Algarve hotel occupancy continued to rise in October with an overall rate of 60.9%, a full 7.9% above the 2012 figure for the Algarve’s battered hotel sector. This maintains the positive growth seen over recent months.
Hotels were 22% down on the September occupancy figure but this is predictable with staffing and stock levels adjusted accordingly.
The Association of Hotels and Resorts in the Algarve was pleased to see its members with plenty of tourists but issued a word of warning over income levels with many hotels cutting room rates to the bone in order to keep staff working and their bars full.
The national data issued yesterday showed that high occupancy has been at the expense of profit. (See: http://www.algarvedailynews.com/news/418-summer-hotel-numbers-up-but-revenue-drops)
The Algarve’s welcomed 58% more German tourists and 32% more French tourists this October than a year ago, which helped balance out the near collapse of the internal domestic market which saw a fall of 20%.
The largest increases in October were seen in Portimão and Praia da Rocha up 14.0%, Lagos and Sagres up 12.7%, and VRSA and Monte Gordo up 9.6%.
The highest average occupancy rates were highest in the Vilamoura, Quarteira and Quinta do Lago at 66.8 %, followed by the Albufeira area at 65.6 %.
