The distraction of holidaymakers and the lack of security at some “AL” flats have led to a rise in thefts at Local Lodging establishments, mainly those located in the “Baixa” district of downtown Lisbon. In response, law enforcement (“PSP”) has started a prevention program with the owners called “Blue Lock”.
The water regulator advocates that establishments used for local housing should pay for water as “non-household” users. The increase is already in place in several councils. However, there are other centres, such as Lisbon, where the municipality has reimbursed the extra charge.
Staying in a hotel or local lodging accommodation in Lisbon became more expensive as of the first of the year due to the increase in the Municipal Tourist Tax from one to two Euros. The local municipality estimates additional revenues from the measure of ±_35 million in 2019.
Despite positive evolution in recent years, Lisbon still has many buildings that are either abandoned, poorly maintained or even in ruins. According to data from the Lisbon Chamber of Commerce in 2018, there are 2,626 buildings in the city declared totally or partially vacant and 7,230 in poor condition, concentrated in the city’s historic neighbourhoods. Experts speak of the need for €4 billion in urgent rehabilitation works in the capital and over €24 billion nationwide.
In Portugal, there are ±1.1 million second residences, according to National Statistics Institute data, comprising 80% of “AL” offerings. These dwellings have a low utilisation rate: less than 30 days a year. When engaged in Local Lodging, the average yield per owner is €11,000 euros. Lisbon and Porto tell a different story. In these two urban areas, “AL” is driven primarily by investment properties, not second residences, and foreign buyers.
The average cost of Local Lodging in Porto approached the values registered in Lisbon – approximately €100 euros per night – according to recent data calculated and released by Confidencial Imobiliário. In 2017, there was a 30% gap between the 2 cities. According to the index, the highest average daily rate was recorded in Lisbon in the Chiado-Bairro Alto district (€138).
Lisboa will increase the Municipal Tourist Tax in 2019, from one to two euros per night, to strengthen urban cleaning and transportation in neighbourhoods with more pressure from tourism. Initially approved in 2014, the Municipal Tourist Tax began to be applied in January 2016 on the overnight stays in the hotel units or local accommodation, then set at one euro per night up to a maximum of seven euros.
795 out of 806 tourists surveyed (98%) said that they feel safe in Portugal. A survey conducted by the “Universidade Nova de Lisboa” (New University of Lisbon) revealed that only “natural beauty and heritage” have more relevance than security when choosing to visit Portugal.
From March to October, tourists will be charged €1.50 per day, up to a maximum of seven consecutive days. Lisbon has also been negotiating to double its Tourist Tax to €2. The Algarve Tourist Tax is expected to yield 20 million euros per year to Algarve municipalities. These revenues are to be used in inter-municipal projects in the areas of tourism promotion, heritage rehabilitation and cultural interventions.