“If everyone had taken the measures taken by Madeira to fight the pandemic, the world would be much better now” – Eduardo Jesus, Regional Secretary for Tourism of Madeira
Sofia Rainho | In an interview with Prémio magazine, Eduardo Jesus states that “throughout Europe, more and more countries are looking at Madeira as an example to be followed”. The Regional Secretary for Tourism of Madeira welcomes the pioneering measures taken by this Region to fight the pandemic and which have allowed it to establish itself as a safe destination, first and foremost thanks to the tight control upon arrival at Madeiran airports, the requirement to carry out testing and mandatory use of masks outdoors.
Eduardo Jesus reports that in the three months of tourism activity reduction to zero, there was a contraction of 6.6% of the regional GDP and conceded that “it will take many years” for the economy to recover. But he believes that things will go back to normal when the COVID 19 is developed.
The regional secretary was pleased to witness the growth of national tourism this summer in Madeira, which even posted better results than the German and British markets. “When we reopened in July, more than 46% of tourism-related overnight stays in the Madeira region were Portuguese”, he adds.
Eduardo Jesus agrees that a second wave “would be fatal” and warns that “this is a war without truce that requires the strong commitment of all” and “we are not allowed to fail”.
Some say that the world will not be the same after covid-19. Do you agree? And what about Portugal and Madeira?
I agree and, of course, Portugal and Madeira are in this together. I believe that we will return to normal, especially after the vaccine is developed and the population has access to it. However, the weaknesses that the pandemic has inflicted on the global economy means it will take many years to solve them. Tourism was the most affected sector but is also that with the greatest potential for recovery. This situation will only be possible when we recover the confidence that was lost with the threat of contagion. I believe that once we overcome the fear and the belief in safety to travel is restored, tourist flows will tend to return to normal.
What was the global impact of the pandemic on the Regional economy?
The impact of this pandemic that severely restrained the economy was huge and activity was reduced almost to zero in the first stage and recovered gradually due to the evolution of the markets most our tourists come from as the Autonomous Region of Madeira did become a true safe destination.
How was the tourism sector affected specifically? What’s the amount of damage?
Madeira Tourism represents more than 26% of the regional GDP and employs more than 20,000 people.
Each month the activity was reduced to zero, the GDP of the Autonomous Region of Madeira contracted around 2.2%, with dire consequences for companies, their employees and the whole direct and indirect dynamics generated by this sector. This percentage amount translated into 110 million euros monthly. Three months of inactivity generated a direct drop in Regional GDP of more than 6.6 per cent.
However, at the beginning of this year, we had managed to reverse last year’s trend and returned to growth in tourist accommodation in the Region. In February, we had 112,500 guests and 586.8 overnight stays, which translates into a positive evolution of 7.8% and 8.4%, respectively, compared to the same month of the previous year. In the first two months of 2020, the accumulated total was 211.3 thousand guests and 1,117.4 thousand overnight stays, with an average growth of 5.3% and 4.6%, respectively.
And compared to tourism on the continent, was the loss in Madeira similar or higher?
Continental Portugal has several tourism regions. I admit that they had the same problems as Madeira. And the Algarve, with a big seasonal load, was the most penalized on the Portuguese mainland. But that region benefits from the particular nature of the internal market and it’s easier to reach the south of the country without the need for people to use air travel. The Central Region has reasons for having performed well in the summer. It was a highly sought after destination in the domestic market. The Autonomous Region of Madeira, despite having established itself as a Safe Destination – as it was the only that witnessed an effective control over the pandemic since the beginning, the first to develop a Manual of Good Practices for the Tourism Sector and the only to choose international certification against biological risks – has the disadvantage of needing for air travel. As for the efforts to establish this a safe destination, the remarkable means put in place at the airports of Madeira and Porto Santo to screen and perform the tests on arrival were of utmost importance. We did it because the national and European authorities resigned from offering guidance on a common procedure which should have been, without any doubt, implementing mandatory testing before any trip. If that had been the case the world would be different and better off now.
Portugal has been more exposed to the sector and activities associated with tourism in recent years, but Madeira has been investing in this sector for decades. Is it, therefore, also more vulnerable to the economic and social consequences of the pandemic?
Madeira has over 200 years of history at the service of Tourism. This particular sector has allowed us to establish ourselves itself externally, thus assisting both the economy and granting international notoriety. No other sector has assisted so much the development of the Region. We don’t have too much tourism. The remaining sectors should follow the example of this sector which has increased its weight and notoriety. Never at the expense of tourism, but on their own. I consider it a profound mistake to claim that the country is over-dependent on Tourism. This is an abnormality, a thoughtless and immature consideration.
