Buoyant Algarve tourist numbers, but at what price?

Good figures so farThe Algarve region registered 200,000 more overnight stays than last year by the end of June, according to the ubiquitous president of Algarve Tourism, Desiderio Silva, who estimates that by the year end there will have been 800,000 more overnight stays in the region than in 2012.

This impressive second half boost will have to come largely from the much vaunted winter tourism market.


"This year so far we have recorded an increase in overnight stays and it is also very interesting in terms of revenue, according to the figures that the industry has given us," said Silva, not giving anything away but adding that the summer season ended with a positive overall balance despite many hoteliers complaining that despite good occupancy levels this summer their overall income has in fact dropped due to competitive pressures from other summer destination markets and VAT at 23% pushing prices down and margins down further.

The Algarve target of 800,000 overnight stays by the year end is supported by the June figures, but tourism seasonality is a battle that the region has failed ever to tackle successfully.

Algarve Tourism and Tourism Portugal are working on a programme to boost winter tourism with questionable roadshows planned across Spain and some good e-marketing and targetted press advertising in key European markets.

Golf is struggling to raise its game and income figures are flat as the Algarve is now seen as expensive compared to excellent packages offered in other countries. The increase in VAT on golf and on eating out has not helped the Algarve's appeal. Desiderio Silva believes in 'enhancing the influx of golfers to the region' but offers no hints as to how he is to address this stagnant market.

Golf numbers are not much higher than last year despite some positive signs, Silva noted, stressing that sports tourism and nature are segments that are gaining size and Algarve Tourism wants to increase these with the promotion of the Algarve countryside.

"The Algarve’s natural areas are undiscovered and offer fantastic opportunities for hiking, bicycling, bird-watching, heritage, culture and gastronomy. We are enhancing these products to complement our strong suit, which is the summer," he concluded, failing of course to mention the impact of VAT on the competitiveness of the Algarve’s tourism offers, the disincentive of having a tolled road across the region and the widely publicised threats to the Algarve’s natural ecological habitats from large and needless building projects such as that proposed near Lagoa dos Salgados, Silves.