ts Article

Foreign expatriate service provision in Portugal’s Algarve

Tourist Studies 10(1) 75–92 © The Author(s) 2010 Reprints and permission: sagepub. co.uk/journalsPermissions.nav DOI: 10.1177/1468797610390995 http://tou.sagepub.com

Martin Eaton

School of Environmental Sciences, University of Ulster, UK.

Abstract Portugal’s Algarve is home to a fusion of tourism activities, indigenous populations, inflowing holidaymakers and migrant settlers. This article investigates business development processes amongst 43 foreign expatriate service providers (FESPs) in Alvor and Albufeira. Many of these immigrant entrepreneurs believe that their businesses are functioning satisfactorily, are well established and are providing a range of traditional and niche service activities. Feminization of ownership is important, with several taking advantage of supportive co-preneurial relationships.This enterprising picture is linked to the ontological condition and use of a neutral language economy when discussing customer behaviour. Other key determinants include insular business practices and limited interplay with tourism authorities. Despite recession and competitive strains, it is argued that FESPs are playing significant roles, fostering social integration, providing jobs, and contributing to the resilient socio-economic performance found at these localized scales of analysis.

Keywords Algarve (Portugal); business isolation; economic resilience; immigrant entrepreneurship; ontological condition

The emergence of important holiday destinations throughout the Mediterranean basin has become synonymous with increases in mass transits of north-European tourists. Alongside burgeoning urban coastal developments and transport infrastructures designed to accommodate the package holidaymaker, many regions have developed special economic status. Portugal’s Algarve is one such environment. In this area, the local business context has developed through a fusion of indigenous populations, inflowing tourists and migrant settlers. Many contribute to a tourism product characterized by its mix of localand foreign-owned activities. In particular, we have witnessed the growth of foreign expatriate service provision and immigrant entrepreneurial outlets, towards which many

Corresponding author: Martin Eaton, School of Environmental Sciences, University of Ulster, Cromore Road, Coleraine BT52 1JU, Northern Ireland, UK. Email: [email protected]

76

Tourist Studies 10(1)

international tourists gravitate for a taste of home comforts (for example, ‘a cup of tea, pint of beer’, and so on; Huber and O’Reilly, 2004). These businesses are unique in offering convenience, familiarity and traditional fare; are invariably English-speaking, and can act as informal holiday advice/‘drop-in’ centres for tourists, expatriates and international retirees alike. They are also hybrid phenomena acting as re-creations of selected aspects of a home society (for example, the ‘British pub’, ‘English tea-room’, and so on), which draw upon images and products more popularly associated with the local resort culture (in this case, Portugal’s ‘sun, sea, sand and Super BockTM’). Despite its significance as a major tourist destination, Portugal’s Algarve has only attracted attention sporadically. Much of what exists focused upon the sustainability of sports tourism, especially golf (Correia et al., 2006) and the impact of events such as the UEFA-EURO 2004TM football championship (Perna and Custódio, 2008). A review of this literature confirms the region as an evolving tertiary, service-centred economy, but reveals that FESP has been ignored. We do know that the immigrant entrepreneur’s business can provide significant revenue alongside a comfortable climate and enviable living conditions (Oliveira and Rath, 2008). However, this success can also entail intense competition, long working hours, and strains on personal and professional relationships. Risk and reward appear to go hand-in-hand and the management of these businesses is a complex issue. It is a situation that demands further investigation, in line with Shaw’s (2004: 191) call to examine the: ‘economic marginality (associated with) many small (sized tourism) enterprises’ (STEs). With this background in mind, the article compiles an empirical examination of FESPs in the resorts of Alvor and Albufeira. Methodological and data collection issues and the difficulties associated with utilizing small numbers of respondents are detailed. Quantitative and qualitative enquiry, together with participant observation, combine to produce ethnographic research focused upon British/Irish-owned services. We are primarily concerned with factors affecting the local business development context and processes that have led to a trading environment defined by its entrepreneurial spirit. Our objectives are to profile the characteristics of the FESPs, investigate the reasons for their establishment and examine the timeline associated with their evolution. We will assess the levels of social and economic integration between FESPs and the local Portuguese population and tourism authorities. Finally, we analyse recent performance in light of the language economy utilized by our stakeholders, before determining future planning directions. In so doing, we evaluate Ioannides’ (2006: 80) statement that: ‘most tourism entrepreneurs are satisfied when their business reaches a stage of survival and, therefore, do not strive to make their business truly successful’. This notion that only the shrewdest proprietors survive but do not prosper is polemical. Equally, it is of interest to geographers, politicians and other social commentators seeking to understand the localized impacts of burgeoning expatriate communities in this part of south-western Europe’s: ‘low-cost pleasure periphery’ (Williams, 2002: 89). We begin by determining the scale of tourist inflow.

Tourist visitors Portugal is renowned for its Mediterranean climate, beach culture, golf courses, pilgrimage sites and spa towns – factors that have developed its status as a major tourist

Eaton

77

destination (Euromonitor International, 2008). In 2007 almost 24 million tourists travelled to the country, making it the world’s 17th most competitive location (Instituto Nacional de Estatίsticas, 2008a). Much of this product was confined to the coastal margin, with Lisbon and the southern district of Faro dominating the country’s spatial distribution (Antunes, 2000). Whilst the Algarve catered for one-quarter of hóspedes (hotel guests) taking a vacation to/in (continental) Portugal, they accounted for 45 per cent of bed nights spent in the country (Instituto Nacional de Estatίsticas, 2008b: 236, 238). As a result almost 12 million hóspedes travelled to/within Portugal. Of these, 2.9 million stayed in the Algarve region and the focal resort of Albufeira attracted 1.1 million (Fig. 1). This local council area was the most popular destination and enticed more than twice as many tourists as the second placed, Loulé. In market source terms, and mirroring the national picture (Agência para o Investimento e Comércio Externo de Portugal, 2008), about 411,000 of Albufeira’s guests were from the UK, 284,000 were domestic tourists and 98,000 travelled from Germany. In third position overall came the municipality of Portimão (containing the resort of Alvor), which attracted 0.4 million guests, the largest portion of which (137,000/34 per cent) were Portuguese travellers, followed by those from the UK (122,000/30 per cent) (Instituto Nacional de Estatίsticas, 2008b: 238). Algarve’s tourist economy has remained buoyant, with visitor numbers increasing annually from 1.9 million in 2001 to 2.4 million in 2004 and, again, to about 2.9 million by 2007 (Instituto Nacional de Estatίsticas, 2002, 2005, 2008b). This growth took place in spite of the strength of the Euro against other currencies, the emergence of strong alternative destinations in Egypt and Turkey, and in the face of recession afflicting Portugal during the past decade (Economist, 2007). Government has recognized the importance of the sector in contributing 10.4 per cent to national gross domestic product (GDP) (2007 figure; Instituto Nacional de Estatίsticas, 2008a), creating employment and generating revenue (Yasin et al., 2003). In March 2007, a regional initiative aimed at promoting the ‘Allgarve’ brand was announced. Portugal’s tourism agency sponsored a range of entertainment, and sporting and cultural events, including rock concerts and golf tournaments (Observatório do Algarve, 2008). Whilst ‘Allgarve’ provoked criticism from hoteliers’ associations and politicians (Thomson Reuters, 2007), there is little doubt that tourism remains a staple feature of the regional economy, and a key contributor to Portugal’s ongoing phase of national economic modernization.

