Press release - Communication

Secretaria Regional do Turismo, Mobilidade e Infraestruturas

The Regional Secretariat for Tourism, Mobility and Infrastructures, following reports in the media regarding the Ferraria Thermal Spa in São Miguel, wishes to clarify the following:

1. The concession for the operation of the Ferraria Thermal Spa building to make the indoor swimming pool, sauna and massage facilities available to the public, as well as restaurant and bar services, was formally awarded to the company Palco Natural, Lda. on May 20, 2020.

2. Over the last few years, as part of the monitoring carried out by the Regional Directorate for Tourism and the Regional Tourism Inspectorate, several instances of breach of contract were detected, duly reported and acknowledged by the concessionaire.

3.  The aforementioned breaches include a failure to invest in the refurbishment of the building; a failure to classify the natural resource (water); a failure to provide the facility with a Medical Team and Clinical Management, in accordance with the Specifications; and the existence of a debt to the Region regarding operating costs and the contractually agreed financial compensation. In view of these breaches and following a final meeting held in the fourth quarter of 2025, the Regional Secretariat for Tourism, Mobility and Infrastructures, through the Regional Directorate for Tourism, initiated proceedings to declare the contract null and void and proceed with its termination.

4. In consideration of the facts described above and the express wishes of the concessionaire, the Regional Secretariat for Tourism, Mobility and Infrastructures acknowledges the position of the company Palco Natural, Lda., which has been publicly stated but not yet officially communicated to this Regional Government department. In this regard, an amicable resolution is anticipated, as expressed by the concessionaire. Should it prove necessary, the case is already prepared to proceed with its legal course.

5. As soon as it is administratively feasible and all the necessary procedures have been completed, the Regional Secretariat for Tourism, Mobility and Infrastructures will launch a new tender process for the concession of the Ferraria Thermal Spa building, with a view to ensuring the proper development of a unique resource of high strategic value for wellness tourism in the Azores.

The Government of the Azores reiterates its unwavering commitment to promoting the quality of tourism and all areas of the sector, as a fundamental goal for the sustainable development, attractiveness and competitiveness of the destination, without ever compromising on certain fundamental standards and requirements.