Algarve hoteliers pleased with increased revenues

Algarve hoteliers say they are happy with revenues from holidaymakers this August despite some pundits suggesting the amount of space on beaches showed the holiday region was deserted.

“So far we are satisfied. The second fortnight promises to be better than the first, with the exception of the last week, which only fills up at the last minute. But, we have reasons to be satisfied with the preparations made for this August, which is the peak” of the season, summarised Hélder Martins, president of the Association of Hotels and Tourist Enterprises of the Algarve (AHETA).

The leader of the largest hotel association in the holiday region acknowledged that the sector has increased prices by an average of between 8 and 10%, which corresponds to what he considers to be the increases in products purchased to serve tourists.

“Is there more money in the hotel industry? There is a slight increase in revenues,” said Helder Martins, who said the association had not detected a sharp drop in Portuguese holidaymakers, who continue to be the main customers.

According to the regional hotel association boss, even if there were “fewer Portuguese in the Algarve”, “Portuguese customers are the number one customers at our excellent hotels and they are able to pay the prices we’re offering.”

Hélder Martins adds that the Algarve is taking a road towards “repositioning (the region) away from mass package holiday tourism by improving the product” which implied higher prices.

“Last year, we saw the same situation. In July, the number of Portuguese bookings were down slightly, and then in August they remained the same. This year, Portuguese bookings also dropped in July, and we will have to wait for the August results at the end of the month”, he said.

According to AHETA’s monthly data, the average occupancy rate per room in hotels in the Algarve was 83.6% in July, a rate only 0.3% lower than that recorded in the same month in 2023.

The biggest fall in tourist numbers were Portuguese nationals (-2.3%), which was offset by travellers from abroad, namely Swedes (+0.8%), Dutch (+0.4%) and Germans (+0.3%).