Licensing for Tourism Activities
Executive Summary
The licensing process depends on the nature of the activity involved.
Tourist Developments
For licensing purposes, tourist development projects are classified as follows:
• Hotels;
• Tourist complexes;
• Tourist apartments;
• Tourist resorts;
• Tourism in country estates and manor houses (Turismo de Habitação);
• Rural tourism;
• Camping and caravanning sites;
• Tourism for nature lovers.
These activities are licensed by the local Municipal council and the procedure is governed by the legal regime for installing, operating and running tourist developments, approved by DL 39/2008, of 7 March. In addition it is also subject to the legal regime of urban development and building whenever it entails the urban operations envisaged therein. Under this legal regime, the licensing procedure involves the following steps:
• Request for prior information: the developer asks the local Municipal council for prior consultation on the possibilities of setting up a tourist development and any relevant urban planning restrictions This request is optional.
The Municipal council will consult simultaneously the Turismo de Portugal, I.P. (The National Tourism Authority) [former DGT – Direcção-Geral do Turismo (Directorate-General for Tourism)] (1) and, if required by current legislation, the CCDR - Comissão de Coordenação e Desenvolvimento Regional (Regional Development Coordination Committee), which will issue binding opinions within 20 days [Turismo de Portugal, I.P. (The National Tourism Authority)] or between 30 and 65 days (CCDR). The Municipal council must reach a decision within 20 or 30 days after receiving the aforementioned opinions, or once the deadline for issuing them has passed, with the latter time limit applying to applications not covered by the detailed plan or land parcelling operation.
(1) The Turismo de Portugal, I.P. (The National Tourism Authority) has inherited the powers of the former DGT – Direcção-Geral do Turismo (Directorate-General for Tourism), apart from normative power, which have been entrusted to the ASAE – Autoridade de Segurança Alimentar e Económica (Food and Economics’ Safety Authority). The powers assigned to the above mentioned authorities, in the Autonomous Region of Madeira, are assigned to the Direcção Regional do Turismo (Tourism Regional Office).
• The licensing or prior communication of urban development projects: the developer applies to the Municipal council for approval of the architectural and safety plans of the proposed tourism projects Municipal council approval of the license application and acknowledgment of the prior communication require an opinion from the Turismo de Portugal, I.P. (The National Tourism Authority) [former DGT – Direcção-Geral do Turismo (Directorate-General for Tourism] (1) and the CCDR - Comissão de Coordenação e Desenvolvimento Regional (Regional Development Coordination Committee), in cases where this body has not been consulted when the request for prior information was first lodged and only in cases where this is a specific requirement. The opinion of the Turismo de Portugal, I.P. (The National Tourism Authority) is specifically meant to confirm the suitability of the planned tourist development for the use and nature intended, and it implies the appraisal of the design of the development. The opinion is binding if it rejects the scheme, and it must then suggest and justify the changes that should be made to the design. Along with the opinion, the maximum capacity of the development and its classification in accordance with the project submitted must be specified. If the Turismo de Portugal, I.P. (The National Tourism Authority) fails to issue an opinion within 20 days of having the file at its disposal, agreement with the project as formulated is presumed.
Licenses or permits for urban development projects are issued by the Municipal council after approval of the specialised areas of the project. Any specialised engineering projects should be submitted within six months of the architectural project being approved. For works which, pursuant to the legal regime governing building and urban development, are subject to the prior communication procedure, the interested party can begin the works, having first paid the charges due under self-assessment, if the 60 day period has passed since the communication, duly prepared with all the legally required items, was delivered.
Note: Investors are reminded that tourism projects must comply with the regulations for making access to buildings easier for the handicapped.
