Since 1 November, Portugal has had a new decree on tourism that reinforces the powers of municipalities to regulate short-term rental activity. Local communities now have a great and unique opportunity to implement proportionate rules that respond to local needs, while preserving the ability of local families and businesses to continue to benefit from tourism. Airbnb calls on municipalities in Portugal to collaborate in creating specific rules that support the right to live, host and travel in their communities, in accordance with national and European rules for short-term accommodation (STR), according to a statement from Airbnb.

The company goes on to highlight that a new study by Oxford Economics provides a clear view of the positive impact that Local Accommodation has on local economies in rural regions and the interior of the country. “In Portugal, AL has been essential for revitalizing local economies, supporting jobs and diversifying the country’s tourism offer”, highlights the prestigious analysis company.

The Economic Impact of Local Accommodation in Portugal

In 2023, 39.5 million guest nights were recorded in AL in Portugal, with these guests spending just under 6.4 billion euros in the local economy. Of these, 23% (1.5 billion euros) were paid directly to AL hosts. In total, AL activity contributed almost €7.3 billion to Portugal's national GDP in 2023, supporting around 120,500 jobs. These numbers underline the crucial role of AL in economic growth and job creation in Portugal's local economy.

Of the 39.5 million nights spent in AL, domestic travellers accounted for 13% in 2023. Other important source markets include Spain, with 11%, and Germany, with 9%. Travelers from the United States accounted for 8% of total overnight stays, while 46% came from other European and international markets. Furthermore, international guests represented 91% of total expenses associated with AL, which highlights AL's strong attractiveness to European and international tourists.

Studies show that AL not only generates direct income for owners but also stimulates demand for nearby restaurants, stores and services, contributing to the overall growth of local economies. This support for the local economy is crucial, especially in remote areas that are not as prosperous as large cities. Local Accommodation has consolidated its presence throughout the Portuguese territory, generating considerable economic benefits for local communities, particularly in rural and sparsely populated areas, ensuring that regions outside of large cities, such as Lisbon and Porto, also benefit from spending tourists.

Across the European Union, the majority of AL stays (55%) occur in non-urban locations, with the number of nights spent in predominantly rural areas more than doubling since 2020. Additionally, half of guests booking accommodation through Airbnb in key EU cities visit neighborhoods they would not otherwise explore (44%), thus spreading the economic benefits of tourism beyond urban centers.

“Local accommodation has become a popular accommodation alternative for many European travelers, as they opt for the convenience and accessibility that this type of accommodation offers. This also contributes to local investment and the revitalization of rural areas in Portugal. It is essential to approach your regulation with balance and consideration to maintain these benefits”, says Sara Rodríguez, Campaign and Policy Lead at Airbnb in the Iberian region.