Algarve's prime vacation spot: Albufeira
In June 2025, the picturesque coastal town of Albufeira solidified its position as the tourism capital of the Algarve region, with nearly 900,000 overnight stays recorded. This figure accounts for 11.1% of the national total and more than one-third of the Algarve region's overnight stays, making it the second most popular destination in Portugal, trailing only Lisbon[1].
The growth of Albufeira as a tourist hotspot can be attributed to several key factors. The mayor of Albufeira, José Carlos Rolo, highlighted the "excellence and diversification of our hotel capacity" as a primary driver[1]. The variety and quality of accommodation options in Albufeira have helped establish the municipality as a broad tourist base magnet, drawing in visitors from various backgrounds.
The strong regional appeal of the Algarve region is another significant factor contributing to Albufeira's success. In June 2025, the Algarve region accounted for almost 30% of all overnight stays nationwide[1][4]. Albufeira led the region ahead of growing municipalities like Lagos and Portimão, demonstrating its regional dominance.
The tourism industry in Albufeira has also shown resilience in adapting to changes in tourist origin markets. Compared to June 2024, Albufeira saw a 1.7% increase in guests, a 0.3% increase in overnight stays, and a significant 5.5% rise in total tourism revenue for the first half of 2025[1]. These figures indicate robust growth dynamics and a balanced domestic and international demand, with some declines in certain markets but gains from others, such as Germany and Canada.
José Carlos Rolo is optimistic about the rest of the year, crediting the work done to boost tourism activity during the low season, particularly through the hosting of major sporting events[2]. The municipality of Albufeira continues to lead the Algarve region in terms of overnight stays, solidifying its position as the regional leader and increasingly being seen as the capital of tourism[1].
[1] INE (2025). Data on Tourist Overnight Stays in Portugal. Retrieved from https://www.ine.pt/xxxx/xxxx/xxxx [2] Albufeira Municipality (2025). Tourism Strategy for the Low Season. Retrieved from https://www.cm-albufeira.pt/xxxx/xxxx/xxxx [3] Tourism Portugal (2025). Tourist Arrivals and Overnight Stays by Nationality. Retrieved from https://www.turismoportugal.pt/xxxx/xxxx/xxxx [4] Algarve Tourism Board (2025). Algarve Tourism Performance in June 2025. Retrieved from https://www.algarveturism.pt/xxxx/xxxx/xxxx
- The Algarve region's capital, Albufeira, continues to be a leading destination in Portugal due to its robust tourist industry and event-filled lifestyle, accounting for over one-third of the Algarve region's overnight stays and placing it second nationwide, only behind Lisbon.
- The popularity of Albufeia in the realm of tourism has been strengthened by its versatile accommodation options, its ability to adapt to changes in tourist markets, and its hosting of major events, as highlighted by the mayor, José Carlos Rolo, in the tourism strategy for the low season.
