Tourism Revenue Reaches Record Highs – August 2024

Between January and August 2024, tourism activity grew both in overnight stays and in revenue. Overnight stays rose by 4.1% to a total of 55.1 million, driving total revenue up by 10.5% and accommodation revenue by 10.4%.

This growth is largely due to the increase in the number of guests and overnight stays in August, which produced an all-time high in revenue.

Below are some of the figures presented in the INE report on tourism activity in August 2024.

Guests, overnight stays and average length of stay:

In the month under review, tourism activity showed a broad-based increase across all types of accommodation – (1) tourist accommodation establishments; (2) campsites; (2) holiday camps and youth hostels – with more guests, more overnight stays and higher revenue, although the average length of stay fell.

• 4.3 million guests (+5.4%);
• 12.6 million overnight stays (+3.2%);
• 2.92 days average stay (-2.1%).

The increase in the number of guests and overnight stays was seen across all types of accommodation:

• Tourist accommodation establishments: 3.8 million guests (+5.9%) and 10.5 million overnight stays (+3.8%), with an average stay of 2.8 nights (-2%).
• Campsites: 512,700 campers (+2.4%) and 2 million overnight stays (+0.2%), with an average stay of 3.8 nights (-2.1%).
• Holiday camps and youth hostels: 53,000 guests (-0.3%) and 143,300 overnight stays (+1.2%), with an average stay of 2.7 nights (+1.5%).

Revenue achieved in August:

As a result, revenue reached record levels, reversing the slowdown seen until then. Total revenue rose by 7.8% to 904.1 million euros, while accommodation revenue increased by 7.7% to 765.5 million euros.

Revenue in accommodation establishments, monthly year-on-year rate of change in 2024 Source: INE (2024)

Revenue by accommodation segment:

This rise in revenue was seen across all 3 accommodation segments:

• Hotels: increases of 7.0% in total revenue and 6.8% in accommodation revenue (representing 84.7% and 83.1% of total revenue and accommodation revenue, respectively, for tourist accommodation as a whole);
• Local accommodation: increases of 11.7% in total revenue and 11.8% in accommodation revenue (representing 10.1% and 11.5% of total revenue and accommodation revenue, respectively, for tourist accommodation as a whole);
• Rural and historic house tourism: growth of 14.1% in total revenue and 13.8% in accommodation revenue (representing 5.2% and 5.4% of total revenue and accommodation revenue, respectively, for tourist accommodation as a whole).

Share of accommodation segments in total revenue and accommodation revenue Source: INE (2024)

Revenue by region:

The regions that contributed most to this growth were the Algarve (36.6% of total revenue and 36.4% of accommodation revenue), Greater Lisbon (20.2% and 20.9%, respectively) and the North region (14.4% and 14.5%, respectively).

Although these stand out, every region recorded increases in revenue, with the strongest growth in the Azores (+23.4% in total revenue and +24.7% in accommodation revenue) and the Alentejo (+12.6% and +11.3%, respectively).

Regions that contributed most to revenue growth Source: INE (2024)

RevPAR and ADR by region:

Every region except Oeste e Vale do Tejo and Greater Lisbon recorded all-time highs in RevPAR and ADR in August.

• RevPAR: rose to 113.8 euros (+5.0%), with the Algarve reaching the highest value (168.3 euros), followed by the Azores (124.6 euros) and Greater Lisbon (122.2 euros). The largest increases were in the Azores (+17.3%) and the Alentejo (+10.1%).
• ADR: reached 153.3 euros (+4.1%), with the highest value in the Algarve (205.7 euros), followed by the Alentejo (162.5 euros). The largest increases were in the Azores (+14.2%) and Madeira (+11.8%).

Most visited municipalities:

The municipalities of Lisbon, Albufeira and Porto recorded the highest number of overnight stays in August.

Porto and Ponta Delgada were, however, the municipalities with the strongest growth (6.9% and 6.5%, respectively).

Overnight stays in tourist accommodation establishments in August – main municipalities and guest origin Source: INE (2024)

Source: INE (October 2024). Proveitos da Atividade Turística Registaram Máximos Históricos em Agosto. Estimativas Rápidas da Atividade Turística em Agosto de 2024.

Terms used in this article:

Total revenue – revenue from the activity of tourist accommodation providers: accommodation, food and beverage and other revenue arising from the activity itself.

Accommodation revenue – revenue from the overnight stays of all guests in tourist accommodation.

RevPAR (Revenue Per Available Room) – revenue per available room.

ADR (Average Daily Rate) – revenue per occupied room.