This year has started with a lot of good news for tourism. With the ending of travel restrictions and the opening of borders in China, tourism trends in 2023 may surpass last year’s and 2019 as well – which were both excellent years for the sector in Portugal.
In order to better understand these foreshadowing, we have talked to Arthur L., Revenue Manager at LovelyStay, who has told us a little bit more about the tourism trends in 2023 and LovelyStay’s expectations. Keep reading!
LovelyStay – 2022 was a very important year for tourism. Will this year be even better?
Arthur L. – Yes, we are very optimistic about 2023. With the end of travel restrictions, it’s possible to see that air traffic is stable and that it has recovered to the level it was in 2019.
At LovelyStay, we are starting the year off very well. Only in the first semester, we can already see better revenue than last year, with Porto having a +47% increase and Lisbon a +58% one, when compared to the same period of 2022.
LS- What are LovelyStay’s predictions in terms of net profitability and average occupancy rate for this year?
In 2023, our net profitability prediction is 25 million euros, with an average occupancy rate of 84%.
LS – In 2022, we’ve had important occupancy rates and ADR (average revenue per occupied room). What’s the strategy for 2023?
AL – This year, our objective is to attain an occupancy level similar to last year’s: an average of 83% occupancy with an average value per night of 139 euros (+20% when compared to 2022) – considering the average between every property managed by LovelyStay.
LS – What are the profitability predictions for LovelyStay properties for one, two, and three-bedroom apartments during the months of June, July and August?
AL – During those three months, our average net profitability for a one-bedroom apartment in Lisbon is over 12 thousand euros, in Porto 9 thousand euros and in the Algarve almost 10 thousand euros. Regarding two-bedroom apartments, we project a profitability of over 17 thousand euros in Lisbon, and almost 14 thousand euros, both in Porto and the Algarve. A three-bedroom apartment in Lisbon should have a 22 thousand euro profitability, in Porto 18 thousand euros, and in the Algarve 20 thousand euros.
LS – Will the fact that China has opened its borders influence the booking volume in Portugal?
AL – Absolutely! In 2019, Chinese guests represented about 8% of the bookings of LovelyStay properties. Therefore, I believe that the opening of borders will influence tourism trends in 2023.
LS – What is the tourists’ profile?
AL – Nowadays, tourists are young travellers, mainly groups of friends, couples, remote workers, and digital nomads, interested in enjoying the sun and lifestyle available in Portugal. Besides, we consider that business travellers still represent a considerable volume of bookings in our properties, mainly in Lisbon and in Porto.
Tourism trends in 2023 with LovelyStay
LovelyStay has been acting in the Tourist Accommodation market since 2015, with a portfolio which includes over 850 medium-high level properties from all over the country. With an extensive client portfolio, the company works with investors and owners of accommodation who want to make their properties profitable, be it in great centres or in the country’s towns and villages.
If you want to know the secret of our success, talk to our team via e-mail: firstname.lastname@example.org.
LovelyStay’s 2022 results
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