Portugal’s Travel and Tourism Industry Is on Target To Break Records in 2023

Portugal’s travel and tourism industry is powering its way toward a record year in 2023.

The latest Economic Impact Research data from the World Travel & Tourism Council (WTTC) shows that by the time this year comes to a close, the country’s tourism industry will have likely exceeded its 2019 peak.

More specifically, the report says Portugal’s tourism industry will contribute some 40.4 billion euros to the economy, which amounts to about $45.4 billion. By contrast, at its height in 2019, Portugal’s tourism economy generated about 40.1 billion euros or $45.06 billion.

Job creation within Portugal’s tourism industry is also barreling along. The WTTC forecasts that about 30,000 jobs will have been created this year, which is about 68,000 shy of 2019 employment levels within the country’s tourism industry. In total, the industry is expected to employ about 950,000 people in Portugal this year.

The robust growth data aligns with information shared earlier this year by Portugal’s Secretary of State for Tourism, Nuno Fazenda.

During a visit to the United States, Fazenda told TravelPulse that Portugal’s tourism industry is steadily rebounding following the COVID-19 pandemic.

The Journey to Recovery
It’s been a steady few years of dogged growth for the travel industry in Portugal. Last year, the sector’s GDP contribution grew by a whopping 61.6 percent to reach nearly 38 billion euros or $42.7 billion. That figure amounted to about 15.8 percent of the country’s economy.

Last year also saw important steps forward in Portugal’s travel industry’s job growth, with some 83,000 new jobs added to reach 921,000 jobs in total. The latest reports from the global tourism body show that the sector has now recovered to more than 90 percent of the pre-pandemic level of jobs.

International travelers also began flocking back to Portugal last year to explore the country and its many attractions. Spain leads as a source of international visitors for Portugal at 16 percent followed by France (12 percent), UK (11 percent), and Germany and U.S. (both 8 percent).

When speaking with TravelPulse in May, Fazenda said U.S. travelers are rapidly becoming one of Portugal’s most important segments and have grown to be the fourth largest source of visitors.

Data provided by Fazenda showed that the number U.S. visitors to Portugal increased 27 percent in 2022 and spending by American travelers grew by 51 percent. During the first few months of 2023, the increase in U.S. visitors continued unabated. For just January through February, the number of U.S. visitors to Portugal increased 26 percent over 2019 figures.

International visitor spending overall in Portugal for 2022 contributed €21.7 billion ($24.3 billion) to the country’s economy, representing a striking year-on-year growth of 80.4 percent—which was just 7.7 percent behind 2019 levels.

“The travel and tourism sector in Portugal is recovering strongly with high visitor demand. The future for the sector is very optimistic. By the end of this year, the sector’s contribution will surpass 2019 levels, and over the next decade, growth will outstrip the national GDP and create 248,000 new jobs, representing one in four jobs,” Julia Simpson, WTTC president and CEO, said in a statement.

The Decade Ahead
The global tourism body is forecasting even more good news in the coming years for Portugal. The country’s tourism-related GDP contribution may even increase to €56.4 billion (more than $63 billion) by 2033. Should that come to pass, it would represent more than one-fifth (21.1 percent) of the Portuguese economy.

In addition, more than 1.2 million people will likely be employed by Portugal’s tourism industry across the country, which would amount to about one in four people working in the sector.