The Prime Minister estimated that private and public investment to fix up town and city properties could reach €5 billion by 2023, but warned that there is a danger of losing the very identity that appeals to tourists.
António Costa was speaking at the opening session of Urban Rehabilitation Week, in Lisbon.
The Prime Minister said that last year he had seen a very positive set growth indicators in the construction sector (32% up on 2015) and pointed out the government’s seven programmes to attract investment for urban rehabilitation - a sector that by 2023 could involve around €5 billion.
Costa stressed that tourism already accounts for 15% of Portugal’s exports, but gave a series of warnings regarding sustainability.
Speaking about Lisbon, where Costa was mayor of the council, the prime minister outlined the correlation between municipal policies to encourage the life of cities, especially their urban centers, and the growth of urban rehabilitation projects.
"What attracts this investment and sustains the development of this investment, is that cities keep their authenticity and dynamics. The authenticity of cities results from the urban space having a life of its own and having life for its own inhabitants," said Costa.
For this reason, according to the prime minister, "preserving historical sites does not discourage investment, on the contrary, it is a determining factor for investment to exist."
"Nobody invests in particular in a city that has international chains stores that can be found in any city in the world. Ensuring that a city has dynamic tourism, through traditional hotels, or through local accommodation, is essential," said the PM to an audience of constructors and estate agents.
For António Costa, tourism will only have sustainable growth "if the city to be visited has its own special appeal. Otherwise, tourism will have no reason to move to that city if it’s the same as other places in Europe or in the world."
Tthe prime minister added that tourism in Portugal already "has new segments" and is not limited to the traditional supply of sun and beach.
"There is now an attractiveness in cities like Lisbon and Oporto. We must know how to preserve our identity so that we can have investment that helps to rehabilitate the urban space. This is an effort that has to be continued and demands the mobilisation of all, which is why, for the Government, urban rehabilitation is a fundamental pillar in the National Reform Programme," he added.
Costa also announced the auction of 13 buildings in Lisbon for renovation, to "welcome new residents to the city."
These buildings are in top areas of Lisbon, are empty and need of rehabilitation work.
They will be auctioned this Friday by the owners, the Hospitais Civis de Lisboa, with the aim that they be "repositioned in the market."
The buildings to be auctioned start with a base value of €7.6 million in a process that will be carried out by the Directorate General of the Treasury and Finance and the Central Lisbon Hospitals group which will benefit from the proceeds and aims to replace medical equipment.
