Portugal tourism growth slows after years of record highs

Portugal's tourism sector is experiencing a period of stagnation following years of record-breaking growth. While the country previously saw significant surges in visitor numbers, recent data indicates a slowdown. According to the National Institute of Statistics (INE), visitor growth dropped from 9.3% in 2024 to just 3.3% in 2025.

In the first half of the current year, visitor numbers rose by 3.1%, overnight stays increased by 2%, and revenues grew by 7.7%, according to André Gomes, president of the tourism association for the Algarve region. Despite these increases, local business owners in cities like Porto report that crowds and restaurant occupancy appear lower than in previous years.

Tourism remains a vital pillar of the national economy, with approximately 30 million annual foreign visitors—nearly three times the country's population—contributing 29.4 billion euros, or 11.8% of the national GDP. British and German tourists remain the primary visitor groups. However, economist João Duque warns that the country may have reached the limits of tourism growth, noting a lack of future planning to address this plateau.