Madeira News Blog

(27th August). ‘Passenger That Travel On 28th And 29th Need To Check Before Going To The Airports – ANA-Airports of Portugal appeals to passengers to contact the airlines and travel agents’. The first two day strike of TAP airlines starts tomorrow, involving staff represented by 5 trade unions. Cancellations and delays are expected, and ANA, the airports operator, wants to avoid unpleasant situations at the airports. More information is published in today’s newspapers and on the TAP website (there is a link on the right hand side of this page), or ring 218 431144. The next strike is planned for the 11th and 12th of September.

‘More Fish (Long Bill) And Tourists / Fishermen – August has more customers, but it doesn’t hide the crisis facing the industry’. "The business is no longer what it was. Customers are fewer in number, hence the month of August has around 30% less than the same period last year. However, it is noted that demand is much better than that of early-season (June), because in that month the (boat) charters fell almost 50%". So says Pedro Gonçalves of the company NAUTISANTOS, Ltd. "Yet we have had charters almost every day, which is always good" he says, referring to a mini recovery for his big game fishing business. There are many long bill fish this season says another businessman in the sector, saying that warmer seas are bringing them in closer to shore. Madeira is known as one of the best places in the world for this type of fishing, and in 2008 430 Blue Marlin catches were made, 12 of them weighing over 1,000 pounds (454 kgs). One other attractive feature is that from port to the best fishing zones is very short, needing just 5 minutes to be able to start fishing. In other European big game fishing locations the travelling is usually an hour or more.

‘New Tourist Office In Rossio’. The deal has been done, but the official announcement won’t be until September. The Regional Secretary of Tourism and Transport has already signed the lease with a company for the use of a space that will be between the Rossio and Praça do Comércio, in downtown Lisbon. The old office for Madeira Tourism in Portugal closed suddenly some months ago.

‘Hotels On Madeira And The Algarve Maintain Staffing Levels – The main hotel groups say that demand is sufficiently good to maintain jobs’. The regions most affected by rising unemployment in July were the Algarve and Madeira, according to the Institute of Employment and Vocational Training, but the hotels say they have maintained the employment levels from previous years. Figures released in July showed that unemployment had increased over a year by 50.3% on Madeira, and 104.2% in the Algarve. The Pestana Group, with 10 hotels here and 8 in the Algarve, says it has kept the same number of workers, and taken on temporary workers. Vila Galé group, also operating in both locations, also said it had not cut back on staff. It just shows the profits they used to make in the good old days then, if they can maintain the same overheads with much reduced revenue.

(26th August). ‘Salary Bank Accounts* Save Up To 240 Euros Per Year – "As a rule, they are free of maintenance costs (bank charges) or do not charge an annual fee for the cards". This applies especially if managed through the Internet, says a study by DECO, the Portuguese Association for Consumer Protection. The study covered 19 banks, of which 6 claimed to provide an "account for citizens with low incomes", i.e. providing a minimum level of banking services. DECO is challenging the Ministry of Finance to create a citizen’s account, accessible to any customer, with reduced maintenance costs and a free debit card. Deco also notes that some transactions can be carried out at multibanco (ATM) machines for less than it would cost on the telephone or at the bank counter. The full report is due to be published next month. It is my understanding that a conta-ordenado*, is for people working and having salaries paid in, but I think it is the same account that I have for example, with nothing being paid in on a regular basis, but is subject to no bank charges as long as a minimum balance is maintained, but I am not 100% certain, and it may vary with different banks.

(14th August). Today’s main news headline : ‘Slowing Of The Crisis Surprises ACIF – The opinions were divided yesterday in the country on the meaning of the increase in PIB (GDP / Growth) of 0.3%. For the government, the economy came out of the ‘red’ and has arrived at the beginning of the end of the crisis. Economists advise prudency. For now, ACIF expect results from the improvement’. Despite the previous days expectation of a further negative showing for growth in the Portuguese economy (-0.6%), the actual result surprised everyone, with 0.3% growth, and matching the results also announced earlier for France and Germany. The President of the Commercial and Industrial Association of Funchal (ACIF) considers it a "good surprise" with the news announced yesterday, that the Portuguese economy is reviving, given the announcement of the increase of 0.3 percent in the Gross Domestic Product in the second quarter of this year. He says that the improvement will also be reflected on Madeira. Francisco Santos, also regional director of the Millennium / BCP bank, told the Diário that the positive figures released by the National Statistics Institute (INE), follow on from the announcements of economic recovery in some other countries of the Eurozone, especially Germany and France, whose statistics were also revealed this week.

