The tourism position in the Algarve economic structure: a regional analysis

This paper analyses the evolution of the Algarve’s economic structure and the position achieved by tourist activity in the region between 1995 and 2003 to evaluate the region’s degree of specialization on tourism. The methodology applies the regional analysis tools, in particular the location and specialization indicators and the analysis is developed both at the inter-regional and intra-regional levels. 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 restaurants, which is directly connected to tourism, and other sectors such as fishery, trade, transports, communications and other services, which are indirectly connected to tourism. Furthermore, the focuses of concentration are limited to the coast line, with particular relevance in the areas of Albufeira, Vila do Bispo and Portimão