes and incentives for discretion. vessels to come to the islands. Marina Mindelo, for example, expressed that many Having immigration facilities in marinas, like Marina fleets that join, and organizers and participants from Mindelo, can facilitate the process for clients, elimina- the rallies and races, have consistently been dissatisfied ting the need to venture into the town. It can also aid in with inspection with customs and immigration as it is compiling accurate statistics. However, due to staffing done off-site. Automating the process, or developing an limitations, immigration officials are not always pre- online form that can be filled out prior to the port entry, sent, and foreign nationals often have to venture out to is an opportunity for increased efficiency. get their documentation stamped and processed. The Cabo Verde Yacht Tourism Study 2023 109 Annex IV Steps have also been taken to streamline the process in- research for the Sea Campus. volved in applying for a license for sport fishing in Cabo Verde. The necessary forms can be applied for and ob- On the other hand, Escola do Mar (EMar) is an edu- tained online. However, the process still seems to requi- cational institution focused on technical training and re personal contact with personnel at various depart- professional updating for workers in the field. It is a ments and turnaround time is unrealistically slow for public enterprise entity, non-profit, endowed with ad- any prospective vacationer (15 - 30 days). In addition, ministrative, financial, asset, pedagogical, technical, government involvement in infrastructure investment and scientific autonomy, with legal capacity that co- and licensing agreements with private operators, as well vers all rights and obligations necessary or convenient as a 5 percent commission on gross revenue that poses a for the pursuit of its social purpose. Headquartered in limitation on private sector investment. Mindelo with a branch in Santiago, it exercises its ac- tivity throughout the national territory through dis- Ideally, a process that would make it unnecessary to be tance learning courses. The courses offered that can in possession of a paper-based license should be pur- support the luxury yacht market are: Naval Construc- sued. The license would consist of a record in a central tion Operator (carpentry and fiberglassing), Technical database, which could be consulted at all times using English - maritime area, Technical French - maritime a smartphone or similar device. Payments made using area, Coastal and Maritime Tourism Operator, Sailor such a system go immediately to the national treasury’s (Merchant Navy), Driver (Merchant Navy), Recreatio- account, leaving a digital trail to facilitate reconcilia- nal Navigation, Maintenance and Repair of Outboard tion. Packaging these processes into the single window Motors, and Basic Safety for Fishermen. portal with customs and immigration procedures, and building the portal into websites promoting recreatio- Finally, the Higher Institute of Marine Engineering nal boating and fishing, will create a friendly yet effi- and Sciences (ISECMAR) was created by Decree-Law cient facility for use by visiting boaters. No. 40/96, dated October 21, 1996 due to the successes of the Nautical Training Center. This encouraged the Cabo Verde has established standard regulations and Government to further develop the maritime sector in laws for customs, immigration, maritime safety, and the Cabo Verdean economy with a more expansive ins- boat licensing. Improvements, like having immigration titution. The institution is headquartered in Mindelo, facilities in marinas, can enhance the yacht tourism ex- São Vicente and its mission is to “train personnel in the perience. Despite the government’s efforts to streamli- fields of marine engineering and sciences at all levels’’ ne processes, the private sector feels more can be done, and to “conduct research and experimental develop- including leveraging technologies like ASYCUDA. Such ment activities in the field of science and technology,” digital transformations, paired with better communica- but also to “offer courses in other areas,” among others. tion between sectors, can amplify Cabo Verde’s appeal Thus, ISECMAR provided Cabo Verde with a high-level as a yachting destination. training institution in the maritime sector. Annex IV: Analysis of Key Locations Documents foresee a diverse range of courses and training, namely: Maritime Education in Cabo Verde • Higher education in various branches of Marine En- O Instituto do Mar was founded in 2019 and aims to gineering and Sciences; apply research focused on the natural resources of the • Courses that qualify for the exercise of maritime sea. Their efforts are in the areas of National Technical functions of the master and marine classes, of the Authority in Oceanographic and Fisheries Research, Merchant Navy and Fisheries; specifically in the areas of Marine and Fisheries Bio- • Courses in the field of port administration and ma- logy, Aquaculture, and the Development