The Algarve rounded off the 2025 tourism year with a bang, celebrating record revenue, a boost from the domestic market and a historically low dependence on seasonal tourism.
According to figures released for the year, tourist accommodation in the Algarve generated roughly €1.8 billion in total revenue, marking a 6.5% increase over 2024 and setting a new historic high for the destination’s earnings.
In a statement to the press, the Algarve’s tourism board (RTA) said the surge confirms the success of the region’s strategy of focusing on higher-value tourism, improving the quality of what it has to offer and enhancing visitor experience – with notable gains in revenue per available room.
One of the standout trends of the year was the strengthening of the domestic market. Algarve accommodation units recorded around 4.8 million overnight stays by Portuguese residents, up 3.2% on the previous year. This played a key role in helping reduce seasonality by generating demand outside the traditional summer peak.
In total, the region logged 20.8 million overnight stays in 2025, maintaining its position as Portugal’s top tourism destination, with a modest overall increase of 0.4% compared to 2024. Non-resident visitors accounted for around 16 million of those nights, showing how important they are to the overall numbers. Guest numbers in 2025 reached 5.3 million in the Algarve, up 1.8% overall, with 1.4 million resident and 3.8 million non-resident visitors.
Average length of stay held steady at nearly four nights (3.9), keeping the Algarve near the top of Portuguese regions for trip duration – only behind Madeira in this metric. Room occupancy also remained stable at 58.4%.
Financial indicators also show growth: revenue per available room (RevPAR) climbed to €78.5 (+5.5%) and average daily rate (ADR), meaning the average revenue earned for an occupied room on a given day, hit €134.4 (+6%), evidence of stronger pricing power alongside steady demand.
For RTA president André Gomes, the 2025 results show “a structural evolution of the destination”.
“The Algarve is today reaping the rewards of a consistent strategy of diversification and qualification of its tourism activity,” said Gomes, highlighting that the Algarve achieved its lowest levels of seasonality ever, with just 38.1 % of guests and 40.8 % of overnight stays concentrated in the traditional high season – a sign that demand is spreading more evenly through the year.
Taken together, the 2025 figures portray the Algarve as a “mature and resilient tourism destination,” one that is increasingly capable of growing revenue, retaining visitor interest year‑round and reducing dependence on a narrow summer peak, all while positioning itself for sustainable future development, the RTA adds.
