Increased Demand in Algarve's Hotel Industry: Portuguese Continue to Flock, Reports Industry
The Algarve region of Portugal is witnessing a resurgence in tourism, according to the Association of Hotels and Tourism Enterprises of the Algarve (AHETA). In July 2025, the region recorded an occupancy rate of 84.6%, marking a year-on-year increase of 0.7 percentage points. The Revenue per Available Room (RevPAR) reached approximately €160 during this period [1].
The increase in occupancy was primarily driven by domestic tourists, Germans, and North Americans, while there was a notable decline in visitors from Ireland and the UK. This shift in market dynamics is part of the overall positive performance of the Algarve's tourism sector [1].
AHETA's report also highlights the region's commitment to sustainability. Initiatives like the "Save Water" certification for local accommodation providers aim to address challenges like water scarcity, positioning the Algarve as an environmentally responsible destination [3].
In Armacao de Pera, a popular destination for Portuguese tourists during August, the demand for local accommodation is on the rise. Despite the increase in tourists, many do not mind the traffic and lines that come with the peak season. Hoteliers report no significant price increases or decline in demand [4].
However, complaints about prices are common among tourists during August. AHETA suggests that the actual demand for the Algarve by Portuguese tourists could be higher than the reported statistics due to the exclusion of smaller accommodations from the statistics [4].
Tradition is not abandoned by regular tourists at the beach in Armacao de Pera. The beach hosts a small relay race between towels, beach chairs, and beach bags, adding to the festive atmosphere. The pace at the beach can be accelerated, with activities like the relay race happening quickly [5].
Despite news of cheaper destinations abroad, AHETA reports an increase in demand for local accommodations in Armacao de Pera. The region continues to attract tourists, with August remaining a busy time for tourists in Armacao de Pera. Traffic jams and lines are common at major entertainment spots during this month [6].
In conclusion, the Algarve's tourism sector is showing signs of resilience, recovering with some market shifts and increasing attention to sustainability. The demand for the Algarve by Portuguese tourists remains strong, and AHETA believes that the actual demand could be higher than the reported statistics due to the exclusion of smaller accommodations [1][3][4].
Tourists are increasingly drawn to the Algarve region, contributing to a thriving lifestyle that intertwines with the local culture. This vibrant setting, enhanced by travel opportunities, harbors a growing commitment to eco-friendly practices, making it an attractive and responsible destination.
