Portugal's Tourism Sector Reports 1.1% Rise in August Overnight Stays, INE Confirms
The National Statistics Institute (INE) announced today that Portugal's tourism accommodation sector registered 3.8 million guests and 10.7 million overnight stays in August 2025, marking year-over-year increases of 0.9% and 1.1%, respectively. The data points to a period of sustained activity during the peak holiday month, although growth rates have moderated compared to previous periods.
A detailed analysis of the figures reveals a significant divergence between domestic and international markets. The resident market provided a substantial boost, with overnight stays from Portuguese nationals growing by 4.1% to reach 3.8 million. In contrast, overnight stays from non-residents saw a marginal decline of 0.5%, settling at 6.9 million. This trend suggests a robust domestic travel season compensated for a slight softening in international visitor numbers.
Among the key international source markets, the United States stood out with a notable 9.8% increase in overnight stays, making it the fastest-growing market in August. The Canadian market also showed strong performance with an 8.5% rise. However, these gains were counterbalanced by declines from traditional European markets. Spain, a historically significant source of tourists, recorded the largest drop of 9.1%, followed by Italy with a 6.9% decrease. Despite these fluctuations, the United Kingdom maintained its top position, representing 16.9% of total non-resident overnight stays.
The regional distribution of tourism activity showed a familiar pattern, with the Algarve accounting for the largest share of overnight stays at 30.3% of the national total. The Autonomous Region of Madeira recorded the most significant growth, with a 3.7% increase in overnight stays. Conversely, the Center region experienced a 3.0% decrease, representing the largest regional decline.
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From a financial perspective, the sector's revenues continued on an upward trajectory. Total revenue in August increased by 6.5% to €812.9 million, while revenue from accommodation specifically grew by 5.5% to €659.4 million. These figures indicate healthy spending and strong operational performance within the sector.
Key hotel industry metrics also reflected this positive financial performance. The average revenue per available room (RevPAR) for the total accommodation sector was €116.8, an increase of 2.6%. The average daily rate (ADR) per occupied room stood at €159.2, which is 4.3% higher than in August of the previous year. These indicators underscore a profitable month for accommodation providers, driven by solid occupancy and pricing.
The INE's report provides a comprehensive snapshot of the tourism landscape, highlighting the critical role of the domestic market and the shifting dynamics among international visitors. The continued growth in revenue and key performance indicators signals underlying strength in the sector, even as overall visitor growth moderates.
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