The Algarve once again confirmed its position as Portugal’s top tourist destination, welcoming 597,700 guests and 2.38 million overnight stays in September. According to the latest data from the National Institute of Statistics (INE), the region maintained a strong 27.9% share of all national overnight stays, reinforcing its dominance in Portuguese tourism.
Strong results despite global challenges
Although the Algarve recorded a slight year-on-year decrease in visitors (-1.7%) and overnight stays (-2.2%), this minor drop was mainly due to a reduction in international demand. Domestic tourism, on the other hand, continued to grow and sustain the region’s performance at the close of the summer season.
Total revenue from tourist accommodation in September reached €232.3 million, reflecting a 4.4% increase compared to the previous year. This rise confirms the region’s resilience and the Algarve’s crucial role in the country’s tourism economy.
High occupancy and excellent revenue per room
The average length of stay in the Algarve stood at 3.98 nights, the second highest in Portugal, just behind Madeira. The average daily rate (ADR) climbed to €151.90, up by 5.9% year-on-year and again the second highest in the country, only surpassed by Greater Lisbon.
Meanwhile, the room occupancy rate was 72.8%, a marginal decline of 1.3 percentage points compared to September 2024 — a sign of stability in a period marked by shifting international travel trends.
Positive balance for the summer quarter
Despite small fluctuations in September, the summer quarter (July to September) showed a strong overall performance. The total number of guests increased by 1.7%, with growth among both residents (+3.3%) and non-residents (+1.0%).
Overnight stays rose by 0.4%, driven mainly by Portuguese holidaymakers (+3.0%), who compensated for the slight drop in international travellers (-0.7%). The average stay during the quarter was 4.17 nights, while the occupancy rate reached 75.8%.
Even with minor declines in some indicators, the region’s tourism revenues jumped by 6.6%, and the ADR grew by an impressive 7.1%, highlighting the Algarve’s enduring appeal and strong economic results at the height of the season.
Algarve: Portugal’s favourite destination
From its golden beaches and award-winning resorts to its golf courses, gastronomy, and authentic charm, the Algarve continues to set the standard for tourism in Portugal. With strong domestic demand, rising revenue, and consistent visitor satisfaction, the region is well-positioned to maintain its leadership throughout 2025.