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Hotel Contradiction

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There seems to be a contradiction in the Algarve Resident about Algarve hotels.
The first article is about the demolition of a restaurant in the Porto de Mos area of Praia de Luz and the building of a hotel in it's place. I don't know what reputation this place had but what about the revenue from it, the employee's? Alright the bigger hotel would employ more in theory, but what happens if the rooms can't be filled?
The second article has the President of the Hotel Association saying that some of the smaller hotels may close due to lack of business.

I think it's ridiculous that there is always this contradiction. If the hotels are closing due to lack of visitors, why build more that they can't fill. Of course there are the ones that close due to retirement, that's a different thing.

Surely in this economic climate, the concentration should be on the existing hotels and ensure their survival. I know this is a worldwide thing and not just PT.

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Didn't read the Resident article Cally - potentially too distressing!!

We came to the area 7 years ago and Porto De Mos is our distant sea view although we don't go there much. It used to be a lovely unspoilt sandy bay and Antonio's restaurant and one other were the only signs of habitation. Since then building went mad, largely at the hands of Oceanico, an Irish owned company. 11 or 12 cranes polluted our (albeit distant) view for 3 or 4 years. Now the place is ruined with rows of hideous boxes but there is not a single crane in sight now as the money has run out. Thank God!

Abntonio's has apparently closed as you say but I will not be going to look at it - too depressing. I will stick to the unspoilt bits. The good news is that the developing has stopped as there is no more money - great eh?

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It's a real shame about Antonio's: it was something of an institution, particularly on Sundays watching the local Portuguese coming down for lunch in their finery mixing with the tourists in their beachware. Let's hope some way is found to reopen it.

When I was last there in July, I wondered why half the gravel car park just above Antonio's had been screened off with corrugated iron and I feared the worst as I went back home and met a trailer coming down the hill with a JCB on the flatbed. There's no other work ongoing in the area, so I guess that was the beginning of the work on the new hotel. I'm back next week, so I'll go and have a look.

I agree with itsmeagain: Porto De Mos has really been spoilt over the past 5 or 6 years and it's getting worse with the monster development taking shape east of Porto De Mos. The Cascade Resort has already opened and it looks as if the much of the area down to the Praia Do Camilo is going to be developed.

On the other side of town, the new road linking Modelo with the dual carriageway that leads up to the A22, is well on the way to completion. It will become a Lagos bypass, which is good in one way. But it will also create a new northern boundary for the town and in due course, though hopefully not for a good while, we can expect the area between that new road and the current northern outskirts of Lagos to be filled in.

I am struggling to understand where all the holidaymakers to fill these new hotels are going to come from. Up to a year or so ago, the only largish hotel in Lagos was the Tivoli. Now there are two new 5-star hotels along Meia Praia, the Cascade, a new one at Porto De Mos with another to come. Then you read about 17% hotel room occupancy rates in the western Algarve during the off-season (by far the weakest figures along the whole of the Algarve) and the government is about to disincentivise tourists from traveling to Lagos by introducing tolls on the A22. It really doesn't make sense.

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UK papers have "winter deals " in the Algarve, under £300 for a week half board with the third week free.
Last year some were doing long stays under £90/week.

The new rules applying IVA to private holiday lets may have been influenced by lobbying from the Hotel industry which has lost out the private lets in recent years.

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I think the motivation behind this is that there is still money to be invested. Banks still need somewhere to to carry on speculating and there is dodgy money that still needs laundering.

It used to be put into villa development like Porto Do Mos and the golf complexes but there is so much property up for sale that there is no future in building villas and apartments any more. So now they've turned to hotels - the fear is that the Algarve might turn into Benidorm as a result.

The only good sign is that we went into Lagos this evening to eat and the centre is packed - absolutely buzzing. Had to go off the main drag to find a restaurant that wasn't packed. So at least the place is not dying - until the fines for unpaid A22 tolls drive them away as Lagosguy points out.

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