Quick Read
- Car rental demand in the Azores has fallen by 30% following the withdrawal of Ryanair on March 29.
- Industry experts warn that the lack of carrier competition could further threaten tourism during the upcoming winter season.
- Despite the logistical downturn, Sete Cidades is experiencing an early peak in hydrangea blooms, remaining a key draw for international visitors.
PONTA DELGADA (Azat TV) – The Azores are facing a stark contrast this spring as the region’s natural beauty reaches its annual peak while its tourism infrastructure grapples with the fallout of a major carrier’s departure. While Sete Cidades on São Miguel Island is currently experiencing a vibrant hydrangea bloom, local businesses are reporting a 30% drop in car rental demand following Ryanair’s exit from the archipelago on March 29.
Economic Impact of Ryanair’s Withdrawal
The decline in rental bookings, confirmed by Luís Rego of the Association of Car Rental Companies (ARAC), became immediately apparent during the Easter period. Industry stakeholders attribute this downturn directly to the loss of the low-cost airline, which had maintained a base in the region since 2015. Ryanair’s decision to leave, driven by disputes over airport taxes and government policy, has left travelers with fewer options, relying primarily on SATA and TAP for connectivity.
Sete Cidades and the Spring Tourism Push
Despite the logistical challenges facing the broader tourism sector, the Sete Cidades volcanic crater remains a focal point for international visitors. The area is currently seeing an earlier-than-usual peak in hydrangea blooms, which frame the iconic Lagoa Azul and Lagoa Verde. With direct flights still connecting the East Coast of the U.S. to the islands, tourism boards are emphasizing the accessibility of these natural landmarks, encouraging travelers to utilize shoulder-season deals before the summer rush begins.
Future Outlook for Azorean Travel
Looking ahead, industry representatives remain cautiously optimistic that increased flight activity during the peak summer months may mitigate some of the current losses. However, there is growing concern regarding the upcoming winter season. Without intervention or new flight incentives, experts warn that the reduced carrier competition could lead to an even sharper decline in tourism demand between October and March. The regional government’s previous attempts to negotiate the airline’s return were unsuccessful, leaving local businesses to navigate a shifting landscape in one of Europe’s most remote destinations.
The 30% drop in rental demand underscores the fragility of island economies heavily reliant on low-cost carrier capacity, suggesting that natural attractions like Sete Cidades may not be sufficient on their own to sustain tourism volume during the off-peak shoulder seasons.