Cape Verde Tourism Prices Rise 3.5% as Sao Vicente Surges
Tourism costs in Cape Verde continue to climb, with prices for services rising by 3.5% year-on-year during the second quarter of 2026, according to the latest data from the National Statistics Institute (INE).
While prices are still trending upward, the Tourism Price Index (IPT) indicates a significant cooling compared to the start of the year. The 3.5% growth represents a deceleration of 3.8 percentage points from the previous quarter, suggesting that the rapid pace of inflation in the sector may be stabilizing.
Regional Breakthrough: São Vicente Leads Price Hikes
The INE reported that every island in the archipelago saw a rise in accommodation and catering costs. However, the impact was felt most acutely on the island of São Vicente, where prices surged by 10.3%. Other notable increases were recorded in Santo Antão (6.7%), Sal (5.4%), and Santiago (3.4%), while Boa Vista saw a more modest rise of 1.6%.
Beyond lodging and dining, travelers are also paying more for transportation. Car rental rates jumped 6.4% year-on-year. Conversely, costs for entertainment and cultural services remained flat, providing a rare reprieve for tourists’ wallets.
Hotels and Guesthouses See Across-the-Board Increases
Within the accommodation sector, no category was spared. Guesthouses (pousadas) saw the most significant price hikes, followed by residential inns and traditional hotels. On a quarterly basis, overall tourism prices ticked up by 0.6%, a reversal from the 0.7% decrease seen in the first quarter of the year.
A Vital Economic Driver
These price fluctuations are closely watched by economists, as tourism is the backbone of the Cape Verdean economy. The sector accounts for approximately 25% of the nation’s Gross Domestic Product (GDP). The archipelago continues to grow in popularity as a global destination, coming off a milestone year in 2025 when it hosted a record-breaking 1.25 million guests.
The IPT serves as a critical economic barometer, measuring the price evolution of goods and services that represent the typical spending patterns of visitors to the islands.
Image: Pexels – damien Saillet
