Algarve Hotels see boost in May occupancy
This positive trend, according to the Algarve Hotel and Tourism Enterprises Association (AHETA), was largely fueled by rising demand from domestic travelers as well as visitors from Spain and Germany.
Tourist accommodation units across the Algarve recorded a 74.8% occupancy rate in May, reflecting a 1.7 percentage point increase compared to the same month in 2024. This positive change indicates that Algarve hotels see a boost in May occupancy rates.
Data released by AHETA on June 6 reveals that the Portuguese market contributed significantly, with a 1.9 percentage point increase year-on-year. The Spanish market followed, growing by 0.6 percentage points, while the German market rose modestly, up by 0.4 percentage points.
Conversely, the UK market experienced a decline, registering a 1.5 percentage point drop in May compared to the previous year. The Swedish market also showed a slight downturn, with a 0.4 percentage point decrease in occupancy.
The average length of stay in the Algarve during May was 3.7 nights, which is 0.5 nights shorter than in May 2024. However, some nationalities stayed longer, with Dutch tourists averaging 6.2 nights, Germans 6.0 nights, and Swedes 5.6 nights, indicating stronger engagement from these visitor segments.
In addition, the Revenue per Available Room (RevPAR) for Algarve hotels saw a 9.5% increase, reaching nearly 82€, highlighting a positive shift in profitability for the region’s tourism sector.
Key Takeaways
- Overall occupancy in May: 74.8% (+1.7 pp YoY)
- Top growth markets: Portugal (+1.9 pp), Spain (+0.6 pp), Germany (+0.4 pp)
- Markets in decline: United Kingdom (-1.5 pp), Sweden (-0.4 pp)
- Average stay: 3.7 nights (0.5 fewer than May 2024)
- Highest average stays: Netherlands (6.2 nights), Germany (6.0), Sweden (5.6)
- RevPAR: 82€, up 9.5% YoY
This upward trend in Algarve hotel occupancy and revenue underscores the region’s resilience and growing appeal to European travelers, particularly from neighboring countries. As summer approaches, tourism operators remain optimistic about sustained demand from both local and international markets.