2017 hotel occupancy in the Algarve close to the “golden years” of the turn of the century

The average annual occupancy rate of hotels in the Algarve, in 2017, rose to 65,5%, a much higher number […]

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The average annual occupancy rate of hotel units in the Algarve, in 2017, rose to 65,5%, a number much higher than those recorded at the beginning of the decade and close to those registered between 1999 and 2001, golden years for Algarve tourism , in which this indicator reached 70 percent. In addition to a 2% growth in occupancy, compared to 2016, there was also a 9,7% increase in turnover, revealed the Association of Hotels and Touristic Enterprises of the Algarve (AHETA).

Expectations for 2018, says the association, are for "consolidation of results", that is, "no increases in occupancy rates are expected, although turnover may grow slightly, mainly induced by the increase in prices over the years transactions'.

In 2017, «the good results achieved are due, in particular, to the increase in demand from the German market (+17,8%) and Irish (6,1%) and, above all, to the growth of all foreign markets with little expression individual in the total volume of overnight stays, but enough to compensate for the great decrease of our main tourist supplier, the United Kingdom (-8,6%)», according to AHETA.

These expanding markets include 'Poland, Sweden, Belgium, Switzerland, Italy, Denmark and Canada'. The national market also grew, in this case, 1,2%. Their joint contribution allowed that, «for the first time in the history of tourism in the Algarve, there were positive results, despite the drop in the British market».

And the increase in occupancy, in 2017, reached almost everyone, taking into account that, «except for the 5-star hotels (-5,6%) and the area of ​​Loulé/Vilamoura/Quarteira/Vale do Lobo/Quinta do Lago (-5,5%), all geographical areas of the Algarve and all types of establishments improved their average occupations during the year, with the volume of sales growing at a higher rate than the occupations, which indicates a recovery in the prices charged, heavily affected in the past by the major global economic crisis of 2008'.

 

In economic indicators, AHETA highlights the income per available room, which grew 12% compared to 2016, standing at 53 euros. This has helped that the gross receipts resulting from the invoicing have "amounted to more than one billion euros, of which about 760 million are related to accommodation".

“The golf courses saw the number of rounds increase by 5,3% to a total of 1.361 thousand, an increase in line with what was seen in hotels and tourist developments”, added the association.

But it wasn't all roses. «The general lack of labor continued to influence, equally, in a very negative way the hotel and tourism sector in the region, constituting one of the main bottlenecks of tourism activity today».

On the other hand, AHETA reports negatively the devaluation of the pound, the increase in jet fuel and the bankruptcies of the airlines Monarch, Lauda Air and Air Berlin, “as well as the losses caused directly to the Algarve's hoteliers, embodied in overdue and unpaid billing. amounting to more than €7 million'.

The association also warns of the good performance of competing destinations in the Algarve, namely those in the Mediterranean Basin, "which recorded very remarkable tourist growth, namely countries affected by situations of instability in the past, (Tunisia, Turkey and Egypt)" .

«In summary, in 2017, in the officially classified media, the Algarve received 4,2 million tourists, of which 1,1 million were nationals, generating a total of approximately 20 million overnight stays. On the other hand, and considering all types of accommodation, classified or not, more than 7,1 million tourists, corresponding to around 35,7 million overnight stays, make the Algarve the largest and most important tourist region in Portugal. The Algarve was also the main net contributor to the country's “Travel and Tourism” item, which amounted to more than 15 billion euros», concluded AHETA.

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