And Porto Santo, where the tourist offer is smaller and more concentrated, isn’t this problem even more serious?
This year Porto Santo benefited strongly from the bet of the national market, with a summer operation that involved 4 important tour operators. This was the result of the joint work we began even before the pandemic with our partners in this region and which resulted in an operation that enabled us to fly around three thousand and five hundred passengers to the island of Porto Santo.
Furthermore, the Madeiran market was also significant in Porto Santo. It is true that, traditionally, that the “Golden Island” is in great demand for Madeirans for their summer holidays, but this year, with the fear or impediment to travel to other destinations, they opted even more for the neighbouring island. Naturally, winter will be more demanding and will depend on operations that will only materialize if the epidemiological situation in the countries of origin evolves positively. There is strong seasonal pressure in the season that is now beginning.
What is your assessment since the reopening of tourism in the region in July?
The movement of travellers at the airports of Madeira and Porto Santo follows the growing trend of frequent flights by the various airlines. From a weekly average of more than 60, in July, one way, we moved to 135 flights a week in August. The evolution for September averaged 142 per week.
With the arrival of more and more planes, occupancy rates in hotel units in Madeira witnessed also an increase.
In mid-September, when the Flower Festival took place, the occupancy was in the order of 33%, corresponding to about 68% of the hotel units in operation.
Hence, in light of the current situation, the constraints, the situation in the markets of origin in Madeira and some difficulties in controlling the pandemic, having such an occupancy rate is not a bad performance. It is possible and it is the result of much effort by everyone involved. The sector fared well, the promotion worked non-stop, the Regional Government was always very active and that result was thus achieved.
How many tourists have travelled to the island since then?
In July, about 31 thousand passengers disembarked in Madeira. In August, that number doubled to around 59 thousand passengers. And in September, about 53 thousand passengers arrived from various European countries and Portuguese cities.
Regarding Porto Santo Airport, in July, approximately 3 thousand passengers disembarked there, increasing to approximately 5,500 thousand disembarked in August. And in September, the number reached 4,000.
The increase in the number of passengers at Madeira airports is relevant and is an incentive for us to continue working for the benefit of the sector, the people and the economy of the island.
Were there more foreign tourists or tourists from the continent visiting Madeira?
The latest data from the Regional Directorate for Statistics of Madeira pertaining to the month of July, when we reopened to Tourism, point to a visitors mostly from the national market, representing more than 46% of overnight stays in tourist accommodation in the Autonomous Region of Madeira. The second-largest market was the German market, with 23.3%. The English market took longer to resume and therefore this market which is among our three largest markets stood at 4.1%, behind France whose percentage of overnight stays was 5.8%. The reality is different today. The national market is no longer leading and Germany and the United Kingdom now account for the highest number of visitors.
There was indeed a significant increase in national tourism (more Portuguese tourists) in Madeira this summer.
The national market has an umbilical connection with Madeira and is very important for the Region. The Portuguese have been choosing Madeira for their holidays for many years. This year, in particular, there was a greater tendency for proximity markets to fly to Madeira. But I should highlight the fact that we had been working with the Portuguese market before the pandemic and we were awarded “Preferred Destination” in 2020 by the Portuguese Association of Travel and Tourism Agencies. It was a great advantage that allowed us to become closer to the national operators and build a series of operations that were already consolidated for this summer and which were resumed or reworked.
In the course of the reopening process, the policy followed by the Regional Government was crucial to secure the performance achieved in the national market. The Autonomous Region of Madeira hired several laboratories that allowed us to carry out the testing – type PCR – to anyone with a ticket to the Region. This measure, which involves a significant investment from the Regional Budget, added a new layer of confidence that motivated the sustainability of the operations put in place.
What are the main nationalities of the tourists who usually visit Madeira?
It is the English, Germans and the Portuguese who visit Madeira most.
What is the hallmark of Tourism in Madeira?
The perfect symbiosis between nature (mountain and sea) and culture.
What do these tourists look for when they choose Madeira as a holiday destination? What is the best the Madeira Region has to offer?
It all starts with the manner how the people from Madeira and Porto Santo welcome visitors, their culture and the taste of their wonderful delicacies – combined with traditional cuisine that, at the same time, follows current trends – and also the spectacular landscapes the archipelago has to offer.
Anyone visiting Madeira goes back with full heat, always wanting to return to an island full of history and breath-taking landscapes, unique experiences, in an idyllic environment of colour, beauty and tranquillity.
