Europan Union's Travel & Tourism sector experiences fastest expansion in Portugal
Portugal's Travel & Tourism sector is set for a significant boom, with projections indicating a contribution of €62.7 billion to the country's GDP in 2025. This represents a 38% increase over the 2019 pre-pandemic level and accounts for 21.5% of the national economy, employing about one in four jobs in the country.
The growth of this sector is fueled by several key drivers.
- Sustainable Tourism Commitment: Portugal is committed to eco-friendly, sustainable tourism practices. By reducing environmental impact and enhancing visitor experiences, the country has become increasingly appealing to environmentally conscious travelers. This focus on sustainability supports long-term sector resilience.
- Innovation and Digital Transformation: The adoption of user-friendly digital platforms and innovative technologies has made travel planning easier, particularly for younger, tech-savvy travelers. The rise in digital planning also reflects changing consumer behavior and contributes to increased tourism efficiency and satisfaction.
- Strong International and Domestic Demand: International visitor spending is expected to reach over €33 billion, with domestic tourism contributing nearly €23 billion. The boom in domestic travel has increased internal trips by 16% in early 2025, boosting demand for hospitality and related sectors.
- Government Strategy and Investment: The Portuguese Government is advancing a National Strategy for Tourism 2030, focusing on sustainable growth, improving the tourism experience, and visitor satisfaction. This strategic approach underpins continued sector expansion and economic contribution.
- Economic and Employment Impact: The sector not only generates direct revenue but also creates jobs. It is expected to employ 1.2 million people in 2025, contributing significantly to national employment and social development.
In 2018, one out of every €5 in Portugal came from tourism, making it a critical driver of the country's economy. The sector grew at the highest rate in the European Union, significantly above the EU average of 3.1%. The Government of Portugal has recognized the Travel & Tourism industry as a driver of economic growth.
The growth in this sector has been commended by the World Travel & Tourism Council (WTTC). Gloria Guevara, WTTC President & CEO, has commended Ana Godinho, Secretary of State for Tourism, for delivering an ambitious strategy that has shown impressive results in the Travel & Tourism sector.
The future of the Travel & Tourism sector in Portugal looks bright, with continued growth forecast. The sector has been named Best World Destination and the Best Tourist Destination in Europe for the past three years at the World Travel Awards, attracting millions of international visitors to its shores each year.
The sector has seen strong growth from non-traditional markets such as the USA (+21.8%), Canada (+21.3%), China (+16.8%) and Brazil (+13%). These figures demonstrate the global appeal of Portugal as a tourist destination.
In conclusion, Portugal’s Travel & Tourism sector’s growth and economic importance stem from deliberate efforts to combine sustainability, innovation, strong market demand, and supportive public policy, positioning it as a critical driver of the country’s economic recovery and future development.
[1] World Travel & Tourism Council (WTTC) - [Report] Portugal Travel & Tourism Economic Impact 2019 [2] World Travel & Tourism Council (WTTC) - [Report] Portugal Travel & Tourism Economic Impact 2020 [3] World Travel & Tourism Council (WTTC) - [Report] Portugal Travel & Tourism Economic Impact 2021 [4] World Travel & Tourism Council (WTTC) - [Report] Portugal Travel & Tourism Economic Impact 2025 (Projected)
- For the adventure-travel enthusiast, Portugal offers a myriad of cultural-travel opportunities, such as hiking through the dramatic cliffs of Alentejo, or surfing the waves in the historic town of Nazaré, all while contributing to Portugal's growing budget-travel sector.
- With the rise in demand for lifestyle travel in 2025, Portugal's commitment to eco-friendly practices alongside innovative digital platforms is poised to attract a diverse range of travelers, fueling the growth of its adventure-travel and cultural-travel sectors.
