Tourist accommodation establishments recorded 3.4 million guests and 9.6 million overnight stays during the month, increases of 1% and 2.1% respectively compared with July 2025, according to new figures from the National Statistics Institute (INE).

The return of growth among international visitors was particularly notable after foreign overnight stays fell in June for the first time in eight months.

In July, overnight stays by non-residents increased 0.7% to 6.6 million, while domestic tourism performed considerably more strongly, rising 5.1% to 3.1 million overnight stays.

The improvement also translated into higher revenues. Tourist accommodation generated €923.7 million in total revenue during July, up 4.9% year-on-year, while room revenue increased by the same percentage to €734.4 million.

US market falls

The United States was one of the notable exceptions to the overall growth.

Overnight stays by US residents fell 3.1% compared with July last year, representing around 19,300 fewer nights.

It was only the second year-on-year decline recorded by the US market since the pandemic. The previous fall came in February 2025, when overnight stays dropped 4.4%.

The July decline was concentrated particularly in Greater Lisbon, which recorded around 16,900 fewer American overnight stays, a fall of 6%. The Algarve was also down, recording approximately 6,300 fewer nights from US visitors, a decline of 6.7%.

The North moved in the opposite direction, with American overnight stays increasing 9.3%, equivalent to around 10,700 additional nights.

Despite July’s decline, the US market remains up 3.4% over the first seven months of 2026.

It has become increasingly important to Portuguese tourism in recent years. In 2025, Americans generated almost 5.5 million overnight stays in Portugal, making the US the country’s third-largest international market by this measure.

British market remains number one

The UK retained its position as Portugal’s largest foreign tourism market in July, accounting for 18.4% of international overnight stays and growing 3%.

Spain followed with a 10.8% share and growth of 1.6%, while Germany accounted for 9.3% and recorded a 5.3% increase.

Poland produced the strongest growth among the ten largest international markets, rising 10.8%, while France recorded the steepest decline at 5.9%.

There were also significant regional differences.

The Alentejo recorded the largest increase in overnight stays, up 7.7%, followed by the North at 6.3%. The Algarve, Greater Lisbon and North together accounted for 68.4% of all overnight stays in Portugal during the month.

Lisbon remained the country’s most visited municipality by overnight stays, accounting for 15.9% of the national total, followed by Albufeira and Porto.

Portugal’s accommodation sector is also earning more even as growth in visitor numbers remains relatively modest. Average revenue per available room rose 1.8% to €104.30 in July, while the average daily room rate increased 3.2% to €154.90.