PORTUGAL
Economy, tourism, policy and
investment
“
PORTUGAL
Economic outlook
Portugal: Key Data
The West Coast of Europe
Area: 92.000 km2
Coastline: 2.600 km (including Atlantic
islands)
Population: 10,6 million people
Education: 24% has a university degree
Languages: 60% speak a second language
Economic Outlook
Portugal GDP forecasts,
2017
GDP (Growth %)
[Portugal and Euro Zone]
1,5
2011
-1,8
1,6%
-0,9
-0,3
2012
2013
-4,0
-1,1
1,2
2,0
1,7
2014
2015 (e)
2016 (e)
0,9
1,6
Euro Zone
Portugal
1,4
Unemployment Rate (%)
[Portugal and Euro Zone]
European
Commission
12,9
15,8
16,4
14,1
12,6
11,2
Portugal
Euro Zone
10,2
11,4
12,0
11,6
10,9
10,0
2011
2012
2013
2014
2015 (e)
2016 (e)
(e) Estimated
Sources: INE Statistics Portugal; Bank of Portugal; European Commission; Eurostat
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PORTUGAL
Tourism economic outlook
Tourism is a Strategic Activity
for the Portuguese Economy
5,7
6,1
6,3
6,5
2016
6,1
2015
6,0
7,0
Tourism in Employment (%)
6,7
6,2
5,5
5,1
4,6
Tourism Receipts in GDP (%)
2011
2012
2016 provisional
Sources: INE – Statistics Portugal; Bank of Portugal
2013
2014
2011
2012
2013
2014
2015
2016
Tourism is a Strategic Activity
for the Portuguese Economy
In 2016,
Tourism Receipts represented…
2016 provisional
Sources: INE – Statistics Portugal; Bank of Portugal
Tourism Balance (million €)
5 Countries are the
Main Tourism Markets
2016 Overnight Stays per region (Share %)
2016 Overnight Stays per nationality (Million)
Portuguese
15,2
(28%)
Foreign
AZORES
NORTH
3%
13%
38,3
(72%)
CENTRE
9%
OVERNIGHT STAYS
(MILLION)
UK 9,2
LISBON
Germany 5,3
24%
Spain 4,0
ALENTEJO
3%
France 3,9
Netherlands 2,4
Others 13,6
Total = 53,5 million
MADEIRA
14%
ALGARVE
34%
2016 provisional
Sources: INE Statistics Portugal
Growth in Tourism Demand
Overnight Stays (Million €)
33,8
35,5
37,4
39,4
39,7
41,6
2000
2005
2010
2011
2012
2013
45,9
48,9
2014
2015
53,5
2016
Receipts (Million €)
5 720
6 198
2000
2005
2016 provisional; Sources: INE Statistics Portugal
7 601
8 146
8 606
9 250
2010
2011
2012
2013
10 394
2014
11 451
2015
12 681
2016
Hospitality Financial Performance
2015/14
+36%
+14%
+9%
EBITDA
(Million €)
Gross ValueReceipts
Added
Turnover
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PORTUGAL
Tourism Competitive Advantages
Competitiveness
According to the World Economic
Forum’s Tourism Competitiveness
Index, Portugal is the 15th most
competitive country worldwide
Competitiveness in Tourism Resources
A reference for Sun and Sea…
Mild Climate in Europe and 850K of Sandy
Beaches (that attract 90% of all
international tourists)
There are 314 distinguished quality beach
zones
Portugal has 209 beaches awarded the
"Beach Access, Beach for All“ project
Competitiveness in Tourism Resources
 Urban Quality of Life
 800 national monuments and more
than 2,500 buildings classified as
having public interest
 15 UNESCO World Heritage sites
plus 3 Intangible Cultural Heritage
of Humanity
Rich and diverse
culture
Competitiveness in Tourism Resources
 Natural resources
 36 Protected areas
Unique and
Preserved Nature
 Protected areas occupy 23% of
total country
Competitiveness in Tourism Resources
Ideal Place for
any Sport
 Best Golf Destination in
the World, with 88 golf
courses and over 1.8
million rounds of golf
 Biggest Wave in the
World (Nazare) and
renowned place for
Surfing
 Diversity of Landscapes
for Cycling and Walking
Competitiveness in Tourism Resources
 Competitive conditions in the
property sector (prices)
 Clear and transparent legal system,
tax rules, facilities for obtaining
residence permits
Special tax regime for non-habitual
residents
Great Opportunity for
Residential Tourism
Competitiveness in Tourism Resources
 Leading Destination for the Meeting
Industry (7th on the European ICCA and
12th of the world ranking)
 1st in Labour Skills (World Economic
Forum’s Global Competitiveness Index
2016-2017 within 138 countries)
 Safe and stable country (5th most peaceful
country in the World)
 Excellent quality/price ratio
Business Environment
3rd in starting a
business within Europe.
