Tourism plays a major role in the Portuguese economy, generating over US$4.2 million from the 11.5 million visitors each year. Most come from other parts of Europe, but Portuguese operators are keen to attract more interest from the U.S. The top tourist destinations for North Americans in terms of holidays abroad are Paris and London, but once in Europe they travel a great deal to other countries.
Dionisio Pestana is president of Grupo Pestana, a group that has up-market hotel and leisure interests in Portugal, Mozambique and Brazil. “In this business you have to sell the destination first,” he says, “but the world market is a very competitive one. It takes effort to sell Madeira or the Algarve or Portugal to the world. For example, there are a minimum number of hotel beds required to justify the enlargement of an airport. But the overall promotion of the country is the key. Get that right and the rest comes naturally.”

As the most western European continental country, Portugal is the closest to the U.S., but American visitors represent just 4% of foreign overnight stays in Portugal. “I was talking with the U.S. Ambassador the other day,” recalls Manuel Fernando Espirito Santo Silva, chairman of Espirito Santo Resources. “He told me that Americans prefer the Lisbon area and the northern part of the country to the Algarve, since the latter’s key attractions, golf and beaches, can easily be found in the U.S. What he felt Americans were looking for when they visited Portugal was the cultural and historical aspect, as well as the traditional side of Portugal, the old villages and the local color.”

Porto and the valleys of the Douro in the north of Portugal would appear to fit the bill. The area is full of hilltop villages and terraced vineyards where the grapes for the famous port wine are grown. But it is Lisbon that is the entry point for most visitors. Lisbon has a maze of narrow streets, rustic shops, restaurants, historic monuments, such as the Belem Tower and St. Jorge’s Castle, and national heritage hotels, such as the Lapa Palace hotel and the five-star Carlton Palace hotel.
The Carlton Palace is an 18th century stately mansion, refurbished to preserve the luxurious original interior, gardens and conservatory. Hotel manager Antonio Alves Dias outlines his marketing strategy: “We are seeking to attract more interest from America. An American who chooses our hotel will be a guest at a Portuguese national monument, combining the very best of what is old and new.” One of Lisbon’s most exclusive five star hotels, the Carlton boasts 197 rooms and suites, 2 ballrooms, 2 swimming pools, a fully-equipped fitness center and a conference center for up to 300 delegates.

Meanwhile, Mr. Dionisio Pestana believes the Portuguese are ready and willing to serve the growing tourist market. “Over the last fifteen years, Portugal has become increasingly aware of the country’s worth. Expo 98 was the icing on the cake and the moment that we realized that we were a mature EU country, that we could compete,” states Mr. Pestana.
With quality rising all the time, the prediction is that Portugal will attract another one million tourists into the country. This is a proposition that is attracting new players into the tourist sector. One such group is Sousa Lima, which has large-scale interests in the retail, automotive and real estate sectors in Portugal and Brazil. The company has major expansion plans based on current and future investments of US$100 million. Francisco Gomes de Oliveira is the vice president. “In automotive retail Sousa Lima is one of the top market players and for 2001 we expect to have a turnover of US$200 million.” In the vice president’s words, Sousa Lima’s automotive division covers everything, “from dealerships with top manufacturers to operations in used vehicles and parts; from after-sale services and car rental to partnerships in car financing and insurance.”

The group also has ambitious projects for its real estate arm. As Mr. Gomes de Oliveira points out, “on the east side of Lisbon, near the Expo 98 zone, we have a project to build over 45,000m2 of integrated offices equipped with the latest communication technology.”
The Sousa Lima vice president also emphasizes the role of IT in the growth of the business. “IT was fundamental for our auto retail activity from an early stage, and we intend to extend this competence to the real estate business,” comments Mr. Gomes de Oliveira. “I never believed that the advent of the Internet would be the death of the ‘old economy’, but I do believe that business without IT support is a thing of the past.”