Tourism in Portugal Expected to Grow by 9 Percent in 2025

Portugal was expected to close 2024 with a record 27 billion euros in tourist revenue, and, according to the Secretary of State for Tourism, the outlook is also positive for 2025 – with expected growth of 9 percent. 

Towards a Sustainable Future for Tourism

The projected tourism growth of 9 percent is according to Pedro Machado, Secretary of State for Tourism, who stated at the opening panel of a conference dedicated to the 2035 Tourism Strategy in Aveiro, that “Portugal does not have too many tourists” but that the prospect of continued tourist growth entails challenges and risks that would need addressing. This includes labor, the digital transition of companies, and the training of immigrants. Pressure on resources, particularly water, was a further concern highlighted.

The 2035 Tourism Strategy is currently being developed with public and private entities in the tourism “ecosystem” and will aim to ensure that tourism remains one of the leading sectors for Portugal, whilst also focusing on its sustainable growth, both for society and the environment.

As the 2025 Tourism Strategy states, “If tourism can be a force for good, we must transform this essential sector of the economy into an increasingly important pillar for the sustainable and balanced development of the country”.

Diversifying Tourism in Portugal

At present, the majority of Portugal tourism is focused on Lisbon, Porto, the Algarve, and the Portuguese Coast, with the center or Portugal and interior areas of the country missing out on economic opportunities that come with tourism.

Isabel Damasceno, the chair of the Regional Coordination and Development Commission, mentioned that part of the funds needed to support the tourism sector in Portugal will be allocated to inter-municipal communities with support tailored to each and coordinated by the Regional Tourism Entity.

The President of the Entity expressed a need for greater tourism flows from Lisbon and Porto, with most of Central Portugal in the interior of Portugal missing out on increased tourism numbers.

He mentioned that, to counteract, the “great coastalization” of tourism, that a focus needs to be made on improving accessibility to interior areas, whether by rail or road. Central Portugal is one of the most beautiful parts of the country, with Ribau Esteves, the President of the chamber of the Aveiro, mentioning the region to be “a unique destination in terms of culture and territorial conditions”.

Portugal Continues to Cement Itself as the Dream Location

The projected continued growth of tourism in Portugal – and the opening up of the country for tourism to expand from Lisbon, Porto, and the coastal regions – is a major plus for those seeking to invest in the country. With greater tourist numbers, this is a key draw for foreign investors seeking a strong return on a property investment, with lucrative options now including interior parts of Portugal.

With more tourists and expats seeking to visit or live outside the hotspot areas, regions such as Central Portugal, the north, and the Alentejo, are set to become increasingly popular in the coming years. Trends have already been emerging, with tourists seeking out wellness and spa retreats in the interior parts of the country, opening up investment opportunities in these regions, alongside more expats than ever before seeking out quiet areas in the country to settle.