Foreign settlers Based upon an extrapolation of this visitor data, it was clear that the clientele base (potentially) available to foreign-owned businesses in the Algarve was large, and likely to get bigger. Alongside the transient (short-term package) holidaymaker was an important, permanently resident foreign population. Table 1 shows that in 2007 legally resident foreigners were a significant part of the region’s demographic structure and accounted for 18 per cent of Faro district’s population – a community of more than 74,000. The majority of settlers (more than 13,750) were British, followed by Ukrainians (8825) and Brazilians (almost 8050) (Serviço Estrangeiros e Fronteiras, 2008). This heterogeneous breakdown reflected the triple nature of recent, tourism-informed

78

Tourist Studies 10(1)

Figure 1. The Algarve: location of study sites and municipal areas. Source: Instituto Nacional de Estatísticas (2007).

migration towards the Algarve. First, we can find large numbers of: ‘leisure consumers’ (Williams, 2002: 97) travelling from northern Europe upon retirement. In 2006 there were 6257 British pensioners living in Portugal, many of whom were assumed settled in the Algarve (Sriskandarajah and Drew, 2006). These ‘international retirement migrants’ (Casado-Diaz, 2006) were joined by a second group of ‘peripatetic consumption-led economically active migrants’ (O’Reilly, 2003: 303). These included the FESPs who own, live and work in second homes and/or businesses. In 2008 Portugal’s Ministry for Work and Social Welfare recorded 2314 British at work, with almost one-quarter predisposed towards self-employment (Ministério do Trabalho e da Solidariedade Social, 2010: 91–92). Third were growing influxes of migrant workers from Eastern Europe and South America, providing cheap labour to construct tourist infrastructure and provide domestic service (Baganha et al., 2004). Whilst this typology was different in terms of immigrant’s motivations, each shared a common bond that was linked to wider societal change and, above all, to ongoing growth in Portugal’s tourism sector. As a result, the old notions associated with tourism of locals versus tourists/host and guest have been superseded by rapidly changing flows of immigrant entrepreneurs, migrant workers and quasi-tourists. This influx has been facilitated by the rise of low-cost air travel, enhanced transport links, accessible property markets, and a more adventurous spirit amongst north Europeans, in particular (Stone and Stubbs, 2007: 433). A strong British presence in the Algarve illustrates the shrinking geographical scale of the European Union. Settlers from the UK represented almost one in five (18 per cent) of foreigners found (Serviço Estrangeiros e Fronteiras, 2008). These expatriates were a small part of a diaspora that was permanently living abroad, and estimated by Casciani (2006) to number 5.5 million. The main motivations for contemporary emigration of Britons reflected four flow factors. These were based upon family ties, and the

79

Eaton Table 1.  Main legally resident foreign communities in Faro, 2007 Country of origin

Authorized residents (n)

Authorizations of permanence issued (n)

Long-stay visas granted (n)

Total (n (%))

UK Ukraine Brazil Romania Moldova Germany Cape Verde Guinea-Bissau The Netherlands Bulgaria France Angola Others Total (n (%))

13767 8079 7076 5527 4637 5029 4123 2795 2840 1353 1329 1226 12828 70609 (95)

0 228 148 54 131 0 22 19 0 12 0 11 102 727 (1)

0 518 822 208 551 0 124 128 0 62 0 37 549 2999 (4)

13767 (18) 8825 (12) 8046 (11) 5789 (8) 5319 (7) 5029 (7) 4269 (6) 2942 (4) 2840 (4) 1427 (2) 1329 (2) 1274 (2) 13479 (17) 74335 (100)

Source: Serviço de Estrangeiros e Fronteiras (2008)

attractions of overseas adventure, work and lifestyle. Features three and four are important since we will be dealing with: ‘working age families and retirees attracted by a better quality of life, climate, values for money and recreational options … abroad’ (Sriskandarajah and Drew, 2006: ix). This is a popular image associated with those who are middle-aged, retired or semi-retired and investing in property, second homes and businesses overseas (Blake, 2003; Warnes and Williams, 2006). These: ‘lifestyle (immigrant) entrepreneurs’ (Ateljevic and Doorne, 2000) will, therefore, form a cornerstone of the investigation to follow.