Takes 4 - 5 days and 5
According to Doing Business 2017
procedures
published by the World Bank,
Portugal is the 25th easiest
country in the world and the
15th within the Europe, Registering a property
takes just 1 day and 1
among 190 countries analysed.
process
SIMPLEX+
Leveraging Technology
Portugal ranks 12th position among EU28 countries in number of high-speed
fixed broadband
Tourism 4.0 as major program to bring
inovation and digitalization to Tourism
Enterprises
Strategic Location
 Excellent and privileged economic
relations between Portugal, Brazil,
Angola and Mozambique
 Daily flights to main European cities,
South America, North America and
Africa
Attractive Consumer Market
(Million):
Portugal 10,6 M
Iberian market 51 M
European market 495 M
Portuguese speaking 220 M
countries
Air Conexion HUB
The country is well served of air connections to the main outbound markets
Lisbon is a international hub to America, Africa and Europe
EUROPE
ASIA
NORTH
AMERICA
•
•
Lisbon is connected to 102
international cities: 64 in
Europe; 21 in America, 15 in
Africa and 2 in Asia
Porto to 59: 52 in Europe, 5 in
America, 1 in Africa and 1 in Asia
AFRICA
SOUTH
AMERICA
AUSTRALIA
•
Faro to 55 European cities
•
Funchal to 35 European cities
•
Ponta Delgada to 9 international
cities: 6 in Europe and 3 in
America
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PORTUGAL
Attracting Foreign Investment
Incentives – General Framework
Financial Incentives
European
Framework
2014/ 2020:
support
investment of
EUR 21 billion,
which favours a smart growth,
based on knowledge, innovation
and internationalization of its
economy. Focus on human
resources development and job
creation
Attractive Loans
Partnership with
financial system:
is available to companies at reasonable
costs and with long reimbursement
periods
Venture Capital
The capitalization of Portuguese
companies is a strategic priority
for the Portuguese Government
In this context, the Government
new
venture capital
instruments
launched
Fiscal Incentives
Portugal has increased its
Tax
Incentives for
Productive
Investment
competitiveness in
Development of Tourism and
reduction of regional
disparities, induce the
creation of jobs
Investment Opportunities – Living in Portugal
OBJECTIVES
ADVANTAGES
Reduce Seasonality, create a constant demand of products and
services, improving their quality + creating and maintaining
jobs and building a destination image of excellence.
- Huge diversity of landscapes and environments in a small
area
- Safe investment in a Peaceful and stable country
- Possible rentability of properties
FINANCIAL
SUPPORT
Tax regime for non-habitual residents -a special regime for nonhabitual residents, aimed at attracting foreign investors
through favorable income tax rates. Discover more at
http://www.livinginportugal.com/de/
Investment Opportunities – REVIVE
OBJECTIVES
 Properties owned by the State with
architectural, historical and cultural
value.
 Goal is restoring properties related to
Tourism
PROCESS
FINANCIAL
SUPPORT
 http://revive.turismodeportugal.pt/
 Properties shall be subject of Public Bid
• Available credit lines with mutual
guarantees and specific credit lines
with Banks
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PORTUGAL
The Future
10 challenges for a 10 year strategy
1. PEOPLE - Promoting jobs, qualifying and valuing people and increasing income of tourism professionals
2. COHESION - Mitigate regional asymmetries
3. GROWTH IN VALUE - Growing more than competition in tourism receipts
4. SEASONALITY – Reduce seasonality
5. ACCESSIBILITIES - Reinforcing accessibility to Portugal and promoting mobility within the territory
6. RESEARCH - Understand inbound markets and adapt public & business strategies to trends and changes in
demand
7. INNOVATION - Stimulate innovation and entrepreneurship
8. SUSTAINABILITY - Ensure the preservation and sustainable economic valuation of cultural and natural heritage
9. SIMPLIFICATION - Simplify legislation and streamline administration
10. INVESTMENT - Guarantee financial resources and ensure their proper implementation
10 years from now
Tourism Strategy 2027 – Lead the Tourism of the Future
To affirm tourism as a hub for economic, social and environmental
development throughout the whole territory, positioning Portugal as
one of the most competitive and sustainable tourist destinations in
the world.
Strategic Axes for Tourism
1. VALUE THE TERRITORY
2. STIMULATE THE ECONOMY
3. POTENTIATE KNOWLEDGE
4. GENERATE NETWORKS AND CONNECTIVITY
5. HIGHLIGHT PORTUGAL
10 years from now
SUSTAINABILITY
Recent examples
PORTUGAL
thank you!