Algarve Tourism Revenue Hits New Record, Surpassing All of 2024

• 15 December, 25

According to the latest data from Portugal’s National Statistics Institute (INE), the Algarve recorded €1.71 billion in tourism revenue during the first ten months of 2025 — a 9.3% increase year-on-year, already exceeding the total revenue for all of 2024. As the nation’s second-highest revenue-generating tourism destination (after Greater Lisbon), the Algarve continues to strengthen its central role in Portugal’s tourism landscape.

October Shows Strong Accommodation Performance, Driven by Domestic Growth

In October, the Algarve maintained its strong momentum in the accommodation sector:

• Over 2 million overnight stays, representing 26.7% of Portugal’s total — the highest in the country
• Domestic overnight stays increased 11.6%, marking a strong rebound in local demand
• Non-residents accounted for 86% of overnight stays, confirming the region’s solid international appeal

According to the latest INE statistics, the Algarve continued to show strong tourism performance. The region welcomed 526,000 guests in total (+1.9%), with resident visitors increasing 2.5% and non-resident travellers rising 1.7%. The Algarve also recorded an average stay of 3.94 nights — the second highest in Portugal and significantly above the national average of 2.51 nights. Hotel room occupancy reached 63.9%, sustaining the area’s solid performance throughout October. These tourism indicators reinforce the Algarve’s position as one of Portugal’s most competitive regions for long-stay tourism and holiday travel.

Algarve Tourism Board: A Strong and Sustainable Growth Market

André Gomes, President of the Algarve Tourism Board, noted that the results demonstrate the region’s “remarkable resilience and sustained high attractiveness.”

He highlighted that the strong growth in domestic demand, the leading share of national overnight stays, and the outstanding revenue performance all underline the Algarve’s position as a “stable, competitive, and continuously value-enhancing destination.”

Gomes also shared an optimistic outlook for 2025: “These results reinforce our confidence in a stronger and more sustainable tourism year ahead.”

Boutique Hotel Investment Spotlight: Mercan Group — Hotel Indigo Albufeira

Hotel Indigo Albufeira, developed by Mercan Group and opened in April 2025, is a four-star boutique hotel in one of the Algarve’s most sought-after destinations. Operated under IHG’s Hotel Indigo brand and professionally managed by AHM, the property offers 80 rooms, a strong Booking.com rating of around 8.6, and an impressive first-season occupancy above 70%.

Hotel California is the cornerstone asset of Mercan Fund II, demonstrating Mercan’s operational strength and high guest satisfaction standards. Beyond this flagship property, Mercan Group already has more than 14 hotels open across Portugal under leading international brands — a robust track record that gives investors confidence in both performance and long-term stability.

Plan your Portugal holiday with Mercan Asia – Global Investment Center for International investors and Partners.

Cre: The Portugal News