It would normally go under ‘politics’ of course, but as it is another headline that directly relates to the headline above : "0.3% Is Zero Growth" – Jardim considers that the increase in PIB / GDP signifies nothing and is a "big fat economic failure". Unlike many reviews and opinions, Alberto João Jardim considers that the growth in the economy of 0.3% means nothing. Prime Minister José Sócrates guarantees that the figures show that Portugal is coming out of recession in a turn in the country’s economy. The president of the Madeira government has a different opinion : "0.3% is zero growth and is therefore a big fat economic failure" that doesn’t even pass for a "fantasy for cheap electioneering". Funny that Uncle Bertie mentions the subject of elections, as that means that for the forthcoming national elections the voters may well be cheered by the news, and decide to stay with a socialist government.

‘Unemployment Worsens In The Second Quarter Of 2009 – Rate hits 9.1%’. That’s up from 8.9% in the first quarter of 2009. The figures from the National Institute for Statistics released today show that unemployment in Portugal has risen by 1.8% in the space of a year. The bad news was above the governments prediction of 8.8%, and the average prediction of analysts contacted by the Diário. We just need to wait now for Uncle Bertie’s mob to provide the figures for Madeira, but we can already predict the reaction to the normally vastly understated figures, probably something like "?.?% is zero growth" from the man himself.

‘Help For The Rent – The number of interested parties in the support of IHM for the unemployed, without money to pay for housing, is growing’. 320 families are already interested in receiving assistance with their rent since the new scheme was introduced in April. The scheme, which helps those who find themselves unemployed and without sufficient money to pay their rent, has already attracted many contacts and applications through ‘Housing Investment in Madeira’ (IHM). Nearly all of the tenants in question are still receiving unemployment benefit, but when that runs out, and there is still no work, then the new scheme kicks in. Just three families so far have reached that stage. The maximum assistance per person is €175 a month, but if a couple of tenants living together both lose their work, this assistance can be doubled. It is paid for 12 months,  but can be renewed at the end of that period if necessary.

In Transport & Tourism : 

According to the TV news this morning, TAP, Portugal’s favourite airline, is really going through tough times at the moment as people cut back on travel and the competition begins to bite. It has announced fairly severe cutbacks, the more significant being a 10% cut back in flights next month. The president of TAP is said to be feeling the pressure in managing the company "due to the policy of trade unions in a year of elections". He made a statement to the media in reaction to the announcement of 4 days of strike action, by employees represented by 5 different trade unions, over the lack of a pay increase since last year. Madeira is one its most popular and well occupied routes, so maybe we will get off lightly in the cut backs. On the other hand it is now one of the stiffest routes for competition, so perhaps not.

‘DECO Accuses Easyjet Of Rejecting Complaints – The airline company that does connections to Madeira doesn’t accept complaints in Portuguese’. The consumer defence organisation DECO has accused Easyjet of breaking the law, because it is refusing to deal with complaints written in Portuguese. DECO has had several complaints from flyers, in connection with delays and baggage issues, where the complainant has been told they must complain in English, Spanish, German, French or Italian. Likewise, anyone ringing the company office in Luton, England, will be turned away as there are no Portuguese speakers. I guess DECO will get nowhere with this one, unless of course they write their own complaint in one of Easyjet’s acceptable languages.

‘Disney Cruise Line Promotes Madeira – The company website of Disney promotes the destination’. The cruise ship ‘Disney Magic’ is to visit us twice in 2010, with 2,400 tourists. The first time will be in the height of the flower festival (18th April), and then again in September. The Diário says that the Disney website is one of the most popular in the world, and the write up for Madeira could also also promote tourism here through means other than the Disney cruise ship.

(11th August). ‘Trade Unions Of TAP Call A Strike For The End Of August And In September – The strike will hit flights for Madeira’. 5 trade unions representing TAP workers have called the coordinated strike for 28th & 29th August, and 11th & 12th September. In a statement to the media, Vitor Mesquita, leader of the Workers Union for Aviation and Airports, said that workers are demanding a wage review and clarification of collective bargaining.

