Travel and Tourism in Portugal

Travel and Tourism in Portugal
Report Details:
Published:September 2012
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Price: Single User License – US$1900

Discover the latest market trends and uncover sources of future market growth for the Travel and
Tourism industry in Portugal with research from Euromonitor's team of in-country analysts.
The Travel and Tourism in Portugal market research report includes:
•Analysis of key supply-side and demand trends
•Detailed segmentation
•Historic volumes and values, company and brand market shares
•Five year forecasts (of market share, market trends, market growth)
•Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
•What is the market size of Travel and Tourism in Portugal?
•What are the major brands in Portugal?
•What are the major brands in Portugal?
Why buy this report?
•Gain competitive intelligence about market leaders
•Track key industry trends, opportunities and threats
•Inform your marketing, brand, strategy and market development, sales and supply functions
EXECUTIVE SUMMARY
Travel and tourism in Portugal proves resilient to crisis
The Portuguese travel and tourism market has shown strong resilience in the face of the economic
crisis which has affected both Portugal and the rest of the EU. While the decline in Portuguese
consumers’ purchasing power has hampered outgoing tourism flow, Portuguese tourists have
increasingly opted for domestic trips. In addition, efforts to promote Portuguese travel and tourism
abroad have been successful in attracting foreign tourists. This enabled travel and tourism to
perform more strongly in 2011 than in 2010 with some major categories performing more strongly
than during the benchmark year of performance in 2008.
Austerity measures change tourist consumerism
Despite the positive performance of travel and tourism in Portugal in 2011, the austerity measures
imposed by the Portuguese government and by the governments of other European countries
have led to changes in tourist consumerism. In order to meet consumer demand for good price-
quality tourist packages, operators in travel and tourism have engaged in various promotions with
the aim of attracting tourists by offering appealing services and products at increasingly

competitive prices. This growing competitiveness has been a positive factor behind the
performance of travel and tourism.
Luxury tourism performs well
The financial situation in Portugal at the end of the review period indicated an increasing gap
between consumers in different income brackets. While there has been a continued decline in the
level of purchasing power and demand of low-income tourists, demand for luxury services has
remained among affluent tourists. This has led to strengthening of the trend of luxury tourism. In
2011, luxury travel accommodation facilities were in high demand and they registered elevated
occupancy rates.
Low cost carriers continue to achieve strong growth
The dynamism created by low cost airlines continued to boost the performance of travel and
tourism in Portugal in 2011. Supported by powerful marketing structures and strategies based on
the offer of low-fare air connections, companies such as Ryanair Holdings Plc, easyJet Airline Co
Ltd and Transavia Airlines CV have managed to attract tourists. This has fuelled the trend of city
breaks. As well as encouraging Portuguese tourists to travel to European capital cities, such as
Paris, London, Rome and Amsterdam among others, it has also encouraged foreign tourists to
visit various Portuguese cities, such as Porto, Lisbon, Faro and Funchal.
Economic recovery expected to drive positive forecast period performance
Despite a continued level of economic uncertainty, the economic situation across the EU is
expected to start to recover from the adverse climate over the review period and sustainable
economic growth is expected to occur. This is expected to form the basis of the positive
performance of travel and tourism in Portugal over the forecast period. Nevertheless, economic
and financial recovery in Portugal is expected to face various difficulties over the forecast period,
with intensification of the government’s austerity measures a certainty in 2012. This is expected to
hamper opportunities for growth in outbound tourism flow and domestic tourism flow.

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Major points covered in Table of Contents of this report include
Table of Contents
Travel and Tourism in Portugal - Industry Overview
EXECUTIVE SUMMARY
Travel and tourism in Portugal proves resilient to crisis
Austerity measures change tourist consumerism
Luxury tourism performs well
Low cost carriers continue to achieve strong growth
Economic recovery expected to drive positive forecast period performance
KEY TRENDS AND DEVELOPMENTS
Tourism an opportunity for recovery of Portuguese economy
National tourism strategy fuels development of travel and tourism
New legislation aims to prevent losses to tourists in travel retail

