Portugal’s international reputation as a tourism destination continues to rise, making it a prime opportunity for those exploring tourism and hospitality investment through Portugal’s Golden Visa residency by investment programme.
The numbers speak volumes: in August 2024, the country achieved a record-breaking 10.5 million overnight stays, according to the National Institute of Statistics (INE). With breath-taking landscapes, rich cultural heritage, and luxury hospitality offerings, Portugal remains one of the most sought-after destinations globally for Golden Visa residency by investment.
Tourism and hospitality continues to play an important part of Portugal’s economy
Tourism plays a pivotal role in Portugal’s economy, contributing approximately 17% to the country’s GDP in 2023, as per CaixaBank research. This highlights the growing importance of Portugal’s tourism and hospitality for investors.
By 2034, the World Travel & Tourism Council (WTTC) estimates the sector will contribute €66.5 billion—22.4% of the total economy.
Destinations such as Lisbon and Porto captivate urban explorers, while the Algarve and Douro Valley appeal to luxury and leisure travellers.
In fact, the Algarve clinched the prestigious title of ‘World’s Leading Beach Destination’ at the 2024 World Travel Awards.
Portugal’s hotel market reflects this success, with revenue projected to grow from $1.07 billion in 2024 to $1.26 billion by 2029, according to Statista Market Insights. With a 3.32% annual growth rate (CAGR), this upward trajectory presents a lucrative opportunity for investors.
Portugal’s Golden Visa Investment Options
Portugal’s Golden Visa residency by investment programme offers investors a unique opportunity to combine financial returns with residency in Portugal and EU citizenship after 5 years. By investing €500,000 in a Portuguese alternative investment approved for Golden Visa, investors can participate in Portugal’s thriving tourism and hospitality sectors.
However, investment in these sectors has to be in the hospitality business and operations as just owning a real estate asset alone would not qualify for Golden Visa.
Paul Stannard, Chairman and Founder of Portugal Pathways, highlights the advantages of these funds: “Portugal’s alternative investment funds approved for Golden Visa applications allow investors and entrepreneurs to benefit from diversified portfolios and the chance to participate in an industry seeing record growth, while also gaining residency in Portugal and the EU.
"Some of these tourism and hospitality funds in Portugal have acquired operations at way below market value, repositioning and rebranding hotels and putting in new management processes and marketing. This has also helped to improve the quality and standards in the hospitality industry. Bringing in inward investment and specialist knowledge from these alternative investment funds is great for investors and also the Portuguese economy."
Why Portugal is the Ideal Investment Hub
Portugal’s economic outlook is robust, with GDP growth projected to rise from 2.0% in 2024 to 2.3% in 2025, according to the European Commission. This growth outpaces the Eurozone average of 0.8% and 1.3% over the same period. Inflation is also set to decline, enhancing economic stability and boosting investor confidence.
Stannard adds: “Portugal’s economic strength gives investors peace of mind when putting their money into the country. As Portugal’s tourism and hospitality industries continue to set new records, it is no wonder that investors are looking to get involved through Golden Visa-approved alternative investment funds.”
Beyond economic growth, the Golden Visa residency by investment programme offers significant lifestyle benefits, including residency in Portugal and the Schengen Area, which comprises 29 countries.
Investors only need to stay in Portugal for 7 days per year, and after five years, they can apply for permanent citizenship and secure an EU passport.
How to Further De-Risk Your Golden Visa Investment
Portugal’s alternative investment funds sometimes adopt a blended approach, investing across multiple sectors where Portugal is outperforming the market.
This could include luxury hotel operations to benefit from Portugal’s thriving tourism sector, renewable energy, healthcare, luxury goods, tech, international events, and media.
These diversified strategies appeal to investors seeking both more stability and exposure to high-growth opportunities, mitigating risks tied to a single sector.
Paul Sheedy, international advisor to the Portugal Future Fund, an alternative investment fund approved for Golden Visa residency-by-investment in Portugal, said: “A blended approach to investment—spanning sectors such as luxury hospitality and tourism, renewable energy, media, healthcare, and technology —not only aligns with Portugal's dynamic economic landscape but also creates a resilient portfolio that thrives across sectors.
“We have seen time and time again that a blended investment approach can protect against underperforming sectors in a portfolio, giving investors more security and downside protection.”
Portugal’s Investment Future
As Portugal’s tourism and hospitality sectors flourish, they are projected to provide employment for nearly 1.4 million people nationwide. Whether in luxury real estate, high-end hotels, or tourism-focused businesses, the growth potential is substantial.
For investors, high-net-worth individuals (HNWIs), and entrepreneurs, the time has never been better to capitalise on Portugal’s vibrant tourism and hospitality sectors through the Golden Visa programme.
Learn more about how you can benefit from Portugal's Golden Visa residency-by-investment programme when relocating or investing in Portugal here.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, tax optimisation, private healthcare, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.
About Portugal Future Fund
The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.
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