A sharp divergence is emerging in Atlantic tourism. While Madeira is celebrating record visitor numbers and revenues, business leaders in the Azores are sounding the alarm over a marked slowdown.

The Azores Chamber of Commerce and Industry (CCIA) is warning that falling arrivals, airline cutbacks and weaker promotion threaten to undo a decade of sustainable tourism gains, and is pressing Lisbon and the regional government for urgent financial support to stabilize the sector.

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Azores Business Leaders Raise Red Flag Over Tourism Slide

The CCIA has in recent weeks intensified its warnings about what it describes as a worrying deterioration in tourism performance across the nine-island archipelago. Hoteliers and tour operators report softer bookings, shorter stays and growing pressure to discount, particularly outside the summer peak. Local businesses say the pattern contrasts starkly with the strong post-pandemic rebound many other European destinations have enjoyed.

For the Azores, tourism is not merely one industry among many. It has become a central pillar of the regional economy, underpinning jobs in accommodation, restaurants, transport, agriculture and cultural activities. A prolonged slowdown risks depressing employment and accelerating outward migration of younger residents, at a time when the islands are already grappling with demographic challenges.

Chamber officials argue that the slowdown is partly the result of policy choices, including reduced budgets for international promotion and the absence of a coordinated long-term strategy for air connectivity. They insist that without timely intervention, the Azores could lose market share to competing Atlantic destinations that are investing aggressively in visibility and access.

Airline Cuts and Rising Costs Hit Island Connectivity

Air connections are the lifeblood of archipelagos, and in the Azores there is mounting concern over the trajectory of airline services. The most dramatic development is Ryanair’s decision to withdraw all of its operations to and from the Azores from March 29, 2026, citing sharply higher airport fees, increased air traffic control charges and a new travel tax. The move affects six routes and an estimated 400,000 seats a year, a large share for a remote region that depends heavily on affordable links to mainland Portugal and key European markets.

Ryanair’s exit follows a pattern the carrier has repeated elsewhere in Europe, where it has cut services at airports it deems too expensive and redeployed aircraft to lower-cost bases. In the Azores, however, the impact could be particularly acute because alternatives are limited and the region’s insular geography leaves little room for substitution by rail or road. Industry players fear that higher fares and reduced choice will deter price-sensitive travelers and weaken the islands’ appeal as a short-break destination.

Local tourism businesses and the CCIA have criticized what they see as a lack of urgency from policymakers in addressing the structural cost issues that undermined the region’s competitiveness. They point to airport fee policies and infrastructure management decisions that, in their view, failed to balance revenue objectives with the need to sustain a fragile island economy. With the Ryanair withdrawal now scheduled, calls for a strategic review of connectivity and targeted incentives for carriers are growing louder.

Madeira’s Record-Breaking Boom Highlights the Contrast

The sense of urgency in the Azores is heightened by the remarkable boom currently unfolding in Madeira, another Portuguese Atlantic archipelago that has taken a different trajectory. Official figures show that Madeira set historic records in 2024, with around 2.23 million guests and more than 11.7 million overnight stays in tourist accommodation, up strongly on the previous year. Tourism revenue reached approximately 756 million euros, an annual increase of more than 15 percent, underscoring the sector’s growing weight in the regional economy.

Air traffic trends tell a similar story. Passenger numbers at Madeira and Porto Santo airports exceeded five million for the first time in 2024, with continued growth reported into late 2024 and early 2025. Airlines have responded to robust demand by increasing capacity. One major European low-cost carrier has announced a 13 percent expansion in seats to Madeira for the summer 2025 season, illustrating the confidence many operators have in the destination’s performance prospects.

Cruise tourism is also booming in Madeira. Ports in the region welcomed more than 700,000 cruise passengers in 2024, a record year that saw a double-digit rise in traffic and over 300 ship calls. Port authorities describe a strong multiplier effect for local commerce, from restaurants and shops to excursion providers, reinforcing Madeira’s positioning as a full-fledged tourism hub rather than a purely resort-based destination.

The contrast between these record-breaking figures and the clouds gathering over the Azores is not lost on business leaders or policymakers. While both regions share natural beauty and an oceanic climate, Madeira’s momentum has been supported by sustained investment in promotion, infrastructure and connectivity. The divergence is fueling debate about what the Azores must do to avoid being left behind in a highly competitive tourism landscape.

