Gilberto Vieira, president of Casas Açorianas, warns that reduced air connectivity, seasonal dependence, and rising operating costs threaten rural tourism, but insists the islands retain significant potential for sustainable growth.
Rural tourism in the Azores has recorded an 11.3% decline in overnight stays since the beginning of the year, significantly exceeding the 6.1% decrease in local accommodation and contrasting with a modest 0.5% increase in traditional hotels, prompting industry leaders to call for a renewed tourism strategy focused on quality, international promotion, and reliable air transportation.
Gilberto Vieira, president of Casas Açorianas, the association representing rural tourism establishments in the archipelago, says the downturn reflects structural weaknesses that require coordinated action from businesses and regional authorities.
“The Azores have not exhausted their tourism potential; what they need is a renewed strategy,” Vieira said in an interview ahead of the association’s annual gathering on Terceira Island.
The meeting, organized under the theme Direction: How Can We Return to Growth?, will bring together rural tourism operators to discuss declining demand, operating costs, seasonality, and the future of the sector.
With more than three decades of experience in tourism, Vieira argues that the Azores continue to possess important competitive advantages, including preserved natural landscapes, cultural authenticity, tranquility, and safety. However, he maintains that the growth model of previous decades is no longer sufficient.
Rather than pursuing higher visitor numbers at any cost, he advocates attracting travelers who stay longer, spend more within local communities, and value the islands’ natural and cultural heritage.
“The growth we need must be balanced, sustainable, and focused on quality,” he said.
According to Vieira, the particularly sharp decline in rural tourism reflects its greater vulnerability to changes in air transportation. Many rural properties are located outside urban centers or on smaller islands, making them dependent on reliable flights, interisland connections, and affordable rental vehicles.
Reductions in flight frequencies, particularly during winter, can therefore have a disproportionate impact on occupancy rates.
Seasonality presents another challenge. While conventional hotels can attract business travelers, conferences, and short winter stays, rural establishments depend more heavily on leisure tourism concentrated during warmer months.
Operating costs also place smaller properties at a disadvantage. Maintaining traditional buildings, landscaped grounds, and accommodations with relatively few rooms often results in higher fixed costs per guest than those faced by larger hotels.
Vieira also pointed to inflation and declining purchasing power in European markets as factors influencing travel decisions.
He rejected the suggestion that falling overnight stays should be accepted as an inevitable consequence of the Azores’ commitment to avoiding mass tourism.
A sustainable, specialized tourism model, he argued, should not become an excuse for stagnation or declining business revenue. Instead, he called for more consistent and better-funded international marketing, supported by stable and competitive air connections. “We need a more effective and better-financed promotional strategy, combined with stable air links,” Vieira said.
The association president identified the United States, Canada, Germany, the Netherlands, and Scandinavian countries as priority markets for attracting visitors interested in nature, sustainability, and authentic cultural experiences.
He also sees opportunities in developing off-season tourism, particularly among travelers seeking longer stays, hiking, birdwatching, wellness experiences, and slower forms of travel. Retirees and digital nomads could also contribute to demand outside the traditional summer season.
Vieira emphasized that future growth should be distributed more evenly across the nine islands and throughout the year, rather than concentrated in a few destinations during peak months.
He believes rural tourism can play a particularly important role in supporting smaller communities, preserving traditional architecture, and keeping tourism revenue within local economies.
The industry leader also called for assistance to help operators modernize their properties without compromising the architectural character and cultural identity that distinguish Azorean rural accommodation.
For Vieira, the challenge is not simply to increase visitor numbers but to create a more resilient tourism economy capable of supporting businesses while respecting the environmental limits of each island.
The Terceira meeting is expected to focus on practical proposals addressing transportation, marketing, operational costs, and cooperation among tourism operators throughout the archipelago.
Vieira hopes the discussions will produce a clearer direction for a sector facing one of its most difficult periods in recent years.
His central message is that the Azores still possess the qualities international travelers increasingly seek, but maintaining their appeal will require stronger promotion, improved accessibility, and a tourism strategy that places economic value, sustainability, and local communities at the center of future development.
Based on an interview with Gilberto Vieira, president of Casas Açorianas, concerning the outlook for rural tourism and the association’s meeting on Terceira Island. The tourism figures and assessments are drawn from the interview pubklished in Diário Insular, José Lourenço-director. The photos are also from DI.