The year was one of rapid recovery for national tourism, against all odds made during the pandemic. Portugal led by example in Europe, leading tourism growth in 2022 and surpassing the record stats of 2019 – the industry’s best year yet in the country. This year’s revenues are expected to be 4% higher than the €18 billion raised during the pre-pandemic, but companies are warning that the current inflationary environment has crushed profit margins and are calling for more non-refundable support.
This week, the government announced a new €100 million package for these companies – €70 million is non-refundable, as part of the reinforcement of the Apoiar program, and there is also a new line, which will be managed by Turismo de Portugal, Consolidar + Turismo, with an allocation of 30 million euros, targeting micro and small businesses struggling to manage the pandemic debt.
Tourism says the support announced by the newly appointed Secretary of State for Tourism, Trade and Services, Nuno Fazenda, is insufficient and asks the government to take action to avoid a darker scenario next year. “The measures are welcome. But are they enough? They are possible, they are never enough,” the president of the Confederation of Tourism of Portugal (CTP) told Dinheiro Vivo, on the sidelines of the Congress of the Portuguese Association of Travel Organizations . and Tourism Agencies (APAVT), which ended yesterday in Ponta Delgada, in the Azores.
It’s not time for more debt
Francisco Calheiros asks the government to anticipate the difficulties of the coming months that may result from the weight of inflation. “More than preventive, the government must be proactive. O firewhich was an extremely important measure,” he says.
The president of the Associação da Hotelaria de Portugal (AHP), Bernardo Trindade, believes that now is not the time for more debt. “Level support is important, but it is important to understand its nature. More debt to companies that are already in debt is always something very debatable. refundable funds,” he points out. . For the hotelier representative, the new Consolidar + Turismo line falls short of expectations as it has a limited scope.
“If we want to support the sector and recognize its importance in the context of the recovery of the Portuguese economy, it is fundamental that we look at the whole spectrum of companies: micro, small, medium and large companies. this support can also take into account the contribution of medium and large companies. If tourism leads the recovery of the Portuguese economy, it does so in all its dimensions,” he guarantees.
Good numbers for 2022 are not enough
Also on the hospitality and accommodation side, the cabinet’s announcement was seen as “very inadequate in light of everything that is going on”. The Associação da Hotelaria, Restauração e Comparees de Portugal (AHRESP) warns that, in the case of Apoiar, the new part of 70 million euros will only be allocated to companies that had previously applied for the program, excluding new companies of this support. The general secretary of the association guarantees that more needs to be done and that the good figures for 2022 are not enough to secure company accounts at a time when costs continue to rise.
“We are in high demand in hotels and restaurants, but what remains in businesses is getting less and less. Businesses have not recovered from the two years of the pandemic, most of them are undercapitalized, and the positive summer is not enough to strengthen and boost treasury Companies are with reduced profitability and very tight margins due to the current situation,” Ana Jacinto applies.
In addition to the ever-increasing expenditure on raw materials and energy, next year’s specifications also include an increase in minimum wages, which means an additional burden on the treasury for those responsible. “In addition to this situation, we have the income agreement that brings significant salary increases. The compensation given to companies is important and defended by AHRESP, but does not outweigh the efforts that companies will make. This does not mean that AHRESP is disagrees with the salary increases, which are absolutely essential and crucial, but we must have the financial capacity to do this,” he argues.
Ana Jacinto regrets that the National Budget for 2023 did not provide a more effective response to companies in the sector, namely due to the temporary reduction of VAT on catering and the tax burden on wage costs.
More measures in 2023
Nuno Fazenda assured that government support for tourism will not stop here and more measures will be announced in the first quarter of 2023. The bosses’ president, despite viewing 2023 with “utter uncertainty”, admits some optimism. “We are hopeful that all the PRR and PRT measures that were defined, namely in the capitalization of companies through Banco de Fomento, will become more effective and that they will help companies to replenish their equity and look to the future with different eyes eyes,” admits Francisco Calheiros.
The Consolidar + Turismo line will be available in early January, enabling companies to obtain interest-free financing from Turismo de Portugal to meet part of the repayments to banks in 2023, with a two-year grace period and a six-year total repayment period year. As for Apoiar, the government’s goal is to end next year with a total allocation of 70 million euros to companies.
The journalist traveled to the Azores at the invitation of APAVT
Rute Simão is a journalist for Dinheiro Vivo
Source: DN