And, for the more active, it has also a lot to offer, with activities that test the most adventurous, creating situations of pure adrenaline, but always safe. We are a destination of experiences, an active destination.
Madeira and Porto Santo, as a whole, allow those who visit us to have contact with different and unique realities in a single territory and within a 1.5-hour flight from the capital of Portugal.
In addition to the Monte basket car, what are the other ‘ex-libris’ of Madeira?
We have many such as the Laurissilva Forest, the Irrigation Channels, the Events that take place throughout the year, the cultural offer, Madeira Wine, Gastronomy, Madeira Embroidery, the Old Town, Parks and Gardens, the Farmers’ Market, the Radical sports, such as cannoning, abseiling and mountain biking, basket cars, whale watching, the Santana Houses, flowers and a quality hotel offer.
What is the state of lay-off in Madeira’s tourism companies?
The simplified lay-off was very adequate to the reality we live in. The decision to change this was not right for the sector, knowing that this will be one of the last to have the chance to change this trend. The recent news report that the Government of the Republic stepped back and realized this same circumstance, which means that companies will again have adequate support.
It stated the need to extend support to the hospitality sector to avoid mass unemployment. Is that happening?
Yes, the Region was the first in the country to consider non-repayable support for the sector, provided work posts would be retained. We have always argued that aid can never imply replacing revenue for debt. This will be the end, in the long run, of an economy. What the sector needs is non-repayable support. A type of assistance that would meet the unique reality we live in. Either we help companies to keep their jobs or we will spend more on unemployment benefits and run the risk of destroying the business fabric and losing the economic dynamics that it generates. This support is being provided on an ongoing basis and others are being prepared to minimize the impact of the pandemic in the long months ahead.
How do you respond to the accusations of carelessness towards the people who were fired or under lay-off voiced by the regional socialist leader Paulo Cafôfo?
The work carried out by the Regional Government is acknowledged at the national level and considered an international reference. Naturally, this recognition bothers those who are never on the side of the people of Madeira and Porto Santo. The entire population of the Region has already become accustomed to the behaviour of the socialist party bonding to the government of the Republic to harm the Region gain importance. It is an old, beaten and common trick. The answer was voiced by the Secretary of State for Tourism, who, in her speech at the PS Madeira Congress, praised the Regional Government and stated that Madeira is a national example.
Which islands are Madeira’s main competitors? The Canaries, the Balearics or other more distant like the islands in French Polynesia?
At present, competition is global. There are no longer any direct competing destinations. We both compete with close and distant destinations given the availability of means of transportation, communication, the features that stand out and the commercial opportunities that are created. If we take into account the dependence of tour operators, this analysis can be the focus on a smaller number of destinations like the Canaries, Greece, Croatia, Malta, Balearic Islands, among others.
What are the current hotel occupancy rates? What is the percentage of hotel units currently operating?
At the moment, we have about 68% of hotel units open, with an occupancy rate of approximately 30%.
Have there been many redundancies since the pandemic?
We are aware of the non-renewal of employment agreements that ended during this pandemic period and of a collective redundancy process carried out by Belmond Reid’s Hotel involving 63 people.
How many flights currently arrive in Madeira each week? The number was initially 40 when we reopened…
In September, the average per week was around 142 flights, in a single direction. In August, the average was 135 flights per week, and in July, the weekly average was over 60.
The pandemic figures have never been as high in Madeira as they were on the continent. What else could or should have been done to prevent Madeira from being so harmed internationally?
We were proactive right from the start and we were at the forefront when the markets reopened. There was the work of the Regional Government as regards to public health, with the positive results that everyone acknowledges. And, at the same time, we have the support created and the projects we developed, such as the creation of the Manual of Good Practices and the Certification of the destination.
And we should further add the permanent contacts with the sector, namely with tour operators, with airlines, and with organizations like Tourism of Portugal, and the persistent work with several national and international government and diplomatic entities, as well as with various institutions to reinforce and cut short paths for the resumption of tourism in the Region. During the pandemic period, we started a series of constant communication that helped us define this path. Today, we total more than one hundred communications made by us clarifying our epidemiological situation, stating that we should factor in the regional reality and considering that the vast majority of operations are done through direct flights, which minimizes the risk of contagion, as there are no stopovers or equipment changes.
Do you think tourists today consider Madeira a safe destination?
Of that I am certain. In addition to tourists looking at this destination for their holidays due to the secular security that they recognize, this choice was reinforced because they are aware of the health controls we undertake. We received recognition from those who arrive here, upon their arrival at Madeira Airport, where we have remarkable control in the manner how we deal with passengers landing here.
