DBRS Forecasts Full Recovery for Portugal’s Tourism Sector

9 February 2021

The financial rating agency DBRS Morningstar has forecast that Portugal’s tourism sector will not return to pre-pandemic levels this year while maintaining that its attractiveness will continue after the crisis ends.

In an analysis of the tourism sector in Portugal, DBRS foresees another challenging year for the industry, given the seriousness of the global pandemic crisis, which is at a particularly critical phase in the country.

The health situation, the prolongation of restrictions, the EU-wide delay in distributing Covid-19 vaccines, and travel limitations are the determinant factors currently hindering the country’s economic recovery.

Even so, the credit rating agency emphasises that the attributes that made Portugal attractive to investors and visitors around the world before the crisis will continue long after the pandemic. The report added that “the shock of covid-19 will be temporary and should not result in structural changes in the Portuguese tourism sector. While this crisis will inevitably have serious consequences for many workers and businesses, particularly those most exposed to the sector, the demand for tourism in Portugal is expected to return to pre-pandemic levels.”

The agency also recalls that between 2010 and 2012, Portugal received an average of 14 million non-residents per year, a figure that reached 27 million people in 2019.

Original Story: Diário Imobiliário

Translation: Richard Turner