The latest flash statistics for August 2024 reveal a robust performance in the Portuguese tourism sector. This period recorded a new monthly peak, with 3.8 million guests and 10.5 million overnight stays, showing a year-on-year growth of 5.9% for guests and 3.8% for overnight stays. Notably, this growth occurred despite a decline in non-resident overnight stays for the third consecutive month, emphasizing the resilience of domestic tourism. The substantial increase in residents’ overnight stays (+4.6%) highlights a stable internal demand that could offer a predictable revenue stream for properties targeting local travelers.
The growth of international markets also plays a significant role. The British market maintained its position as the largest inbound market, representing a 17.1% share, while Spain followed closely with a 16.3% share and exhibited a notable 4.6% increase. Markets outside Europe also presented remarkable growth, particularly Canada (+11.2%) and the United States (+8.4%). These positive dynamics from North American countries indicate a broader geographic diversification in visitor profiles, making Portugal an attractive and resilient destination amidst fluctuating international travel trends.
In terms of regional performance, all regions recorded increases in overnight stays, except for Madeira, which saw a slight decline of 0.3%. The Setúbal Peninsula (+8.1%) and the Azores (+7.5%) led the growth, whereas traditional hotspots like the Algarve showed more modest increases (+1.1%). This trend may suggest emerging opportunities in lesser-known regions, with investors potentially benefiting from the rising popularity of less saturated locations like Setúbal and the Azores.
Occupancy rates also improved, reaching 67.9% for net bed occupancy and 74.3% for room occupancy, both up by 0.6 percentage points compared to the previous year. These figures indicate continued demand across the sector and suggest a potential for profitable rental yields, especially in high-occupancy areas.
Investment Opportunities in Portugal: Leveraging Tourism Growth in Emerging Regions
The strong growth in overnight stays, particularly in less traditional regions, presents compelling opportunities for real estate investors considering the Portuguese market. The consistent increase in residents’ stays highlights a solid local demand, which can mitigate risks associated with international tourism volatility. Furthermore, the diversification of international markets strengthens the case for investing in properties aimed at a varied clientele.
Investors should consider exploring opportunities in emerging regions like the Setúbal Peninsula and the Azores, where occupancy rates and demand for accommodations are on the rise, providing attractive entry points compared to more mature and competitive regions like the Algarve. Overall, the Portuguese tourism sector’s resilience, supported by both domestic and international markets, continues to make it a promising area for real estate investments targeting the short-term rental market.
