Mild winters, hot summer temperatures, and a diverse offering of coastal and mountain destinations have turned Portugal into an ideal holiday spot in Europe – so much so that, in 2022, the country was among the
based, among other factors, on its weather, safety, affordability, and landmarks.
The role of tourism in the Portuguese economy
When thinking of Portugal, it is impossible not to think of its white sand beaches, clear blue skies, and golden cliffs. The grandiosity of the natural beauty of the country explains why Portugal remained among the
top three most tourism-dependent countries in the European Union in 2022.
The Portuguese tourism sector faced severe challenges during the COVID-19 pandemic, when its
balance of payments, which shows the difference between the inflows and outflows from international tourism, diminished by more than 60 percent in 2020. Nevertheless, this sector emerged from the pandemic even stronger,
generating 32.7 billion euros in sales in 2022, more than ever before.
Spain: Portugal’s main tourism partner
The geographical proximity between Portugal and Spain has turned the latter into the
main source market for international tourists in the former, besides being the
most popular outbound destination for Portuguese travelers. In 2022, Spain accounted for roughly a quarter of inbound tourists in Portugal, while representing 38.5 percent of the trips taken by Portuguese international tourists that year.
Most popular tourism destinations in Portugal
Lisbon, the smallest Portuguese continental region and home to the country’s homonymous capital city, was, by a wide margin,
Portugal's most popular travel destination for international tourists in 2022. However,
tourists in other Portuguese regions tended to spend more time in their destinations. In 2022, Madeira, the region where tourists stayed the longest, received
more than 1.78 million overnight tourists, surpassing its pre-pandemic values and becoming more popular among travelers.
Tourism: a pillar of economy in Portugal
Tourism was one of the
main sectors contributing to the Portuguese gross domestic product (GDP) in 2023, having generated more than 42 billion U.S. dollars. This sector is one of the main drivers of Portugal's economy, a trend that is expected to continue.
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