The increasing importance of the internet and social media
Luxury tourism unaffected by unstable economic climate
Impact of external factors on travel and tourism
Performance of emerging source countries benefits travel and tourism
Golf tourism gains prominence
DEMAND FACTORS
Table 1 Leave Entitlement: Volume 2006-2011
Table 2 Holiday Takers by Age: % Breakdown 2006-2011
Table 3 Seasonality of Trips 2006-2011
BALANCE OF PAYMENTS
Table 4 Balance of Tourism Payments: Value 2006-2011
DEFINITIONS
Tourism Flows
Tourism Receipts and Expenditure
Travel Accommodation
Transportation
Car Rental
Travel Retail
Tourist Attractions
Online Sales
Health and Wellness
SOURCES
Summary 1 Research Sources
Travel and Tourism in Portugal - Company Profiles
Espirito Santo Turismo SA in Travel and Tourism (Portugal)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Espirito Santo Turismo SA: Competitive Position 2011
Europcar Portugal Lda in Travel and Tourism (Portugal)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Summary 7 Europcar Portugal Lda: Competitive Position 2011
TAP - AirPortugal SA in Travel and Tourism (Portugal)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Summary 10 TAP - AirPortugal SA: Competitive Position 2011

Vila Galé SA in Travel and Tourism (Portugal)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Summary 13 Vila Galé SA: Competitive Position 2011
Car Rental in Portugal - Category Analysis
HEADLINES
TRENDS
Despite its increasing importance within travel and tourism, car rental has proven to be very
volatile in the context of economic cycles in Portugal. After proving unable to take advantage of its
good performance over the first half of the review period, car rental suffered a decline in current
retail value terms in 2008, which continued in 2009 due to the severe financial difficulties affecting
the European economy. Nevertheless, the short-lived recovery of the Portuguese economy
registered in the first quarter of 2010, along with the reinstatement of inbound tourism flows, was
sufficient to generate improvement in the performance of car rental. In 2011, car rental was able to
further consolidate its position in travel and tourism.
COMPETITIVE LANDSCAPE
In continuation of its performance over the review period, Europcar Portugal Lda continued to
account for the highest retail value share of car rental in 2011. Driven by mature management
policies, this company has been able to consolidate its position in car rental. The company’s direct
competitors in Portugal are Hertz Portugal SA and Sovial - Sociedade Viaturas Aluguer Lda, which
owns the Avis brand in Portugal.
PROSPECTS
Car rental is expected to maintain its positive performance of 2011 and to continue to achieve
growth over the forecast period. Despite the instability of the Eurozone and in particular of the
Portuguese economy, it is anticipated that this negative financial situation will be overturned over
the forecast period. This is expected to have a favourable effect on the level of disposable income
of European tourists and, consequently, on demand for products such as car rental that boost
tourist comfort while on holiday.
CATEGORY DATA
Table 5 Car Rental Sales by Category and Location: Value 2006-2011
Table 6 Car Rental Sales: Internet Transaction Value 2006-2011
Table 7 Structure of Car Rental Market: 2006-2011
Table 8 Car Rental National Brand Owner Market Shares 2007-2011
Table 9 Car Rental Brands by Key Performance Indicators 2011
Table 10 Forecast Car Rental Sales by Category and Location: Value 2011-2016
Table 11 Forecast Car Rental Sales by Category: Internet Transaction Value 2011-2016
Health and Wellness Tourism in Portugal - Category Analysis
HEADLINES
TRENDS
Aside from a considerable increase in number of foreign tourists choosing to enjoy the range of

