Summer tourism: the sun that illuminates… and also burns

As tourism consolidates its position as one of the drivers of the Portuguese economy, it's important to question the extent to which this dependence is desirable. Data from the National Statistics Institute (INE) reveals that, in 2023, tourism activity—including direct and indirect effects—represented 12.7% of Gross Domestic Product (GDP), totaling €33.8 billion, thus contributing 1.1 percentage points to the real growth of this indicator, which stood at 2.3%. The accentuation of our dependence is significant: in 2021, the tourism sector was responsible for the creation of "only" 7.8% of our wealth.

It's worth noting that summer is the epicenter of this economic vitality. Between June and September 2024, Portugal welcomed more than 13 million guests, of which about two-thirds were foreign. In just four months, the hotel sector generated almost 40% of its annual revenue. However, the tourist summer creates a true "wave effect," benefiting areas as diverse as logistics, insurance, real estate, and even the technology sector, which has seen a surge in demand for digital solutions for reservations, mobility, and tourist experiences. This summer boost is undeniably worthwhile. It generates jobs—about 7% of the national total—invigorates peripheral regions, and boosts tax revenue. It also serves as a powerful international showcase. Many visitors return to their countries carrying with them a positive image of Portuguese gastronomy, crafts, wine, hospitality, and even innovation. This symbolic export has real economic value.

At the same time, ignoring the side effects of this phenomenon would be irresponsible. First and foremost, given the precarious employment that characterizes the tourism sector, which can no longer be ignored. Indeed, the seasonality that characterizes tourism in southern Europe leads to fragile, poorly paid relationships concentrated in a short period of time. This generates regional imbalances and contributes to the economic instability of thousands of workers. There is also the issue of infrastructure. The pressure on public services during the summer months is sometimes unsustainable. Airports, transportation, hospitals, and basic supply networks are pushed to their limits. Therefore, either we invest in oversized infrastructure to meet peak demand—at high costs to taxpayers—or we accept systematic operational failures during peak periods. The housing market has also been profoundly affected. The (legitimate) conversion of homes into local accommodation and the massive purchase of real estate by foreigners have contributed to rising prices and a reduction in the supply available to residents. This impact is particularly felt in large cities and tourist areas, worsening the housing crisis already affecting thousands of Portuguese. Finally, it's important to remember that an economy overly dependent on tourism is vulnerable. The COVID-19 pandemic was a harsh lesson. In 2020, the near-total absence of tourists caused a partial collapse in several sectors and exposed the risks of economic monoculture.

In short, summer and tourism are undoubtedly powerful allies of the Portuguese economy. Their impact is visible in statistics, in the territories, and in the daily lives of thousands of workers and companies. However, it is crucial that this alliance be considered strategically. Overreliance on a single sector—and a single time cycle—exposes the country to significant risks and limits its potential for balanced growth. Therefore, the challenge lies in ensuring that the positive economic impact of summer extends beyond September, contributing to a more cohesive, fair, and resilient economy. Investing in sustainable tourism, workforce development, territorial redistribution of demand, and the creation of synergies with other sectors are possible—and increasingly necessary—paths. Summer will continue to be synonymous with sun and sea, but it can also come to mean innovation, cohesion, and long-term development.

NOTE: This article only expresses the opinion of its author and does not represent the position of the entities with which he collaborates.