How Much Does Portugal Rely on Tourism?

By Alice Nichols

Portugal is a beautiful country located in the southwestern part of Europe. With its picturesque landscapes, vibrant culture, and stunning beaches, Portugal has become one of the most popular tourist destinations in the world. However, with the COVID-19 pandemic affecting travel worldwide, it’s crucial to understand how much Portugal relies on tourism.

How Important is Tourism to Portugal?

Tourism is a vital industry for Portugal’s economy. In fact, it accounts for about 15% of the country’s GDP and generates around 9% of total employment. According to the World Travel and Tourism Council (WTTC), tourism contributed €38.4 billion to the Portuguese economy in 2019.

Portugal has been investing heavily in its tourism sector for many years. The government has made significant efforts to improve infrastructure and promote international events and festivals that attract visitors from all over the world.

The Impact of COVID-19 on Tourism in Portugal

The COVID-19 pandemic has had a tremendous impact on tourism worldwide, and Portugal is no exception. The country implemented strict measures to contain the spread of the virus as early as March 2020, including closing its borders to non-residents.

As a result, the number of tourists visiting Portugal dropped significantly. According to data from INE (National Institute of Statistics), there was a 76% drop in foreign tourists’ arrivals in July 2020 compared to July 2019.

The pandemic’s impact has also been felt by those working in the industry, with many losing their jobs due to hotel closures and reduced demand for services.

  • What Has Portugal Done to Attract Tourists During COVID-19?

Despite these challenges, Portugal has been taking steps to encourage tourists’ return while ensuring their safety during these uncertain times. The “Clean & Safe” initiative launched by Turismo de Portugal guarantees that establishments in the tourism sector comply with strict hygiene and safety measures. This initiative has been well received by tourists and has helped to restore confidence in the industry.

Additionally, Portugal was one of the first countries in Europe to implement a COVID-19 insurance policy for tourists. This policy covers medical expenses, transportation, and accommodation if a tourist contracts COVID-19 while visiting Portugal.

The Future of Tourism in Portugal

Tourism is expected to continue playing a significant role in Portugal’s economy, even after the pandemic is over. The country has been working on diversifying its tourism offerings by promoting other regions beyond Lisbon and the Algarve.

Moreover, Portugal’s commitment to sustainability is also expected to play a bigger role in its tourism sector. The country has set ambitious goals to reduce carbon emissions and promote eco-tourism, which will help attract visitors who prioritize environmentally friendly travel.

Conclusion

Tourism is undoubtedly an essential industry for Portugal’s economy. However, COVID-19 has shown how vulnerable this industry can be during times of crisis.

While the pandemic has brought many challenges for Portugal’s tourism sector, the country has taken significant steps to ensure its recovery while prioritizing visitors’ safety and well-being. As we look towards the future, it’s clear that sustainable tourism practices will play an increasingly important role in attracting visitors to this beautiful country.