In 2016, the average occupancy rate in the southern region was 64.4 percent, with overall business having risen by 13.2 percent. This, the association says, shows “a recovery of the prices practiced” by Algarve hotels, which were “crushed” by the onset of the 2008 economic crisis
“For 2017 expectations are of a 3.1 percent growth in occupation and 6.1 percent growth in volume of business, a direct consequence of an average price rise of three percent,” the association said.
Last year, the Algarve’s officially registered tourist accommodation units welcomed 3.9 million tourists, of which around 1 million were Portuguese nationals, which corresponds to over 19.5 million overnight stays.
However, if non-officially classified units are also taken into account as well as second homes and visitors staying with family and friends, AHETA estimates that the Algarve has welcomed some 6.8 million tourists and hosted a total of 34 million overnight stays.
Four-star hotels continue to perform the best, while five-star hotels maintained their occupation rates.
Revenue per available room, or RevPar, was up 17.7 percent, to €46.2 euros a day during 2016, with direct revenue generated by accommodation exceeding €670 million throughout the region, AHETA said.
According to the association, hoteliers believe the good results obtained are essentially the result of “the feeling of instability that has been affecting many of the more direct competitors to the Algarve, namely Turkey” and also a decrease in VAT.
“Among the more negative aspects that characterised the tourist year of 2016 are the increase in airport charges, the rise of oil and jet fuel by around 70 percent, illegal rental of tourist accommodation (...) and the incapacities of the competent authorities to deal with this reality”, hoteliers stressed.
AHETA also said the lack of clarification regarding the EN125 roadwork, the announcement of the launching of municipal tourist taxes, the termination of exploration and exploitation contracts for hydrocarbons, and the lack of manpower to meet business needs during the tourist season were other aspects that marked the tourist year of 2016.
Meanwhile, a high-ranking representative of the World Tourism Organisation has contradicted Portugal’s hoteliers’ widespread perception that Portuguese tourism figures have been growing strongly due to troubles elsewhere in the world.
During a visit to Lisbon, WTO Secretary General Taleb Rifai, said he did not believe Portugal was reaping any benefits from strife in places like the Middle East and North Africa.
He said he believed Portugal was attracting increasing numbers of tourists out of its own merit, arguing that the misfortune of other countries was a global challenge and affected all nations.