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Fall In Tourism Causes the Azores Losses of 400 Million Euros

12 May 2021 – Ana Custódio

Between March 2020 and February 2021, overnight stays in the Azores fell from 3,039,571 to 683,658, losing a total of 2,355,913 overnights.

The Board of the Chamber of Commerce and Industry of Ponta Delgada (CCIPD) met yesterday to analyse the sector’s current situation and suggest measures.

According to the data analysed on the trends in tourism in the Azores, between March 2020 and February 2021, there is a reduction from 3,039,571 to 683,658 overnight stays, a fall of 2,355,913.

The CCIPD had already predicted this scenario at the beginning of the pandemic, forecasting overall losses for the Azorean economy of around 400 million euros in a single year.

According to the statement, ” the tourism cluster represented, in 2019, about 475 million euros of GVA (gross value added) and about 23,000 jobs. A drop of 80% represents about 380 million euros of GVA.”

Due to an array of national and regional employment support programmes, jobs losses have been limited. However, the vertiginuous drop in sales has led to companies bearing the brunt of the losses, or up to two-thirds.

Overnight stays on the island of S. Miguel fell 19.3% of the previous year’s figures, with Terceira (25.3%) and Faial (26%) fairly somewhat better. The least affected islands were Corvo (64.2%), Flores (46.5%) and Graciosa (40.5%). Overall, the island of Sao Miguel absorbed 71.5% of the losses, followed by Terceira (12.9%) and Faial (6%).

Total receipts for the period were even worse, reaching just 18% of the previous year’s figures, falling from 109.2 to 22.2 million euros, down by 86.9 million euros.

Spreading this figure across the various islands, S. Miguel accounted for 75.9% of the losses, Terceira for 11.2%, Faial for 6.3%, Pico for 3.4% and S. Jorge for 1.1%.

Translation: Richard D. K. Turner