Latest news and stories about tourism impact in finance in Portugal for expats and residents.
The Portuguese tourism sector is facing significant challenges due to a recent storm, which has led to infrastructure damage, booking cancellations, and a loss of business during Carnival. Industry leaders are calling for targeted support to mitigate the economic impact and are hopeful that the upcoming Easter period can still be salvaged for hotels and tourism businesses.
The hospitality sector is entering 2025 with ‘extremely depressed’ margins and a wave of largely unseen or ‘silent’ closures, the industry association warns. Rising input costs and liabilities from the Covid bill have eroded profitability despite a package of government support, and the sector expects more than a thousand closures next year. The closures are hard to spot individually but carry a structural impact on local economies, employment and supply chains. Industry representatives say short-term relief has helped but longer-term, targeted measures are needed to stabilise margins and prevent further structural damage.
“The importance of Ryanair goes far beyond air capacity,” AREAT said, noting that the airline's exit from the archipelago affects the profitability of local businesses and demand for the destination.
The president of the Azores Local Accommodation Association (ALA) said on Wednesday that business owners are 'very concerned' about Ryanair's announced withdrawal from the regional market, given the investment made. João Pinheiro recalled, in remarks to Lusa, that, if the exit of the Irish carrier is confirmed, it will be 'the first year in which the Azores ...'
When going out for dinner or staying in a hotel becomes an unattainable luxury for the local population, a future storm is inevitable. Column by Pedro Garcias
Local businesses report losses and reduced footfall since the Elevador da Bica (Bica funicular) stopped operating in September.
Home News Madeira wine sales down Madeira wine sales down Madeira wine sales in 2025 fell by 1. 2% in value and 2. 6% in volume compared to the previous year, recording 3.
In 2025 the commercialisation of Madeira wine declined, with reductions in both the revenue generated and the quantity sold compared with the previous period.
Home News Algarve economy grows above national average Algarve economy grows above national average The Algarve region's economy grew by 2. 3% in 2024, a figure above the national average of 2. 1%, and increased its contribution to the national Gross Domestic Product from 4.
Castro Almeida said he expects a return of €100 million from the air show in 2026. Porto, Matosinhos, Maia and Vila Nova de Gaia will host Air Invictus between 19 and 21 June.
