The Azores recorded 243,352 overnight stays in March across hotels, local lodging, and rural tourism units, a 2.4% decline compared to the same month last year, marking the sixth consecutive year-over-year monthly contraction in the region’s tourism activity.

Preliminary data released by the Serviço Regional de Estatística dos Açores (SREA) indicate that the downturn was driven largely by the domestic market, even as international demand continued to recover. Portuguese residents accounted for 112,569 overnight stays—46.3% of the monthly total—reflecting a sharp 9.3% drop from March 2025. By contrast, foreign visitors generated 130,783 overnight stays, or 53.7% of the total, representing a 4.4% increase year over year.

The number of guests reached 77,965, down 2.9% from a year earlier, while the average length of stay edged up slightly to 3.12 nights. For the first quarter of 2026, the archipelago recorded 521,710 overnight stays and 177,987 guests, declines of 4.9% and 5.1%, respectively. The average stay for the quarter rose marginally to 2.93 nights.

The regional slowdown stands in contrast to national trends. Across Portugal, overnight stays increased 1.4% in March and 1.3% for the first quarter. Still, SREA cautions that year-over-year comparisons are affected by the shifting calendar of Carnival, which fell in February this year but occurred in early March in 2025.

Hotels continued to dominate the market, accounting for 155,474 overnight stays, or 63.9% of the total, despite a 1.8% decline. Local lodging registered 79,635 stays (32.7%), down 3.1%, while rural tourism posted the steepest drop, falling 7.5% to 8,243 stays.

Among international markets, the United States led with 29,978 overnight stays—22.9% of foreign demand—and posted a 12.0% increase. Germany followed with 24,659 stays (+7.8%), while Canada recorded 16,981 stays, essentially flat (-0.4%). The strongest growth rates came from Austria (+58.7%), Belgium (+41.0%), and Denmark (+32.4%), while the sharpest declines were seen in Israel (-57.6%), Switzerland (-45.0%), and Brazil (-27.5%).

Geographically, São Miguel remained the dominant destination, accounting for 70.9% of overnight stays in the hotel and local lodging segments, followed by Terceira (16.9%), Faial (5.4%), and Pico (3.2%). Growth was recorded on Graciosa, Flores, Terceira, and São Jorge, while significant declines were noted on Corvo, Faial, Santa Maria, Pico, and São Miguel.

Despite declining occupancy, hotel revenues continued to rise. Total revenue reached €9.8 million, up 8.4%, with room revenue increasing 6.1% to €6.6 million. Occupancy rates showed mixed results: bed occupancy fell to 41.1%, while room occupancy rose to 51.9%.

Local lodging saw a sharper contraction in guest numbers, down 7.3%, although longer stays—averaging 3.95 nights—helped offset the decline. More than half (54.6%) of reporting establishments indicated no guest activity during the month.

Rural tourism posted the weakest performance across all metrics, with declines in both domestic and international demand and an 8.3% drop in total revenue.

Overall, the first quarter of 2026 confirms a cooling in tourism demand across the Azores, particularly among domestic travelers and in non-hotel segments. Yet the resilience of international markets and continued revenue growth in the hotel sector suggest a more complex picture—one of adjustment rather than collapse, as the region navigates shifting travel patterns in a post-pandemic global economy.

In Diário dos Açores – Paulo Viveiros, director.