Portugal’s Tourism Industry Thrives in a New Era of Growth

The latest Economic Impact Research (EIR), developed in collaboration with Oxford Economics, forecasts that Travel & Tourism will contribute an impressive €62.7 billion to Portugal’s economy in 2025. This figure represents 21.5% of the nation’s GDP, nearly 38% higher than the previous peak in 2019.

Employment within the sector is also set to rise, supporting around 1.2 million jobs—almost one in every four positions nationwide. That’s approximately 200,000 more jobs than the industry’s last high point.

International visitor spending is expected to grow to €33.1 billion, while domestic travel spending is projected to hit €22.9 billion. These figures represent a significant increase of 24.2% and 59.5% respectively over 2019 levels, underscoring robust demand from both international and local travelers.

2024: A Record-Setting Year

These strong 2025 projections follow a landmark year in 2024, when Portugal’s Travel & Tourism sector reached new heights. The industry contributed €60.6 billion to the national economy — equal to 21.3% of GDP — and supported 1.2 million jobs, making up nearly 23% of total employment. Visitor spending also hit all-time highs in 2024, with international tourists spending €31.8 billion and domestic travelers contributing €22.2 billion.

Looking Toward 2035

The long-term forecast from WTTC paints an even brighter picture. By 2035, Portugal’s Travel & Tourism sector is expected to contribute over €74.6 billion to GDP — roughly 22.6% of the national economy. The sector is projected to support 1.4 million jobs by then, emphasizing its role as a key driver of economic growth and social progress. International visitor spending could reach €40.6 billion, while domestic tourism is forecast to contribute €25.8 billion.

Portugal in the European Context

Across the European Union, the Travel & Tourism sector made a major impact in 2024, contributing nearly €1.8 trillion to the region’s GDP — more than 10% of the EU economy and up 6% from 2019. Employment in the sector grew by 4.7% year-on-year, reaching 24.6 million jobs and accounting for one in every nine jobs in the region. By the end of 2025, WTTC expects the EU Travel & Tourism industry to generate €1.9 trillion, with total employment reaching 25.7 million — equivalent to 12% of the regional workforce.