In the heart of Portugal’s tourism surge, Alojamento Local (AL), or local lodging, has risen as a pivotal force. This article explores AL’s profound impact on Portugal’s economy and tourism. Picture this: To host the growing throngs of AL enthusiasts, Portugal would need a staggering 1,030 hotels—a stark reminder that AL is indispensable for sustaining Portugal’s tourism-driven economy. Even boosting hotel occupancy rates or constructing new hotels falls short.
AL's Impact And Untapped Potential:
Delving into the data taken from the Nova School of Business and Economics study, we find an inspiring story of AL transforming into a lifeline for Portuguese families. Astonishingly, 46% of AL owners earn less than €20,000 annually, offering a means to make ends meet. More remarkably, 39% of AL owners depend on this income for a substantial 60% of their family budgets, underlining its vital economic role.
Moreover, 57% of AL owners are considering renting to foreigners for medium to long durations, and about half intend to use their properties as second homes, showcasing AL’s flexibility.
In 2019, travellers choosing AL accommodations boosted Portugal’s GDP by 4.6% and contributed 6.2% to total employment. Beyond accommodations, AL’s economic impact ripples across various sectors, serving as a cornerstone of family financial stability and a key player in the broader economy.
Between 2016 and 2019, tourism expenses in Portugal surged by an impressive 42%, surpassing the national economic growth rate. AL and its related investments are driving tourism beyond urban boundaries, facilitating travel across diverse regions. Over time, AL has consistently accounted for about 40% of tourist overnight stays, demonstrating its enduring appeal.
A Job Creation Dynamo:
AL isn’t just a financial powerhouse; it’s also a prolific job creator. This sector single-handedly supports a remarkable 306.096 jobs, accounting for 6.18% of the national workforce. To simplify, each AL unit spawns almost four jobs, acting as a veritable job generator that propels economic growth throughout Portugal.
The Mid-Term Rental Revolution:
The study offers AL owners some savvy alternatives to consider, and these options align seamlessly with the innovative approach of LisBeyond in the realm of mid-term rentals. The study suggests that AL owners can explore renting to foreigners for medium durations, ranging from one to twelve months, maintaining AL units as charming holiday spots and second homes, or even selling the properties, avoiding the traditional long-term rental route.
LisBeyond is ushering in a new era of AL by focusing on mid-term rentals—a concept that the study acknowledges as a compelling option. Our platform connects AL owners with tenants seeking stays of various durations, catering to a world where remote work and extended travel experiences are increasingly prevalent. In this evolving landscape, mid-term rentals have become a game-changer, and LisBeyond empowers AL owners to capitalize on this burgeoning market. Whether it’s accommodating remote workers, expatriates, or those seeking immersive stays, we strive to reshape the AL landscape in Portugal in harmony with the study’s forward-thinking alternatives for AL owners.
Alojamento Local isn't just a player in Portugal's economy and tourism; it's the MVP.
It’s breathed new life into neglected or rundown buildings, offering tourists unforgettable experiences throughout the country. Alojamento Local is more than a trend; it’s a driving force shaping Portugal’s economic and cultural identity. Its significance is undeniable, and its continued rise promises to reshape Portugal’s tourism landscape for years to come.
Sources:
- https://eco.sapo.pt/2023/09/12/seriam-necessarios-1-030-novos-hoteis-para-acolher-os-turistas-do-alojamento-local/
- https://observador.pt/2023/09/12/al-representa-mais-de-metade-do-orcamento-familiar-para-39-dos-proprietarios-arrendamento-tradicional-nao-e-opcao-para-a-maioria/
- https://www.rtp.pt/madeira/politica/nova-school-of-business-economics-aponta-que-programa-mais-habitacao-vai-destruir-muito-e-trazer-pouco-_125072
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