Data on elasticity indicates that Madeira has not yet reached its tourism capacity. This assurance was given by Eduardo Jesus, the Regional Secretary for Tourism, Environment, and Culture, in a recorded message for the opening session of the XVII Annual Tourism Conference (CAT), organized by the Regional Delegation of the Order of Economists.
Although not present in the region, the governor offered his congratulations to the organization. He emphasised the importance of the chosen theme: “a central concept in the economy,” which, when applied to tourism, helps evaluate how demand and supply respond to factors such as prices or income.
Eduardo Jesus highlighted three essential dimensions: the price elasticity of demand, the income from demand, and supply. He recalled that, between 2015 and 2024, the average price per room rose 85% and overnight stays grew 67%, “which proves that demand has followed price increases, with no signs of retraction.”
Based on these indicators, he considered that Madeira maintains room for progression. “If we were at the limit of elasticity, the rise in prices would have caused drops in overnight stays. But that’s not what happened,” he said, adding that demand remains solid due to the destination’s consolidated reputation.
The Regional Secretary went on to confirm that a new tourism strategy will be defined in 2026 and 2027, and the current version of the Tourism Management Plan will be revised. At the same time, measures are underway to reduce tourist congestion at popular points of interest and improve access management, using technology.
“Not everything is done, not everything is well,” acknowledged Eduardo Jesus, advocating planning and innovation solutions to ensure the sustainable future of tourism in Madeira.
Samantha Gannon
info at madeira-weekly.com
