Portugal’s travel and tourism sector is on the verge of a historic year, with its economic contribution forecast to surpass €54 billion, according to the World Travel & Tourism Council (WTTC) 2024 Economic Impact Research (EIR).

According to the latest data from the WTTC in collaboration with Oxford Economics, there has been a surge of 24.3% in the tourism sector compared to 2019, which now represents 20% of the national economy. This solidifies the sector's position as a key economic driver.

The sector is expected to support 1.14 million jobs, representing an increase of 126,000 jobs compared to 2019 levels. With the government prioritising travel and tourism, spending by both international and domestic tourists is projected to reach €30.7 billion and €17.9 billion, respectively.

Last year, the contribution from Portugal’s travel and tourism sector rose by 8.6% to €52 billion, making up 19.6% of the country’s total economic output, 19.5% higher than the peak in 2019.

The industry provided employment for 1.11 million people nationwide, with an additional 91,000 jobs created compared to the peak employment levels of 2019. International visitor spending increased by 9.2% to €29.6 billion, while domestic tourism spending rose by nearly 5% to €17.2 billion.

“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, and the sector’s future looks exceptionally promising,” said Julia Simpson, WTTC President and CEO.

According to WTTC forecasts, the outlook for the next decade is exceptionally positive. By 2034, the tourism sector is expected to provide a substantial boost to Portugal’s economy, contributing an estimated €66.5 billion, which is 22.4% of the total economy. 

This growing sector is also forecast to be a major source of job creation, with employment expected for nearly 1.4 million people across the country, representing one in every four workers. 

The upcoming decade holds great promise for Portugal's travel and tourism sector, with expectations of significant growth and transformation.