Portugal’s tourism sector is facing a significant downturn as travelers increasingly balk at the soaring expenses associated with what was once considered an affordable European destination. The surge in accommodation prices, dining costs, and general day-to-day expenses has pushed Portugal’s popular hotspots into pricing territory traditionally reserved for luxury Caribbean vacations. Industry insiders reveal that visitors, particularly from the UK and other European countries, have started rerouting their holidays to alternative destinations offering better value for money.

Local businesses and tourism officials are raising alarms about an emerging trend potentially threatening the sector’s recovery after pandemic setbacks. Key factors influencing this shift include:

  • A steep rise in rental costs for both short-term stays and local housing
  • Inflation-driven…