The Regional Government of Madeira is preparing a new law that promises to transform the region’s rent-a-car sector . Among the most notable measures are the introduction of a daily fee of €2 per rental vehicle and the imposition of stricter parking regulations for companies in the sector.
A response to the excess of vehicles in Madeira.
In recent years, Madeira has seen an exponential increase in the number of cars on the roads, largely due to tourism. It is estimated that around 250 new rental cars enter the region every week , which corresponds to over 1,000 vehicles per month . Over the course of a year, this number could exceed 12,000 cars , adding to the more than 100,000 already existing .
This pressure is jeopardizing urban mobility , increasing the risk of road accidents and worsening the already intense daily traffic on the island’s main roads.
The legislation currently under consideration will impose a €2 per day fee on all tourists and residents who choose to rent vehicles. Furthermore, companies in the sector will be required to guarantee mandatory parking areas to prevent the disorderly occupation of public spaces.
The measure aims to control the rent-a-car trend and, at the same time, reduce its excessive profitability, seeking to curb the uncontrolled growth of vehicles on the island.
Although the decision’s main focus is preserving the quality of life of the resident population and the sustainability of mobility, companies question the impact these measures could have on the tourism sector , one of the drivers of Madeira’s economy.
Business owners involved in the car rental industry fear that the new tax will drive away tourists and reduce Madeira’s competitiveness compared to other tourist destinations. On the other hand, urban mobility experts consider the measure necessary and urgent, arguing that the island can no longer withstand the current level of automobile pressure .
The announcement of this measure promises to spark a heated debate among business owners, residents, and public entities. For some, it’s a balanced solution that can ease traffic and reduce accidents . For others, it’s an unnecessary barrier that could negatively affect the tourism sector and the region’s image.
The action is expected in the coming weeks, and with well over 20,000 cars for rental on the island, it will be nice to see a lot of these popup companies, and ilegal ones disappear.
At the moment some companies are offering cars for as little as 6 euros a day, but anyone renting without full insurance, be warned as they will sting you for this or blame you for the slightest scratch on the car.