“It’s dramatic for the economy”. Tourism on alert, but hotels hope to save Easter

Tourism is a key sector of the Portuguese economy, and the impact of the storms in recent weeks is causing concern in the sector, with some already calling for specific support. In the most affected regions, in addition to some material damage to infrastructure, there have been cancellations and postponements of bookings, and with Carnival now considered a lost cause, businesses are now trying to save Easter.

“What is happening and the consequences of this are completely unpredictable. I know that we are in the low season, but in any case, I would say that we may have some cancellations for Easter, but I hope that this will be resolved quickly. All the surveys carried out, including by the Government itself, already speak of losses of five billion euros. This is dramatic for the national economy”, admits Francisco Calheiros, president of the Portuguese Tourism Confederation (CTP), in statements to ECO.

On the sidelines of the National Hotel and Tourism Congress, Francisco Calheiros explains that the CTP has been in contact with both the regions and the industry’s business associations. “I myself travelled to Leiria on the first weekend [after Storm Kristin], and it is indeed impressive. Families, restaurants destroyed, huge problems with water infiltration. It is still too early to take stock, but one thing is certain for now: the balance sheet is pretty bad”, he warns.

He reveals that there have been “some cancellations” for the Easter period. “Nothing too significant yet”, but “it may have some” impact on international tourism as well, he admits. “I just hope this ends quickly so we can turn the page”, he says.

Meanwhile, the president of the Portuguese Hotel Association (AHP), Bernardo Trindade, points out that a survey is being conducted among members to understand the impact of the storms on activity. “We are doing it. This is not over yet”, he tells ECO, although he concedes that it will have “some impact”.

Faced with these challenges, the AHP leader praises the ‘Turismo acolhe’ (Tourism welcomes, in English) initiative, a programme that aims to provide emergency accommodation for families affected by the storms and which, as of 6 p.m. on Wednesday, had 40 participants, mainly in the central region of the country.

“We voluntarily called on our business owners to participate in this process, making available what they have, which is basically accommodation capacity. And this accommodation capacity serves to respond to a need at this moment, but above all it also serves to look to the future, particularly in terms of reconstruction”, he said. As compensation, there is a set rate of “around 60 euros”.

In 2024, tourism generated a total direct and indirect contribution of €34 billion to GDP in 2024, corresponding to 11.9%, reflecting a contribution of 0.3 percentage points to real GDP growth in that year (1.9%), according to data from the National Statistics Institute (INE).

According to a survey conducted by TravelBI, from Turismo de Portugal, in 2024 (the last year for which consolidated data is available), the Centro region recorded more than five million overnight stays, with a total of almost three million guests, while the number of overnight stays in the West and Tagus Valley reached 3.5 million (with 1.9 million guests) – both regions particularly affected by the depressions that hit the country in recent weeks.

“Carnival, particularly in the central and northern Alentejo regions, is lost”, warns Miguel Quintas, president of the National Association of Travel Agencies (ANAV), in statements to ECO, recalling cancellations in locations where celebrations are traditional, such as Torres Vedras.

However, he points out that, as a general rule, most bookings at this time of year are from resident tourists, so the impact may be less severe. The situation is different at Easter, when non-resident tourists fill hotels, although this is mainly in the Algarve, which was less affected by the storm.

“It is very important that the Government gets money to families and businesses so that reconstruction can take place quickly”, he appeals, pointing out that, during the peak of the storm, “up to 50% of tourist establishments in the Central region had to close and 80% were affected”. “Some will take time to recover, others to invest, and everything related to tourism, such as restaurants and many shops, is being affected”, he warns.

In 2024, overnight stays by residents were predominant in the Centre (68% of total overnight stays recorded in the region), the Alentejo (66.3%), the Setúbal Peninsula (62.9%) and the West and Tagus Valley (50.8%). In the remaining regions, there was a greater dependence on overnight stays by non-residents, which was most significant in Madeira (85.3%), Greater Lisbon (81.6%) and the Algarve (75.8%), according to INE.

Spain was the main foreign market in five regions, particularly the Centre (24.5%), West and Tagus Valley (24.0%), Setúbal Peninsula (18.4%), North (18.0%) and Alentejo (16%).

In the Leiria region, the damage is being assessed. Pedro Paixão, director of Monte Real – Hotel, Thermal Baths and Spa, told ECO that the intense storm also affected his establishment, causing material damage that mainly affected infrastructure and the surrounding area.

“We had to close the hotel for 10 days because it wasn’t safe for staff and guests”, he said.

