Portugal’s tourism sector has had a record-breaking first half of 2024, with foreign visitor numbers up by 7.5% between January and June, according to national figures. That success builds on 2023’s progress, which saw visitor numbers up on pre-Covid benchmarks by 7.7% and overall growth in the travel and tourism sector up by 8.6%.
Tourism is a significant part of the Portuguese economy, and estimates by the World Travel and Tourism Council (WTTC) suggest the industry will grow from €43.7 billion (16.5% of GDP) in 2023, to contribute over €54 billion to the country’s GDP in 2024, representing a fifth of the nation’s wealth generation.
The latest data makes those predictions look entirely possible.
On track to beat 2023’s figures
June alone broke a monthly record by 6.9%, with nearly 2 million visitors entering the country. Passenger throughput at Portuguese airports in June rose 5.6% to 6.7 million compared with the previous year.
In addition, over 8.8 million hotel stays by foreign guests occurred during the two quarters of 2024, according to the National Statistics Institute (INE) – putting the country at 63% of 2023’s total already with half the year left to go, and that’s without taking into account domestic guests.
Another interesting development has seen the UK take over from the Spanish as Portugal’s largest source market for tourists, with more than a million Brits descending on Portuguese soil so far this year. In fact, Spain has been pushed into third place, behind the USA, which has sent more than a million visitors as well.
Growth versus overtourism
While Portugal’s economic dependence on travel and tourism is second only to Iceland’s in Europe, the influx of tourists is not without its problems. Like popular destinations all over the world, Portugal is facing increasing resistance from locals in areas overrun by tourist traffic and footfall. The Graça neighbourhood of Lisbon is so overwhelmed by tuk-tuks serving tourists, that some residents say they cannot leave their houses.
What’s more the prevalence of short term rentals is pricing locals out of housing and changing the character of some districts, where signs complain of gentrification. And it’s not just the capital. The nearby town of Sintra is “in danger” according to its own activist group, which is challenging authorities to put local needs, rather than those of tourists, first.
It is the government, according to the WTTC whose “efforts to encourage tourism have played an essential role in attracting more visitors to the country” and it is the government that must continue to seek balance between such “unprecedented growth and opportunities” and ensure a country that is liveable for everyone.
