Vilalara Thalassa Resort

Algarve room occupancy rate continues to fall

The occupancy rate per room was below that seen in 2019 and in July 2022.

This July, accommodation units in the Algarve recorded a decrease of 1.1 percentage points in occupancy rate per room compared to the same month in 2019, revealed the Association of Hotels and Tourist Enterprises of the Algarve (AHETA) yesterday.

According to provisional data from the largest hotel association in the region, the occupancy rate per room was 82.3%, 1.1pp (percentage points) below that verified in 2019 and 4.2pp below that verified in July 2022.

The markets that most contributed to the year-on-year decline were the Portuguese with -7.4pp and the German with -3.3pp. On the other hand, the markets with the most significant increases were the Irish with +5.4pp, the British with +3.6pp and the United States and Canada with over 1.0pp.

By geographical area, the most significant increases compared to 2019 occurred in the areas of Tavira (+10.9pp), Carvoeiro/Armação de Pêra (+3.6pp), and Vilamoura-Quarteira/Quinta do Lago (+3.4pp). On the other hand, the main decreases, compared to 2019, occurred in Monte Gordo/VRSA (-10.7pp) and Lagos/Sagres (-4.9pp).

The average stay was 5.2 nights, an increase of 2.4% compared to 2019. The longest average stays were those in the Irish market, with 7.2 nights, followed by the German market with 6.6 nights.

It should be recalled that compared to June this year, the INE had already announced a decrease in overnight stays in the Algarve (-6.8%) compared to the same period last year.