Algarve bouncing back

9/5/2009

A combination of statistics and surveys have this week indicated that the Algarve can look forward to the coming summer with reserved optimism. Airport passenger figures appear to be recovering, coupled with a marked improvement in hotel occupancy. Furthermore, a British study has put Portugal as the second cheapest destination in the Euro Zone for Britons to visit and it would be the cheapest, if it were not for the pricey cost of sun cream.

Despite the crisis, it appears a stop has been put to the huge drops in hotel occupancy rates and airport passenger figures.

Hotel occupancy rates improved in April to 49.1 percent, while Faro airport passengers numbers, having recorded successive drops of at least 20 percent in each of the first three months this year when compared with the same periods in 2008, staged a dramatic improvement in April where unofficial figures show a drop of only 1.6 percent when compared with same month last year.

“Crises have their advantages, and it has forced us to rethink many aspects of tourism”, explained Dr. António Pina, chairman of the Algarve Tourism Board (ERTA) when confronted on Thursday by The Portugal News with what some observers have deemed to be the start of the sooner-than-expected recovery of tourism in the Algarve.

The ERTA chief revealed that sectors linked to tourism in the Algarve have revealed new-found “dynamism” in what he believes could be the recipe to bail the tourism-reliant region out of the current crisis.

Dr. Pina added: “The Algarve has its cake, which is the sun, the sea and golf. But we have been working on other areas to boost tourism. Wine routes, excellent bird-watching, nature walks are but some of the features the region boasts to attract more tourists”.

Meanwhile indications are that the summer will see no drop in the number of tourists to the region, with price cuts being practised by resorts across the region.

A study by the UK’s Post Office Travel Services this week put the Algarve back into the world’s top ten most competitive destinations for British tourists. Even more striking was that it was placed second in Euro Zone.

Explaining its findings, researchers said while attention has been focusing away from the Euro Zone for holidaymakers on a strict budget this summer, price cutting in some of the most popular Euro Zone destinations mean that the UK’s traditional favourites may cost less than expected, with the Algarve being highlighted in the study.

Sarah Munro, Post Office head of travel services said: “The Euro Zone has taken a bashing this year but our survey suggests that tourist outlets in many resorts are taking dramatic steps to encourage tourists. Despite the weak pound, this means that UK tourists who shop carefully could find that they get more than expected for their money.”

At around £42 for 10 holiday items, including drinks and meals, Bulgaria’s Sunny Beach resort was two and a half times cheaper than Antigua - the most expensive destination surveyed. Two other holiday spots outside the Euro Zone, Turkey and Croatia, joined Bulgaria as Europe’s cheapest options for a bargain break.

Under the ten items surveyed, the cost in Portugal amounted to £67.47, only 39p more than in Spain. However, taking away the cost of sun cream, which is almost £2 more expensive in Portugal than in Spain, the Algarve would be the cheapest summer destination for Britons in the Euro Zone by some margin.

France is the most expensive Euro Zone destination in this year’s barometer - costing £11.22 (+16.7 per cent) more than Spain. And one of the newest Euro Zone entrants, Cyprus, joins France as the highest priced European holiday destinations. By contrast Malta, which, like Cyprus, joined the Euro Zone in January 2008, has held its prices steady and emerges as third cheapest after Spain and Portugal.

Ironically the biggest price hikes were in the long haul destinations, highlighted as great value in previous surveys. The same 10 commodities surveyed by the Post Office have risen by 53.7 per cent in Thailand - which still remains the cheapest long haul destination - and by 46.9 per cent in Egypt.

Meanwhile, hotels in the Algarve reported improved occupancy rates after a dreadful start to the year.

After hitting all-time lows in January and February, March and April showed some improvements, with April bouncing back to report figures similar to those recorded the same month last year.

According to figures sent to The Portugal News by the Association for Algarve Hotels and Resorts (AHETA), occupancy was at 49.1 percent, down only 4.6 percent.

Three-star hotels reported an increase of 26.5 percent in occupancy rates, while four and five star hotels fell, which is explained by money-conscious tourists accepting a reduction in quality in exchange for significant cash savings.

AHETA president Eldérico Viegas told The Portugal News on Thursday that summer occupancy rates will probably be on a par with those recorded in 2008, mostly due to the cut in rates being practised across the country.

Mr Viegas added that the current crisis is what he termed “a transitional period” and one in which the Algarve will have to fight to keep regular tourists, especially those from Britain. He further called on hotels to accompany prices being asked in other rival destinations, and to not rely solely on the “affinity” Britons have for the Algarve to keep occupancy rates, and prices, up.

Source The Portugal News