OE: Regional tourism entities receive the same 16,4 ME of VAT revenue

From VAT, they will receive the same amount that has been included in the budgets for the last seven years

Regional tourism entities once again receive 16,4 million euros (ME) in VAT revenue, plus 4,4 ME from Turismo de Portugal, according to the proposed State Budget law for 2024 (OE2024).

According to the document, delivered to parliament on Tuesday, it is expected that 16.403.270 euros will be transferred to regional tourism entities as VAT (Value Added Tax), the same amount that has been recorded in the budgets of the last seven years.

The amount of 16,4 million euros for the development of regional tourism “is transferred from the budget of the State subsector to the Portuguese Tourism Institute”, reads the Government's proposal.

The OE2024 proposal also determines the transfer of a budget of up to 4,4 ME from Turismo de Portugal to regional tourism entities, 900 thousand euros more than in the previous year.

This amount is intended for regional tourism development, strengthening the attractiveness and promotion of interior territories, in conjunction with the national strategy for tourism policy and promotion of the destination.

The OE2024 proposal also includes the transfer of a budget of up to 11 million from Turismo de Portugal to AICEP – Agency for Investment and Foreign Trade of Portugal, intended for the development of actions to promote Portugal abroad.

The Government presented the 2024 State Budget on Tuesday, which revises the growth of the Gross Domestic Product (GDP) upwards in 2023, from 1,8% to 2,2%, and downwards from 2,0% for 1,5% next year.

The unemployment rate is revised upwards for next year, now forecasting 6,7% in 2024, compared to the previous 6,4%.

As for inflation, the executive is slightly more pessimistic, predicting that the rate will fall from 8,1% in 2022 to 5,3% in 2023 and 3,3% in 2024.

The proposed law also foresees the best budget balance in a democracy, with 0,8% of GDP in 2023 and 0,2% in 2024.