Tourism: the worst is yet to come

All sectors of the tourism industry need to work together in 2009 if they are to survive the global financial crisis that is affecting tourism in the Algarve.

This is the message being given to all entities involved in tourism in the end of year report by industry specialist AHETA, the Algarve hotel and resorts association. Figures compiled by AHETA throughout 2008 reveal that in general terms, all tourism indicators were lower last year when compared to the same period in 2007.

From airport passenger numbers, down 0.4 percent, to bed occupancy levels, which have fallen by 5.7 per cent, statistics show that 2008 was the first year since 2005 to not see consistent consecutive annual growth in the tourism sector.

The only winner was golf and although growth in the number of holes played on average per year was slow, there was an increase. This is partially accounted for by the increase in golf courses in 2008, with the opening of three new 18 hole courses, two at the Amendoeira resort near Silves and another at Quinta do Vale, while the course in Castro Marim was also upgraded from a nine hole course to 18 holes.

There are now 38 courses in the region and the popularity of golf in the Algarve, boosted by events such as the Portugal Masters, was evident with figures showing that an average of more than 91,000 rounds of golf are played every month in the Algarve.

Numbers may be down but general trends in tourism remained the same in 2008 as in previous years. Brits remain the top visitors to the region while the number of Germans coming to the Algarve is still dropping, as it has been since 2000 following the adoption of the Euro by Germany in 1999.

Albufeira, Vilamoura and Praia da Rocha are still the areas with the highest number of beds available to tourists, comprising 70 per cent of the total number available in the region.

New areas, however, are proving to be popular tourist destinations with hotel occupancy in Monte Gordo and Vila Real de Santo António having the highest occupancy levels of the entire region with a peak of 78 per cent.

The tourism industry has felt the effects of a double whammy of problems in relation to occupancy numbers. Not only are there fewer people coming to stay in the region, numbers in 2008 were down by 5.7 per cent, but tourists are also staying for less time, with UK visitors only remaining in the region for an average of seven days.

The overall drop in the duration of time spent in the Algarve went from an average of 5.8 days in 2007 to 5.4 days in 2008.

These statistics, however, must be seen in relation to the general world tourism climate, say AHETA, who believe that “considering the current global economic crisis and the weak state of the Pound, the situation could have been much worse”.

The Algarve appears to have escaped major problems in the tourism industry in 2008, despite reduced numbers, but AHETA is predicting that 2009 will be a difficult year for all involved.

“We are now facing times that will require new solutions, innovation and a touch of daring. We need new and more partnerships uniting all parties in tourism and are calling on the government to help the predicted downturn by offering incentives, increasing marketing and easing tax burdens in the industry.”

Times may be hard across the Algarve but the building of a new airport in Lisbon, the opening of the Algarve Motor Park and the enlargement of the Schengen agreement to allow further freedom of movement within Europe will all hopefully hold back a downturn of devastating proportions to the tourism industry in the Algarve in 2009.