Ponta Delgada, Portugal, July 31, 2026 (Lusa) - The Short-Term Rental Association (ALA) in Portugal's Azores Islands on Friday estimated that the decline in tourism in the region has had an impact of around €30 million on the Azorean economy, affecting the short-term rental accommodation, catering, retail, transport and tourist entertainment sectors.
In response to data released today by the Azores Regional Statistics Service (SREA) on tourism activity in the first half of 2026, the ALA considers that the figures confirm «a worrying reality», with «a significant decline», particularly in short-term rental accommodation, which «saw a loss of around 80,000 overnight stays compared with the same period last year».
According to the association, chaired by João Pinheiro, the decline represents «an impact of around €30 million on the Azorean economy», with «millions of euros failing to reach the accommodation, catering, retail, car hire, tourist entertainment, transport and other businesses that depend on tourism».
«This slump is being felt twice as hard by businesses in the sector. Whilst revenue is falling, costs continue to rise. Energy, insurance, wages, maintenance, financing, raw materials and services remain under severe pressure, increasingly eroding companies' profit margins and jeopardising their sustainability,» it warns.
The ALA's main concern now centres on the IATA (International Air Transport Association) winter schedule.
«We are still unaware of any concrete measures to improve air accessibility during the low season. There are no signs of a recovery in supply, nor of new routes being introduced that could offset the loss of capacity seen in recent months,» criticises the ALA.
Furthermore, the «absence of low-cost airlines continues to be felt», notes the association, arguing that less competition translates into «fewer available seats, higher fares and a reduced ability to attract tourists», at a time when the region needs to combat seasonality.
The association argues that the «challenging» international context cannot be used as an excuse, emphasising that competing destinations, such as Madeira, continue to see growth in demand, «proving that appropriate accessibility and promotion strategies can yield better results».
The ALA argues that «now is the time to act» so that the Azores can regain competitiveness by strengthening air connectivity, securing new routes and stepping up promotion in source markets.
«Tourism remains one of the main drivers of the regional economy. Losing competitiveness means losing investment, jobs, income and opportunities for the Azores. We still have time to reverse this trend, but that requires swift and effective decisions», argues the ALA.
For the ninth consecutive month, the Azores recorded a decline in the number of overnight stays in tourist accommodation in June, with a fall of 3.8% compared with the same period last year, according to data released today by the Regional Statistics Service (SREA).
«In June, across all tourist accommodation establishments (hotels, short-term rental accommodation and rural tourism) in the Azores, there were 506,400 overnight stays, a figure 3.8% lower than that recorded in the same month last year,» states the SREA's Tourism Activity Report.
This marks the ninth consecutive year-on-year decline in the number of overnight stays in tourist accommodation in the region, according to the preliminary results for June.
APE/AYLS // AYLS
Lusa
