Economic crisis and the image of Portugal as a tourist destination: the hospitality perspective

Abstract

Purpose

The purpose of this paper is to analyse the impacts of the economic crisis on the image of Portugal as a touristic destination and the main changes operationalized during this recession period to secure better tourism performance.

Design/methodology/approach

Using official statistical data and other information available, the author takes a critical look at the evolution of the touristic market in Portugal prior to the Eurozone debt crisis, and reflects on the main challenges and possible solutions as they relate to the hospitality industry.

Findings

Crisis, tension and austerity measures are definitely negative factors in terms of the domestic market and tourism demand. However, a new competitive way forward may emerge as governmental policies are implemented to help reduce inefficient micro regional tourism, facilitate financing and venture capital and use digital marketing strategies to reach external markets.

Research limitations/implications

The goal of reducing costs and increasing efficiency as well as gaining a better understanding of the importance of tourism in the current balance of payments is not enough to produce significant improvements in the hotel industry. It is suggested that independent hotels (about 60 per cent of the total in Portugal) should benefit from industry benchmarks, to increase up-selling and cross-selling policies in a customer-focused environment.

Originality/value

The paper reflects on the creation of long-term superior value in the hotel industry and the role of investors, government and associations in this respect and on the importance of committing to this task of value creation.

Citation

Veiga, L. (2014), "Economic crisis and the image of Portugal as a tourist destination: the hospitality perspective", Worldwide Hospitality and Tourism Themes, Vol. 6 No. 5, pp. 475-479. https://doi.org/10.1108/WHATT-09-2014-0032