Regional focus


To explain what he means, Diogo highlights the example of Six Senses Douro Valley, luxuriating in a Victorian mansion yet boasting cutting-edge spa and sustainability features. Not to be outdone, Four Seasons recently renovated its landmark location in Lisbon, a classic modernist pile originally opened in 1959. In large part, the relatively bijou nature of Portugal as a country often obliges developers to make the most of existing buildings, with Diogo suggesting that this means you end up with “beautiful, unique hotels with a heritage you don’t get anywhere else”. In a broader way, meanwhile, Diogo believes that such openings, including ones far from established tourist centres such as Lisbon and the Algarve, are destined to continue.


If first-time tourists are inclined to stick to the major cities, Diogo says that return visitors typically prove more adventurous. Certainly, it’s a point reflected by the numbers. By one calculation, last summer was the best ever for the Azores – with arrivals smashing the pre-pandemic record by nearly 12%, reported Migronis. It helps too that the Portuguese authorities are doing their best to ride the wave. Conscious that entrepreneurs are increasingly international in scope, golden visa schemes make it easy for non-EU hoteliers to open properties. So-called digital nomads can take advantage too: as of December 2022, there were an estimated 15,800 in Lisbon alone, with many naturally frequenting the city’s gaggle of new hotels. The government has encouraged the hotel sector in more indirect ways too, notably through infrastructure. With new roads, nine airports, and a €40m private hospital, the Azores suddenly feel less isolated. Other parts of Portugal are enjoying similar investment. By 2030, indeed, the government hopes to have splurged some €43bn on major infrastructure projects, including on deepwater ports and a high-speed rail connection.


Porto of call


From the revamped historical hotels to the cobweb of new railway lines, it’s easy to imagine that Portugal’s hospitality star is set to rise forever. But listen to the experts and problems remain. One difficulty ironically centres around those old hotels. They may encourage the restoration of the country’s heritage. Yet the country’s size – as well as historically sluggish planning rules – has made it difficult to build new properties. But as Diogo stresses, this is changing, with Lisbon and Porto growing both quickly and sustainably. “That expansion – tourists are accompanying it,” is how he puts it. “Hotels are opening new locations within these cities and continue to register strong occupancy and daily rates. This means that [up-and-coming] areas continue to be underpinned by both the local population and tourism which is great for the city’s ambience and growth.”


Hotel Management International / www.hmi-online.com


De Almeida is equally sanguine about another challenge that is being faced: labour shortages. To be sure, Portugal may suffer more from this than other nations given its ageing population. But as De Almeida explains, these issues can be mitigated by a bout of generosity. “In the case of Vila Galé,” he says, “we have been able to counter this trend thanks to the constant improvement of the conditions offered to our employees: an average 11% increase in salaries this year, discounts of up to 65% on group services for employees and their families, training, health insurance, education incentives, career progression on merit, and internal mobility opportunities.” It is no wonder then that the company plans to open four further Portuguese hotels this year – and no wonder De Almeida is feeling so optimistic about the future. “I believe,” he says, “that it will continue to be of high quality and that we will progressively see the emergence of new accommodation concepts and new tourism products.” Not quite Magellan, in short, but a sure source of Portuguese prosperity and pride all the same. ●


Above: The Vila Galé Collection São Miguel typifi es why Portugal is such an exciting holiday destination.


Below: Authorities have encouraged the burgeoning hotel sector through new infrastructure plans.


million6.4


The number of visitors to Portugal in the fi rst fi ve months of 2023. National Statistics Institute


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Vila Galé Hotels


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