Over a dozen percent of Portugal's economic output stemming from tourism industry
In a positive turn of events, the tourism sector has shown significant recovery and growth over the past few years, with many countries experiencing a surge in employment, GDP, and visitor spending.
The tourism sector's contribution to the national economy's GDP has been on the rise, with employment in tourism activities accounting for 9.8% of the total employment in 2023, up from 9.0% in 2021. This growth was also reflected in the sector's financial contributions, as the Direct Gross Value Added Generated by Tourism (VABGT) and Tourism Consumption in the Economic Territory (CTTE) registered nominal increases of 6.5% in 2024.
The sector's growth rate exceeded that of the global economy in 2024, with tourism activity generating a total contribution of 34 billion euros to GDP, corresponding to 11.9%. This growth was supported by both domestic and international tourism demand, as overnight stays in tourist accommodation establishments showed positive growth rates from 2021 to 2024, with higher growth for non-residents.
In 2022, tourism's contribution to the economy's real GDP growth was significant at 3.6 percentage points. The following year, in 2023, tourism contributed 1.2 percentage points to real GDP growth, despite a slight decrease in 2024 to 0.3 percentage points.
The tourism sector's recovery has been particularly noticeable in Portugal, where it maintained the second place in terms of the relative importance of tourism demand in GDP, with a share of 16.6% in 2023. Iceland held the top spot, with a share of 18.9% in 2023.
Wages in the tourism sector represented 8.4% of total wages in the national economy in 2023, though the average wage per worker in the sector was below the national average, corresponding to 91.1% of the national average wage.
In Canada, the tourism sector is projected to reach record highs in 2025, contributing nearly $183 billion to the country's GDP. Domestic visitor spending is expected to reach about $104 billion, showing more than double the year-on-year growth from the previous year, while international visitor spending is forecasted at $34 billion, close to pre-pandemic levels.
Despite a slowdown, the sector's contribution to economic growth remains positive, as indicated by the INE. This robust recovery and expanding economic impact within the travel and tourism industry represent an upward shift compared to previous years.
In conclusion, the tourism sector has shown a remarkable recovery and growth since the pandemic downturn, contributing significantly to the economies of many countries. The sector's upward trend is expected to continue, offering a positive outlook for the future of the global travel and tourism industry.
Tourism's financial contributions in Portugal increased, reflected in the sector's Direct Gross Value Added Generated by Tourism (VABGT) and Tourism Consumption in the Economic Territory (CTTE) registering nominal increases in 2024. The tourism sector's contribution to Portugal's real GDP growth remained significant, maintaining the second place in terms of the relative importance of tourism demand in GDP, with a share of 16.6% in 2023.
