ADN Madeira has called for the full publication of the economic and financial study supporting Funchal’s proposed tourist tax increase from €2 to €4 per person, per night.
In a statement issued on Sunday, the party argued that the increase requires clear justification, particularly at a time when official indicators point to job losses and signs of a slowdown in important segments of regional tourism.
The proposal was unanimously approved by Funchal City Council on Thursday and will undergo 30 days of public consultation. The municipality intends to introduce the new rate in January 2027.
ADN stressed that the available figures do not indicate a widespread decline in Madeira’s tourism industry, but argued that the authorities must consider the complete picture.
The party wants the study to explain the municipal cost attributable to each tourist overnight stay, which services and infrastructure justify doubling the tax, and the anticipated impact on demand, average length of stay and competitiveness.
It also called for details of how existing tourist tax revenue has been spent, the results achieved for residents and visitors, and whether the current 2.5% payment to the organisations responsible for collecting the tax will remain in place.
Miguel Pita said tourism was too important to Madeira’s economy to be managed through slogans, whether these suggest that everything is going well or proclaim a crisis unsupported by the data.
Speaking after the council meeting, Mayor Jorge Carvalho said the proposed increase was based on an economic viability study and reflected growing pressure from tourism on municipal services and infrastructure.
He explained that, after almost two years, the council now had more concrete information about tourism’s impact on the city. He identified street cleaning, water supplies and network maintenance, roads and cultural provision as areas requiring investment. In some cases, he said, waste collection rounds had to operate more frequently.
The mayor argued that tourist tax revenue should benefit both Funchal residents and visitors, helping the city remain clean, attractive and sustainable while balancing the needs of those who live, work and holiday there. He also defended the council’s approach to managing the revenue in response to opposition criticism.
The proposed regulation introduces several new exemptions. These include stays resulting from disruption at Madeira Airport, when passengers are forced to remain in Funchal, and visits for medical treatment, covering both the patient and one accompanying person.
Youth Centre users would also be exempt, alongside doctors temporarily working in Funchal under contracts with SESARAM.
All matters put to a vote at Thursday’s council meeting were approved unanimously, according to Carvalho. Among them was the award of a €14.7 million contract to build 71 homes at Quinta das Freiras, supported by European funding.
The mayor also addressed the Municipal Assembly’s decision to end free parking for electric vehicles, saying the new charges should take effect soon.
He justified the change on grounds of fairness and the need to increase parking turnover in central Funchal as the number of electric vehicles grows. Free parking, he argued, encouraged drivers to occupy spaces throughout the working day.
Electric vehicles will continue to receive a 50% parking discount. Owners must register their vehicles at the Loja do Munícipe to access the reduction through the municipality’s parking platform.
Asked whether motorcycles might also face parking charges in the future, Carvalho said the possibility would be considered.
Samantha Gannon
info at madeira-weekly.com
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