Housing shortage for diving and hospitality workers squeezes Santa Maria in high season

A tourism boom that doesn't come with housing

The boom in diving and beach tourism is driving up seasonal staff hiring.

Rooms competing with tourist accommodation

Monthly rents for workers have risen more than 25% over recent summers.

Businesses improvising housing solutions

Dive centres are renting whole houses to accommodate several employees at once.

A bottleneck for tourism growth

The housing shortage could limit the growth of nature and diving tourism.

Praia Formosa and Almagreira, the epicentre of high season

The combination of sandy beaches along the coast and waters well suited to diving has turned Praia Formosa and Almagreira into the busiest hubs of tourist activity in Santa Maria during the summer months. This concentration of diving, hospitality and holiday rental businesses drives seasonal hiring well beyond what the local housing supply can absorb.

Job contracts that don't include accommodation

Many of the staff hired for the season come from other islands or the mainland and rely on private rentals to get settled, competing directly with short-stay tourist accommodation, which is far more profitable for owners. This competition partly explains why monthly rents available to workers have risen more than 25% over recent summers, according to industry sources.

A tension repeated on other tourist islands

The conflict between residential housing and seasonal tourist accommodation is not unique to Santa Maria: São Miguel and Faial face similar tensions in their busiest areas. The difference in Santa Maria is the island's small scale, which means any imbalance between supply and demand is felt immediately in the day-to-day running of local businesses.

Business owners call for a response before next season

Associations of dive centres and hospitality businesses have told the town council of the need to make land or buildings available for seasonal worker housing, similar to formulas tried in other tourist areas of the country. They warn that without a solution before next summer, some businesses could be forced to scale back operations for lack of available staff.