products in health and wellness tourism, the survival of this category has been highly dependent
on demand among domestic tourists. Despite the instability of the Portuguese economy, which
has resulted in a decrease in the level of disposable income and of the purchasing power of many
Portuguese consumers, health and wellness tourism experienced a year of recovery in 2011 and it
was thus able to overcome the adversity of 2009 and 2010.
PROSPECTS
Health and wellness tourism is expected to continue to consolidate its positive performance over
the forecast period. In order to do so, spa related companies are expected to receive crucial
assistance from both Portugal Thermae and the Portuguese Tourism Board. It is anticipated that
these institutions will continue to dedicate their efforts to publicising the category’s potential both at
an international level, through attendance at international fairs and events, and domestically, with
participation in local fairs and regional events. The internet and online social networks are also
expected to become increasingly important as a marketing tool.
CATEGORY DATA
Table 12 Number of Hotel/Resort Spas: Units 2006-2011
Table 13 Health and Wellness Tourism Sales by Category: Value 2006-2011
Table 14 Spa Consumer Markets: Domestic Tourism 2006-2011
Table 15 Spa Consumer Markets: Arrivals 2006-2011
Table 16 Forecast Health and Wellness Tourism Sales by Category: Value 2011-2016
Tourism Flows Domestic in Portugal - Category Analysis
HEADLINES
TRENDS
The 2008-2011 period reflected the way in which the evolution of domestic tourism flows is largely
influenced by internal economic cycles. In 2009, the adverse financial climate in Portugal drove
domestic tourists to rein in their level of tourism expenditure, leading to a considerable increase in
domestic trips. Despite the economic improvements registered over the first half of 2010, the
financial instability which continued to affect the Portuguese economy prompted domestic tourists
to moderate their spending and consequently there was a decline in number of domestic trips in
2010.
PROSPECTS
In 2012, as a result of the adverse financial climate which is expected to undermine the
Portuguese economy, Portuguese tourists are expected to continue to holiday domestically.
However, over 2013-2016 this scenario is expected to change. From 2013 onwards the
Portuguese economy is expected to show signs of stability and improvement as a result of which
Portuguese consumers’ purchasing power is expected to increase. This in turn is expected to lead
to a decline in number of domestic trips as Portuguese tourists start to favour holidays in foreign
countries.
CATEGORY DATA
Table 17 Domestic Tourism by Destination: 2006-2011
Table 18 Domestic Tourism by Purpose of Visit and by Mode of Transport: 2006-2011
Table 19 Domestic Tourist Expenditure: Value: 2006-2011
Table 20 Method of Payments for Domestic Tourism Spending: % Breakdown 2006-2011

Table 21 Forecast Domestic Tourism by Purpose of Visit and by Mode of Transport: 2011-2016
Table 22 Forecast Domestic Tourist Expenditure: Value: 2011-2016
Tourism Flows Inbound in Portugal - Category Analysis
HEADLINES
TRENDS
Travel and tourism in Portugal has shown strong resilience to external factors. Despite economic
volatility in the Eurozone and in Portugal, over 2010 and 2011 arrivals registered growth in number
of trips which surpassed growth in 2008.
COUNTRY OF ORIGIN
BUSINESS VS LEISURE
CITY ARRIVALS
PROSPECTS
Fuelled by arrivals from the main source countries, in particular Spain, the UK and France,
incoming tourism flows is expected to perform well over the forecast period. According to trade
sources, the economies of most countries in Western Europe are expected to succeed in
overcoming the economic crisis and to recover over the forecast period. Additionally, arrivals from
emerging sources countries such as Brazil, Russia, China, India and Angola are expected to
continue to contribute to the growth in number of trips in arrivals in Portugal.
CATEGORY DATA
Table 23 International Arrivals by City 2007-2011
Table 24 Arrivals by Country of Origin: 2006-2011
Table 25 Leisure Arrivals by Type 2006-2011
Table 26 Business Arrivals: MICE Penetration 2006-2011
Table 27 Arrivals by Mode of Transport: 2006-2011
Table 28 Arrivals by Purpose of Visit: 2006-2011
Table 29 Incoming Tourist Receipts by Geography: Value 2006-2011
Table 30 Incoming Tourist Receipts by Category: Value 2006-2011
Table 31 Method of Payments for Incoming Tourist Receipts: % Breakdown 2006-2011
Table 32 Forecast Arrivals by Country of Origin: 2011-2016
Table 33 Forecast Arrivals by Mode of Transport: 2011-2016
Table 34 Forecast Arrivals by Purpose of Visit: 2011-2016
Table 35 Forecast Incoming Tourist Receipts by Geography: Value 2011-2016
Tourism Flows Outbound in Portugal - Category Analysis
HEADLINES
TRENDS
The poor performance of outbound tourism flows in 2011 reflects the weak state of the Portuguese
economy. The deterioration of the Portuguese financial system which culminated in the request for
a monetary bailout has led to an increase in austerity measures in an attempt to stabilise the
national deficit. Policies such as VAT increases and Christmas bonus cuts, among many others,
have been driving the progressive decrease in Portuguese citizens’ purchasing power. With the
continual decrease in the amount of money that many Portuguese tourists have available to spend
on holidays, the number of trips in departures has decreased. This trend started in 2010 and it

