Domestic tourism in Portugal is booming, and nowhere is this more evident than in the Algarve as we close out another successful and busy summer. The region has become a natural choice for short breaks. In fact, last year saw domestic overnight stays grow by 22.2%, far outpacing international growth at just 4.6%, and this year has been increased again so far. For many Portuguese families, couples, and even solo travellers, short-term stays in the Algarve now offer the perfect balance of affordability, convenience, and lifestyle.
The Algarve, a top favorite, has seen strong trust from locals earning 39.5% of votes in 2025 as Portugal’s Most Trusted Tourism Region – The Portugal News
Why the Algarve Is Leading the Trend
The Algarve has long been a tourism leader in Portugal, and the latest figures confirm its staying power. According to national data, the region welcomed 5.2 million guests in 2024, while Faro Airport handled nearly 9.8 million passengers. A large share of this growth came from Portuguese residents themselves, showing a strong sense of trust and loyalty in their top holiday destination.
For weekenders driving down from Lisbon, Setúbal, or Porto, the Algarve offers everything needed for a quick recharge: beachside towns, a familiar feel and an extensive choice of holiday homes to rent in Portugal. The mix of modern infrastructure and laid-back coastal charm keeps locals returning year after year.
What Makes Short-Term Rentals So Attractive?
1. Affordability and Flexibility
Compared with hotels, short-term stays in private rentals are often more economical, particularly for families or groups. Many travellers find that self-catering villas or apartments reduce overall costs, while offering flexibility for shorter bookings of just two or three nights.
2. Authentic Local Living
Rather than staying in large resorts, Portuguese travellers increasingly prefer smaller properties in residential areas or traditional villages. This allows them to experience a more genuine connection with the Algarve.
3. Sustainable and Community-Friendly
Smaller holiday properties tend to have a lighter environmental footprint than large hotels. At the same time, they keep tourism revenue circulating in the community, directly supporting local families who rent out their homes for weekend breaks.
Trends Driving Domestic Tourism
- Shorter average stays: In 2024, domestic trips averaged 4.07 nights, aligning perfectly with weekend or long-weekend getaways.
- Last-minute habits: Many Portuguese travellers now book just days or weeks in advance, adapting plans to work and family schedules.
- Seasonal flexibility: Instead of relying solely on peak summer, more domestic visitors are choosing spring and autumn escapes, spreading tourism more evenly across the year.
Tips for Owners in the Algarve
For property owners, this shift presents an opportunity to capture a growing segment of local travellers. Strategies that resonate with this audience include:
- Having your rental appear in searches originating from Lisbon or Porto ahead of national holidays.
- Highlighting features that suit weekend trips, kitchens, outdoor terraces, and beach proximity.
- Creating value-added weekend packages, such as surf lessons, yoga sessions, or wine tastings, to enhance the experience.
Summary
The rise of domestic staycations shows that Portuguese travellers are seeing the Algarve with fresh eyes. Affordable, authentic, and sustainable, short-term rentals have become a core part of this shift. From modern apartments to Algarve Portugal rental villas, the options are diverse enough to meet every preference.
For travellers, these stays bring a chance to enjoy a familiar region in a new way. For owners, they represent a stable and growing demand that is reshaping the local market. As more locals choose to holiday close to home, the Algarve remains at the heart of Portugal’s tourism story welcoming visitors not just from abroad, but from within.
