Higher-value visitors and reduced seasonality strengthen the region’s position

The Algarve closed 2025 with record tourism revenue, generating around €1.8 billion from tourist accommodation, a 6.5% increase compared to 2024 and the highest level ever recorded in the region.

According to the Algarve Tourism Board (RTA), the results reflect the success of a long-term strategy focused on attracting higher-value tourism, improving quality and enhancing the visitor experience. This approach has contributed to stronger financial performance across the sector, including notable gains in revenue per available room.

One of the standout trends was the continued growth of the domestic market. Algarve accommodation recorded around 4.8 million overnight stays from Portuguese visitors, an increase of 3.2% compared to the previous year. This growth has played an important role in reducing the region’s dependence on seasonal demand.

In total, the Algarve registered 20.8 million overnight stays in 2025, maintaining its position as Portugal’s leading tourism destination. This represents a modest overall increase of 0.4% compared to 2024. Non-resident visitors accounted for around 16 million overnight stays, highlighting the continued importance of international markets.

Guest numbers reached 5.3 million in 2025, an increase of 1.8% overall. Of these, 1.4 million were resident visitors and 3.8 million were non-residents. The average length of stay remained stable at 3.9 nights, placing the Algarve among the top Portuguese regions for trip duration, behind only Madeira. Room occupancy also remained steady at 58.4%.

Key financial indicators showed positive growth. Revenue per available room rose to €78.5, an increase of 5.5%, whilst the average daily rate reached €134.4, up 6%. These figures reflect stronger pricing alongside consistent demand.

The results also highlight a structural shift in the Algarve’s tourism model. The region recorded its lowest level of seasonality to date, with just 38.1% of guests and 40.8% of overnight stays concentrated in the traditional summer high season. This indicates that demand is becoming more evenly distributed throughout the year.

Taken together, the figures confirm the Algarve’s position as a “mature and resilient tourism destination”, capable of sustaining growth whilst strengthening its appeal year-round, according to RTA president André Gomes.

Source: Article originally published by Michael Bruxo on The Resident.

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