British tourism is one of the main customers in the Madeira region. But this summer Madeira was left out. What are your expectations after the introduction of regional travel corridors, which allows establishing a difference between Madeira or the Azores and mainland Portugal?
Madeira was left out on a first stage, as part of the national whole. Although the destination was recognized as a safe destination, the quarantine requirements were the same for the whole of the national territory.
Subsequently, the United Kingdom opened air corridors to Portugal. However, we soon were able to prove the British Government that our epidemiological reality was different from the country and should therefore have a different status. Fortunately, justice was done, albeit belatedly.
The principle we defend, of the need to establish differences between regions in the same country, ended up being recognized by Wales and Scotland, which, despite requiring quarantine from those arriving from mainland Portugal, created an exception for Madeira whereas passengers don’t have to quarantine when they return from this region.
Do you consider the strategy of regional health authorities to bet on more drastic measures such as the mandatory use of a mask, even outdoors, right or risky?
We believe, of course, that this is the right measure because we have to preserve the safety heritage that we have built. We have to protect ours and the health of others. The affirmation of the Region as a safe destination is only possible because there was the courage to implement measures. Our President’s attitude was key right from the start. There were never doubts or hesitations and that was crucial. If in the beginning there were voices of discontent as regards the mandatory use of masks, now everybody stands for such measure. The people of Madeira and Porto Santo are an example in the fight against the pandemic, always mindful of the guidelines of the Regional Health Authority.
Madeira was the first region to introduce the mandatory use of masks in public spaces. Is this an additional guarantee of greater security or can this be a deterrent for some tourists?
The Public Health care that the Regional Government has had since the first hour with the pandemic has meant that we have few known cases of people infected with Covid-19.
The issue of the use of masks being a deterrent does not arise because tourists don’t stop coming to a destination that applies the mandatory use of masks. On the contrary, it ends up being a further contribution to the feeling of safety in this destination. Today we receive television stations from different countries that come here to cover the entire screening and testing operation at airports. Last week, the Canaries demanded the implementation of a model similar to ours. Across Europe, there is a growing number of countries that refer to this model as an example. Madeira and Porto Santo are setting a good example, but that is not enough. If other regions or countries don’t do it, everything can be in vain because we are directly dependent on the epidemiological state of the markets of origin.
Don’t you feel that, after a first reaction, even out of fear, which led to lockdown, there is some bonhomie and people are now less sensible to preventive measures?
In the specific case of Madeira, this does not happen. We never let our guard down for the safety of the people who live here, those who work in the tourism sector and their families, and those who travel here.
Can a second wave be fatal for the international, national and regional economy?
Obviously. Everything will tend to be different. We have already learned a lot from the first episode of this pandemic. Today we have a history, albeit recent, that allows us to see the current events under a new light. What I want is for there to be action, resolve, decision and willingness to act in the fight against the pandemic. The Region has been a good example, but other regions have not. The pandemic cannot be fought with exceptions, with the logic of the politically correct, with the attempt to please everyone. This is not a political party game, it is not a parliamentary discussion for a specific interest, nor an electoral confrontation to achieve negative majorities. This is a war without truce that requires a strong commitment from everyone. There is no room for failure.
You said recently that you hoped the Flower Festival would be a turning point in Madeira. Is that happening?
The Madeira Flower and Wine Festival of 2020 was an important milestone in tourism in the region and the lives of Madeirans. We wanted this to be the case and that is why we postponed this event which takes place usually in May. The key is to find alternatives, innovate and adapt. Never give up and make no room for the pandemic to kick in.
Although we are always conditioned by the markets of origin and their epidemiological realities, we believe that this event was remarkable. It was a moment of liberation, realization and a display of great accountability from all stakeholders.
Is the recovery already being achieved at a satisfactory rate?
The figures, if compared with previous years, are not what we would like. But they are growing and show that the destination knows how to send a message of safety when it comes to welcome travellers. We have units with excellent performance, but we must not forget that part of the sector remains closed. The absence of the market levels we are used to is a relevant factor in the lives of many entrepreneurs in the many branches of the tourism sector. There are difficulties and that is why the Government has always acted promptly in implementing the right measures.
Do you have any perspective on whether, how and when will it be possible to recover the indicators we had in Tourism before the first outbreak?
Nobody knows. Now I can guarantee that we work every day to make this happen as quickly as possible. If everything depended on Madeira and Porto Santo, I would say the time is now. Our evolution is no different because, as a tourist destination we depend on the evolution of the markets of origin.
