Worst economic shock in decades, and traffic light system for beaches
English language coronavirus news in Portugal on May 15, 2020.
By the numbers
We finish the week with another positive milestone: the fewest number of deaths since March and an increase of just 0.51% from yesterday. The increase in confirmed cases, while slightly higher than yesterday, also seems to be holding relatively steady as we move through the period that should be reflecting the first few days of reopening. The number of new official recoveries doesn’t seem to be showing any trend from one day to the next, but obviously the higher that number is and the lower the new confirmed cases, the better. I’m particularly glad these statistics are good because unfortunately the numbers to come are much less positive.
Worst economic shock in decades, with worse to come
Portugal’s first-quarter financial figures tell the story we’ve been seeing elsewhere and more or less expecting for weeks now. The economy shrank 3.9% compared to the final quarter of last year, or 2.4% year on year, Público reports. Based on a National Statistics Institute estimate released today, the quarter-on-quarter fall in GDP is the worst since at least 1977. That’s despite capturing only the first two weeks of the lockdown. The newspaper expects the year-on-year drop to come in the second quarter of the year (Q2 2019 to Q2 2020) to be the worst in history. Público suggests the quarter-on-quarter crash is most representative of the economic shock, because the year-on-year comparison is affected by the economy’s recent solid growth. The worst quarterly fall during the Global Financial Crisis was 2.5%, the previous record fall stretching back as far as the records go, to 1977.
Tourism crashed 60% in March
With all that in mind, and considering the importance of tourism to Portugal’s economy, it’s no surprise to see the devastating impact the pandemic had on the sector in March. Guest numbers fell 60%, to a still respectable 697,700, while room nights dropped 58.7% to 1.9 million, Diário de Notícias reports. Income had a corresponding fall of 60% down to €98.9 million. The fall in guests from the first quarter of 2019 to the first quarter of this year was 17.6%. This is, again, all with a state of emergency that didn’t kick in fully until March 19, although the effects of the pandemic were already being felt before that. Foreigners made up about 57% of guests but accounted for about 68% of the room nights.
Traffic light system to control beach access
The government wants to open up beach access without coercive measures, instead appealing to the discipline of beachgoers, Público reports. The plan, set to go to the Council of Ministers for debate on Friday afternoon, involves a traffic light system likely displayed through flags or signs. Red would mean the beach is full, yellow would be almost full and green accessible. Lifeguards and police would advise people to steer clear of red beaches but the idea is to appeal to people’s good sense when it comes to heading to the beach. But, the article notes, the authorities can still be called if there’s any abuse of the system. A distance of two metres between every person or family will be advised and an app is set to be created so people can check the status of the beach before they get there. Under the plan caravans would be prohibited from parking at beachside parking lots, under the plan.
Photo: Jorge Branco
In brief
Bus passengers complain about timetables and overloading. Rodoviária de Lisboa, the most complained about company, increased services this week, with a bigger boost promised from Monday. But they’re not going back to normal like the majority of providers in the greater Lisbon area.
Football is back: know the (expected) return date in every country. The Bundesliga kicks off tomorrow but Portugal, England and Spain don’t return until next month at the earliest. The Telegraph article in English.
Confederation of Commerce and Services asks for rent pardons. The organisation says moratoriums won’t cut it and calls for rent exemptions or temporary cuts in rental costs for suffering companies.
The Business Confederation of Portugal wants €3 billion emergency fund to help businesses in trouble.
On a lighter note
That’s right, I’ve found a new to make the Friday lighter note all about wine. Just like the rest of the country, the Douro Valley shut up shop in March, right as high season was supposed to be starting, Público reports. Well, now some of the region’s various vineyards and getaways are starting to open up in a “very gradual” way. According to the newspaper, operators are putting in place rigorous hygiene and safety measures to combat the pandemic. Casa do Rio Wine Hotel, in Vila Nova de Foz Côa, and Quinta da Pacheca and Quinta da Salada, both in Lamego, are all due to open between now and the start of next month. You might be familiar with Quinta da Pacheca already because it’s the one with rooms made out of (socially distant) giant wine barrels.
Photo: Quinta da Pacheca.
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