Luxury hotels delayed due to crisis

The Portuguese government’s target of 23 five-star hotels in the Algarve by 2010 will not be met, according to the president of the hotels and tourist accommodation association (AHETA).

Elidério Viegas said that the economic crisis which has affected the real estate sector has caused the construction of many luxury developments to slow down and many developers have decided to delay the opening of some five-star hotels, such as Verde-Lago, Baía Meia-Praia and the Radisson.

In 2005, there were 10 five star hotels in the Algarve and for 2010, the government wanted that number to reach 23.

However, due to the crisis, less than 20 luxury hotels will be open by the target date.

Elidério Viegas also said that despite the crisis, three five-star hotels are due to open in 2010.

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