The month of December was dominated by what was termed “the news of the year for the Algarve”, following the announcement by air travel giants Ryanair that they were to invest over 400 million USD at Faro airport. Further positive news followed with the revelation that most of Portugal’s hotels were packed for the festive period despite the crisis.
However, the month started with reports that Spain was channelling Madrid sewage into the Tagus River and diverting clean water to the Costas. The news was met with anger in Lisbon and legal action in Brussels reportedly having been prepared against the Spanish Government.
Concerns were raised that officials in drought-stricken Spain had been pumping sewage into the Tagus River which runs out into the Atlantic once it reaches the Portuguese capital, while simultaneously closing the tap on the river, further reducing water quality.
A movement called ‘Protejo’ said it had already prepared a case against Spain, which it planned on submitting to the European Commission in the following days.
This news was followed by revelations that the taxman was ready to make certain concessions in order to assist ailing businesses pay their tax debts.
In an unexpected move which was aimed at keeping failing businesses from closing their doors due to burgeoning tax debts, the Prime Minister announced that companies will be allowed to repay the taxman over 120 months.
The move to allow companies a decade to repay their taxes was initially greeted with applause, though it became slightly more muted when it was discovered that only companies with debts in excess of 51,000 euros would qualify for this special dispensation.
Previously, some companies were allowed to negotiate the repayment of their tax debts, but only over periods not exceeding five years, though normally, the taxman had been reluctant to allow no than 12 months.
The news of the month followed towards the end of December, as it was revealed that after a year of economic gloom, Irish low-cost airline Ryanair had brightened the Algarve’s horizons with news that Faro was to receive a Ryanair base.
The Algarve was given a massive boost in December with news that Irish low-cost giant Ryanair was to invest over 400 million dollars in Faro Airport. The announcement was met with all-round approval, the Government terming it as “the news of the year for the Algarve”. Charismatic Ryanair boss Michael O’Leary revealed details of the venture during a whistle-stop visit to the Algarve during which he announced Faro Airport as the airline’s second Portuguese base, reaffirmation, he said, of Ryanair’s belief in Portugal following the creation of its first national base in Oporto back in September.
Set to take full force in the next few months, Ryanair’s Faro base will more than double the number of routes that it currently operates from the airport. Fourteen new destinations will be introduced from March 2010, connecting the Algarve to European cities such as Oslo, Paris, Madrid, Stockholm and Milan. It currently flies to 13 destinations in European countries including the UK, Ireland and Germany.
Its recently-introduced domestic route to Oporto has been hailed a success after showing constant occupancy figures of around 80 percent.
Despite indications that the investment would total €140 million due to three aircraft being stationed at Faro, a high-ranking source at Ryanair later told The Portugal News that following a last minute development, the airline was to double its investment at the airport and increase the number of planes stationed there to six.
As a result, the new base represents an investment of nearly €280 million ($420 million) and will create more than 150 direct jobs (pilots, cabin crew and engineers) as well as sustaining at least 1,300 local salaries that will provide services relating to the 200 weekly flights.
The move was described by national dignitaries as a “huge vote of confidence for the region” following a year of dwindling tourist figures.
The Portugal News ended the year with the appropriate headline: ‘Packed Portugal parties’
After a year of dwindling tourism figures, which in comparison to 2008 appeared to successively fall short of the mark, the country finally had something to cheer about as hotels and resorts across Portugal boasted near sell-outs for their Christmas and New Year events, some resorts even boasting full houses for the festive period – and most without dropping their prices.
Edition: 1043 - The Portugal News Online
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