Is Funchal Suffocating from Unregulated Tourism?
A local debate has intensified in Funchal, as concerns mount over the city’s rapid and uncontrolled tourism development. Miguel Silva Gouveia, a city councilor from the ‘Confiança’ coalition, expressed strong criticism during this Thursday’s city council meeting, highlighting what he described as an increasingly unlivable environment for residents.
“Today, Funchal is a city suffocated by unregulated tourism,” said Gouveia in a public statement. He pointed to traffic congestion, parking shortages, high housing costs, and overcrowded pedestrian zones as key problems affecting daily life. “The historic center has become a maze of outdoor cafés, where people can no longer move with dignity,” he added.
the historic center has turned into a maze of outdoor seating areas, where there’s no longer any room to walk with dignity.
Miguel Silva Gouveia, ‘Confiança’ coalition
Housing Crisis Deepens Amid Tourism Pressures
One of the most pressing issues raised was the continuing loss of housing to short-term tourist rentals, known locally as Alojamento Local. Gouveia warned that lax licensing and lack of oversight are driving out residents. “The unchecked licensing of tourist accommodations keeps pushing families out, worsening the housing crisis,” he said. He also criticized the city’s handling of tourism-related traffic, calling for a reassessment of how tourism is managed in Funchal.
Government Defends Its Approach
In response to the criticism, Vice-President of the City Council Bruno Pereira acknowledged the challenges but defended the administration’s position.
We are working to find a balance between tourism and quality of life for residents
Bruno Pereira, PSD.
However, Gouveia argued that previous proposals from the opposition to improve regulation have been ignored. He cited efforts by the ‘Confiança’ coalition to revise the city’s tourism strategy and create restricted zones for short-term rentals, both of which were rejected by the ruling majority. “The current leadership continues to avoid real solutions,” he said.
Public Services Under Strain
Beyond housing and traffic, the effects of tourism have also been felt in public cleanliness and infrastructure. Gouveia described a city that is becoming “dirty and neglected,” far from the clean image that residents take pride in. He criticized what he sees as an overemphasis on festivals and public image at the expense of long-term planning.
One of the few victories for the opposition was the eventual adoption of a tourist tax - initially proposed by ‘Confiança’ - now generating over 12 million euros annually. Yet Gouveia claimed that its use remains unclear and uncoordinated: “There’s no concrete plan to ease the pressures caused by tourism.”
Despite the tensions, the council did reach agreement on several matters, such as supporting new infrastructure projects and cultural initiatives. Still, key urban planning proposals were met with hesitation, signaling a divided vision for Funchal’s future.
Source: Diário de Notícias da Madeira
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