Albufeira stood out as second destination in Portugal with highest number of overnight stays
The Algarve has again asserted itself as “Portugal’s leading tourist destination” in June, with 2.4 million overnight stays and €218 million in revenue from tourist accommodation establishments, according to data released this week by the National Statistics Institute (INE). The region recorded the largest national share, representing 29.4% of total overnight stays and 29% of total revenue recorded in the country.
The number of guests increased by 1.5% compared to the same month last year, totalling 608,000 tourists, with growth in both the domestic market (+0.7%, to 167,000 guests) and the international market (+1.7%, to 441,000 guests).
Overnight stays recorded a year-on-year growth of 2.3%, driven mainly by tourists residing in Portugal (547,000 overnight stays, +5.5%) and also by non-residents (1.8 million overnight stays, +1.4%).
Among the main municipalities, Albufeira stood out as the second destination with the highest number of overnight stays in the country (897,000 overnight stays, equivalent to 11.1% of the national total), just behind Lisbon. Lagos and Portimão recorded the highest growth for the month, with significant increases in demand from residents.
The average stay in the Algarve was 3.91 nights, above the national average of 2.59 nights, “confirming the region’s attractiveness for extended stays”, said the Algarve Tourism Board.
In economic terms, the Algarve was also the region with the largest contribution to tourism revenue, with growth of 7.5% compared to June 2024. The average revenue per occupied room (ADR) reached €148.73, while the revenue per available room (RevPAR) stood at €103.54.
“Consolidated growth” in first half of year
In the first half of 2025, the tourist accommodation sector in the Algarve recorded 2.3 million guests (+1.7% compared to the same period last year), 8.7 million overnight stays (+0.3%) and around €650 million in total revenue, representing significant growth of 5.5%.
According to the Algarve Tourism Board, “these results confirm the positive evolution of the destination, with emphasis on growth in value, which proved to be significantly higher than growth in volume. The increase in revenue reflects the sector’s greater capacity to generate income, signalling a strengthening of the quality of the offer and the profitability of tourism in the region”.
Additionally, the tourism board reveals, Faro Airport handled 7% more passengers in the first half of the year, recording the highest growth among airports on the mainland.