(10th August). ‘Unfair competition and unlawful acts in the ‘Safaris’. The off-road trips for tourists are a growing activity on Madeira, but often the law is disregarded. That creates a particularly difficult situation for an island that depends heavily on tourism, and where the necessary care is not present in the the quality of services offered to visitors. Some voices however criticise the law that is detached from reality. One way or another, the truth is that the extent of illegalities detected is extensive and ranges from the use of drivers without proper qualifications for the job (the law requires a tourism approved driver / mountain guide / guide-interpreter), to the use of vehicles in a poor state of repair and of questionable safety, and through the placement of cards (permits?) allocated to ‘jeep’ agencies’ in unlicensed vehicles belonging to third parties. One company in the sector said "For a start there is little regulation. Since 2006, when my company began to operate, I can assure you that we never had any checks, and never saw anyone doing them. Also, I see almost every day examples of the companies that do not comply with the law, including the provision of qualified drivers. The market is being distorted and those, who like me, comply with the law are the worst affected".

‘Passengers In The Airport Of Madeira Fall 3.2% – The airport lost seven thousand passengers in July compared to the same month in 2008′. The numbers relate to arrival and departure movements. The airport operator ANAM reports that there were 213,941 passengers last month. The decline was mainly due to a 19.1% fall in international traffic, down to 96,135 (118,839 in July 2008), but was mostly offset by an increase in domestic travellers, up 15.4% to 117,086, now representing 55% of all airport passenger movements.

‘Hotels On Porto Santo ‘Resolved’ This Year’. With the threat of the closure of several hotels during the low season this Winter, and still without a tour operator interested in bringing tourists to the island during the low season, the matter of new bed capacity is being questioned, taking into account the prospect of the three new hotels promised. With the Colombo Resort (on hold with financial difficulties), the hotel promised by Cristiano Ronaldo, and the Pestana Dunas (postponed), the council believe it will be a matter of some time until they are moved forward. The Pestana unit will go ahead, and although the work was originally planned to commence early in 2009, work should start at the end of this year, or early next, with the opening in 2011. Pestana already have the licences necessary, and have already started marketing units priced at €259,000. The socialist candidate there in the forthcoming elections is challenging the hotel strategy, asking "who benefits from all this?", with no guarantees of more jobs or opportunities for businesses, whilst tourism is so depressed.

‘Doggy Hotels Also Feel The Crisis’. Apparently dog hotels in the Algarve have seen a drop in bookings of 50 to 60%. A cat hotel too, that was full last August, is just 30% booked for this month, but 80% of their clients are English, French and German. People who used to travel back to their birth countries 3 times a year, are now travelling just once, and leaving their pets with friends and neighbours to be looked after. For one day at €7, the hotel for felines, offers custom hand-painted rooms, "room service" with morning greetings to each guest by the name of the animal, delicacies and water. There are also hygiene care and veterinary services in case of sudden illness. The "check in" Hotel for Dogs can be done between 09:00 and 19:00 and the service is door to door, with taxi, which collects and returns the animal to the owner. If the owners can’t afford to put their dogs in the hotels, when they go off on holiday I guess their pets have to sleep ruff?

There is a general article about the bus company Horários do Funchal, financial stuff and so on, but I was amazed by some of the facts and figures in the article. In 2008, it carried 27.2 million passengers, on journeys amounting to 9 million kilometres. It has 626 employees, all men apart from 35, costing in wages, employment costs, etc. €13.4 million a year.

(9th August). ‘Not Even With Jellyfish And Pollution – During July, the beaches of Funchal continued very popular’. A somewhat more upbeat account than the recent Jornal article about the jellyfish. Even with the complaints about pollution and jellyfish, Madeirans continued to frequent the beaches last month. The company that manages the beach and pool complexes in Funchal, Frente MarFunchal, reports that the number of entrances at Lido, Barreirinha, Ponta Gorda, and Doca do Cavacas rose to 92,000 in July, compared to just 31,000 in June. Lido alone saw 41,138 admissions in July, up also on 2008, with Ponta Gorda admitting 39,251 people. Sea water tests taken up to 2nd August all indicated good quality clean water for swimming at all the Funchal beaches. Sea water quality tests will continue until the end of September. The results can be seen here WATER QUALITY but to save a look, all the beaches of Madeira currently rate GOOD, except Ponta do Sol and Porto da Cruz (both ACCEPTABLE). On the website go to the tab at the top DADOS SINTETIZADOS, and then QUALIDADE DA ÁGUA,  then click Madeira when the map comes up.