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Illegal Local Lodgings “steal” registration numbers

Some local lodging operators have been detected listing fraudulent registration numbers over the internet. Since 01 July, online platforms are required to display this code when promoting an “AL” property. The absence of a license draws fines of €3,740.98 for individuals and €35,000 for companies. Fraud is punishable by imprisonment.

AL registration number now required

Beginning 01 July 2017, any website advertising local accommodations in Portugal must display the corresponding AL registration number. Failure to do so will lead to fines from a minimum of €125 to maximum of €32,500 as mandated in Decree-law nº80/2017.

Local Lodging continues to grow in Lisbon and Porto

Lisbon and Porto saw the number of properties registered in the local housing increase by 3,400 and 1,300 respectively in 2016. In a new trend, the largest growth took place outside of the historical neighborhoods, where the supply doubled. Lisbon closed 2016 with 6,800 registrations, twice as many as it had in 2015. Of the 13,000 new registrations nationwide, many were due to legalization of irregular situations that already existed rather than brand-new offerings.

Prospects for Local Lodging in 2017

Excess competition coupled with controversies surrounding Local Lodging are beginning to affect prices and occupancy rates. While registrations were still up in 2016, the pace has diminished substantially which slowed from 200% in 2015 to just 8% last year.

Local Lodging registrations triple over the past 18 months

There are currently registered 26,000 Local Lodging offerings in Portugal. Lisbon is the most popular city with 4,500 and O Porto with 1,725. The Island of Madeira currently counts over 1,000 registrations. The national total represents approximately 130,000 beds compared to 235,000 beds in hotels.

Local Lodging registrations successful

NALLE logo-red 30%In the first two months of the new Local Lodging law, there have been more registrations than in the six years under the preceding legislation.

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