hospitality Market News: Portuguese Real Estate Intelligence

RICS - the World's Leading Professional Association in the Construction and Real Estate Sectors
5 March 2021 - Ana Custódio A Real-Life Master Class under the theme “The RICS and the International Standards”, organised by ISCTE, Instituto Superior de Ciências do Trabalho e da Empresa, took place this week on Tuesday. Conducted online, the Master Class presented an overview of RICS’s (Royal Institution of Chartered Surveyors) activities in Portugal, the importance of international standards for the real estate sector during the Covid-19 pandemic, the nature of the process for becoming a member of the institution and the importance of being one. The event was helmed by Gonçalo Nascimento Rodrigues and counted with the participation of José Covas, both President of RICS in Portugal and Head of Portugal at Aura REE, and Eulalia Pensado, Partner Development & Public Affairs Manager Iberia, RICS. According to Eulalia Pensado, “It’s not enough to be working in a company [in the sector]. To be a member of RICS, one must take the RICS admission test.” The Partner Development & Public Affairs Manager Iberia, RICS, then began by explaining that the Royal Institution of Chartered Surveyors is a regulatory body founded in 1792 by twenty Surveyors (a construction group to regulate the sector). The institution is defined by high standards of ethics, professionalism and knowledge and its members are admitted through entrance exams, known as APCs. RICS is the largest and most venerable professional association in the field of construction and real estate, and, according to José Covas, “RICS has evolved a lot and this last year was no exception, 2020 was a critical and decisive year for RICS.” Currently, the institution has 134,000 certified professionals worldwide. With many investors seeking membership in the association, Mr Covas noted that “in the 15 years that it has been most active, [RICS] was one of the first in Europe to organise itself. This is the most heterogeneous board that exists, covering the various areas; we have valuers, project-management, construction area, planning and research and residential area (real estate mediation).” As RICS has considerable ability to cover various areas, and its aims for valuations to be a lesser part of that, given the growth of the other areas of activity within RICS, and its extensive international recognition. Being a RICS member is considered a letter of introduction for any client, according to Eulalia Pensado and José Covas, allowing the application of a set of standards in every country in the world. Translation: Richard Turner
Number of Guests and Overnight Stays Fall Sharply in January
3 March 2021 - Ana Custódio According to data released by Portugal’s statistical agency, the tourist accommodation sector reported 308,400 guests who spent a total of 709,900 overnight stays in January. According to the National Statistics Institute (INE), the drops reached 78.3% and 78.2%, respectively, compared to falls of 71.2% and 72.6% in December. The agency added that overnight stays by residents fell by 60.3% (-54.2% in December), while those by non-residents dropped 87% (-83.2% in the previous month). In this first month of the year, hotels, which account for 71.1% of the total, suffered the most significant drop in overnight stays, down by 81.4%, with local accommodation establishments (25.1% of the total) falling 63.4% and tourism in rural areas and housing (3.8% share) down 54.2%. INE’s analysis also shows that 54% of tourist accommodation establishments were closed or hosted no overnight stays in the month (vs 52.3% in December). The domestic market (60.1%) tallied 427,000 overnight stays, a decrease of 60.3% (-54.2% in December). Overnight stays from external markets fell by 87% (-83.2% in the previous month) to reach 282,900. The National Institute of Statistics also revealed all of the seventeen primary source markets saw further significant declines in January, having accounted for 84.1% of the nights spent by non-residents in tourist accommodation establishments this month. The greatest reductions came from the Chinese (-98.1%), Danish (-95.2%), Russian (-94.8%), Canadian (-94.3%) and the USA (-94.2%) markets. All regions showed a decrease in the number of nights spent by residents and non-residents in January.  The smallest drops in overnight stays for residents were recorded in Alentejo (-54.9%) and Madeira (-56.1%). For non-residents, the smallest decline came in the Alentejo (-68.9%), while every other region posted drops of over 80%. Every region posted total declines in excess of 50%. The least affected regions were the Alentejo (-59.3%), followed by the Centre (-69.3%). The hardest-hit areas were Lisbon (-81.9%), Madeira (-81.2%) and the Algarve (-80.6%). Translation: Richard Turner
Tourism Drops by More Than 60% in 2020
16 February 2021 Hotels in Portugal hosted 61.3% fewer guests in 2020 than in the same period in the year before, for a total of 10.5 million guests. The data on Portugal’s tourism sector were published by the National Statistics Institute (INE). While overnight stays saw volumes drop to their lowest point since 2013, overnight stays by non-residents fell further, to a nadir last seen in 1984. According to the INE, Portuguese residents spent a total of 13.6 million overnight stays, down 35% year-on-year. The number of nights spent by non-residents fell by 75%, to 12.3 million nights, a 36-year low. The year had begun well for the sector. In the first two months of the year, overnight stays grew by 10.8% year-on-year due to Carnival. The onslaught of the Covid-19 pandemic in March, however, threw the Portuguese tourism sector into a tailspin, an event that was replicated throughout the world. Original Story: Jornal Económico - André Cabrita Mendes Photo: Armando Franca/AP Translation: Richard Turner