AL properties with fewer than 10 beds are not taken into account for funding
Tourism officials in the Algarve have warned that the region lost around €5 million in funding due to approximately eight million unaccounted overnight stays in short-term holiday rentals (AL).
André Gomes, president of the Algarve Tourism Region (RTA), expressed his concern about the issue during a press briefing in Faro.
“The Algarve in 2023 may have around eight million overnight ‘AL’ stays that were not accounted by the National Statistics Institute (INE) and which are not considered for the funding of regional (tourism) entities. This is extremely negative to the Algarve in particular,” Gomes told reporters in Faro.
His statements came during the presentation of the new Strategic Marketing Plan of Algarve Tourism, which paints a picture of the sector’s landscape until 2028.
As the tourism chief explained, the Algarve is home to over 43,700 properties used for ‘AL’ short-term holiday rental, the vast majority of which (42,800) have fewer than 10 beds and thus are not accounted for by INE.
Data from Eurostat and local reservation platforms suggest that these unaccounted stays amount to 8.7 million overnight stays in 2023, representing over €202 million in revenue. However, state funding for the Algarve is calculated based on the 20.4 million overnight stays recorded by the INE, while the actual figure is closer to 29 million. This underreporting translates into a loss of €4 to €5 million in funding, or nearly half of the region’s annual tourism budget of €10 million.
The region’s new marketing strategy, which outlines goals and strategies for the region until 2028, aims to establish the Algarve as a competitive and sustainable destination recognised for its quality and diversity.
It has four main goals – “increasing competitiveness, decentralising demand, diversifying markets and committing to sustainability”.
André Gomes said he wants the plan to shape the entire region’s actions and plans.
“What we want to do is leave a path for the region to follow when it comes to the tourism sector and achieve our goals,” he said.
Compared to the official numbers in 2023, the Algarve is hoping to increase passenger movement at Faro Airport by 10%, overnight stays by foreigners by 4.1% and total revenue by 12% by 2028.
