Tourism in Portugal this year without growth

Portugal’s tourism sector recorded no growth this year, according to recent reports. Hotel owner Sofia Maia in Porto noted fewer crowds than previous years, observing that restaurants were less busy. While she does not complain about low occupancy rates, the overall trend suggests stagnation. As summer winds down, the country's tourism industry has drawn a mixed picture: visitor numbers have remained stable, and tourist spending has not been as robust as before. The slowdown follows a period of rapid expansion. From 2024 through early 2025, visitor numbers rose significantly, with a 9.3 percent increase in 2024 alone, representing over two million more tourists compared to the previous year. However, growth slowed considerably in 2025, with just a 3.3 percent rise in foreign visitors. André Gomes, head of the Algarve tourism association, reported that the first half of the year saw a modest 3.1 percent increase in visitors, along with a 2 percent rise in overnight stays and a 7.7 percent gain in revenue. These figures suggest a return to more normal levels after the post-pandemic surge. An estimated 30 million tourists visit Portugal annually, which is roughly three times the size of its population. Germans rank second among international visitors, following the British. According to statistics, tourists spent nearly 29.4 billion euros in Portugal last year, accounting for 11.8 percent of the nation’s gross domestic product. Despite these figures, concerns are emerging. Economics professor João Duque warned that “we have clearly reached the limits of tourism growth,” adding that there is currently no clear plan to address future challenges. Politicians and planners still seem optimistic about continued expansion. Lisbon’s planned new airport is expected to handle at least 56 million passengers per year by the mid-2030s. In both Lisbon and Porto, around 200 hotel projects with approximately 11,000 rooms have received approval. Although not all projects will proceed, João Duque cautioned that current trends could lead to significant overcapacity. Prices continue to climb despite the economic climate. Professor Duque calculated that a simple sunbed and umbrella at the beach in the Algarve can cost up to 200 euros per day. Dining costs have also risen sharply, with many travelers exceeding a 100-euro limit per person. As a result, some tourists opt to stock up on groceries and eat at home. Restaurant owners report declining patronage, with customers often ordering cheaper menu items and sharing dishes. Celeste Botelho, who runs a restaurant in Nazaré, a famous surfing destination, notes that while the streets remain lively, dining areas are quieter than before. While the tourism sector struggles with rising prices and stagnant demand, many locals appear to welcome the change. João Martelo, a resident of Lisbon, points out that restaurants now have more available seating. He notes that service staff are more attentive to local residents, and he lives near the end station of a major metro line. This shift reflects a broader sense of relief among Portuguese citizens, who may see the reduced influx of tourists as a positive development.