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Municipality wants to keep rent reduction for commercial tenants with activity related to tourism

Municipality wants to keep rent reduction for commercial tenants with activity related to tourism
01 Apr 2021

The proposal to reduce by 100% the leases of contract holders destined for warehouses and by 50% non-housing tenants, whose activity is directly or indirectly related to tourism will be voted during the April 5th Porto City Council executive meeting. The measure corresponds to a financial effort by the municipality of more than 281 thousand euros.

Considering that the pandemic scenario did not change, on the contrary, it worsened at the beginning of this year, Rui Moreira's Executive presents a new proposal to maintain the rent reduction support for commercial tenants that depend, to a greater or lesser degree, on the tourism sector.

The measure, which had already been approved at the end of September last year, and which was also applied to municipal companies, as informed by the Mayor of Porto. The proposal will take effect from April 1st to September 30th, totaling the overall amount of 281,633.25 euros.

Rui Moreira again suggests "determining as a strategic guidance” to the boards of directors of the municipal companies Ágora and Domus Social, which in their heritage portfolio have warehouses, stores or spaces leased to traders to adopt similar measures.

In the proposal, the mayor says that tourism and related activities are being most affected by the pandemic, "with the prospect that the tourist revenues that entered the country have shrunk by more than 10 billion euros in 2020, compared to 2019".

"It is in the interest of the municipality, in order to pursue the public interest, to support the viability of commercial establishments installed in municipal properties, in particular establishments whose economic activity is directly or indirectly dependent on the tourism sector”, can be read in the document that is voted this Monday.

In detail, the Municipal Executive identifies 103 entities to benefit from the support of a 50% reduction in the value of rents, which have established non-residential lease contracts for municipal properties with the municipality.

As for the 100% exemption of rents to non-housing leaseholders, whose object of the contract is destined for storage, the municipality justifies full support "because it is considered that these spaces serve to support activities related to the sector”. In this context, 18 entities will be supported.

At the same City Council meeting, the second incentive program for commercial activity will also be debated, to encourage consumption in street, local and traditional commerce in the city. In this regard, the executive of Rui Moreira estimates to invest 500 thousand euros.