Algarve booms as a 'safe' destination

Tourists are flocking to Portugal and Spain as terrorist attacks in France and the failed coup in Turkey limit holiday choices to destinations perceived as ‘safe.’

Portugal’s Minister for the Economy, Manuel Caldeira Cabral commented that “Portugal always shows up as a safe destination," with the national tourism board working to increase occupancy in the out-of-season winter months.

“Next year, we are going to see less concentration in the peak season and a more even spread of tourists not only across the time frame of the year, but also across the country," said Cabral in an interview with Reuters.

While Portugal and Spain’s increases are welcome additions to a sector that represents 10% of GDP, Turkey and France have felt a drop in tourism income of 40% this year.

Cabral said that security measures have been enhanced at points of entry and at resorts with a seasonal increase in medical cover in the Algarve, adding that an increase in credit for hotel projects, a free wifi network in historic centres and a planned simplification of Alojamento Local legislation should help to increase the quality and ‘sustainability’ of the tourism sector.

At the Conrad Algarve Hotel in Quinta do Logo bookings are well above expectations, according to the popular director Joachim Hartl, who commented that, “one of the big factors of this destination is safety and security. This has helped increase tourism overall to Portugal,” which surely will benefit Portugal in the off-peak season.

Many private rental properties are booked through an extended season this year with late summer breaks extending the season beyond the traditional summer period.

The failure of the Alojamento Local legislation to corall the booming private rental market as a taxpaying centre is a lost opportunity for the treasury which seems unable to dedicate sufficient tax personnel to ensure compliance as an estimated 80% of properties remain outside the tax net.

The refurbishment of Faro airport remains a sticking point with insufficient SEF staff at passport control at peak periods. The airport, now controlled by French group Vinci, will be relaunched in 2017 with more space and more 'retail opportunities' for passengers. Until then, travellers generally have put up with the construction work, seeing it as a temporary inconvenience.

Government plans to super-impose an oil and gas industry on the Algarve region, renowned for its pristine beaches and clear waters, have met with spirited local opposition with onshore drilling currently suspended and legal challenges already lodged by the region's mayors in order to suspend offshore activity while the highly suspicious oil contracts are investigated fully.

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