Tourism Development in: Portugal

Posted by Jude Buttle on Wednesday, September 03, 2008

A great climate and wonderful beaches makes Portugal a popular tourist destination, but with alternative locations more obtainable and tourism trends taking a turn, we ask, has Portugal lost its appeal?

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Tourist Performance

Portugal is one of the world's top 20 destinations but has recently slipped in the pecking order and has been overtaken by countries such as Turkey, Hungary, Thailand and Malaysia.

Tourism is one of the main sectors of the Portuguese economy, responsible for about 8% of the national product and around 10% of the total employment.

In addition, the receipts from tourism contribute substantially in financing the current account deficit of the balance of payments in Portugal. Current revenues from tourism represent €6.3 billion Euros, equivalent to 11% of the nations GDP.

Although tourism figures have grown over recent years, Portugal has lost market share at international level and is currently highly dependent on four international markets - the UK, Spain, Germany and France - which make up 60% of international visitors and 67% of revenues.

The number of international tourists has grown at a slower rate than the growth rate of domestic tourism.

In 2005 2.4 million national residents went on holiday in Portugal, representing a growth of 7.1% in comparison with the previous year. In the same period, a total of around 12 million tourist visited Portugal, recording a 3% growth in comparison with the previous year.

Types of Tourism

The coastal areas of Portugal, such as the Algarve and Estoril, attract tourists with the lure of glorious sunshine, inviting beaches and numerous leisure options, such as great golf courses, healing health and wellness facilities and wonderful water-sport activities.

These types of locations tend to suffer from seasonality, where they are extremely busy during the summer months, but quiet during the winter periods. Conversely, cites such as Lisbon and Porto appeal more to the visitor who is looking for a short city break and more interested in the history, culture and architecture of a place.

Tourism Initiatives

Consumer trends suggest that tourism will enjoy future growth, fostered by developments of short breaks, an increase in the number of adults and senior citizens that travel and the desire of tourists for diversified experiences.

The Portuguese government have plans in place to increase the country's appeal by focusing on the key factors that differentiate Portugal from other competing destinations.

These four factors are ‘climate and light,' ‘history, culture and tradition,' ‘hospitality' and ‘concentrated diversity.' Also in development is an initiative to develop the country's infrastructure, transport links and air access, as well as modernizing hotels and similar accommodations and improving the service skills of the staff, making it far more amenable and accessible to visit Portugal

Main Tourist Regions

Portugal relies heavily on the tourism performance of three main regions, the Algarve, Lisboa and Madeira, who combined are responsible for more than 85% of international overnight stays in hotels and similar establishments.

The Algarve

The Algarve is Portugal's most visited region and a firm favourite with British holidaymakers, as well as being a big attraction for Spanish, German and French tourists.

Located in the southernmost part of Portugal, the Algarve is famous for its year round sunshine, stunning landscapes, beautiful beaches and first-class golf facilities.

Lisboa

Lisboa's main tourism product is the City break, characterized by short and weekend stays.

Just outside Lisbon, sits the seaside resort of Estoril and the romantic hills of the Serra de Sintra, where the bond between palaces and nature led to the area being classified as a world heritage site.

Lisboa is a region of significant importance in industry (light and heavy), services and agriculture.

Madeira

Madeira is extremely popular with British and German tourists, who are responsible for around 60% of international overnights in the region.

Madeira lies 1000 km southwest of Lisbon and 800 km from the coast of Africa, offering the delights of a subtropical climate.

An archipelago of volcanic origins, it consists of the island of Madeira (the largest and more populated, with its capital in Funchal), the island of Porto Santo, and two groups of uninhabited islands: the Desertas and the Selvagens (bird sanctuaries).

Conclusion

For so long a country that took for granted the influx of tourists, but now the choice for travel destinations has grown and Portugal knows it needs to improve its approach.

It has the necessary ‘raw materials' - climate, natural and cultural resources - to consolidate and improve upon its tourist trade and with a strategic tourism plan in place, it shouldn't be long before Portugal is back up there where it belongs, as one of the main tourist destinations in the world.

Search for property in Portugal

If you are looking for Portuguese property for sale, such as villas, apartments or other types of real estate, why not check out TheMoveChannel.com Portugal, which has a large number of listings from Portuguese estate agents and developers selling properties in areas such as the Algarve, Lisboa or Madeira: http://portugal.themovechannel.com/

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