Pedro Paixão points out that, “fortunately, the hotel has already reopened with normal activity, with the exception of the spa, which is temporarily closed, the surrounding forest, the maintenance circuits and the sports infrastructure, which are temporarily out of service”, and is “already taking bookings for the coming days”.

As such, and “as might be expected”, the storm “also affected some bookings for February, from private and corporate customers”, although the news about Easter seem more encouraging. “Easter bookings remain unchanged. Customers are already returning and rebooking their stays, which gives us hope for a gradual return to normality”, he said.

In a similar scenario, the general manager of Hotel Villa Batalha, Tiago Piedade Gomes, reveals that the storm “affected the hotel a little”. “We have some damage, especially to the roofs and solar panels, but we had no structural damage”, he explains, adding that for this reason they were even able to accommodate “several people who were left homeless, trying to fulfil their role of providing support” during the peak of the storm.

Tiago Piedade Gomes points out that there have been changes to booking dates and cancellations, as was the case with groups due to events that will no longer take place. According to the hotel manager, the hotel saw a “drop of around 50% in Valentine’s Day bookings’ and ‘many cancellations” for Carnival.

For Easter, “there is still no demand at this stage”. Although he points out that “it is still difficult to understand the impact” that the storms will have on tourism in the region, he admits that the hotel will have “changes in its forecast”.

However, Francisco Calheiros is more confident. “They say the weather will be better at the weekend. Carnival is very popular with the Portuguese and their eagerness to get out of the house — I think I speak for all of us — to see a little bit of sun or at least not see rain… if Saint Peter helps us, it will still be a great Carnival”, he says.

The Leiria Region Trade, Industry, Services and Tourism Association (Acilis) said that the impact of Storm Kristin is quite significant for its members and that it does not believe that the direct support announced by the Government is sufficient.

“The impact was quite significant, with material damage to various structures, including roofs, solar panels, terraces, interior infrastructure, refrigeration equipment, alarm systems and video surveillance cameras, vehicles used for business, shop windows and doors, as well as floors and interiors of establishments”, Acilis president Lino Ferreira told the Lusa news agency, Lino Ferreira, told the Lusa news agency, adding that damage to goods had also been reported.

For its part, the Coimbra Region Business Association pointed out that countless economic activities had been affected by the storm, with severe impacts including on tourism. “The difficulties result not only from the direct interruption of activity, but also from damaged infrastructure, cut-off access and the consequent economic standstill, causing high losses due to lost profits”, it said in a statement, in which it called for swift intervention.

“Generic support is, from the outset, insufficient”

Francisco Calheiros argues that, “first it is necessary to stop, then, as it is wartime, not to clean up, but to help the population, to help families”. For the president of the Tourism Confederation, “the Government was quick to take action”.

However, the director of Monte Real – Hotel, Thermal Baths and SPA, Pedro Paixão, argues that, considering the severe impact of the recent storms, “the general support provided by the Government is, from the outset, insufficient for the full and rapid recovery of the tourism sector”.

“Given its strategic importance, especially in regions such as Leiria, a package of specific measures with a dual approach is essential”, he points out, in statements to ECO. On the one hand, he proposes measures for “immediate support to ensure the financial survival of businesses and the protection of jobs” and, on the other, “strategic support measures to revitalise the region as a tourist destination, modernise the offer and restore market confidence”.

“I have no doubt that specific support is essential. Tourism has a huge impact on Gross Domestic Product (GDP). It is a sector that receives many people from March and April onwards, which sustains the entire economy and must be given top priority”, argues Miguel Quintas, president of ANAV.

And there are those who are asking for non-repayable grants. “What is needed are quick responses that do not involve credit lines”, José Santos, president of the Regional Tourism Authority (ERT) of Alentejo and Ribatejo, told the Lusa news agency.

According to him, in the municipality of Alcácer do Sal, in the district of Setúbal, the bad weather “affected practically all restaurants”, as well as “some local accommodation, including a hotel, even though it was not in operation”.

“But there are also reports of damage to private tourist infrastructure in other municipalities in our area of intervention, namely Coruche, Salvaterra de Magos [both in the district of Santarém] and Gavião [district of Portalegre], and damage to public infrastructure supporting tourism in Mértola and Odemira [district of Beja]”, he added.

Speaking to ECO, the general manager of Hotel Villa Batalha, Tiago Piedade Gomes, asked that the issue be “closely monitored by the authorities” in order to “understand the impact” of the storms. He therefore made an appeal: “The important thing is that the responses given are long-lasting and not isolated. They must be given with a long-term perspective.”