During a last-minute press conference, the Mayor of Funchal revealed that the measure will be approved at the next City Council Meeting and the next plenary of the Municipal Assembly, in September.

The measure, which comes into force after its approval in September, only includes applications for licences for Local Accommodation in collective housing buildings. The Municipality of Funchal will continue to license AL in villas and rooms.

The decision was taken two weeks after it was made public, by the ‘Confiança’ coalition, of the existence of Local Accommodation in a controlled cost housing development, ‘Residências CORTEL I’.

Last week, the Funchal City Council rejected, in a council meeting, the proposal of ‘Confiança’ to immediately revoke the Local Accommodation licenses in the ‘CORTEL I Residences,’ claiming that it would be “a null and illegal act for not respecting the right to a prior hearing of the interested parties.”

Cristina Pedra reported that the case, which is still under investigation, should be finished within the next two weeks. She further assured reporters that the municipality will hold those responsible for the transformation of apartments in a housing development to be converted into Local Accommodation to account.

According to the National Registry of Local Accommodation Establishments, the municipality of Funchal has a total of 3,184 properties available. Cristina Pedra pointed out that the number represents about 9 thousand beds and 6 thousand rooms, able to accommodate 15 thousand guests.

“Between 2022 and 2025, AL registrations grew by 182%, reflecting an accentuated and continuous demand.” She further stressed that AL represents a 25% total of the hotel capacity currently available on the island.

Samantha Gannon

info at madeira-weekly.com