The tourist year of 2015 was full of good news for the Algarve's hoteliers, but the best «is that the growth in business volume was higher than the occupancy rate», considered the president of the Algarve Hotels and Tourism Enterprises Association (AHETA), in statements to the Sul Informação.
This means that the hotels in the Algarve are managing to make more money with each tourist they host, something only possible thanks to «the recovery in prices, which had fallen during the crisis».
For Elidérico Viegas, this is a reality that was evident in the results obtained by the Algarve business association for 2015, released this Wednesday. For the hoteliers representative, we are on the path that will allow us to return to the values of the turn of the century, in which the Algarve hotel industry reached a peak, which was briefly repeated in 2007.
The numbers make the association happy, but they also please the businessmen it represents. «In Portugal and Europe, where everything grows, if it grows around 1%, having an activity, such as tourism in the Algarve, which grows 5% in occupation and between 8 and 9% in sales, is very good», considered Pedro Lopes, CEO (administrator) of the Pestana Group in the Algarve.
It is, moreover, the 60 percent occupancy and, above all, the direct gross invoicing in the order of 750 million euros achieved in 2015 that lead AHETA to say that last year ended "with a positive balance", in compared to 2014.
Making the statistical accounting, "there was a 5,5 percent increase in the annual occupancy rate, compared to 2014, and an 8,6 percent growth in revenue." As for prices, there was an increase of 3,1 percent, compared to those practiced in the previous year.
Total overnight stays amounted to around 17,5 million and the number of guests in officially registered hotel and tourist developments reached 3,5 million, of which more than 1,06 million were national. The average income per available room (RevPar) was 38,9 euros/day. "Net results rose 3,3 percent, while more than 85 percent of companies saw their financial situation improve compared to the previous year," added AHETA.
The good performance of the hotel units is closely linked «to the reduction of rates at the Airport of Faro, promoted by ANA». “The company, which is now privately managed, realized that it had to lower rates to make more money, and managed to exponentially increase the number of passengers transported. This was reflected positively in the occupancy of hotels and developments, with effects outside the high season», considered Elidérico Viegas.
The impact of this decision by ANA Aeroportos is reflected, for example, in "the increases of 16 percent in occupancy in January and 17 percent in December," explained the association leader.
"In three years' time, we expect to reach what is considered the critical point from which hoteliers can take full advantage of their operations, the 65 percent annual average occupancy," added Elidérico Viegas.
In 2016, AHETA's forecasts, «which are not usually far from reality», point to an occupancy rate in the order of 62,3 percent. “The outlook for 2016 points to a rise in prices by 2,6 percent, occupancy rates by 3,8 percent and sales volume by 5,9 percent, causing companies to improve their net results and financial by 2,2%», summarized AHETA, in the balance it released of 2015 numbers.
“For this growth, there are two big driving forces: the diversion of large inflows from countries like Egypt, Tunisia and Turkey, making us benefit a little from that, and also the fact that the pound is doing very well, which it makes the British market very good too», considered Pedro Lopes, who gives the perspective of a group, Pestana, which has eight hotels and three inns in the Algarve.
Monte Gordo and Vila Real de Santo António lead the occupancy rate
The increase in the average annual occupancy rate received a good contribution from the hotels in the tourist area of Monte Gordo/Vila Real de Santo António, which achieved the best regional performance, having managed to have 71,1 percent of its rooms occupied during the year.
“For us, here in this area, the word seasonality no longer makes much sense. We have people all year round, there are no big differences», illustrated Carlos Viegas, the director of the Hotel Vasco da Gama, in Montegordo, one of the oldest units in the Algarve and a reference in this tourist area.
In the case of this hotel unit, in particular, this reality is even more notorious. “Last year we had an average annual occupancy of 82 percent. In January we were in the 80s and such, in February close to the 90s and the prospects for March are that they will be above 80 percent…», he revealed. "We have customers who come back here regularly for 10, 20 and 30 years," he said.
And how can seasonality, the great problem of the vast majority of tourist agents in the Algarve, be mitigated in this way? “I think it has to do with the fact that this is a very flat area, which leads to many Dutch people coming here. They are tourists who enjoy walking and cycling and here we have the ideal conditions for that», revealed Carlos Viegas.
Tourists from that country "must represent 80 percent of customers" during the low season. In summer, «everything is more or less the same throughout the Algarve». "Between November and April, we give the others ten to zero," he said, in a joking tone.
In other words, in high season, hotel units in that area, namely those operating «between Monte Gordo and Manta Rota», essentially sell Sol e Praia, like the others. In low season, they sell outdoor activities and health and well-being, such as hiking or birdwatching, but also sports. “The VRSA Sports Complex also generates a lot of clientele for the hotels in this area, with the many events it hosts,” he added.
In addition to this tourist area, which had an average annual occupation of 71,1 percent, the areas of Faro/Olhão with 64,7 percent, Portimão/Praia da Rocha/Alvor with 61,9%, Vilamoura /Quarteira/Quinta do Lago with 61,6% and Albufeira with 61,2%.
Tourism Region optimistic about the future of the Algarve hotel industry
The Algarve's hotels are «moving towards the so desired sustainability» and there are reasons to face the future with optimism and confidence, considered the president of the Algarve Tourism Region (RTA) Desidério Silva.
The head of the entity responsible for promoting the region in the domestic and proximity market (Portugal and Spain) is happy with the results announced by the hoteliers, a confirmation of what RTA had already expected. «Since the beginning of 2015, in the approaches and contacts made with hoteliers, we were left with the perception that the tourist year was going to be much better than the previous one», he considered.
Like the president of AHETA, Desidério Silva also considers the fact that there is an increase in the financial return, “which allows the hotel units to invest”, not only in the infrastructure they manage, but also in their human resources, to be particularly positive.
"For 2016, all indicators point to fairly good levels of return, even higher than those in 2015," he added. A growth that, he defended, is due to the sector's entrepreneurs, but also to “public entities”, which have been working to help the economic sector.
3-star hotels were the most sought after, English continue to dominate
In the end-of-year balance of AHETA, indicators relating to occupation are also made known, by type of hotel unit, and also on the nationality of tourists who have chosen the Algarve for their holidays. At the top were 3-star hotels, those that achieved a higher occupancy rate, and the British market, which continues to be the most influential, followed by the national market.
By type of hotel unit, 3-star hotels had the highest average occupancy rate (66,2%), followed by 5-star and 4-star tourist apartments and villages (63,9%).
British tourists generated more than 5,7 million overnight stays (32,7%), followed by nationals with close to 4,1 million (22,9%), by Germans (1,9 million, 11,2%), by the Dutch (1,5 million, 9,6%) and Irish (927 thousand, 5,1%).
In 2015, tourist golf generated 1 rounds, that is, an average of 166 rounds per course (+30.807%). «Foreign tourists are responsible for 7,4 percent of the tours sold (95 tourists/year), with direct revenues reaching around 250 million euros and indirect (accommodation, catering, commerce, rent-a-car, etc.). ) around 75 million euros in tradable goods», revealed AHETA.
The marinas and marinas in the Algarve also saw an increase, on average, in the number of visits by national and foreign vessels and Residential Tourism showed signs of recovery, «consubstantiated in an increase in property transactions carried out during the year».
In addition to the factors already mentioned by Elidérico Viegas and Pedro Lopes, “the drop in Jet Fuel prices for aircraft (-50% in euros and -70% in dollars since 2013) also contributed decisively to the increase in demand. in 2015”, concluded the business association.
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