Intermittently, from time to time, we have decision-makers with governmental functions who look at entrepreneurship as a right. Rulers with professional careers in private enterprise and associations, such as João Vasconcelos, Secretary of State for Industry between 2015 and 2017, who know the difficulties of those who want to choose entrepreneurship in Portugal. Decision-makers committed to the democratisation of access to entrepreneurship and the simplification of procedures started in 2006, with the creation of the SIMPLEX package of measures, facilitating the creation and sustainability of new businesses. Governments that considered that start-ups had and would continue to have a huge impact on urban regeneration.
It was in a context of the spreading international financial crisis, which led to the intervention of the Bank of Portugal in BPP - Banco Privado Português, and the nationalisation of BPN - Banco Português de Negócios, of the slowdown in economic growth due to the impacts of rising oil prices, foodstuffs and interest rates, that Decree Law no. 39/2008 created the concept of Local Lodging.
In 2009, a Marktest study commissioned by the Lisbon Municipality and integrated in the Local Housing Programme, pointed to the fact that the dwellings
"need work" and were
"old" as the reasons for dissatisfaction for the city's residents. It should also be noted that residents in neighbouring municipalities were more satisfied with their housing than those living in
Lisbon.
The poor state of housing was the main problem highlighted. In view of these data, councillor Helena Roseta warned that "the city is sick and needs to be treated. The city is not competitive".
In that same year, a survey carried out by the Lisbon City Hall detected that 55,000 properties were in poor condition or in a state of ruin. According to the Census, Lisbon - which in 1981 had 807937 inhabitants - had 547733 inhabitants in 2011. On 6 April 2011 Portugal resorted to international financial aid. Until the 1st quarter of 2013, we experienced the biggest economic recession since the 1980s. In the 1st quarter of 2013 the unemployment rate reached 17.1%. A significant portion of the unemployed population had no choice but to emigrate, as I did, or to start up a business here.
Many of those who stayed on resorted to the support of relatives and their savings, taking out long-term loans to invest in the rehabilitation of dilapidated properties they owned or acquired. The vast majority of these properties, which were either uninhabitable or lacking rental market demand, were transformed into residential units for tourist accommodation. Despite the local changes and constraints that were introduced over time, they believed in the continuity of the legal and fiscal framework, betting on an economic activity that today represents 40% of the supply of accommodation for tourists. Thousands of families who depend directly or indirectly on this activity, believed that it would be unlikely that the decision-makers would decree its end.
By way of example, in the Algarve, 85% of the regional GDP depends on tourism, and the AL accounts for 55% of the tourist offer. These are small businesses that will not be able to survive due to tax asphyxia; the alterations already approved may double or even quadruple the tax burden in terms of IMI and the CEAL - Extraordinary Contribution of Local Lodging, in the simulations possible according to the information made available, in many cases is higher than the Net Income of the operation. With these tax measures,
the government would decree the end of Local Lodging, the bankruptcy of micro and small family businesses and would bring unemployment to thousands of people mostly without the right to unemployment benefit. The traditional hotel industry will not absorb this type of demand. But who would be the main beneficiaries? The tourist destinations that compete with us and the illegal networks that exploit the overcrowding of properties.
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