By INÊS LOPES ines.lopes@algarveresident.com
Algarve’s economic and social situation is deteriorating by the minute and the region’s difficulties are “far worse” than those felt in the rest of the country; this is the stark message of the Algarve Câmaras Association AMAL in a statement to the press on Monday.
During a meeting of the presidents of the Algarve municipalities at the beginning of the week, AMAL slammed the support tools announced by the government for the region, such as a training programme tailored for the region’s unemployed (Programa-Formação Algarve) and the financial assistance after the fires of July. “These have proved insufficient and urgent measures are needed,” said the association.
One such measure on the table was the possible introduction of a tourist tax on overnight stays at hotels in the region, with funds raised through the additional charge going to support “social causes and the needy of the Algarve”.
Members of AMAL are now calling on the government to consider business support mechanisms that are specifically tailored to the needs of the Algarve, such as the creation of programmes incentivising entrepreneurial initiatives particularly for the unemployed.
The Algarve Mayors, in the statement signed by AMAL president Macário Correia, also urge the government to encourage local public investment financed in the framework of European Investment Bank’s credit lines.
Upon analysing the “grave situation” of the Algarve, câmara presidents compared the unemployment rate in the region, at 17.4%, to the national average, at 15%, and brought attention to the fact that requests for food support from the needy increased “dramatically” in the last few months.
“The Algarve Food Bank has provided assistance to 16,000 people so far this year, an additional 1,500 on the same period last year, and is currently supporting 73 institutions,” the statement read, adding that câmaras have their hands tied due to their own financial problems.
Social housing was another subject discussed at the AMAL meeting, where it was pointed out that no funding was available from the government for the construction of new properties for those earning the lowest income levels.
The mayors also reflected on the substantial increase in the number of people on unemployment benefit in the region (+21.8%) when compared to 2011, while the rate of Algarve families falling behind on bank loan repayments stood at 11.9%, against a national rate of 11.5%.
Listing other affected sectors, AMAL described how the construction industry had suffered a “dramatic” drop in the number of building licence applications (-18.5%) and the number of concluded building works (-25.5%) in comparison to last year.
The AMAL statement concluded by saying that municipalities are unable to attract new investment, particularly foreign, due to the country’s bureaucratic and legal hurdles when it comes to implementing new projects.
