Even though 2010 was called a promising year and many popular destinations of Europe ended it with growth, hotels in Lisbon don’t feature same results. While experts talk about full recovery of most popular markets in Europe, the capital of Portugal is far away from this.
In the report provided by HVS we can see that the ADR level has remained low. Even though the average occupancy grew in 2010, it may steadily decline during this and next year. 5-star accommodations showed best results during the previous year; nowadays they are getting less popular and this will depress other segments of the city’s hotel market. Approximately 65% of visitors have come from Europe, mostly from other parts of Portugal. Currently the country is in tough economic situation and its problems are among the worst ones on the continent. It is forecasted that the domestic product will go down until the end of 2014.
In 2010 Lisbon International Airport had greeted a record number of visitors – 14 million of travellers. The figures of 2011 look even more promising, but hotels in Lisbon have had to decrease their rates to attract more visitors, so no improvement in RevPAR is expected at least until 2013. One more interesting fact – even though the number of visitors grew in 2010, the occupancy was up only in 5-star hotels. It seems that many people simply didn’t spend nights in hotels of Lisbon.