The Position of Tourism Activity in the Algarve’s Economic Structure: An Integrated Region-Specific Analysis

Abstract

This paper analyses the evolution of the Algarve’s eco- nomic structure and the position achieved by tourist activ- ity in the region between 1995 and 2003 to evaluate the region’s degree of specialization on tourism. The meth- odology applies regional analysis tools, in particular the location and specialization indicators and the analysis is developed both at the inter-regional and intra-regional lev- els. The results suggest that the Algarve is the second most specialized region in the country, together with the region of Madeira, and behind the region of Azores. In the basis of this phenomenon are the sector of hotels and restau- rants, which is directly connected to tourism, and other sectors such as fishery, trade, transports, communications and other services, which are indirectly connected to tour- ism. Furthermore, the focuses of concentration are limited to the coast line, with particular relevance in the areas of Albufeira, Vila do Bispo and Portimão.