Portugal’s national tourism authority, Turismo de Portugal, has confirmed that the country received a record number of international visitors in the first half of 2026, with arrivals up approximately 10% year-on-year. The data, released in August, shows 5.8 million overnight guests recorded through official accommodation in the first quarter alone — a figure that tracks toward an annual total that would surpass all previous records.
UK Overtakes Germany as Top Source Market
One of the most notable shifts in the H1 data is the position of the United Kingdom. UK visitors have overtaken German travellers to become Portugal’s single largest source market for the first time, a reversal driven partly by sterling strength relative to the euro and by the continued expansion of direct flights from regional UK airports to Lisbon, Porto, Faro, and Funchal.
Spanish visitors remain the dominant market by volume across day-trippers and short-stay visits, but on overnight stays and tourism spend, the UK has now moved into first place.
Where Visitors Are Going
The Algarve continues to absorb the largest share of summer visitors, with occupancy rates at or near capacity from June through August. However, the data also points to meaningful growth beyond the traditional south coast hotspots:
- Lisbon and the Tagus Valley: continued strong performance, with hotel occupancy above 85% in June and July
- Porto and the Douro: growing appeal among UK and US visitors on city break itineraries
- Alentejo: occupancy growth outpacing the national average as rural tourism and wine region visits increase
- Madeira and the Azores: both recording double-digit growth in international arrivals
What This Means If You’re Visiting Now
Peak-season demand means advance booking remains essential for accommodation in Lisbon, the Algarve, and Sintra throughout August. Prices for hotels in central Lisbon and the Algarve have risen around 12% compared to H1 2025, reflecting both demand and rising operating costs.
August is also when domestic Portuguese travel peaks, so popular day-trip spots from Lisbon (Sintra, Óbidos, Setúbal) and from Porto (Guimarães, Braga, Aveiro) are busiest on weekends.
If you’re already in the country and finding the main centres busy, the Alentejo and northern Portugal — including the Minho and Trás-os-Montes regions — offer significantly lower crowd levels with no loss of quality.
Our Lisbon city guide and Porto guide cover current logistics including transport passes, neighbourhood choices, and booking timelines. For questions about when to visit and what to expect by season, the best time to visit Portugal page has a full monthly breakdown.