Economy Minister: Portugal Tourism Sector Still Has Room to Grow
Portugal's Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, rejected claims that the country is overly dependent on tourism or has "too much tourism," arguing the sector can still grow—primarily by increasing the value tourists...
Portugal's Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, rejected claims that the country is overly dependent on tourism or has "too much tourism," arguing the sector can still grow—primarily by increasing the value tourists spend rather than the sheer number of visitors.
Speaking in Porto on March 15, 2026, at the signing of financing contracts for 12 tourism projects, Castro Almeida said, "We still have room to grow, although more important than growing in the number of tourists is growing in the appreciation of tourism, in the value that tourists pay to be in Portugal, which is the way to increase the income of those who work in the sector."
Not Overly Dependent on Tourism
The minister countered narratives that Portugal relies too heavily on tourism or suffers from overtourism on a national scale.
"Tourism is pulling the country upwards, it adds to our product, improves our trade balance and is a very important activity," he said. "In one week or another of the year, in one or another point of the country, there may be too much tourism, but in the country as a whole, throughout the year, we do not have too many tourists."
Castro Almeida acknowledged that some tourism initiatives proceed without state support, driven by private entrepreneurs. However, he emphasized the importance of public funding for smaller projects—particularly in Portugal's interior regions—that enhance cultural and natural heritage but need help gaining visibility with international visitors.
€4.5 Million for 12 Projects
The financing contracts signed in Porto provide €4.5 million in support to 12 tourism initiatives, representing a total investment of approximately €11 million.
The projects are distributed across the North, Central, Alentejo, and Ribatejo regions, focusing on:
- Nature tourism
- Gastronomic tourism
- Active tourism (hiking, cycling, adventure sports)
- Wellness tourism
- Cultural and heritage tourism
Beneficiaries include municipalities, associations, and private entities, with most grants directed toward interior regions that need public support to unlock their tourism potential.
Carlos Abade, president of Turismo de Portugal, said the projects "allow for the enhancement and qualification of the territory, highlighting the richness and diversity of resources" and "allowing for the creation of better conditions so that tourism activity can generate ever greater value."
Growing with Tourism Program
The projects are funded under the "Growing with Tourism" Program, launched in February 2025 with a €30 million budget. The program aims to promote sustainable territorial development with a focus on social and environmental responsibility, innovation, and resource enhancement.
Key intervention areas include:
- Creation of new tourism products
- Promotion of smart territories
- Enhancement of historical and cultural heritage
- Sustainability certifications for destinations
- Urban regeneration and revitalization of historic establishments
- Training for vulnerable groups entering the tourism workforce
- Community-based and multicultural tourism initiatives
What This Means for Expats
If you work in Portugal's tourism sector—hospitality, restaurants, tour operations, short-term rentals—the government's focus on "higher value" rather than "more tourists" signals a shift toward premium experiences and niche markets.
This could mean:
- More investment in interior regions: If you're considering relocating outside Lisbon/Porto/Algarve, emerging tourism infrastructure in regions like Alentejo, Ribatejo, and inland North Portugal may create new business and employment opportunities
- Emphasis on quality over quantity: Businesses that offer unique, high-value experiences (wine tourism, cultural heritage, wellness, gastronomy) are likely to see more public and private investment
- Sustainable tourism priorities: Certifications and eco-friendly practices are becoming more important for accessing grants and appealing to higher-spending tourists
For expat residents, the government's stance suggests that tourism pressure—while real in hotspots like Alfama, Cascais, or the Algarve coast—is not seen as a national crisis requiring caps or severe restrictions. Instead, the strategy is redistribution and value enhancement.
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Related: [Portugal Economy 2026](#), [Working in Portugal Tourism Sector](#), [Living in Portugal's Interior Regions](#). (Background: see our piece on the cycling in Portugal in 2026 guide.). (Background: see our piece on the hiking in Portugal in 2026 guide.). (Background: see our piece on the WRC Vodafone Rally de Portugal 2026 kickoff in Coimbra.). (Background: see our piece on the Portugal beach guide for foreign residents.)
Background: See the March 2026 INE tourism release and Madeira's first ever million-night March.