• Permit or communication for tourism purposes: After completion of the works, the developer should ask the Municipal council for a utilisation permit for tourist purposes, which confirms that the completed project conforms with the approved design and the licensing conditions or prior communication. Once the request has been submitted, containing the statement of liability subscribed by the designers of the buildings, fire safety and specialised engineering schemes, the Municipal council has 20 days to decide on the authorisation and issue the respective permit, except when by decision of the mayor to issue it within 10 days, there is to be an inspection. This will be determined if the application does not include the aforementioned statement of liability, or when there are clear signs that the project does not conform to the agreed design and conditions. In this case, the inspection takes place within 15 days of the mayor’s decision. If the time limits established for the permit to be issued or the inspection to take place, if there is one, are not met by the relevant authorities, the interested party can inform the Municipal council and the Turismo de Portugal, I.P. (The National Tourism Authority) that it will open the development to the public, regardless of the inspection and permit, with the developer, the works inspection manager and the designers of the buildings, fire safety and engineering specialities being answerable for the conformity of the development with the approved project and the applicable laws and regulations. Within 30 days of receiving the communication, the mayor must issue the permit authorising use for tourist purposes. The applicant must be notified within eight days. After this period, the party interested in obtaining the utilisation permit for tourism purposes may seek a legal notice for carrying out a legally proper act as established in Article 112 of the legal regime for urban development and building.
• Classification inspection of tourist development: within 2 months of the development being licensed for tourism, or of it opening, the mayor (in the case of camp sites, turismo de habitação, and rural tourism development projects) or the Turismo de Portugal, I.P. (The National Tourism Authority) (for other tourist developments) decide on a classification inspection of the said development. Once the inspection has been carried out, the Turismo de Portugal, I.P. (The National Tourism Authority) or the mayor, depending on the circumstances, establishes the classification and assigns the identification plaque. This must be affixed outside, next to the main entrance. The classification is reviewed every four years, on request submitted by the interested party 6 months before the end of the period.
As particular issues apply in some situations, it is useful to get in touch with the Turismo de Portugal, I.P. (The National Tourism Authority). Among these situations are:
- works not requiring a municipal license, or subject to the prior communication system, the effect of which has been to alter the classification or maximum capacity of the development, or which may have jeopardised the minimum requirements for their classification, are to be declared to Turismo de Portugal, I.P. (The National Tourism Authority), using the form available on the latter’s website, within 30 days of completion.
Restaurants, Bars and Cafés
Applications to set up restaurants, bars and cafés are submitted to the local Municipal council for approval. Their installation and modification are governed by the regime established in Decree-Law 234/2007, of 19 June (and by the relevant development regulatory decree), without prejudice to the legal regime for urban development and building, whenever this is applicable. Under the licensing process, the mayor must ensure consultation with the following:
a) Autoridade Nacional de Protecção Civil (National Civil Defence Authority), with respect to fire safety measures (unfavourable opinion is binding);
b) DRE – Direcções Regionais do Ministério da Economia e Inovação (Regional offices of the Ministry of the Economy and Innovation) or the electrical installation inspection body to check the rules on electrical fixtures and fittings, for establishments whose premises are used to make bread, cakes, pastries and ice cream, or which sell food products, unless the planned electricity supply is less than 50 kVA;
c) Health authorities, to check compliance with public health and hygiene rules (unfavourable opinion is binding);
d) For restaurants and bars with dance floors, the Municipal council should consult the local civil governor to check aspects of safety and public order (unfavourable opinion is binding).
On completion of the works, the developer should apply to the mayor for the issue of the utilisation license or permit. If 30 days (license application) or 20 days (utilisation permit) elapse without it being issued, the interested party can inform the Municipal council of its decision to open to the public. Decree-Law no. 234/2007, of 19-06, introduced the so-called “prior declaration”. This means that in certain circumstances an establishment may open without having been inspected or the official document legitimizing the use of the property having been issued. Thus, when the time limits for carrying out the inspection or issuing the utilisation license or permit for the establishment to be used as a restaurant, bar or café are not met, it can open to the public, with the developer, the works technical manager, the designers of the special areas, and the designer of the fire safety system being answerable, attesting that the building construction conforms with the approved project and complies with the applicable laws and regulations, considering its intended use, and thereby safeguarding the public interest.
