Vila Galé’s President Says That “There Can’t Be Too Much Tourism and Local Accommodations Have Benefitted Our Country”

30 October 2017

Jorge Rebelo de Almeida, president of the Vila Galé Group, believes that the importance of tourism to Portugal’s finances is not only undeniable but is also of direct benefit to the Portuguese.

The historical links between Portugal and Brazil remain strong to the present. For that reason, the president of the board of the Vila Galé Group, Jorge Rebelo de Almeida, and the president of Lusosider, Benjamin Steinbruch, were both elected Personality of the Year 2017 by the Luso-Brazilian Chamber of Commerce and Industry, for their contribution to strengthening economic relations between the two countries.

The Vila Galé Group is the second largest hotel group in Portugal and owns the largest chain of resorts in Brazil, with a significant presence in the tourism sector of both countries. The investments made by the group over the last 30 years of business have been extensive, with projects mostly financed with equity capital, following a strategy of reinvesting profits. Jorge Rebelo de Almeida revealed that the group has just opened its 28th unit, the Vila Galé Porto Ribeira, in Porto’s riverside area. “We have another five projects under construction: Vila Galé Touros, in Brazil, and Vila Galé Sintra, Braga, Elvas and Serra da Estrela. Our network is constantly growing. Regarding real estate, we have increased our bets both in Brazil and in Portugal,” the executive emphasised.

The president of the Vila Galé Group considers the fact that Portugal is fashionable and believes that the arrival of so many tourists to the country should be seen as very positive. “I completely disagree with people who think we are suffering from an excess of tourism. Of course, as in everything, there needs to be a balance, and it is important that tourism should not interfere with those who live here. But the truth is that when we walk through Lisbon these days we see people, buildings have been rehabilitated, there are new concepts and a feeling of ever greater excitement. A few years ago, Baixa was a deserted and even dangerous area. The rejuvenation owes much to tourism, which, above all, had a mobilising effect on the country, contributed to employment and the recuperation of our historical heritage,” Jorge Rebelo de Almeida argued.

Contrary to some other who are critical about the fact that the local tourist accommodation business is in direct competition with the hotel industry, the president of Vila Galé has a different opinion. “There is room for all models, as long as everyone complies with the law and regulations. I believe that hotels should positively differentiate themselves. I believe that local accommodation model has been beneficial to the country. Many foreigners would not have come to Portugal if it were not for the local accommodation industry and I do not believe we should attack people involved in the business which was a salvation for many people who were unemployed and who simply saw it as an opportunity,” the executive suggested.

As for Brazil, Jorge Rebelo de Almeida acknowledges that the country is going through a difficult time, but stresses that this has affected the group’s activities in the country. The four resorts they have in the country continue to perform well. “The model we introduced in Brazil was very well accepted, which explains why 90% of our customers in Brazil are Brazilian. The city hotels – in Fortaleza, Salvador, Rio de Janeiro – suffered to an extent because the corporate and business tourism segments slowed down. Nevertheless, we continue interested in the market,” he stressed.

Mr Almeida feels that Brazil needs to improve in some respects, starting with the bureaucracy and the cumbersome nature of some processes, which can be a strong deterrent to new investments. From the point of view of business people, it is essential that market rules are clear and transparent, especially regarding licensing and approvals. “Greater agility in the financial system, lower interest rates, a lower tax burden and a simplified financial system would also be welcome. Finally, we must begin to see tourism as a pillar of the Brazilian economy and the development of the country. And here, it is essential to have a more competitive air transport policy that attracts more foreigners and brings in more world tour operators,” he explained.

As for Portugal, he believes that tourism will tend to stabilise. The prospects for 2018 are similar to 2017. “In our growth strategy, we have been trying to diversify the areas where we have hotels, looking for less obvious and exploited destinations, such as Braga and Elvas. As a Portuguese company, we also have the duty to explore the interior of Portugal, create jobs and new opportunities to encourage people to settle in the area. In fact, this is also why Vila Galé is organising a thematic train between Lisbon and Alentejo, in partnership with Turismo do Alentejo,” Mr Almeida concluded.

Original Story: Jornal Econômico – Fernanda Pedro

Translation: Richard Turner