The Association of Hotel Industry of Portugal (AHP) has revealed that the revenue per available room (RevPAR), a key metric in the hospitality sector, increased from 92 euros to 95 euros nationwide, according to a recent survey of its members.
Cristina Siza Vieira, the executive vice-president of AHP, highlighted the significance of this development, noting that the average room rate (ARR) rose to 146 euros. This increase, she explained, was due more to higher prices rather than an occupancy rate, which remained steady at 65% both nationally in 2023 and into 2024.
“We are growing more in terms of value rather than occupancy rate. The growth isn’t as pronounced as it was until 2022, following the pandemic. In 2023, there was a slowdown, and we expect the same in 2024, although it’s a slowdown in growth,” Vieira stated.
The highest average room rates were recorded in Lisbon Metropolitan Area (199 euros) and the Algarve (159 euros), while the highest occupancy rates were also found in Lisbon (73%) and Madeira Autonomous Region (79%).
Regarding the year-end festivities, 44% of those surveyed indicated that the Christmas occupancy rates were better or much better compared to 2023, with a national average price of 124 euros, an increase of one euro. However, there was a slight decline in the average price for New Year’s, dropping from 162 euros to 160 euros per room.
Looking ahead to this year, 56% of respondents expect better revenues, while 33% anticipate the revenues will be similar to those of 2024.
Cristina Siza Vieira also pointed out the uncertainty surrounding the United States’ commercial policies, which could have global impacts, potentially leading to a decrease in U.S. tourist demand. However, she suggested this might be offset by domestic demand within Europe and other destinations, such as the Asian market.
Bernardo Trindade, the president of AHP, emphasized the delays in the implementation of measures outlined in the Competitiveness and Income Agreement signed with the Government. He expressed hopes for quick resolutions on issues like the new airport, the privatization of TAP, and the regularization of immigrants.
