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Tourism permits in Angola: a measure that could strangle the market
Recently, new legislation related to licenses for the tourism sector was approved in Angola, covering travel agencies, hotel units, and restaurant establishments.
At first glance, the measure appears to aim at organizing the sector and creating a clearer licensing framework. However, when looking carefully at the values and the adopted model, an essential question arises:
are we structuring the sector or are we making its growth more difficult?
An expensive license in a market still under construction
In the case of travel agencies, license values exceed 5 million kwanzas to operate legally.
For a country where tourism is still in a growth phase, and where many companies are small or family-run, this amount represents an extremely high initial investment.
And here an obvious problem emerges: when the cost of entering the market is very high, what usually happens?
Many operators simply choose to continue operating informally.
And anyone familiar with the tourism sector in Angola knows this is not a hypothetical scenario. There are currently several entities selling travel, organizing excursions, or promoting tourism experiences without any formal licensing.
Instead of helping to formalize the sector, a fee that is too high may reinforce exactly what it intends to combat.
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What kind of agencies do we want? Those that sell tickets simply to generate cash flow and ensure their sustainability, or those that invest in the domestic market through hard research work and dedicate themselves to innovating and building different solutions and experiences?
A measure that prioritizes immediate revenue
Another aspect that deserves reflection is the adopted model.
The license is paid only once, after which the company is allowed to operate for a practically unlimited period.
This raises a strategic question: was the system designed to develop the sector or to generate immediate revenue?
In practice, what may happen is simple:
- the current ministry collects a significant amount now,
- in the future there will no longer be a continuous source of funding for the sector.
- the total initial cost is approximately around 3,000 euros (3.26 minimum wages in Portugal, about 2.7 million kwanzas at an approximate exchange rate).
- Even in more demanding systems, the licensing fee may be close to 12,469 euros, depending on the license framework and the type of activity.
But there is a fundamental difference:
- these countries have mature tourism markets, with millions of tourists per year, high demand, and companies with greater financial capacity.
- Angola is still in an early stage of tourism development.
- Therefore, copying the model without adapting it to the context may produce exactly the opposite effect of what is intended.
A more sustainable alternative model
Perhaps the question we should ask is different:
how can we create a system that encourages formalization while at the same time financing the sector?
One possibility would be to adopt a more progressive model, for example:
- a more accessible initial fee
- combined with an annual activity fee.
This model would have several advantages:
- it would reduce the barrier to entry into the market
- it would encourage the formalization of companies
- it would create a permanent source of funding for the sector
- it would allow more regular monitoring of licensed companies.
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EXCLUSIVE HOTELS ANGOLA VOUCHER
Over the years, the State could collect more resources than with a single payment, but without strangling the market.
Developing tourism requires facilitating investment
Angola has extraordinary tourism potential:
- unique nature
- rich culture
- extensive coastline
- destinations that remain authentic.
Creating barriers that are too high right at the start can have a complicated effect: instead of energizing the sector, it may reduce the number of formal companies and hinder innovation.
A necessary debate
Organizing the tourism sector is fundamental. But regulating does not necessarily mean making access to the market more expensive.
The real challenge lies in finding the balance between:
- regulation
- institutional sustainability
- and sector growth.
Because in tourism, more important than collecting millions today is creating a strong sector that generates value for decades.
And for that, it may be necessary to reconsider whether this licensing model is truly the most suitable for Angola’s reality.
Sincerely
Jorge Nunes
www.hoteisangola.com
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