The president of NERA – Business Association of the Algarve Region, Vítor Neto, promised this week that businessmen in the region believe in the future of the Algarve economy and “will not let their arms down” in the face of the crisis.
“Entrepreneurs in the Algarve are not going to let their arms down in the face of the crisis. They believe in the future of the region's economy. They will resist and continue to fight with all their strength to resume the dynamics of their activity and their companies ”, guaranteed the leader of NERA, in a statement.
The “brutal crash of the main economic sector in the region – tourism – with an impact not only on accommodation and restaurants, but in many other sectors” involves thousands of companies, which suffer from loss of revenue, “unbearable” weight of fixed costs , “Difficult financial situations”, closures and unemployment, lists the business leader.
However, Vítor Neto ensures that companies intend to "face the situation" with "mandatory starting points" and "compelling certainties".
"First. The resumption of international tourism will even happen. Its pace and consistency will depend on several factors; Second. Portugal (with the Algarve as the main destination) has been part of this global tourism picture for several decades. What is significant; Third. The Algarve has all the conditions to continue to believe in the importance of tourism, despite the strong drops in 2020 and the uncertainties of the recovery. It has a rich and diversified offer, a consolidated image, international prestige. Tourism is not only the main sector, but it is also the strategic sector, the engine, of the Algarve economy ”, maintains the president of NERA.
Main concern should be pandemic control
Vítor Neto points out that "the unavoidable obstacles to the recovery of tourism dynamics are clear and many do not depend" on businessmen, but the main concern will be to control the pandemic, through the control and elimination of outbreaks and the expansion of vaccination at a global level.
With these scenarios, the leader points out two hypotheses: “a moderate recovery of uncertain value”, from the second half of 2021, “with a perspective of positive evolution in 2022 and reaching values close to 2019 in 2023”; or "an even more moderate recovery, with a slower process in 2021 and 2022 and that will continue for 2023, reaching only 2024 values close to 2019".
The challenges for Portugal are to “guarantee a first-rate place” in this pandemic control process, “which guarantee a status and image of health security within the parameters required internationally”.
On the other hand, companies, points out NERA, “cannot live on promises and illusions”, so “they will have to continue to resist in order to stay alive and fight to keep up with the recovery process at the speed that circumstances demand”.
“They should seek to improve their financial and operational health by using the support measures provided by the government. They must seek to improve the functional structure of their companies, and consolidate employment, maintain and renew the quality of their products and their offer to respond to the new challenges of international competition ”, concludes Vítor Neto.