continued in 2011.
DESTINATIONS
BUSINESS VS LEISURE
PROSPECTS
Outgoing flows are expected to return to positive performance in 2012. For this to come about, the
competitive environment amongst airlines is likely to be a determining factor. Low-cost airline
investments in Portugal, mainly from Ryanair, Easyjet and Transavia, are expected to continue
growing in the coming years. With competition increasing and, in order to secure the preference of
Portuguese tourists, price promotions are expected to play an important role in internal business
strategies. New airline connections are also forecast to emerge in the 2012-2016 period.
CATEGORY DATA
Table 36 Departures by Destination: 2006-2011
Table 37 Leisure Departures by Type 2006-2011
Table 38 Business Departures: MICE Penetration % Breakdown 2006-2011
Table 39 Departures by Mode of Transport: 2006-2011
Table 40 Departures by Purpose of Visit: 2006-2011
Table 41 Outgoing Tourist Expenditure by Geography: Value 2006-2011
Table 42 Outgoing Tourist Expenditure by Category: Value 2006-2011
Table 43 Method of Payments for Outgoing Tourism Spending: % Breakdown 2006-2011
Table 44 Forecast Departures by Destination: 2011-2016
Table 45 Forecast Departures by Mode of Transport: 2011-2016
Table 46 Forecast Departures by Purpose of Visit: 2011-2016
Table 47 Forecast Outgoing Tourist Expenditure by Geography: Value 2011-2016
Tourist Attractions in Portugal - Category Analysis
HEADLINES
TRENDS
The number of people visiting Portuguese tourist attractions registered a considerable increase in
2011. This was closely linked to the growth in number of trips of arrivals as well as the decline in
number of trips in departures. As many Portuguese tourists chose not to travel abroad so
frequently in 2011 in order to reduce their expenditure, they opted to visit tourist attractions on
both day and overnight trips.
PROSPECTS
Tourist attractions is are expected to record a healthy performance over the forecast period in
terms of both retail value and volume. The Portuguese Tourism Board is expected to play a crucial
role in this positive performance. By promoting Portugal and its most important and interesting
tourist attractions, the organisation is expected to succeed in encouraging tourists to visit national
sites of interest. In addition, new competitions similar to 7 Maravilhas Naturais de Portugal,
focusing on other types of tourist attractions, are expected to emerge over the forecast period and
to increase the visibility of this category.
CATEGORY DATA
Table 48 Tourist Attractions Sales by Category: Value 2006-2011
Table 49 Tourist Attractions Visitors by Category: 2006-2011

Table 50 Tourist Attractions Online Sales: Internet Transaction Value 2006-2011
Table 51 Leading Tourist Attractions by Visitors 2006-2011
Table 52 Forecast Tourist Attractions Sales by Category: Value 2011-2016
Table 53 Forecast Tourist Attractions Visitors by Category: 2011-2016
Table 54 Forecast Tourist Attractions Online Sales: Internet Transaction Value 2011-2016
Transportation in Portugal - Category Analysis
HEADLINES
TRENDS
Driven in particular by the dynamism of companies in air, transportation has managed to
overcome the decline it experienced in 2009 and it thus achieved current retail value growth over
2010 and 2011. Due to economic constraints, the travel plans of many Portuguese tourists have
been changing. Although, over the review period, domestic tourists were willing to travel abroad,
for example to Spain or France, using their own vehicles, in 2011 there was an increased
preference for less frequent travel but more comfortable forms of transportation, for example
planes.
AIRLINES
TAP - AirPortugal SA managed to retain its position as the leading company in air in 2011,
followed by SATA Internacional, Serviços Transportes Aereos SA, which, despite the increasing
competitiveness of the category, managed to retain its position as the second leading company.
These two companies have a strong tradition and history in Portugal and they are recognised for
their quality standards.
PROSPECTS
Driven by air as well as by other categories, especially rail and cruise, transportation is expected
to prosper over the forecast period. Despite the financial difficulties that Portuguese tourists are
expected to face over 2012-2013 in particular, it is foreseen that they will start to regain confidence
in the economy and that demand will recover.
CATEGORY DATA
Table 55 Transportation Sales by Category: Value 2006-2011
Table 56 Transportation Sales: Internet Transaction Value 2006-2011
Table 57 Airline Capacity: 2006-2011
Table 58 Air by Category: Passengers Carried: 2006-2011
Table 59 Airline Passengers Carried by Distance: 2006-2011
Table 60 Airline National Brand Owner Market Shares 2007-2011
Table 61 Airline Brands by Key Performance Indicators 2011
Table 62 Forecast Transportation Sales by Category: Value 2011-2016
Table 63 Forecast Transportation Sales: Internet Transaction Value 2011-2016
Travel Accommodation in Portugal - Category Analysis
HEADLINES
TRENDS
In 2011, as well as managing to recover from the negative economic factors of 2009, travel
accommodation achieved the highest current retail value growth since 2007. This favourable

