Algarve Tourism Warns of €5 Million Underfunding Due to Unrecorded Local Lodgings

Algarve Tourism Faces Funding Crisis

The Algarve region is facing a significant funding shortfall of approximately €5 million due to the lack of official accounting for local lodgings. The president of the Algarve Tourism Region (RTA), André Gomes, revealed that in 2023, the Algarve may have had around eight million unrecorded overnight stays in local accommodations, which are not included in the National Institute of Statistics (INE) figures.

Unaccounted Stays Affecting Finances

Gomes emphasized that this situation is detrimental, stating, "The Algarve could have around eight million overnight stays that were not recorded for INE purposes and which do not contribute to regional tourism funding. This is extremely critical and negative for the Algarve."

Local Accommodations Overlooked

The Algarve has over 43,700 registered local accommodations, with about 42,800 having fewer than 10 beds. These smaller lodgings are not accounted for in national statistics, resulting in the neglect of approximately 143,000 beds in the region, which constitutes 90.5% of the total local accommodation beds. This discrepancy leads to underperformance assessments based on insufficient data.

Financial Implications of Underreporting

According to the new Strategic Marketing Plan for Algarve Tourism (PMETA), the region is being financed based on only 20.4 million recorded overnight stays by INE for 2023, whereas the actual figure is close to 29 million. Gomes pointed out that this results in a potential loss of €4 to €5 million in funding for the region, which operates on an annual budget of about €10 million.

Strategic Goals for the Future

The PMETA outlines strategic actions and goals until 2028, aiming to position the Algarve as a sustainable and competitive tourist destination. The plan includes objectives such as increasing competitiveness, diversifying markets, and committing to sustainability. Gomes stated that the region aims for a 10% increase in passenger movement at the Gago Coutinho International Airport, 4.1% growth in foreign overnight stays, and 12% rise in total revenues by 2028.