It is fantastic news that having ZINO seeded the ideia of Madeira being a great location to host and incubate startups (including weather, resources, infrastructure and tax advantages), that the project is to be taken on and promoted by CEIM - Centro de Empresas e Inovação da Madeira who will take on the Madeira Startup name and brand, to be published at 14h00.

For more information on how ZINO can help with your startup as well as potential funds and application, visit our dedicated page to Madeira Startup.

Ordem dos Economistas - Delegação Regional da Madeira promote the IX Annual Tourism Conference on 15 May around the topic of tendencies and trends.

Ordem dos Economistas - Delegação Regional da Madeira - http://www.economistasmadeira.org/

Programme is split into three main topics:

Some argue that having only ever reached 60% occupancy, Madeira has an excess of accommodation offer for the visitors it can attract (or the airport has capacity for) whilst others defend that, considering the improved indicators in 2013 and maintained during the first 4 months of 2014 compared to the same period in 2013 (9,6% increase in hotel arrivals, 8,8% increase in bed nights and resulting 15.2% increase in total revenue - source DRE) - no doubt partially driven by the instability in and around the Mediterranean and North Africa -  that if Madeira were to better promote itself, the best of both worlds could be achieved: more visitors to Madeira and Porto Santo thus reducing seasonality, higher revenue for the destination and (more) profitable tourism investments and surrounding activities, including hotels, wine, food, attractions and outdoor holiday activities for which Madeira has an outstanding offer which can be done all year due to the island´s mild climate.

Madeira is currently highly dependent on Tour Operators to promote and distribute the destination as well as the their flight operations to bring visitors to the island. Hotel managers have to negotiate their rising costs against revenue, which is mostly generated through Tour Operators, who constantly negotiate to reduce price, request a discount mechanism or charge an additional marketing fee to resell and promote the destination and the hotel / tourism activity supplier.

I doubt there is one single silver bullet to address the challenges that face the tourism industry, not only in Madeira and Porto Santo, but here go some suggestions:

• trying a "tourism fair trade campaign" where holiday makers and visitors to destinations as asked if the price they paid for their holiday is "a fair price", bearing in mind the flight, the investment to build and maintain the accommodation, the hot water / food and above all the great staff that welcomed them during their stay
  
• more associative action between tourism investments and stakeholders to promote themselves and their offer
• strategic plan, developed and with "buy in" from all steak holders, with clear objectives and steps to achieve these objectives, similar to New Zealands 2015 plan with regular review points to adjust according to results achieved
• better, more effective and more selective promotion including less "dispersion" and more "concentration" on the destination and its offer, respecting the niche markets
• better understanding, transparency and clearer overview of the application of promotion support (from airline/route to Tour Operator and direct campaigns) to better apply the support
• quantitative analysis of the return on promotion support
• availability of tourism data, including airport statistics, as in the UK CAA
• comparison and benchmark for competing destination 
• better management of tourism investments, with sound financials and fair Return on Equity to investors, ongoing maintenance and improvements, adapting to client needs without losing your identify, differentiated products, etc
• etc

Not in any way a comprehensive list, but maybe enough to start a discussion. 

We share an article by Filipa Fernandes who has published an thesis on this mater and now shares her opinion about a possible management model for the walks in Madeira.

We believe this debate should be held between all stakeholders, from the walkers through to the guides, travel agencies, the water company, the private land owners and of course the local government.

Your thoughts and opinions are welcome.

Turismo de Portugal published on 17 April 2014 some statistical data regarding the first two months of tourism accommodation in Madeira.

Driving the 15,7% accumulated total revenue growth during January and February 2014 is the increased hotel occupation as well as the slightly better ARR which are being achieved by hotels.

UK and Germany remain the largest markets to Madeira, with the UK showing the largest quantitative growth (17,2% growth generating 208,3 K bed nights) which Sweden shows the largest % growth of 71% to 37,8 K bed nights.

The strategy to maintain and retain this growth when competing destinations return to an acceptable security level is no doubt a key challenge Madeira as a destination must address as well as promotion and air flight capacity over the winter season.