Study areas Profiles of our study sites can be drawn (Fig. 1). Alvor is located 75 km north-west of the regional capital, Faro. It is a small parish of 5000 inhabitants that retains a fishing fleet and a traditional urban form based upon narrow cobbled streets and limited development. Visitor numbers are difficult to determine but in recent years Alvor has evolved into an attractive destination. Aimed particularly at families, middle-aged couples and senior citizens the locale has focused upon self-catering apartments and the courting of domestic tourists. Travel guides speak of a: ‘higgledy-piggledy port … (an) old town … (with its) unsullied whiteness … (and) fine azulejos (wall tiles) adorning the local church’ (Evans and Mohammadi, 2000: 110–11). Others described it as: a ‘bustling tourist centre’ with: ‘great restaurants along (its) waterfront’ (Ames, 2008). Enclosed by a lagoon and the relative safety that it brings, local beaches attract couples with young children. Ornithologists are enticed by the local river estuary and wetland. As a result, Alvor’s reputation has grown into offering a quiet and relaxed destination, with less of the urban

80

Tourist Studies 10(1)

tourist sprawl and fewer of the nightlife attractions found in neighbouring resorts such as Praia da Rocha or larger adjacent settlements such as Lagos or Portimão. Albufeira, our second site, is also located in the western half of the Algarve’s coastal fringe 45 km north-west of the region’s main gateway – the international airport at Faro. It is an archetypal package holiday destination containing a resident population of 13,650 (Pires Soares, 2004). As mentioned earlier, this figure swells by 1.1 million as a result of annual tourist influx, which reflects its position as one of the country’s principal tourism resorts. A recently constructed marina and regeneration of the old central quarter (through the POLIS initiative1) resulted in Albufeira claiming some of Portugal’s best quality of life indicators (Palma and Antunes, 2008). The area has a reputation for its boisterous nightlife, brightly painted accommodation blocks and attraction of a much younger and internationally diverse customer base. Twinned with Dunfermline in Scotland, critical evaluation has not always been complimentary. Travel guides speak of the settlement reaching: ‘its nadir in (the main square), an unappealing strip of burger joints and English style pubs’ (Evans, 2004: 460). Others claimed that: ‘much of the old town – and its pretty cobblestone streets and Moorish influences – is concealed … (by) Brits and Germans focused on cheap food, grog and nearby beaches’ (Armstrong, 2009: 205).

Methodological issues The phenomenon of foreign expatriate service provision is widespread throughout many coastal resorts and inland towns in the Algarve. Financial and temporal constraints, however, meant that large-scale survey was impossible. Alvor and Albufeira were selected on the basis of an observed presence of large numbers of foreign businesses (see Table 2). The sites offered (hypothetically) contrasting business environments, easy transportation access and a small area concentration of FESPs that allowed foci for investigation. In late spring 2008 surveys were carried out. Initially, field-workers identified and mapped nonPortuguese-owned businesses that were operational. Verbal requests for cooperation were made and a response secured, refused or negated. In some cases, owners were unavailable, unwilling, ‘too busy’, or simply closed. Additional difficulties were encountered because of the levels of suspicion, rivalry and competitive pressure permeating the local business environment. As Table 2 reveals, non-engagement was a factor, despite assurances on confidentiality of response and identification showing that our field-workers were not agents of the Portuguese authorities. Language constraints (not all respondents were native English speakers), alongside more contentious issues such as tax evasion, undeclared income, poor working conditions, health and safety concerns, and irregular forms of employment practice helped explain an incomplete response to the exercise. Unsurprisingly, these issues had an influence on the results that are outlined and a rigorous target or quota sample was impossible to attain. Table 2 confirmed that we were forced to rely on small number responses, which did not lend themselves to rigorous statistical analysis. Other limitations included the timing of the investigation, which may have introduced elements of bias because some businesses were emerging from winter rest periods leaving them in (overly) optimistic mood. Subjectivity was a factor since responses were value laden and contained conflicting elements of braggadocio, caution, self-deprecation and/or distrust. Our field-workers were forced to rely on unstructured ad

81

Eaton Table 2.  Survey details Resort

FESPs identified as operational (n)

Completed inquiries (n)

Co-operating FESPs (%)

Number of refusals/ non-response* (% of FESPs in resort)

Alvor Albufeira

23 51

12 31

52 61

11 (48) 20 (39)

*Refusals based upon non-English speaking FESP, suspicion of survey motive, FESP unavailable for comment, employee lacking in knowledge of business. Non-response based upon premises closed or inaccessible. Source: author’s survey (2008)

hoc approaches. However, where these were successful, led to fine-grained information with high standards of integrity being obtained, thus enabling more holistic explanation. In-depth, mixed-methods interviews, whereby qualitatively structured inquiry helps to explain quantitative results (Tashakkori and Teddlie, 2003: 62) were administered. In total, 43 expatriate-owned service outlets were investigated using a detailed, 47-item questionnaire, and including a variety of open-ended and closed questions. Twelve FESPs were interviewed in Alvor and a further 31 in Albufeira, representing estimated locale response rates of 52 and 61 per cent, respectively. Enquiry was initially targeted towards public bars, cafés and restaurants because these were the most visible and busiest forms of service provision. Moreover, licensed premises were directly associated with the popular received image of this part of the Algarve, thus offering a realistic, retailing environment. Finally, it was thought likely that owners of these businesses possessed shrewd knowledge of the operating conditions affecting the local market place. As a result of a snowballing technique (whereby field workers were recommended to visit another FESP, who was known to the initial respondent), we were able to informally network and collect information on a wide range of services. These included clothes retailers, bookshop owners, a tattoo artist and hairdressers, as well as proprietors of adult shops, real estate agencies, representatives of holiday excursion companies and events ticket sellers. These were a welcome addition to helping us understand the diverse operating conditions now affecting different types of entrepreneurial immigrant in this part of south-western Europe. However, it should be noted that we were only concerned with foreign businesses that were visible in the resorts. We ignored less obvious tradespersons such as builders and gardeners, as well as those involved in clandestine activities such as street-vending of counterfeit goods or prostitution. The results that follow represent a first attempt to discuss the role of foreign services in a small, previously un-researched and difficult to investigate part of the Algarve.

