Tourism trends and new tax proposals in Portugal

In Madeira, local lodging (Alojamento Local) has become a significant component of the tourism sector. Data from 2025 and 2026 indicates that local lodging accounts for approximately one-third of all tourist overnight stays in the region, with figures ranging between 33.6% and 34.2% in the second quarter of 2026. While the exact impact on the total housing stock is difficult to quantify due to a lack of official comparative indicators, estimates suggest local lodging represents roughly 6.2% of the region's total housing units. Funchal remains the primary center of this activity, hosting about 41% to 42% of the region's registered establishments.

In the Azores, the municipality of Lajes do Pico has opened a public consultation to implement a new tourist tax. The proposal suggests a fee of two euros per guest per night for tourist establishments and local lodging, capped at three consecutive nights. A reduced rate of one euro per night would apply to campsites and caravan sites. Exemptions are proposed for residents of the Azores, guests under 13 years of age, and individuals with a disability of 60% or higher. The municipality stated the tax is necessary to manage the pressure on local infrastructure and services caused by gradual tourism growth.