The December 2013 increase in hotel occupancy in the Algarve, compared to 2012, was not reflected in a 'proportional increase in the volume of business generated,' according to the prophet of doom from the Association of Hotels and Resorts in the Algarve (AHETA), Elidérico Viegas.
“The average occupancy rate per room in December 2013 was 26.1% representing an increase of 4% compared to 2012 but cash turnover increased by only 2.2% - a common trend in recent years,” said Elidérico Viegas.
The 'glass half empty' official did consider the increase in occupancy as a good thing, as the figures have been static for the last 5 years, but added that the figures were taken only from the hotels that were actually open last December and not from the many hotels that closed for the winter season.
"This trend of 4% to 5% growth which we saw through 2013 gives us hope for growth in 2014," added Viegas who preferred to dwell on the closed hotels rather than the positive figures from the open ones.
The industry has changed and the AHETA's president is living in the past. The Algarve has a surfeit of good hotels but more developments are planned and will simply increase supply at the expense of AHETA members.
The market is what it is and there is an adequate supply of beds to cope with foreseeable increases in hotel tourist numbers. If his members see fit to close their hotels in the Winter months this is down to them and reflects the reality of a seasonal business.
There has been clear political pressure applied by Viegas with ministerial moves to hamper the villa rental market which has become the holiday of choice for many tourists. The minister has threatened dire consequences in 2014 for non compliance by villa owners who are frustrated by complex registration rules and taxation issues, especially when offshore companies own rental properties. This villa rental market should be encouraged and developed, not thwarted by the established 'old model' hotel owners through their association.
Viegas does at least stick up for his hotelier members but the inevitably depressing utterances from his office are in danger of masking any good news of the resurgence of the traditional hotel holiday format as the economy improves across europe.