Profile of FESPs Because of the diverse nature and small numbers of respondents, a note of caution must be signalled when drawing a typical profile for the FESPs. In spite of this reservation, it was possible to outline an ‘immigrant entrepreneurial character’ owning these types of service. Table 3 shows that our business person was likely to be female, in her early

82

Tourist Studies 10(1)

40s and born in the British Isles. Twenty-eight per cent of the survey group were originally from England. She had traded in Portugal for about 11 years and ran licensed premises in the shape of a bar/restaurant. Many (68 per cent) of those running one of these food and drink services had previous experience either as a bar manager or employee. However, several respondents claimed no prior knowledge of the victualler’s trade, preferring to put faith in their ‘life experience’ and having done: ‘a bit of everything’. This fem-preneur operated her outlet on a full-time, all year round basis, with an employment structure focusing on a small (average of six employees per business) but seasonally variable complement of staff. Just over one-third of owners (35 per cent) utilized family members as workers, with over one-half (58 per cent) preferring to employ non-relatives. They, in turn, were likely to be drawn from the local Portuguese community (56 per cent of owners reported doing this). Ergo, family-orientated entrepreneurship was not as important amongst our FESPs as it was in the wider hospitality industry (Getz and Carlsen, 2000). Nevertheless, at the individual scale, these small enterprises were providing approximately 260 jobs to the local labour markets of Alvor and Albufeira. Engagement with the domestic population was, therefore, relatively pronounced and a process that was facilitated by 65 per cent of FESPs considering themselves to speak Portuguese at an intermediate or higher level. Moreover, almost two-thirds of those surveyed believed it essential that the native language should be spoken for their business to function efficiently. In general terms, the evidence showed that this female FESP was a well-established business person and one previously experienced in her particular service activity. Significantly, her business set-up had pre-dated the most recent Portuguese economic recession and she had benefitted from investing in a sector that was supply-driven. Her business operated on a small scale but she was open to employing domestic workers, was keen to learn the Portuguese language and willing to interact closely with the local population. With this starting point in mind, we turn to determining the reasons for establishment and subsequent development of our FESPs.

Business development Focusing upon the micro-scale, the development process associated with FESPs in different parts of the Algarve becomes more complicated. One of the aims was to determine Table 3.  Profile of foreign expatriate service providers Resort

Owners (n)

Alvor 12 Albufeira 31 Total (n (%)) 43 (100) Source: author’s survey (2008)

Male (n)

Female (n)

Nationality of owner (n) Average age Average of owner trading time British Irish Other (years) (years)

5 7 7 2 3 43 16 15 12 2 17 41 21 (49) 22 (51) 19 (44) 4 (9) 20 (46) 41

10 12 11

Eaton

83

factors behind foreigners setting themselves up in business. The results showed that in Alvor initial entrepreneurial motivation was based on the wider perception of there being a tourist market to capture and the personal importance of marrying a Portuguese partner. Remarkably, five FESPs in Alvor (42 per cent) reported co-preneurship as a main reason for moving into business (Bruin and Lewis, 2004), citing love and the mutual supportive relationships that accrued from marriage as important influences. In Albufeira, reasons were more variable, but start-ups reflected socio-economic opportunities such as business inheritance, cheaper rental costs, niche market potential and, again, large numbers of tourists offering a chance to make money. Equally, Albufeira respondents were pushed into entrepreneurial activity by lifestyle issues (Egan and Tosanguan, 2009: 19) such as stress, divorce and a colder climate in (mostly) northern Europe. The excitement-driven notions of ‘living a dream’ and/or ‘making a fresh start in mid-life’ had fuelled many to move to this part of south-western Europe. Equally, an awareness of favourable local conditions was an important motivating factor, especially in the mid- to late-1990s, when many of these FESPs were established. Table 3 shows that owners were likely to be female in Alvor and more likely to be male in Albufeira. The youngest entrepreneurs were found in Albufeira (average age 41 years old). Paradoxically, this was also where the longest established businesses (premises in existence on average for 12 years) were located. Establishment of FESP in the Algarve could, therefore, be seen as an older adult to early mid-life age phenomenon. With respect to previous experience in the sector, most (86 per cent) of the operators (or their spouses) in Alvor had some prior experiential knowledge. But many in Albufeira did not: 40 per cent were first-time proprietors. The presence of these types of foreign services was a relatively well-established phenomenon because in both resorts, businesses had been in place for periods on average in excess of a decade (11 years). These findings indicated longevity, assumed successful performance and noted a level of satisfaction/tolerance with the local operating environment. One caveat lay in the survey only identifying services that were operational. Observation showed, perhaps surprisingly given the competitive strains, that there were few expatriate businesses in a state of dereliction, up for sale, to let, or closed but undergoing renovation. At face value, turnover of births and deaths of firms did not appear to be high and can be interpreted as a sign of economic resilience. On the other hand, the price of this success was that almost all businesses in Alvor possessed a strong work ethic. Here, FESPs operated full-time, all year round and were particularly busy in the peak season, which ran between July and September (thus coinciding with the British/Irish summer, school holiday period). In Albufeira, opening times were more varied, and part-time working was a feature for 29 per cent of businesses. This reflected the strong seasonality associated with this resort; eight FESPs, for example, only opened in the summer. But it also demonstrated that the main business period was an equally intensive experience, longer in duration and perceived to run between May and September. In terms of national origin, Table 3 also shows that British and Irish owners predominated in Alvor, whilst Albufeira had a more cosmopolitan mix. Here, 17 different nationalities were represented ranging from Dutch and Italian through to Romanian and Nepalese ownership. This finding supports the idea that Alvor was developing as a local scale ‘foreign’ enclave, where British- and Irish-operated services were catering for

84

Tourist Studies 10(1)

specific groups of tourists who, in turn, were defined by their British Isles’ origins. This linkage was important because the FESPs were benefiting from their compatriot’s spending power. Most reported attracting foreign holidaymakers as their main customer and our Alvor respondents were happy with this situation to continue. In contrast, almost one-half of businesses in Albufeira enticed a mixed custom, ranging from foreign holidaymakers to expatriate residents and domestic visitors. Again, one would expect a reputable and well run bar or restaurant to become a focal point for a varied international clientele, as well for more receptive Portuguese, to congregate in. This is a reflection of human gregariousness and a causal effect based upon comfort, familiarity and shared interests. As a result, almost all FESPs in Albufeira (87 per cent) were happy with attracting these different types of customer, thereby engendering a more cosmopolitan atmosphere in their particular service environment.

