The first official figures available, covering the period from January to May 2026, point to a 1.5% increase in the number of overnight stays in Portugal compared with the same period in 2025. Overnight stays from international markets grew by 1.3% [representing a 71% market share], while the domestic market increased by 2.2% [with a 29% market share]. With supply growing by 2.1%, measured by the number of available beds, this is likely to result in a slight decrease in occupancy rates and, most probably, less room for further increases in average prices. Nevertheless, tourism revenues in Portugal increased by 4.3% through April.
This trend is broadly in line, although at more moderate levels in Portugal, with the European picture, where demand has grown by 5% compared with 2025. It is even more significant when considered against the backdrop of the international political situation, which is contributing to modest growth in the major economies and some slowdown in household spending on holidays.
It is precisely during these periods – while the industry remains structurally strong, that action should be taken to address the constraints to sustained medium, and long-term growth. Three brief points are worth highlighting in this context: (1) the need to unlock additional growth capacity at Lisbon Airport, while also accelerating the development of the new airport; (2) further efforts to geographically diversify both supply and demand, allowing for longer stays and increasing the likelihood of multiple visits to Portugal; and (3) investment in human resources and training, with particular emphasis on the immigration required to support the sector’s operations.
These challenges, combined with the continued improvement in the quality of Portugal’s tourism offering over the past decade, will help maintain the country as a globally recognized destination while also attracting new domestic and international investors. In this respect, the focus should not only be on promoting new hotel developments but, equally or even more importantly, on investing in the upgrading of existing properties, both in their physical infrastructure and in all the equipment and facilities they encompass.
Eduardo Abreu is a professional with extensive experience in hospitality, tourism, and real estate investment. He is currently part of CBRE Portugal’s Hotels team, where he advises on investment projects, development, and the positioning of hotel assets.
Throughout his career, he has specialized in hotel investment, project development, and strategy for tourism assets, maintaining strong relationships with investors, owners, operators, and international brands. He is also a member of the ULI Europe’s Resort Council.
