Hotel Prices Fall in Portugal

2nd August 2010 (Last Updated August 2nd, 2010 18:30)

Hotel prices in most of five-star properties have fallen by 9% in comparison with 2007 in Portugal, due to the effects of the global economic crisis, according to a report. The most significant fall in prices has been noted in hotels in the Algarve region with a 24.5% drop to €48.17

Hotel prices in most of five-star properties have fallen by 9% in comparison with 2007 in Portugal, due to the effects of the global economic crisis, according to a report.

The most significant fall in prices has been noted in hotels in the Algarve region with a 24.5% drop to €48.17 ($62.7).

The average price for a hotel room fell to €61.18 ($79.8) in May this year from the €66.78($87) charged three years ago, stated the Portuguese Hotel Association.

Prices in five-star hotels have also been affected, with an overall drop of 7.5%.

Weaker demand has been affecting the nation’s hotel market since 2008, which has seen a periodical reduction in prices.

Alentejo is the second most affected region, where average rates fell by 10% to €44.33 ($57.8) while prices in Lisbon, Madeira and the Azores fell by 9%, 5.7% and 1.8% respectively.

Hotels in northern Portugal recorded a slight rise in room rates, as they raised prices by €2.18 and hotels in Beiras raised their prices by around 1.2%, according to theportugalnews.com.