The rise in interest rates has made it impossible for many to take a vacation and the increase in prices in the Algarve has pushed several Portuguese to cheaper vacations in Spain, North Africa or Albania, for example.
There is an increase of almost 9% in foreign tourists arriving in Portugal. Canadian arrivals alone are up more than 36% on last year and American arrivals are up 22%. Most overnight stays continue to be booked in the Algarve, but it is precisely in this region that the biggest drop is noted.
It is now the only area that has fewer visitors than before the pandemic. The drop in the national market is therefore being particularly felt in the Algarve.
At the beginning of the year, numbers started well, but bookings for the summer turned out to be far below expectations. There are shortfalls of almost 7%.
The rise in interest rates has made it impossible for many to take a vacation and the increase in prices in the Algarve has pushed several Portuguese to cheaper vacations in Spain, North Africa or Albania, for example.
Hoteliers say it’s not just the price and call for a change of rules in the financing of tourism regions.
Unlike the Algarve, the rest of the country is experiencing higher demand from tourists than before the pandemic. The north alone grew by more than 17%.
In general, however, the second half of the year is seeing a slowdown in demand, contrary to what happened at the beginning of the year.
