The figure is, the Algarve’s largest hotel association AHETA said, closer to numbers recorded between 1999 and 2001, which are known for being the ‘golden years’ for Algarve tourism, when the benchmark was around 70 percent.
2017 also registered a two percent growth on 2016.
According to AHETA, expectations for 2018 are of consolidation.
“No increase in occupancy rates is expected, although turnover may increase slightly, mainly driven by the increase in prices recorded in previous years”, the association explained.
AHETA said 2017’s good results “are due, in particular, to an increase in demand from the German and Irish markets”, as well as other growing external markets, such as Poland, Sweden, Belgium, Switzerland, Italy, Denmark and Canada.
It said collective growth in less obvious markets along with growth in key markets has helped compensate for a drop in what is traditionally the Algarve’s main tourist supplier, the UK, which dropped by 8.6 percent.
The domestic market also grew, by 1.2 percent, and jointly with other emerging sources made it possible, “for the first time in the history of tourism in the Algarve, that there were positive results despite the downturn in the British market”.
The blossoming occupancy was noted throughout the region’s units, with the exception of 5-star hotels, and in the area of Loulé/Vilamoura/Quarteira/Vale do Lobo/Quinta do Lago.
“The majority of l the geographical areas of the Algarve and most types of establishments improved average occupations during the year, with sales volume growing at a faster rate than occupation, which indicates a recovery of the prices practiced, which were greatly affected in the past by the 2008 global economic crisis”, AHETA said.
The association further revealed that gross revenue resulting from invoicing “amounted to more than €1 billion, of which €760 million related to accommodation”.
However, it stressed, the devaluation of the British pound, an increase in jet fuel and bankruptcies of air carriers Monarch, Lauda Air and Air Berlin have all had a negative impact on the region, “along with losses caused directly to Algarve hoteliers, consubstantiated in overdue and unpaid billing to the amount of more than €7 million.”
“In summary, in 2017, the Algarve received 4.2 million tourists, of which 1.1 million were nationals; generating a total of approximately 20 million overnight stays.
“On the other hand, and considering all types of accommodation, registered or not, more than 7.1 million tourists, or 35.7 million overnight stays, make the Algarve the largest and most important national tourist region. The Algarve was also the main net contributor to the country’s ‘Travel and Tourism’ sector, with more than €15 billion”, AHETA concluded.