Project Promoter: APCI, Government of São Tomé and Príncipe
Sector: Tourism  Subsector: Eco-Tourism & Hospitality
Location: São Tomé Island, Gulf of Guinea
Country of Deal: São Tomé and Príncipe

Project Description

São Tomé and Príncipe’s tourism sector has become an increasingly important contributor to the nation’s economy, serving as a vital source of foreign exchange and employment. In 2022, the travel and tourism sector contributed 12% (US$ 67 million) to São Tomé and Príncipe’s GDP and provided employment to 13% of the country’s workforce. This highlights the growing importance of the industry as a major economic driver and a significant source of livelihoods for many citizens.

São Tomé is recognized as one of the safest tourist destinations in the world, with the lowest crime rate in Africa. The country holds a low travel security risk rating from International SOS, placing it on par with major tourist destinations like France, Spain, and the United States. This reputation for safety makes São Tomé an attractive choice for travelers seeking a secure and peaceful environment.

Market Opportunity

São Tomé and Príncipe has become an increasingly popular tourist destination, with 120,000 visitors opting for overnight stays between 2018 and 2022. The islands’ appeal is evident in the remarkable 74% surge in overnight visits during the 2021-2022 period alone. This growth reflects the country’s rising profile in global tourism, driven by its natural beauty, biodiversity, pristine beaches, and unique cultural heritage, positioning São Tomé as an attractive choice for international travelers.

Investment Required

São Tomé offers significant investment opportunities for large-scale developments that integrate various tourism-related facilities and services within a cohesive environment. These opportunities include expanding and modernizing hotel accommodations, creating recreational and entertainment options, improving infrastructure to access remote areas for eco-tourism, and restoring colonial-era “Roça” plantation houses.

Government Incentives

• Access 50% tax deduction for investments in specialized equipment and employee training

• Receive 30% tax deduction for capital reinvested in sustainable tourism sector

• Reduced income tax rate of 10% for both resident and non-resident businesses involved in new ventures or expansions.

• Zero (0%) payment on import duties for goods and equipment for critical to infrastructure projects.

• Strong regulatory support through “The Public-Private Partnership (PPP) Law No. 06/2018”

• Transparency, risk-sharing, and investor protection, creating a secure environment for long-term investments in the transport and logistics sector.

Investment Type

Public Private Partnership

 

For more information about this project, please contact CITD-Miami: info@citdmiami.org