Hotel prices up 20% as Algarve enjoys busy holiday season

Hotel prices have increased 20% in 2016 compared to last year. According to an RTP report, the price boost is directly related to the “higher external demand” the Algarve has enjoyed this year with more holidaymakers choosing the region for its safe reputation over other rival destinations such as Turkey and Tunisia.

“Business has definitely improved. Since January, our occupation levels have increased 10.5%, while our business volume is up 16.5%,” Elidérico Viegas, president of the Algarve’s hotel association AHETA, told Expresso newspaper.

The Pestana group, Portugal’s largest hotel chain, says the price increase has not been very significant – up by around 10% per room.

“This does not stop anyone from coming to the Algarve,” said Nuno Ferreira Pires from the group.

He added that he believes the Algarve will be “completely full” this summer, as many tourism specialists had already predicted.

Gonçalo Rebelo de Almeida from Vila Galé explained that prices are now “more in line with those from 2007 and 2008”, before the economic crisis hit.