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It also reduces the quantum of work for the hoist as a significant proportion of the yard space is out of action for the duration.Once glance at the satellite map tells you the reason behind this price. The boatyard is tiny. It's for hauling a boat out, doing some work and then launching it. It's not a storage yard, they haven't got room for that. Which is why they quoted your friends the daily rate for 273 consecutive days, which of course does add up a bit. If you keep the boat in the water, it's a lot cheaper, because there's much more room.
This is hardly unusual, most small yards attached to bigger marinas do something like that. The one in Albufeira had very good pricing for quick haulouts (couple weeks free with winter berthing even), but if you stayed out for more than a few weeks, the prices would grow exponentially, to reflect the fact that they want you to get that boat out of the way so others can get worked on.
Tell your friends to look for a big storage yard and do a basic check of the landscape before bothering to ask yards like that for annual storage