Economic Effects of Second Homes: a Case Study in Portugal

Abstract

The second home phenomenon in Portugal has been studied from the point of view of changing landscapes and lifestyle, but its economic effects have not been empirically established. Research findings presented in this paper are a contribution in this direction. An indepth regional case study in central Portugal confirmed the findings from the literature that economic effects are conditioned by specific socio-geographical contexts, while the frequency and length of owners/users' stay are also relevant. This was evidenced through a survey of morphological and functional features of second homes and their owners' origins, motivations, socioeconomic status, frequency and length of stay, local investments and expenditures. The overall conclusion is that, though related to the frequency and duration of stay and dependent on changes in the consumption patterns, the beneficial economic effects of second home expansion generally outweigh some negative ones for the local economy and government accounts.