Portuguese Hotels Think that the Industry's 2011 Troubles are Over

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The prices of hotels crept up again over the summer, as opposed to the previous summer. So did the amount of foreign and national tourists and the number of nights that they stayed in various hotels. According to the Association for Portuguese Hotels (AHP), this is believed to be an indication that economic troubles for this industry are finally over.

According to Cristina Siza Vieira, executive president of AHP, there is no way to say whether or not there is presently an existing problem with the country's hotel industry. The president also claims that it really is just too early to say whether or not the industry is going to see the end of the economic turmoil that it has gone through over the last twelve months.

The AHP Monitor stated that during 6/11, there was an improvement when you compare the month to 6/10. The average cost per rented room went up by about 4.82%, the average cost per unoccupied room went up by 17.67%, and the average amount of people renting rooms increased by 12.27 percent.

The combined months of January through June also experienced growth, although it was not talked about as much. The average cost of each rented room increased by .91% and the average cost of each available room increased by 2.67%.

Also according to Siza Vieira, it appears that the Portuguese population that normally went abroad, chose to vacation in the country instead, which had a huge effect on Portugal's hotel sector. However, Siza goes on to say that many foreigners chose to vacation in Portugal as opposed to going to other places such as the United Kingdom, Brazil and the Middle East.

The numbers provided by the AHP indicated that during the months of January through June, the revenue per available room, which is also called REVPAR, went up by 3.59% as compared to the first 6 months of 2010. Also, the REVPAR for each tourist monthly rental in a hotel went up by 6.12%, which increased to €104. The average total of days spent in a hotel this year was 1.94 days, which is a figure that rose by 4.3%, as opposed to the previous 12 months.

During the months of January and June 2011, the total revenue per available room (TREVPAR) was €50.7. This is a figure that indicates a rise of about 3.53% as opposed to the same duration in 2010.

TAP, which is a Portuguese airline, was privatised. According to AHP's Siza, this particular action has the industry worried. However, the possibility that there will be a rise in VAT is the key thing that the majority of Portuguese hotel owners are most concerned about. They are fearful that an increase in taxes could impact how external competition responds.


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