Brexit “takes 85 million from Algarve hotels”

President of Algarve hoteliers association AHETA Elidérico Viegas claims the ongoing effects of ‘Brexit’ have already lopped €85 million off income expected for Algarve hotels.

Talking to Dinheiro Vivo, Viegas’ message was that “never before has so little English been heard in the Algarve” .

“With Brexit, Britons are tightening their belts and not taking trips, concerned over the impact on their economy and jobs of leaving the European Union, with the pound already having lost almost 15% of its value in a year and a half”.

Viegas explained that “since June (the moment Article 50 was triggered, starting the process of leaving the EU), the British market has declined significantly, with results below averages for the last five years.

“In cumulative terms, there was a fall in income last year of 8.5% compared to 2016”, he said.

Just for the month of January, holidaying Brits were down 19.4% on the year before (very possibly also due to the collapse of Monarch Airlines, click here).

DV continues: “the British brake” has led to a reduction of hotel income of between 6% – 8% compared to 2016, and this represents €85 million “or £96 million”.

But there is the “good news” – which national media has been sounding meantime at almost every opportunity – German, Dutch and Irish markets have all stormed into the breach and recovered losses caused by the crashing British market.

In all, 2017 was a bumper year where hotels raked in over a billion euros – representing a 9.4% increase on already excellent figures for 2016.

“The markets that compensated for the drop in the British market were all the others”, said Viegas, naming the German, Dutch, Irish and “all the smaller markets”.

Numbers of visiting Portuguese were also up, by 1.2%, while growth across the board “looks set to continue”, he added, referring to the publication of new statistics that show “another increase in national historic maximums”, with the region coming out on top, registering 14.7 million sleepovers “just up to November”.

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