Social and economic integration Verbal means of communication are important variables within the international tourist industry. Moreover, the ability to speak Portuguese and/or switch language codes are a factor in encouraging trade and, as a by-product, inter-community interaction. Table 4 shows that self-perception of second language attainment amongst FESPs was relatively high. In Alvor, one-third of respondents spoke Portuguese at an advanced or higher level, and in Albufeira even more (42 per cent) had reached these competencies. Our FESPs recognized the need to devote energies to improving their linguistic skills. Not surprisingly, Table 4 confirmed that 71 per cent of immigrant entrepreneurs in Albufeira thought Portuguese second language acquisition was essential for the smooth running of their establishments. This reflected the sustained development of a business over the 12-year average trading period found in this resort, which inevitably resulted in closer contact with Portuguese suppliers, retailers and customers. Land and business registrations, VAT collection inspections, and licence applications also had to be negotiated, and census forms and electoral registers filled in. Conversely, 58 per cent of FESPs in Alvor thought that Portuguese language attainment was not essential to running their business, again reflecting the prevalence of British/Irish owners and their preference for projecting themselves as English-speaking operations, attracting English-speaking customers. This enclave-like insularity was a striking feature and indicated that many FESPs were selfcontained and smaller operations (average size, 3.8 employees) than those found in Albufeira (average size, 6.3 workers). It also reflected the notion that Portuguese is a difficult language to learn. Indeed, one-quarter of respondents professing to speak at an intermediate level of ‘OK’ were probably using a hybrid form of ‘Portlish’, which allowed them to ‘get by’. On the other hand, it can be argued that English language attainment on the part of the indigenous/in-house Portuguese workers/spouses/business partners was high (especially in Alvor). These individuals acted (informally) as interpreters as specific needs arose. Discussion indicated that securing jobs in these establishments were prized objectives for many young Portuguese, especially during a period of economic recession, wage freezes and increasing unemployment (Economist, 2009). In both resorts, there was recognition of the usefulness of having bi-lingual (native Portuguese speaking) workers as

85

Eaton Table 4.  Competence levels and importance of Portuguese language to business Resort

None Beginner Elementary Average Advanced Fluent

Alvor 0 Albufeira 3 Total (n (%)) 3 (7)

1 5 6 (14)

2 4 6 (14)

 5  6 11 (26)

1 6 7 (16)

Yes, No, not essential essential

 3  5  7 22 10 (23) 27 (63)

 7   7* 14 (32)

*Plus two ‘undecided’ (5%). Source: author’s survey (2008)

part of a FESP. This was not surprising since English has become the second language taught in Portuguese schools, and local media (such as news bulletins) were often broadcast in this idiom. As a result, with increasing exposure to first and second English language speaking cultures, we have witnessed a growth in the relative levels of social interaction (and, therefore, the ongoing internationalization and integrative processes) between foreign visitors, expatriate business people and local populations in this part of the Algarve. Following on from this was the revelation that one-half of owners in Alvor were prepared to employ Portuguese workers, while in Albufeira the figure stood at almost 60 per cent. Consequently, 20 jobs were taken by Portuguese nationals in Alvor and a further 51 posts in Albufeira, providing valuable financial rewards for the individuals concerned and helping to support the local labour markets. There was also some evidence to suggest that French, Brazilian, Russian and Ukrainian workers were being taken on, again, reflecting the cosmopolitan nature of the Algarve’s immigrant workforce. Direct interaction with local Portuguese in the jobs market appeared to be related to how long a business had existed in a particular location. We have already seen that where FESPs were successful then this translated into owners feeling confident in what they were doing. This, in turn, creates employment, promotes longevity and produces a stable, self-sustaining business development process. As a result, it can be argued that these small ‘foreign investment’ enterprises have helped to underpin the economies of two important Algarve tourist resorts.

Recent performance Given this complicated operating environment, both within and between each resort, it was interesting to examine proprietors’ snapshot views of how their businesses were performing. In general, most owners rated the 2007 season as good with only six suffering from what they considered a bad or poor trading period. In Alvor, 42 per cent experienced a good or excellent season, and in Albufeira, 48 per cent viewed the previous year positively. On closer examination it was apparent that owners who had opened their businesses at least 10 years previously were experiencing the highest levels of trade and satisfaction. This, in turn, reflected establishment of a regular clientele, good management skills and financial stability, as well as evolution of good reputations for particular

86

Tourist Studies 10(1)

bars/restaurants/services, and so on. It also showed that our immigrant entrepreneurs were demonstrating initiative. Niche enterprises in diverse arenas such as clothes and accessories shops, tattooing parlours and boat excursions were bringing something fresh and/or different to a resort and, in turn, were said to be flourishing. This creative picture, covering older and newer forms of FESP, was encouraging and stood in contrast to other parts of the country, where many industrial sectors had been experiencing troubled operating environments (Leitão and Manso, 2007). When questioned on whether they would recommend others to follow in their footsteps, our owners held contrasting views. In Alvor, the majority of FESPs (67 per cent) were against the idea, citing potential pitfalls as stifling bureaucracy, lack of space for expansion and, most importantly, recognition of the increased competition that more foreign entrepreneurs would bring to a small locale. On the other hand, in Albufeira, more than one-half of business people (58 per cent) said others should set up premises here and focused upon the perceived advantages of weather, lifestyle, cheaper cost of living, better remuneration and greater levels of job satisfaction. Owner’s evaluations of their business performances were also examined in light of what they perceived as tourist-related problems. A majority of FESPs (65 per cent) stated that tourists did not bring difficulties, but where there were issues, 42 per cent claimed that Alvor had the most. Here, relatively minor problems were identified as intermittent noise and rowdiness, much of it related to screening of British football matches via satellite TV. The results showed that foreign owners were more aware of the advantages that visitors brought with them: money, spending power and revenue. It can be argued, therefore, that the manner in which FESPs spoke about the tourists and the language economy they used was significant. Our owners (particularly those in Albufeira) were measured and neutral in their comments. Many were careful not to jeopardize themselves, overtly recognizing the intrinsic value of their customers. An acute sense of self-interest and (indirectly) self-preservation (of a business) appeared to go hand-in-hand. The expatriate service phenomenon is clearly well established in this part of the Algarve and it followed that tourists and FESPs were part of a symbiotic relationship. The nature of the beast was such that without the holidaymakers the businesses in this investigation would struggle to re-create the positive performances of recent years. Equally, without the expatriate service provision in the first place there might not be enough tourists to sustain their performance. In many respects, our players were dependent upon each other and the circle of interdependency was particularly pronounced in Albufeira. Here, FESPs were (unsurprisingly) reluctant to compromise their economic positions by, for example, giving credence to the sensationalist impressions portrayed by some north European media (Press Association, 2004). Tabloid headlines often related to the by-products of hedonistic tourism such as excessive use of alcohol, hooliganism, drug-taking, promiscuous behaviour, and so on. As part of the survey, stakeholders were asked if they had detected a decline in troublesome behaviour on the part of tourists. Taken at face value, the results were inconclusive. A small majority of FESPs (56 per cent) stated that they had seen a decline in ‘lager lout’ activity. The rest were keen to play down the issue. Many argued that there hadn’t been a decline because there ‘wasn’t any trouble’ in the first place. Given the ontological condition associated with STEs, it appeared that the more extreme behaviour of tourists was either ignored, not acknowledged or tolerated. Whatever the truth, our

Eaton

87

business owners were sensitive to the issues, unwilling to condone or condemn, and reluctant to verify what they believed to be a mixture of myth, misinformation and false rumour, much of it exaggerated by extraneous media forces.

