Tourism continues to be one of the drivers of the Portuguese economy, especially in regions where mobility depends heavily on air connections. In the Azores, the reduction in the number of passengers at the region’s airports is already having an impact on several travel-related sectors, from accommodation to car rental.
According to , rent-a-car companies in the Azores are registering a significant drop in demand since the end of March, when Ryanair stopped operating on routes in the region. The sector points to a drop of around 30% in the number of customers.
Fewer tourists and fewer rental cars
The decrease in demand is translating into hundreds of lost reservations per day, especially on islands where cars are considered essential for those visiting the archipelago. According to the same source, many tourists depend on car rental to explore different landscapes and access areas less served by public transport.
The departure of the Irish airline coincided with a further drop in regional tourism numbers. The publication reports that, in April, there were 12.3% fewer passengers disembarking at Espírito Santo airports compared to the same period last year.
Impact of Ryanair’s departure
Ryanair provided around 100,000 passengers per year on connections to Ponta Delgada and Terceira. According to the same source, the company justified its departure with the costs associated with airport taxes and European environmental taxation.
The decision immediately had repercussions on sectors that directly depend on the arrival of visitors. Car rental companies are among the most affected, as most tourists reserve a car immediately after purchasing air travel.
Despite the expectation of some recovery during the summer months, businesspeople admit their fears regarding the next low season. According to the same source, forecasts point to revenue drops that could reach 50% in winter.
Tour operators argue that it will be necessary to reinforce the region’s aerial attractiveness to avoid a prolonged reduction in tourist flow. The publication writes that the sector calls for concrete measures to attract new companies and recover lost connections.
Destination dependent on air connections
In the Azores, the impact of changes to air routes tends to be more immediate than in other regions of the country. The distance from the mainland and the geographic dispersion of the islands make accessibility a central factor for tourism.
It is worth mentioning that car rental has become almost indispensable for anyone visiting the archipelago, especially on islands such as São Miguel or Terceira, where many tourist attractions are far from urban centers.
The decline is already reflected in daily activity
Companies in the sector admit that the reduction in movement is already visible on a daily basis. The publication adds that there are fewer advance reservations and lower demand even in traditionally strong periods for regional tourism.
The scenario is also leading businesspeople to warn about possible indirect consequences in other businesses linked to tourism, such as restaurants, maritime activities and local accommodation.
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