Portugal’s Travel & Tourism Sector Achieves Unprecedented Growth: Golden Era Ahead in 2025 – Travel And Tour World

Portugal’s travel and tourism industry is enjoying a Golden Period following a 2024 record-breaking growth. In alignment with data provided by World Travel & Tourism Council (WTTC), the industry is continuously shattering new records in visitor spend, jobs, and economic contribution. Heading into 2025, things are still very bright as tourism is on course to contribute €62.7 billion to Portugal’s national economy, which represents 21.5% of GDP of Portugal. This figure not only towers above 2019’s previous high by a considerable amount, but it’s also a virtually 38% surge above that previous high.

As part of its economic growth, Travel & Tourism in Portugal will create 1.2 million jobs across the country, a 200,000 increase in jobs from its previous high. This growth in economic contribution and jobs remains a testament to the sustained prosperity of the tourism sector of Portugal as it continues to attract millions of international visitors while maintaining robust demand from the domestic market.

Record-Breaking Economic Contribution and Employment Growth

The latest Economic Impact Research (EIR), conducted in collaboration with Oxford Economics, has revealed that Portugal’s Travel & Tourism sector will contribute a staggering €62.7 billion to the national economy in 2025, continuing the upward trajectory set by 2024. This is an impressive 38% increase over 2019 levels, indicating the sector’s impressive resilience and growth post-pandemic.

The economic contribution of Travel & Tourism now represents 21.5% of Portugal’s GDP, cementing it as a critical pillar of the national economy. The sector has outpaced all other industries in terms of growth, and this sustained economic boom is expected to drive investment in infrastructure, technology, and local businesses, further bolstering Portugal’s position as a leading global destination for leisure and business travel.

Portugal’s tourism continues to support a robust job market, with nearly 1.2 million jobs forecasted in 2025—accounting for one in four jobs in the country. This increase in employment represents a 200,000 job rise compared to the sector’s previous employment peak, further highlighting how essential the tourism industry is to Portugal’s workforce. From hotels and transportation services to restaurants and tour operators, the Travel & Tourism sector is deeply embedded in the fabric of Portugal’s economy, benefiting communities from Lisbon and Porto to the Algarve and Madeira.

Growth in International and Domestic Visitor Spending

International visitor spending is set to see another substantial boost in 2025, with projections indicating an increase to €33.1 billion—a 24.2% increase compared to 2019 levels. This surge reflects global demand for travel to Portugal, which has become an increasingly popular destination for both leisure and business travelers. International visitors are drawn to the country’s rich cultural heritage, historic cities like Lisbon, Porto, and Sintra, as well as stunning coastlines and world-class wine regions.

At the same time, domestic spending is forecast to grow by 59.5% over 2019 levels, reaching €22.9 billion. This robust growth indicates that Portugal’s local tourism market is thriving alongside the international influx. Portuguese nationals are increasingly exploring their own country, discovering regional gems beyond the usual hotspots like Lisbon and Porto. This growth in domestic travel further solidifies the resilience of the tourism sector and its capacity to cater to both international visitors and local residents alike.

The Continued Appeal of Portugal as a Global Destination

Portugal’s appeal as a global tourism destination continues to soar, driven by its diverse offerings and strong brand as a safe, welcoming, and high-quality destination. From Lisbon’s vibrant arts scene to the sun-drenched beaches of the Algarve, and the world-renowned Port wine cellars of Porto, the country provides something for every type of traveler. Additionally, the country’s rise as a digital nomad hub, particularly in cities like Lisbon and Porto, continues to add to its allure.

The World Travel & Tourism Council and Oxford Economics report that Portugal’s tourism sector is likely to remain resilient in the coming years, with strong prospects for growth and job creation. The country’s continued investments in its tourism infrastructure, including sustainable travel initiatives and smart city projects, are set to maintain its competitive edge.

The government’s commitment to promoting sustainable tourism has also contributed to the sector’s success, with eco-friendly initiatives, such as carbon offset programs, increased access to public transport, and the promotion of off-the-beaten-path destinations, appealing to more eco-conscious travelers. This alignment with global sustainability trends ensures that Portugal remains at the forefront of the modern tourism movement.

How Tourism Drives Broader Economic Benefits

Beyond job creation and visitor spending, Portugal’s tourism sector also drives broader economic benefits. The increasing number of international visitors has encouraged foreign investment, as well as partnerships with private sector companies, to develop new experiences and attractions. From luxury accommodations and boutique hotels to unique cultural events and festivals, Portugal’s tourism infrastructure is evolving to meet the growing demand.

The economic ripple effects of a thriving tourism industry extend well beyond the immediate travel sector. Local businesses, from artisans and farmers to tech startups, all benefit from the influx of tourism dollars, contributing to a dynamic and inclusive economy. As Portugal’s tourism industry continues to flourish, the government is likely to introduce further initiatives that encourage more sustainable and inclusive development.

Conclusion

Portugal’s Travel & Tourism industry is now formally in a golden age, as economic contributions, jobs, and expenditure by visitors have achieved record high levels. Forecast to contribute a record-high of €62.7 billion to the national economy by 2025, the industry will continue to remain a pillar of economic life in Portugal for years to come. Demand internationally and domestically remain drivers of growth, and diversification of offers by the nation ensures that it will remain a premier world destination for a very long time to come.

It’s a story of success for the industry and a triumph for sustainable and responsible development by the Government of Portugal. Looking ahead to 2025, its tourism sector is on track for even bigger success, generating further economic vibrancy for Portugal and its reputation as a welcoming and dynamic destination for worldwide international visitors.

(Source: Portugal Tourism Board.)