Portuguese Potential for British Tourists and Ex-Pats

Portugal is officially Britain’s oldest ally in Europe with treaties linking the two countries dating back many centuries.  Although Portugal is not an island nation like Britain it does, however, have a lengthy coastline on the Atlantic and shares with the UK a long history as a seafaring nation.  In some senses the country is isolated from the rest of Europe, sharing only a land border and an interesting history with neighbouring Spain.  Despite being a little on the sidelines when it comes to Europe, this has not stopped either country ruling large parts of the rest of the world at different times in history.  Portugal, like the UK, was once the master of a massive global empire and the Portuguese were the original Imperialists in South America.  Whether it is their similar histories and historical ties, or simply the great weather Portugal has long been a favourite with British tourists.

Hot but Quiet Spots

Portugal is perceived as quieter than hotspots in Spain and France and offering a more relaxed lifestyle and pace.  Other Southern European states have been badly hit by the recession with Spain’s property boom imploding, but Portugal, in its own quiet way is steadily working its way out of the recession and has proved that despite the global economic gloom, it is one part of Europe that remains a popular place for British tourists and those looking to invest in overseas property.

Dealing with the Downturn

Earlier this month the European Central Bank and International Monetary Fund confirmed that the smaller of the two Iberian countries had met the conditions required for the next round of funds agreed as part of its bailout.  Despite some harsh austerity measures, political and social upheaval in Portugal has been somewhat quieter than that in Greece and although many Portuguese people have faced substantial drops in income, the country as a whole is working hard to get through the difficulties it has faced.  The government have recently announced further measures, suspending four of the country’s public holidays for five years from next year, and has already made significant cuts to public sector wages and raised taxes.  Protests have been sparked by the cuts and two general strikes have taken place since last year; however, compared to events at the other end of the Mediterranean things are relatively calm on this particular western front.

Favorable Exchanges

Tourism and overseas property ownership in Europe have, from a British point of view at least, become potentially more attractive as the Euro-zone crisis continues.  Against the pound the euro is weak, offering the chance of bargain priced holidays and competitive costs while abroad.  Tourists visiting the popular Algarve have reported that they have noticed little difference in the country, although unemployment rates are at record highs at many workers in resort towns and regions are only able to find occasional, temporary positions.  Certainly with a weak euro, many British tourists are finding that their pounds are stretching further in the cash strapped Portuguese economy.  In terms of overseas property investment the strong pound may make investment in European property a strong possibility for British individuals, especially those in a cash buyer position.  The main problem is that with instability the defining feature of many previously favoured locations, many people remain nervous of investing.  Both Spain and Italy, previously popular ex-pat destinations, have seen slumps in interest from British buyers, although France has begun to experience some renewal of interest.  In Portugal, lesser explored regions of the country, including the north, have a lot to offer potential be ex-pats.  There are predictions that the country will remain in recession for another two years so for now, holidays in Portugal may offer the chance to discover the country, while keeping a close eye on the property market.

Slow and Steady Recovery

In addition to the less well known north of the country the Algarve may also remain attractive to both tourists and potential settlers.  Despite the economic uncertainty the stability that appears to be developing in Portugal, plus the government’s quiet and determined handling of the crisis, suggests that a combination of strong pound, lower demand and a lack of the property glut found in this corner of Europe may all play a part in encouraging tourism, investment and growth.  For those looking for holidays and potential homes, Portugal remains a deeply attractive option.

As they say, it’s the quiet ones you need to watch.  Portugal has dealt quietly with its economic troubles and is proving to be an attractive destination for British tourists and potential ex-pats.  Villas in Quinta da Lago offer a taste of the quiet life for those curious about exploring the quiet and retiring part of Europe.