Algarve overnight stays down

The number of tourists and nights stayed in hotel and guest house accommodation in the Algarve in June fell below expectations.

In fact, it was the only region in the country that registered overnight stays that fell below 2019 levels.
The fall was essentially from Portuguese tourists who have been hard hit by inflation and higher interest rates.
However, the Hotels Association of Portugal (AHP) highlights that the “reduction is being offset by an increase in the average prices applied”, while the Association of Hotels, Restaurants and Similar of Portugal (AHRESP) says that the Algarve may be “shaking off its reputation as a cheap holiday destination” and this can only happen with “less overnight take-up pressure”.
In June, the Algarve posted 2.26 million overnight stays, retaining its position as the country’s main tourism region in the summer months.
Nevertheless, this number was 7% down on June 2019 before the pandemic. While all other regions exceeded the numbers seen before the pandemic, the Algarve region continues to lag behind according to the latest statistics released by the National Statistics Institute (INE).
“This fall in overnight stays in the region is being offset by the higher prices being applied in the region that have risen substantially”, says Cristina Siza Vieira, Vice President of the Hotels Association of Portugal (AHP) who considers that the “balance for the first half was, in fact, frankly positive”.