Tourism

Tourism business in São Tomé and Príncipe: eco-lodges, diving, agritourism

São Tomé and Príncipe is one of the few places in the Atlantic where tourism is only just taking off. Visitor numbers grow every year, yet quality mid-range and upscale hotels are still scarce. Here is where the investor's niche lies and how to get from idea to opening.

The market in figures

Portugal is the main market: 54% of tourists in 2024. It is followed by the USA (8%), France (5%), Angola (5%) and Germany (4%) (RTP África, Jornal Económico).

Entry and tourist tax

• Citizens of the EU, the USA, Russia, CPLP countries and a number of other countries can enter visa-free for up to 15 days.
• Others apply for an e-visa, which takes about 7 working days.
• Since March 2026 a single tourist tax applies: €25 for São Tomé plus €10 for Príncipe.

Niches that suit investors

1. Eco-lodges and boutique hotels with 10–30 rooms. Príncipe is a UNESCO biosphere reserve, so demand is for small, low-impact developments rather than large resorts.
2. Diving, surfing and water sports. Warm ocean all year round, shipwrecks, whales during the migration season.
3. Agritourism on old plantations (roças). Colonial estates can be restored as guesthouses with plantation tours and chocolate tastings. More in our article on cocoa plantations.
4. Sport fishing — marlin, tuna, sailfish.
5. Tourist services: transfers, guides, car and boat rental, restaurants.

Land for a hotel

Land in São Tomé and Príncipe belongs to the state. A foreign investor receives a plot not as property but under a long-term concession under the Land Law (Lei 3/91). Concessions for hotels are granted by the Ministry of Agriculture and Fisheries.

The coastal strip — the first 80–100 m from the shore — is under military jurisdiction, namely the maritime authority (Capitania). A seafront plot therefore needs separate approval from the Capitania, and its status, boundaries and any prior rights should be checked in advance.

Tax incentives for tourism

Tourism projects are registered under the Investment Code (DL 19/2016) and the Tax Benefits Code (DL 15/2016). Key incentives:

• accelerated depreciation — a ×3 factor for tourism, so construction costs are written off three times faster;
• import duty exemption for equipment, furniture and building materials for the project;
• tax credits against corporate income tax, depending on the amount invested and jobs created.

We describe how an investment project is registered in our articles on taxes and on ready-made investment projects.

What a project can look like

Several investors set up a special purpose vehicle (SPV) in São Tomé. The company obtains a concession for the plot, registers the project under the Investment Code and builds an eco-lodge. Each investor holds a stake in the SPV, and the agreement sets out funding, reporting and exit terms.

Risks to be aware of

• Logistics. Few flights; many building materials have to be imported.
• Seasonality. Peaks in August and December; flexible pricing is needed the rest of the year.
• Staff. Employees need training; budget for it.
• Power and water. Remote sites need solar plants and their own water supply.

This article is for general information only and is not legal or tax advice. Laws and fees may change — check the current terms before you decide.