Algarve's prime tourist attraction is Albufeira
In the sun-soaked Algarve region of Portugal, the municipality of Albufeira continues to shine as a beacon for tourists, according to the latest data from the National Statistics Institute (INE).
In June 2025, Albufeira recorded nearly 900,000 overnight stays, making it the municipality with the second highest number nationally, just behind Lisbon. This accounted for 11.1% of the total overnight stays across the country and more than a third of those in the Algarve region.
The success of Albufeira can be attributed to several key factors, as outlined by the mayor, José Carlos Rolo. The excellence and diversification of hotel capacity in the municipality have been highlighted as a major reason for sustaining its top position and attracting diverse tourist profiles.
The wide range and quality of accommodation options available in Albufeira have played a significant role in its continued popularity. From luxury resorts to budget-friendly apartments, the municipality caters to a variety of preferences, ensuring that it remains an attractive destination for tourists.
Albufeira's leadership within the Algarve region—which itself is Portugal's top tourist area—also contributes to its success. The Algarve remains the most preferred region in Portugal for tourists, contributing almost 30% of all overnight stays nationally in June 2025. As a regional leader, Albufeira benefits from this overall regional demand.
The positive impacts of Albufeira's tourism growth are reflected in the local economy, according to José Carlos Rolo. Compared to the first half of 2024, there were increases in guests (1.7%), overnight stays (0.3%), and total revenue (5.5%), indicating ongoing positive growth and economic impact from tourism in Albufeira.
Moreover, the municipality of Albufeira is ahead of the growing municipalities of Lagos and Portimão in the Algarve region. The figures recorded in June 2025 show a growth trend seen throughout the first half of 2025.
José Carlos Rolo states that Albufeira has increasingly established itself as the capital of tourism. He believes that there has been a "paradigm shift regarding seasonality" in recent years, with tourists visiting the municipality throughout the year rather than just during peak seasons.
The growth in tourist numbers and revenue is not solely due to international visitors, but also a result of a balanced domestic and international demand. While some international markets like Ireland and the UK have declined, growth in domestic tourism and other international markets such as Germany and North America have helped maintain demand.
The region showed an increase in room occupancy rates (84.6% in July 2025) and solid performance in Revenue per Available Room (around €160), reflecting healthy commercial tourism activity, which benefits Albufeira as a leading destination within Algarve.
In summary, Albufeira's sustained popularity is driven by a combination of its extensive and varied hotel infrastructure, its leadership within the Algarve region—which itself is Portugal's top tourist area—steady growth in tourism volume and revenue, and a resilient mix of domestic and selective international visitors according to recent INE data and regional statistics.
[1] National Statistics Institute (INE), Tourism Statistics, June 2025. [2] National Statistics Institute (INE), Tourism Statistics, July 2025. [3] National Statistics Institute (INE), Tourism Statistics, First Half of 2025. [4] National Statistics Institute (INE), Regional Tourism Statistics, June 2025.
In line with its continuously growing popularity, Albufeira, Portugal, offers an extensive calendar of events catering to diverse tourist preferences, enhancing the region's appeal as a travel destination. The events sector in Albufeira contributes significantly to the local lifestyle, enriching the tourism product and drawing visitors all year round.
The Algarve region, as a leading tourist area in Portugal, has seen a notable increase in revenue per available room (around €160 in July 2025), a testament to the region's booming commercial tourism and solid economic impact, particularly in Albufeira.
