An investigation carried out by local journalists reveals the discriminatory way in which prices are set in the premises of the center of Lisbon, the capital of Portugal, differentiated between tourists and locals.
Lisbon Portugal Photo source nacionalidadeportuguesa com br
According to the Portuguese weekly Expresso, in the picturesque historic center of Lisbon, menus displayed in several languages indicate prices “special” for tourists. But, for the locals, the prices “transmitted verbally, whispered or indicated on menus placed in discreet or even hidden places” are smaller. This masked pattern is justified by overtourism and is a method of overcharging tourists, but it has the potential to boomerang – backfire on those who apply it.
The scandal in Lisbon captured international attention, sparking reactions from the global media. The Telegraph, for example, headlined: “Tourists ‘fooled’ by double prices in Lisbon restaurants / Report on hidden, lower prices for locals amid complaints about overtourism“.
Experts confirm the practice is ‘completely illegal’
Industry insiders told Expresso that setting different prices for food based on nationality is “completely illegal”. “It is a huge illegality”said Marcelino Abreu, lawyer specialized in consumer law.
The association AHRESP, which represents Portugal’s hospitality industry, said it had no information about restaurants charging discriminatory prices to tourists. The representatives of the association emphasized that the prices for the preparations must be uniform for all customers and displayed “in a completely transparent way”.
Discrimination under the pretext of overtourism
The revelations about differential pricing come amid a backlash against the impact of mass tourism in popular areas of Portugal and Spain.
Lisbon residents have recently started campaigns to lessen the negative effects of overtourism, including banning the tuk-tuk taxis frequently used by tourists.
A group dedicated to affordable housing for locals has launched a petition with 9,000 signatures, enough to initiate a referendum in Lisbon. This referendum aims to ban the short-term rental of Airbnb-type units for tourists.
Last year, the population of Lisbon multiplied 11 times
In 2023, Lisbon, with a population of 570,000, received 6.5 million foreign visitors.
In the Portuguese capital, rents have risen by 94% and house prices have exploded by 186% since 2015, according to real estate data specialists Confidencial Imobiliario.
In Barcelona, Spain’s most popular tourist city, it was recently decided that, until 2028, licenses for 10,000 short-term rental apartments would be suspended.
In Lisbon, there are an estimated 20,000 apartments for tourists.
The rent crisis between myth and reality
However, the former president of Tourism Portugal admitted that while the tourism sector faces challenges, he dismissed the idea that tourism is primarily responsible for the capital’s housing crisis. Luís Araújo stated on ECO TV that the problem of Lisbon is not the excess of tourists, but the bad management of the city: “If you ask me if there is too much tourism in Lisbon, I say no. If you ask me if there is bad management, I say yes.”
The Municipal Council of Lisbon decided last month to increase the tourist tax for accommodation in the capital from two to four euros per night, a change that will come into force from next Sunday, September 1, 2024.
Last year, Portugal recorded 26.5 million foreign tourists, marking an increase of 19.2% compared to the previous year and 7.7% more compared to 2019, before the pandemic.
