The World Travel & Tourism Council (WTTC) has revealed that Portugal’s Travel & Tourism sector is on the verge of a historic year in 2024, with its economic contribution projected to surpass €54 billion.
This marks a 24.3% increase compared to 2019 and signifies that the sector will account for 20% of the national economy, solidifying its role as a critical economic driver.
According to the WTTC, in partnership with Oxford Economics, the sector is anticipated to support 1.14 million jobs, an increase of 126,000 jobs from 2019 levels. This growth is attributed to the government’s continued prioritisation of Travel & Tourism, with spending by both international and domestic tourists expected to reach €30.7 billion and €17.9 billion, respectively.
In 2023, the sector’s contribution surged by 8.6% to €52 billion, representing 19.6% of Portugal’s total economic output, which was 19.5% above the 2019 peak. This growth supported 1.11 million jobs across the country, adding 91,000 jobs compared to the previous peak in 2019. International visitor spending rose by 9.2% to €29.6 billion, while domestic tourism spending increased nearly 5% to €17.2 billion.
Julia Simpson, WTTC President & CEO, remarked, “Tourism in Portugal is a cornerstone of the country’s economy, driving growth and contributing 1.1 million jobs. The Government’s efforts to boost tourism have played a key role in attracting more visitors to the country, leading to unprecedented growth and opportunities. The ongoing influx of tourists from around the world has resulted in substantial economic contributions, and Portugal is a top travel destination. The sector’s future looks exceptionally promising.”
Looking Ahead: A Bright Future for the Next Decade
The outlook for the next decade is exceptionally positive, with WTTC forecasts predicting significant growth. By 2034, the Travel & Tourism sector is expected to contribute an estimated €66.5 billion to Portugal’s economy, representing 22.4% of the total economy. Additionally, the sector is projected to be a major source of job creation, employing nearly 1.4 million people nationwide, which equates to one in every four workers.
European Union Travel & Tourism Growth
Across the European Union, the Travel & Tourism sector grew by more than 8% in 2023, reaching €1.65 trillion. Employment in the sector surpassed 23.5 million jobs, exceeding 2019 levels. International spending increased by 11.5% to €471.5 billion, approaching pre-pandemic figures, while domestic visitor spending grew nearly 5% to €963 billion, surpassing pre-pandemic levels.
The WTTC forecasts continued growth for the region in the coming year, with the GDP contribution expected to reach nearly €1.75 trillion. Jobs are forecasted to exceed 24.5 million, with international visitor spending projected to reach €517 billion and domestic visitor spending anticipated to surpass €982 billion.
Portugal’s Travel & Tourism sector is poised for a remarkable period of growth and transformation, solidifying its position as a key economic pillar and a top global travel destination.