65 percent of Algarve hotels expect to close by the end of the year – AHP

65 percent of Algarve hotels expect to close by the end of the year - AHP


Approximately 65 percent of hotels in the Algarve are expected to close by the end of the year, according to the survey "Hotel Closures 2020/2021", released by the Portuguese Hotel Association (AHP).

The results of the survey were presented today, in an online press conference, by the executive president of AHP, Cristina Siza Vieira.

According to the official, almost half of Portuguese hotels (45% of respondents) plan to close by the end of the year and groups with several units admit to closing 56% of their establishments

Of those who plan to close by the end of the year, the Algarve region stands out, with 65% of establishments admitting to close by the end of December, of which 70% were already closed in November.

As for the closing period, in global terms, the average value is 4.1 months, from November onwards.

Thus, 46.4% estimated to open in March 2021, 23.7% said they still do not have an opening forecast and 16.9% pointed to the reopening for the second quarter of next year.

Of those who said they will close, only one respondent said that he will not open doors again, but AHP stressed that he does not work with individual entrepreneurs.

As for establishments that remain open, a reduction of 72% in the supply of accommodation units is estimated, that is, they will not be operating at full capacity.

When asked if they are considering adopting an intermittent use of their establishment (opening, for example, on weekends or for events), 40% said they were willing to open on time.

In Alentejo, 70% said it only opens at the weekend, with AHP receiving complaints from businessmen in that region regarding restrictions imposed by the Government over the past two long weekends.

As for government support, 65% resorted to extraordinary support for the recovery, namely with regard to the reduction of normal working hours.

Of those, more than 80% of respondents resorted to a reduction in normal working hours, between 41% and 100% reduction.

"As the performance of the Alentejo was very interesting in the summer, compared to others, 65% in the units did not use the reduction of the working period", explained Cristina Siza Vieira.

The executive chairman of AHP also left a challenge to Turismo de Portugal, arguing that the reinforcement of Portugal's image among the main tourist sending markets, such as the United Kingdom and Germany, is in line with the vaccination plans of these markets, that is, , which age groups will be given priority for vaccination in those countries.

Regarding the estimates of losses in the hotel industry for the year 2020, AHP maintains the forecasts it had already presented: loss of 80% of overnight stays, which means 46.4 million overnight stays lost, and a drop of 80% in revenues, a total of 3.6 billion lost revenue in the hospitality industry.

“Our estimates are, at the moment, the worst case scenario, 80% nationally, also considering the islands”, reiterated Cristina Siza Vieira.

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