of Fishing ritime transport; and Fish Technologies, but also as a pillar of marine • Professional courses in Radiotechnics and Electro- Cabo Verde Yacht Tourism Study 2023 110 Annex IV nics in maritime, aeronautical, and telecommunica- community development (cf. no. 1 of art. 3 of the tions fields; Statutes). • Short duration courses, creditable with appropriate certificates and diplomas; Marina Mindelo • Updating, recycling, specialization, refinement, or professional retraining courses; For Marina Mindelo, it is worth noting that the mari- • Research and experimental development works in na reaches full capacity, with all its berths occupied, the fields of science and technology; only during the months of November and December. • Other activities that prove beneficial in the context However, the volatile weather conditions have imposed of Cabo Verde’s economic development; constraints, limiting the accommodation to vessels no • Studies and provision of services, contributing to longer than 50 meters. The manager of the Mindelo Marina made some observations which are summarized as follows: Marina Mindelo Observations by CEO Objective/Focus Description The primary goal is to attract more yacht owners and visitors through effective marketing efforts to make Increasing the Number of Yachts the Marina and destination more appealing. Addressing issues like swell damage and seeking government support for building a breakwater to protect Improving Marina Conditions yachts and marina infrastructure. Expanding beyond being just a Marina by offering additional products and services such as yacht mainte - Diversifying Offerings nance, water sports equipment rentals, on-site restaurants, and entertainment. Promoting Tourist Services Marketing and promotion efforts to highlight the natural beauty of São Vicente, its beaches, bays, and the and Products potential for various water-based activities. Establishing a recreational center to attract tourists and local residents, offering sailing classes and char- Recreational Center ter services to introduce people to sailing. Encouraging national investors to participate in the development of nautical tourism to promote local National Investment engagement and share the financial burden. Ensuring sustainability as a core principle, promoting eco-friendly practices in yacht maintenance and Sustainability operations, and implementing measures to protect the marine environment. Collaborating with local authorities, tourism boards, yacht clubs, and associations to create a cohesive Collaboration strategy for attracting sailing enthusiasts. Investing in improving the overall infrastructure of the Marina, including providing necessary amenities Infrastructure and Amenities and services catering to the needs of yacht owners and tourists. Ensuring safety measures are in place and all regulations are adhered to so that yacht owners feel secure Safety and Regulations when visiting the Marina. Developing a strong marketing strategy utilizing online and offline channels, including social media, travel Marketing and Promotion websites, and partnerships with travel agencies to promote the Marina. Cabo Verde Yacht Tourism Study 2023 111 Annex IV Mindelo Cruise Terminal Project - Porto Grande volves a lost formwork system and incorporates 200 pile units. Further, the Land Bridge includes a metal The project can be categorized into three distinct com- curtain “Combiwall”, a retaining beam in reinforced ponents. concrete, and specific defenses. This segment also covers the meticulous task of seabed lowering and • Component 1: This phase involved the selection basaltic rock removal using explosives. process for both the Supervision and the Contrac- tor, and it has been successfully completed. Central to the terrestrial works is a building approxi- • Component 2: The current phase revolves around mately 900m2 in size, designated as the “Visitor Wel- the intricacies of Civil Construction and Equip- come Center”. Adjacent to this is a transportation zone ment. This component is presently in progress and spanning roughly 6,150 m2, which will offer parking encompasses the majority of the physical develop- provisions for both individual and collective passen- ment for the project. ger vehicles. Complementary infrastructures, such as a • Component 3: Running concurrently with the se- CCTV circuit, fire fighting network, and scanners, are cond component is the Cruise Destination Develop- also integrated into the design, which values security, ment Program (PDDC), which is also in the ongoing functionality, and adaptability. stage. The Terminal design facilitates the mooring of a spec- Additionally, there are two functional stages that have trum of vessels, segmented into Large (Embarcação been agreed upon with the financiers. The first is the 1), Medium (Embarcação 2), and Small (Embarcação 3) “Implementation” stage, which spans the duration of categories. Each category is distinct in terms of dimen- construction. Following this, the “Operation & Mainte- sions, tonnage, and the potential to