Further Rise in Visitors and Overnight Stays
The tourism sector in Madeira has again set new records, with 221,300 guests arriving at tourist accommodations in August 2024, an increase of 8.9% compared to the same month last year. This influx led to over 1.227 million overnight stays, marking a 4.6% rise year-over-year.
Hotel Sector Faces Decline as Alternative Lodging Grows
Despite the overall growth in tourism, the hotel sector saw a slight dip, with occupancy falling by 2% compared to August 2023. On the other hand, local accommodations experienced a significant boost of 25.1%, while rural tourism rose by 4.6%. Hotels accounted for 69% of total overnight stays, but alternative lodging options are gaining momentum in the region.
Revenue Sees Double-Digit Growth
Revenues in the tourism sector soared in August. Total revenues increased by 10%, with lodging-specific revenues growing by 10.4%, amounting to €84.6 million and €62.2 million, respectively. The average revenue per available room (RevPAR) reached €111.74, a 9.3% increase from the same period last year. The average daily rate (ADR) also saw an 11.8% rise, reaching €133.37.
Strong Performance Throughout 2024
Tourism in Madeira has shown consistent growth throughout the year. From January to August 2024, the region welcomed 1.501 million guests, a 5.7% increase over the same period in 2023. The total number of overnight stays exceeded 7.9 million, up 6.4%. Despite some challenges in key foreign markets, Madeira continues to strengthen its position as a top tourist destination.
Tourism Tightening Its Hold on Madeira’s Economy
Madeira’s economy is heavily dependent on tourism, which is expected to keep growing. However, this focus on tourism is not a sustainable way to develop the economy, as it creates a one-sided approach that lacks balance. At this rapid pace, questions arise about whether the island’s infrastructure can keep up. Also, what will happen if tourism growth slows or declines? The share of tourism on Madeira’s economy is about to cross 30% and at this pace, no other sectors of the economy can keep up, allowing tourism to tighten its hold on Madeira’s economic future even more.
Sources:
RTP Madeira
Jornal da Madeira
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