Planning and change If we accept the importance of this close relationship between the visitors to the Algarve and our FESPs, then in order to maintain their outwardly strong performances it was sensible to look at recent developmental changes as well as future pathways. Change in our survey translated into minor alterations and/or renovation. Moreover, in the year leading up to the investigation, 33 per cent and 45 per cent of FESPs in Alvor and Albufeira, respectively, had not undertaken any changes. This inactivity suggested a willingness to continue as before as well as a mindset that: ‘if the business wasn’t broken, there was no need to fix it’. On closer examination, FESPs in Alvor expressed a greater propensity to make alterations, with 67 per cent of owners having done so. However, in both resorts responses focused upon refurbishment, which usually meant small scale, self-help measures and amounted to cleaning, general maintenance, or painting and decorating of premises. Much of this reflected basic marketing principles, a sense of pride in their premises, a desire to conform to environmental health and workplace legislation, as well as having something to occupy themselves during their winter ‘rest/downturn’ periods. In the future, one in five businesses had no plans for development and a further seven per cent were looking to maintain their present positions. A position of aspiration stasis had been reached, therefore, by just over one-quarter of FESPs. On the other hand, 28 per cent were motivated by financial gain and wanting to expand, better promotion through advertising, attracting more custom and increasing profits. On the downside, one-third of owners in Alvor broached the possibility of renting their business out or selling up. These viewpoints suggested growing disenchantment with the local operating environment; the fact that several owners (and their spouses) were coming up to retirement; that some outlets were struggling to provide income; or a combination thereof. When FESPs were asked if they would be staying in Portugal, the majority were optimistic. In Alvor, three-quarters of respondents stated their intention to stay in their adopted country. Again this reflected the supportive relationships afforded by co-preneurial couples being part of a marriage and business partnership. But in Albufeira, only 44 per cent wished to stay: 16 per cent wanted to leave (most hoping to go back home) and the rest were unsure. Entrepreneurial trajectories were variable and a reflection of individual satisfaction with business performance as well as factors that were peculiar to each resort. While there was contentment with the situations that most FESPs found themselves in, there was also awareness of changing business conditions. Indeed, there was an unease amongst some Albufeira(n) owners who were cognoscente of more uncertain futures. In terms of host-country support for expatriate businesses we found limited interplay with Portuguese authorities (national, regional and/or local). In Alvor, none of our FESPs had received any external assistance, and in Albufeira only 19 per cent had gained support. Help came in the form of micro-scale provision of tourism advice and information, as well as building paraphernalia such as patio construction, terracing or signage. Just over one in ten foreign owners (14 per cent) had received fiscal or financial investment, thus

88

Tourist Studies 10(1)

contradicting conventional business wisdom claiming that supporting STEs through endogenous sources was good for tourism and, in turn, good for the local economy (Wanhill, 2000: 133). Compounding this result was the judgement that many respondents did not want external help because it represented unnecessary interference. In fairness, there are strict licensing regulations governing small businesses in Portugal and it is normally an expensive and time-consuming exercise. Our FESPs were critical of the system and saw little reward for compliance. One bar owner in Alvor, for example, revealed that he had: ‘been open for almost 6 years and yet (his) business remained illegal (in that his) operating licence was still to be issued’. Being foreign was a factor, because the ambivalence shown amongst the FESPs contrasted sharply with indigenous tourism entrepreneurs who were (naturally) more at ease with conforming to the legislative process (Silva and Edwards, 2003: 11).

Discussion The fragile and sensitive nature of both the material and community made the FESP a difficult topic to study, and limited us to a series of exploratory comments. Not withstanding the methodological, practical, subjective and small sample number difficulties encountered, the main feature to emerge was one of generally high satisfaction. Our immigrant entrepreneurs were particularly happy with their business performances and linguistic attainments. Gender issues were also to the fore as a result of the high degree of feminization associated with ownership of these businesses. We found evidence of previous experience and longevity since many FESPs had become well-embedded components of local service provision. Significantly, many of our businesses were set up when conditions in Portugal were favourable to enterprise (Syrett, 2002) and they had subsequently navigated pathways in spite of recession. An element of good fortune was involved because FESPs had invested in a sector that was driven by tourist numbers, the supply of which has remained buoyant. As we have seen, much of this life cycle maturation success was in the traditional bar/café/restaurant sector. But niche entrepreneurial activities as diverse as second-hand bookshops, tattoo-artistry and tourist boat excursions were also developing in a positive fashion. There were different attitudes affecting the performances of expatriate service provision in each of our study resorts. For example, respondents were divided on whether they would recommend other foreigners to follow in their footsteps. In Alvor, a generally smaller and cocoon-like operating environment led many to discourage others from entering, fearing heightened competition in an already highly competitive situation. On the other hand, in Albufeira, a much larger, more dynamic and diverse service environment, attracting significantly larger numbers of visitors meant that FESPs were less fearful of other immigrant entrepreneurs locating here in order to: ‘live their dreams’. Whilst there were idealistic connotations associated with this concept, it appeared that positive experiences outweighed negative issues where many of our owners were concerned. Indeed, ‘living the dream’ in the Algarve had resonance and in our stakeholder’s selfperceptions has lead to tangible success. If we return to the literature, Ioannides’ (2006) contention that many STEs were simply looking to survive is cast in doubt by the evidence. The level of outlet success is relative and can be gauged in financial but, just as

