According to a report by ECO, tourism numbers in the Algarve was below expectations and in June it was the only region in the country that still recorded overnight stays below 2019.
The drop was recorded essentially by the Portuguese, however, the Associação da Hotelaria de Portugal (AHP) highlights that the “reduction is being offset by the increase in average prices”, while the Associação da Hotelaria, Restauração e Similares de Portugal (AHRESP) stresses to ECO that the Algarve could to be “moving away from the image of a cheap destination” and that this can only be achieved with “less pressure from occupation levels”.
In June, the Algarve recorded 2.26 million overnight stays, remaining the main tourist region in the country in the summer. Even so, that number is 7% lower than in June 2019, before the pandemic crisis. While all other regions have already surpassed the levels recorded before the pandemic, the Algarve region continues to lag behind, according to data released by the National Institute of Statistics (INE).
This drop in overnight stays in the Algarve region is being offset by the average prices charged “which have risen substantially”, says Cristina Siza Vieira, executive vice president of the Associação da Hotelaria de Portugal (AHP), who considers that the “balance of the first half was , in fact, frankly positive”.
An opinion also shared by the general secretary of AHRESP, who emphasises that, despite the decrease in the absolute number of overnight stays in the Algarve, the “increase in prices means that the sector is above revenue values in relation to 2019”. For Ana Jacinto, this indicator “could demonstrate that the Algarve region is investing more towards increasing the quality of its offer, naturally reflected in the price”.
You can still find some good deals if booked in advance but for most prices have surged absurdly. This is exactly the sector of the economy that brings less added value to the Portuguese GDP and shouldn't be so instigated. Internationalization sure, not so tourism oriented would be economically interesting.
By Diogo F. from Lisbon on 13 Aug 2023, 23:26
Unfortunately, price doesn’t equal quality! The Algarve is still so far from a premium destination it is laughable. Rising prices will drive away the beer and beach crowd for sure, but as for attracting those who are used to premium destinations in Latin America and Asia…not so much. Once bitten, twice shy!
By Stuart Wood from Algarve on 14 Aug 2023, 08:40
Rising to a `Premium Destination ´ can only be good for the Algarve. For years now we have been dragged ever more downwards to become a cheap place for `lager louts and camper vans´ in ever greater numbers. The introduction of AB&B has only made it worse. The Algarve was once considered an excellent choice for holidays, now , the selective people, both Portuguese and Estrangeiros choose other areas for their vacations. We are left with the lager louts and noise makers.
By Ernest Reavill from Algarve on 14 Aug 2023, 15:54
Personally speaking I would like to see it become more premium and there is nothing wrong with that.
By Richard Coombe from Algarve on 14 Aug 2023, 19:27
In the whole of Portugal there is not a single area larger than a few blocks that could be considered "premium". Maybe that is the case for a few "gated" communities, but that's about it. So far Portugal is mainly selected because it is cheap and has great surf.
By Tom from Lisbon on 15 Aug 2023, 07:13
I believe that while the Algarve may be experiencing rising prices, the quality of the experience doesn't seem to match the premium status they are striving for. Prices might be surging, but it's important to consider whether the overall value and standards are being upheld. It's concerning if the focus is primarily on financial gains rather than providing a truly premium experience for visitors.
By Pat from Other on 15 Aug 2023, 13:52