Tourist tax travel warning: UK tourists issued Portugal holiday warning as popular Algarve regions begin charging a fee

A Portugal holiday warning has been issued to UK tourists over the introduction of a tourist tax. Algarve tourists and holidaymakers have been urged to stay mindful after the introduction of the new fee.

The Algarve municipality of Portimão has approved a variable tourist tax to take effect in March 2024. The tax will be €2 per person per night during the high season from March to September. It drops to €1 in the low season from October to February. This new fee has already started being collected in Portimão. The Algarve municipality follows in the footsteps of other Algarve municipalities such as Villa Real de Santo Antonio, Faro and Olhão. 

Portimão Mayor Isilda Gomes told TSF Radio the tax could raise “a few million euros” for tourism promotion. She said: “The rates are extremely fair. The funds will boost the city's tourism development.”

She added: “What we intend is, first, to promote Portimão as an attractive tourist destination and attract more and more other tourist markets to our municipality. Then, (to invest) in the improvement of what we have to offer to our tourists, that is, the improvement of green spaces, the improvement of roads, everything that implies having a quality tourist destination, and that is what we want”.

Neighbouring Lagos also imposes a €1 per person per night tax and the taxes provide funds for local tourism infrastructure and promotion. It has been reported that the new tax will impact tourists staying in hotels, apartments, resorts, and campgrounds in Portimão.

Portimão is known for its old quarter, busy marina and proximity to many beaches. Museu de Portimão is housed in a restored 19th-century cannery, with displays on local history. To the south are Rocha Beach, backed by ochre cliffs, and the medieval Fort of Santa Catarina de Ribamar.

The tourist tax applies to people staying overnight in tourist resorts, local accommodation establishments, campsites and caravan parks. Tourist businesses must collect the fee and submit it to the municipality, or they will face penalties ranging from €500 to €10,000 for individuals and from €1,000 to €20,000 for companies, as per the municipal regulations. Albufeira is expected to join this group of municipalities in May, once the Council approves the regulation to apply the tourist tax in the municipality. The proposal for this regulation was under public consultation until February.