Portugal is in the midst of a tourism boom, with 2023 figures exceeding pre-pandemic levels by 7.7% at 32.5 million visitors. There was also a significant increase in international tourist spending, up 9.2% to €29.6 billion. The overall travel and tourism sector grew by 8.6%, reflecting the efforts of the Portuguese government since Covid-19 drew the industry to a halt. Local tourists also upped their spending in 2023, with rates nearly 5% higher than the year prior, delivering €17.2 billion.
The country is widely associated with tourism as one of its principal exports, and the latest global Economic Impact Report from the World Travel and Tourism Council predicts that this industry will see a surge of 24.3% this year compared to 2019. Visitor spending is set to increase to €30.7 billion from international tourists and €17.9 billion from domestic. Speculation is that the sector will account for 20% of the country’s GDP in 2024, raking in more than €54 billion.
In 2023, 85.1 million overnight stays were recorded across the country, and on a regional level, the only areas that didn’t see growth in this criteria were the Algarve at -1.5% and Setúbal at -0.9%. The biggest increase occurred in the West & Vale do Tejo region at +18.2%, the North jumped up 14%, and the Lisbon metropolitan region tallied +11.8%.
The largest share of international tourists to Portugal comes from its neighbour Spain, posting 25.2% in 2023 and a year on year growth rate of 16.7%. The United Kingdom followed behind with just under a 13% margin at 12.6%, but also with a significant annual growth rate of 14%.
Employment has been a key economic beneficiary from the tourism surge, as 1.11 million people were supported and 91,000 jobs were created on top of the last employment peak in 2019. This year, employment is predicted to rise again, creating 126,000 new jobs and totalling 1.14 million jobs overall in the travel and tourism market.
“Tourism in Portugal is a pillar of the country’s economy, driving growth and contributing 1.1 million jobs. The Government’s efforts to encourage tourism have played an essential role in attracting more visitors to the country, leading to unprecedented growth and opportunities. The permanent flow of tourists from all over the world has resulted in significant economic contributions and Portugal is a top tourist destination, and the future of the sector looks exceptionally promising,” noted Julia Simpson, President and CEO of the World Travel and Tourism Council (WTTC).
So far in 2024, research from Caixa Bank states that Q1 tourism figures are matching expected growth, with an increase of 5%. By Q2, the number of flights at domestic airports exceeded 2023 results. Despite concerns that numbers could be stunted due to some airport capacities nearing their limits and many hesitant travellers from countries demographically closer to the Ukraine conflict, figures are still increasing and the most popular time of the year (July and August) is yet to end.
