Local housing, called Alojamento Local (AL) in Portugal, generated a €980 million turnover in the Algarve in 12 months, according to the latest data released by the Portuguese Hotel and Catering Association (AHRESP).

The study showed that there are 32,405 AL units in the Algarve, such as Bed & Breakfast guesthouses and Airbnb, providing jobs for around 20,000 people. Between July 2018 and June 2019, more than 5,000 new premises opened their doors, contributing to the €980 million turnover.

Undertaken in partnership with the Lisbon University Institute (ISCTE), the results of the study were presented in Albufeira, home to the highest number of registered AL in the region (7,361). Together with Loulé (5,033) and Portimão (4,319), the areas make up over 50% of all AL in the Algarve.

Across the region, AL accommodation comprises 77% apartments, 21.3% villas, 1.3% B&Bs, 0.3% hostels and 0.1% rooms. The study itself surveyed 233 accommodation owners, with a sample of 2,947 units.

The impact of AL

According to the data presented, the AL market in the Algarve generated a turnover of €981.5 million per annuum, the equivalent of 19% of the region’s GDP and bringing in around €160 million to the State.

Indirectly, through visitor spending on food, leisure, travel, shopping and so on, the total impact of AL is in the region of almost €4.9 billion.

As for the return of investment for property owners, almost 70% of business people say their expectations were met and 23.5% admit they were surpassed, meaning that almost all investors remain in the sector.

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