Portugal’s tourism industry soared last year, bolstered by its reputation for affordability. Let’s explore the recent data and uncover why this year is also set to be a success.
Discover how property owners can make the most of Portugal’s tourism boom.
The figures are in: 2023 was a banner year, confirming Portugal’s status as a premier vacation spot. Previously, 2019 held the record for tourism, both in terms of visitor numbers and income. Now, newly released statistics from the Portuguese Government’s Tourism Board reveal a new high, providing encouraging news for property owners aiming to maximize rental income from travelers.
“The past year was overwhelmingly positive for the nation’s tourism sector, benefiting the entire country,” stated Nuno Fazenda, Portugal’s Secretary of State for Tourism, Trade and Services, earlier this year. “It marked a record achievement, the best year ever recorded for tourism in Portugal.” Mr. Fazenda foresees continued expansion in 2024, a sentiment bolstered by current data. The first quarter of the year shows a 7.1% increase in overnight stays compared to the previous year.
Across Portugal, encompassing Madeira and the Azores, tourist accommodations hosted 30 million guests in 2023, reflecting a rise of 13.3% year-on-year and 10.7% from 2019. This generated roughly €25 billion in revenue, a significant 37% increase compared to 2019 and 18.5% compared to 2022. Delving further into the data, an impressive 77.2 million overnight stays were logged in 2023, exceeding the previous year by 10.7% and 2019 by 10%. It’s important to note that these statistics exclude campsites and youth hostels.
The UK Leads International Visitors
Of the total, 53.8 million overnight stays were thanks to over 18 million international tourists visiting Portugal in 2023, representing 69.7% of the total tourism market. UK residents topped the list (9.9 million stays, 18.4%). Germany (6.1 million stays, 11.3%), Spain (5.5 million stays, 10.1%), France (4.6 million stays, 8.6%) and North America (4.6 million stays, 8.6%) rounded out the rest of the top five. The most notable increases were from North American and Canadian visitors, with jumps of 32.9% and 56.9% respectively.
Regionally, the Algarve remains the most popular destination, which isn’t surprising. This famed coastal stretch, which only totals around 100 miles of the country’s 1,114 miles of coastline, accounted for 26.4% (20.4 million) of total overnight stays in the country, and 77% of these came from international visitors. The area around Lisbon took second place at 24.3% (18.8 million), followed by the Northern region at 17.2% (13.3 million) and Madeira at 12% (9.2 million). All other regions posted less than 5 million overnight stays.
Unbeatable Value
Lisbon is a highly rated tourist destination. Its also surprisingly affordable.
Portugal draws visitors not only with its attractive beaches, friendly locals, active lifestyle, and abundant sports and leisure options, but also because it expertly caters to different budgets. From elegant golf and leisure communities with exclusive amenities, such as Val do Lobo, Vilamoura and Quinta do Lago to the relaxed atmosphere of the Eastern Algarve’s local villages, an appealing lifestyle within reach regardless of your budget awaits.
This is a key reason why the Algarve stands out as the highest-ranked European destination in the latest Post Office Worldwide Holiday Costs Barometer (2024), which measures affordability across international destinations. Only four destinations worldwide ranked above the Algarve, with the area overtaking Turkey (Marmaris) and Bulgaria (Sunny Beach), which placed seventh and ninth respectively.
Moreover, the Post Office’s recent European city survey (2023) recognized Lisbon as the best-value destination with only a 2% price increase from the previous year. To further underscore this, Lisbon was recognized as the eighth-best European city for investment potential in the 2024 edition of PWC’s annual report, ‘Emerging Trends in Real Estate – Europe’. Consequently, the city surpassed Barcelona, Frankfurt, Hamburg, Brussels, Rome, and Dublin.
Spurring Investment
Thanks to the booming tourism sector, the Algarve is primed for a number of new developments, plus resort upgrades. One of the most noteworthy projects is the new Nova Marina development in Vilamoura, which will add 68 additional berths to the already-large marina. Scheduled for completion this year, Nova Marina is one facet of a €500 million investment into Vilamoura by its new owner, Arrow Global (owner of Vilamoura World), which will also include a host of new housing.
Close to Vilamoura, Val do Lobo revealed a re-brand including major investment across their services, amenities, and housing options, through the new Vale Real developments. In short, there is plenty to be enthusiastic about.
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