Portugal tourism growth slows as local tax disputes emerge

Portugal's tourism sector saw a 1% increase in overnight stays during the first half of 2026 compared to the previous year, according to Eurostat data. This growth rate trails the European Union average of 1.7%.

Across the EU, international demand grew by 2.5%, outpacing the 0.9% increase in domestic stays. While countries like Ireland and Malta saw significant surges, others such as Cyprus and Romania experienced declines.

In the Ourém region, a proposed municipal tourist tax of two euros per guest per night, set to begin in 2027, has sparked conflict. The Ourém Municipality intends to use the revenue exclusively for tourism investment. However, the proposal faces opposition from the hospitality sector and the Sanctuary of Fátima. Local hoteliers expressed concerns regarding the impact on religious tourism and short-stay margins, while the Sanctuary initially suggested it might limit access to free facilities like parking and restrooms in response to the measure, though it later clarified such actions were merely a form of expression.