More than one hundred business leaders across the Azores have issued a stark warning: the region’s tourism sector—long a pillar of economic growth—is at risk of collapse, with potentially severe consequences for the broader economy.

In a document titled Manifesto for Tourism and the Economy of the Azores, the signatories argue that 2026 is already a lost year. Without immediate intervention, they caution, the region could face a cascade of insolvencies, halted investments, rising unemployment, and declining public revenues by year’s end. The crisis, they insist, is not confined to tourism alone but is suffocating an entire economic ecosystem dependent—directly and indirectly—on visitor flows.

Tourism, they note, is the second-largest employer in the region after public administration and now accounts for roughly 20 percent of the Azorean GDP. Its decline, therefore, is framed not merely as an economic setback but as a threat to the social sustainability of the islands themselves.

Central to the manifesto is a call for structural reform. The group urges a comprehensive overhaul of Visit Azores, advocating for the return of technical management to industry professionals and the removal of direct political oversight. They also call for the urgent creation of a dedicated fund to attract new markets and reestablish air routes—seen as essential to reversing the current downward trajectory.

The departure of Ryanair on March 29 is described as a defining moment—“day zero” in what the signatories call the region’s economic unraveling. The loss of approximately 400,000 annual seats, they argue, has already translated into reduced connectivity, with projected declines of 8.1 percent in available seats this summer and an 18.2 percent drop in routes compared to 2025. Without competitive air service, they contend, the Azores risk becoming the most expensive destination in Portugal, increasingly isolated from both domestic and European markets.

The manifesto draws a pointed contrast with Madeira, which, according to the authors, continues to post steady growth across tourism indicators. In the Azores, by contrast, declining overnight stays and fewer arriving passengers are cited as evidence of a sustained downturn—one they attribute to policy failures rather than external pressures.

Among the most forceful criticisms is the government’s alleged lack of strategic direction. The signatories argue that key targets outlined in the Azores Strategic Marketing and Tourism Plan (PEMTA) for 2030 have been ignored, while an overreliance on North American markets has intensified seasonal volatility. The government’s apparent pivot toward a “luxury repositioning,” they argue, is both unrealistic and poorly timed amid a sustained decline in international demand.

Beyond strategy, the manifesto highlights what it describes as a breakdown in governance. The absence of a contingency plan, leadership changes within the tourism sector, and a perceived unwillingness by the government to engage with industry stakeholders have, in the view of the signatories, eroded confidence among local businesses and international partners alike.

Financial strain is another recurring theme. Business leaders describe a “systemic financial suffocation,” pointing to delayed payments, reduced public spending, and liquidity constraints that ripple across multiple sectors. Investments made in good faith, they say, remain unreimbursed months later, placing additional pressure on already strained enterprises.

Finally, the document raises concerns about public resource allocation, noting that the Regional Government has injected €115 million into the SATA airline group over the past two years. The authors warn that further capital injections may be required in 2026 to offset declining demand—demand they argue has been weakened by the government’s retreat from active promotion.

Taken together, the manifesto reads as both a warning and an appeal: a call for urgent action to stabilize a sector that, for the Azores, is not merely an industry, but a foundation of economic and social life.

In Diário Insular-José Lourenço-director

Translated into English as a community outreach program by the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL), in collaboration with Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno. PBBI thanks Luso Financial for sponsoring NOVIDADES.