August Tourism in Portugal Sees Dip in Foreign Visitors as Locals Flock to Algarve

In August, Portugal experienced a slight decline in foreign tourists, with a 0.3% drop in international guests, totaling 2.26 million. However, this was offset by a 2.7% increase in resident tourists, reaching 1.5 million. Overall, guest numbers grew by 0.9% to 3.8 million.

Overnight stays also saw a modest rise of 1.1%, hitting 10.6 million. Foreign overnight stays decreased by 0.5% to 6.8 million, while domestic stays surged by 4.1% to 3.8 million.

Market Trends

• The British market remained the leader in overnight stays but saw a slight decline of 1.2% to 1.16 million.
• The Spanish market, the second largest, fell by 9.1%.
• The French market dropped by 4.6%.
• In contrast, Germany grew by 1.7%, and the United States surged by 9.8%.

Regional Highlights

Algarve remained the top choice for resident tourists, with 279,300 guests—a 4% increase from August 2024. However, preferences shifted within the region:

• Albufeira saw a 1.4% decline in resident overnight stays.
• Portimão experienced an 18.9% surge in resident stays.
• Other areas like Loulé, Lagoa, and Lagos also saw increases in Portuguese overnight stays.

Despite a slight rise in foreign guests, Albufeira's total overnight stays fell by 0.1%. The Algarve's growth was driven by national tourists, with a 3.4% increase in overnight stays to 1.17 million, while foreign stays dropped by 1.1% to 2 million.

Total revenues for Algarve's tourism establishments reached 366.7 million euros, up 6% from August 2024, accounting for 36% of the sector's total, which surpassed one billion euros.

Impact of Wildfires

Central Portugal was the only region to record a decline in overnight stays compared to August 2024, with a 3% drop to 751,600 stays. This reduction is likely linked to the wildfires that affected the area during that period:

• Non-resident stays fell by 5.9% to 251,700.
• Resident stays decreased by 1.4% to 499,800.

Other Regions

• Madeira had the highest growth, with a 3.7% increase in overnight stays to one million, driven by a 39.6% surge in resident tourists, which compensated for a 3.3% drop in foreign stays.
• Greater Lisbon recorded the second-highest number of overnight stays after the Algarve, rising 1.8% to 2.06 million, with revenues of 200.6 million euros (up 5%).
• The municipality of Lisbon concentrated 15.2% of all overnight stays, reaching 1.6 million (a 2.8% increase from August 2024) and accounted for 20.5% of non-resident overnight stays.