Unexpected decrease in tourism in Madeira

Hotel revenues drop nearly 4%

Unexpected decrease in tourism in Madeira 1The Journal reports that first estimates for the month of November 2018, released by the Regional Directorate of Statistics, point to a year-on-year decrease in overnight stays and total income in the tourist accommodation of the Autonomous Region of Madeira, both of 1.0%. Room revenues decreased by 3.8% year-on-year.
In the data released yesterday afternoon by the Regional Directorate of Statistics, the total number of overnight stays in the month in question was around 578,000, while the total income was €17.0 million.
The hotel sector accounted for 85.0% of overnight stays, decreasing 3.2% year-on-year, whilst Alojamento Local private lettings, which represents 13.3% of the total, registered a 15.8% increase in that variable. Tourism in rural areas, responsible for 1.7% of the total, saw a decline of 2.1% in overnight stays compared to November last year.

French and German visitors down. Portuguese up.

In traditional markets, tourist accommodation as a whole recorded a decrease in the overnight stays of French, German and British tourists (down -11.7%, -10.9% and -0.3% respectively). The domestic Portuguese market made a positive contribution, presenting a growth of 38.8% in overnight stays.
In cumulative terms over 2018 (January to November), overnight stays in tourist accommodation decreased by 1.0%, while total and room revenues increased by 1.6% and 1.8%, respectively. The bed occupancy rate of the tourist accommodation in November stood at 53.9%, 4.0 percentage points lower than in November 2017. The average income per room (RevPAR) in tourist accommodation decreased by 7.8% year-on-year to €35.60. The hotel sector showed a decrease of 7.2% in November 2018, presenting a RevPAR of €38.82. At the moment private AL accommodation is not required to submit revenue figures to the statistical authorities.

17 thoughts on “Unexpected decrease in tourism in Madeira”

  1. I am surprised that this article is headlined as unexpected. A lovely Island however I fear numbers will reduce even more. SORT THE AIRPORT OUT. Nobody wants to take off not knowing they might not land in Madeira. Change the landing classification back to pilot advisory for wind speed .

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  2. We were in Madeira as usual for Christmas and New Year. No airport issues at all … fortunately, we never have had any in the 18 years we have been visiting. However, this time, with the weak U.K. Pound, costs were a good deal higher, even though the Euro prices were more or less the same in most places as previous years. Over 90p per euro (compared with 75p per euro in the earlier years when we first visited and about 85p per euro a couple of years ago) feels a bit hairy!

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  3. Correct Clive – the airport issue must be sorted out for sufficient tourists to arrive to fill all of the new hotel rooms. The number of stays only dropped 1%, but the occupancy fell 4%, which must indicate more rooms being available.

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  4. I agree with the above comment. We have been visiting the island for the past 18 years and come twice each year for two three week stays each time. On one occasio we had very difficult and almost disastrous problem due to the closure ofthe airport, and other lesser problems on another occasion.
    If this is to reoccur, we will have to seriously consider changing our holiday plans.
    Surely the hoteliers are very aware of the problem and it is in their interests to get together and find a rapid solution!!

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  5. 4% drop in occupancy is a disaster when compared against the percentage increases that were projected and used in the business plans for the gigantic hotels now being built.

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  6. Worrying news for new hotels planned and those under construction. Are we seeing the first signs of the effects of over tourism? or are these figures just a one off dip almost certainly attributed to the very bad year for the Airport?.

    Have the final figures for 2018 flight disruption been published? must be over the 600 mark ?

    Potential to start the tally again tomorrow and next week with the forecast of moderate northerly winds

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  7. The downturn of the Pound has affected tourism in mainland Portugal

    https://www.usnews.com/news/world/articles/2019-01-14/portugals-tourism-boom-halted-by-brexit-airport-problems

    This probably accounts for a drop in UK tourism to the island but, tourists from Germany and Eastern Europe are on the increase.

    I think once the fiasco of Brexit is over the £ will rise against the € to a more realistic exchange rate and overseas tourism from the UK will increase.

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  8. I don’t know what people expect the airport authority to do when comments like ‘sort the airport out’ are made. The bottom line is safety and the experienced pilots who fly to Madeira are the ones who have to decide, along with ATC, whether it is safe to land. The percentage is minimal when you look at the number of successful landings during the year. Off course it spoils the holiday but I have heard some horror stories about the treatment of passengers who are delayed so this will also be a deciding factor, although there is a ‘Duty of care’ information which is widely available at the airport, it appears some airlines chose to either cancel before given time to see weather improve or just do it because they know as it is weather related they don’t have to pay compensation. No one likes landing here, including myself, but it is the way it is when the weather is too windy or bad visibility. There have been some very scary landings at UK airports recently but they never seem to get the bad press like Madeira. I doubt it is the reason for the decreasing numbers of Brits, more likely the appalling exchange rate which makes everything more expensive and when you have a limited budget, it becomes a decision to holiday or not. The cost of hotels is increasing although there are frequent deals .

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  9. There are many factors behind these figures but the fall in the value of the Pound is not the main factor – in January 2011 it fell to around 1.15 and it is currently 1.13 with lots of ups and down in between. It is interesting that the major drop in tourists are from Germany and France, not the UK and they have not been affected by exchange rates. My own opinion is that it has little to do with the airport rules on landing in cross winds but mainly down to the rising cost of air fares and the diminishing competition. Monarch have gone and Air Berlin and all TAP flights now go through Lisbon. The rise in ‘All Inclusive’ holidays to places such as Spain and Turkey coupled with cheap charter fights make Madeira an expensive option for a family holiday. It is in competition with The Canaries for winter sun and they are well served with many airlines and I suspect that they are taking away business from Madeira.

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  10. Must agree with previous comment the increased fares to cover for the airport problems I assume must affect people. Have been trying to book with BA for early December to return after new year and although the fare outward is reasonable the return fare is £373 just for ECONOMY !!!!!

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    • I know! Had enough Avios points to get £80 knocked off but it was still £1,400 for the two of us. But I’d rather go with BA than the alternatives. I just wish TAP served the LGW to FNC run.

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  11. Think the previous comment is right as the price of air fares has increased probably to compensate for the extra expense due to the delays at the airport. We have been looking at ba for flights from early December returning to the uk after New Year and the return journey alone is £373 ECONOMY!!!!!!!.

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  12. Glad for the info Maurice as I thought I was missing something as the prices are so high. We are coming for at least month with flexible dates so shall wait and see.

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