Source of data: Turismo de Portugal

The Chamber of Economists - Madeira Delegation, led by the President of the Secretariat Eduardo Jesus out together, once again a fantastic event to generate discussion and debate about tourism in Madeira

In recognition of the event´s quality and relevance, not only is the event sponsored by the Portuguese Presidency, but also manages to attract an exceptional list of national and international speakers as well as the Secretary of Tourism, António Mesquita Nunes.

Presentations and videos can be accessed on-line from the "Ordem dos Economistas - Delgação Regional da Madeira" for this VIII conference as well as previous conferences and events.

Taking into consideration the message from consecutive governments that tourism is a strategic sector to the Portuguese economy, the initiatives which PwC Portugal have undertaken in this industry sector, PENT (National Strategic Plan for Tourism) and discussions with agents in the industry about the challenges and possible solutions which could be implemented in 2014 to reinforce the growth trajectory, this document is an analysis and vision, which PwC Portugal hopes will be useful to its readers.

Contact
César Gonçalves
Partner
+351 213 599 436

ACIF-CCIM (Funchal´s Chamber of Commerce has launched an international tender to develop a Strategic Document for Tourism in Madeira.
More information can be read on ACIF-CCIM website.

Vermicompostagem www.vermicompostagem.com has won the Entrepreneurial Prize from AJEM (Associação de Jovens Empresários Madeirenses), sponsored by BANIF bank with € 2,500.

Vermicompostagem, a project developed by Leanardo Abreu (AtlanticNet) and Andrew Zino (Zino Consultadoria) will compost organic food waste, greens and browns into high quality compost and vermicompost.

The composting will contribute to a reduction of waste sent to land fill sites and produce added value products.

Vermicompost not only substitutes synthetic fertilisers and increase yields but also acts as insect and disease suppressor, as plants grow stronger and soil structure is reinforced - source WormPro.

News clippings

• Empresa 'Vermicompostagem' vence Prémio Empreendedorismo da AJEM in DN Madeira 2013-07-11 
• AJEM desafia jovens a divulgar as dificuldades in DN Madeira 2013-07-12 

Some of Madeira´s businesses, which are viable enterprises, create and maintain a substantial number of local jobs are at risk of closing or declaring bankruptcy (some already have) mostly due to the lack of capacity to finance themselves through local and national banks.

The core business area which we would like to initiate is tourism, namely hotels which have an asset associated to them although we are also looking into agriculture.

Madeira, also as part of Portugal, is currently in the news also due to its financial burdens, but there still remain fantastic opportunities. Tourism is one of Madeira´s (and Portugal´s) opportunities to bounce out of the crisis as the reason why tourists visit Madeira are unchanged: fantastic welcoming people, great all year weather, great views, gardens, culture and gastronomy! 

Viable business opportunities which are stagnating due to the lack of access to finance are now available through direct negotiation and/or through the banks and the bankruptcy administrators at attractive prices.

Investment in tourism also maintains and generates jobs in the local economy which in turn generates local cashflow.

Agriculture is still highly subsidised. New agricultural explorations, through acquisition or renting of agricultural property, investors can receive up to 85% subsidies for the acquisition of equipment and infrastructure. Madeira today imports a variety of food which can be produced locally at a competitive rate,with the local government assisting with market analysis to identify products which are in highest demand.

There are opportunities to invest in these viable opportunities, either directly in existing companies as shareholders  or through a vehicle.

The vehicle (fund or holding company where investors participate in) will have its own board and management will be secured through "ZINO Consultadoria" (with selected independent and certified partners to assist with accounting, audit, tax and legal support as well as specialised industry specialist). The board will submit opportunities for approval to shareholders and manage participation in approved investments accordingly to maximise return to investors.

The vehicle will also maximise the remaining tax benefits, both for the vehicle itself as for its (overseas) investors in Portugal through Madeira´s International Business Centre.

We are calling on investors, including Madeira´s diaspora to consider these opportunities in their homeland and let us know if you are interested through the contact form below, as well as if you can share you expert knowledge from your experience outside Madeira in your successful enterprises.

We will keep all contacts in strict confidence and keep all interested parties informed through e-mail.