1. Portugal’s Tourism Revenue Soared 10.9% to €6.6 billion in 2024
In 2024, Portugal’s tourism sector experienced a strong surge, with total revenue rising by 10.9% to €6.669 billion, while accommodation revenue reached €5.128 billion. The increase was largely driven by a 4.8% growth in non-residents’ overnight stays, alongside a 2.4% rise in resident stays. Overall, the total number of overnight stays increased by 4%, totaling 80.3 million for the year. December saw 1.9 million guests (+3.6%) and 4.2 million overnight stays (+2.9%), generating €313.8 million in total revenue and €222.5 million in accommodation revenue, highlighting a robust performance in the sector.
The average revenue per available room in December grew by 5.9% to €38.2, while the average daily rate rose 6.4% to €97.4, with Lisbon leading at €118.0. Lisbon accounted for 23.9% of the total overnight stays, showing a 2.6% increase, including a 3.4% rise in non-resident stays. Cities like Vila Nova de Gaia and Ponta Delgada stood out with remarkable increases of 13.3% and 12%, respectively. The fourth quarter saw even more growth, with overnight stays rising 4.7%, driving a significant rise in revenues, with total revenue up 11.7% and accommodation revenue up 12.1%. Note that this continued growth reflects Portugal’s thriving tourism industry, which remains a key driver of the national economy.
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2. Portuguese Airports See 18% Increase in Passengers in 2024
According to the National Statistics Institute (INE), in 2024, Portuguese airports experienced an 18% surge in passenger traffic, with 70.4 million passengers and 4.7 million in December alone, marking a 3.9% increase compared to the same month in the previous year. Daily averages hit historical highs, with approximately 78,000 passengers disembarking in December, a 2.8% rise from the previous year. The total number of commercial flights increased by 12%, reaching 245,900, while cargo and mail handling surged by 14.2%, totaling 254.8 thousand tons. It seems safe to state that these figures reflect Portugal’s resilient air travel sector, which is being able to drive growth amid global challenges.
For comparison, the United Kingdom led as the top country of origin and destination, with increases of 1.4% in disembarking and 1.3% in boarding passengers. France, Spain, Germany, and Italy maintained their positions, despite some decline from France. Note that these results highlight Portugal’s continued attractiveness as a key European hub, not only for passengers but also for cargo, reinforcing its position within the global aviation network. The year’s growth reaffirms Portugal’s role as a strategic and resilient player in the European and global air transport market.
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3. Portuguese Government Increases Investment in Green Bus Fleet
The Portuguese government increased the investment in zero-emission buses by 137 million euros, raising the total for the zero-emission bus fleet to 227 million euros. This funding, part of the Recovery and Resilience Plan (PRR), aims to expand the fleet, purchasing 390 additional buses, bringing the total to 861 by 2026. Note that the initiative also includes installing charging and refueling infrastructure nationwide, covering both metropolitan areas of Lisbon and Porto, as well as several municipalities across the country.
The government prioritizes clean transport and sustainable infrastructure with an average 15-month timeline for the production, delivery, and installation. Municipalities and intermunicipal communities throughout the country are set to benefit, ensuring broader access to zero-emission buses. Lisbon, Porto, and several smaller municipalities, including Albufeira, Coimbra, Braga, and Viana do Castelo, are included in the scope. The expansion supports accessibility to mobility as a right, aiming to leave no one behind in low-demand areas.
Ministers highlight strategic decisions to apply European funds effectively, with Maria da Graça Carvalho, the Portuguese Minister for Energy and the Environment, emphasizing the importance of efficient use for tangible results. The initiative forms part of a broader push for cleaner, greener transport solutions, ensuring that Portugal is on track to meet its environmental goals through sustainable investments and infrastructure developments.
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4. António Costa Sees Concessions Made to Russia Before Peace Negotiations as Unacceptable
At the Munich Security Conference, the President of the European Council, António Costa, stressed that only Ukraine can define when there are conditions for negotiations and rejected imposing concessions before negotiations. He warned that a “comprehensive peace” must not simply be a “ceasefire” or “reward the aggressor” but should guarantee that Russia ceases to be a threat, particularly to Ukraine and Europe’s security. Costa emphasized that such peace must ensure Russia “no longer poses a threat” to “international security.”
He further stated that the European Union will continue to “support Ukraine on all fronts” and will be “stronger, better, and faster” in its efforts to build a defense in Europe. Costa pointed out that the Russian threat is not limited to Ukraine but extends to Belarus, Moldova, Georgia, and the Baltic States, highlighting how it impacts “democratic systems” and “critical infrastructure.” He reiterated that the EU fully assumes its “responsibilities” in the peace process and that “there will be no credible and successful negotiations” without both Ukraine and the EU.
