’Exploring new places, cultures, and people is an innate human desire.’

Driven by easy access to information and the social influence of digital technology, which daily showcases idyllic locations, exotic cultures, and inspiring experiences, we are more compelled than ever to embark on journeys of discovery, seeking a life beyond our daily routines. This individual drive for exploration has become a widespread social phenomenon. Today, over 8 billion people inhabit the Earth, and the rising number of international tourists shows that a growing percentage of the world’s population is engaging in travel. As the global economy expands, more people surpass the income threshold that allows them to satisfy basic needs. For many, travel becomes one of the first aspirations they pursue. This is the primary driver behind the rapid growth of international tourism.

Capitalizing on this global trend, Portugal has seen sustained growth in tourism, fueled by the increasing international recognition of its unique value proposition and substantial investment in the sector. Tourism has become the backbone of the Portuguese economy, a fact widely acknowledged by institutions ranging from the government and the opposition to the Bank of Portugal, the ECB, and various international organizations.

The statistics underscore this reality. According to INE, 2022 saw a 72.7% nominal increase in the Gross Value Added (GVA) generated by tourism compared to 2021, as per preliminary estimates from the Tourism Satellite Account. This remarkable post-pandemic recovery demonstrates the resilience of the tourism sector. In 2022, tourism GVA represented 8.9% of the national GVA, surpassing 2019 levels, when it accounted for 8.1%. Additionally, Tourism Consumption in the Economic Territory (CTTE) reached 15.8% of GDP, exceeding the 15.3% recorded in 2019.

Using the Integrated System of Symmetric Input-Output Matrices to analyze the main results of the Tourism Satellite Account, it is estimated that tourism activity directly and indirectly contributed €29.2 billion to Portugal’s GDP in 2022, equivalent to 12.2% (compared to 7.8% in 2021 and 6.6% in 2020).

On the external accounts front, according to the Bank of Portugal, the tourism balance ended 2022 with a positive balance of €18.7 billion. Tourism exports accounted for 21% of the country’s total exports in 2022.

While mobility restrictions during the pandemic partly explain the sector’s performance in 2022, Horwath HTL Portugal believes that this growth is not only a temporary recovery but a structural trend. INE’s May 2023 rapid estimate reveals sustained growth in key tourism indicators in Portugal, confirming this view. From January to May, the number of overnight stays increased by 12.8% compared to 2019, reaching 26.55 million stays, closely linked to a 12% rise in passengers at national airports during the first half of the year compared to 2019.

The importance of tourism as an economic driver and its role in fostering social and economic cohesion is increasingly recognized by stakeholders in Portugal. However, new challenges are emerging, including rising pressure on local communities, natural resources, and infrastructure, which pose risks that need to be understood and addressed effectively.

Recognizing these dynamics, Horwath HTL identified Essentia—an experienced partner with over 28 years in the Portuguese tourism sector—as the ideal ally to relaunch its operations in Portugal. As a result, Horwath HTL Portugal was established in June.

Fully integrated into the global network, Horwath HTL Portugal brings a value proposition of innovation, sophistication, and expertise to the national market and the PALOP region. Partnering with investors, companies, and institutions, we develop tailored solutions to meet today’s biggest challenges:

– Restructuring and consolidating the sector: Through specialized M&A services for the hospitality industry.

– Enhancing skills and innovation: Helping attract and integrate international brands while respecting European Taxonomy standards and focusing on talent development.

– Preparing territories and their stakeholders:** Implementing engagement methodologies to systematically integrate the value generated by the tourism sector.

Horwath HTL is 100% focused on the tourism sector, its opportunities, and its challenges. As a fully independent entity with over a century of expertise and 52 offices worldwide, we leverage a unique pool of talent, dedicated to analyzing, designing, and implementing solutions that best suit each client’s needs. This is why we are recognized as a global leader and reference point in consultancy for hospitality, tourism, and leisure.