New Year's Eve in Albufeira had a direct economic impact of more than 15 million euros

Study was carried out by the University of Algarve

The Municipality of Albufeira revealed this Thursday, May 23rd, the results of the “Evaluation Study of the Impacts of the New Year 2023 Event on the Economy of Tourism and Image of Albufeira”, which estimates that the event has generated an “economic impact total direct amount, worth 15.658.031 euros». 

The study, coordinated by Maria João Custódio (Destination Marketing and Communication) and Fernando Perna (Regional Economy), was requested by the Municipality of Albufeira from the University of Algarve and shows, according to the municipality, that this event brings «excellent results for the municipality with regard to local economic development and image of the territory/destination».

The methodology adopted was mixed in nature, qualitative and quantitative methods, and was supported by data on demand flows, supply characteristics and organizational information provided by the Chamber. In addition, a questionnaire was sent to event participants and companies operating in the municipality.

In the questionnaire, which included 32 or 22 questions grouped into two groups, for visitors and companies, it is stated that «the results are clearly in line with the spirit and objectives that are the origin of the New Year's Eve celebration in Albufeira. In fact, among other possible assessments, there are references of greater importance in the composition of the perceived image of the event, namely, organization, light, fun/party, lively, spectacular, different and music».

 

 

The study also revealed that «it is possible to estimate a total direct economic impact, worth 15.658.031 euros»,
ensuring the economic-social profitability of the event (investment vs. return), but also «produces
interesting multipliers in terms of the origin of expenses", given that 97% of this value is generated by non-residents in the municipality, the majority of whom are nationals.

The investigation indicated that the event expands the tourist season in time, generating “tourist flows in a period opposite to the high summer season, with positive consequences in terms of profitability of investments and equipment, public and private, related to the management of the territory and the sectors of accommodation, restaurants, commerce, transport and entertainment, ensuring that «the destination was sought after on these dates because the event exists» (76% of visitors).

José Carlos Rolo was very satisfied with the results obtained and stated that «these data prove the success and importance of New Year's Eve in Albufeira, not only for the local economy, but also as a way of promoting and disseminating the good image of Albufeira beyond borders».

The Mayor of Albufeira added that «the event benefits all, or almost all, sectors within the municipality and that in addition to already being a tradition, there is now evidence that the investment made by the Executive is considerably advantageous for Albufeira».

 

 



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