Published on
August 20, 2025
Portugal’s tourism accommodation market showed sustained growth in Q2 2025, with new figures from the National Statistics Institute (INE) revealing ongoing gains in both arrivals and nights spent. Subsequently, revenue also climbed, underscoring the ongoing robustness of the sector nationwide. these indicators together confirm the enduring attractiveness of the country’s hospitality and confirms its capability of weathering past and ongoing disruptive factors.
Increased Guests and Room Nights: A Strong Start to 2025
According to the INE, the tourism accommodation sector recorded 9.2 million guests and 23 million room nights in the second quarter of 2025. These figures reflect year-on-year increases of 4.4% in guest arrivals and 4.2% in room nights. When compared to the first quarter of 2025, this marks a slight improvement in guest arrivals, up by 2.4%, and a minor dip in room nights, down by 0.4%. These numbers point to a steady recovery and ongoing demand for tourism accommodation across the country.
Revenue Surge Reflects Growing Demand
Revenue in the sector also saw notable growth in Q2 2025. Total revenue for the period reached €2 billion, with accommodation revenue making up €1.6 billion. This represents an increase of 9.4% and 9.8% year-on-year, respectively. When compared to the first quarter of 2025, where revenue increases were recorded at 4.6% and 4.1%, the Q2 figures suggest a more significant demand for accommodations as the year progresses.
Growth Across Accommodation Segments
The growth in overnight stays was seen across all three major accommodation segments. Hotels, which make up 81.2% of total overnight stays, saw a 4% increase in the second quarter of 2025. Local accommodations, comprising 14.9% of the total, experienced a 3% rise in overnight stays. The biggest increase was seen in rural and residential tourism, which recorded a remarkable 13.1% increase, representing 3.9% of total overnight stays.
Regional Distribution of Overnight Stays
Portugal’s most popular regions for overnight stays in Q2 2025 were the Algarve, Greater Lisbon, and the North. The Algarve led the way, accounting for 27.1% of all overnight stays, followed by Greater Lisbon with 23.4% and the North with 17.8%. These regions continue to attract both international visitors and domestic travelers, driven by their appeal as prime holiday destinations.
For overnight stays by Portuguese residents, the North accounted for the highest share at 21.7%. Non-resident overnight stays were dominated by the Algarve, which recorded 30.5% of the total. These figures underscore the continued dominance of Portugal’s coastal and urban destinations for foreign tourists, while the North remains a preferred region for local travelers.
External Markets Drive the Majority of Overnight Stays
External markets continued to dominate the tourism accommodation sector in Portugal, accounting for 72.3% of total overnight stays in Q2 2025. This amounted to 16.7 million overnight stays, which marks a 2.9% increase compared to the same period in the previous year. The increase in international travelers further demonstrates the global appeal of Portugal as a tourist destination. Domestic tourism, while important, showed a smaller increase of 7.6%, with 6.4 million overnight stays recorded.
The INE has pointed out that while external markets have made up the majority of overnight stays, there is a noticeable shift in the dependence on foreign tourism. The percentage of international visitors dropped by 0.9 percentage points compared to the same quarter in 2024. This marks the third consecutive quarter in which the weight of international visitors has decreased year-on-year.
Regional Dependence on Foreign Markets
Certain regions in Portugal continue to show a higher dependence on international tourists. Greater Lisbon, for instance, had the highest reliance on foreign markets, with 82.9% of its overnight stays coming from non-residents. This was closely followed by Madeira (82.4%) and the Algarve (81.4%). In contrast, the Central region and Alentejo showed less dependence on foreign markets, with only 34.6% and 36% of overnight stays coming from non-residents, respectively.
Leading Source Markets for Tourism
In terms of source markets, the UK remains Portugal’s largest foreign market, accounting for 19.3% of total non-resident overnight stays in Q2 2025. This was followed by Germany, with 11.3% of total overnight stays, and North America, which accounted for 10.4% of the total. Among the top ten source markets, the Spanish market saw the highest growth, with a 9.2% increase in overnight stays. In contrast, the French market saw a decline of 9.3%, signaling a shift in traveler preferences.
The United States emerged as the leading foreign market in several regions. In the Autonomous Region of the Azores, the US accounted for 18.6% of non-resident overnight stays, while in Greater Lisbon, it contributed 18.3%, and in Alentejo and the North, the figure stood at 15% and 14%, respectively. Spain led the markets in regions such as the West and Tagus Valley, while the UK remained the primary foreign market in the Algarve.
Looking Forward: The Future of Portugal’s Tourism Accommodation Sector
The tourism accommodation sector in Portugal continues to show resilience and growth, despite some seasonal fluctuations and shifts in international demand. As tourism infrastructure improves and the global tourism market continues to rebound, Portugal’s appeal remains strong, particularly among international visitors seeking authentic cultural experiences and beautiful landscapes.
The ongoing rise in domestic tourism is also a positive sign for the country, indicating that more Portuguese residents are exploring their own country, adding to the overall growth in the sector. With international markets such as North America and Europe continuing to drive growth, Portugal’s tourism accommodation sector is expected to continue its positive trend throughout the year and into the future.
Conclusion
The tourism accommodation sector in Portugal has demonstrated strong growth in the second quarter of 2025, with an increase in both guest arrivals and overnight stays. While international markets continue to dominate, the rise in domestic tourism suggests a positive outlook for the country’s travel industry. With a focus on supporting local operators, enhancing infrastructure, and promoting sustainable tourism, Portugal is well-positioned to remain a top destination for travelers from around the world.
[Source: The Portugal News]
