Portugal’s tourism sector faces ‘promising summer’

Tourism professionals are expecting a promising summer for Portugal, with international demand growing faster than domestic demand, led by the United States, according to the latest IPDT Tourism Barometer, published this Thursday.

Seven out of 10 respondents believe that “the international market will see an increase in the number of tourists, overnight stays, revenue and revenue per available room (RevPar) in the coming months,” according to the findings of the 71st edition of the Economic Barometer. Tourism prepared by IPDT – Institute of Tourism Planning and Development.

The survey, conducted between March 26 and April 2 this year and with a total of 51 valid responses, also notes that the North American market will lead growth in Portugal’s top destination markets, as seen in previous editions. .

Regarding the evolution of the domestic market, the barometer forecasts growth in tourism revenues and RevPar.

The average level of confidence in tourism performance reached 84.2 points in March this year, the second highest value observed since April 2016.

The last six editions of the Tourism Barometer have shown an increase in the indicator and a recovery in the level of confidence in the sector during the post-Covid-19 pandemic, and since the May 2022 edition the confidence level has been above 80 points.

Despite a change in Portuguese government creating “some uncertainty” as well as an “international military context”, the commissioners are confident that demand will grow, especially in overseas markets.

At the same time, the surveyed professionals are confident that the choice of tourists this summer will fall primarily on the “Sun and Sea” product, followed by “Gastronomy and Wine” and “Culture”.

Based on the commission’s proposals, a “TOP 5” of priorities was developed that should be considered by the new government led by Luis Montenegro, with more than 60% of experts naming tax relief as the top priority to be adopted.

According to the Tourism Barometer, four out of 10 members stressed the need for the government to make a decision on the location of Lisbon’s new airport.

According to the study, “number of people employed”, “external tourism demand” and “tourism activity” are the indicators with the greatest growth trend.

The “optimistic scenario” for the labor market and tourism sector will “make a positive contribution” to the growth of the national economy, he adds.

On the other hand, “public investment” is expected to decline in the coming months, with 80% of respondents believing that this figure could maintain or even decline.

The barometer shows that eight out of 10 respondents believe the North American market will increase its representation as a tourism market in the summer of 2024 in Portugal.

Following this feeling of “sharp growth” are the markets of Canada, Brazil and Spain.

In turn, the Japanese and Italian markets are expected to maintain performance similar to the same analyzed periods, while in the case of the German market, 30% of surveyed specialists foresee the possibility of a slight decline.