Rent-a-car already worth 700 million euros when related to the Tourism sector

It is one of the fastest growing sectors thanks to the increase of the Tourism sector in Portugal: car rental companies, such as rent-a-car, had revenues of about 700 million euros only last year.

The growth was 45% compared to 2016, with the British being the main customers. The numbers, however, will not stick around. The Association of Manufacturers of Rental Cars without Driver (ARAC) anticipates another year of gains because of foreigners. The sector expects to buy even more cars this year than in 2017, according to the association's secretary general, Joaquim Robalo de Almeida, to JN / Dinheiro Vivo.

"The rent-a-car sector, in order to meet demand, has to have the fleet adjusted. So we will have to buy more. We should buy 5% more cars this year compared to 2017", when last year alone, the rent-a-car bought 58 thousand passenger cars, equivalent to more than a quarter of this market, according to the Automobile Association of Portugal.

The companies rely on the Government's forecasts, which anticipate new growth of more than 10% in the tourism sector. The association predicts that the car fleet of these companies, with the new acquisitions, is expected to reach 90 thousand vehicles. The number alone is not higher, because "most companies get cars only between six months and a year."

Tourism, thanks to the great growth of the last years, already represents 6 in 10euro of revenues for the sector. Four years ago, according to the secretary general of ARAC, the companies represented 60% of the rent-a-car billing. "Portugal has a fantastic climate and just needed more promotion. We have to continue to focus on touris."

Despite the numbers, the association says that "there is no risk of over-reliance on tourism." It is only necessary "to have mechanisms and rules so that growth does not reveal, as in some parts of the world, a factor to generate internal conflicts". Portugal, the leader believes, "is aware of this." Joaquim Robalo de Almeida recalls that "tourism is largely responsible for most post-troika jobs".

The main fears of the sector are on other fronts. "The legislation we have is a barrier, with very tight rules. The ideal situation is to have clear and workable rules," he says. "The businessman does not have to be a lawyer", he reclaims.

The digitization of the car rental process has been one of the main suggestions of ARAC for some years and can be satisfied soon.

Deputy Secretary of State and for the Environment, José Mendes, announced "surgical changes" in the rent-a-car law, at the association's second convention last week.

The signing of the contract through the smartphone should be one of the main changes contemplated in the law, which meets the claims of the association. "Renting a car has to be as easy as getting to the hotel and giving you the car key. It should take four or five minutes”.