"Our prices have been growing at the same pace as the sector and it is a completely balanced growth", according to Cristina Siza Vieira, CEO of the Portuguese Hotels Association.
Over the past ten years, hotel prices had a 33% increase, but in 2017 alone, the surge was of 10%, according to data disclosed by the Portuguese Hotels Association (AHP), revealed by the Portuguese newspaper Diário de Notícias. The increase in the number of tourists in Portugal is pulling prices up, and yet, prices are far from the average amounts charged by European largest touristic destinations.
“Our prices have been growing at the same pace as the sector and it is a completely balanced growth”, according to Cristina Siza Vieira, APH’s CEO, quoted by the same newspaper. She explained that the sector uses the year of 2007, prior to the financial crisis, as a reference — that year, one night in a Portuguese hotel costed, on average, 66 euros.
The upward trajectory started in 2014 and, in 2017, the average amount per overnight stay ascended to 88 euros, comparable to the 80 euros from the previous year. Last year, tourists left, on average, 41 million euros a day in the Portuguese economy. Adding to this tourism boom, “one cannot forget that our economy grew 2.7% last year, and that a larger demand from internal tourism also helps”, Cristina Siza Vieira signals.
Who is coming, and to what hotels?
Prices increase aided by demand from tourists coming from North-America, China or Brazil, and their preference falls on four and five starts’ hotels. However, there is still a peak for two stars hotels, since they are more similar to short renting offers in Portugal.