house passengers. nance” phase will be set in motion, which is slated to ac- The marina’s capacity is so extensive that it can accom- company the first five years of the Terminal’s operation. modate approximately 90 percent of the world’s existing cruise fleet. • Jetty Construction: A new dock is being construc- ted, measuring approximately 400m x 20m in di- Porto Grande Proposed Project, Vessels mensions. • Land Bridge Development: A maritime extension termed as the “Land Bridge” covers an area of approximately 2,700m2, augmenting the marina’s space. • Dredging and Rehabilitation: Efforts are in place for the dredging of the port basin and the creation of an access channel. Additionally, there is a restoration process for the old fishing dock (dock #9), which is 240m in length, with a depth ranging from -3 to -5 meters. • Signaling and Infrastructure: The project also en- compasses maritime signaling, the establishment of a Passenger Terminal labeled as the “Welcome Center”, and the development of a dedicated trans- portation area. • Construction Specifications: The primary structure consists of reinforced concrete, which relies on me- tal tubular piles with a diameter of 1.00m. This in- Cabo Verde Yacht Tourism Study 2023 112 Annex V Annex V: Market Analysis boats between 31 and 70 meters in length. Motorboats are chartered most often (61 percent) while 22 percent of Survey Findings on Yachter Preferences charters are catamarans. Porto Grande Proposed Project, Vessels Based on the sample size, the survey findings below should be considered directional. A key observation is that the typical charter duration falls within the range of one to two weeks, reflecting a clientele consisting of working individuals seeking uni- que vacation experiences. Indeed, almost 95 percent of charters are one to two weeks in duration. This demo- graphic’s preference for shorter stays underscores the Firstly, it is evident that yacht brokers handle a substan- importance of providing diverse attractions and main- tial number of charters annually, indicating demand for taining their interest throughout their visit. It also re- yacht charter experiences. The vast majority of interna- quires ease of connectivity (land and air) to reach and tional brokers surveyed book more than 20 charters a depart from the vessel so as not to lose precious vaca- year. tion time. The Mediterranean is the most popular region for char- ters with Croatia as a close second. A number of other regions account for about three-fifths of these charters: Greek Isles, Italy, the Riviera, and the Caribbean. Ove- rall, the survey findings suggest a widespread interest in diverse charter destinations, with a shift away from the Caribbean. Cabo Verde’s potential to fill this void is underscored, especially given its status as an exotic and relatively unknown destination. It should be noted that most of the destinations listed in the survey are we- Moreover, there is a clear preference for larger vessels, ll-known and therefore most often requested. with over 50 percent of yachts chartered being motor- The significance of diverse attractions, safety, and secu- Cabo Verde Yacht Tourism Study 2023 113 Annex V rity, and infrastructure as primary concerns to visitors Over 94 percent of brokers surveyed said they have never reinforces the need for Cabo Verde to emphasize these marketed Cabo Verde. When asked why not, most said aspects in its marketing efforts. While market demand they do not know about the market and that there is a is viewed as a critical factor, the absence of existing de- lack of availability of charter boats. Although the aware- mand does not necessarily reflect a lack of interest but ness of Cabo Verde among brokers remains limited, there rather a lack of awareness, highlighting the need for is recognition that the destination’s proximity to Europe effective promotional campaigns. sets it apart as an exotic, accessible, and secret gem. These qualities can be leveraged to attract a European clientele. Brokers’ concerns about logistics, regulations, customs costs, and other challenges echo the importance of mar- keting materials that address these issues. The empha- sis on maintenance, services, and land-based amenities underscores the significance of providing a holistic ex- perience for charter clients. Client preferences ranks highest in order of importance followed by logistical concerns and seasonal considera- tions. Moreover, the trade-off between catering to pri- vate yacht owners’ exclusivity preferences and establi- When asked to rate the obstacles that make Cabo Verde shing a thriving charter industry should be considered more difficult to sell, lack of knowledge about the destina- in Cabo Verde’s development plans. A balance between tion was by far the largest response. these elements may be sought, with segregation options for ultra-wealthy yacht owners. In terms of destinations these brokers believe are exce- lling in the yachting industry, the Greek Isles and Croa- tia top the list. The Caribbean has been declining over the past