The Algarve tourist accommodation sector remained strong by 2024, with growth in the main indicators, but still with challenges. Albufeira and Portimão stood out among the most sought after municipalities, with Portimão registered a 7.6% growth in the number of overnight, while Albufeira, despite leading in the region, suffered a slight drop of 0.7% and remains below the Prepandy levels (-9.5% compared to 2019), according to data from the National Institute of Statistics (INE).
Growth of Tourism in the Algarve in 2024
INE’s preliminary data reveal that by 2024, the tourist accommodation sector in Portugal received 31.6 million guests and registered 80.3 million overnights, increasing 5.2% and 4.0%, respectively, compared to 2023 .
In the Algarve, Albufeira remained as the second municipality with the most slept at national level, with 7.7 million overnight and a weight of 9.6% in the total of the country. Already Portimão, one of the most sought after destinations in the region, presented a solid growth of 7.6%, consolidating his position as one of the ten municipalities with the most sleep in Portugal.
Among the factors that influenced the growth of the sector, there is an increase in demand from foreign tourists, with non-residents growing 4.8% at national level, contrasting with the 2.4% increase in the sleeping of residents.
Average recipes and prices in the Algarve
The Algarve also stood out in the recipe indicators per room. The average yield by busy room (ADR) reached 126.9 euros, the second highest in the country, just behind Greater Lisbon (150.4 euros).
In addition, Loulé registered one of the highest ADR values in the country, with 155.6 euros, only surpassed by Cascais (159.0 euros) and Lisbon (154.6 euros).
Total profits from the sector reached 6,700 million euros across the country, a growth of 10.9% compared to 2023. However, the note a slowdown on profit growth compared to the strong increase recorded by 2023.
Tourism in the Algarve continues to rise, but with challenges
The data confirm the continuation of the recovery and growth of tourism in the Algarve, with municipalities such as Portimão to record significant increases in the porch, while Albufeira faces difficulty returning to the pre-pound numbers.
With external markets to dominate the region and average prices for room among the highest in the country, the Algarve remains one of the most sought after tourist destinations in Portugal, but with challenges to overcome, namely the total recovery of the levels prior to pandemic and the diversification of tourism throughout the year.
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