Growth In Cabo Verde Tourism Drives Regional Aviation Investment

12 November 2024, Cabo Verde: The rapid growth of Cabo Verde’s tourist economy will hit a ceiling without a modernised airline service to meet domestic and visitor demand, according to regional start-up airline TransVerde Airlines.

Tourism is booming in the 10-island archipelagic state of West Africa with tourist arrivals reaching around 1 million in 2023, surpassing the highest recorded figure by 23% recorded in 2019.[i]  Cabo Verde’s tourism rebounded strongly from the pandemic, with growth rates of 7% in 2021 and 17.4% in 2022. An increasingly popular tourist destination, tourism demand is expected to continue to grow. 

TransVerde Airlines, a low-cost, digitally enabled airline start-up designed for robust growth, is currently exploring a $15 million investment to revolutionise air travel across the islands of Cabo Verde and extend its services to neighbouring West African countries. With a strong, internationally experienced management team, the airline is poised to fill a critical gap in the region's transportation network.

In July 2024, Cabo Verde's passenger traffic was 265,667, which was a 15.5% increase on July 2023. International traffic increased 17.5%, while domestic traffic increased 9.3%[ii]. 

Born to Cabo Verdean parents, TransVerde Airlines Founder & President, Rui Lima, says: “The passenger demand for Cabo Verde is a given. But growth is happening quickly and the islands need to be ready for change. Overtourism in other parts of the world is driving holidaymakers to new destinations, to discover the unknown, to find hidden gems and new experiences. Cabo Verde has a unique cultural heritage, serene beaches and climate which are very attractive. 

“But we need to respond quickly – firstly, we need better transport infrastructure to get local people and employees around the islands to ensure a smooth transition of produce and workforce. The demand from travellers for local, community-sourced produce is high. There is no point in growing local food on one island if we cannot move it in good time to another – that will hamper the local economy and not allow our own resources to be utilised. 

“We also need to get tourists moving around the islands. At the moment, the big operators send them in, they stay on one island and do not explore or fairly share their holiday spend. It’s not their fault, we don’t make it easy for them. But there is so much opportunity which we need to harness to better manage and distribute tourism’s value to the benefit of all local communities.”

According to aviation analytics provider OAG, the planned scheduled airline capacity to Cabo Verde this winter versus the last winter period, shows inbound markets are growing, specifically from France and Sweden as well as new entries Austria and the Czech Republic.

Vishal Narayanaswamy, Co-Founder & board member, TransVerde Airlines, says: “Our initial goal is to bridge the islands of Santiago, Sal, and São Vicente before expanding to include all of Cabo Verde and other West African countries. TransVerde Airlines has been founded by seasoned specialists in business management and aviation – our team is made up of experts in aviation finance, operations, commercial and marketing. The future of our customer success will be built on this experience and augmented through our use of technology to meet customer demand.”

TransVerde Airlines aims to offer both passenger and cargo transport services, initially focusing on inter-island connectivity within Cabo Verde. In July 2024, Cabo Verde's cargo traffic was up 37.6%.

Raul Zapico, Project Director, TransVerde Airlines, says: “We’re in the process of securing our Air Operator Certificate (AOC) and excited to make the next step in connecting Cabo Verdeans with each other, seamlessly. With advise and support from Brookfield Aviation Finance, our next move is to secure funding to progress our inter-island travel strategy. With our fleet of three leased ATR-42/72 aircraft in the initial phase, we’re ready to take to the skies.” 

TransVerde Airlines is seeking $15 million through a combination of equity and debt financing. The funds will be allocated to key areas critical for the airline's launch and subsequent growth phases. 

For more information on TransVerde Airlines, visit: www.flytva.com