The Impact of the COVID-19 Outbreak on the Tourism and Travel Sectors in Portugal
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The impact of the COVID-19 outbreak on the tourism and travel sectors in Portugal: Recommendations for maximising the contribution of the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) to the recovery Draft Final Report February 2021 This publication was produced for review by the Directorate-General Regional and Urban Policy (DG REGIO). It was prepared by Carlos Costa, Expert candidature number 2018-0451, under Contract No 2020CE16BAT068 1 Disclaimer The information and views set out in this report are those of the author and do not necessarily reflect the official opinion of the European Commission. The Commission does not guarantee the accuracy of the data included in this report. Responsibility for accuracy of information contained in the report lies entirely with the author. 2 Table of contents Abstract .............................................................................................................................. 18 Executive Summary ............................................................................................................. 19 1. Introduction ................................................................................................................. 22 1.1 Context and background information ......................................................................... 22 1.2 Context: The COVID-19 crisis and the tourism/travel crisis in Portugal ..................... 23 2. Overall approach and methodology ............................................................................. 24 2.1 Database – secondary information ............................................................................. 24 2.2 Literature review ......................................................................................................... 26 2.3 Scenarios ..................................................................................................................... 26 2.4 Interviews – primary information ............................................................................... 27 2.5 Good practices ............................................................................................................ 29 3. The organisation of the territory of Portugal ................................................................ 30 4. The evolution and the impact of COVID-19 on the travel and tourism market in Portugal 31 4.1 Guests .......................................................................................................................... 32 4.2 Overnight stays ............................................................................................................ 37 4.3 Average length of stay ................................................................................................. 42 4.4 Total income and room income .................................................................................. 43 4.5 RevPAR (revenue per available room) ........................................................................ 45 4.6 Establishments and accommodation capacity ............................................................ 47 4.7 Gross occupancy rate (bed and room) ........................................................................ 48 4.8 Flows at airports and maritime ports .......................................................................... 49 4.9 Number of trips made by tourists (according to the motivation) ............................... 52 4.10 A regional comparative analysis .................................................................................. 52 3 4.11 A critical analysis of the evolution and the impact of COVID-19 on the travel and tourism market in Portugal ..................................................................................................... 59 5. Economic indicators ..................................................................................................... 62 5.1 Tourism revenue ......................................................................................................... 62 5.2 GDP and balance of payments .................................................................................... 63 5.3 Employment ................................................................................................................ 64 5.4 Electronic payments and cash withdrawals ................................................................ 65 6. Administration, organization, and management of the tourism sector ......................... 72 7. Identification and analysis of the strategic documents for tourism at regional level and congruence with the main strategic documents of the regions, including the S3 .................. 78 7.1 Porto and North of Portugal ........................................................................................ 82 7.2 Centre of Portugal ....................................................................................................... 83 7.3 Lisbon Metropolitan Area ........................................................................................... 90 7.4 Alentejo ....................................................................................................................... 92 7.5 Algarve ......................................................................................................................... 94 7.6 Azores .......................................................................................................................... 97 7.7 Madeira ....................................................................................................................... 98 8 Analysis of the EU funds used in the period 2007-2013 and 2014-2020 for the tourism sector (direct investments in tourism, and other investments that might have contributed to the development of tourism) ............................................................................................. 101 8.1 Operational Programmes (2007-2013) – Nationals .................................................. 101 8.1.1. Operational Programme 'Thematic Factors of Competitiveness' ............................... 101 8.1.2. Operational Programme 'Territorial Enhancement' ............................................... 102 8.2. Cross-border, transnational and interregional co-operation ......................................... 104 8.2.1. Operational Programme 'Madeira - Açores - Canarias' .......................................... 104 8.2.2. Operational Programme 'Atlantic Area' .................................................................. 105 8.2.3. Operational Programme 'South West Europe' ........................................................ 106 8.2.4. Operational Programme 'Mediterranean Programme' .......................................... 107 4 8.3. Operational Programmes (2007-2013) – Regional.................................................... 109 8.3.1. Operational Programme 'Norte' (2007-2013) ................................................... 109 8.3.2. Operational Programme 'Centro' (2007-2013) ....................................................... 112 8.3.3. Operational Programme 'Lisbon' (2007-2013) ........................................................ 114 8.3.4. Operational Programme 'Alentejo' (2007-2013) .................................................... 115 8.3.5. Operational Programme 'Algarve' (2007-2013) ...................................................... 117 8.3.6. Operational Programme 'Azores' (2007-2013) ....................................................... 119 8.3.7. Operational Programme 'Madeira' (2007-2013)..................................................... 121 8.4. Operational Programmes (2014-2020) – Nationals .................................................. 123 8.4.1 Portugal 2020 ........................................................................................................... 123 8.4.2. Competitiveness and Internationalisation OP / COMPETE 2020 ............................ 125 8.4.3. Sustainability and Resource Use Efficiency OP ....................................................... 126 8.5. Cross-border, transnational and interregional co-operation .................................... 127 8.5.1. Atlantic Area Interreg .............................................................................................. 127 8.5.2. ESPON Interreg ........................................................................................................ 127 8.5.3. INTERACT Interreg ................................................................................................... 128 8.5.4. INTERREG EUROPE Interreg .................................................................................... 128 8.5.5. URBACT Interreg...................................................................................................... 129 8.6. Operational Programmes (2014-2020) – Regional.................................................... 130 8.6.1. Operational Programme 'Norte' (2014-2020) ......................................................... 130 8.6.1.1. InterReg / POCTEP Programme ............................................................................ 133 8.6.2. Operational Programme 'Centro' (2014-2020) ....................................................... 133 8.6.2.1. POCTEP Projects 2014-2020 ................................................................................. 135 8.6.3. Operational Programme 'Lisbon' (2014-2020) ........................................................ 138 8.6.4. Operational Programme