Portugal's Tourism Slowdown Deepens in February as Storms Hit Hardest-Hit Regions — Brazilian Visitors Surge 30%

Portugal's tourism sector continued to lose momentum in February, with overnight stays (dormidas) rising just 1.3% year-on-year — down from 2% growth in January and the slowest pace in recent months — as severe winter storms disrupted travel across large swathes of the country, according to preliminary data released Tuesday by Statistics Portugal (INE).

The 90 municipalities affected by intense storms in January and February accounted for 10.1% of the country's overnight stays, and those regions saw dormidas fall 1.8% year-on-year, contrasting sharply with the 1.7% growth recorded in unaffected areas. INE attributed the national slowdown to 'adverse meteorological conditions' that likely deterred both domestic and international visitors during the winter months.

Storm-Hit Regions See International Visitors Drop 6.7%

The impact was particularly severe for international tourism in storm-affected municipalities. Overnight stays by non-residents in those areas fell 6.7%, compared to a 0.9% increase in the rest of the country. Domestic tourism cushioned the blow slightly, with Portuguese residents' stays rising 1.3% even in affected regions.

Nationally, resident overnight stays grew 3.2% to 1.4 million, outpacing non-resident growth of just 0.4%, which totaled 2.8 million. The shift suggests that domestic travelers were more resilient in the face of bad weather, while international visitors — many of whom book well in advance and may have canceled or postponed trips — bore the brunt of disruption.

British Market Contracts, Brazil Surges

Among Portugal's top ten source markets, Brazil stood out with the strongest growth, posting a 29.6% increase in overnight stays — a reflection of both strong demand from South America and favorable exchange rates. However, the UK, Portugal's largest single source of tourists (15.8% of total overnight stays), continued its decline, dropping 4.1% in February after a 3.2% fall in January.

Germany, the second-largest market (11.4% share), grew modestly at 1.4%, while Spain, the third-largest market (7.8% share), reversed January's growth with a 4.4% decline. France recorded the sharpest drop among major markets, falling 16.7%.

The divergence between markets reflects broader economic and geopolitical factors. The UK and France are grappling with domestic economic uncertainty, while Brazil's growing middle class and weakened euro have made Portugal an increasingly attractive destination for South American travelers.

Regional Winners and Losers

Alentejo and the North posted the strongest regional growth, with overnight stays rising 4.2% and 3.4%, respectively. Both regions have been positioning themselves as alternatives to the traditional coastal hotspots of Lisbon and the Algarve, and their performance suggests that diversification is paying off.

By contrast, the Azores (-3.4%) and Centro region (-1.9%) saw the largest declines. Both regions were among the hardest hit by the winter storms, with flooding, landslides, and infrastructure damage disrupting tourism operations and deterring visitors.

Greater Lisbon (28.3%), the Algarve (18.4%), and the North (18.4%) together accounted for 65.1% of all overnight stays, underscoring the continued dominance of Portugal's established tourism hubs despite the weather-related slowdown.

Hotel Revenues Rise Modestly

Total hotel revenues rose 4.3% to €299.4 million in February, while room revenues increased 4% to €216.7 million — both slower than the 5.4% growth recorded in January. Revenue per available room (RevPAR) edged up just 0.2% to €39.7, while average daily rate (ADR) rose 2.5% to €89.6.

The modest revenue gains suggest that while hotels were able to raise prices slightly, occupancy remained under pressure due to cancellations and reduced bookings in storm-affected areas.

Outlook: Slower Growth Ahead

February's weak performance adds to concerns that Portugal's record-breaking tourism run may be slowing. The sector hit an all-time high of 32.5 million visitors in 2025, but 2026 has started tepidly, with weather disruptions compounding broader challenges including rising costs, geopolitical instability, and shifting travel patterns post-pandemic.

The government remains optimistic. Economy Minister Manuel Castro Almeida has argued that Portugal's tourism sector still has room to grow, and the country continues to invest in hotel construction and infrastructure expansion.

However, the February data suggests that growth will be uneven in 2026, with much depending on whether the weather stabilizes, whether key European source markets recover economically, and whether Portugal can continue to attract high-value visitors from emerging markets like Brazil while managing the decline of traditional strongholds like the UK and France.

Related reading: Wildfire Season in Portugal — A 2026 Resident's Safety Guide to the 31 May Cleanup Deadline, the Faixa Rules, and the IPMA Risk Map

Background: See the March 2026 INE tourism release and Madeira's first ever million-night March.