Tourism industry experiences an uptick in optimism during summer season

The tourism industry in Portugal is gearing up for the summer of 2025, with a focus on capitalising on the Asian market and overcoming challenges that lie ahead.

According to a recent report, the Asian market is identified as an underutilised strategic opportunity, with robust growth observed in international markets, particularly from the United Kingdom, Spain, the United States, France, and Germany. The report highlights strategic challenges for the sector, requiring vision, targeted investment, and coordinated action.

António Jorge Costa, President of IPDT, expresses concerns about challenges ahead for the tourism sector, including climate instability, limitations at Lisbon Airport, and rising anti-tourism sentiment. However, he stresses the need for more cohesive efforts to capitalise on the Asian market.

Asia, the world’s fastest-growing tourism market, is driving major shifts in global tourism and demanding substantial infrastructure and service enhancements. Portugal can capitalise on this by attracting Asian travelers who seek rich cultural experiences, scenic landscapes, and high-quality services that Portugal offers. The growing affluence and travel propensity among Asian tourists from countries such as China, Japan, and Korea represent key target segments.

However, challenges include navigating cultural and language differences, intense competition from other European destinations, and the need to adapt tourism products and services to Asian tastes and travel behaviors. Infrastructure challenges also arise in accommodating increased arrivals and ensuring seamless connectivity.

Solutions entail developing tailored tourism products that highlight Portugal’s heritage, gastronomy, and wine culture with elements appealing to Asian tourists. Engaging in promotional and partnership activities at Asian travel expos like ITE HCMC, which connect international travel operators from China, Japan, and Korea to new destinations, is also crucial. Leveraging technology and digital marketing optimised for Asian platforms to increase visibility and ease of access is another important aspect. Building on partnerships such as Portugal’s ties with Macao, which acts as a gateway between China and Portuguese-speaking countries, to deepen collaboration and cross-promotion is also key.

Investment prospects focus on sustainable tourism projects, digital platforms, and collaborative initiatives in tourism infrastructure and services aligned with Asian market dynamics. Joint ventures and collaborative projects in the tourism and hospitality sectors, especially in regions with existing strong ties to Asia, like Macao and the Greater Bay Area cooperation framework, are also promising. Innovation in tourism offerings to include wellness, leisure, and cultural experiences that resonate with Asian consumers is another area of focus.

Despite these challenges, the outlook for international markets in summer 2025 is more optimistic, with 70% of professionals expecting more tourists and 67% anticipating increased overnight stays. Revenue (77%) and price per night (78%) are also expected to grow in international markets, reflecting confidence in a wealthier international clientele.

In the domestic market, revenue is expected to rise modestly in summer 2025, with a potential trend towards higher nightly rates. Domestically, the internal market remains stable compared to the record-breaking summer of 2024, seen as a sign of resilience in national demand despite inflation and cautious consumer spending. Most professionals anticipate steady results for the domestic market in summer 2025, with similar tourist numbers and overnight stays to 2024.

The July edition of the report forecasts a positive second half of the year for the sector. The limitations at Lisbon Airport are identified as a concern, but the overall sentiment remains optimistic. The challenges highlighted by António Jorge Costa require "firm and structured responses" from the sector, but the expectations for the growth in international markets suggest increased value of Portugal's tourism offer, particularly in the accommodation segment.

To capitalize on the Asian market, Portugal's tourism industry is focusing on creating tailored products that showcase Portugal's heritage, gastronomy, and wine culture, making them appealing to Asian tourists.
Infrastructure improvements are necessary to accommodate the influx of Asian travelers and ensure seamless connectivity, as Asia, with its robust growth in tourism, is driving major shifts in global travel trends.
Leveraging technology and digital marketing on Asian platforms plays a crucial role in increasing visibility and accessibility for Portuguese tourism, helping to attract more Asian tourists and boost business prospects in the sector.