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Strategy Pursues Urban Rehabilitation and Internationalization of Portugal

30 October 2017

In 2016, it broke records regarding the Portuguese economy, accounting for 16.7% of exports of goods and services and 49% of exports of services. The tourism trade balance amounted to 8.8 billion euros, reflecting, together with the growth of external demand, the dynamization of the internal market as more Portuguese people take holidays within their country.

With the tourism sector currently acting as the primary driver of the Portuguese economy, there is a need to undergird and support past achievements and “promote confidence and ensure the mobilization of resources necessary for the implementation of a plan that positions Portugal as one of the most competitive and sustainable tourism destinations in the world, “according to the Tourism Strategy 2027 (EpT2027).

Renovate to add value

From a sustainability perspective, the document highlights some critical issues that need to be developed in the short and medium term, so that the 10-year objective can be realised. There are several projects to implement and materialise these objectives that are based on five strategic axes: Adding Value to Country; Boosting the Economy; Empowering Knowledge; Generating Connectivity Networks and Projecting Portugal.

The urban rehabilitation of historic centres is one of those action plans aimed mainly at “preserving authenticity and promoting accessible tourism in cities,” which includes a set of actions that EpT2027 intends to develop at the regional level so that tourism does not just focus on big cities.

In this sense, the rehabilitation of buildings, public spaces and the elimination of physical barriers, as well as the creation of new uses for unused or degraded collective equipment and infrastructures for tourism purposes are foreseen.

Strengthening the internationalisation of Portugal as a tourist destination is another of the Portuguese government’s primary objectives. More than a country for “holidays”, it is intended that Portugal be a place to invest, live and study. Consolidating Portugal as an international destination for congresses and sporting and cultural events is another of the planned actions.

Year-round tourism

The document advocates a sustainable strategy based on three pillars of development: economic, social and environmental. It is based on these pillars that the Secretary of State for Tourism (SET) intends, by 2027, to lessen the sector’s seasonality, to achieve a growth of €26 billion in revenues and to ensure that more than 90% of companies adopt measures for the efficient management of energy, water and waste.

Tackling the seasonality of tourism is one of the goals that EpT2027 hopes to achieve. At present, the seasonality index is 37.5%, and it is expected that by 2027 it could drop to 33.5%. To this end, the document forecasts an increase of 31,000 overnight stays recorded so far, to about 80,000 overnight stays in 10 years. This increase is also expected to increase revenue by almost 80%. That would lead revenues to go from 14 billion euros to 26 billion euros in 2027.

According to data collected by the Portuguese Hotel Association (AHP), 41 new hotels are expected to open in the country in 2017, plus another 42 in 2018, primarily in the region of Lisbon.

Original Story: Construír – Cidália Lopes

Translation: Richard Turner