few years, just over 55 percent of these brokers believe it is excelling as a destination. It is important to note that the reason most of the brokers provided those destinations is that they are reliable and known, have marketed themselves well and are most in demand by clients. Proximity of islands to one another is also men- tioned as is the variety of types and sizes of vessels in these destinations. To compete effectively, Cabo Ver- de should focus on ensuring brokers are well-informed about the destination. Over 66 percent of respondents answered “not sure/do not know” when asked for their thoughts on Cabo Verde’s infrastructure for the yacht industry and the amenities available. A majority of these brokers believe that the stunning sce- nery, the opportunity to benefit the local community, and the fact that Cabo Verde is a well-kept secret are advanta- Cabo Verde Yacht Tourism Study 2023 114 Annex V ges to chartering a yacht in Cabo Verde. de. They emphasized that Cabo Verde is an exotic and secret destination, conveniently situated on the In terms of the extent of the disadvantages of chartering doorstep of Europe. This shift in perception is consi- a yacht in Cabo Verde, among those who did not answer dered vital to pique the interest of yacht owners and “do not know/not sure,” limited yacht services and limited charter clients. charter fleet top the list. Focus Areas for Development The brokers collectively stressed the importance of rai- sing awareness about Cabo Verde’s potential as a yacht charter destination, given its relatively low profile. They recommended conducting familiarization (FAM) tours with brokers and managers to showcase what Cabo Verde has to offer and sell the idea to potential clients. Additio- nally, based on their combined experiences, they estima- ted that it takes 10-15 years to develop a thriving yachting Over 72 percent of these brokers do not promote connec- industry from scratch. tions between Cabo Verde and the Canary islands as Cabo Verde is not in their field of view when it comes to a desti- • The brokers delved into key focus areas essential for nation. When asked to provide suggestions for improving the growth of the yachting industry in Cabo Verde. Cabo Verde as a charter destination, nearly all said marke- These encompass the development of local skills, pro- ting and promotion. Suggestions included bringing com- visioning, cost considerations, and enhancing inter- panies like theirs onboard, involving the local community national air connectivity to facilitate smoother yacht in decision making and promotion, and FAM trips. Many travel. also said infrastructure (both hard and soft) and increa- • Building relationships and fostering interactions with sing the number and type of available vessels was needed locals are also considered crucial for attracting weal- to improve Cabo Verde as a charter destination. These are thy clients, with Indonesia’s success serving as ins- key insights for the recommendations. piration. Personalized trips and tailored experiences were highlighted as pivotal factors for success in the In addition to the survey, a number of interviews were yacht charter market. conducted with international luxury yacht brokers. A • The brokers collectively recommended attending boat number of key themes emerged regarding the feasibility shows, emphasizing that these events can help gauge of developing Cabo Verde as a prominent yacht charter the market and understand the competition. destination. • They also emphasize the significance of providing a positive end-to-end experience for yacht charter Observations clients. From infrastructure to services, ensuring a seamless and enjoyable journey is considered para- • Cabo Verde’s relative obscurity in the yachting world mount. emerged as a point of interest. The brokers see unta- pped opportunities in offering a unique and less-ex- Preferences for Yacht Travelers plored destination, drawing parallels with Costa Rica and the appeal of secrecy. Additionally, the Charter Broker Marketing Intelligence • An essential aspect underscored by the brokers was research68, conducted in February 2023 by the Dutch ya- the need to alter perceptions surrounding Cabo Ver- Cabo Verde Yacht Tourism Study 2023 115 Annex V cht consultancy ACrew, presents the latest trends in the tinations, including Cabo Verde, were mentioned. yacht rental and sales market. The majority of respon- dents have more than 10 years of experience in the market The charters cover various regions, with the Mediterra- (69 percent). nean and the Caribbean being the most frequented. Pri- vate luxury charters dominate the market, accounting for The yacht charter market, after a brief interruption due 60 percent of business, and all brokers are involved in this to Covid-19, resumed growth in 2021-2022, with a posi- sector. Word of mouth and digital marketing are key in at- tive outlook for 2023 as 69 percent of surveyed brokers tracting clients, emphasizing the potential for promoting expect an increase. This optimism is attributed to factors