6 Reasons Why You Should Consider Investing In Portugal’s Hospitality Industry

As a run up to our up coming webinars on Portugal Golden Visa Investment Fund series, where we will be inviting experienced fund managers from different industries to speak about their funds and industries.  We will have a series of articles related to funds.  Our most recent one was related to Open-ended and close-ended fund.  In this article, we will be focusing on hospitality industry, and our next article shall be on renewable energy, two of the most promising industry.

Here are the Top 6 Reasons to Invest in the Portuguese Hospitality Sector

1. Record Breaking Growth in the Industry:

Portugal has experienced unprecedented tourism growth, with 2023 marking a record-breaking year.  The country welcomed

• 30 million guests, 18.3 million of whom were foreigners, showing increases of 13.3% and 19.1%, respectively, compared to 2022. 
• 77.2 million overnight stays, up 10.7% from 2022, and foreigners accounting for 53.8 million of these stays, the hospitality sector is thriving.  

While the world tourism globally is still hasn’t went back to pre-pandemic figure of 2019, Portugal has long past the benchmark and the growth surpasses pre-pandemic (2019) levels by

• 10.0% in overnight stays
• 10.7% in guest numbers
• 18.9% in revenue from tourism

Number of international tourist arrivals worldwide from 2005 to 2023, by region(in millions)

2. Tourism Representing a Large Part of a Stable and Growing Economy:

Portugal’s economy is stable and growing

• GDP increased by 9.7% in 2023, reaching around 266 billion euros. 
• Tourism sector alone contributed 9.5% to the country’s GDP in 2023. 
• Tourist revenue reached 25.1 billion euros, an 18.9% increase from 2022, highlighting the sector’s significant economic impact.

3. Outstanding Hotel Sector Performance:

The hotel sector in Portugal is performing exceptionally well, driven by diverse destinations such as city breaks in Lisbon and Porto, beach vacations in the Algarve, and nature retreats in Madeira, Azores, and Alentejo. 

High occupancy rates are common, with prime regions like Lisbon and Porto often exceeding 70% year-round and peaking above 90% during the high season.

Look at the numerous travel awards Portugal got in the most recent 2023 World Travel Awards.

4. Substantial Growth in Emerging Markets:

Emerging regions like Alentejo and the Azores have seen remarkable growth, with a 20% increase in tourism.

Investing through a fund provides exposure to these up-and-coming areas, offering potentially higher returns as these markets develop.

5. Promising Projections for Coming Years:

With a new airport decided in Lisbon and the TGV line connecting Lisbon to Madrid, the tourism sector is set for further growth.  Early 2024 data shows 

the tourist accommodation sector grew 7.0% and overnight stays grew 6.4%, amounting to EUR 276.4 million in total revenue (+13.0%) and EUR 202.1 million in revenue from accommodation (+13.1%). (statistics from ine.pt)

This infrastructure improvement will make tourism an even stronger and more profitable sector.

6. Fourth Most Searched Destination Worldwide:

According to Condé Nast Traveler, Portugal was the fourth most Googled travel destination globally last year. This heightened global interest positions Portugal as a formidable competitor to top European destinations like France, Spain, Greece, and Italy.

Supporting Statistics 

Top 5 Nationalities for Tourists Revenue in Portugal in 2023:

  – United Kingdom: €3.8 billion (up 16.1%)
  – France: €3.1 billion (up 7.2%)
  – Germany: €2.8 billion (up 19.4%)
  – Spain: €2.8 billion (up 16.0%)
  – U.S.A.: €2.5 billion (up 31.5%)

Top 5 Nationalities for Tourists in Portugal (2023):

  – United Kingdom: 9.9 million (up 9.4%)
  – Germany: 6.1 million (up 12.9%)
  – Spain: 5.5 million (up 7.7%)
  – France: 4.6 million (up 6.2%)
  – USA: 4.6 million (up 32.9%)

Sources: INE (Statistics Portugal), Banco de Portugal, 2023 

Tourism remains a fundamental economic activity for generating wealth and employment in Portugal. With back-to-back years of record-breaking tourism numbers, the country’s hospitality sector offers solid and sustainable returns for investors.

Investing through a fund provides professional management, diverse opportunities, and the ability to capitalize on Portugal’s continued growth and global appeal.

The Hospitality Expansion Fund: A Premier Investment Opportunity in Portugal’s Booming Hospitality Sector

The Hospitality Expansion Fund offers a unique and highly attractive investment opportunity within Portugal’s flourishing hospitality industry with

– €200,000 UPFRONT RETURN

– BUY BACK GUARANTEE

Key Advantages of the Hospitality Expansion Fund:

1. Rapid and Substantial Returns with Upfront Payments:

– Option A: Enjoy a 40% return paid upfront within one month of subscription. This immediate return enhances liquidity and provides swift financial benefits.
 – Option B: Benefit from a steady 5% return per year, plus an additional anticipated return of 3% per annum at the fund’s exit, totaling a 24% return. This option combines consistent income with significant end-term gains.

The fund’s structured payout options cater to different investor preferences, ensuring rapid and substantial financial returns.

Contact Us To Learn More About The Funds

Projected Fund Payout Overview:  The graph illustrates the projected returns from the Hospitality Expansion Fund.

Option A – The upfront return of 40%, paid within the first month of subscription, is depicted in blue, to be paid within one month of subscription. 

Option B – The consistent annual returns of 5%, represented in pink + an anticipated additional return of 24%, highlighted in red, showcasing the cumulative benefits at the fund’s exit.

This structured payout model underscores the fund’s commitment to providing both immediate and long-term financial gains while ensuring investor security.

2. Buy-Back Guarantee:

The fund includes a buy-back guarantee from the General Partner, ensuring the return of investment. This feature aligns with investor interests and provides an added layer of security.

3. Low Risk, High Potential Growth:

The fund has low exposure to risk while tapping into the high growth potential of Portugal’s hospitality sector in Alentejo, one of the top growing area in Portugal, alongside Acores.  The country’s robust tourism sector, with record-breaking numbers in 2023, underscores the promising growth prospects.  Advanced upfront return and a buy-back guarantee provide unmatched security and risk mitigation.

4. Cost and Tax Efficiency:

The fund is designed to be cost-effective and tax-efficient, maximizing net returns for investors.  Fund income and capital gains are tax-exempted for non-tax residents.

5. Regulated Instrument:

As a regulated investment instrument, the fund adheres to strict regulatory standards, ensuring transparency, accountability, and investor protection.

The Hospitality Expansion Fund combines high returns, enhanced security, and significant growth potential, making it one of the best investment opportunities on the market. This unique fund is tailored for investors seeking a secure and profitable venture in Portugal’s booming hospitality industry.

Contact Us To Learn More About This Fund

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