The National Institute of Statistics (INE) reported 5.8 million guests and 13.6 million overnight stays from January to March.

Year-on-year growth reached only 1.5% for guests and 1.3% for stays, compared to 2.9% and 1.9% from the previous quarter. Hotels and rural tourism grew, while local accommodation fell 2.8%.

Dependence on international markets

This loss of momentum increased dependence on international markets, now accounting for 68% of total overnight stays. After five quarters of resident growth, the non-resident growth rate again exceeded that of the domestic market.

Foreign citizens totalled 9.2 million overnight stays, up 1.4% for a second consecutive quarter. Overnight stays by residents rose only 1.2% (4.3 million), continuing the slowdown since summer 2025, sharply below the previous 4.2% increase. Over 71% of the quarterly increase was generated by foreign citizens.

Heterogeneous distribution

However, dependence on foreign tourism is not evenly distributed across the country, being particularly evident in the Madeira, Algarve, and Greater Lisbon regions. Madeira leads this indicator, with foreigners accounting for 85.9% of overnight stays, heavily exposed to the German market.

This is followed by the Algarve, with 80.9% external dependence and a strong concentration in the British market, and Greater Lisbon, with 78.6%. At the opposite extreme, the Central and Alentejo regions stand out as the least dependent on non-residents.

In terms of overall regional growth, the most positive dynamics in the quarter were observed in the North and Alentejo, while the most significant decreases were recorded in the West, the Tagus Valley, and the Setúbal Peninsula.

Main foreign market

At the source market level, the United Kingdom remained the main foreign market for Portugal, accounting for 15.6% of overnight stays, a slight decrease of 1.1%. Germany remained in second place, closely followed by the United States.

The standout performer of the quarter was the Canadian market, which surged 10.6%, consolidating its acceleration for the second consecutive quarter. Conversely, the French market experienced the largest decline among the major source markets, with a 10.4% drop, accentuating the downward trend observed in recent months.

Strong sector

Despite lower overnight stay volumes, the sector's profitability remained strong, demonstrating the financial resilience of the national hotel industry. Total revenue from tourist accommodation reached one billion euros, representing solid growth of 5.5%, in line with the previous quarter.

The average revenue per available room (RevPAR) stood at €41.5, driven by Madeira and Greater Lisbon.

The average daily rate (ADR) also maintained an upward trajectory, reaching €93.8 nationwide, with Greater Lisbon posting the highest value in the country, confirming that the sector continues to be able to charge more per occupied room.