Tourism from Poland and USA Grows, Spanish Market Declines 10%
A recent announcement from the National Statistics Institute (INE) has detailed the performance of Portugal's tourism sector for the month of July. The data indicates that Poland and the United States were the markets with the most significant growth, recording increases of 14% and 12.3% respectively. This contrasts with a 10% decline in the number of tourists from Spain, which remains the second-largest source market for Portugal.
The specific regulations for short-term rental properties and the broader tourist accommodation sector are directly impacted by these market shifts. In July, the sector registered a total of 3.4 million guests and 9.4 million overnight stays, representing year-over-year increases of 4.3% and 3.5%. These figures suggest a continued high demand for tourist accommodation across the country. The United Kingdom maintained its position as the primary source market with a 1.8% growth, while the United States has now overtaken Germany to become the third-largest market.
Revenue projections for property owners in the tourism sector appear positive, with total revenues in July reaching 891.1 million euros, a 10.6% increase from the previous year. Of this amount, 701.6 million euros were generated directly from accommodation services, which grew by 9.2%. The average revenue per available room (RevPAR) increased by 5.1% to 101.1 euros, and the average revenue per occupied room (ADR) rose by 5.6% to 151.8 euros. These metrics are critical for property owners to assess the financial performance and tax implications of their rental assets.
From a compliance perspective, property owners must adhere to accommodation standards and quality criteria, which are overseen by local and national tourism authorities. The neighborhood impact of tourism was varied. While the Greater Lisbon and Algarve regions saw the most modest growth in activity at 1.9%, other areas such as the Alentejo and the Autonomous Region of Madeira experienced more substantial increases of 9.8% and 7.2%, respectively. This indicates a geographic diversification of tourist flows within Portugal.
The market supply and demand dynamics are shifting. While overall growth in overnight stays from foreign markets was 2.2%, domestic tourism showed stronger growth at 6.7%. However, the bed occupancy rate experienced a slight decrease of 1.3 percentage points to 58.1%, and the room occupancy rate fell by 0.3 percentage points to 66.6%. These figures suggest that while demand and revenue are growing, the supply of accommodation may be expanding at a slightly faster pace. Future regulatory developments will likely continue to focus on balancing the economic benefits of tourism with community considerations and sustainable growth.
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