The number of guests and overnight stays exceeded pre-pandemic levels for the first time

According to INE, the tourist accommodation sector recorded 30.0 million guests and 77.2 million overnight stays in 2023, up 13.3% and 10.7% from 2022 and exceeding pre-pandemic levels for the first time.

According to preliminary data from the National Institute of Statistics (INE), the 30.0 million guests and 77.2 million overnight stays recorded in 2023 are 10.7% and 10.0% higher than in 2019, respectively.

Compared to 2019, the Algarve was an exception as it was the only region not to reach pre-pandemic levels, with a 2.5% decrease in overnight stays.

In contrast, the largest increases were observed in the Autonomous Region of Madeira (+23.4%), Northern (+22.8%), Autonomous Region of the Azores (+18.1%) and Alentejo (+14.8%).

In the opposite direction of overnight stays, the total number of guests staying overnight at tourist accommodation properties in the Algarve increased – by 1.4% – compared to 2019, reflecting a decrease in average length of stay of 3.8%.

INE clarifies that overseas markets recorded a larger decline in average length of stay (-4.2%), resulting in a 3.0% increase in the number of guests and a 1.2% decrease in the number of overnight stays.

“In other words, foreign visitors, although in greater numbers compared to 2019, stayed in the Algarve for a shorter period,” he explains.

Resident guests, in turn, in addition to being fewer than in 2019 (-2.8%), also had a shorter average length of stay (-3.7%), which led to a decrease in the number of overnight stays by 6.4%.

A more detailed analysis of the Algarve region by INE for the period 2019-2023 shows that it has always remained the top national tourist destination in terms of overnight stays, despite a decline in its market share of 3.4 percentage points. during this period (29.8% of total overnight stays in 2019 to 26.4% in 2023).

In terms of number of guests, it remains the third largest national destination (17.1% of total guests; 18.7% in 2019) after the Lisbon Metropolitan Area (29.3%; 30.3% in 2019) and the North (23 .2%; 21.6%). in 2019).

According to the statistical institute, January 2023 was the first month since the start of the pandemic to see an increase in overnight stays in the Algarve (+1.2% compared to January 2019), starting from that month “with a growth trajectory that continued until April “

However, May to September saw a sequential decline in overnight stays compared to 2019, with a focus on August (-7.6%), June (-7.4%) and September (-6.6%).

The fourth quarter of the year again recorded growth compared to 2019, with more pronounced growth in October (+7.3%) and November (+4.6%).

Thus, in the first and fourth quarters of the year, overnight stays increased respectively by 2.7% and 5.6% compared to 2019, and in the second and third quarters they fell by 2.4% and 6.8%, with a decrease in the third quarter ( -615.0 thousand overnight stays compared to 2019), the high season “became decisive for the observed annual dynamics.”

An analysis of tourism markets showed that the 10 countries with the largest presence in the Algarve accounted for 87.5% of overnight stays by non-residents in the region in 2023, with the main market, the UK, accounting for 37.0%. overnight stays for non-residents – a decrease of 1.8% compared to 2019, to 5.8 million overnight stays.

German overnight stays (11.4% of the total) fell by 4.4% to 1.8 million, followed by the Irish market, which grew by 16.5% to more than 1.6 million overnight stays. North American and Canadian markets grew by 70.3% and 26.9%. respectively.

In 2023, the net bed occupancy rate in the Algarve was 49.2%, 0.9 percentage points lower than in 2019, with average revenue per occupied room (ADR) reaching €120.7, above average nationally (113.1 euros) and lower than in Lisbon. Capital Region (€136.8), the region where the highest ADR was achieved.