Portugal could benefit from calls to put tourism at heart of EU policy

Portugal could become one of the principal beneficiaries of proposals to give tourism a much more prominent role in European Union economic policy.

The Renew Europe group in the European Parliament has called for tourism to be formally recognised as a strategic pillar of Europe’s competitiveness, describing the sector as the continent’s “invisible engine”.

Its newly published policy paper proposes stronger EU-level tourism governance, a dedicated tourism budget within the EU’s next long-term financial framework and a permanent mechanism to help the industry respond to crises.

The group argues that tourism is Europe’s fourth-largest export category but continues to receive less political attention and financial support than other major industries.

The proposals could be particularly significant for Portugal, where tourism supports hundreds of thousands of jobs and plays an essential role in regional economies, especially in the Algarve, Madeira, Lisbon and the north of the country.

Dedicated European funding could potentially be used to improve transport connections, encourage year-round tourism, modernise hotels and tourism businesses, train workers and help destinations adapt to climate change.

It could also support regions dealing with the less positive consequences of tourism growth, including pressure on housing, water supplies, public infrastructure and local services.

Portugal has successfully transformed itself into one of Europe’s best-known destinations, but the country is also facing growing competition from destinations offering lower prices or newer tourism products.

Greater EU coordination could help Portugal move further away from competing primarily on visitor numbers and towards attracting higher-value tourism based on culture, gastronomy, nature, wellness and longer stays.

A European crisis-support mechanism may also be valuable. The pandemic demonstrated how quickly tourism-dependent regions can be affected by international events. Wildfires, extreme heat, aviation disruption, wars and economic downturns can similarly cause sudden falls in demand.

However, dedicated EU tourism funding would probably come with conditions. Portugal could be expected to demonstrate that projects contribute to sustainability, digitalisation, regional development and reduced seasonality.

For Portuguese tourism leaders, the debate therefore represents both an opportunity and a challenge.

Should the proposals gain support in Brussels, Portugal would be well placed to argue for a meaningful share of future funding. But it would also need a clear national strategy showing how European investment could create a more resilient tourism industry while delivering greater benefits to residents and local communities.

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By James Rocha

An avid observer of Portuguese affairs, with a particular interest in tourism, the economy and national developments

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