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Debate Intensifies Over Local Accommodation Regulation in Funchal

Madeira GuideMadeira Guide
January 9, 2026
3 min read

The local government in Funchal faces scrutiny over its handling of local accommodation regulations as the suspension on new licenses approaches its end.

In a recent development, the local government of Funchal is under pressure from various political parties regarding the regulation of local accommodations. The debate centers around a temporary suspension on new licenses that is set to expire in March, leaving the future of many local businesses uncertain.

Rui Caetano, a councilor from the Socialist Party, has questioned the executive body of the Funchal City Council, dominated by the PSD/CDS coalition, about their plans for revising the existing local accommodation regulations. The suspension, initially put in place due to controversies surrounding the licensing of accommodations in cooperative housing buildings, was intended to last no more than six months.

Meanwhile, council members from the CHEGA party have also voiced their concerns. They have formally requested a written and detailed explanation of the municipality's strategy and intentions regarding local accommodations. According to them, the approaching deadline in March makes it imperative for the municipality to clarify its stance and future actions.

Local accommodation, or 'Alojamento Local' as referred to in Portuguese, is a significant part of Madeira's tourism infrastructure. It provides tourists with a variety of lodging options, ranging from small guesthouses to larger apartment complexes. The regulation of this sector is crucial for balancing the needs of local residents with the economic benefits of tourism.

As the deadline nears, the pressure mounts on the local government to provide clear guidelines and ensure that the regulatory framework supports both the community's interests and the island's tourism industry.

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Madeira Guide

Madeira Guide

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