Portugal’s hospitality sector has quietly become one of Europe’s most compelling investment stories. While other markets have struggled to recover post-pandemic, Portugal has not only bounced back — it has surpassed its pre-2019 benchmarks across every major metric. Whether you are exploring fund-based investment for your Golden Visa or looking to diversify into a high-performing real estate sector, here are six data-backed reasons why Portugal’s hospitality industry deserves your attention.
1. Record Breaking Growth in the Industry:
Portugal has experienced unprecedented tourism growth, with 2023 marking a record-breaking year. The country welcomed
- 30 million guests, 18.3 million of whom were foreigners, showing increases of 13.3% and 19.1%, respectively, compared to 2022.
- 77.2 million overnight stays, up 10.7% from 2022, and foreigners accounting for 53.8 million of these stays, the hospitality sector is thriving.
While the world tourism globally is still hasn’t went back to pre-pandemic figure of 2019, Portugal has long past the benchmark and the growth surpasses pre-pandemic (2019) levels by
- 10.0% in overnight stays
- 10.7% in guest numbers
- 18.9% in revenue from tourism
Number of international tourist arrivals worldwide from 2005 to 2023, by region(in millions)
2. Tourism Representing a Large Part of a Stable and Growing Economy:
Portugal’s economy is stable and growing
- GDP increased by 9.7% in 2023, reaching around 266 billion euros.
- Tourism sector alone contributed 9.5% to the country’s GDP in 2023.
- Tourist revenue reached 25.1 billion euros, an 18.9% increase from 2022, highlighting the sector’s significant economic impact.
Watch our video for insights into the key opportunities and trends shaping this growing market!
3. Outstanding Hotel Sector Performance:
The hotel sector in Portugal is performing exceptionally well, driven by diverse destinations such as city breaks in Lisbon and Porto, beach vacations in the Algarve, and nature retreats in Madeira, Azores, and Alentejo.
High occupancy rates are common, with prime regions like Lisbon and Porto often exceeding 70% year-round and peaking above 90% during the high season.
Look at the numerous travel awards Portugal got in the most recent 2023 World Travel Awards.
4. Substantial Growth in Emerging Markets:
Emerging regions like Alentejo and the Azores have seen remarkable growth, with a 20% increase in tourism.
Investing through a fund provides exposure to these up-and-coming areas, offering potentially higher returns as these markets develop.
5. Promising Projections for Coming Years:
With a new airport decided in Lisbon and the TGV line connecting Lisbon to Madrid, the tourism sector is set for further growth. Early 2024 data shows
the tourist accommodation sector grew 7.0% and overnight stays grew 6.4%, amounting to EUR 276.4 million in total revenue (+13.0%) and EUR 202.1 million in revenue from accommodation (+13.1%). (statistics from ine.pt)
This infrastructure improvement will make tourism an even stronger and more profitable sector.
6. Fourth Most Searched Destination Worldwide:
According to Condé Nast Traveler, Portugal was the fourth most Googled travel destination globally last year. This heightened global interest positions Portugal as a formidable competitor to top European destinations like France, Spain, Greece, and Italy.
Supporting Statistics
Top 5 Nationalities for Tourists Revenue in Portugal in 2023:
– United Kingdom: €3.8 billion (up 16.1%)
– France: €3.1 billion (up 7.2%)
– Germany: €2.8 billion (up 19.4%)
– Spain: €2.8 billion (up 16.0%)
– U.S.A.: €2.5 billion (up 31.5%)
Top 5 Nationalities for Tourists in Portugal (2023):
– United Kingdom: 9.9 million (up 9.4%)
– Germany: 6.1 million (up 12.9%)
– Spain: 5.5 million (up 7.7%)
– France: 4.6 million (up 6.2%)
– USA: 4.6 million (up 32.9%)
Sources: INE (Statistics Portugal), Banco de Portugal, 2023
Tourism remains a fundamental economic activity for generating wealth and employment in Portugal. With back-to-back years of record-breaking tourism numbers, the country’s hospitality sector offers solid and sustainable returns for investors.
Investing through a fund provides professional management, diverse opportunities, and the ability to capitalize on Portugal’s continued growth and global appeal.