Reflecting on the EU’s evolution since the 2022 invasion, Costa noted that the Union has become a “new geopolitical European Union.” He explained that the EU accelerated its expansion into the Western Balkans and began negotiations with Ukraine and Moldova, while also reducing its dependence on Russian energy in a “huge collective effort.” Costa concluded that “peace without defense is an illusion,” promising that the EU will act collectively to ensure lasting peace, security, and defense.
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5. Lisbon is Among the Most Valued Cities in the Global Luxury Market
Lisbon, which occupies the 10th position among the cities with the highest growth in luxury property prices, demonstrates notable resilience and attraction in the global real estate market. A remarkable 5.3% increase in house prices has allowed it to surpass major cities like Paris, London, and New York, highlighting its status as a prime destination for international investors. According to the latest Prime Global Cities Index, Lisbon’s performance contributes to the global trend of stabilized property markets, with 34 out of 44 cities showing positive growth. As one of the most sought-after luxury markets, Lisbon remains firmly on the radar of high-profile buyers, reinforcing its appeal within the international investment landscape.
Globally, luxury property prices are seeing significant growth, with Seoul leading the charge at 18.4%, followed by Manila and Dubai. Lisbon’s consistent growth, alongside other major cities, reflects the broader trend of a 3.2% global average increase. Despite the challenges posed by inflation in developed economies, optimism prevails for the year ahead. Experts suggest that potential interest rate cuts could further fuel growth in luxury property prices, with Lisbon remaining a key player in this expansion. As a hotspot for investors seeking high-end opportunities, Lisbon solidifies its role as a top destination and a thriving luxury real estate market in a constantly evolving global landscape.
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6. IMGA CEO Believes That “We Can Have Years of International Investment Inflow Into The Portuguese Market”
International investment is increasingly drawn to Portugal, as evidenced by IMGA’s success in attracting foreign capital through their equity fund. Note that IMGA is the second-largest asset manager in Portugal, with €4.8 billion in assets under management. With over 90% of the fund’s investors coming from abroad, the firm has helped bring much-needed liquidity to the Portuguese stock exchange. According to CEO Emanuel Silva, the growing international interest, particularly from investors in the U.S. and the U.K., signals a positive trend for the Portuguese market. “We can have years of investment inflows into Portugal,” he confidently states, highlighting the opportunity for growth.
The Golden Visa program has played a crucial role in this influx, with foreign investors eligible for residency by investing in Portuguese funds, particularly in IMGA’s equity fund. As international demand for these investment vehicles rises, IMGA has positioned itself as a key player, capitalizing on Portugal’s increased international profile. Emanuel notes that the country’s improved international rating, coupled with rising attention from prominent global investors, contributes to Portugal’s appeal as a solid investment destination.
In response to this trend, IMGA plans to broaden its portfolio in 2025, particularly through private equity and real estate funds aimed at foreign investors. With international markets eyeing Portugal’s emerging potential, IMGA seeks to further attract foreign capital to boost the local economy. As Portugal becomes more visible on the global investment map, IMGA’s strategic expansion, which is fueled by international interest, ensures continued growth and relevance in the Portuguese financial landscape.
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7. Foreign-Capital-Controlled Banks Represent 60% of the Portuguese System
More than 60% of the Portuguese banking system is controlled by foreign capital, including major banks like BCP, Santander Totta, Novo Banco, BPI, Bankinter, and Abanca, representing both assets and liabilities. Foreign control has strengthened since 2016 when it represented 50%, reflecting a significant rise in investments from Spanish, Angolan, Chinese, and U.S. entities. BCP, for instance, has major shareholders such as Fosun and Sonangol, while Spanish influence, with Caixabank’s acquisition of BPI and Santander Totta’s absorption of Banif, intensifies the foreign presence.
Over the last decade, Spanish capital has grown, accounting for almost 30% of Portugal’s banking system by June 2024. This shift includes notable acquisitions such as the BPI takeover and Bankinter’s expansion. The retreat of Angolan investors, notably Isabel dos Santos’ Santoro group, contrasts with the continued Chinese capital presence, such as Fosun’s majority share in BCP. Despite a decrease in visibility, these investors continue to influence the market, positioning themselves as established stakeholders in the Portuguese banking ecosystem.
