Portugal Sets June Revenue High as Visitor Mix Quietly Shifts

Tourism in Portugal kept its post-pandemic momentum in early summer, racking up record June revenue, a modest bump in guest arrivals and a noticeable shift in where visitors choose to spend the night. For foreigners living here—or eyeing a move—these trends translate directly into fuller hotels, higher seasonal prices and a livelier job market in hospitality and related services.

A steady climb, not a sprint

Fresh data from Instituto Nacional de Estatística (INE) confirm that 3.1 M guests checked into licensed accommodation across the country in June, up 2.5 % from last year. They generated 8.1 M dormidas, a 3.1 % rise that looks small on paper but places Portugal ahead of the euro-area average for the fourth straight month. Domestic travellers pulled more than their weight—overnights by residents jumped 5.8 %, offsetting softer demand from abroad in May and cushioning the industry against any wobble in long-haul bookings.

Money tells an even rosier story. Total proveitos hit €751.8 M, surging 7.6 % year-on-year, while room revenue alone climbed 7.9 % to €583.4 M. That means operators squeezed more cash out of every pillow: the average daily rate (ADR) rose 4.9 % to €137.4 and RevPAR added 5.4 % to €89.5. A wafer-thin improvement in bed occupancy—now 54.8 %—helped, but pricing power is doing most of the heavy lifting.

Winners, laggards and the changing passport mix

British travellers still top the charts, accounting for 20.3 % of all foreign overnights, yet their volume dipped 1 %. The vacuum was filled by Germans, whose stays ballooned 9 %, and North Americans, with U.S. guests up 5.5 % and Canadians 7.7 % higher. Conversely, French and Brazilian clients retreated, registering drops of 8.2 % and 7.5 % respectively. Analysts link the French slowdown to competing Mediterranean bargains and airline seat capacity cuts, while Brazil’s softer real curbed long-haul appetite.

For expats working in tourism, the message is clear: German-speaking customers are back in force and North American demand remains robust, so language skills and tailored experiences for those segments can pay off quickly.

Algarve still rules, Madeira steals the spotlight

No region comes close to the Algarve’s 2.4 M dormidas, or 29.4 % of the national total, but growth there was a measured 2.3 %. What stands out is the 7.5 % jump in Algarve revenue, helped by a 3.91-night average stay that dwarfs the national 2.59-night figure.

Further south-west, the Madeira archipelago posted a 9.2 % leap in overnights and a striking 17.7 % revenue surge. A domestic travel boom—Portuguese guests to the island soared 45.8 %—combined with higher yields per room turned the Atlantic outpost into June’s breakout performer. In mainland Portugal, the Alentejo led percentage growth in stays at 9.6 %, while the Norte region quietly booked a 12.2 % upswing in revenue, driven by city-break appeal in Porto and Braga. Lisbon, by contrast, eked out only 0.1 % more overnights, an early sign that the capital’s red-hot market may be brushing up against price resistance.

What is inflating the revenue balloon?

Three intertwined factors explain the 7.6 % income jump. First, higher occupancy and longer stays create a larger sales base. Second, properties have room to push ADR higher—Portugal still sits below Spain and Italy on average price despite fast catches. Third, travellers are opening their wallets for add-ons: half of hotels now market curated food or wine experiences, and 70 % offer cultural immersion packages. Sustainability sells too; surveys show 70 % of guests would pay extra for a greener stay, a figure hoteliers are starting to monetise.

Why this matters to foreign residents

For expat entrepreneurs, rising proveitos signal healthy demand for ancillary services—from guided tours to co-working cafés. Property owners contemplating short-term rentals can glean that ADR momentum is intact, though tougher licensing rules in Lisbon and Porto still apply. Job-seekers will notice the rebound in staffing adverts; many resorts are extending contracts into autumn to lock in multilingual talent. And, inevitably, higher occupancy can nudge up everyday living costs in tourist hotspots, from ride-hailing surcharges to restaurant menus.

The road ahead

Early booking data suggest July and August will keep revenue climbing, but industry insiders are watching three swing variables: airline capacity out of France and Brazil, the effect of a strong dollar on U.S. demand, and whether Madeira can absorb its new popularity without price shock. Whatever the outcome, the first half of 2025 has already delivered €3 B in lodging revenue, proof that Portugal’s tourism engine is humming—and that foreign residents are riding shotgun as both beneficiaries and contributors.