Eaton

89

importantly, in personal and emotional terms. We found that business co-preneurship based upon love, marriage and mutual support was a significant feature. Often, mixed nationality (British/Portuguese) couples shared ownership, management, commitment and responsibility for a business. Expatriate service provision, therefore, plays an important socio-economic role in the Algarve and, on this evidence, few can be labelled: ‘marginalised enterprises’ (Shaw, 2004). This does not, however, tell the whole story. A critical operating mass may have been reached in these resorts, as demonstrated by a small but growing unease. Problems related to ‘red tape’, attrition rates and strong competitive forces were frequently mentioned. Business development was stymied by the lack of interaction between local council/regional authorities/state tourism organizations and the FESPs. At the same time, local authorities (through the POLIS initiative, for example) were trying to improve the attractiveness of the local tourism environment. At the regional scale, the ‘Allgarve’ marketing campaign has continued to evolve. In both cases, Portuguese agencies were proceeding despite minimal contact with the foreign expatriate service provider. This absence of cooperation reflected a lack of understanding as to what the foreign businesses offered the local economy. Equally, it ignored the incentives that local authorities had available to the FESPs (see Peixoto, 2008). This is a position that may need to be rectified, but the intransigent attitudes of our stakeholders, suggested that this would be difficult to achieve. On reflection, a lack of interaction with the local/ regional authorities by the foreign owners was a result of the process being seen as futile. Our FESPs valued their independence, were confident in their own business knowledge, internally recognized the importance of second (Portuguese) language attainment, and preferred isolation and inertia rather than actively seeking out extraneous avenues for development.

Conclusions In summary, our small, independent businesses welcomed the financial opportunities afforded by tourists visiting the Algarve and spending money in their premises. At the same time, as a measure of local social and economic integration, our respondents were willing to learn the Portuguese language and interact with suppliers and customers. Most importantly, they were keen to offer jobs. In so doing, the FESPs have contributed small but, at the individual scale, important employment opportunities. Aimed particularly at domestic, immigrant, friends and family kin workers, about 260 tourism jobs have been created in the economies of Alvor and Albufeira. More than one-quarter (27 per cent) were taken by Portuguese workers. As a result, our FESPs were alleviating some of the problems associated with the spectre of unemployment. Indeed, many of these foreignowned businesses can be viewed as positive contributors to the labour market. Such an impact is predicated on a combination of self-interest, attitude, resilience, innate trading experience, local Portuguese employee input, self-contained operation and limited contact with authoritarian bodies. A viable business model has evolved – one that allows our FESPs to enjoy positions of strength at these localized scales of analysis. In spite of this upbeat evaluation, the future for these foreign-owned services is difficult to predict. Additional research, more spatially and temporally extensive investigation

90

Tourist Studies 10(1)

of FESPs, as well as discussions with expatriate community associations, business chambers of commerce, local councils, regional authorities and state agencies, are required. Equally, the influence of external events such as currency depreciation, emergence of alternative tourist destinations and ‘credit crises’ in North European supply economies may have a dampening effect on the Algarve. Internal factors such as worsening crime rates, urban congestion, traffic jams and vehicle accidents could also have an adverse impact. Consequently, fluctuations in visitor numbers, length of trading seasons and value of revenues may become commonplace. Nevertheless, it is likely that many of these long-established expatriate services will be self-sustaining, independently trading on the back of their hard-earned reputations. In so doing, our FESPs will continue to insulate their business practices, reject opportunities to cooperate with tourism agencies and maintain their status as key local tourist industry players. Note 1. POLIS is a Portuguese government initiative aimed at urban renewal and improved quality of life in 28 settlements, including Albufeira. Emphasis is on improving public amenities and local environments through provision of ‘green’ spaces and pedestrian friendly areas (see www.polis.maotdr.gov.pt/ for details).

References Agência para o Investimento e Comércio Externo de Portugal, EPE – Portugal Global (2008) Portugal Country Profile, January, MEI, Lisbon. Available from www.icep.pt/CmsAPI/AICEP/ index.html Ames, P. (2008) ‘Portugal’s Algarve Region: The End of Europe’, HeraldNet, 24th February. Available from www.heraldnet.com/article/20080224/LIVING05/527669577 Antunes, F. (2000) ‘Algarve: the Tourism Chain and the New Management of the Territory’, International Journal of Contemporary Hospitality Management 12(7): 431–34. Armstrong, K. (2009) ‘Portugal, the Algarve‘ (seventh edition), pp. 178–234 in Lonely Planet. Lonely Planet Publications Pty Ltd Victoria. Ateljevic, I. and S. Doorne (2000) ‘Staying Within the Fence: Lifestyle Entrepreneurship in Tourism’, Journal of Sustainable Tourism 8(5): 378–92. Baganha, M.I., J. Marques and P. Góis (2004) ‘The Unforeseen Wave: Migration from Eastern Europe to Portugal’, pp. 23–39 in M. Baganha and M.L. Fonseca (eds) New Waves: Migration from Eastern to Southern Europe. Lisbon: Luso-American Foundation. Blake, F. (2003) A Place in the Sun: Dream Homes Within Your Reach. London: Pan Macmillan. Bruin, A. de and K. Lewis (2004) ‘Toward Enriching United Career Theory: Familial Entrepreneurship and Co-preneurship’, Career Development International 9(7): 638646. Casado-Diaz, M. A. (2006) ‘Retiring to Spain: An Analysis of Differences Among North European Nationals’, Journal of Ethnic and Migration Studies 32(8): 1321–40. Casciani, D. (2006) ‘5.5m Britons Opt to Live Abroad’, BBC News. Available from http://newsvote. bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/hi/uk_news621 Correia, A., N. Videira, I. Alves, C. Ramires, R. Subtil, and M. V. Martins (2006) ‘Tourism Golf Scenarios: The Algarve Case’, Tourism and Hospitality Research 6: 179–96.

