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Lisbon leading European performances

Thanks to its rich cultural offer and its numerous infrastructures and popular event venues of all sizes, Lisbon attracts both business and leisure travelers every year.

To revive the economy, Lisbon and its tourism sector relied on business customers, and privatisations enabled the city to gain places in many rankings of cities for the organisation of international events, such as that of the ICCA (International Congress & Convention Association). Lisbon currently accounts for about 80% of the total revenue of the MICE sector in Portugal.

In 2017, the port of Lisbon welcomed 502,000 cruise passengers and Lisbon Humberto Delgado airport is expected to handle around 26 million air passengers if the trend continues until November, representing a 15% increase compared to 2016. Because of this influx of passengers, the opening in Montijo of a second civil airport, dedicated to low-cost airlines, is currently under study.

After stagnating in 2016, the Portuguese capital once again saw its chain supply increase only slightly in 2017 (+0.9%). It is the local chain Turim Hoteis which largely contributes to the positive growth trend, particularly thanks to the opening of Turim Marques de Sa (121 rooms). Lisbon concentrates most of the Portuguese supply, and the small size of the domestic market pushes operators to be cautious when it comes to their medium-term development.

After 4 good years, Lisbon's RevPAR increased enormously (+21.3%), due to a stagnation in supply coupled with a boom in demand. This increase in RevPAR was driven by both growth in occupancy rate (+3.5 points to 82.7%) and a sharp rise in the average daily rate (+16.1%). Portugal showed strong improvement in its performance compared to 2016 (+18.8% RevPAR at national level), the best performance on the European continent.

The main operators, Pestana Hotels and Resort and Vila Gale Hoteis, are two Portuguese groups that operate the majority of their supply in Portugal.

Find all our analyses for Portugal, including performances by range and the detailed supply on our store page.

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