The U.S.-based Lone Star holds a 75% stake in Novo Banco, signaling major changes as they prepare for an IPO, which will alter the national banking landscape. Additionally, the sale of Novo Banco, a significant player in the sector, will contribute to reshaping Portugal’s financial dynamics. Note that this ongoing foreign investment in Portuguese banking strengthens the sector’s international ties and signals potential structural shifts and consolidation in the coming years.
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8. Portugal May Have a Privileged Position to Make a Positive Contribution to Europe’s Green Transition
Portugal’s privileged position to help Europe’s green transition is highlighted by its renewable energy penetration, competitive electricity prices, and valuable raw materials like lithium. The Secretary of State for the Economy, João Rui Ferreira, states that Portugal aligns with the European vision and challenges, reinforcing the importance of strengthening the industrial sector and fostering innovation. The European Commission’s speech on non-negotiable goals echoes the need for urgent action, yet the pace remains open for discussion.
Looking at the Draghi Report and Compass for Competitiveness, the Secretary of State sees Portugal contributing positively to Europe’s green industrial movement. He emphasizes the importance of enhancing the industrial fabric, increasing transformation capacity, and adding value to the economy. Initiatives like the one-billion-euro green industry program, focusing on decarbonization, are already in motion, targeting SMEs to drive transformative growth.
Closing the innovation gap is critical for Europe, and the Secretary of State believes Portugal should lead the technological wave. With a focus on emerging technologies, the government has been accelerating mechanisms such as EU funding. Capital access, particularly for startups, remains an area where Europe lags, but Portugal aims to lead in this space, ensuring it stays ahead in global competitiveness.
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9. Corruption Perception Index: Portugal Achieves Worst Result Ever
Portugal dropped nine positions in the 2024 Corruption Perception Index, reaching its worst result ever with 57 points, a sharp decline from the 61 points in 2023. This slide is attributed to the perception of public office abuse for private gain, notably in scandals like the ‘Operation Influencer’, which led to the resignation of the then Prime Minister, António Costa. Despite ranking higher than Spain and Italy, Portugal shares the 43rd spot with Botswana and Rwanda, marking it as one of the worst performers in Western Europe, with a significant deterioration in evaluations from various sources. Factors like weak law enforcement, nepotism, political favoritism, and insufficient public sector transparency have contributed to the country’s worsened reputation.
The Transparency International (TI) report points to structural issues in Portugal’s anti-corruption strategy, including a lack of political commitment, inadequate public integrity mechanisms, and persistent flaws in enforcement. Note that TI Portugal criticized the sluggish justice system, delays in major corruption trials, and the lack of clarity in anti-corruption strategies, highlighting that while new legal measures exist, their implementation and monitoring are insufficient. Recent scandals, such as the one mentioned above, worsened public perception, leading to a growing connection between politics and business, fueling further distrust.
Thus, TI Portugal demands an effective commitment to reform, including accelerating legal processes, enforcing stricter controls on politicians’ assets, and boosting transparency in public institutions. The organization stresses that enhancing the financial and operational autonomy of bodies like the Transparency Authority and MENAC (National Anti-Corruption Mechanism) is vital for independent, effective action. Although some countries managed to improve their corruption rankings, Portugal faces the challenge of reversing its downward trend to restore international trust and ensure stronger governance in the future.
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10. Government Approves Change to the Organizational Structure of the National Anti-Corruption Mechanism
In line with the last Corruption Perception Index, the Portuguese Government approved a restructuring of the National Anti-Corruption Mechanism (MENAC) with a new organizational law, establishing a three-member Board of Directors to replace the previous single-person leadership. This change aims to revitalize MENAC and enhance its role in combating corruption and making it more visible and effective. Note that the restructuring also includes the creation of a new staff framework, expanding hired personnel beyond just the inspector career. Additionally, Minister of Justice, Rita Alarcão Júdice, emphasized the importance of increasing parliamentary oversight to boost MENAC’s capabilities.
This decision to restructure MENAC is one of several measures taken by the Government as part of the ongoing fight against corruption, which also includes progress on the 32 actions from the anti-corruption agenda. It is relevant to consider that the Minister also highlighted positive results, such as the implementation of electronic processing for criminal inquiries, which has proven effective. The draft bill on the extended forfeiture of assets obtained through corruption is nearing its final stages and will soon be presented to Parliament.
In short, the restructuring of MENAC reflects the Government’s commitment to enhancing its anti-corruption efforts, addressing issues such as procedural delays and the need for greater transparency. But, as it may not be enough, the Minister of Justice noted that a new working group focused on improving procedural speed and tackling dilatory tactics will soon begin its work.
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