British visitors continue to generate more tourism revenue in Portugal than any other international market. In 2025, spending attributed to travellers from the United Kingdom reached approximately €4.28 billion, accounting for 14.7% of the country’s total tourism receipts.
That leading position has held firm despite signs of slowing visitor numbers. British arrivals at tourist accommodation remained virtually unchanged, while overnight stays fell by 1.6%. Yet tourism revenue from the UK increased by more than 3%.
The figures highlight just how important British travellers remain to Portugal’s tourism economy, particularly in regions such as the Algarve, where the relationship stretches back decades.
British tourism generates €4.28 billion for Portugal
Portuguese tourist accommodation establishments welcomed approximately 2.46 million British guests in 2025, almost exactly the same number as the previous year. Together, they accounted for just over 10 million overnight stays, a decline of 1.6%.
Despite this slight fall, the UK remains Portugal’s largest international tourism market by revenue. British visitors accounted for 17.7% of overnight stays and 12.5% of guests registered in tourist accommodation across the country.
The financial picture is even more revealing. Tourism receipts from the British market reached around €4.28 billion in 2025, an increase of more than 3% compared with the previous year. In other words, Portugal earned more from British tourism even as the number of overnight stays declined.
Card payment data offers a more detailed glimpse into how that money is spent. According to Portuguese payment services company SIBS, transactions made using British bank cards in Portugal totalled €987.3 million in 2025. This figure should not be confused with overall tourism receipts, which cover a much broader range of expenditure.
The Algarve remains the overwhelming favourite
Few international tourism relationships are as firmly established as the one between British holidaymakers and the Algarve. In 2025, the southern region accounted for approximately 57% of all overnight stays by British visitors in Portugal.
Madeira followed at a considerable distance, with nearly 19%, while Greater Lisbon accounted for around 13%.
Bank card spending tells a similar story. Half of all purchases made using British cards in Portugal (50.1%) took place in the Algarve. Greater Lisbon represented 22.4% of spending, followed by Northern Portugal at 9.9% and Madeira at 9.1%.
But the profile of British visitors is more varied than the familiar image of retirees escaping the winter weather. In fact, 25–34-year-olds represented the largest age group, accounting for 19.7% of British tourists. They were followed by visitors aged 55–64 (18.1%) and 35–44 (17.3%).
British travellers also tend to stay for several days rather than making short visits. Almost 72% of trips involve between four and thirteen nights. Hotels account for slightly more than half of all overnight stays, followed by aparthotels and holiday apartments.
Portugal remains one of Britain’s favourite overseas destinations
The importance of British tourism to Portugal also reflects the sheer volume of travel between the two countries. In 2025, Portugal ranked as the sixth most visited overseas destination among UK residents, attracting approximately 3.77 million trips.
An extensive network of direct flights helps sustain that demand. Between September 2025 and September 2026, easyJet and Ryanair together operated almost 60% of air connections between the two countries. Jet2, British Airways and TAP Air Portugal accounted for much of the remaining capacity.
London dominates the market, representing almost half of departures to Portugal, well ahead of Manchester, Bristol and Birmingham.
And there are signs that British interest in Portugal is far from fading. Airline booking data for the coming months points to growing demand for several Portuguese destinations. Porto is expected to see the strongest growth, followed by Funchal, Lisbon and Faro.
After decades of close ties with the Algarve, British tourism may be entering a new phase, with more visitors exploring destinations beyond the traditional southern holiday hotspots.
For now, however, the economic significance of the UK market remains unmistakable. With more than €4 billion in annual tourism revenue at stake, British visitors continue to play a central role in Portugal’s tourism industry.
