There are so many places to visit in Portugal and tourism is rapidly increasing as people begin to appreciate the country's beauty. This is one of the main reasons why investing in Portuguese real estate is an excellent investment decision.
The Importance of Understanding Portugal Tourism when Buying Property in Portugal:
Buyer's understanding of tourism in Portugal and how it impacts on property growth and rentals, is an important consideration when choosing location. Here are a couple of facts on Portuguese tourism and its impact on the economy.
Prime Tourism Destination - Tourism in Portugal has grown exponentially since 2008, before 2008 Portuguese international tourism was geared essentially to the British market which made up almost 2/3 of tourists visiting Portugal. The Portuguese were quick to explore other markets making forays into the Benelux countries, Scandinavia, China, France and USA, while at the same time maintaining its relationship with its traditional market in Britain. Today the tourism landscape is almost unrecognisable in comparison to the years prior to 2008, it is not uncommon to meet tourists from all parts of the world including the United States of America, China, Japan, Brazil, Italy, Holland, Belgium and Eastern Europe.
Growth - Portugal has experienced an average 8% growth in tourism since 2013. The number of foreign tourists visiting Portugal in 2017 rose nearly 12% to a record 12.7 million people, an important indicator when considering that Portugal has a population of 10.3 million people. Preliminary data from the National Statistics Institute (INE) also showed that total hotel revenues in Portugal, including domestic tourism which has grown as the economy recovers, by nearly 17% to 3.4 billion euros (Reuters).
Year-round destination - With its mild winter climate, cheap daily flights from all over Europe, and an average of 300 days of sunshine per year, Portugal is a hugely popular year-round destination. Its attractions create a strong tourist demand, which ensures investors can make solid rental returns from holidaymakers throughout the year.
Europe’s leading destination award - 2018 World Travel Awards
World Travel Awards - At the 2018 World Travel Awards, Portugal received a total of 36 travel awards, included in these the prestigious - Europe’s leading destination award. The Algarve was awarded the title - Europe’s leading beach destination and Madeira was named - Europe’s leading island destination.
In recognition for the excellent work done by the Portugal tourism board, Turismo de Portugal was voted Europe’s Leading Tourist Board. The Portuguese tourism board does not have the large budget available to other larger and richer countries. Despite that, it has been effective in applying its limited budget in the most effective ways resulting in the success that Portugal has experienced in recent years.
World’s Best Golf Destination
World Golf Awards - In November 2017 Portugal was named the World’s Best Golf Destination again for the third consecutive year running. The top award was handed out at the 2017 World Golf Awards held at the La Manga Club in Spain. Portugal also won the award for the best new golf course, which was won by West Cliffs Golf Links just north of Lisbon on Portugal’s Silver Coast in the municipality of Obidos.
Xtreme Sports - Portugal has also been able to market itself as a destination for extreme sports. Gareth McNamara put a small fishing village of Nazare in the Silver Coast Portugal on the world stage when he broke the record for the highest wave ever surfed. Peniche, also a fishing village in the Silver Coast Portugal has become world-famous for the super tube surfing competitions, bringing International surfers to Portugal annually.
Contribution to GDP - The World Travel and Tourism Council (WTTC) estimates that the direct contribution of Travel and Tourism to the Portuguese GDP is €13.2 billion, 6.8% of the total GDP in 2017 and is forecast to rise by 5.4% in 2018. It further estimates that the total contribution to the Portuguese economy was €33.5 billion, 17.3% of GDP in 2017 and is forecast to rise by 5.1% in 2018.
Employment in Tourism - In regard to employment, the WTTC estimates that travel and tourism contributes to employment, including jobs indirectly supported by the industry of 20.4% of total employment, which equates to 967,500 jobs. This number is expected to rise by 3.1% in 2018 to 1,011,500 jobs. It estimates that investment in Portugal travel and tourism in 2017 was €3.2 billion, 10.2% of total investment in Portugal. It expects that this investment in Portuguese travel and tourism, should rise by 7.4% in 2018.
Tourism is the first step on the journey to owning Portugal Property, tourists initially visit Portugal to visit the sights and enjoy beaches. They then fall in love with the Portuguese lifestyle and hospitality, the next step to ownership of Portugal Property becomes inevitable. As more tourists visit Portugal, it is natural that the demand in Property for sale in Portugal will continue to increase.