Algarve's Economic Congress Tackles Seasonal Dependency with Bold Diversification Plans

Diversifying the Algarve's Economy

A push to diversify the Algarve's economy, which is heavily reliant on tourism, was a key theme at the 1st Algarve Economic Congress held in Faro. Speakers emphasized the need to combat the region's seasonal fluctuations by broadening economic activities.

The Challenge of Seasonality

Economist and event curator Miguel Frasquilho highlighted that the Algarve faces a "demographic paradox," with around 470,000 residents but annual tourist numbers that far exceed this. He stated, "This seasonal pressure represents both an opportunity and a challenge, requiring innovative solutions for mobility, housing, healthcare services, and environmental protection." Frasquilho argued that the region must diversify beyond tourism, pointing to sectors like agribusiness, the maritime economy, and clean energy as potential growth areas.

Tourism Sector Insights

André Gomes, President of the Algarve Tourism Board, noted efforts to diversify tourist markets, such as targeting North American visitors, and mentioned that investments in nature and cultural tourism have helped reduce seasonality. He cited the increasing number of hotels operating year-round as a positive sign.

Mário Azevedo Ferreira, President of the Algarve Hotels and Tourist Enterprises Association, acknowledged that seasonality is inevitable but can be mitigated. He revealed that 75% of hotel revenue comes from July and August, driven by the sun and beach model. Ferreira advocated for more golf courses to ease the issue, though he criticized current legislation as a barrier and called for reduced costs and more supportive authorities.

Social and Infrastructure Concerns

António Miguel Pina, President of the Algarve Intermunicipal Community, expressed concern that while the region's wealth has nearly doubled over the past 20 years, social development indices have not kept pace. He lamented the lack of affordable housing, stating that developers avoid building for local budgets and urged public policies to ensure accessibility.

José Apolinário, President of the Algarve's Regional Development Commission, stressed the need for enhanced coordination in public policies, regardless of election outcomes. He emphasized improving workforce qualifications and highlighted the Algarve's leadership in mobilizing funds for water policies, calling it central to regional development.