AHP: Algarve had the third highest occupancy rate in the country in 2022

According to a survey carried out among members of the association

The Algarve had an average Occupancy Rate (TO) of 61% in 2022 and was the third region with the highest TO, behind Madeira, which led with 76%, and Lisbon (70%), according to data collected by the Associação of Hotelaria de Portugal (AHP) with its associates, who were presented yesterday, in Lisbon.

As for the average price per room sold (ARR), it was 124 euros in the Algarve in 2022, a value above Madeira (113 euros), but below Lisbon (152 euros).

The survey “Balance 2022 & Perspectives 2023″ by AHP was carried out between February 24th and March 14th and found, from the outset, that 54% of the hoteliers surveyed, at national level, «state that they have already reached pre-pandemic operating levels ».

Even so, there are 46% who say they will only return to pre-pandemic levels between the 1st half of 2023 and the 2nd half of 2024.

In general terms, the Occupancy Rate stood at 61%, on average, nationwide. The ARR, on the other hand, was fixed at 119 euros, in an analysis of the whole country.

«The AHP thus concluded that the decrease in TO compared to 2019, which the INE had already revealed for all tourist developments, was also observed in the hotel industry. In contrast, and also following the trend seen in other tourist developments, the average price per room sold has risen», according to the association.

«For AHP, this increase reflects the inflation that occurred in the period (7,8%), the increase in costs with all production factors, plus the growth in demand for Portugal and the upward positioning of the destination», he added.

Regarding the average stay, Madeira also had the longest average stay in the national territory – 6 nights -, followed by the Algarve, with 5 nights, and the Azores, Lisbon and Alentejo, with 3 nights.

The main distribution channel was Booking, mentioned by 93% of respondents, followed by the website itself (83%).

As for outbound markets, Portugal, Spain and the United Kingdom were the markets most mentioned by the hoteliers surveyed.

For 2023, «the majority of hoteliers predict that, in all quarters, 2023 will be better than 2019 and 2022 in the three indicators: TO, ARR and Revenues. Portugal, Spain and the United States of America are the markets most pointed out by hoteliers for 2023, followed by the United Kingdom, France, Germany and Brazil».

«As the main challenges for the sector in 2023, inflation is the main one for 88% of respondents. Energy costs, for 73%, and geopolitical instability/war in Ukraine, for 56%, round out the top 3”, concluded the AHP.