Alentejo Coast trumps Algarve as Portuguese holidaymakers’ favourite destination – study

The Alentejo Coast has overtaken the Algarve as the favourite domestic holiday destination for Portuguese travellers, according to a new study by the Portuguese Institute of Marketing Administration (IPAM).

The study, Férias dos Portugueses 2019–2026 (Holidays of the Portuguese 2019-2026), found that 60% of respondents planning to holiday in Portugal this summer chose the Alentejo Coast, compared with 30% who opted for the Algarve.

The result marks a significant shift from 2019, when the Algarve was the country’s leading domestic holiday destination. Over the past seven years, the Algarve’s share has fallen from 48% to 30%, while the North Coast has also grown in popularity, rising from 13% to 38%.

Although Portugal remains the most popular overall destination, its share has declined from 61% in 2019 to 50%, while holidays elsewhere in Europe have become more attractive, increasing from 34% to 40%.

The study also suggests that Portuguese holidaymakers remain cautious about spending.

The average summer holiday budget now stands at €750 per person, up around 5% from the €712 recorded in 2019. However, 43% of respondents said they expect to spend less than they did in 2025, while another 43% plan to spend roughly the same amount. Only 14% anticipate spending more.

Despite economic pressures, holidays remain a priority for many Portuguese. The survey found that 79% plan to take a summer holiday this year, compared with 85% in 2019. Among those travelling, 73% intend to spend their holiday away from home – the same proportion recorded seven years ago.

The traditional holiday allowance also continues to play an important role in funding summer breaks. According to the study, 77% of respondents said they rely on their holiday bonus to help pay for their holidays, with 30% saying they depend on it entirely.

Despite this apparent shift in Portuguese holidaymakers’ preferences, the Algarve’s tourism sector continues to record positive results, having celebrated a bumper May this year.

Michael Bruxo

Journalist for the Portugal Resident.