The Resort Group Plc Resorts Close as COVID-19 Brings Unprecedented Halt to Cape Verde Tourism
The Resort Group Plc’s resorts in Cape Verde have closed as the rapidly escalating COVID-19 pandemic brings international tourism to an unprecedented halt.
The closure of the Group’s resort operations on Sal follows extraordinary developments across the global travel industry, with international flight schedules being withdrawn, borders closing and governments introducing increasingly stringent measures designed to limit the spread of the coronavirus.
The Resort Group Plc’s properties have been at the heart of Sal’s transformation into an international tourism destination, attracting visitors from major European markets and supporting substantial employment and economic activity on the island.
The temporary shutdown represents an interruption unlike anything experienced during the Group’s years of investment and development in Cape Verde.
Lisa Kellett, Chief of Staff at The Resort Group Plc, said:
“The scale and speed of what is happening across international tourism is unprecedented. Our immediate priority has to be the health and wellbeing of our guests, our teams and the wider communities in which we operate.
“Closing resorts is not a decision anybody in hospitality ever wants to take, but these are exceptional circumstances affecting countries, airlines, tour operators and hotels throughout the world.
“We have built our presence in Cape Verde with a long-term vision, and while we cannot know at this stage how long this disruption will last, our belief in Sal and in the future of Cape Verde tourism has not changed.”
An unprecedented shock to international tourism
COVID-19 has developed from a regional health emergency into a global crisis in a matter of months.
The resulting restrictions on movement are having immediate consequences for aviation and tourism, industries fundamentally dependent upon the ability of people to travel between countries.
For an island destination such as Cape Verde, international air connectivity is essential.
The Resort Group Plc has spent more than a decade investing in the development of Sal’s tourism offering, beginning with the opening of Meliá Tortuga Beach Resort in 2011 and subsequently expanding its portfolio through further major resort developments.
The Group was founded by Rob Jarrett in 2007 and established a partnership with Meliá Hotels International to manage its resorts on Sal.
That expansion has accompanied the wider growth of Cape Verde as a holiday destination and the development of new direct connections with European markets.
The sudden interruption to those international travel flows therefore creates challenges extending well beyond individual hotels.
Kellett said:
“Tourism has become part of the economic fabric of Sal. The resorts support employment directly, but they also generate demand for suppliers, transport providers, food and beverage businesses and many other services.
“When international travel stops, the effects are felt throughout that ecosystem. We recognise the seriousness of what this means for everyone whose livelihood is connected to tourism.”
Resort income interrupted
The closure will inevitably have financial consequences for The Resort Group Plc and its stakeholders.
With guests unable to travel and resorts unable to operate normally, the income generated through hotel operations will be interrupted for the duration of the shutdown.
That disruption will also affect the rental income and returns associated with resort property investments.
The Group recognises that this creates uncertainty for investors as well as for employees, partners and suppliers.
Kellett said:
“We understand that our investors will have questions about what this means for them. A resort cannot generate its normal operating income when it is closed, and international visitors are unable to reach the destination.
“This is an external shock affecting the entire global tourism industry, rather than something specific to Cape Verde or to our resorts.
“We will continue to assess the situation as it develops and communicate as clearly as possible. Our focus has to be on navigating the immediate crisis while protecting the long-term value of what has been built.”
Years of investment remain in place
Although the immediate outlook for international tourism is uncertain, the physical infrastructure and tourism product developed on Sal remain in place.
The Resort Group Plc has developed a portfolio of large-scale five-star resorts in partnership with internationally recognised hospitality operators. Before the pandemic, the Group described its completed Sal developments as having established a strong operating track record.
Meliá Tortuga Beach Resort, which opened in 2011, was followed by Meliá Dunas Beach Resort & Spa in 2014 and further major hotel developments in 2016, including Meliá Llana Beach Resort & Spa.
Those developments have helped increase the capacity and international profile of Sal’s hospitality sector.
Kellett said:
“A crisis of this magnitude inevitably creates short-term uncertainty, but it does not erase what has been built over the past decade.
“The resorts remain here. The infrastructure remains here. The beaches, climate and natural attractions that brought international visitors to Sal remain here.
“Most importantly, the knowledge and hospitality of the Cape Verdean people remain. Those fundamentals give us confidence that, when people are able to travel again, Cape Verde will still have a compelling tourism proposition.”
Supporting Cape Verdean employment
The impact of the shutdown is particularly important because of the number of Cape Verdeans whose employment is connected to the Group’s resorts.
The Resort Group Plc has historically placed considerable emphasis on local employment. Its corporate materials have reported that approximately 97% of employees at its Cape Verde resorts were Cape Verdean, demonstrating the close relationship between resort operations and the local economy.
The interruption to tourism therefore represents not simply a corporate challenge but a broader economic and social one.
The Group will continue working with its partners and monitoring measures introduced by governments and health authorities as the crisis develops.
Long-term confidence remains
The Resort Group Plc was founded in 2007 around a belief that Cape Verde had the potential to become a major international tourism destination.
Over the years that followed, Sal experienced significant growth in hotel capacity, international airlift and visitor numbers.
COVID-19 has abruptly interrupted that trajectory.
How long the disruption will continue cannot yet be predicted, nor can the full economic consequences for international tourism.
But The Resort Group Plc believes the long-term attractions underpinning Cape Verde’s tourism industry remain intact.
Kellett concluded:
“Nobody can responsibly predict today exactly when international tourism will return to normal. The situation is changing rapidly, and our decisions will continue to be guided by the safety of people and the advice of the relevant authorities.
“What we can say is that The Resort Group Plc has invested in Cape Verde for the long term. We have been part of Sal’s tourism story for many years, through periods of enormous growth and change.
“COVID-19 represents a challenge unlike anything the industry has experienced before. But there will be a time beyond this crisis, and when international tourism is able to restart, we intend to be part of Cape Verde’s recovery.”
The closure on 18 March 2020 marks the beginning of an uncertain period for The Resort Group Plc, its resort operations and the wider Cape Verde tourism industry.
For now, the priority is navigating the immediate health emergency and protecting people. Beyond it, the Group remains committed to the long-term future of its resorts, its investors and Cape Verde as an international tourism destination.