Lisbon locals can’t find affordable homes, transport is bursting at the seams and public services are under strain.
Portugal has a bold new message for travellers: look beyond Lisbon. While its culture-rich capital has long charmed visitors with its buzzing nightlife and historic neighbourhoods, the influx of tourism has reached a tipping point.
In August 2024, Portugal set a new tourism record with 10.5 million overnight stays, up 3.8 per cent from last year. The country welcomed 3.8 million visitors that month -a 5.9per cent increase -making it one of the busiest periods on record. These figures, released by the National Institute of Statistics (INE), reflect growth among both international and domestic travellers.
As visitor numbers soar, Lisbon’s infrastructure and public transport groan under the weight and districts like Alfama and Baixa become nearly impossible to navigate during peak times.
This shift hasn’t gone unnoticed by residents or officials. Secretary of State for Tourism Pedro Machado addresses overtourism by reimagining the tourism offering and urging travellers to venture into lesser-known regions, such as North Central Portugal and the Douro Valley.
Machado explains, “We create new destinations and take people who came to Lisbon and Porto and put them in other cities and regional destinations.”
The aim, he adds, is for visitors to leave with “a very good experience in all of Portugal… that’s the goal.”
The impact of overtourism in Lisbon and Porto
Overtourism’s impact on Lisbon is difficult to ignore. Driven by Portugal’s appeal as a low-cost destination and recent policy changes encouraging foreign investment, the surge in tourism has led to record-breaking revenues: in 2023 alone, Portugal’s tourism revenue reached €25 billion, up from €21 billion the previous year.
This boom, however, has transformed Lisbon’s housing market, where nearly 20,000 residential properties have shifted to short-term rentals over the past five years.
UK newspaper The Times reports that rents in Lisbon have surged by 94 percent since 2015, with house prices skyrocketing by 186 per cent, pricing many locals out of their own neighbourhoods.
In addition to soaring rents, Lisbon’s public transport, once efficient for locals, now struggles with the influx of tourists.
Vintage yellow trams like Tram 28, which wind through popular districts such as Alfama, Baixa, and Estrela, are often packed with tourists and make commuting difficult for residents.
The pressures extend beyond the capital, too: Porto, which has a population of just 232,000, saw overnight stays jump by 22 per cent to 5.9 million in 2023.
Responding to these pressures, Porto officials have banned new short-term rentals in busy areas, restricting them to neglected quarters as a tool for urban regeneration.
The Portuguese government’s approach to tackling these challenges is a strategic shift toward less crowded regions. The 2020-2035 tourism plan focuses on sustainability, encouraging visitors to explore quieter regions like North Central Portugal and the Douro Valley.
“We’re refocusing on sustainability… it’s the main goal,” says Pedro Machado, emphasising the importance of balancing visitor numbers across the country.
Machado explains that this shift aims to protect Lisbon and Porto from overtourism, offering travellers alternative experiences in regions where they won’t overwhelm local communities or resources.
The Douro Valley: Wine, wellness, and heritage
The Douro Valley is Portugal’s wine heartland, away from busy cities. It is a historical region where leafy vineyards climb steep hillsides, where Port wine has been crafted for centuries.
Just a few hours from Porto, this World Heritage Site offers the chance to explore one of the world’s oldest demarcated wine regions, established in 1756.
“Wine tourism is very important for us in Portugal,” explains Machado, highlighting how this high value slow tourism aligns with the country’s focus on more sustainable, regional travel.
The Quintas, or historic wine estates, are essential stops in the Douro Valley toexperience Portugal’s winemaking traditions firsthand.
Starting in Vila Nova de Gaia, across the river from Porto, you’ll find Port wine lodges along the riverbanks. Here you can taste wines aged on site and see the iconic ‘rabelo’ boats that once transported barrels downstream, a reminder of the valley’s rich history.
Quinta da Pacheca, one of the most renowned estates, offers more than just tastings. Here you can tour the vineyards, squash grapes underfoot during the harvest and even stay overnight in wine-barrel-shaped suites with vineyard views.
In Pinhão, Quinta do Bomfim offers private tastings by the river and a chance to explore its historic cellars, all while supporting the local community and preserving traditional methods.
Portugal is working towards this kind of slower, high-spend tourism in regional areas to ease the pressure on cities like Lisbon and Porto.
By encouraging visitors to spend more time and money in regions like the Douro, the country can protect its urban centres from the impact of mass tourism while supporting sustainable growth in rural areas.
North central Portugal: Where to go for culture and nature
North Central Portugal offers a journey into Portugal’s past with cities and villages steeped in history and distinctive architecture.
Rising above the Rio Mondego, Coimbra is an animated city once Portugal’s medieval capital. Its historic centre, dating back to Moorish times, is a labyrinth of cobbled lanes, towering cathedral facades and traditional cafes.
Further into the region, villages like Sortelha showcase North Central Portugal’s enduring appeal. With stone-built homes and ancient fortifications, Sortelha’s landscape and architecture offer insight into a quieter, more authentic side of Portuguese life, preserved well beyond the reach of Lisbon’s tourism crowds.
This focus on North Central Portugal is part of a broader initiative to draw travellers away from hotspots while maintaining authentic, low-impact travel experiences.
“We try to create new, friendly experiences along the country, along Portugal,” says Machado, explaining that this approach encourages travellers to engage meaningfully with Portugal’s culture and landscapes without impacting residents.
How to support rural economies in Portugal
Portugal’s new tourism strategy isn’t just about easing the burden on cities; it’s about using tourism to support rural economies and actively preserve cultural heritage. Visitors exploring places like the Douro Valley or North Central Portugal can contribute to the country’s sustainable tourism goals.
With their family-run wineries, independent guesthouses, and local markets, these areas benefit directly from each traveller, ensuring that tourism spending stays within the community.
Initiatives in less-trafficked areas allow travellers to experience Portugal’s renowned hospitality and engage meaningfully with its culture, something that’s becoming harder to do in overtourism-affected areas.
According to Machado, Portugal’s aim now is to create “a warm and rich experience” that resonates with visitors while helping to maintain the quality of life for locals.
When you visit the Douro Valley or North Central Portugal, you also support environmental conservation efforts.
Many vineyards in the Douro Valley are adopting organic practices and working to reduce water usage, helping protect the Douro River and the region’s unique ecosystem.
Nearby national parks like Peneda-Gerês offer low-impact trails that encourage exploration without environmental degradation. Sustainable tourism isn’t just a catchphrase in these regions – it’s a lived experience.