Cabo Verde in this market. like rising demand, increasing individual wealth, lifted Covid-19 restrictions, new yachts entering the market, at- Brokers focus on customer experience, considering factors tractive offers, and growing awareness of yacht charters. like itinerary, team information, location infrastructure, weather, menus, additional fees, and visa requirements. Popular destinations among yacht charter clients include Training for service teams is crucial, and crew longevity the British Virgin Islands, Saint Maarten, Bahamas, Saint is seen as impacting guest experience. This highlights the Barthélemy in the Caribbean, and Mediterranean loca- need for adequate manpower in host countries for yachts. tions like Amalfi, Sardinia, Corsica, and Greece. Croatia and French Polynesia are also favored, but no African des- Skills required for a Yacht Destination According to Brokers Service Category Description Yacht Maintenance Routine maintenance, including engine servicing, hull inspections, and system checks. Mechanical Services Technicians for engine repairs, generator maintenance, and other mechanical systems. Electrical Services Electricians for electrical system maintenance and repairs. Navigation Equipment Maintenance Checks and calibration of navigation systems like GPS, radar, and autopilot. Safety Equipment Inspection Ensuring proper functioning of safety equipment like life rafts and fire suppression systems. Hull Cleaning and Painting Cleaning, maintenance, and periodic repainting of the yacht's hull. Interior Refurbishment Carpentry and interior design services for refurbishing or upgrading interior spaces. HVAC Maintenance Maintenance of heating, ventilation, and air conditioning systems. Plumbing Services Addressing freshwater and wastewater systems, toilets, and showers. Propeller and Shaft Maintenance Inspection and maintenance of propellers and shafts for propulsion efficiency. Welding and Fabrication Repairs and custom modifications to the yacht's structure and components. Hydraulic System Maintenance Maintenance and repair of hydraulic components for yachts with hydraulic systems. Marine Electronics Services Repair and installation of marine communication and entertainment systems. Tender and Water Toy Maintenance Maintenance to ensure the safety and operation of tenders and water toys. Rigging Services Maintenance and inspection of masts, sails, and rigging hardware for sailing yachts. Cabo Verde Yacht Tourism Study 2023 116 Annex V Service Category Description Waste Management Services Proper disposal of waste and wastewater to comply with environmental regulations. Fuel and Oil Services Ensuring the availability of fuel and oil for continuous yacht operation. Underwater Inspection and Repairs Inspections and repairs on the yacht's underwater components by divers or technicians. Environmental Compliance Experts in environmental regulations and sustainability practices. Weather Routing and Forecasting Services to optimize routes and avoid adverse weather conditions. IT and Communication Services Maintenance of onboard internet and communication systems. Provisioning Services Ensuring the availability of provisions and supplies for charters. Security Services Security personnel for guest and crew safety, especially in regions with security concerns. Port Agency Services Local port agents assist with clearance procedures, customs, immigration, and logistics at ports. Waste Disposal Services Arrangements for proper waste disposal and recycling to maintain environmental responsibility. Medical Services Access to medical personnel and facilities for emergencies. Insurance Services Insurance coverage to protect against unforeseen events and liabilities.National-Level Environmental Impact Assessments Assessments to minimize the yacht's impact on local ecosystems in ecologically sensitive areas. Vessel Documentation Services Handling documentation, permits, and certifications required for yacht operation and compliance. Source: Trove Broker Survey The Ocean Race Another race that has incorporated Cabo Verde as a sto- global races. This collaboration was unveiled in New York pover in 2022 is The Ocean Race69. During their stay in on a Monday afternoon by Cabo Verde’s Prime Minister, Cabo Verde, the Ocean Race engaged in its renowned Ulisses Correia e Silva. He was actively involved in the re- Ocean Week, emphasizing local and global sustainability cent Ocean Race Summit, presenting a proposal on Ocean challenges. The Ocean Race Organization lauded the sto- Rights to the UN’s General Assembly. For sailors in The pover’s success, noting the over 70,000 visitors to Ocean Ocean Race, the Cabo Verde islands have always served as Live Park and more than 2,200 school children attending a strategic point, forcing them to choose between naviga- in-person educational sessions. ting close to the islands or steering clear to bypass poten- tial windless zones. Cabo Verde and The Ocean Race have entered into a Me- morandum of Understanding (MOU)70. This agreement However, despite these achievements, Cabo