For the Algarve, a better use of the tourism sector, effective exploitation of natural resources and a regional administration with greater decision-making power are three of the suggestions published by the Order of Economists in its new 'Guidelines for a Regional Economic Model.'
The study revealing the patently obvious was presented at a regional meeting of the Order of Economists in Faro and analysed the potential of the Algarve's economy against the state is currently is in.
"High and persistent unemployment" and "the weakness of businesses which are dependent on tourism and related activities” were the key findings.
The reason for the study was that none existed. "The region does not have a strategic vision of its economy," so the economists undertook to provide one.
"We thought fit to create a document with strategic guidance for the Algarve's economy. This now is available in the run up to the parliamentary elections so that political parties can debate it," said the Order’s regional head, Pedro Pimpão.
The data came from institutions such as the University of the Algarve, the Algarve Tourism Board, the Commission for Coordination and Regional Development of the Algarve (CCDR) and the many ineffective regional business associations and the economists say the report is a "starting point" in creating a all encompassing strategy for the region's economy.
The study points out that the tourism sector has potential and can be developed with the better use and certification of regional products, increased promotion campaigns, a focus on cruises, and on business congress tourism.
The exploitation of resources, particularly of the sea, and the incorporation of technology are outlined as two areas that can be developed by creating conditions for agribusiness, incentives to develop ports and studying the likely affects on the marine ecology of oil and gas exploration.
The document discusses the creation of a regional administration to promote inward investment for corporate head offices through taxation and incentives.
The report concluded that the main difficulties for the Algarve lie in its high unemployment level and the fragility of its business community which is not very diversified and is marked by many individual enterprises in construction, wholesale and retail, hotels, restaurants, real estate, lettings and services provided to businesses related to tourism.
One aspect of the report is interesting, the call for more devolved regional management, although relying on Lisbon to release control to the 'despised' Algarve is a call often made and always ignored.
