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Overnight Stays in Tourist Accommodations in Portugal Fell 80% In the First Quarter of the Year

4 May 2021 – Ana Custódio

The tourism accommodation sector in Portugal received 283,700 guests for a total of 636,100 overnight stays in March, corresponding to declines of 59.0% and 66.5% y-o-y, respectively (vs -87.1% and -87.8% in February).

According to the National Statistics Institute (INE), overnight stays by Portuguese residents fell by 20.2% (-74.9% in February), while overnight stays by non-residents fell by 86.2% (-94.5% in the previous month). The year-on-year declines correspond to the first month in which the effects of the Covid-19 pandemic began to weigh heavily on the European economy. The first quarter of 2021 also saw a decrease of 80.0% in total overnight stays, with stays by residents down 59.3% and non-residents dropping by 90.0%. In March, 58.5% of the tourist accommodation establishments were either closed or did have any guests at all (63.9% in February).

As for guests and overnight stays, data show strong declines but recovering. The tourism accommodation sector recorded 283,700 guests and 636,100 overnight stays in March 2021, down by 59.0% and 66.5%, respectively (vs -87.1% and -87.8% in February). Overnight stays in hotels (71.3% of the total) decreased by 71.0%. The number of nights spent in local accommodation establishments (23.3% of the total) fell by 49.9%, and nights spent in rural tourism and accommodation (5.4% share) dropped by 9.6%.

Overnight stays by residents recovered, with the domestic market (71.1% weight) contributing 452,100 overnight stays in March, representing a decrease of 20.2% (-74.9% in February). Nights spent by international travellers decreased by 86.2% (-94.5% in the previous month), reaching 184,000. In the first quarter of the year, total overnight stays fell by 80.0%, stemming from drops of 59.3% for residents and 90.0% for non-residents.

All of the seventeen main source markets continued their declines in February. The smallest reductions were reported for the Polish (-37.9%) and Italian (-53.5%) markets, while the largest decreases were seen in the Canadian (-98.3%), British, and Dutch (both -93.4%) markets. In the first quarter of 2021, the Canadian (-98.0%), Chinese (-97.6%), US and Danish markets (-95.1% in both) posted the most significant decreases.

By region, INE’s report stated that every area registered a decrease in overnight stays in March, with the smallest reductions in the Alentejo (-16.5%), the Autonomous Region of the Azores (-36.1%) and the Centre (-39.3%), while the remaining regions registered decreases of over 50%. The Lisbon Metropolitan Area concentrated 25.6% of overnight stays, followed by the North (20.2%), the Centre (15.3%) and the Algarve (13.7%). In the first three months of the year, the regions that showed the lowest decreases in the number of nights spent were Alentejo (-59.4%), the Autonomous Region of the Azores (-67.0%), the Centre (-71.3%) and the North (-75.2%), while the other regions recorded decreases of over 80%. In March, all areas showed a decline in the number of nights spent by residents, except for the Alentejo (+4.5%). The largest reductions were seen in Algarve (-37.9%) and Centre (-28.7%). This month, nights spent by non-residents in the Alentejo fell by 57.9% and by 60.5% in the Centre, while the other regions showed decreases of over 75%.

Translation: Richard D. K. Turner