Verde still has might lead to the island chain hosting both stopovers and considerable ground to cover in terms of providing ade- subsequent sessions of The Ocean Race Summits, collabo- quate infrastructure, provisions, and utilities for the par- rating with the global sailing event. The MOU suggests a ticipants of these races. Qualitative interviews conducted return of The Ocean Race Summits—a gathering of figu- for this study with eight participants and organizers from res from government, industry, NGOs, and the scientific both events revealed concerns regarding inadequate in- realm—to Cabo Verde, as well as the racing fleet in future frastructure, lack of onshore amenities, and a perceived Cabo Verde Yacht Tourism Study 2023 117 Annex V lack of government attention to these events. We will del- ve deeper into these issues in the ensuing sections. Research with the rally participants and organizers We interviewed organizers and attendees of rallies and races limited to ARC+ and The Ocean Race. The research obtained the contribution of 8 correspondents from the sector of organization and participation in these nautical races. Based on the sample size, the findings below should be considered directional. The majority stayed for 3 days and did not prolong their time in the country. The majority of people who responded to the survey are from the team that organizes the Ocean Race. Most of them are very satisfied with the natural envi- ronment of Cabo Verde and satisfied with Benefits for the local community. The majority of them (87.5 percent) visited Cabo Verde during the race. The majority of people who visited Cabo Verde rate their stay in the country a 4 and also believe that Cabo Verde can become a destination for yacht tourism. Cabo Verde Yacht Tourism Study 2023 118 Annex V There is recognition that expanding this type of bu- siness in Cabo Verde is essential, especially with the increasing number of boats being built. However, they explain that there are some infrastructure develop- ments that need to be addressed. One such development is the marina facility in Min- delo. So all of the races have to anchor there, instead of having other exploring options. The current marina Moreover, all of them would recommend Cabo Verde facilities meet basic requirements, but there is concern as a yacht destination for fellow sailors, yacht owners about potential exposure to northwest conditions, es- and tourists. pecially when the marina is at full capacity. There were instances in the past where swells made conditions un- All of the interviewed rally participants and organizers comfortable or even dangerous. The business was cited find Cabo Verde compelling due to its natural allure as a good marina, but there’s room for expansion. In and possibly longer summer season owing to its sou- fact, 62,5 percent of respondents claim that investing thern location. 62,5 percent said that they had a great in marinas and suitable anchorages and dockage facili- stopover on the islands. ties is deemed a promising endeavor. The anchorage in Cabo Verde is sizable but somewhat exposed. There were past concerns about control over The majority of them are neutral regarding the infras- fishing or end-of-life boats that could sink and pose tructure, yacht on-shore services and anchorages or navigational hazards. Proper marking and communi- docking facilities. cation about potential obstacles, like dredging areas, are essential for safe navigation, especially at night. Most of them believe that lack of anchorages and diffi- Even so, the majority of Ocean Race participants say culty with provisioning could be alleviated with priva- that the swells, tide and winds did not influence their te financing. experience. The qualities attracting the ocean race might also appeal to super yacht owners. This group values en- vironmental sustainability and marine rights, making Cabo Verde an enticing destination if facilities meet specific standards. Also, the Ocean Race serves as a marketing tool, creating awareness and interest in the destination. This appeal extends beyond the wealthy owners to the crew and captains, who often have a say in choosing stopovers. Cabo Verde Yacht Tourism Study 2023 119 Annex V time. The data presented below was refined from over 18k entries. Each entry is defined as an arrival or de- parture from a port or marina. We chose to look at vessels with a length of between 10 and 100 meters in order to segregate yachting from cruise ships as well as eliminating the majority of locally owned recreatio- nal vessels. We also removed same day departure and return so as not to skew the data with day trips in this Most respondents gave the marina facilities in Cabo analysis. We chose to compare Cabo Verde with two Verde a rating of 2 (37,5 percent). destinations as discussed in the methodology section. We chose these because both have made policy chan- The survey respondents, despite understanding the ges and investment in yacht related infrastructure in limitations of Cabo Verde’s marina infrastructure, recent