Examining investment policies and procedures for promoting diversification in the tourism industry

Abstract

This study examines policy options to promote the diversification of the tourism sector in Cabo Verde and increase its resilience in the post-pandemic context. We conducted qualitative research on Sal Island, engaging with stakeholders from the government, the tourism industry, and local communities. Our findings shed light on various initiatives, such as improvements in basic education, digitalization, and the diversification of tourism products. However, we also uncovered significant challenges related to connectivity (both within and between islands, as well as international), infrastructures, socioeconomic inclusion, the development of specialized human capital, and community engagement. Based on our findings, we describe several policy options. These policies include undertaking strategic investments in infrastructure, creating fiscal space for development initiatives, expanding the range of tourism experiences, enhancing human capital through education and training in tourism-related services, promoting the formalization of small businesses, and encouraging responsible tourism practices through Corporate Social Responsibility certification schemes. This work provides valuable insights that can support the development of sustainable and inclusive tourism policies in Cabo Verde.