This slide below shows the ranking of the Algarve’s main tourism markets last year. The UK is still far in the lead with solid growth of 8.6% and Germany still in second place. The biggest growth of all the main markets is from France.
It may seem like an overstatement but the numbers don’t lie. Tourism is at an all-time high in the Algarve. Hotel bookings and revenue continue to break records year after year, there are more flights at Faro Airport than ever before and the sector is in an “excellent position” to keep growing in 2017. With another extremely busy Easter around the corner, the Resident met with the Algarve’s tourism boss Desidério Silva to discuss his plans to keep this trend going.
“The Algarve’s (tourism results) have been shattering for the ‘prophets of doom’ who a few years ago said the region was stagnant and without ideas. The truth is that the Algarve is doing extremely well, it has been innovative and our goal is to keep growing,” Silva told us, alluding to the recent “record-breaking” years the region has celebrated.
As he pointed out, “unprecedented numbers were registered in 2016 in the hotel industry, at Faro Airport and in the number of golf rounds played.”
New flights are being announced all the time, with some of the latest linking the Algarve to Stockholm (Sweden), Vienna (Austria), Budapest (Hungary) and Dresden (Germany).
In fact, the number of aeroplane seats offered this year is almost “one million” more than 2016, Silva told us.
“But we cannot rest on our laurels. There is still much to do and improve,” he added.
A clear goal is to establish the Algarve as a year-round tourism destination. In other words, to show holidaymakers that while the region’s beaches and weather are indeed “amazing”, there is so much more to discover outside of the summer season.
The potential for “nature tourism,” for example, is huge.
Successful events such as the Algarve Nature Week and Sagres Birdwatching Festival prove there is a “whole new tourism niche to be explored” that can help the region thrive during the so-called low season, which has been growing around 70% according to the latest statistics.
Attracting “active holidaymakers” such as cyclists is another objective, as the region boasts a number of excellent trails namely on the west coast (Rota Vicentina).
“For years, the Algarve was well promoted as a beach destination to be enjoyed in the summer. But there were other assets that were not structured or promoted the way they should be. That has been one of my goals since I took this job – to show that there is a ‘whole other Algarve’ to be discovered”.
“We want to make the Algarve sustainable. It cannot live off three or four months. I want there to be employment practically all year long, and for booking levels to increase from last year’s 65% to 75% this year.”
This wave of optimism is backed by several other factors. Just last week, the Resident reported that “consumer confidence” is at a 17-year high following the Bank of Portugal’s upward review of the national economic recovery.
And more confidence means more people willing to spend money on a holiday trip, especially this Easter.
Several hotels in the Algarve are “completely booked” for the holiday season, Desidério Silva told us, while others are expecting to have around 80% of their rooms occupied. And luckily, the weather is also set to be “very pleasant”.
This is great news as holidaymakers will have a lot of entertainment and cultural events to choose from. As Silva explained, tourism authorities have been working hard to make sure the Algarve “always has something interesting to offer”.
An example is the ‘365 Algarve’ programme, launched last October designed to boost the region’s cultural agenda with around 1,000 events taking place all over the region.
It has been subject to a lot of criticism – some of which Desidério Silva believes is justified – for failing to boost winter tourism.
In February, hoteliers pulled no punches in their appraisal of the programme, which they vehemently slammed for lacking events big enough to pull holidaymakers to the region.
“There are certainly some flaws, but I think it’s an idea that we have to stick with.
“I agree that it needs some bigger events, but we know how much these cost. The truth is that people used to say that you had to go to Lisbon to see shows and other cultural events, but things are different now. What we need to do is improve the promotion of the events and work together in a better way with the region’s hotels to spread the word about the programme,” Silva said.
It’s not all good news
While Desidério Silva emphasised the good things happening in the Algarve, he admitted the region continues to be plagued by several issues.
The most pressing include the anger about motorway tolls, the never-ending renovations on the EN125 road, the threat of gas and oil exploration, the destruction of fishing communities on Ria Formosa and the threat of feldspar mining in Monchique.
“As the chief of tourism, it is my job to oppose anything that may complicate the life of not only those who visit us, but those who live here. This includes everything from oil exploration to an incomplete EN125 road, an outdated railway line, and the issues related to the A22 tolls”.
The lack of a railway link to Faro Airport is another major issue highlighted by the tourism boss, as well as the region’s chronic lack of support from the state.
“For years, governments have not been generous to the Algarve given what it produces for the country. We should be better supported given that we produce so much, and because of this we often have trouble developing our plans to provide more visibility and notoriety to the region.”
Giving the region more power and autonomy, Desidério Silva believes, could be a solution.
“We do not have enough political strength or MPs, we do not have enough voters, and we have become a region that contributes to the country’s development but is never compensated for its efforts.”
Another issue is the lack of “qualified” human resources in the Algarve.
“We have got a lot of positions in the hotel and tourism industry to fill, but the region’s hotel schools cannot train enough people to meet the demands. This is an issue we are trying to tackle.”
France overtakes UK as Portugal’s top market by revenue
Meantime, some huge news has been revealed by Portugal’s Secretary of State for Tourism.
France has overtaken the UK as Portugal’s top tourism market in terms of revenue, Ana Godinho said at a lunch-debate organised by the British-Portuguese Chamber of Commerce (BPPC) at Hilton Vilamoura on Tuesday, April 4.
It is the kind of revelation that proves the emergence of France as one of the country’s most important and developing markets.
But the good news did not stop there.
Godinho said China is also on the rise as a tourism market for Portugal, as locals are starting to learn more about the country and what it has to offer and, with new direct flights from China to Portugal about to be introduced, further growth is expected.
The tourism authority has been actively promoting Portugal around the world with workshop events in countries such as India, which has resulted in the sealing of deals to shoot at least three Bollywood films in Portugal.
Another growing market is the US. Since January, the number of American holidaymakers is up 40% thanks largely to the increase of TAP flights between the two countries.
Interestingly, holidaymakers from South Korea are starting to travel to Portugal, “as the country has a significant catholic population, creating an interesting religious tourism market for destinations such as Fátima”.
Last but not least, Godinho guaranteed the country is not worried about the effects of Brexit. The UK continues to be a fundamental market for Portugal, accounting for 24% of the country’s hotel bookings. And there’s room for it to grow even more.
In fact, Portugal only accounts for 3.5% of the UK’s outbound tourists, she said, proving there is still a lot of untapped potential.
BY MICHAEL BRUXO michael.bruxo@algarveresident.com
Article by kind permission of Portugal Resident
