A survey of the hotel industry concluded that more than half believe business has already returned to 2019 levels. And that there is room for price increases this year.
The North American market is expanding in Portugal in the tourism sector, having overtaken markets such as France or Brazil. And the hotel industry’s expectations are that it will further strengthen its weight, according to the survey “Balance 2022 & Perspectives 2023”, presented this Thursday by the Associação da Hotelaria de Portugal (AHP).
The domestic market still accounts for the largest share of visitor numbers and overnight stays, with 87% of respondents placing Portugal in their TOP3 main markets. It is followed by Spain (46%), the United Kingdom (37%), the United States (33%), France (28%), Germany (22%) and Brazil (20%).
When presenting the data, the executive vice president of AHP highlighted the rise of the United States in the ranking, leaving behind markets such as France, Italy or Brazil.
“The bet on the American market really gave a very interesting result, because the American market responds” not only in terms of the number of guests and overnight stays, but also in revenue, Cristina Siza Vieira underlined.
The strengthening of the weight of the USA last year was mainly highlighted by hotels in the Azores, Lisbon, Alentejo and the North. When asked about the outlook for 2023, the United States moves up another notch.
According to the same document, 80% of respondents believe that Portugal will continue to lead, 49% put Spain in the TOP3 source markets and 40% the United States. This is followed by the United Kingdom (36%), France (24%), Germany (22%) and Brazil (19%).
When it comes to resuming business after the forced shutdown of the pandemic, more than half of respondents believe business has already returned to pre-pandemic 2019 levels, and 25% say it will only reach that level in second half of this year.
“2022 was definitely a good year compared to 2021, which was only natural, because 2021 was still a year very marked by the pandemic. But even compared to 2019, it was not only a strong year in terms of recovery, but it was a very dynamic recovery,” he said.
Prices with room for further increases
The survey also confirmed the upward trend in hotel prices, reflecting rising inflation but also “demand growth”. And it is a “European trend”, the official underlined.
The upward trend will continue this year, but not with such a “jump”, he explained. “But there is room” for price increases, he added.
Similar to the results already promoted by the National Institute of Statistics (INE), the hotel survey showed that “2022 was an interesting year”, with price increases in almost the entire territory and “with some explosions, such as the case of Madeira”. And respondents’ outlook is that they will continue to rise.
Last year, the average return per occupied room (ADR) reached 103.9 euros and increased by 17.7%. During this period, this index recorded growth of 16.4% in hotels, 31.6% in local accommodation and 7.6% in tourism in rural areas and housing, according to the INE.
Average revenue per available room (RevPAR) stood at €56.2, which represents an increase of 72.5%, with an increase of 74.8% in hotels, 81.6% in local accommodation and 18.8% in rural tourism areas and housing.
375 hotel units participated in the survey, corresponding to 40% of AHP members.