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Swap congested Lisbon for Portugal’s beautiful valleys.

Locals in Lisbon are struggling to locate inexpensive housing, while public transportation is overcrowded.

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Portugal has a bold new appeal for tourists: look beyond Lisbon. While its culturally rich city has always enticed visitors with its vibrant nightlife and ancient neighborhoods, the inflow of tourists has reached a critical point.

In August 2024, Portugal reached a new tourist record with 10.5 million overnight stays, up 3.8% from the previous year. The country saw 3.8 million tourists that month, representing a 5.9 percent rise and one of the busiest times on record. These numbers, provided by the National Institute of Statistics (INE), demonstrate an increase in both foreign and local travel.

Residents and government have both taken note of this trend. Pedro Machado, Secretary of State for Tourism, confronts overtourism by reinventing tourism offerings and encouraging visitors to visit lesser-known locations like North Central Portugal and the Douro Valley.

This growth, however, has changed Lisbon’s housing sector, with approximately 20,000 residential units converted to short-term rentals in the last five years.

According to the UK daily The Times, rentals in Lisbon have risen by 94% since 2015, while property prices have risen by 186%, forcing many people to leave their homes.

In addition to rising prices, Lisbon’s public transportation, which was formerly efficient for locals, is now struggling to accommodate the flood of tourists.

Vintage yellow trams like Tram 28, which run through popular areas like Alfama, Baixa, and Estrela, are sometimes overcrowded, making commuting difficult for locals.

The pressures extend beyond the capital: Porto, with a population of only 232,000, saw overnight stays rise by 22% to 5.9 million in 2023.

In response to these demands, Porto officials have restricted new short-term rentals in high-traffic areas, limiting them to underserved neighborhoods as a strategy for urban renewal.

The Portuguese government’s solution to addressing these difficulties is a planned shift toward less congested areas. The 2020-2035 tourism strategy emphasizes sustainability, encouraging travelers to visit calmer areas such as North Central Portugal and the Douro Valley.

Quintas, or old wine estates, are must-see destinations in the Douro Valley for a direct encounter with Portugal’s winemaking traditions.

Starting in Vila Nova de Gaia, across the river from Porto, you’ll discover Port wine lodges on the riverbanks. You may sample wines aged on-site and view the unique ‘rabelo’ boats that originally conveyed barrels downstream, as a reminder of the valley’s long history.

Quinta da Pacheca, one of the most well-known estates, provides more than just tastings. You can visit the vineyards, smash grapes underfoot during the harvest, and even spend the night in wine-barrel-shaped rooms with vineyard views.

Quinta do Bomfim in Pinhão provides private riverside tastings and historic cellar tours, while conserving traditional practices and helping the local community.

Portugal is promoting slower, higher-spend tourism in regional regions to relieve strain on capitals such as Lisbon and Porto.

By encouraging visitors to spend more time and money in regions such as the Douro, the country can insulate its metropolitan centers from the effects of mass tourism while also promoting long-term prosperity in rural areas.

North Central Portugal: Where to Go for Culture and Nature.
North Central Portugal provides a glimpse into Portugal’s past through cities and villages rich in history and distinct architecture.

Rising above the Rio Mondego, Coimbra is a vibrant city that was once Portugal’s medieval capital. Its old center, which dates back to Moorish times, is a maze of cobblestone streets, towering cathedral façade, and quaint cafés.

Further within the area, settlements like Sortelha demonstrate North Central Portugal’s long-lasting charm. Sortelha’s scenery and architecture, complete with stone-built dwellings and historic defenses, provide insight into a calmer, more genuine aspect of Portuguese life that has been kept far beyond the reach of Lisbon’s tourist throng.

How to boost the rural economy in Portugal

Portugal’s new tourist plan aims to use tourism to promote rural economies and actively protect cultural assets, rather than just reducing the strain on cities. Visitors to the Douro Valley and North Central Portugal can help the country achieve its sustainable tourism goals.

With their family-run vineyards, independent guesthouses, and local markets, these places profit directly from each visitor, ensuring that tourist dollars stay in the community.

Initiatives in less-trafficked regions allow travelers to enjoy Portugal’s famed hospitality and participate meaningfully with its culture, which is increasingly difficult to do in overtourism-affected places.

According to Machado, Portugal’s goal today is to provide “a warm and rich experience” that connects with visitors while also helping to sustain the quality of life for residents.

When you visit the Douro Valley or North Central Portugal, you contribute to environmental conservation initiatives.

Many wineries in the Douro Valley are using organic methods and reducing water consumption to conserve the Douro River and the region’s distinctive environment.

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