A significant portion of Portugal's economy relies on tourism, accounting for 12% of the nation's overall GDP.
In a remarkable turnaround from the pandemic's impact, the tourism sector in Portugal has experienced a robust recovery and expansion. According to the latest data, tourism accounted for approximately 16.5% of the country's GDP in 2023, marking a significant contribution to the economic recovery post-pandemic [4].
This upward trend is expected to continue, with forecasts predicting that tourism's GDP share will increase to around 21.5% by 2025, generating an estimated €62.7 billion in revenue [2]. This growth is a testament to the sector's resilience and the government's efforts to revitalise the tourism industry.
The tourism-related tertiary services sector has also seen consistent growth, accounting for about 74.4% of GDP and employing 65.9% of the workforce by 2023 [4]. Tourism remains a significant component of this growth, with employment in tourism activities growing by 14.2% from 2021 to 2022, above the national economy's growth [4].
Foreign tourist arrivals reached 29 million in 2024, and total visitors (including domestic tourists) amounted to roughly 52 million [4]. The sector's growth rate exceeded that of the global economy in 2024, although the specific growth rate was not provided.
The Direct Gross Value Added Generated by Tourism (VABGT) and Tourism Consumption in the Economic Territory (CTTE) registered nominal increases of 6.5% in 2024. Overnight stays in tourist accommodation establishments in Portugal, by residents and non-residents, also registered positive growth rates from 2021 to 2024, with higher growth for non-residents.
Despite a slowdown, tourism's contribution to economic growth remains positive. In 2023, tourism contributed almost half (1.1 percentage points) to real GDP growth. In 2024, tourism accounted for 0.3 percentage points of real GDP growth [4].
The average wage per worker in the tourism sector corresponds to 91.1% of the national average wage, indicating a relatively competitive remuneration compared to other sectors in the economy.
Portugal maintained the second place in terms of the relative importance of tourism demand in GDP (16.6%), behind Iceland (18.9%) in 2023. The country's strong performance in the tourism sector is a promising sign for its continued economic growth and development.
References: [1] INE (Instituto Nacional de Estatística) [2] SEST (Secretaria de Estado da Turismo) [3] Banco de Portugal [4] APETUR (Associação Portuguesa de Empresas de Turismo)
The renewed surge in tourism sector contributes significantly to Portugal's economy, as tourism's GDP share is forecasted to reach 21.5% by 2025, generating €62.7 billion in revenue. Portugal maintains a strong position in the global tourism market, holding the second place for the relative importance of tourism demand in GDP, behind Iceland.
