By PAULO SILVESTRE paulo.silvestre@theresidentgroup.com
Tourism authorities say that hotels in the Algarve were crowded during August, with around 800,000 tourists visiting the region but spending less money than in recent years.
The president of the Algarve hotels and tourist resorts association (AHETA), Elidérico Viegas, told the Algarve Resident: “August went according to our expectations in terms of occupation rates. In the first three weeks of August, the hotel units in the region were all almost fully booked and the month will possibly close with an increase in comparison with last year.”
He said that these numbers have to do with the instability in North Africa and with tourists preferring the Algarve as an alternative.
This rise is largely based on an increase in visitors from the UK, Holland, Germany and Spain.
Elidérico Viegas believes revenue has, however, not increased because fewer Portuguese people are holidaying in the region.
“The indicators suggest that the average annual occupancy rate will continue below the level of profitability, and this year there were fewer Portuguese tourists in the Algarve in comparison to last year,” he said.
“The Portuguese tourist in the last five years has prevented major losses in tourist revenue, but this year we expect a drop of about 10%.”
Many Portuguese families spend holidays at relatives or friends’ houses and the result is a region full of tourists but controlling their spending.
“We have more tourists, but they spend less. Revenue will possibly be 5% lower than last year,” said Elidérico Viegas.
“The Algarve is a seasonal holiday destination. The average occupancy rate in 2010 was 51% and this year should be similar. The ideal percentage to monetise the investments is 65%. Below that we can’t have control on prices and we have a weak product.”
A spokesman from the four-star Casabela Hotel in Ferragudo told the Algarve Resident: “The occupancy rate was very good. We had an increase of about 20% in comparison to last year as we have regular clients who come here every year and they always bring more friends or recommend our hotel to others.”
He added: “The Algarve has done well this year. It is a paradise for tourists with some of the best beaches and gastronomy in the world.”
Offering a contrary view, a spokesman from O Leão de Porches restaurant in Porches, Lagoa council, said: “This summer has been worse than last year. We had fewer customers coming to our restaurant, maybe due to the current economic crisis.”
Clothing and souvenir shop in Carvoeiro Casa Tilinha also felt the pinch last month. A spokesman said: “The town and nearby beaches were absolutely packed with tourists, particularly British families, but people are really counting their pennies and are spending a lot less on souvenirs to take back.”
Also read ‘Some hotel groups could collapse’.
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