Portugal’s Youth Hostels that have shown low occupancy rates will again close over the winter period, as happened for the first time in 2012, according to the Secretary of State for Sport and Yoof.
Emidio Guerreiro said the option taken last year with units with occupancy rates of less than 20% “improved the accounts” of Movijovem, the public entity that manages Portugal’s network of hostels.
"Close over the winter and reopen in the spring , as happened last year which went quite well," said the minister.
The suspension of operation between December 2012 and March this year applied to more than a dozen of the 40 youth hostels in Portugal.
The measure was justified by the government at the time, using the now hackneyed excuse involving the word ‘seasonality’ and was based on "low occupancy rates, operating deficits and proximity to other units in the network." The contracts of workers were suspended during this period.
According to Emidio Guerreiro, the debts of Movijovem are now "less than €10 million," which shows a good reduction from the €16 million recorded in 2011.
“This is not unconnected with the fact that we have have had the courage, in the hostels with occupancy rates below 20 % , to close when there are no customers. This is better than having the doors open and spending money that does not exist," explained Guerreiro.
Earlier this year the government presented a management study for the national network which assumed two scenarios. One was a management buy-out and the other was to get the councils to run the hostels.
These proposals were presented by the former Secretary of State for Sport and Youth, Alexandre Mestre.
Guerreiro said there were various options under discussion and the main thing was to reduce the operation’s debts.
