The Algarve has long been one of Europe’s leading destinations for tourists, yet in 2023, this sunny region of southern Portugal is set to attract even more visitors from around the world.
Portugal saw a huge uptake in visitors in 2022, with overnight stays increasing 86.3% in comparison to 2021. In addition, in the first ten months of 2022, the tourism revenue had already exceeded the total revenue for 2019, showing that not only are visitors flocking to the region, but they’re also spending more too.
The Algarve remains the country’s top touristic region, having seen the most overnight stays in Portugal (19.1 million) in 2022. And this year, the region is set to become an even more sought-after destination for holidaymakers and tourists.
Its metropolitan hubs of Faro, Albufeira and Lagos have flourished over the years and have become major tourist attractions in their own right.
With planned upgrades to local infrastructure and transport links, these areas will be even more accessible in 2023. From the UK, EasyJet, Ryanair and Jet2 have all increased the number of routes going to Faro in 2023, and the airport’s capacity has doubled thanks to its extension.
In addition, various new hotels and resorts are planned for construction in 2023. Major chains like Marriott, AC Hotels and InterContinental have all invested heavily in the region, as well as boutique and independent operators too. And with increasing numbers of businesses setting up shop, there’s no doubt that the area’s vibrant nightlife and dining scenes will flourish.
The region’s stunning beaches are still a major draw for tourists, but in 2023 the Algarve is set to become even more attractive thanks to recent investments and improvements. New beachfront developments will include luxury accommodation, fine dining venues and leisure activities that will make it an ideal destination for those looking for a holiday of sun, sand and sea.
Further inland, there are plenty of attractions to explore too, from picturesque villages and historical sites to nature parks, showing that this stunning region is not just about the beach life.
The draw for property investors
For property investors, the Algarve is also a great opportunity. The increasing demand for accommodation from tourists is driving up rental prices for short-term lets. Indeed, in August 2022, the tourist accommodation sector registered 3.4 million guests alongside 9.9 million overnight stays, the highest monthly values since records began, and these levels are set to continue into 2023 and beyond.
Unlike many other regions in Europe, the fine weather attracts visitors in all seasons, meaning occupancy levels are high throughout the year.
Additionally, investment in the region is attracting more professionals looking for longer-term rentals in the area, giving investors the opportunity to diversify their portfolio outside of the tourism market.
All in all, the Algarve is set to become an even more sought-after destination for holidaymakers and tourists alike in 2023.
Contact us for information on real estate opportunities in the Algarve.
