The catastrophic predictions of the harbingers of doom, according to which Portuguese tourists were abandoning the Algarve, exchanging it for Spain, as a result of “increasing prices” are not confirmed!
Data from the National Statistics Institute (INE) for July (and August too), on overnight stays by national tourists in the Algarve, in fact indicate a drop of 1,8%, from January to July, corresponding to 44 thousand overnight stays, in relation to 2022, but this does not justify their being used, as some national media did, as a harbinger of an imminent catastrophe. To the point that it even led to some relevant entities expressing their “solidarity” with the region.
But one thing is certain: we cannot ignore that, in addition to damaging the image of the Algarve as a tourist destination, this news had a negative impact on the business world and on public opinion, which, with serenity, we must try to overcome.
Facts:
There was actually an increase in prices in some sectors related to tourist activity as a result, first of all, of increases in costs in the sector (energy, labor, etc.) and market competition dynamics. But this didn't just happen in the Algarve, it also happened in other areas of our country, in Spain and other European tourist destinations.
It is clear that this factor may have changed the options of potential tourists who usually seek out the Algarve and may have induced some to opt for other destinations, or other solutions in the region, compatible with their budgets, choosing more accessible segments, for example, in the accommodation area.
We have reasons to believe that this may have happened, which, after all, may explain the strong presence of national tourists in the Algarve, which was visible.
INE numbers and reality
To better assess reality, it is important to take into account a fact that is generally little known: tourists' actual overnight stays in the Algarve are undervalued in official statistics. The data presented by INE on overnight stays do not reflect the total reality of the region, particularly in relation to accommodation and, more specifically, the so-called local accommodation.
The calculation made by INE includes (officially) only units with more than 10 beds, leaving out units with less than 10 beds, which are the majority. In addition, of course, to “parallel” accommodation, that is, unregistered accommodation.
We are talking about many tens of thousands of Portuguese overnight stays in the Algarve that are not counted and that confirm the strong presence of national tourists in the region, in addition to the INE figures.
The picture is reinforced if we think about non-resident tourists, whose strong presence is attested by the positive numbers of arrivals at the Airport of Faro – 18% more international passengers disembarked, between January and July this year, for a total of 2,6 million, including 160 thousand nationals (31% more/2022), certainly tourists.
It is significant that this region “on the brink of disaster”, the Algarve, recorded the highest bed occupancy rate in the country in August (75%).
Visibility of Tourism in the region
Another important piece of data to assess the tourism situation is the perception of the impacts of tourist activity on the various sectors in addition to accommodation. And the information we recorded in contacts with fellow entrepreneurs is that many economic sectors, not talking about accommodation, generally registered positive developments, generating good results.
We are talking about companies in the commerce and catering sector, the supply of food and beverage products that are highly consumed in the summer, event sectors, fairs and entertainment and sports parks, etc.
And there was even “visual” evidence: the intense circulation on Algarve roads, namely on the EN125 and Via do Infante, which saw growth, in the first nine months of the year, of around 20% compared to 2022. It’s not difficult imagine that many were national tourists.
These elements support the idea that national tourists (and also foreign ones) not only did not abandon the Algarve, but, on the contrary, continued to visit it in force.
Therefore, in addition to the damage caused by the unspeakable agitation, trying to make tourism in the Algarve a “case”, it is important to return to common sense and a sense of responsibility.
Tourism in our country, particularly in the Algarve, has achieved important results and has an extraordinary impact on the economy, therefore requiring a sense of responsibility and common sense. Because there are many weaknesses, not just in the Algarve, and the challenges are immense, a responsible stance is required on everyone's part, not only at regional but also national level.
Tourism is a serious reality
Tourism data in the first eight months of the year confirm not only the strength of the sector in the country's economy, but also the weight of the Algarve, which is at the forefront at national level in the main vectors, being perfectly natural that other regions, starting from a different position, in some cases present higher growth rates.
The expectations for evolution until the end of the year are encouraging, continuing the recovery of 2022, and may even exceed, in many cases, the data from 2019 and projecting the activity for a 2024 that presents itself with positive perspectives (with awareness, of course , which may be called into question by the evolution of the international economic-political framework).
It is a battle that requires the convergence of wills from all regions.
Algarve: the challenges ahead require appropriate instruments
The Algarve, faced with complex situations that have a strong impact on public opinion, cannot continue to act in a dispersed and improvised manner, as has now happened following the announcement of the departure of Portuguese tourists from the region.
An attitude that only favored the perpetrators and particularly worried Algarve citizens, namely businesspeople and in particular young people, about the “future” of Tourism and the region's economy.
The lesson is evident. The lack of not only a regional political structure, but also a strategy capable of responding to the challenges of the future was demonstrated, once again.
The future of the Algarve demands it!
Author Vítor Neto is president of NERA – Business Association of the Algarve Region
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