New data from the World Travel and Tourism Council (WTTC) indicates that Portugal’s travel and tourism sector is set to maintain strong growth in 2025, building on a record-breaking performance in 2024.

Tourism is forecast to generate €62.7 billion for the Portuguese economy this year, according to the latest Economic Impact Research (EIR), conducted in partnership with Oxford Economics.

This represents 21.5% of the country’s GDP, nearly 38% higher than the previous peak recorded in 2019.

In addition, the travel and tourism sector in Portugal is projected to support 1.2 million jobs nationwide, nearly one in every four jobs, marking an increase of 200,000 positions over its previous peak.

International visitor spending is expected to climb to €33.1 billion, while domestic spending is forecast to hit €22.9 billion. These figures represent increases of 24.2% and 59.5%, respectively, compared to 2019, highlighting the robust recovery and ongoing momentum of both inbound and local travel demand.

The optimistic outlook for 2025 is grounded in Portugal’s record-breaking performance in 2024, when the travel and tourism sector hit historic highs.

Last year, the industry contributed €60.6 billion to the national economy, representing 21.3% of Portugal’s GDP. It also supported 1.2 million jobs, nearly 23% of total employment.

In 2024, international visitor spending rose to a record €31.8 billion, while domestic tourism contributed an all-time high of €22.2 billion, signalling historic peaks for both categories.

Looking ahead, the WTTC’s long-term projections point to even greater growth potential for Portugal’s travel and tourism sector in the years to come.

Indeed, by 2035, Portugal’s travel and tourism sector is expected to generate over €74.6 billion in GDP, accounting for 22.6% of the national economy. The industry is also projected to support 1.4 million jobs, further solidifying its role as a key engine of economic growth and social development across the country.

International visitor spending is forecast to climb to €40.6 billion, with domestic spending expected to rise to €25.8 billion, underscoring the travel and tourism sector’s crucial role in Portugal’s long-term economic strategy.

By the end of 2025, the WTTC forecasts that the EU’s travel and tourism sector will nearly hit €1.9 trillion, making up 10.5% of the entire EU economy. Employment connected to the sector is expected to total 25.7 million jobs, accounting for 12% of all regional employment.