Azores Residents Call for Stricter Short-Term Rental Regulations Amid Housing Cost Concerns
A new report from the Regional Tourism Observatory (ORT) of the Azores has revealed that while a majority of residents hold a positive view of tourism, there is overwhelming concern about its impact on housing costs, leading to widespread calls for stricter regulation of the short-term rental market. The 2024 survey, conducted across the islands of Faial, Terceira, and São Miguel, provides a detailed snapshot of local sentiment towards the archipelago's primary economic driver.
The tourism authority released the findings this week, showing that 55% of the 833 residents surveyed view the sector's development as satisfactory or better. The economic benefits are clearly recognized, with 84% of respondents agreeing that tourism attracts investment to the islands and 80% acknowledging its importance in creating jobs. However, these positive indicators are overshadowed by the perceived negative effects on affordability for the local population.
According to the ORT data, a significant 77% of residents believe the growth in tourism is directly responsible for the increase in housing and rental prices. This figure is part of a broader trend of concern, with 78% stating that tourism drives up the cost of general goods and services, and 71% concluding that it elevates the overall cost of living. Only 10% of those surveyed rated the impact of tourism poorly overall, indicating a nuanced view that separates economic benefits from social costs.
In response to these pressures, residents have put forward clear proposals for government action. The most prominent suggestion is the implementation of a more rigorous regulatory framework for short-term rentals, known in Portugal as Alojamento Local (AL). Many residents feel the largely unrestricted growth of AL properties has reduced the availability of long-term housing and is the main cause of the price surge. The survey indicates a strong public appetite for measures such as capping the number of AL licenses per parish or implementing higher tax rates for these properties.
The licensing requirements for AL are currently managed at the municipal level, and the survey results are expected to place significant pressure on local councils to review their policies. An official from the Ponta Delgada municipality, speaking on condition of anonymity, confirmed that the housing issue is a top priority and that the survey's findings will be “carefully considered” in future planning sessions. The current licensing process involves registration with the local council and adherence to safety and tax obligations, but residents are clearly demanding more stringent controls.
Beyond housing, the survey highlighted environmental concerns. Nearly 60% of respondents stated that overcrowding during the high season places excessive pressure on the islands' unique natural resources, and 63% cited an increase in pollution as a negative consequence of tourism. This has led to calls for limiting the number of visitors allowed at popular and ecologically sensitive locations, a measure already being tested in other tourism-dependent regions globally.
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The ORT report also noted that residents advocate for a strategic shift in tourism policy, moving away from a focus on volume and towards attracting higher-spending visitors. Other proposed measures include investing in employee training to improve service quality, enhancing public transport infrastructure to alleviate traffic, and restricting the development of large-scale tourism projects to prevent the islands from succumbing to a mass-market model.
When asked directly if the Azores is pursuing a sustainable tourism model, 76% of residents agreed. However, the 24% who disagreed provided pointed criticism, citing poor planning, an oversupply of Alojamento Local, and excessive strain on natural resources as evidence that the current model is unsustainable in the long term.
The President of the Azores Tourism Association, reacting to the report, stated that the industry is aware of the challenges and is committed to working with the government and local communities to find a sustainable balance. "The voice of the residents is crucial," he said. "We must ensure that the growth of tourism benefits everyone and does not compromise the quality of life that makes the Azores so special."
The survey results will now form a key part of the ongoing debate about the future of tourism in the Azores. The regional government is expected to announce a review of its tourism strategy later this year, with the issues of housing and sustainability at the top of the agenda.
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