Portugal Smashes Tourism Record as 29 Million Visitors Pour In - Accounts For 9.7% of GDP

Portugal’s tourism juggernaut kept rolling last year, welcoming an unprecedented 29 million international visitors and reinforcing the country’s reputation as one of Europe’s most sought-after destinations. Arrivals jumped 9.3 percent compared with 2023, according to newly released data from the National Statistics Institute (INE), extending a two-year streak of double-digit growth and vaulting well beyond pre-pandemic records.

The headline numbers—and what hides behind them

The fresh figures show that hotels and short-stay rentals checked in 34 million guests overall in 2024, counting both residents and foreigners, and logged 88.3 million overnight stays. Foreigners made up nearly seven in every ten bed-nights—the highest share in more than a decade save for a brief spike in 2017—underlining how dependent the industry has become on overseas demand.

Who supplied the crowds?

Spain remained the largest feeder market, accounting for almost a quarter of all foreign visitors and expanding a further 7.5 percent. The United Kingdom and France completed the traditional top three, but the fastest risers came from farther afield. Canadian overnights soared 17 percent, while U.S. stays climbed 12 percent, cementing North America as the star performer of the past two seasons. Polish and Dutch travellers also posted double-digit gains, hinting at a diversification of source markets that tourism officials have long pursued.

Spending power on the rise

More visitors did not just fill rooms; they also opened their wallets. Tourism receipts reached €27.7 billion in 2024, up 8.8 percent year-on-year, central-bank data show. The United Kingdom generated the single biggest slice of that revenue (€4.1 billion), but the United States registered the sharpest jump, adding almost 14 percent to €2.9 billion. In all, travel-related income accounted for roughly 9.7 percent of Portugal’s GDP, up from 8.6 percent in the pre-Covid banner year of 2019.

Where the boom is felt—and felt most keenly

Roughly 70 percent of overnight stays continue to cluster in four regions: Lisbon, Algarve, Madeira and the North. For residents in those areas—many of them foreigners who have chosen Portugal for work, retirement or digital-nomad life—the surge brings opportunity and strain in equal measure. Hotel employment is expanding, new restaurants are opening, and short-term rental yields remain high. Yet rising rents, crowded public transport and pressure on water resources, particularly in the Algarve, have become everyday talking points.

Why expatriates should care

For foreign homeowners, an influx of high-spending tourists often translates into higher property values and stronger rental demand. Entrepreneurs eyeing hospitality, wine tourism or outdoor-sports ventures will note that niche segments such as enotourism and nature tourism are central to Portugal’s 2035 strategy. Conversely, residents relying on long-term leases may need to prepare for further upward pressure on housing costs, especially in prime coastal towns and historic city centres.

The view toward 2025 and beyond

Government projections suggest the sector could expand another two to five percent this year. Officials are targeting three million Spanish arrivals and €200 million in Chinese visitor spending as early milestones under a new decennial tourism plan now being drafted. Long-range ambitions are even bolder: by 2033, policymakers want travel to contribute one-fifth of national output and to double current revenue levels. For anyone living, working or investing in Portugal, the message is clear: tourism is set to remain a defining pillar of the economy—and of daily life—for years to come.