Tourism sector expects strong summer despite more cautious travellers

Portugal’s tourism industry is forecasting another strong summer season, although business leaders warn that travellers are becoming “more price-conscious and selective amid rising costs and ongoing geopolitical tensions”.

Industry associations told Lusa that bookings for the peak season remain in line with or above last year’s levels, but operators expect a more challenging environment as consumers scrutinise costs, compare options more carefully and delay purchasing decisions.

Cristina Siza Vieira, executive vice-president of the Portuguese Hotel Association (AHP), said June’s performance pointed to a “positive, but more demanding” summer.

“Bookings exist and are in line with or above 2025 levels, but hotelier confidence has fallen,” she said, citing findings from the association’s latest Easter review and summer outlook survey.

Miguel Quintas, president of the National Association of Travel Agencies (ANAV), echoed that view, describing the 2026 season as “slightly positive but, above all, much more demanding”.

“There is demand, there is a desire to travel and Portugal’s tourism indicators continue to show resilience,” he said. “However, this will not be a summer of automatic consumption. Price, safety and confidence will carry much greater weight in decision-making.”

Pedro Costa Ferreira, president of the Portuguese Association of Travel and Tourism Agencies (APAVT), said demand remained strong but warned that success would depend on operational stability.

“It is not enough to have demand. We need the capacity to respond, air connectivity, operational stability and prices the market can absorb,” he said.

Francisco Calheiros, president of the Confederation of Portuguese Tourism (CTP), expects this year’s performance to be close to that of 2025.

“If that proves to be the case, I believe this year’s high season will be very positive,” he said.

According to industry leaders, travellers continue to prioritise family holidays, beach destinations, islands, cruises and short breaks, while destinations perceived as safe are seeing particularly strong demand.

The sector says geopolitical tensions, including the conflict in the Middle East, have not significantly affected people’s willingness to travel. Instead, they are changing consumer behaviour.

“The Portuguese are paying closer attention to destination safety, flight connections, route stability, travel insurance and cancellation conditions,” Quintas said.

Portugal’s reputation as a safe and stable destination could even help boost domestic and international demand, he added.

However, rising costs remain a concern. In comments reported by ECO, tourism leaders warned that increases in energy prices, aviation costs and fuel – particularly jet fuel – are feeding through to the final cost of holidays.

Rather than cancelling trips altogether, travellers are adapting their spending habits.

Consumers are choosing destinations closer to home, shortening stays, booking earlier when they find competitive prices and increasingly opting for all-inclusive packages that offer greater certainty over total costs.

“The consumer is more rational, better informed and more demanding,” Costa Ferreira said. “They place great importance on value for money.”

The industry is also keeping a close eye on airport operations, particularly after recent disruption linked to the implementation of the European Union’s new Entry/Exit System for non-EU travellers.

Calheiros said the introduction of the European Union’s new Entry/Exit System for non-EU travellers had damaged Portugal’s image, with lengthy queues at airports becoming a source of concern for the tourism sector. However, he said the situation now appears to be improving.

As The Resident reported on Tuesday, Infrastructure Minister Miguel Pinto Luz said recent measures had significantly reduced waiting times, insisting that “there is no longer chaos at Portugal’s airports”. The minister said operational adjustments and additional staffing had helped ease pressure at border controls ahead of the peak summer season.

“Tourism is an industry built on peace, confidence and security,” Quintas said. “The challenge this summer is not creating demand, but turning that demand into sales, positive experiences and value for businesses.”

Sources: Lusa, ECO