Portugal’s Tourism Growth Stumbles as Domestic Overnight Stays Decline in July

Portugal’s tourism sector saw a mixed performance in July, with overall visitor numbers increasing but domestic overnight stays declining. According to rapid tourism activity statistics, the accommodation sector recorded 3.2 million guests and 9 million overnight stays in July, representing increases of 1.5% and 2.1%, respectively, compared to the same month last year and 6.8% and 5% compared to the previous month. While non-resident overnight stays slowed for the second consecutive month, rising by 4.2% to a total of 6.3 million, domestic overnight stays experienced a downturn. The UK remained the top source market, accounting for 18.3% of visitors and showing a 1.3% growth in July, followed by Spain (12% share) with a 6.1% increase. Among the top 10 source markets, France (7.4% share) registered the only decline (-4%). All regions recorded increases in overnight stays, except for the West and Tagus Valley (-0.4%). The Azores saw the largest growth (+5.3%), followed by the North (+4.9%) and the Setúbal Peninsula (+4.5%), while growth was less significant in Madeira (+0.3%), the Algarve (+0.7%), and the Center (+0.8%). Occupancy rates in tourist accommodation establishments declined in July, reaching 59.1% and 66.5% for the net room-night and room occupancy rates, respectively (-0.4 percentage points in both).