performance was directly related to the outstanding results registered in terms of arrivals. The
increase in number of domestic trips also played an important role in the growth of travel
accommodation in 2011.
HOTELS
The continued commitment of M & J Pestana SA to tourist excellence and exclusive and luxury
services is proving successful. This chained hotel operator was able to retain its leading position in
highly varied travel accommodation in 2011. The company was able to consolidate its position,
gaining retail value share from its main competitors, Vila Galé SA and Accor Group. In addition to
the great tradition of Pestana in Portugal, which enables the country’s tourists to have confidence
in the brand, this group continues to invest in expansion in other countries, such as Brazil,
England and Germany. This international investment has also been a positive factor behind
increased brand recognition among tourists worldwide.
PROSPECTS
The growth in number of trips in arrivals and in domestic tourism flows is expected to be crucial to
the growth of travel accommodation over the forecast period.
CATEGORY DATA
Table 64 Travel Accommodation Sales by Category: Value 2006-2011
Table 65 Travel Accommodation Outlets by Category: Units 2006-2011
Table 66 Travel Accommodation by Broad Category: Number of Rooms 2006-2011
Table 67 Regional Hotel Parameters 2011
Table 68 Travel Accommodation Sales: Internet Transaction Value 2006-2011
Table 69 Hotel National Brand Owners by Market Share 2007-2011
Table 70 Hotel Brands by Key Performance Indicators 2011
Table 71 Forecast Travel Accommodation Sales by Category: Value 2011-2016
Table 72 Forecast Travel Accommodation Outlets by Category: Units 2011-2016
Table 73 Forecast Travel Accommodation Sales: Internet Transaction Value 2011-2016
Travel Retail in Portugal - Category Analysis
HEADLINES
TRENDS
In the context of the challenging economic situation in most EU countries and particularly in
Portugal over the second half of the review period, many companies in travel retail managed to
modernise and adapt to changing trends and demand. This enabled the category to grow in
current retail value terms over 2010-2011 following the decline in 2009.
LEISURE TRAVEL
CORPORATE BUSINESS TRAVEL
In line with the review period, Espirito Santo Turismo SA managed to remain the leading player in
travel retail in 2011. With four recognised brands operating in travel retail, specifically Mundo VIP,
Top Atlântico, Top Atlântico DMC and NetViagens, this company was able to consolidate its
position in travel retail in 2011 and to register an increase in terms of retail value share. As well as
being connected with the well-known and reputed Portuguese bank Banco Espirito Santo (BES),

this company was a national pioneer in terms of travel retail online sales with its NetViagens brand
and it is the only company to have a specialist business travel retail brand, Top Atlântico DMC.
The combination of these factors has contributed to its strong position.
PROSPECTS
Travel retail is expected to be one of the categories of travel and tourism most afected by the
expected instability of the Portuguese economy over the forecast period. At the end of the review
period, the Portuguese government had already decreed that all state employees receiving over
EUR1,000 per month will receive neither a Christmas bonus nor a holiday bonus in 2012.
According to trade sources, with a number of well-known and influential Portuguese economists
and sociologists claiming that this measure goes against social equality, this policy may also
spread to the private sector. This adverse situation is expected to lead to a decrease in the
purchasing power of many Portuguese consumers. As a consequence, non-essential expenses,
such as travel retail related costs, are expected to be more tightly controlled.
CATEGORY DATA
Table 74 Travel Retail Sales by Category: Value 2006-2011
Table 75 Travel Retail Corporate Business Sales: Value 2006-2011
Table 76 Travel Retail Leisure Sales: Value 2006-2011
Table 77 Travel Retail Online Sales by Category: Internet Transaction Value 2006-2011
Table 78 Travel Retail National Brand Owner Market Shares 2007-2011
Table 79 Travel Retail Brands by Key Performance Indicators 2011
Table 80 Forecast Travel Retail Sales by Category: Value 2011-2016
Table 81 Forecast Travel Retail Corporate Business Sales: Value 2011-2016
Table 82 Forecast Travel Retail Leisure Sales: Value 2011-2016
Table 83 Forecast Travel Retail Online Sales by Category: Internet Transaction Value 2011-2016

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