Portugal’s tourism sector experienced a slowdown in July, with overnight stays by residents decreasing for the first time in recent months. The number of overnight stays in the accommodation sector reached 9 million, marking a 2.1% increase compared to the same period last year. However, this growth was driven mainly by non-resident visitors, whose overnight stays rose by 4.2%. The decline in resident overnight stays is attributed to a combination of factors, including the summer holiday season and rising living costs. The British market remained the largest source of visitors, accounting for 18.3% of the total, followed by Spain at 12%. Among the top ten source markets, only France experienced a decrease, with a 4% drop in overnight stays. Across all regions, overnight stays increased except in the West and Tejo Valley, which saw a 0.4% decline. The Azores recorded the highest growth at 5.3%, followed by the North at 4.9% and the Setúbal Peninsula at 4.5%.