For years, the Algarve has been the undisputed favourite of British holidaymakers and in 2025, that hasn’t changed. But something new has: a meaningful rise in American travellers choosing Portugal, and increasingly, the Algarve.
This shift opens major opportunities for holiday-rental companies, villa owners and investors, especially as long-haul visitors often stay longer and spend more.
First 2024 Set Up a Strong 2025
Portugal’s tourism growth continued to exceed expectations back in 2024.
- In 2024, Portugal received ≈ 31.6 million guests and ≈ 80.4 million overnight stays, the highest figures ever recorded.
Source: Turismo de Portugal – Annual Tourism Figures 2024
https://www.turismodeportugal.pt/en/Turismo_Portugal/visao_geral/Pages/default.aspx - International visitors dominated the market with ≈ 56.4 million overnight stays in 2024.
Source: The Portugal News – “Brits Continue to Choose Portugal”
https://www.theportugalnews.com/news/2025-02-16/brits-continue-to-choose-portugal/95585 - The United Kingdom remained Portugal’s #1 tourist market with ≈ 2.46 million British guests and over 10.2 million overnight stays in 2024.
Source: TravelBI (Turismo de Portugal) – UK Market
https://travelbi.turismodeportugal.pt/en/markets/united-kingdom/
This dominance fed directly into the Algarve.
The Rise of American Visitors Through 2025
While British tourists still dominate the Algarve market, the United States market saw one of the strongest growth rates of 2025.
Key 2025 findings:
- Between January–September 2025, the USA was among the top-growing markets for overnight stays (“dormidas”) in Portugal — alongside Germany and Canada.
Source: TravelBI (September 2025 tourism report)
- In July 2025, US tourist numbers in the Algarve grew more than 20% year-on-year, according to regional tourism data.
Source: The Portugal News – “Algarve Still Top Holiday Destination”
https://www.theportugalnews.com/news/2025-09-02/algarve-still-top-holiday-destination/869690 - The US market hit ≈ 2.3 million visitors in Portugal in 2025, making it one of the country’s fastest-rising source markets for the second consecutive year.
Source: Turismo de Portugal – Statistics
https://www.turismodeportugal.pt/en/Turismo_Portugal/visao_geral/
And crucially, Americans stay longer than Europeans, averaging 13.3 nights per trip in Portugal.
This is a significant opportunity for Algarve holiday-rental property owners.
What This Means for Holiday Rental Owners in the Algarve
1. UK demand remains your foundation
Brits still make up the majority of tourists — and they continue booking villas, apartments and family homes at high rates. UK-focused marketing remains essential.
2. The US market offers real growth
With over 20% growth in Algarve arrivals, the American market is no longer niche, it’s becoming mainstream.
3. Americans book and spend differently
Patterns include:
- Longer stays
- Preference for higher-quality amenities
- Strong interest in coastal towns (Lagos and Carvoeiro)
- Higher average spend on accommodation
4. Tailoring to North American expectations pays off
What US guests look for, compared with Europeans:
- Reliable high-speed Wi-Fi
- Spacious king-size beds
- Air conditioning throughout
- Clear instructions & high customer service
- Work-friendly spaces
- Modern kitchens & coffee machines
Owners of holiday rental properties can boost bookings simply by highlighting these amenities.
5. Better year-round occupancy
US travellers aren’t tied to school holidays and often travel outside peak summer months, ideal for improving shoulder-season revenue.
From UK-Centric to Global
The Algarve is still the leading beach destination for UK tourists and 2025 data confirms that’s not changing anytime soon.
But the growing presence of American visitors introduces a new dynamic:
- Broader international reach
- Higher-spend guests
- Longer stays
- Better occupancy outside summer
- Increased resilience for rental businesses