years. recognize that the people working in this industry in Aside from policy and investment incentives, length Cabo Verde, even with limited resources, do their ut- of vessel is a determinant in CAGR. This is due to the most to deliver and provide the best possible service, fact that larger vessels are increasingly in demand, and rating 4 stars (75 percent). vessels overall are getting longer. We believe with pro- per infrastructure in place and strong promotion, the length of vessels arriving in Cabo Verde will increase. Today in Cabo Verde overall vessel length, including both motor and sailing, remained fairly constant in a range between 15 and 21 meters. Costa Rica’s vessel length had more variation, between 22 and 41 meters, declining during the ten year period. This could be at- tributable to the increased number of vessels coming to Costa Rica due to policy shifts and incentives for both private owners and charters. The vessel length in the Seychelles is between 22 and 35 meters, which was highest in 2015 when the number of vessels arriving was quite small. With the increase in arriving vessels to the Seychelles, the average length went down. Understanding future demand for yachting in Cabo Verde without further policy or investment Based on data provided from Marine Traffic, we analyzed the last ten years of sail and motor yacht arrivals to Cabo Verde, Costa Rica, and Seychelles. We have chosen “number of vessels” as the metric to es- Comparisons in Vessel Length timate demand because in yachting, it is a clear and legitimate quantification of growth in the market over Cabo Verde’s proximity to the European yacht market Cabo Verde Yacht Tourism Study 2023 120 Annex VI is demonstrated by the country of origin of arriving vessels. This suggests that promotion of Cabo Verde as a yacht destination for Europe should be emphasized. Clearly, the data shows that France and the UK are more aware of Cabo Verde as a destination. The UK numbers may also reflect the number of vessels participating in the ARC+. The rally organizers and a majority of par- ticipants are UK based. In Costa Rica, the U.S. serves as the top market. In the Seychelles, the majority of boats come from South Africa or the Middle East. Ove- rall, Cabo Verde is falling behind year-on-year when it comes to motor vessels by an amount of about 20 to Comparisons in Vessel Length 25 percent the number of vessels arriving, compared to Costa Rica and the Seychelles. However, for motor vessels, Cabo Verde has fared at 20 to 30 percent of the vessel arrivals compared to Costa Rica and Seychelles. Motor Vessel Insights Annex VI: Potential Impact of Recommendations In an analysis of the yacht industry’s economic impact within established markets, calculations for total re- venues and construction costs were conducted. These estimations are founded on conservative assessments aligned with best practices observed in globally esta- While the data provided above includes both sail and blished yacht markets. For the purpose of this study, motor boats, Cabo Verde has a far higher number of sail it is postulated that the industry would comprise 250 boats compared with Costa Rica and Seychelles until charters, each valued at $75,000, for a duration of two 2023 when the three destinations are actually close in weeks per season and accommodating 12 passengers. number of this type of vessel. Additionally, each island is projected to host a marina with 100 slips, achieving full occupancy for 120 days. The accommodation sector anticipates an average three-night stay at hotels for marina guests, priced at Cabo Verde Yacht Tourism Study 2023 121 Annex VI $100 per night, with71 an estimated average meal cost government of Cabo Verde per marina. Except for of $30 for these guests. scenario one, since there are no vessels that fit this particular billing in this scenario. The cost analysis includes: • Half-Day Trip Charter Operations (excluding VAT): Utilizing 40 percent of total arrivals to Cabo • Scenario 1: The expansion of an additional 100 Verde in 2022, assuming 30 percent engage in slips at a cost of $10 million, infrastructure expen- charter activities, and multiplying by the number ses of $4.5 million, a visitor center at $1.5 million, of marinas, with an estimated cost of $120 USD per and other expenses, inclusive of those outlined in person. This calculation excludes VAT, provisio- recommendations, totaling $6 million. The aggre- ning, hotel expenses, meals, shopping, etc. gate cost is estimated between $22 to $25 million. • Marina Fees (excluding VAT): Computed by mul- • Scenario 2: The development of two marinas, tiplying the rate per foot by the number of vesse- each at a cost of $10 to $12 million, infrastructure ls, their length in feet, the number of operational expenses of $7.5 million, and other assorted costs, days, and the number of marinas. including those mentioned in recommendations, • Provisioning and Food Expenses: Determined totaling $5 million. The overall expenditure is pro- by multiplying the number of guests by the num- jected