Golf tourism

Portugal has positioned itself in recent years as a top golf destination. With an average of more than 300 days of sunshine a year, this country, known as the California of Europe, has approximately 75 golf courses spread throughout its territory. With beautiful and challenging resorts, in addition to its excellent climate and exclusive hotel offer, Portugal has been recognized for years as one of the best golf destinations by a litany of magazines and associations.

Some of the best golf courses are located in the surroundings of Lisbon, such as Oitavoso and Estoril Golf Club. In the surroundings of Porto you can find the Estela Golf Club, the Campo de Golfe do Aqueduto, and the Amarante Golf Course. But if there is a region that takes the cake when it comes to playing golf in Portugal, that is the Algarve. Some of the courses that stand out in this sunny region are Monte Rei Golf & Country Club, Quinta do Lago, Ombria Resort Algarve, The Victoria Golf Course, Vale do Lobo, and Espiche Golf, among others.

The Algarve is home to 31 of the approximately 75 golf courses in the country. Some of them have been designed by Jack Nicklaus, Arthur Hills, Nick Faldo, and Severiano Ballesteros. This region boasts stunning natural beauty, with breathtaking beaches next to idyllic courses featuring green hills that blend with the blue tones of the sky and the sea. Many of the golf courses in the Algarve, a region with a climate that allows year-round play, are located in well-preserved areas with spectacular views, factors that have contributed to it being named the best golf destination in Europe by the Global Gold Tourism Organization (IAGTO) in 2016, 2014, and 2020.

The Algarve is a jewel for golf lovers, but the truth is that the whole country is a diamond for fans of this sport. Thus, the country was chosen for five consecutive years, between 2014 and 2018, as the best destination in the world by the World Golf Awards, delivered by the World Travel Awards organization. The incredible golf courses and the unbeatable climate are key factors to have reached that position. But other essential drivers are the development of luxury hotels to accommodate these tourists with high purchasing power, something that has materialized in recent years with the growth of hotel investment in Portugal in all categories, including luxury.

By the end of 2022, Portugal received annual hotel investment of approximately EUR1.5 billion, a significant increase from EUR552 million in 2019, according to a study by Horwath HTL. This investment growth is driving the development of a significant hotel supply, with more than 70 projects in the pipeline by the end of 2022. Porto and Lisbon account for 52% of the total pipeline, while regions such as the Algarve remain a major attraction for international investors.

Of those 70 projects, some are focused on the development of luxury hotels, a type of accommodation sought by the usual high-end golf tourism clientele. By the end of 2022, there were 581 hotel chains in Portugal, including domestic luxury brands such as Pestana or Tivoli, as well as international companies such as Sheraton or Crowne Plaza, according to the study.

“The hospitality sector in Portugal is currently experiencing significant growth and is emerging as one of the most sophisticated markets in Europe. This transformation is particularly notable due to the increasing presence of international brands in the industry,” said Mariano Faz, CEO at Ace Hospitality Management, in a recent interview. Other high-end hotel brands with a presence in the country include Eurostars, The Luxury Collection, Corinthia Hotels, and InterContinental.

Portugal has been able to expand its supply of high-quality hotels thanks to a variety of government support, including strong tax and capital incentives to promote investment. “This has been achieved by supply qualification, either by supporting new supply or renovating the existing with strong tax and capital incentives to promote investments,” said Gonçalo Garcia, head of hospitality Portugal of Cushman & Wakefield.

According to a study by Future Market Insights, global golf tourism is expected to reach a market size of USD40.4 billion by 2033, an increase of approximately 75% from USD23.1 billion in 2023. Portugal aspires to be a global golf hub, unsurprising as the sport contributed more than EUR1.9 billion to the local economy in 2018, of which EUR1.03 billion was direct impact, according to a study by the Portuguese Golf Federation carried out by Deloitte. That year, before the disruption caused by COVID-19 in world tourism, the practice of this sport accounted for 16,600 jobs, data that reflects the importance of this industry for the country.

For the government, the golf industry is part of its efforts to position Portugal as one of the key destinations for the events and sports industry. Thus, the Estratégia Turismo 2027 document, approved in 2017, establishes the roadmap for Portuguese tourism for the next decade. The government aims to turn the country into an international destination for conventions and cultural and sporting events. These types of actions are key to improving Portugal’s profile as a competitive destination, with an offer for clients with purchasing power, and a wide range of tourism initiatives.

With the intention of increasing the number of golf events, the country has significantly increased the number of tournaments held annually. One of the most important is the Portugal Pro Golf Tour, promoted by the Portuguese Golf Federation, in which up to 78 athletes from all over the world participate. With the increase in the number of tournaments, the climate, solid air connections with the rest of Europe, and the growing offer of luxury tourism, Portugal is on its way to becoming a golf tourism powerhouse in Europe.