Thick plumes of smoke rising above Funchal, the capital of Madeira, as wildfires ravaged the Portuguese holiday island this week.

Three people have been killed, two seriously hurt and about a thousand evacuated from homes and hotels.

The three victims died in their homes close to Funchal's historical centre, while the five-star Choupana Hills Resort overlooking the town was destroyed, as were several houses. Other buildings had been damaged by flames, officials said yesterday.

"Last night, the fire was a hundred metres away from the hotel and you could hear gas bottles exploding," said Mr Ricardo Correia, manager of the Castanheiro hotel.

Evacuees were sheltering at military installations.