The Algarve's hotels association reported today that the effects of the UK decision to leave the European Union are hitting tourism in Portugal.
“British tourists are losing interest in the Algarve and the cause is Brexit,” according to the association as the number of trips decreased by 12.6% in July compared to the same period last year.
Brits are favouring 'staycations' in the UK and those who continue to come to the Algarve have less purchasing power. The Visa survey in the UK showed an early surge in summer staycations which has boosted its domestic leisure industry as the weakness of sterling has made foreign trips more expensive. The analysis shows a 6% increase in spending in UK hotels, restaurants and pubs.
"Following Brexit, the pound devalued last year by about 15% and it would be strange if this did not have an effect on the number of British taking holidays here," said Elidérico Viegas, president of the association.
The hotel occupation rate in the month of July for the Algarve was 86.5% with turnover increasing by 4.5%. The association believes that the trend will become more pronounced in the coming months.
In 2016, the British market was the largest source of tourists, an increase of 14.7% over the previous year.
