Local accommodation lost revenues of more than 113 million euros in Lisbon and 23 in Porto in 2020, due to the constraints caused by the pandemic in tourism in these cities, reveals disclosed this Thursday by Nova SBE.
O A study by the NOVA School of Economics and Business (former Faculty of Economics of the Universidade Nova de Lisboa) assessed the impact of Covid-19 on tourism and accommodation in Lisbon and Porto from the comparison of performance data of 50,000 properties registered on the Airbnb platform in 2019 and 2020, such as historical on the number of reservations, average prices and revenues.
Among its main ones, the study indicates that reserves, prices and revenues decreased since the pandemic, Awakens an estimated total revenue loss of 113 million in Lisbon and 23 million in Porto in 2020.
The authors point out that these numbers stand out only to estimate direct losses from the Airbnb platform, considering that “the overall loss is much greater if considered as tourism-related companies indirectly affected.“As restaurants and leisure activities providers, for example.
The report indicates that the pandemic withdrew between 2,000 and 5,200 reservations from local locations in Porto and Lisbon, respectively, and note that, even in the summer months of 2020, the peak tourist season in Portugal, the number of reservations was very below the level that had been reached the year before in the two cities.
According to the document, in the same period there was also an average decrease of about four euros in the prices of reservations, both cities showing a similar pattern of loss of revenue, according to a calculation based on the combination of reservations and Airbnb prices.
The study also highlights that the number of reservations was negatively influenced by the rigidity of the measures to contain the pandemic, “that is, the more rigid the Government measures, the fewer reservations were made”.
AN Occupancy rate decreased, on average, 28% and 25%, respectively, in all parishes of Lisbon and Porto, with the most central tourist spots being the most affected by the reduction in the number of visitors.
As a result of the reduction in the number of tourists, the municipalities also lost income from the occupation tax: by 2020, the City of Lisbon will have lost 2.8 million euros in tax revenue and that of Porto one million euros, estimates Nova SBE.
According to the study’s authors, Airbnb hosts initially lowered the price of those who failed, then took the nominees off the market or converted them into medium-term accommodation and may now “need more time to adapt to the impact of pandemic”.