Portugal's Iniciativa Liberal party has called forecasts for Madeira's tourism sector deeply concerning. The party said the numbers confirm warnings it had already raised about a slowdown in the industry.
The party said the regional government and local councils should treat the figures as a serious warning sign. It noted that tourism operators report growing concern about demand.
IL Expects 20% Drop In Bookings This Christmas
The forecasts point to a reduction of up to 20% in tourism demand for the coming Christmas and New Year period. IL did not name the source of the forecasts in its statement.
The party said the political response "cannot be to keep raising, successively and significantly, the costs borne by the tourists who visit us, and to squeeze companies' margins." Instead, it said Madeira needs to stay competitive and attractive.
Party Warns Of Up To 40% Drop Next Summer
Bookings for next summer could fall by as much as 40%, according to the same forecasts cited by IL. The party called it serious that the regional government keeps betting on raising revenue through fees.
It said this comes without proportional investment in diversifying, modernizing and upgrading the tourism offer.
A similar warning was raised earlier this month by ACIF-CCIM, Madeira's main business association. The group linked the risk to a pileup of new tourism fees.
Funchal Assembly Deputy Blames Rising Tourist Taxes
Rosie Bayntun, an IL deputy in the Funchal Municipal Assembly, said Madeira cannot just charge visitors more. She said the island must keep giving tourists reasons to choose it, return and recommend it.
Madeira cannot just charge more to whoever visits it. It has to guarantee that it keeps offering reasons for tourists to choose it, return and recommend the destination. We have long warned that we cannot keep treating tourism as an inexhaustible source of public revenue.
Rosie Bayntun, Iniciativa Liberal deputy, Funchal Municipal Assembly
Bayntun said creating and raising fees without investing in quality and diversification "is a recipe for losing competitiveness." She said it was needed because Madeira faces growing international competition.
She said the 40% forecast shows the risks the party flagged were not alarmism.
This story relates to a wider round of fee increases confirmed for 2027, including a doubling of Funchal's own tourist tax.
IL Calls For Urgent Review Of Tourism Policy
Bayntun said the region cannot wait for bookings to fall and workers to feel the effects before admitting the strategy was wrong.
We cannot wait for bookings to fall, for companies to start feeling the effects and for workers to pay the bill, only to recognize afterward that the strategy was wrong. Tourism is too important to Madeira's economy to be managed by improvisation and purely from the standpoint of public revenue.
Rosie Bayntun, Iniciativa Liberal deputy, Funchal Municipal Assembly
The party added that Madeira's international reputation does not excuse the island from investment, planning or the ability to adapt. It said the island needs a policy that protects competitiveness and lets tourists keep choosing Madeira while businesses keep investing and innovating.
Bayntun closed by saying the forecasts "do not come from nowhere." She said fees should translate into investment and visible improvements, not just cover running costs.
She said the regional government has been slow to react. It is still in time to correct course, she said, but cannot keep ignoring the signals from the sector.
Source: dnoticias.pt
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