Cape Verde Air Links

Air links secure island's future as pan-continental travel hub - Airport operator ASA will see passenger numbers soar when Delta begins international operations this year.

With tourism and property development undoubtedly the most important sources of income for Cape Verde, a 4,000 sq km island country off the west coast of Africa, the government's decision to greenlight development of its infrastructure and leisure facilities has been broadly welcomed.

As Minister of Infrastructure, Transport and Telecommunications, Manuel Inocncio Sousa is playing a key role in the transformation of Cape Verde into a leading business destination for foreign investors. His department controls two of the country's largest state-owned businesses - the airports operator, Aeroportos e Segurana Area (ASA), and the ports and shipping operator, Enapor.

Outlining his plans for the businesses, Sousa said: "We have a clearly defined strategy to modernize our ports and airports. The main focus of our infrastructure development to date has been our transport hubs, with a number of new international airports now in operation.

"Our goal for the long-term economic transformation of the country is focused on our 'locational' advantage. We believe that by exploiting the benefits of our sea and air routes we can become a trans-shipment port for the whole region and beyond.

"Developing economic relations with China is one of our priorities. Strong links with Cape Verde would give China ease of maritime access to West Africa, the Americas, and Europe. It is a win-win relationship in many senses."

Air links secure island's future as pan-continental travel hubWhilst cruise liners bring many tourists to Cape Verde every month, the number of visitors arriving by plane is far higher and has seen the islands become a popular holiday destination for tourists from Europe, North America, and Asia.

As one of the keys to the country's future prosperity, ASA is responsible for all airport, flight, traffic control, runway and apron ground operations and facilities, including the Amlcar Cabral International Airport on the main island of Sal.

A state-of-the-art control center, financed by the European Investment Bank, allows ASA to handle more than 42,000 flights a year, an average of 116 a day. That number will increase dramatically later this year when the leading US carrier, Delta Airlines, begins direct flights from Atlanta, Georgia, a key transit hub that will allow passengers to connect to a further 300 destinations around the world.

ASA chairman, Mrio Paixo Lopes, is understandably optimistic about the country's future prospects: "Cape Verde is benefiting from the partnership deal that we recently signed with China. China is investing a lot in Cape Verde and is helping to modernize many of our institutions, as well as improving our economic performance.

"Cape Verde has always had an important role to play amid the continents that surround it. Now we want our airports - vital links for these continents - to generate more revenue and become self-supporting.

"At the moment, the airports are not profitable but they contribute to the wealth of other sectors, including construction, fisheries and tourism. The driving force behind our economy is tourism and this affects a number of related markets, especially car hire companies, restaurants, and hotels. All these markets affect the commercial and industrial sectors that, ultimately, have an impact on ASA as well."

The new airport in Praia opened in 2005 and gave the city a huge economic boost thanks to direct flight connections with major cities in Europe, such as Lisbon, Amsterdam, and Paris, as well as Fortaleza in Brazil and Boston in the US. The airport in Boa Vista, Cape Verde's easternmost island, is another good example of how an airport can bring immense benefits to the economy. The number of passengers using the airport has now tripled to 150,000 - a huge boost to the hotel and hospitality sectors.

Outlining the benefits the new air terminals will bring to the islands, Paixo said: "We are working on a tourism package that combines a cruise journey with a flight. Customers will arrive from the US on a cruise boat and then depart from here on a plane, or vice-versa.

"It is fantastic that Delta has chosen to develop links with us. People from Africa will now be connected to the world via Cape Verde. We are a country with high standards of civil aviation and excellent security protocols. We have the latest technology and are very advanced in terms of infrastructure and logistics.

"China is a world power and has chosen to invest a lot in the region. China has helped Cape Verde enormously in the development of its infrastructure, particularly with regards to agriculture and port facilities. We are very proud of what China has done for us and I think we, in turn, can help China develop its interests in Africa and Latin America due to our proximity and our familiarity with these cultures.

"ASA has grown with Cape Verde and has also helped Cape Verde to grow. It is a modern government company in a vital sector of the country's economy."

Paixo believes Cape Verde offers huge potential for international companies and that its investment in new technology is playing an important part in giving the country a key competitive advantage over its regional rivals, notably Senegal and the Canary Islands.

He explained: "As we are a small country with limited natural resources and a small domestic market, we have to take advantage of the potential of the other services we can provide. This includes helping promote integration between North America, Europe, and Africa. This cannot be achieved overnight, but I believe we are on the right track and that the strategy of the government is a valid one."

Real estate is second only to tourism in its importance to Cape Verde's economy. The sector currently generates around a quarter of Cape Verde's GDP. In a bid to develop this sector still further, in late 2008 a group of real estate companies founded the trade body Promitur as a forum for discussing relevant issues with the government, including taxation, services, infrastructure, and investment in the real estate and tourism sector.

Promitur director, Olavo Correia, said: "Cape Verde is a vibrant conduit for tourists from all around the world. It is set to provide vital links between China, Africa, Europe, and the Americas. Our focus now is to ensure that, when the global economic crisis is over, we are in a strong position to continue the country's development and to nurture the growth of its real estate sector."

(China Daily 07/27/2009 page7)