4 Euros Unjustified When Visitor Numbers Are Slowing
The chamber of commerce asked Funchal's city council to drop a plan to double the tourism tax. The association says the increase from two euros to four euros is unjustified when visitor numbers are slowing.
The ACIF-CCIM submitted its response during public consultation on the proposal. The council has not shown why the higher cost is needed, the group argues. Raising charges now will hurt tourism unfairly while the economy remains uncertain.
Tax Would Climb to Four Euros Per Visitor
Funchal wants to raise the tax to four euros per arrival. The tax already exists. This increase charges all visitors arriving in the city.
2.48 Euros Goes to Discourage Visits
Of the four euros, 2.48 euros goes expressly to discourage tourism. On ship arrivals, this component rises to 3.51 euros per passenger. Either way, the tax mostly penalizes visitors.
The association questions this design. Discouraging visitors conflicts with supporting tourism and the businesses that depend on it.
Funchal Saw Only 0.2% Growth in Q2 2026
Visitor demand is already weakening. In the second quarter of 2026, overnight stays in Funchal grew just 0.2% compared to a year earlier. Stays by foreign residents fell 1.4%.
The region shows the same pattern. Hotel occupancy fell from 83.1% to 78.9%, a drop of 4.2 percentage points. Higher taxes now will make the slowdown worse, ACIF says.
Rising Aviation Fuel May Cut Visitor Numbers Further
Fuel prices remain high, making flights to Madeira more expensive. The region depends almost entirely on air travel. Any rise in airline costs cuts into visitor numbers.
The council should measure the total cost of a trip before adding new charges, ACIF argues. Without lower fares or better value, more visitors will skip Madeira.
ACIF Demands Oversight and Transparency
The association wants a consultative council with public and private sector reps to oversee spending. The council would propose investment priorities, review annual spending plans, and track projects.
The city should also publish an annual report on revenue collected, which projects were funded, their costs and benefits, and all council opinions. Residents, businesses and visitors deserve to know where the tax money goes.
For ship arrivals, ACIF also proposes maritime agents collect directly from ship owners and pass only what they receive to the city. This would eliminate the port authority APRAM as an intermediary. Agents would no longer have to advance their own money or cover interest costs on delayed payments.
Source: jm-madeira.pt
Comments