The production value of travel agency and tour operator services in Portugal saw a robust increase over the last decade, peaking at 3.12 billion Euros in 2023. From 2013 to 2019, the market experienced steady growth, with year-on-year variations typically ranging between 3% and 16%. However, the COVID-19 pandemic in 2020 resulted in a dramatic decrease of 75.28%. Post-2020, the sector exhibited a strong recovery with significant gains, particularly in 2021 with a 165.68% year-on-year growth, followed by 42.13% in 2022 and 21.64% in 2023. Over the last five years leading up to 2023, the compound annual growth rate (CAGR) stood at 4.15%.
As we approach 2024, the forecasted values suggest continued growth albeit at a slower pace, with a 5-year CAGR of 1.16% until 2028. The forecast predicts that the production value will reach 3.39 billion Euros by 2028.
Trends to watch for include:
- Continued recovery and stabilization post-pandemic.
- Increased digitalization and the use of technology in travel bookings.
- Growing demand for sustainable and eco-friendly travel options.
- Possible impacts from geopolitical factors and economic shifts affecting tourism.