Hospitality, Tourism

The Secret to Portugal’s Growth as a Tourist Destination

Article by:

Anugwolu Timothy & Chukwuemeka Smart

According to data released by Banco de Portugal – the central bank of the Portuguese Republic – the revenue earned by tourist activity in Portugal for 2022 stood at €21.1 billion.

This is record-breaking because revenue increased by 15.4 per cent from €18.29 billion in 2019! While several countries are still struggling to reach pre-pandemic levels, it looks like Portugal is already many strides ahead.

In addition to this, at the European edition of the World Travel Awards (WTA 2022), – one of the highest honours in the travel industry – Portugal was named Europe’s Leading Tourist Destination for the 5th time in the last 6 years. Destinations, hotels, and resorts in Portugal were rewarded in over 30 categories at the event.

Well, you may ask, did this happen overnight? What could be the secret behind Portugal’s growth as a tourist destination? 

Like Occam’s razor philosophy, perhaps the simplest explanation is usually the best one. Maybe Portugal is favoured as a tourist destination for its delicious gastronomy and idyllic climate. Or maybe more travellers are visiting to experience the rich cultural history gained from centuries of trade and culture assimilation.

However, a peek below the surface reveals some interesting bits.

For one, Portugal is one of the most affordable tourist destinations to visit in Europe. You can get great travel and accommodation deals that are very pocket-friendly.  

I took some time to analyze the prices of the 30 top-rated hotels in Portugal on Booking.com. I also repeated the same procedure for Portugal’s next-door neighbour, Spain. The average price for Spain’s accommodation was almost twice as much as that of Portugal. Even though the prices were quite similar up to the upper-midscale point, the data got skewed by the vast difference between the upscale to luxury offerings. Also, getting a meal even in the capital city of Lisbon doesn’t hurt your pockets, unlike some other European countries.

 

O Jardim—Sr. Lisboa | HAYLEY KELSING

 

I may have glossed over this earlier, but a mild climate really does wonders for a country’s reputation. According to a study by My Dolce Casa, Portugal ranked highest among European countries as the favourite tourist destination to move to or retire for Americans.

And that is quite understandable. Portugal enjoys over 300 days of sunshine a year, making it an ideal destination for outdoor activities. The combination of good infrastructure, a good standard of living, quality healthcare facilities and technological developments also make it a practical choice for business tourists and expatriates.

Portugal is also one of 9 out of 44 countries in Europe that offer residency or citizenship-by-investment programmes. Portugal Golden Visa programme offers residency in Portugal through a minimum investment in real estate of €280,000. The visa is valid for six years through renewals and can lead to permanent residency or citizenship and gives holders visa-free travel access to all 27 European Schengen countries.

Portugal’s next door neighbour, Spain also offers a residency programme but with a minimum investment of €500,000 in real estate. Though the visa is valid for longer (up to 10 years) in the case of Spain, more people are snatching the Portugal Golden Visa opportunity because of the lower investment threshold.  

Furthermore, Portugal has worked/is working on improving their status as a sustainable tourist destination in Europe. One of these is the 2027 Sustainable Tourism Strategy which itemises several crucial goals and targets to be reached across three dimensions of sustainability; Economic, Social and Environmental.

Some of the key milestones include:

  • boosting the number of tourism companies developing energy efficiency, water efficiency and waste management measures by 90 per cent in 2027.
  • to reduce seasonality from 37.5 per cent to 33.5 per cent by 2027.
  • increasing the number of overnight stays and revenue from tourism.

Supporting programmes have been developed to achieve this. Public projects have also adopted sustainability criteria in classification and licensing. What has been the result? An influx of sustainability and environmentally-conscious tourists.

 

Portugal enjoys over 300 days of sunshine a year, making it an ideal destination for outdoor activities. The combination of good infrastructure, a good standard of living, quality healthcare facilities and technological developments also make it a practical choice for business tourists and expatriates. 

 

What lessons can we learn from Portugal’s tourism growth in Nigeria?

  1. Sustainability in tourism and hospitality – this should encompass the design and practices of destinations and hospitality facilities
  2. Affordability is key to promoting tourism in Africa. Hotels and tourist destinations should have a healthy mix of mid-range products to capture a larger tourist market 
  3. Nigeria has diverse cultures, a rich history, vast natural resources and great food – we need to
  4. Sustainable tourism policies should be implemented to properly promote and manage our resources, and build a vibrant tourism economy. 

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