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AL Accommodation Revenue Increases by 23%

According to data released this morning by the Regional Directorate of Statistics of Madeira (DREM), the total revenue from tourist accommodation in the Region increased by 23% in 2023.

Estimates, referring to December 2023, indicate that 86.2% of tourist accommodation establishments in Madeira registered a movement of guests this month, with hotels claiming the highest percentage of establishments with guest movement (91.3%), followed by local accommodation, with 86.0%, and tourism in rural areas, with 85.7%.

In December 2023, the number of overnight stays in tourist accommodation was close to 686.7 thousand, which translates into an increase of 2.9% compared to December 2022 (667.2 thousand).

Excluding local accommodation with less than 10 beds, overnight stays in tourist accommodation fell by 1.0% compared to December 2022, contrary to the change seen at a national level (+8.2%). Total revenue and revenue from accommodation in December 2023 increased by 11.1% and 13.4% year-on-year, respectively, standing at €45.0 million and €30.4 million. In the country, in the month under reference, the year-on-year changes were also positive, both in total revenue (+13.9%) and in revenue from accommodation (+15.0%).

From January to December 2023, overnight stays in total tourist accommodation in the Region increased by 13.6% year-on-year, exceeding 10.9 million, while total revenue and revenue from accommodation increased by 23.2% and 26.2%, respectively, to around 652.7 and 460.7 million euros.

Hotels accounted for 71.4% of overnight stays in December 2023 (490.4 thousand), decreasing by 3.3% year-on-year, while local accommodation (26.3% of the total) and rural tourism (2.3% of the total) grew by 23.9% and 8.5%, in the same order. From January to December 2023, hotels accounted for 73.9% of overnight stays, showing a growth of 8.1%, while local accommodation accounted for 23.8% of them, representing an increase of 34.0% compared to the previous year. In turn, rural tourism added 2.3% of overnight stays, which rose 19.8% in this segment compared to 2022.

As for overnight stays in the three main international source markets, in December 2023, there were negative year-on-year changes in the French (-19.4%) and British (-6.6%) markets, while the German market showed an increase of 4.5%. Overnight stays from the national market increased by 0.9% compared to the same month of the previous year.

Comparing the reference period with December 2019 (pre-pandemic period), the activity in tourist accommodation showed a growth of 40.0% in overnight stays, with the market of residents abroad registering an increase of 33.4%. There were positive changes in the German market (+24.2%), the French market (+13.5%) and the British market (+12.8%). In turn, the domestic market also showed an increase (+88.2%).

In cumulative terms (from January to December 2023), the four main issuing markets also showed year-on-year growth in this variable, with the German market showing the most significant increase, of +14.7%, followed by the markets of France, Portugal, and the United Kingdom, with year-on-year increases of 12.9%, 5.3%, and 3.5%, respectively.

In December 2023, the value of the average stay in tourist accommodation increased slightly compared to the same month of the previous year (4.64 nights), standing at 4.65 nights. On a year-on-year basis, the average stay decreased from 4.80 nights in 2022 to 4.66 nights in 2023.

The bed occupancy rate of tourist accommodation in the reference month was 49.3%, 0.1 percentage points (p.p.) lower than in the same month of the previous year. From January to December 2023, this indicator amounted to 65.2%, 3.7 p.p. more than in 2022. In turn, the room occupancy rate reached 58.2% (58.8% in December 2022). For the twelve months of 2023, this rate stood at 75.5%, equivalent to an increase of 4.8 p.p. compared to 2022.

In December 2023, the RevPAR (revenue from accommodation per available room) was around 57.36 euros in the tourist accommodation set (excluding local accommodation under 10 beds), +10.7% more than in the same month of the previous year. Compared to the value of December 2019 (34.15 euros), there was also an increase of +68.0%. If the analysis is restricted to hotels, that indicator showed a year-on-year growth of 12.0%, with its value standing at 61.87 euros (55.24 in December 2022). From January to December 2023, there was a RevPAR of €73.04 in tourist accommodation (+22.1% year-on-year) and €78.35 in the hotel sector (+22.8%).

In turn, the revenue per room used (ADR) in tourist accommodation increased from €88.07 in December 2022 to €98.52 in December 2023 (+11.9% year-on-year change). In 2023, ADR grew by 14.3% to €96.77.

Samantha Gannon

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