Soaring Prices Drive Portuguese Tourists Away from the Algarve

The Algarve, Portugal's most sought-after beach destination, is increasingly becoming a holiday spot for the upper-middle class, as rising prices push local tourists to seek more affordable alternatives abroad.

Photo: Luís Forra/Lusa

Once a favorite among Portuguese families, the region is witnessing a shift in its visitor demographics. High accommodation and living costs are making it difficult for the average Portuguese tourist to afford vacations in the Algarve, leading many to explore foreign destinations that offer better value for money.

This trend highlights the growing economic divide in tourism, where only those with higher disposable incomes can enjoy the Algarve's renowned beaches and amenities. The situation raises concerns about the sustainability of the local tourism industry, which has long relied on a mix of domestic and international visitors.