Algarve Hotels Anticipate Slight Increase in New Year Occupancy Rates

Algarve Hotels Brace for New Year Celebrations

Algarve hoteliers are optimistic about a slight increase in hotel occupancy rates during the New Year period compared to 2023. Helder Martins, president of the Algarve Hotels and Tourist Enterprises Association (AHETA), indicated that occupancy could rise to just above 80% for hotels that remain open, although this increase is expected to have minimal impact on overall tourism.

Unlike Christmas, which is typically celebrated at home and has little effect on tourism accommodation, the New Year brings more visitors to the region. However, Martins emphasized that this time of year is still considered the low season, with occupancy rates averaging around 30%. He noted that the increase in occupancy would only apply to one or two nights, thus not significantly altering the overall monthly statistics.

Martins also pointed out that the anticipated increase is primarily driven by hotels offering stay packages and entertainment, particularly in municipalities that promote street festivities.

While he mentioned that the reservation rates for the festive season are still unknown, demand typically rises once hotels announce their entertainment programs, especially in the week leading up to the New Year. The demand is largely from the national market, but stays are usually short and do not greatly impact the region's tourism.

This New Year period is viewed as an opportunity for a slight uptick in occupancy, reflecting the ongoing challenges faced by the Algarve's hospitality sector.