Tourists from the U.S. Spend €200 per Day on Average
Portugal is getting ready for a possible drop in visitors from the United States this year. In 2024, American tourists spent about €2.9 billion in Portugal. On average, each person spent over €200 per day. The U.S. is one of the most important tourist markets for Portugal.
Fear of a Recession, a Strong Dollar and Travel Insecurities Impacts U.S Consumers
But now, several problems may stop many Americans from traveling. People in the U.S. are worried about a possible recession, the strong euro makes trips abroad more expensive, and consumer confidence is going down. These changes could lead to fewer bookings in 2025.
People are however not only feeling economic pressure. Yes, prices are high, and many are worried about the future. But at the same time, international news has shown that U.S. border checks are becoming stricter. Some American travelers may now feel less comfortable traveling in general.
The Portuguese tourist sector anticipates a significant retraction in search of US tourists, motivated by the instability generated by Donald Trump's economic and commercial policies.
Airlines, Hotels, and Restaurants Could Lose Money
This expected drop in tourism will likely affect many areas of the economy. TAP, the Portuguese airline that controls almost 29% of flights between the U.S. and Portugal, may have to cancel or reduce some routes. Hotels, local shops, restaurants, and tour companies may also earn less this year. Portugal could lose a lot of income, and the luxury tourism sector could suffer more than others because American visitors usually spend more money and stay longer than European tourists.
Madeira More Vulnerable Than Mainland Portugal
Even though these problems are not caused by Portugal, the country could be affected by the results. Portugal depends a lot on tourism, which is responsible for about 15% of its economy. In Madeira, the dependency on tourism is about twice as high, making the island much more vulnerable than the mainland. If U.S. tourist numbers fall, the entire economy could feel the impact.
Does Madeira Need More Tourism from Elsewhere? Experts Suggest Quick Response and New Strategies
According to CNN, experts are asking the government to act quickly. One of their ideas is to reduce dependence on American tourists by attracting visitors from other countries. Canada, Switzerland, and the United Arab Emirates are considered to be good options, especially in the luxury travel market.
Sources:
CNN Portugal
Diário de Notícias
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