Tourism in the Algarve. Challenges in times of uncertainty – Part I

First article by Professor João Albino Silva, who argues: «Tourism in the Algarve, although it benefits from strong national and international visibility, needs to improve its competitive factors, on a sustainable basis»

As a result of favorable climatic conditions, the Algarve is perhaps the Portuguese region that has undergone, in recent decades, the greatest changes in its economic, social and territorial structures, having become a territory specialized in services, with particular emphasis on the activities associated with tourist, residential and leisure activities.

It is clear, however, that Tourism in the Algarve, although it benefits from strong national and international visibility, needs to improve its competitive factors, on a sustainable basis, to maintain a significant presence in a globalized and highly competitive tourism market, and where the current standard The growth rate of this activity is substantially different from the growth of the XNUMXth century.

Which means it is necessary to position itself at higher levels of competitiveness and with increasing degrees of innovation, knowledge and sophistication.

To this end, activities related to tourism operations require levels of knowledge on the part of the public sector and companies and their representative organizations that allow them to rigorously equate, among other domains, the profiles of new emerging consumers, the economies that are being created. , phenomena linked to the so-called “touristification” of our territories, the effects of technological platforms, culture and heritage and the sustainability of the systems on which tourism in our region is based.

It is important to emphasize that the Algarve is not the only region that needs to assess its strategic positioning in terms of tourism. Globalization implies, among other things, that destinations, regardless of their geographic location, are in competition with each other.

In fact, the existence of strong competition between the most popular destinations in terms of international tourism requires that the Algarve's strategic positioning approaches integrate shared visions between the public sector, business organizations and communities.

Based on informed and rigorous knowledge, the areas where this active collaboration between the main partners is necessary include, namely, a vision of its future as a competitive and sustainable destination, a strategic planning process and an effective monitoring of its competitive performance.

With a model of tourism growth marked from the beginning, by a logic of insertion in mass international flows, where sun and beach tourism has been predominant, this region and its main economic agents are, therefore, facing important challenges that guarantee its competitive level in international contexts. These are challenges where profound changes in societal, economic and environmental patterns stand out worldwide.

In fact, tourist activity is the complex result of interrelationships between several factors that must be considered together in a systemic perspective, not only those arising from the tourist market, but also bearing in mind those that involve and interact with other dimensions, such as globalization, the territory and the environment, social and cultural dynamics and legal-institutional frameworks, among others.

An adequate strategic positioning of the Algarve implies knowledge of the dynamics that occur in companies and in the main outbound markets, which have an impact on this region.

The leading role of tourism in the world is not unrelated to the substantial increase in the intensity of tourist flows, associated with the growing mobility of people, the increase in income in many parts of the world and the lowering of transport costs.

It will, however, be important to highlight other trends that have affected tourism, with implications for changing tourist tastes and needs, such as demographic changes, exemplified in aging rates and the increase in single-parent family units, the higher educational level of people , awareness of health and environmental issues and the emergence of new lifestyles.

On the other hand, the so-called technological “revolution” has been amplifying the dynamics of tourism demand and supply, with a strong influence in areas as diverse as the disintermediation of tourism operations, transport, energy, security and health itself. and food.

Today, it is difficult to imagine the tourist market disconnected from technological platforms, also known as digital platforms, collaborative platforms, or “marketplaces”. And the so-called local accommodation is one of the most significant manifestations of this so-called collaborative tourism.

It will also be important to admit that climate change is not only an important conditioning factor for the evolution of many tourist destinations and travel patterns, but also the need to integrate sustainable development in the management of tourist activities.

These and other new dynamics on which the current growth of tourism is based are much more intrusive, erosive and with a particular impact on local communities.

Complex realities, not always properly taken care of in their social and environmental effects, thus coexist with the creation of new local "branding", new more sophisticated and more eclecticly attractive areas, changing, at the same time, landscapes, ways of life and images identity and, at the other time, fostering new investment and employment opportunities.

The challenges facing the tourism sector (and the Algarve) are many. Fortunately, some solutions are possible to equate. I will try to contribute to this reflection in a future writing in Sul Informação.

 

Author Joao Albino Silva
Faculty of Economics, University of Algarve

Note: article published under the protocol between the Sul Informação and the Algarve Delegation of the Order of Economists

 

Who is João Albino Silva?
João Albino Matos da Silva, PhD in Economics and Aggregate in Tourism Economics.

Full Professor at the Faculty of Economics, University of Algarve. Portugal.
President of the Scientific Council of the Faculty of Economics, University of Algarve.

Director of the PhD Program in Tourism at the Faculty of Economics, University of Algarve.
Coordinator of the Department of Economics at the Faculty of Economics, University of Algarve.

Member of the national coordination of the Research Agenda in Tourism, Hospitality and Leisure Management, for Portugal, of the Foundation for Science and Technology (Ministry of Higher Education, Science and Technology).

Member of the scientific coordination and responsible for the research area in Tourism and Welfare at the Research Center for Space and Organizations (CIEO), University of Algarve and Foundation for Science and Technology.

Representative of the University of Algarve in the World Network on Knowledge Transfer in Tourism, chaired by Professor Jafar Jafari, “Tourism Intelligence Forum”, Naples, Italy.

President of National Evaluation Commissions of University Courses in Tourism in Portugal, A3ES (2010-2015; 2018-).
He was President of the National Tourism Observatory (Ministry of Economy, Secretary of State for Tourism, Portugal, 2000-2003.

He has coordinated national and international research projects.
He has published and edited several books and scientific articles on the issue of Tourism.

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