Is Portugal Becoming a Hotspot for American Tourists?

The number of US tourists visiting Portugal continues to rise steadily each year. By 2024, the United States has become the second-largest source of foreign visitors to the country. Data from the National Statistics Institute of Portugal (INE) highlights this impressive growth, reflecting the increasing appeal of Portugal as a top destination for American travellers.

Based on the available data, the number of tourists from the US surged from 584,700 in 2022 to 902,000 in 2023, and in 2024, it exceeded one million. It's important to note that these figures represent only the first six months of each year. In just two years, the number of American visitors to Portugal nearly doubled. 

The UK remains the leading market for Portugal's tourism sector, reflecting its longstanding role as a major contributor. In the first half of 2024, Portugal welcomed 1.2 million visitors from the UK, marking a 6% increase compared to the same period last year.

Looking at the data, it’s clear that the US is quickly closing the gap on the UK, making these two nations the top contributors to Portugal’s tourism sector. In fact, the US market has already outpaced other key markets, such as Spain and Germany.

UK tourists account for 13% of all foreign visitors to Portugal and contribute 18% of the total overnight stays. Out of the 25 million non-resident guests in Portugal, British visitors alone made up 4.7 million stays.

Overall, Portugal's tourism sector is experiencing a steady upward trend, with foreign tourists playing a significant role in this growth. For instance, in 2023, the sector not only recovered but exceeded pre-pandemic levels.

Regarding US tourists, this growth tendency has already been observed in the first four months of this year. When comparing expenditures in 2024 to those in 2019, they have more than doubled. 

In the first six months of 2024 alone, Portugal's tourist accommodations welcomed 14.4 million guests, marking a 5.6% increase from the same period last year. Among these, 8.8 million were international visitors, making up 62% of the total. 

When it comes to overnight stays, US tourists contributed 2.35 million – positioning the US as the fifth-largest source market for overnight stays, behind the UK, Germany, Spain, and France.

In total, foreign guests accounted for 71.5% of the 35.5 million overnight stays in Portugal, which represents 25.4 million. 

If we only take into account the five major markets, which are the UK, Germany, Spain, France, and the US, together they account for 14.4 million overnight stays in Portugal.

In global terms, Portugal has seen a 4.5% increase in overnight stays at tourist accommodation establishments. This growth is reflected in a 12.3% rise in total revenue from hotel establishments and a 12.1% increase in room revenue.

This robust growth in the tourism sector is not only bolstering Portugal's economy but also enhancing its appeal as a destination for long-term visitors and expatriates. A key factor contributing to this appeal is Portugal's impressive standing in English proficiency. Remarkably, Portugal ranks among the top ten countries globally for English proficiency among non-native speakers, making it the only country in Southern Europe to achieve such high levels. This linguistic advantage significantly reduces language barriers, making Portugal an even more attractive destination for English-speaking tourists and potential residents alike.

The combination of a thriving tourism sector, strong economic growth, and high English proficiency creates a favourable environment for international investment. As more visitors, particularly from English-speaking countries like the United States, discover Portugal's charms, opportunities in various sectors – from real estate to hospitality – continue to expand.

For those looking to capitalise on Portugal's current economic momentum and growing international appeal, navigating the local regulations and tax strategies is crucial. Expert guidance can be invaluable in ensuring the success of any investment in this dynamic market. At Belion Partners, we specialise in providing the necessary legal and accounting services to help investors make the most of these promising opportunities. 

Our expertise can help you navigate the complexities of investing in Portugal's promising market, allowing you to benefit from the country's economic growth and increasing popularity among international visitors. Contact us; we are here to offer you, our help.