Structural Weaknesses in Azores Tourism Exposed

Behind the immediate problems of airline cuts and softer bookings, analysts and local stakeholders identify a set of structural weaknesses that have made the Azores more vulnerable to external shocks. Chief among these is an overreliance on a limited number of carriers and routes, which leaves the archipelago exposed when a major airline changes its strategy or faces higher costs. The Ryanair decision has crystallized this risk, prompting calls for broader diversification of air partners and markets.

Another concern is the uneven development of tourism across the islands. While São Miguel and Terceira receive the bulk of visitors, smaller islands often struggle to attract consistent flows, leading to imbalances in investment and employment opportunities. This concentration can create bottlenecks and pressure on popular sites, while underusing the capacity and potential of lesser-known islands that could help spread benefits and reduce seasonal volatility.

There is also debate about positioning. The Azores have marketed themselves as a sustainable, nature-based destination with an emphasis on hiking, whale watching and geothermal landscapes. While this brand resonates strongly with a growing segment of eco-conscious travelers, it also hinges on careful management and consistent messaging. Industry voices argue that cuts to promotional budgets and fragmented marketing efforts have diluted the region’s visibility just as global competition for this niche intensifies.

Finally, the investment environment is under scrutiny. Smaller family-owned businesses dominate much of the tourism offer in the Azores, bringing authenticity but sometimes lacking access to capital for modernization, digitalization and international outreach. Without fresh investment and stronger public-private partnerships, critics warn, the islands risk a gradual slide in competitiveness relative to other destinations that are upgrading rapidly.

CCIA’s Call for Emergency Funding and Policy Shift

In response to these challenges, the CCIA is urging both the central and regional governments to adopt what it terms a rescue and recovery package for Azores tourism. At the core of its demands is an increase in funding for international promotion, with a focus on recalibrating campaigns in key source markets such as mainland Portugal, Germany, the United Kingdom and France. Business leaders argue that visibility has slipped in recent years as other destinations stepped up their marketing spend, and that restoring a strong presence is essential to reversing the decline.

The Chamber is also calling for targeted support to help local companies weather the current downturn. Proposals include temporary tax relief for tourism enterprises, guarantees or soft loans to finance working capital, and co-funded investment in digital tools, training and energy efficiency. The goal, according to CCIA officials, is not to subsidize inefficiency but to give otherwise viable small and medium-sized firms breathing space and the means to adapt.

Connectivity is another pillar of the requested measures. The business community wants authorities to negotiate actively with airline partners, offering incentives where appropriate to maintain or expand routes that are strategically important for the region. Some stakeholders advocate revisiting airport fee structures and exploring mechanisms to offset higher operational costs on routes that are vital for the islands’ social and economic cohesion.

At the policy level, the Chamber is pressing for a clearer, longer-term tourism strategy that aligns infrastructure planning, environmental protection and economic goals. This would involve coordinated investment in ports, trails and heritage sites, as well as frameworks to manage visitor flows and protect sensitive ecosystems. The message from business leaders is that the Azores can and should remain a benchmark for sustainable tourism, but only if public policy backs that ambition with consistent resources.

Balancing Sustainable Growth With Competitive Pressure

Both the Azores and Madeira have publicly committed to sustainable tourism, but they face different pressures and starting points. Madeira’s current boom has prompted conversations about overtourism, capacity limits and the risk of eroding the very qualities that attract visitors. Some local organizations are already calling for caps on visitors to particularly fragile sites and for stricter regulation of short-term rentals to protect residential neighborhoods.

In the Azores, the immediate problem is not overcrowding but underperformance. Yet many local stakeholders are keen to ensure that any effort to reignite growth does not undermine the region’s hard-won reputation as a low-density, nature-first destination. For them, the ideal path is not to emulate Madeira’s sheer volume of arrivals but to secure a steady stream of higher-value visitors who stay longer, spend more and respect local communities and landscapes.

Achieving that balance will require careful policy calibration. Measures such as improving trail maintenance, investing in interpretation centers and supporting local guides can enhance the quality of the visitor experience without dramatically increasing numbers. Likewise, strengthening links between tourism and local agriculture, fisheries and crafts can amplify economic benefits while reinforcing the islands’ distinctive identity.

The broader lesson emerging from the contrasting fortunes of the two archipelagos is that sustainable tourism is not a static state but an ongoing process that demands vigilance and adaptability. For the Azores, the challenge now is to use the current alarm sounded by the CCIA as a catalyst for reforms that make the sector more resilient, equitable and aligned with community aspirations.