Do you believe that this pandemic can lead the main decision-makers – political and economic – to refocus their strategies, diverting investments from Tourism to other activities or sectors less conditioned by phenomena such as the new coronavirus?
The tourism sector represents 26% of the regional GDP. This sector can never lose its priority status. No one, in their right mind, would remove such status. The strategy involves supporting the various sectors that show potential for international competitiveness. Others can and should grow according to the opportunities and their affirmation will be a contribution to the regional economy. As I said, never at the expense of tourism, but under a process of growth of its own and which, as a whole result in a stronger and more robust economy.
Did the world take too long to react to the new coronavirus?
I have to admit, yes. The problem that arose in the city of Wuhan, China, was not duly taken into account.
In Madeira, we acted promptly, choosing our gateway as the main control point and we prepared to reduce its impact and this proved the right to do.
How and where can tourism grow in Madeira? What kind of activities does it involve?
We are on the right path to grow. The Region has a remarkable performance in the control of Covid-19 which naturally depends on the demand of the external markets and the realities as regards the pandemic situation in each market as well as on the development of Portugal in this area. Our strategy is defined, our assets are intact, our competitive advantages increased. We have everything to grow. We expect the international market to be in a position to match our offer.
What work has been done with tour operators?
In addition to the care put into this by the Regional Government right from the start in terms of public health, the means of support that were created, and the projects that we developed such as the creation of the Manual of Good Practices and the Certification of the destination, we were also active next to our main markets so that, when the time came, we would be ready on the front line.
The work with tour operators has been intense and permanent. Our availability since the beginning was paramount to inform, clarify, support operations and monitor all developments. The current reality is new, it has nothing to do with what we were used to. The risk took over any operation and minimizing it has been a priority for the Region and the operators involved.
In addition to the permanent contacts with the sector, namely with tour operators, we have been working daily with the airlines and with organizations such as Tourism of Portugal and the Secretary of State for Tourism and we have been able to establish a remarkable level of understanding with these entities.
What has been the feedback from your bet on the Nordic market?
The Nordic market is strongly conditioned by the restrictions imposed by the market itself. There is a tendency to disregard the regional epidemiological situation, preferring to consider the Region integrated into the continental space. This reality has severely penalized us and has done objective damage to operations that are important to us and, especially to Porto Santo. We have been insisting on fair treatment and on the need to acknowledge our current situation in this regard. Otherwise, we all lose, the Region loses and the country loses. Hence our permanent awareness next to the Ministry of Foreign Affairs.
What are the main objectives of the recently launched €20 million aid package for the business sector? And what is the balance so far?
The new credit line “Support Madeira 2020” is a further tool to support companies affected by Covid-19, which will enable companies in the region to apply for funding operations to cover current expenditure and maintain jobs.
The new credit line, amounting to of 20 million is here to support small, medium and large companies and the access conditions are, as in almost everything, similar to those of the Investe RAM Covid-19 line.
Under this scheme, which comes after a first scheme whereby € 100 million were made available and which already includes support for non-repayable funds, companies are required, either by banking institutions or by SGM, to provide any type of personal or patrimonial guarantee or asset. On the other hand, all companies, whether small, medium or large, will be able to obtain funding up to the limit of €800 thousand.
Furthermore, the loan amount can be converted into a non-repayable fund if companies prove a 40% drop in turnover between March and May in Madeira and 15% for companies based on the island of Porto Santo.
To convert the funding amount into a non-repayable amount, companies still have to prove the maintenance of permanent work at the end of the 18-month grace period.
This is naturally a significant reinforcement of the assistance provided to the corporate fabric as the emphasis is the same as in the previous scheme: assisting to preserve jobs. We live in uncertain times and we need to be sure that the Regional Government is attentive and will always be involved in defending the business fabric and preserving jobs.
You have already conceded that it will not be possible to safeguard all jobs. And that the market is sorely missed. What can we expect?
Our major purpose is to support companies and entrepreneurs, also on an individual basis, to avoid unemployment. We know that the most difficult thing to do is to maintain the business dynamics. That is why we are supporting the absence of economic activity so that companies may continue operating and maintain jobs. It is all too evident that we lack a market. It’s the major consequence of the pandemic. It’s perfectly clear. We have to be serious and not embark on demagogic trends. All crises have consequences and the pressure on employment is very significant. We doing everything to minimize the damage. We shall do everything in our power to avoid such damage. I hope that the evolution of science can bring peace of mind to people and that the levels of trust that have been destroyed by the fear that has been installed everywhere will be restored. In building trust, we will be building solutions and relaunching the global economy.
