Algarve aims its efforts on expanding into the American market.
In the first half of 2025, the Algarve region of Portugal has made significant strides in enhancing its tourism industry, with a particular focus on attracting more visitors from the United States.
One of the key initiatives has been the strategic investments in infrastructure and visitor experience. These improvements aim to maintain the region’s competitiveness on a global scale, ensuring smooth experiences for tourists and preserving Algarve’s appeal as a high-quality destination. Hoteliers and local stakeholders have welcomed these investments, calling for further improvements to sustain the region’s growth.
The Algarve benefits from Portugal’s overall projected tourism growth of about 9% in 2025, driven by the country’s reputation for safety, climate, beaches, cuisine, and culture. While Lisbon, Porto, and coastal regions continue to attract most tourists, Algarve’s established popularity as a top coastal destination positions it well to capture international visitors, including Americans.
To further boost tourism, Algarve Tourism has been promoting boutique and wellness tourism. The hospitality sector in Portugal, including Algarve, is evolving toward diverse offerings like boutique hotels, wellness centers, yoga retreats, and unique local experiences. This diversification attracts tourists seeking lifestyle and wellness-focused vacations, trends notably appealing to the US high-spending traveler segment.
Portugal’s supportive public policies and a stable regulatory environment encourage foreign investment in hospitality infrastructure, contributing to new hotel openings and quality accommodation in Algarve and other regions. Prominent global investors are boosting the sector, which indirectly benefits Algarve’s tourism capacity and appeal.
In the first half of the year, seven promotional campaigns were underway with airlines from six different markets, including collaborations with Air Transat, British Airways, Brussels Airlines, Eurowings, Jet2.com, SATA Azores, and Transavia. The USA is currently the seventh most important foreign market for the Algarve, and the strengthening of air connectivity, especially the start of direct air connections with the United States, is expected to intensify throughout the second half of the year.
These efforts have yielded positive results, with demand from the North American market for the destination growing by 8.5% between January and February 2025. André Gomes, president of Algarve Tourism, believes that the region is prepared to face the challenges of today’s tourism with strategic vision, adaptability, and a value proposition aligned with travelers’ expectations. He expresses confidence in the region’s path and believes the work carried out is strengthening its competitiveness and attracting more qualified and sustainable tourism.
The Algarve is increasingly on the radar of the most demanding and curious travelers, according to a report by Publituris. Five additional promotional campaigns are already planned for the second half of the year, bringing together more than 300 tour operators and travel agents, providing direct meetings with companies in the Algarve. These initiatives have already taken place or are taking place with tour operators and online travel agencies from 10 markets.
André Gomes believes that the Algarve is well-positioned to capitalize on these opportunities, with its focus on infrastructure improvements, enriching visitor experiences, expanding hospitality offerings, and leveraging supportive policies and investment trends. The indicators relating to tourism promotion in the first half of 2025 confirm that Algarve Tourism’s international strategy is bearing fruit.
- In light of the Algarve region's boosted tourism industry in 2025, Portugal's Finance and Business sectors are seeing opportunities for foreign investment in hospitality infrastructure, particularly in Algarve.
- The Algarve's focus on catering to the lifestyle and wellness-focused tourist, a trend popular with the US high-spending traveler segment, is being furthered through the introduction of boutique hotels, wellness centers, and unique local experiences.
- Algarve Tourism's news and events promotions, such as the seven campaigns launched with airlines from six different markets, are expected to strengthen even more throughout the year, with the anticipated start of direct air connections with the United States.
- As Algarve Tourism's international strategy unfolds, the region is positioning itself as a choice destination for demanding and curious travelers, capitalizing on its infrastructure improvements, enriched visitor experiences, and expanding hospitality offerings.
