Local Sourcing in the Cabo Verde Tourism Food Supply Chain : Opportunities and Challenges
The objective of this research report is to assess the market potential for local sourcing in the Cabo Verde tourism food supply chain, with a particular emphasis on traditional sectors such as agriculture and fisheries. As tourism continues to exp...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/734391578411374889/Local-Sourcing-in-the-Cabo-Verde-Tourism-Food-Supply-Chain-Opportunities-and-Challenges http://hdl.handle.net/10986/33183 |
| Summary: | The objective of this research report is
to assess the market potential for local sourcing in the
Cabo Verde tourism food supply chain, with a particular
emphasis on traditional sectors such as agriculture and
fisheries. As tourism continues to expand rapidly in Cabo
Verde, the sector creates a growing market potential for
locally sourced produce. The number of inbound tourists in
the country has steadily increased from 428,000 in 2011 to
710,000 in 2018 - a 7,5 percent CAGR in the period - causing
with it a rise in the direct economic contribution of travel
& tourism activities to GDP, now estimated at near 20
percent. The islands of Sal and Boa Vista dominate the
market, attracting together 76,4 percent of all arrivals,
who visit overwhelmingly under the all-inclusive resort
segment. In addition, higher average lengths of stay in
these two islands imply that they account for proportionally
more room nights (89,9 percent of the total bed nights) than
the rest of the country. The level of linkages between the
primary sector and tourism has long been a debated topic,
particularly the untapped potential of additional positive
spillovers and impact on poverty reduction. A World Bank
study commissioned in 2013 estimated that more than 80
percent of food and beverage products consumed by
all-inclusive resorts were imported. While these resorts
have been decisive in pushing infrastructure development and
promoting job creation, the level of linkages with local
businesses is seen as being below potential. The study found
that the low level of local food sourcing stemmed from a
range of challenges related to sanitary and quantity
standards, volumes, reliability of supply, and connectivity.
Since then, very little research has sought to quantify the
market potential in supplying tourism or assessing which
products could be prioritized at local production level, on
comparative and competitive advantages vis-à-vis imports.
The methodology for this research comprised a quantitative
and qualitative survey with a representative sample of large
hotels in Sal and Boa Vista, in addition to in-depth
follow-up interviews and desk review of pertinent data. The
type of commercially sensitive information required from the
surveyed participants severely undermined participation,
despite guarantees of confidentiality. A substantial effort
was invested in following-up, and the team was able to
gather consumption data covering a small representative
sample of large hotels, as well as relevant information on
market characteristics and trends from the leading hotel
supplier wholesalers. |
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