Tourism Sector Devastated by Wildfires, Hoteliers Report Mass Cancellations
The tourism and hospitality industry in Portugal’s central region is facing a severe crisis following the devastating wildfires in August. Hotel and short-term rental operators in areas including Serra da Estrela, Covilhã, and Fundão have reported a wave of cancellations that extends through the end of the year, prompting industry-wide calls for substantial government intervention. The fires have left landscapes charred and air quality poor, deterring tourists from visiting regions heavily dependent on nature-based tourism.
Luís Veiga, the executive administrator for the Natura IMB Hotels group, which operates five hotel units in the affected area, described the situation as 'catastrophic.' He reported that his hotels were running at only 30% capacity during the latter half of August and that future bookings have plummeted. 'We only have reservations dropping from November and for the next year,' Veiga stated, estimating that his group alone has suffered approximately half a million euros in losses due to cancellations. He noted a clear 'demotivation to travel to the destination,' which he described as 'perfectly understandable' given the circumstances.
The impact extends to smaller businesses as well. Cláudia Diogo, the proprietor of a local accommodation (Alojamento Local - AL) in Carvalhal, Fundão, confirmed that she experienced numerous cancellations even though her property was not in the direct path of the fires. 'We had a family that came from Sintra and as soon as they arrived, they left; the air was unbreathable,' she recounted. The sentiment was shared by many potential visitors who found the prospect of vacationing in a fire-ravaged landscape 'traumatic.'
The Association of Local Accommodation in Portugal (ALEP) has acknowledged the widespread damage to the sector. Eduardo Miranda, the association's president, explained that many small business owners have lost their entire summer revenue, which is a critical period for financial viability in these regions. 'The cancellations were the immediate losses, but, then, the problem will be the difficulty in generating revenue in the near future until there is a minimum of normality in the surroundings,' Miranda said. He also highlighted the emotional toll on owners, many of whom cancelled bookings themselves out of concern for guest safety.
Companies offering tourist activities such as hiking, canoeing, and cycling have also had their operations suspended indefinitely. António Marques Vidal, president of the Portuguese Association of Congress, Tourist Animation and Events Companies (Apecate), stated that these businesses have 'lost their ability to operate.' He estimated losses ranging from five thousand to 150 thousand euros per company and warned that many will be unable to retain staff through the low season after a summer with no income.
In response to the crisis, the Portuguese government announced a series of support measures at the end of August. These include a temporary suspension of financial obligations for credits from Turismo de Portugal, a treasury support credit line, and a non-repayable grant system to help businesses replace lost infrastructure and equipment. The measures are intended to provide immediate relief and support the recovery of productive capacity.
Despite the government's response, industry leaders are insisting that the support is insufficient. Luís Veiga of Natura IMB Hotels argued that there is 'no support for business losses and revenue recovery' and that businesses in low-density territories need more help to remain competitive. The ALEP association praised the government's quick response but raised concerns that 'access to the support lines is complex for many of the small entrepreneurs due to bureaucratic obstacles.' The Association of Hospitality, Restoration and Similares de Portugal (AHRESP) echoed these concerns, with its secretary-general, Ana Jacinto, stating the urgency of restoring confidence and ensuring the aid is delivered 'in a simple and swift manner.' AHRESP has pledged to assist its members with the application process for the government aid.
The long-term recovery of the region's tourism economy now depends on the regeneration of its natural environment. Hoteliers like Luís Veiga are hesitant to lower prices or launch aggressive promotional campaigns, preferring to wait until the region can offer the high-quality experience tourists expect. 'We want people to feel good and, when they think they should come, they come based on our offer and quality. We are not going to force their arrival,' he affirmed.
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