In recent years, the growing presence of rental cars in Madeira has been the subject of public debate. Many residents and experts have warned of a possible excess of rental cars, pointing out that the exponential increase in these vehicles could be contributing to congestion, parking difficulties and increased pressure in the most popular tourist areas. To see if this concern is well-founded, today’s fact-check analyses concrete data, compares the current reality with the pre-pandemic scenario and assesses measures adopted in other regions.
Rent-a-Car Increase?
According to data from the Regional Directorate of Economy and Land Transport, there has been a significant increase in the number of car rental companies in Madeira in recent years. In 2022, 34 new car rental companies were authorized in the Region. However, by November 2023, this number had already risen to 62 new companies, revealing accelerated growth in the sector. In 2024, there were already 170. In 2025, this number grew to 220. In other words, they grew six times more. This trend follows the increase in tourism in Madeira following the COVID-19 pandemic, which led many visitors to seek rental cars to explore the island independently.
The list is updated frequently and, by municipality, there are: 5 in Calheta, 7 in Câmara de Lobos, 100 in Funchal, 8 in Machico, 5 in Ponta do Sol, 2 in Porto Santo, 8 in Ribeira Brava, 29 in Santa Cruz, 2 in Santana, 4 in São Vicente. Porto Moniz stands out as it does not have any rental car offices and Funchal has almost 59% of the rental car companies in the region.
The number of vehicles associated with these companies has also increased significantly. It is estimated that there are currently around 14,000 rental vehicles registered in Madeira, a significant increase compared to the approximately 8,000 cars registered before the pandemic. This increase of more than 60% in just three years highlights the increased presence of these vehicles on the island and raises concerns about the pressure on local road infrastructure.
Impact and mobility
The growing presence of rental cars has contributed to the increase in traffic, especially in tourist areas and on the main access roads to Funchal. The roads between Funchal and Caniço, as well as the expressway that connects to the west of the island, are among the most affected. During the summer months, the presence of rental cars is particularly visible in the car parks near tourist attractions, such as Cabo Girão, Pico do Areeiro and the natural pools of Porto Moniz.
Residents report that during peak season, finding parking in residential areas has become increasingly difficult, as many tourists use these spaces to park their rental cars. This additional pressure has created dissatisfaction among local residents, who see their daily lives affected by this sudden increase in cars on the roads.
Limitation example
Other tourist regions have taken steps to control the increase in rental cars and minimise their negative impact. A prime example is Sóller in Mallorca, Spain. This town, known for its historic centre and narrow streets, has introduced restrictions on rental cars from 2025. Local authorities have decided to implement restricted traffic zones that ban rental cars from certain areas, allowing only vehicles belonging to residents and essential services to enter.
Another example is the Balearic Islands, which have set annual limits on the number of rental cars allowed during peak season. This measure aims to reduce congestion on the roads and protect the environment of the islands, which have limited road capacity.
In the Azores and Canary Islands archipelagos, the debate on limiting rental vehicles has also been gaining momentum, especially on smaller islands, where excessive traffic generates serious mobility problems and environmental pressure.
Strong Pressure in Madeira?
In Madeira, the areas most affected by the increase in rental cars are those that concentrate most of the tourist attractions and hotels. Funchal, the main urban and tourist centre of the island, is one of the areas with the greatest traffic congestion, especially on the roads that give access to the seafront and the old part of the city.
Other areas under heavy pressure include Caniço and Garajau, due to their proximity to the airport and the high concentration of local accommodation. Câmara de Lobos, where tourists come to enjoy the panoramic views and visit the viewpoints. Porto Moniz, famous for its natural pools, attracts a high flow of rental cars during the high season. Santana, known for its traditional thatched houses, also sees a high flow of tourists, with Pico Ruivo where the greatest pressure is.
Solutions
Given this significant increase in rental vehicles, some solutions may be considered if restricted traffic zones are introduced in some of the most congested areas, limiting access for rental vehicles to certain streets or historic centers.
Create peripheral parking lots with direct public transport links to tourist attractions or invest in strengthening and modernizing the public transport network, offering viable and comfortable alternatives to visitors or even establishing a system of seasonal limitations on the number of rental vehicles during the months of greatest tourist influx.
Conclusion
To conclude, the data analyzed confirms that there has indeed been a significant increase in the number of rent-a-car companies and rental vehicles in Madeira in recent years, especially after the pandemic. This increase has had a visible impact on the island’s roads, worsening congestion in the most touristic areas and making parking difficult in some residential areas.
Although Madeira has not yet implemented restrictions similar to those seen in Mallorca or other island destinations, introducing measures to mitigate this problem could prove essential to balance tourism growth with the quality of life of the Madeiran population. With tourism demand constantly growing, finding effective solutions to manage the flow of rental cars will be a crucial challenge in the coming years.