What Travelers and Industry Stakeholders Should Watch Next

For prospective visitors, the developments in the Azores raise understandable questions about future access, prices and the overall experience. In the short term, travelers planning trips for 2025 and early 2026 are unlikely to see major disruptions, as the most significant capacity cuts are scheduled further ahead. However, as airlines adjust their schedules and pricing in response to evolving costs and demand, flexibility in dates and routes may become more important for securing competitive fares.

Industry stakeholders will be watching closely to see how quickly authorities respond to the CCIA’s calls for action. Key indicators include any adjustments to promotional budgets, the launch of new or revamped marketing campaigns, and concrete steps to negotiate with airline partners before the Ryanair withdrawal takes full effect. Changes in airport fee policy or the introduction of targeted incentives for carriers would also signal a more proactive approach.

Observers are also monitoring how the Azores positions itself relative to other Atlantic and European island destinations. There is scope for collaboration as well as competition, particularly on issues such as sustainable transport, climate resilience and best practices in managing protected areas. The way in which the region leverages its strengths in nature tourism and scientific research, including marine and geothermal fields, could become a differentiating factor in an increasingly crowded market.

For now, the message from local business leaders is clear: without swift and coordinated measures, the gap between the Azores and more buoyant destinations like Madeira is likely to widen. Whether the current alarm leads to a decisive course correction will shape not only the islands’ tourism trajectory but also the broader economic future of the archipelago.

FAQ

Q1. Why is tourism in the Azores said to be in decline?
The Azores are experiencing softer bookings, shorter stays and increased discounting, according to local businesses and the regional Chamber of Commerce and Industry. These trends contrast with the strong growth seen in other destinations and suggest that the post-pandemic recovery has stalled, particularly outside the peak summer months.

Q2. What role does Ryanair’s withdrawal play in the Azores tourism outlook?
Ryanair has announced that it will cancel all flights to and from the Azores from March 29, 2026, removing around 400,000 seats a year. This will reduce connectivity and competitive pressure on fares, potentially making it more expensive and less convenient for many travelers to reach the islands.

Q3. How is Madeira’s tourism performance different from the Azores?
Madeira is currently enjoying record visitor numbers and revenues, with historic highs in overnight stays, passenger traffic and cruise arrivals. Airlines are adding capacity, and the region has been repeatedly recognized in international tourism awards, positioning it as one of Europe’s standout island destinations.

Q4. Why is the CCIA calling for urgent funding for the Azores?
The CCIA believes that without increased funding for promotion, targeted support for businesses and measures to secure air links, the Azores risk losing market share and jobs. The Chamber argues that the current downturn, combined with looming airline cuts, justifies a focused recovery package from both regional and national authorities.

Q5. Will travelers still be able to visit the Azores easily in the coming years?
In the near term, travelers should still find multiple options, particularly via national and European carriers that serve São Miguel and other main islands. However, the planned Ryanair withdrawal from 2026 and broader cost pressures could reduce choice and raise prices unless other airlines step in or new agreements are reached.

Q6. Is the Azores abandoning its focus on sustainable tourism?
No. Most stakeholders, including the CCIA, see sustainability as a core asset for the Azores. The current debate focuses on securing enough visitors and revenue to support local economies while preserving natural and cultural resources. The goal is to strengthen, not weaken, the sustainable model by making it more resilient and better supported.

Q7. How might government support be used to help Azores tourism recover?
Proposed measures include increasing international marketing budgets, offering temporary tax relief or financing tools for tourism businesses, adjusting airport fee policies and negotiating route commitments with airlines. Investment in infrastructure, training and digitalization is also seen as vital to improving competitiveness.

Q8. Are smaller islands in the Azores affected differently from the main hubs?
Yes. While islands like São Miguel and Terceira capture most arrivals, smaller islands often rely on more limited and seasonal flows. A broad downturn or loss of key routes can hit them disproportionately hard, as they have fewer alternative economic activities and less redundancy in transport links.

Q9. What lessons can be drawn from Madeira’s current tourism boom?
Madeira’s experience suggests that consistent investment in promotion, diversified connectivity and well-managed infrastructure can drive sustained growth. At the same time, it highlights the need to manage success carefully to avoid overtourism and protect quality of life, issues that the Azores may face if they succeed in reigniting demand.

Q10. Should travelers still consider the Azores for their next trip?
Yes. Despite current challenges, the Azores remain a strikingly beautiful archipelago with rich nature, culture and outdoor experiences. For travelers seeking less crowded, sustainability-focused destinations, the islands continue to offer strong appeal. The key is to stay informed about flight options and to plan flexibly as the regional tourism landscape evolves.