≡-Mexico, Morocco, Tunisia, and Cape Verde Steal the Spotlight as Portuguese Tourists Ditch Overpriced Algarve for Exotic Luxury Escapes – Viral of Today

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Mexico, Morocco, Tunisia, and Cape Verde Steal the Spotlight as Portuguese Tourists Ditch Overpriced Algarve for Exotic Luxury Escapes

Friday, June 20, 2025

Cape Verde, Tunisia, Morocco, and Mexico are rapidly becoming top choices for Portuguese travelers who are turning away from the soaring costs of domestic holidays in the Algarve. With luxurious all-inclusive packages, exotic settings, and significantly lower prices compared to Portugal’s southern coast, these international destinations are offering far greater value for money. As vacation costs in the Algarve skyrocket—often exceeding €1,500 for a week—Portuguese tourists are choosing to explore vibrant cultures abroad without compromising on comfort or experience. This shift is not just about affordability but also about seeking new, memorable escapes that justify the price tag, making these four countries the ultimate alternatives to an increasingly expensive homegrown holiday.

Portugal’s southern gem, the Algarve, known for its golden beaches, charming coastal towns, and sunny climate, is experiencing a mixed tourism season. While hotel occupancy rates remain relatively strong—exceeding eighty percent—expectations within the hospitality sector are not being met. The reason? Holiday prices in the Algarve have climbed so high that travelers are now opting for international getaways that offer better value for money.

Despite being a favorite among both Portuguese and international tourists, the Algarve’s once-affordable charm is under pressure. A typical week’s stay between Albufeira and Vilamoura during the summer months now costs upwards of €1,500. In contrast, that same amount could cover an all-inclusive week at a five-star resort in the Caribbean, offering a tempting alternative for price-conscious holidaymakers.

This year’s Corpus Christi Bank Holiday, usually a time of high domestic travel within Portugal, has highlighted the issue. Many Portuguese tourists are choosing not to travel to the Algarve at all, and those who do are expressing frustration at the high cost of accommodation, dining, and activities. Local travel agencies report a noticeable decline in domestic holiday bookings, and public sentiment reflects a growing discontent over being priced out of their own coastal escapes.

Instead, Portuguese travelers are increasingly heading abroad. Destinations such as Cape Verde, Tunisia, Morocco, and Mexico are witnessing a sharp rise in interest. In fact, international holiday bookings by Portuguese residents rose by fifteen percent in the first quarter of this year alone. These destinations offer competitive pricing, comprehensive holiday packages, and often better overall value.

According to the Algarve Hotels and Tourist Enterprises Association (AHETA), hotel room occupancy in March stood at just 51.9 percent—a drop of 3.4 percentage points compared to the same month last year. This dip is concerning for a region that heavily relies on tourism as a key economic driver. Many industry experts attribute this shortfall to inflated prices, which are causing potential visitors to reconsider their plans or seek more affordable alternatives abroad.

Last year, 2024, was a record-setting year for Algarve tourism. The region hosted over 5.2 million tourists, including 3.8 million international visitors, both all-time highs. Faro Airport, which serves as the Algarve’s primary international gateway, welcomed 9.8 million passengers—up two percent from the previous year. These figures highlighted the Algarve’s status as a world-class holiday destination, yet the trend may not sustain if current pricing structures continue unchecked.

The steep rise in local holiday costs may be linked to several factors, including inflation, increased operating expenses for hotels, and a surge in demand post-pandemic that allowed businesses to raise rates. However, with increasing international competition and a population highly sensitive to value, pricing out the domestic market could lead to long-term damage to the Algarve’s tourism appeal.

More troubling is the shifting perception among locals. Conversations about upcoming vacations are more likely to involve flights to Punta Cana in the Dominican Republic or beachside resorts in North Africa than road trips to Armação de Pêra or Lagos. For many, the math is simple: why spend more for less at home when overseas destinations offer luxury, exoticism, and affordability?

For the Algarve to maintain its competitive edge and protect its long-term tourism future, stakeholders may need to reevaluate pricing strategies and ensure that both domestic and international travelers find the region appealing—not just for its scenic views and culture, but also for its value.

Cape Verde, Tunisia, Morocco, and Mexico are drawing Portuguese tourists away from the costly Algarve with their affordable luxury, all-inclusive deals, and unforgettable holiday experiences. These exotic destinations offer far better value, making them the top choice for price-conscious travelers.

As Portugal’s most visited coastal destination faces increased competition from abroad, the challenge will be balancing quality and accessibility. Without an adjustment in pricing or added incentives to stay local, the Algarve risks becoming a luxury few can afford—even those who live just a few hours away.

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