Rent-a-Car business soared due to high demand

Tobi Hughes·
Madeira News

This year alone, 47 new companies have already been licensed in this area. It is estimated that there are already more than 70 renta-ar companies in the Region. 

Just totally shocking. There are rent a cars everywhere now, and one of the biggest problems, is the parking of these and you see across social media that residents are complaining all over the island for the lack of parking.

See the video in Portuguese on the link below.

From RTP Madeira

Previous ArticlePTP: “DIGITAL INVESTMENT IN MADEIRA IS BULl#@IT FOR THE ENGLISH TO SEE”
Next ArticleIPMA again extended warning for hot weather in Madeira
Tobi Hughes

7 Responses

  1. Many people might not like what I’m about to say but having lived on Madeira for 18 years these changes seem sadly inevitable. It’s not just car rental businesses that are springing up currently like mushrooms. Madeirans seem to be very go at jumping on a bandwagon once one person discovers a “New market”. Eighteen years ago finding a single estate agent was a problem, everything was behind closed doors, on line or via phone calls and word to word contacts. There was not one icecream outlet in Funchal, nail salons and “barbershops” were unheard of and just one or two “trendy bars” were to be found in the city centre. The “service sector” that was virtually unheard of (apart from the much smaller number of hotels) has grown dramatically and new retail outlets now make buying everything you need to build and furnish a home considerably less difficult than twenty or more years ago. My only fear is as more and more Madeirans see AL, car rental, or any of dozens of new ventures serving the huge growing number of tourist as a easy road to riches. There must however come a time when every market becomes saturated and prices start to be slashed simply to try to build or retain any small share of an oversupplied market. Obviously some individuals and even new companies may be making healthy returns at the moment but the ever increasing numbers of tourists has to reach a plateau eventually and those who have only just opened their new businesses are going to find the expected days of making “easy money” have disappeared. The government’s obvious belief in “free markets” might be currently making some very wealthy but on an island with totally fixed limitations on expansion this policy could end up destroying the “Golden Goose” that attracts tourists and mean no more “Golden Eggs” for anyone!

    1. It’s called opportunity, some will make it, some will fail, be glad the opportunities are available. Speaking from experience, there is no easy road to riches.

  2. About 5 years ago I was having lunch with the retired sales director of Avis Finland. He was gobsmacked how many rent a car agencies there were on the island. He said that it was impossible for them all to be profitable. He calculated roughly that there was a market for 5 or 6 profitable agencies and no more. 70 now is truly out of control.

    1. Whilst the numbers of tourists has dramatically increased over the last five years I certainly agree with your friends comments about oversupplied markets being unprofitable. Of course with the tax allowances for “New businesses” and the opportunities for tax right offs and even money laundering by certain very rich individuals I would be interested to hear how many of the “New businesses” actually are private individuals and how many are friends or associates of certain individuals looking for somewhere to divert tax liabilities or undeclared incomes? As we all know money goes to money and “only little people” actually pay taxes!

  3. So, 70 Car Rental Companies, with 47 new ones this year. Surely the total number of cars, which we aren’t told, is the the number we need to hear.

  4. The recipe for improving the parking situation has long been known – good public transport, bicycle/ scooter/car sharing and taxis. But every government is trying again and again to invent something of their own.

Comments are closed.

© 2023 Madeira Island News | Privacy Policy