This paper discusses the following selected issues related to the São Tomé and Príncipe’s economy: tourism competitiveness in São Tomé and Príncipe—challenges and strategy, macro-financial linkages, private sector development, and challenges of small financial systems. São Tomé and Príncipe has experienced significantly faster growth in tourism than most tourism-dependent small states (TDSS). An application of a tourism gravity model shows that São Tomé and Príncipe is competitive in compared to TDSS. However, tourism development in this country faces broad challenges both on the micro and micro level. São Tomé and Príncipe can do well with venture capital-type financing for micro, small-, and medium-sized enterprises.
Hacibedel (FIN), Dorothe Singer, and Julian Casal (all World Bank) with production assistance from Estanislao Rengifo.
TOURISMCOMPETITIVENESS IN SÃO TOMÉ AND PRÍNCIPE: CHALLENGES AND STRATEGY
B. Challenges and Strategy
1. Tourist Arrivals, 1995–2014
2. Relative TourismCompetitiveness Index, 1999–2009
3. Tourism Performance on Select Origin Markets
4. Select Indicators of Bottlenecks to Tourism
5. Volatilities of GDP and of Tourist Arrivals in TDSS, 2000–14
6. Indicators of Policy Buffers
TourismCompetitiveness in São Tomé and Príncipe: Challenges and Strategy 1
1. São Tomé and Príncipe has experienced significantly faster growth in tourism than most tourism dependent small states (TDSS) . Growth in tourist arrivals since 1995 averaged 7.5 percent annually, and, by 2009, had more than doubled ( Figure 1 , left chart). The crisis in Europe, home of the vast majority of tourists to São Tomé and Príncipe, led to a significant cutback in the number of arrivals in 2010. However there was already a rebound in 2011