Algarve looks to maintain residential tourists

14/2/2009

A number of prominent figures were drawn to a conference/debate on what lies ahead for residential tourism in the Algarve, organised by Faro International Airport and hosted at a packed conference room on Tuesday by Vale do Lobo.

António Pina, chairman of the Algarve Tourist Board, explained that “residential tourism has been hardest hit” by the economic downturn, while also warning there was an excess of supply in this sector in the Algarve.

He explained that dwindling tourist numbers will inevitably result in a drop in the number of so-called residential tourists, as, according to António Pina, “If you’re scared of going on holiday, then you will most certainly be reluctant to purchase a second home.”

However, he expressed the belief that the slowdown will only be temporary, at least as far as tourism in the Algarve is concerned, while it was recalled by fellow speakers that despite house prices having fallen across the country, latest figures show the Algarve has bucked that trend and prices have actually risen in the region.

This is a stark contrast to Spain, were the average home is now worth 20 percent less than it was a year ago, and where 1.5 million newly built homes now stand empty with no buyers in sight. This, coupled with the enormous difficulties being faced by British expatriates in Spain who have fallen foul of a lethal combination of red tape and unscrupulous builders and estate agents, appears to have generated some hope in the Algarve, with speakers focussing on the progress made in recent years in the property market where real estate wrangles involving prospective and existing bona fide foreign home owners are the exception, and not the rule.

Another member on the panel of speakers, former State Secretary of Tourism Vítor Neto, was critical of Portugal’s inability to increase the number of tourists this past decade.

Stressing that direct ‘rivals’ such as Greece have seen the influx of British and German tourists increase by 3 million since 2001, Portugal has seen zero percent growth in this period. Even Croatia saw the number of European tourists rise by three million over this period, while Turkey saw its numbers leap from 13 to 25 million.

A key component of residential tourism and ensuring tourists visit the Algarve, is an airport, and it was revealed at the conference that the capacity at Faro will be increased from six to nine million in the next two years.

While some discrepancy exists as to the number of Britons owning second homes in the Algarve, the chairman of the Association of Algarve Hotels and Resorts, Eldérico Viegas, says around 80,000 have second homes in the region, and are joined by a further 20,000 other nationalities, mostly European.

António Pina, meanwhile, stressing that the truth concerning the extent of the crisis should always be told in these testing times, said, his motto, which he hopes will extend to other interested groups in the Algarve is to “bury doubt and sow hope”.

With courtesy of the Portuguese News