between $35 to $40 million. ber of days and per hour spent. • Scenario 3: The construction of three marinas, • Fuel Costs (including tax): Calculated by multi- each with an estimated cost of $10 to $12 million, plying the number of gallons by the number of ves- infrastructure costs amounting to $10 million, and sels, operational days, and cost per gallon. additional expenses, as specified in recommenda- • Yacht Maintenance and Repairs: Estimated by tions, at $7 million. The cumulative cost is forecas- multiplying the size of the vessel by the number ted to be between $55 to $60 million. of vessels, with the costs based on a third of the 10 percent average annual cost for vessel repair and Revenue generation in all scenarios is considered from maintenance. multiple sources: Other revenue streams include shopping, recreation, • Hotel Revenue: This study offers a detailed analy- tours, and excursions (excluding VAT), calculated by sis of the allocation capacity of three distinct ma- multiplying the number of guests by the number of rinas. Each marina possesses a maximum opera- days and hours spent. The Total Revenue per scenario tional capacity of 120 days per year, amounting to is the summation of all the aforementioned compo- a total of 360 days annually. However, in scenario nents. one, this number increases to 450 days due to the smaller shelter capacities of the vessels targeted in this scenario. Correspondingly, room rates are set at $100 per night in a three-star hotel for each marina. • Restaurant Revenue: Derived from an average of three meals per day, costing $30 USD per meal for 20 individuals per total slip rental in each marina. • Boat Fees and Levies (4 percent): Based on an average charter cost of $75,000, with an estimation of 250 charters, deducting a 4 percent levy for the Cabo Verde Yacht Tourism Study 2023 122 Annex Notes 56. (2016). The true power of the superyacht industry. faolex/results/details/en/c/LEX-FAOC194885/ RoamingExpert. https://www.facebook.com/roamin- gexpertyachts/photos/pb.1740606899558022.-22075- 64. (2023). Law n. 24/X/2023 - Aprova o Código Maríti- 20000.1499710267./1740611662890879/?type=3&paip- mo de Cabo Verde (CMCV). Boletim Oficial, I Série, Su- v=0&eav=AfapoQwoN5AW7-yYupI73wnWSmGfeu8Dp pplement, No. 50. https://www.fao.org/faolex/results/ Upl517N2UK7WuQRHLluqlXSLPRnu4zXxF4&_rdr details/en/c/LEX-FAOC216754/ 57. Johnson, T. (2023). Superyachts and Private Travel: 65 Autoridade para a imigração (2023). Cabo Verde Go- Discover the Latest Trends. International Banker. ht- vernment. https://aai.gov.Cabo Verde/ tps://internationalbanker.com/life-arts-travel/super- yachts-and-private-travel-discover-the-latest-trends/ 66. (2023). Sistema Aduaneiro. Camara de Comercio, Industria e Turismo de Portugal Cabo Verde https:// 58. (2023). Survey report, Research on Charter Broker www.portugalcaboverde.com/item1_lang_1_id_chan- Market Intelligence. Acrew. https://acrew.com/ nel_26_ wp-content/uploads/2023/03/Charter-Broker-Mar- id_page_65.html Ket-intelligence-research-report-2023.pdf 59. (2022). Governo apresenta Plano Estratégico de 67. (2023). Despacho de Mercadoria. Ministério das Desenvolvimento Sustentável (PEDS) 2022-2026. Mi- Finanças e do Fomento Empresarial. https://www.mf. nistério das Finanças e do Fomento Empresarial, Cabo gov.Cabo Verde/web/dnre/direca-geral-das-alfandegas Verde. https://www.mf.gov.cv/web/mf/-/governo-apre- senta-plano-estrat%C3%A9gico-do-desenvolvimen- 68. (2023). Survey report, Research on Charter Broker to-sustent%C3%A1vel-peds-2022-2026 Market Intelligence. Acrew. https://acrew.com/ wp-content/uploads/2023/03/Charter-Broker-Mar- 60. (2022). Plano Estratégico do Desenvolvimen- Ket-intelligence-research-report-2023.pdf to Sustentável. Economia. Governo de Cabo Ver- de. https://peds.gov.cv/caboverde4dev/wp-content/ 69. (2023). The Ocean Race Route. The Ocean Race. ht- uploads/2023/04/Pilar_Economia.pdf tps://www.theoceanrace.com/en/route 61. Cruz, I. & Gomes, D. (2023) Estudo Sobre a Revisão 70. (2023). The Ocean Race and Cabo Verde will team e Benchmark da Legislação Aplicável ao Turismo Náu- up to protect and restore ocean health. The Ocean tico em Cabo Verde. World Bank. https://documents1. Race. https://www.theoceanrace.com/en/news/14638_ worldbank.org/curated/en/099543008162332217/pdf/ The-Ocean-Race-and-Cabo-Verde-will-team-up-to- IDU03d1488660a43a04feb087f2019ec884edea5.pdf protect-and-restore-ocean-health 62. (2023). Decreto-lei no 2/2023: Procede à primeira 71. Binder, R. (2023).Calculation for the creation of new alteração do Decreto-lei n.o 37/2015, de 29 de julho, que yacht infrastructure in Cape Verde [Excel Spreadsheet]. estabelece o regime das atividades de recreio e turismo náutico e da sua exploração económica. Boletim Ofi- cial, I Série, No. 4, https://drive.google.com/file/d/1r- lNYtwlp-elGI1Dbfzq9fecEpI8123lF/view?usp=sharing 63. (2010). Decreto-Legislativo n. 14/2010 - Aprova do Código Marítimo de Cabo Verde. Boletim Oficial, I Sé- rie, No. 44, 15 November 2010. https://www.fao.org/ Cabo Verde Yacht Tourism Study 2023 123