Algarve needs more hotels – but not all on the coast, says tourism chief

The Algarve may be Portugal’s leading tourism destination, but regional leaders believe future hotel development should focus less on the coastline and more on the interior of the region.

According to an interview published by Expresso, André Gomes, president of the Algarve Tourism Board, argues that while additional hotel capacity is needed, new projects should be directed towards inland areas where they can help spread tourism more evenly throughout the year and reduce regional imbalances.

The comments come at a time when hotel investment in the Algarve is accelerating, with developers and international brands continuing to show strong interest in the region. Much of the recent activity has involved the refurbishment and repositioning of existing hotels, often under international luxury and lifestyle brands.

Speaking to Expresso, Gomes stressed that the Algarve’s tourism sector has made significant progress in tackling one of its long-standing challenges: seasonality. He said the region is currently experiencing what he described as the lowest level of seasonality in its tourism history, reflecting the success of efforts to attract visitors outside the traditional summer peak.

However, he believes there is still considerable room for growth, particularly in inland municipalities that have historically seen far less tourism investment than the coastal resorts that have made the Algarve famous.

For decades, tourism development has been concentrated around the region’s beaches and coastal towns. While these areas continue to attract millions of visitors each year, tourism authorities increasingly see the interior as offering opportunities for sustainable growth through nature tourism, gastronomy, wine tourism, cultural experiences and outdoor activities.

The strategy aligns with wider efforts to diversify the Algarve’s tourism offering and encourage visitors to explore beyond the traditional sun-and-sea product. Rural tourism projects, boutique hotels, wellness retreats and wine-related developments have all gained momentum in recent years as travellers seek more authentic and experiential holidays.

Gomes also highlighted the importance of tourism to the Algarve’s economy, suggesting that its influence extends far beyond hotels and restaurants. In comments reported by Expresso, he argued that tourism affects virtually every sector of regional economic activity, directly or indirectly.

The debate over where future hotel investment should be located is likely to become increasingly important as Portugal continues to attract record numbers of international visitors. While few would dispute the Algarve’s need for continued investment in tourism infrastructure, regional authorities appear keen to ensure that future growth benefits a broader geographical area rather than adding further pressure to already-developed coastal zones.

If successful, the approach could help strengthen the Algarve’s year-round economy while bringing new opportunities to communities that have traditionally remained outside the main tourism circuits. As demand for Portugal continues to grow, the challenge may be not whether the Algarve needs more hotels, but where those hotels should be built.

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