By
Bloomberg
Published
November 22, 2024
When French designer Christian Louboutin bought a secluded house in Melides, Portugal, it was a quiet coastal area. Less than two decades later, what was once a well-kept secret has been transformed into a playground for the rich and famous.
An explosion of golf and resort developments along the coast has raised local concerns about the impact on the environment and that the area, about 90 minutes south of Lisbon, is a victim of overtourism. Just outside Louboutin, water levels in a lagoon have dropped as climate change, agriculture and increased visitor numbers take their toll.
“Tourists come here because of the beauty of this place,” said Louboutin, owner of a small hotel in the town of Melides, in a telephone interview from Paris. “So we have to keep it that way.”
These concerns are part of an emerging trend in some parts of Europe, as the post-Covid travel rebound helps fuel a backlash against commercialization and overpopulation. While Melides and its surrounding areas benefit from money and jobs, rapid change has also increased inequality and depleted resources.
Louboutin, famous for his red-soled shoes, is not opposed to high-end tourism and is part of a local group that works with developers to manage the environment more responsibly. Its goal is to protect the area around the city of 1,500 inhabitants located along one of the last almost pristine stretches of Portugal's Atlantic coast. But others are much more categorical in their opposition, denouncing the damage to nature and the character of the local community.
Some of the tensions center on CostaTerra, a luxury residential community owned by American real estate magnate Mike Meldman, best known for founding the Casamigos tequila company with George Clooney.
The members-only resort, which plays host to businesspeople, celebrities and royalty, is building nearly 150 multimillion-dollar properties next to a Tom Fazio-designed golf course, as well as dozens of other villas and cottages.
Meldman says his project seeks to achieve a low environmental impact. It will replant trees, use grass that will use less water and have a desalination plant to reduce dependence on local fresh water.
“Natural sustainability is a huge topic,” Meldman said in an interview earlier this year. “There are a lot of forests, farmlands and open spaces that are not going to be developed. That's why we feel that the character of the region will remain.”
Even with environmental measures, there is still the question of whether the region will be able to cope with everything. Portuguese property company Vanguard Properties is investing more than €1 billion in development in nearby Comporta, including two golf courses. Meldman's Discovery Land recently purchased one of the oldest and most affordable seaside campsites in the region, near CostaTerra.
Vanguard said in a statement that sustainability is “key” to its investments in the region, citing its use of wastewater from treatment plants for irrigation, as well as solar panels and energy storage.
Just to the north, Paula Amorim, one of Portugal's richest women, runs the JNcQUOI beach club near the town of Comporta. It is near a complex that Spanish billionaire Sandra Ortega, whose father founded Inditex SA, which owns Zara, is building along the finger-shaped Troia peninsula.
Nearby, locals complain that property prices have soared as foreigners buy land to build hotels or convert old houses into second homes or short-term rentals.
“The prices are absurd,” said Margarida Gonçalves, who works at a cafe in nearby Grandola. “There is hardly any affordable housing on the market. The few units available are sold at the same price as in Lisbon.”
The shift toward luxury has been so striking that even the wealthiest residents have noticed. Guy Villax, former chief executive of Portuguese pharmaceutical company Hovione, says locals are being priced out and traditional restaurants are losing their character.
“Prices have doubled, grilled fish with tomato and onion salad has been replaced by the same international dish as everywhere else,” he said. “Simple, delicious and authentic is a thing of the past.”
Some locals focus on financial benefits in what was once one of Portugal's poorest regions. Antonio Mendes, president of Grandola's town council, 81, says that when he was first elected in the 1970s, the town council had little money and people left in search of work. It is now generating millions of dollars from property taxes and other revenue.
“Sometimes I hear people say that tourism is harming the region,” Mendes said. “But I see people with jobs that earn above-average wages.”
Another growing concern is that new multimillion-dollar resorts will further deplete water resources in a region where many still rely on agriculture to make ends meet. This is part of the campaign by Intertidal Melides, a local group that preserves the local environment and encourages “good environmental practices” by companies.
It was co-founded by Louboutin and Noemi Marone Cinzano, an Italian whose family once owned the famous vermouth brand and who has a house in the area.
The municipality is trying to respond. He wants to ban development along the coast and reduce the number of tourist sites already approved by 40%. Mendes said many developers have agreed to scale back projects to make them more sustainable.
Louboutin believes it is possible to maintain the beauty of Melides while attracting high-end tourists.
“Authenticity moves people and we need to keep it that way,” he said. “Don't expect Melides to become like St. Tropez. “It's not going to happen.”