The specific requirements relating to the installation, operation and classification regime of restaurants, bars and cafés are set forth in Regulatory Decree no. 20/2008, of 27 November. According to this law, the adoption of a classification aimed at differentiating restaurants, bars and cafés is voluntary and the sector’s associations and agents are exclusively responsible for such. The establishments in operation that, as at 27 December 2008 (the date on which Regulatory Decree 20/2008 came into force), were classified as traditional restaurants or luxury establishments, keep their classification for the period of five years, following which they cannot display or advertise that classification awarded under the previous legislation.
The regime established by decree-law 39/2008 of the 7th March, was adapted to the Autonomous Region of Madeira, by the Regional Legislative Decree no 12/2009/M.
According to this regional decree, the powers assigned to the Turismo de Portugal, I.P. (The National Tourism Authority), and its president and to the Autoridade de Segurança Alimentar e Económica (Food and Economics’ Safety Authority) in the Autonomous Region of Madeira the powers of the Direcção-Geral das Actividades Económicas (DGAE) (Directorate-General for Economic Activities) are executed by the Direcção Regional do Comércio, Indústria e Energia (DRCIE) (Regional Directorate of Trade, Industry and Energy), the powers of the Autoridade de Segurança Alimentar e Económica (ASAE) Food and Economics’ Safety Authority) are executed by the Inspecção Regional das Actividades Económicas (IRAE) (Economic Activities Regional Inspectorate) ( IRAE) and the powers of the Comissão de Aplicação de Coimas em Matéria Económica e de Publicidade (Economic and Advertising Penalties Application Commission) are executed by the Comissão Regional de Aplicação de Coimas em Matéria Económica (Economic and Advertising Penalties Application Regional Commission).
For licensing purposes, in the Autonomous Region of Madeira, tourist development projects are classified as follows:
Hotels;
Madeira country-houses;
Tourist complexes;
Tourist apartments;
Tourist resorts;
Tourism in country estates and manor houses (Turismo de Habitação);
Rural tourism;
Camping and caravanning sites;
Tourism for nature lovers;
Tourist Cottages.
Licensing process for tourist event organization and tourist-maritime activities
The licensing process for tourist event organizations and tourist-maritime activities are subject to a simplified regime conducted by a single desk, operated by Turismo de Portugal, I.P. (The National Tourism Authority).
The activities covered by this regime are, among others:
a) Tourist event organization - the organization and the sale of recreational, sporting or cultural events, in open air or in fixed installations, of interest to the region in which they occur. The authorised operators are allowed to conduct some additional activities, such as the organization of holiday camps and conferences.
b) Tourist-maritime activities - sea tours, boat rental with or without crew, taxi services by river or sea, fishing tourism. Companies wishing to provide exclusively such services should be registered as maritime-tourist operators at the Registo Nacional dos Agentes de Animação Turística – RNAAT (National Register of Tourist Events Organization Agents).
Whenever these activities are conducted in areas with classified or other natural values can be named as activities of nature tourism, and for that purpose should be recognized by the Instituto de Conservação da Natureza e da Biodiversidade, I. P. - ICNB, IP (Institute for Conservation of Nature and Biodiversity).
All the above mentioned activities can be developed by individual entrepreneurs and companies that must be registered at the Registo Nacional dos Agentes de Animação Turística – RNAAT (National Register of Tourist Events organization Agents), managed by Turismo de Portugal, I.P. (The National Tourism Authority). The operators must have a compulsory insurance.
Travel agents and owners and operators of tourist developments, among others, have the right to prosecute the activities of tourist event organisations, according with the law.
Registo Nacional dos Agentes de Animação Turística – RNAAT (National Register of Tourist Events organization Agents) registration fees are:
a) € 950.00 for micro-enterprises
b) € 1,500.00 for the remaining ones
c) € 245,00 maritime-tourist operators
Autoridade de Segurança Alimentar e Económica - ASAE (Food and Economics’ Safety Authority) and the Instituto de Conservação da Natureza e da Biodiversidade, I. P. - ICNB, IP (Institute for Conservation of Nature and Biodiversity) are entrusted with the powers to supervise the regime compliance.