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Politics · Funchal · 9 August 2026

Machico PSD Criticizes Local Accommodation Regulation for Penalizing Investment

Machico's PSD party believes the new Local Accommodation regulation penalizes investment and economic development.

PSD councilors in Machico Municipality have expressed deep concern over the proposed Municipal Regulation for Local Accommodation (AL) presented by the socialist majority. They believe the document is excessively restrictive for tourism activities and sends a negative signal to potential investors.

The PSD acknowledges the need for a regulation that balances housing and tourism but argues that this balance should be achieved through policies encouraging quality, urban rehabilitation, and sustainability, rather than restrictions and limitations on investment. According to the party, the proposal focuses on containment mechanisms and bureaucracy, ignoring AL's role in building recovery, historic center revitalization, and economic stimulation.

The party criticizes the lack of a clear strategy to boost nature tourism and the creation of bureaucratic and urban barriers for small projects. Furthermore, they point out the absence of measures to incentivize improvements in tourism offer quality, such as energy efficiency or sustainability. The PSD believes the regulation penalizes small owners and families, protecting established operators and reducing investment opportunities for new generations.

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