Advancing Circular Economy in Algarve’s Tourism: Key Takeaways from Recent Funding Initiatives

The Algarve is at a pivotal moment in its sustainability journey, facing growing pressure on natural resources and an urgent need to transition towards a circular economy. On February 26th, a funding clarification session was held at AHETA’s headquarters, shedding light on how the region is tackling these challenges. From innovative water management strategies to pioneering desalination projects, the Algarve is actively pursuing solutions to optimize resource efficiency in tourism.

This article outlines key insights from the session, including funding opportunities, sustainability trends, and how businesses in the tourism sector can leverage support to drive meaningful change.

Headquarters of AHETA - Associação dos Hotéis e Empreendimentos Turísticos do Algarve

🌱 The Goal: Promoting Efficient Use of Natural Resources

The primary objective of the funding schemes is to encourage more sustainable resource management, particularly in water conservation and energy efficiency. The Algarve has experienced a 34% reduction in precipitation over the past 12 years, and aquifers are at their lowest recorded capacity. Hotels and local lodgings consume nearly 10% of the region’s total water consumption, making this sector a priority for resource optimization.

To address these challenges, several support lines are available to fund projects that promote circular economy principles, including:

✔ Wastewater treatment and reuse (for green spaces and golf courses)

✔ Rainwater recovery and treatment

✔ Green space management (conversion, autochthonous species, and nature-inspired solutions)

✔ Swimming pool backwash water reuse

💧 Water Efficiency in Tourism: Pioneering Solutions in the Algarve

Water scarcity remains a major challenge, driving innovative solutions in tourism and hospitality. Here are some key developments:

⛳ Treated Wastewater for Golf Courses

Golf courses represent 7% of total water consumption in the Algarve. A €23 million investment is funding the construction of wastewater treatment plants to supply treated wastewater for irrigation. The goal is to have 20 golf courses operating with treated wastewater by 2026.

Salgados Golf Course - pioneer in using treated wastewater for irrigation

🌊 Desalination as a New Water Source

Despite ongoing discussions about environmental impact, desalination plants are emerging as a viable solution. Hotel Alísios, Marina de Albufeira, and Vila Galé Group are leading the way in desalination, with Vila Galé planning to supply water to seven establishments from a single desalination plant.

🌿 Conversion of Green Spaces

Efforts to optimize irrigation are showing impressive results through the use of autochthonous plant species and nature-inspired solutions, achieving significant water savings:

• 50% reduction in water consumption at Quinta do Lago
• 69% reduction in water usage at Grupo Minor

💦 The Expansion of the SaveWater Seal

Originally designed for hotels, the SaveWater seal has now been extended to local lodging, achieving greater-than-expected water savings. This initiative attracts eco-conscious guests, who tend to be more demanding regarding sustainability commitments.

💰 Funding Opportunities for Sustainable Tourism in the Algarve

The Algarve’s transition to a circular economy is supported by various financial incentives. Below is a simplified breakdown of the available funding programs:

SITCE, meaning the Incentive System for Climate and Energy Transition - Sistema de Incentivos à Transição Climática e Energética (SITCE), is availabe from the CCDR Algarve, with a Decarbonization and Energy Eficiency line to be launched soon.

Although the current open line is directed to circular economy projects, it focuses primarily on water reuse technology:

• pool backwash water treatment and reuse
• wastewater recovery and treatment
• rainwater recovery and treatment
• wastewater treatment for watering green spaces
• green space efficient management

Other funding schemes options are the support lines from Turismo de Portugal, with more details available in their official page. More information on the +Sustainable Tourism Line can be discovered in on our blog.

🌍 Why These Investments Matter: The Urgency of Circular Economy in the Algarve

The Algarve has lost 40% of its biodiversity in water-related habitats over the past 50 years. Without urgent action, environmental degradation could threaten the region’s long-term viability as a top tourist destination.

By implementing water reuse systems, rainwater harvesting, and optimizing green space management, tourism establishments can cut irrigation-related water consumption by up to 50%. These solutions not only conserve resources but also reduce climate impact and enhance regional resilience against future droughts.

🚀 How Noytrall Can Support This Transition

To maximize the impact of funding opportunities, hospitality businesses need efficient monitoring systems to track and optimize resource consumption.

With Noytrall, tourism businesses can:

✅ Monitor water and energy usage in real-time

✅ Optimize green space management with data-driven irrigation strategies

✅ Track sustainability metrics to meet funding scheme requirements

✅ Automate reporting to comply with regulatory frameworks

By integrating smart sustainability solutions, tourism businesses can future-proof their operations, improve cost efficiency, and attract eco-conscious travelers.

💡 Discover how Noytrall can help your business reduce resource consumption and secure sustainability funding.
👉 Learn more here

🔑 Key Takeaways

✔ The Algarve faces critical water scarcity, driving the need for circular economy solutions in tourism.

✔ Funding programs are available to support businesses implementing water efficiency and sustainability initiatives.

✔ Noytrall’s smart monitoring solutions help hospitality businesses optimize resource usage and secure funding.

Now is the time to take action!
Start your transition to a more sustainable and cost-efficient business today. 🚀