Algarve Hoteliers Thrilled with Revenue Boost Despite Tourist Concerns

Algarve Hoteliers Report Increased Revenue

The Algarve hotel sector is experiencing a positive trend in tourism, with a noticeable increase in both revenue and overnight stays in August's second half. Despite similar tourist numbers to last year, hoteliers remain optimistic.

Hélder Martins, the president of the Algarve Hotels and Tourist Developments Association (AHETA), stated, "So far, we are satisfied. The second half of the month promises to be better than the first, although the last week typically fills up last minute. We have reasons to be pleased with our preparations for this peak month."

Martins acknowledged that the sector has raised prices by an average of 8 to 10%, reflecting increased costs of goods and services for tourists. He pointed out a slight increase in overall revenue, indicating that Portuguese tourists continue to be the primary clientele, even if their numbers have dipped slightly.

Changes in Tourist Demographics

While there may be fewer Portuguese visitors, Martins emphasized that high-quality hotels in the Algarve primarily cater to national clients who can afford the higher prices. He noted a shift towards improving the tourist product rather than focusing on mass tourism, which tends to lower prices.

Data from AHETA revealed that the average occupancy rate for hotel rooms in July was 83.6%, only 0.3 percentage points lower than in July 2023. The most significant decline was observed among national tourists, but this was offset by an increase in foreign visitors from countries like Sweden, the Netherlands, and Germany.

Addressing Misconceptions

Martins also addressed negative press around the Algarve, citing claims of overcrowding and high prices as misleading. He stated, "This year, we started with claims that there was no space for towels or cars on the beach, which is false. Similarly, the assertion that stays start at 600 euros is also untrue."

He believes there is a campaign against the Algarve, amplified by social media, which he described as detrimental to the region's reputation. João Soares, the Algarve representative of the Association of Hotels of Portugal (AHP), echoed these sentiments, pointing out that speculative news has circulated since June, suggesting more affordable destinations elsewhere.

Despite perceptions of fewer tourists, hotel occupancy rates remain comparable to last year, with some establishments even seeing growth. Soares confirmed that the data does not support claims of a decline in visitors.

“This year, we started by saying there is room for towels and cars, so the Algarve is not deserted, which is a lie.” - LUÍS FORRA/LUSA