Eaton

91

Economist, The (2007) ‘The Portuguese Economy: a New Sick Man of Europe’, The Economist Newspaper, 12 April. Economist, The (2009) ‘Socratic Method’, The Economist Newspaper, 1 October. Egan, V. and P. Tosanguan (2009) ‘Coping Strategies of Entrepreneurs in Economic Recession: A Comparative Analysis of Thais and European Expatriates in Pattaya, Thailand’, Journal of Asia Entrepreneurship and Sustainability V(3): 17–36. Euromonitor International (2008) Travel and Tourism in Portugal, January. Available from www. euromonitor.com/Travel_and_Tourism_in_Portugal Evans, D. J. J. (2004) Portugal (fifth edition). Wimbledon: Cadogan Guides. Evans, D. J. J. and K. Mohammadi (2000) Portugal: The Algarve (second edition). London: Cadogan Guides. Getz, D. and J. Carlsen (2000) ‘Characteristics and Goals of Family and Owner-Operated Businesses in the Rural Tourism and Hospitality Sectors’, Tourism Management 21(6): 547–60. Huber, A. and K. O’Reilly (2004) ‘The Construction of Heimat Under Conditions of Individualised Modernity: Swiss and British Elderly Migrants in Spain’, Ageing and Society 24: 327–51. Instituto Nacional de Estatísticas, I. P. (2008a) Estatísticas do Turismo 2007 [Tourism Statistics 2007]. Lisbon: INE. Instituto Nacional de Estatísticas, I. P. (2002, 2005, 2007, 2008b) Anuários Estatístico da Região Algarve [Statistical Yearbooks of the Algarve Region]. Lisbon: INE. Ioannides, D. (2006) ‘Commentary: The Economic Geography of the Tourist Industry: Ten Years of Progress in Research and an Agenda for the Future’, Tourism Geographies 8(1): 76–86. Leitão, D. G. and J. R. P. Manso (2007) Os Custos Económicos do Desemprego na Beira Interior [Economic Costs of Unemployment in Beira Interior]. Covilhã: Universidade de Beira Interior. Ministério do Trabalho e da Solidariedade Social (2010) Quadros de Pessoal 2008 [Employment Tables 2008]. Lisboa: MTSS GEP. Observatório do Algarve (2008) ‘Allgarve ‘08 will Cost 2 Million Euros’, Central de Notícias do Algarve, 26 May. Available from www.observatoriodoalgarve.com/can/noticias_print. asp?noticia=22440 Oliveira, C. S. and J. Rath (2008) ‘Introduction to Special Issue on Immigrant Entrepreneurship’, Migrações 3: 11–27. O’Reilly, K. (2003) ‘When is a Tourist? The Articulation of Tourism and Migration in Spain’s Costa del Sol’, Tourist Studies 3(3): 301–17. Palma, P. and D. Antunes (2008) ‘Albufeira é o Melhor Local Para Viver [Albufeira is the Best Place to Live]’, Sol, 23 February. Available from http://sol.sapo.pt/PaginaInicial/Sociedade/ Interior.aspx?content_id=82015 Peixoto, J. (2008) ‘Limits and Opportunities of Immigrant Entrepreneurship’, Migrações 3: 285–87. Perna, F. and M. J. Custódio (2008) ‘Importance of Events in Tourism: Impacts of the UEFA-EURO 2004TM on the Accommodation Industry in Algarve, Portugal’, Anatolia: An International Journal of Tourism and Hospitality Research 19(1): 5–22. Pires Soares, N. (2004) ‘Uma População Que Se Urbaniza [An Urbanizing Population]’, pp. 104–19 in Atlas de Portugal. Lisbon: IGP. Press Association (2004) ‘20 Held After Euro 2004 Riots’, Guardian, 16 June. Available from www.guardian.co.uk/football/2004/jun/16/euro2004.sport19 Serviço Estrangeiros e Fronteiras (2008) População Estrangeira em Território Nacional [Foreign Population in Portugal’s National Territory]. Lisbon: SEF.

92

Tourist Studies 10(1)

Shaw, G. (2004) ‘Entrepreneurial Cultures and Small Business Enterprises in Tourism’, pp. 122–134 in A. Lew, C. M. Hall and A. M. Williams (eds) A Companion to Tourism. Oxford: Blackwell. Silva, G. and J. Edwards (2003) ‘Tourism-Related Entrepreneurship in Selected Portuguese Rural Areas’. Available from www.iturismo.pt/resources/download/Paper_2003_Gorettirevisto.pdf Sriskandarajah, D. and C. Drew (2006) Brits Abroad: Mapping the Scale and Nature of British Emigration. London: Institute for Public Policy Research. Stone, I. and C. Stubbs (2007) ‘Enterprising Expatriates: Lifestyle Migration and Entrepreneurship in Rural Southern Europe’, Entrepreneurship and Regional Development 19: 433–50. Syrett, S. (2002) ‘Portugal Transformed’ pp. 1–24 in S. Syrett (ed.) Contemporary Portugal: Dimensions of Economic and Political Change. Aldershot: Ashgate. Tashakkori, A. and C. Teddlie (2003) Handbook of Mixed Methods in Social and Behavioural Research. Thousand Oaks, CA: Sage Publications. Thomson Reuters (2007) ‘Portugal under Fire for Algarve Brand Tweaking’, Reuters, 21 March. Available from www.reuters.com/articlePrint?articleId=USL2019417120070321 Wanhill, S. (2000) ‘Small and Medium Tourism Enterprises’, Annals of Tourism Research 27(1): 132–47. Warnes, A. and A. M Williams, (2006) ‘Older Migrants in Europe: A New Focus for Migration Studies’, Journal of Ethnic and Migration Studies 32(8): 1257–82. Williams, A. M. (2002) ‘Tourism in Portugal: From Polarisation to New Forms of Economic Integration?’ pp. 83–103 in S. Syrett (ed.) Contemporary Portugal: Dimensions of Economic and Political Change. Aldershot: Ashgate. Yasin, M., J. Alavi, F. Sobral and J. Lisboa (2003) ‘Realities, Threats and Opportunities Facing the Portuguese Tourism Industry’, International Journal of Contemporary Hospitality Management 15(4): 221–25.

Martin Eaton is Reader in Human Geography. An economic geographer by trade, he has researched extensively on issues related to the Portuguese labour market. These include the impacts of Lusophone immigrants, child-working, regional and industrial development funding and, most recently: Eaton, M. (2010) ‘Portuguese Migrant Worker Experiences in Northern Ireland’s Market Town Economy’, Portuguese Studies, 26 (1):10–26. Address: School of Environmental Sciences, University of Ulster, Cromore Road, Coleraine BT52 1JU, Northern Ireland, UK. [email: [email protected]]