Portugal is a low-income country, that’s a fact. I’m aware that it’s many things at once:

1. Middle class under pressure: The middle class is being squeezed more and more, and that’s a problem in Portugal.

2. Weak tourism in 2024: In 2024, tourism will be very weak, an effect of the general impoverishment in Europe. Euro 2024 (14-06-2024 to 14-07-2024) and the Paris 2024 Olympic Games (26-07-2024 to 11-08-2024) have contributed to Portugal no longer being the top tourist destination this year.

3. Tourism boom in the past: Portugal had a tourism boom because it was very cheap to visit, both to eat and to stay and sightsee. Compared to other countries in Europe, Portugal is still cheaper to eat in and to walk around, use a cab, etc.

4. Increase in the price of accommodation: The price of local accommodation in Lisbon or in hotels has risen a lot. As a result, some of the poorer tourists have stopped coming to Portugal and are going to Croatia and other possibly cheaper places.

5. Effect of high interest rates: The effect of interest rates going up in 2023 takes between six and twelve months to be reflected in people’s lives, due to the increase in rates being fixed for a while. Many people are feeling the weight of this interest rate rise, which is now starting to fall, but which will take effect in the middle of next year, 2025.

6. Company closures and relocations: If we consider the closure or relocation of large companies, or the reduction in the number of employees who were based in one place, the effect on that place or area is devastating for business – people have dispersed to other places. Many of these buildings are left empty or almost empty.

If we put the above points together, as a whole, a macro effect, and also when we look at the map of the city of Lisbon, we see areas that should be very good for business. They used to be “rich” areas but no longer are. The resident remains the same, because there aren’t many apartment businesses, but the companies are leaving. The problem is that when companies are closing, the surrounding businesses, which live largely off the lives of the companies’ employees, suffer.

In principle, the entrepreneur prepares for difficulties, but if the business in October 2025 is “the same” as it was in October 2024, many more businesses will close, because there is a limit to how much the entrepreneur can use his personal money to keep the company going.

In the aftermath of the Covid pandemic, the number of entrepreneurs is much higher. The businesses that used to be owned by one person and one café or one restaurant have largely died out or gone bankrupt. As a result, the market has reorganized and there are now a greater number of businesses that, instead of one restaurant, have two, three or four, seeking to achieve a positive overall financial balance. But in 2024, these companies are going to have financial difficulties in achieving the desired results.

• How can we encourage the middle classes to consume more?

• What policies can be implemented to attract more tourists to Portugal, especially those with lower purchasing power?

• How can we help small and medium-sized entrepreneurs survive in this challenging economic environment?

• What measures can be adopted to revitalize commercial areas that are losing businesses and customers?

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The Association of Residents and Entrepreneurs of Beato (AMEBEATO) is a non-profit association whose primary objective is to represent, promote and defend the interests of its members, both individuals and companies. Its mission is the development and socio-economic, sporting, environmental and cultural progress of the residents and entrepreneurs of the parish of Beato.

#AMEBEATO #LISBOA #GOVERNMENT #COMPANIES #TOURISM #HOUSING #INTEREST

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