When we talk about Portugal, we naturally talk about tourism. After all, the country receives many tourists from all over the world every year, who come in search of beautiful landscapes, rich cultural history, gastronomy and hospitality.
Tourism in Portugal has long been one of the main drivers of the country’s economy and this is one of the main reasons why there are more and more foreign investments in Lusitanian lands, many of them Americans.
In this article, we’re going to look at the potential and importance of investing in tourism in Portugal, as well as data on hotels in the country so that you have a clearer idea of the scenario in which you want to invest. Have a good read!
Portugal’s tourism potential
From north to south, Portugal’s tourism offers a wide range of attractions, from the stunning summer beaches of the Algarve to the winter ski resorts of Serra da Estrela, from the vineyards of the Douro to the classic tours of all its historic cities, from the largest to the “smallest”, as the Portuguese say.
In addition, the country is known for its renowned cultural events, such as the Festa de Todos os Santos, pilgrimages, medieval fairs and the various summer festivals that take place under the open sky.
Throughout the year, Portugal has attractions to offer, even when there isn’t a specific event, after all, just walking through the historic streets of Portuguese cities is enough to enchant anyone who visits the country.
To make this possible, tourism in Portugal places great value on offering good infrastructure to host events, as well as having a complete transportation network, including easy access to various European countries, Africa and North America.
Another highlight that investors need to be aware of is the growing business tourism taking place throughout the country, especially in Lisbon and Porto, such as the Web Summit and Game Week.
Increasingly, Portugal’s tourism is also making room to integrate technology and digital solutions not only to attract visitors, but to strengthen plans to be a more digital and internationally competitive country later this decade.
It’s not just the country’s infrastructure that is helping Portugal’s tourism continue to stand out in Europe. The population also has an ability to communicate in other languages, mainly English and French, which makes life easier for any visitor and is, in fact, an important point for a country that wants to receive more and more investment in tourism.
In short, this mix of attractions and the ability to welcome visitors from all over the world positions Portugal as a tourism destination with a lot of potential to be explored, in addition to what it already offers.
The importance of tourism for the economy
As mentioned before, tourism in Portugal represents a significant part of the country’s Gross Domestic Product (GDP), meaning that it is very important for the development of all regions.
In recent years, the sector has been responsible for approximately 15% of the national GDP. This economic impact is not just restricted to the revenue generated directly by tourism, but also includes job creation and infrastructure development.
The growth of tourism has encouraged investment in various areas, such as hotels, transportation and services. Cities such as Lisbon and Porto have seen a boom in the real estate sector, driven not only by the number of foreigners coming to live in the country, but by the increase in tourist demand – a fact that has its positive and negative points, and which Portugal is acting strategically to deal with in the best way.
In fact, rural tourism is gaining popularity, promoting the development of less explored regions and contributing to economic decentralization.
Therefore, investing in Portugal’s tourism is opening many doors for smaller cities that are ready to receive more investment.
Foreign investment in Portuguese tourism
Several factors contribute to this trend of foreign investment in tourism in Portugal, such as the country’s political and economic stability, the high quality of life and the relatively low cost of living compared to other European destinations.
Programs such as the Golden Visa have encouraged foreign investors to buy property and set up businesses in Portugal, especially in the hotel and restaurant industry.
Large international chains have opened hotels and resorts in various regions of the country, recognizing the potential for continued growth in Portugal’s tourism industry.
In addition, start-ups and entrepreneurs are investing in sustainable tourism and niche experiences, such as wine tourism and adventure tourism, making the most of what the country has to offer.
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Number of visitors and origin
The main source markets for tourists to Portugal include the United Kingdom, Germany, Spain, France and Brazil.
The British market continues to be the most significant, accounting for around 19% of all foreign tourists in 2024.
Canadian and American tourists have also shown a significant increase, with growth of 18.2% and 17.3% respectively in May 2024.
Economic potential for investing in tourism in Portugal
Spending by foreign visitors to Portugal has shown an upward trend. To give you an idea, by May 2024 export revenues from tourism totaled 9.25 billion euros, an increase of 11.8% compared to the same period in 2023. This increase in spending is attributed to the growth of luxury tourism and the greater demand for authentic and personalized experiences – which cost more.
High-quality infrastructure and services
Knowing its potential in the sector, Portugal has invested significantly in infrastructure and services to improve the tourist experience. Cities like Porto and Lisbon have undergone (and are still undergoing) extensive urban rehabilitation, making them even more attractive to tourists and investors.
Government support and incentives
The Portuguese government actively supports tourism through various initiatives and funding programs. The “Tourism Strategy 2027” outlines a long-term vision that includes promoting sustainable development, improving the quality of tourism services and fostering innovation and entrepreneurship in the sector.
In addition, specific funding lines and tax incentives are available for tourism-related projects, giving foreign investors more security to make their investments and see them develop in a healthy way, benefiting everyone.
