Capelo - Economy

Economy

The economy in this region is primarily agriculture, with dairy-oriented pursuits by the local economy pre-dominating the local activities in the parish. Meanwhile, owing to the numerous natural monuments in the region (the aforementioned Capelinhos volcano and protected areas), the region regularly sees strong eco-tourism activities throughout the year, with rural tourism, pedestrian trails and other leisure activities dominating the areas of Capelo and Varadouro. The southern coast is considered the "spa region" of the island, dominated by an attractive bay and the black rock cliffs of Varadouro and Mouro volcanic plug. Discovered in 1889, the warm waters at Varadouro were considered, at the time, one of the best medicinal treatments in the country for the treatment of rheumatism and skin diseases; its hypersaline waters at a temperature of 35.5°C (96°F), attracted "beachgoers" who travelled to ocean-carved pools for refreshment during the Guilded Age, while partaking of the thermal waters of the spa.

Since this period the use of the thermal waters has been intermittent, during phases of proactive local governments, and around the late 20th century the buildings were in ruins. Plans to rejuvenate the area economically have concentrated on reconstructing the buildings, but in November 2007 these plans were suspended, in order to redevelop the site to include a Hotel-Spa facility. In 2009, along with INOVA, a new project to revitalize the thermal-spa potentiality of the Azores (called TERMAZ) projected a reconstruction of the Varadouro thermal spa buildings: a project that was stalled by 2011. Amid opposition declarations to indicate a timeline for the reconstruction of the spa, by 2011, the Regional indicated their intention to expropriate lands necessary to "re-qualify and reactivate" the Thermae of Varadouro (suggestinga that only 10% had not been acquired).