In July (one of the busiest traveling months in the Azores), tourist accommodation establishments in the Azores (hotels, local accommodation, and rural tourism) recorded a total of 638,500 overnight stays, representing a year-on-year increase of 2.5%.

According to data published by the Azores Regional Statistics Service (SREA), this growth was primarily driven by increased demand from foreign markets (residents abroad), which accounted for 524,000 overnight stays, equivalent to 82.1% of the total and a 4.5% increase compared to the same month last year. In contrast, the domestic market, with 114,600 overnight stays (17.9% of the total), recorded a 6% drop.

The number of guests stood at 179,500, representing a 2% positive year-on-year change, while the average stay increased slightly to 3.56 nights (+0.5%). Local accommodation accounted for the largest share of overnight stays (48.6%), with 310,500 registrations, followed by hotels with 45.9% (293,100 overnight stays) and rural tourism with 5.5% (34,900 overnight stays).

2.6 million overnight stays between January and July

Among the main foreign source markets, the United States led with 77,100 overnight stays (14.7% of international visitors), representing a 1.6% increase compared to the same month last year. This was followed by Spain (75,800 overnight stays, +1.1%) and Germany (70,300 overnight stays, +8.3%). The highest year-on-year growth was observed in the markets of Poland (+61.3%), Israel (+57.9%), and Hungary (+37.8%). On the contrary, there were significant declines in the markets of Slovenia (-31.9%), the Netherlands (-10.5%), Canada (-9.4%), and the United Kingdom (-9.3%).

During the accumulated period from January to July, the Azores recorded 2.6 million overnight stays, representing a 6.1% increase over the same period last year. The total number of guests was 777,300 (+6%), and the average stay was 3.29 nights (+0.1%). The highest number of overnight stays in the last two years occurred in August 2024, with a total of 676,700 overnight stays.

Considering only hotels and local accommodations, which represent 94.5% of the regional total, there were 603,600 overnight stays in July, corresponding to a 2.1% growth. Within this universe, the domestic market accounted for 110,100 overnight stays (-6.3%) and foreign markets for 493,500 (+4.2%). The number of guests was 169,300 (+1.4%), and the average stay rose to 3.56 nights (+0.7%). From January to July, these two segments accumulated 2.4 million overnight stays (+5.5%).

Western Group with growth in overnight stays

By island, the largest positive year-on-year variations in overnight stays (hotels and local accommodation) were in Flores (+8.1%), Corvo (+4.1%), Graciosa (+3.7%), Pico (+3.6%), Faial (+2.6%), São Miguel (+2.5%), and São Jorge (+2.0%). In contrast, Santa Maria (-5.2%) and Terceira (-1.8%) recorded decreases. São Miguel stood out as the main destination, with 399,400 overnight stays (66.2% of the total), followed by Terceira (76,600), Pico (45,000), and Faial (37,800).

In the analysis by market and island, the Spanish market was the primary foreign source for the Azores, accounting for 12.3% of foreign overnight stays, with particular emphasis on the islands of Flores (17.0%), São Miguel (15.2%), and Corvo (11.9%). Germany was the predominant market in Pico (19.7%), Faial (15.6%), and São Jorge (11.7%), while the United States stood out in Terceira (13.6%), Santa Maria (10.2%), and Graciosa (6.5%).

Specifically, in the hotel sector, there were 293,100 overnight stays in July, representing a slight 0.5% year-on-year decrease. The domestic market fell by 5.3%, with 72,000 overnight stays, while foreign markets grew by 1.2%, with 221,100 overnight stays. The number of guests was 91,600 (-0.5%), and the average stay remained at 3.20 nights. The net bed occupancy rate stood at 71.9% (-1.6 percentage points) and the room occupancy rate at 81.6% (-1.1 percentage points). Total hotel revenues grew by 11.7%, reaching €32.7 million, of which €25.4 million related to rooms (+5.3%). RevPAR (Revenue per Available Room) stood at €137.98 and ADR (Average Daily Rate) at €169.18. From January to July, hotels recorded 1.3 million overnight stays (+3.0%).

Local accommodation recorded 310,500 overnight stays in July.

Local accommodation recorded positive growth, with 310,500 overnight stays in July (+4.6%). Despite a decline in the domestic market of 8.0% (38,200 overnight stays), foreign markets recorded an increase of 6.7% (272,400 overnight stays). The number of guests increased to 77,700 (+3.7%), and the average stay rose to 3.99 nights (+0.9%). The bed occupancy rate reached 50.8% (-0.2 p.p.). All islands showed year-on-year growth in overnight stays, except for Terceira (-0.4%). São Miguel led with 199,900 overnight stays (64.4%), followed by Terceira (32,000), Pico (31,300), and Faial (19,900). From January to July, local accommodation accumulated 1.1 million overnight stays (+8.6%). About 10.9% of active establishments reported no guest movement.

In the rural tourism segment, there were 34,900 overnight stays in July, a year-on-year growth of 9.7%. The domestic market accounted for 4,400 overnight stays (+2.2%) and foreign markets for 30,500 (+10.9%). The number of guests increased to 10,200 (+11.9%), and the average stay decreased to 3.42 nights (-2.0%). The net bed occupancy rate was 53.6% (-3.0 p.p.) and the room occupancy rate remained at 62.0%. Total revenue amounted to €3.9 million (+21.7%) and room revenue to €3.4 million (+18.9%). RevPAR was €118.76 and ADR was €191.52. As of July, rural tourism recorded 120,300 overnight stays (+19.3%).

Jose Henrique Andrade is a journalist for Correio dos Açores, and Natalino Viveiros is the director.

Translated to English as a community outreach program from the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL) as part of Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno, PBBI thanks Luso Financial for sponsoring NOVIDADES.