How Tourism, Innovation, and Lifestyle make Portugal ideal for long-term investments
Tourism as an economic engine and attraction platform
Tourism in Portugal, especially with continuous growth projections and successive records, not only contributes significantly to GDP but also strengthens the country’s international visibility.
This constant flow of visitors increases global interest in Portugal, opening doors to investors seeking stable, attractive, and expanding markets. In addition, the sector stimulates the development of infrastructure, mobility, and services, creating more favorable conditions for other economic sectors.
Portugal’s travel and tourism sector is set to continue its strong growth into 2025, following a record-breaking year in 2024, according to the World Travel & Tourism Council (WTTC).
2024: A landmark year for Portugal’s travel and tourism sector
Looking back at 2024, the WTTC reports that Portugal’s Travel & Tourism sector achieved its highest-ever levels. The sector contributed €60,6 billion to the economy, equivalent to 21,3% of GDP, and sustained 1,2 million jobs. These milestones demonstrate the sector's continued resilience and increasing importance to Portugal’s overall economic performance.
Long-term outlook
Looking ahead, the World Travel & Tourism Council’s long-term projections suggest even greater potential for Portugal’s Travel & Tourism sector.
By 2035, the sector is expected to contribute more than €74 billion to GDP, representing 22,6% of the national economy. Employment in the sector could increase to 1,4 million jobs, reinforcing its role as a major driver of economic growth and job creation.
The World Travel & Tourism Council’s analysis underscores the growing significance of Portugal’s Travel & Tourism sector, not only as a major contributor to the national economy but also as a vital source of employment.
With positive long-term forecast, the sector is set to remain a key driver of growth Portugal.
Innovation as a catalyst for competitiveness
Portugal has been investing in digital solutions, sustainability, smart mobility, renewable energy, and technological transformation. These advancements make the country more competitive and appealing to international companies seeking innovative ecosystems.
Innovation applied to tourism, from digitalizing visitor experiences to developing sustainable operating models, demonstrates adaptability and forward-thinking (qualities highly valued by long-term investors).
The 2025 edition of the Global Innovation Index (GII), published by the World Intellectual Property Organization (WIPO), places Portugal in the 31st position among 139 assessed economies, highlighting the consolidation of its performance across several critical areas of innovation.
Among European countries, Portugal ranks 19th out of 39 economies. Within the European Union, it positions itself as the 16th most innovative economy.
Investment trends in innovation
For 2025, Portugal shows mixed signals with the growth of international patent applications, increased scientific output, and improved digital infrastructure.
The Global Innovation Index 2025 is clear: Portugal is strengthening its position and continues to demonstrate competitiveness in innovation, with room for future growth. Its main strengths lie in human capital, creativity, and economic diversification.
In 2025, another Portuguese unicorn was born, raising the total to three companies valued at over one billion dollars. Portugal is one of eleven European countries that produced unicorns in 2025.
Additionally, funding is underway for an AI gigafactory in the Sines area, one of Europe’s most ambitious infrastructure projects, which could solidify Portugal as a hub for data centers.
Portugal strengthened its position in the European innovation landscape, moving from 19th place in 2024 to 16th in 2025 in the European Innovation Scoreboard (EIS).
Published in July 2025, the European Innovation Scoreboard classifies member states into four innovation groups: innovation leaders, strong innovators, moderate innovators, and emerging innovators.
What about Portugal?
Portugal is classified as a moderate innovator, with a performance equal to 90,7% of the EU average in 2025. It ranks 16th among EU Member States and 20th among the EU and neighboring countries. Portugal performs above the average of the EU’s moderate innovators.
Quality of life as a retention and attraction factor
Portugal stands out globally for its quality-of-life indicators: safety, climate, culture, gastronomy, competitive cost of living, and accessible healthcare and education systems. These factors make the country especially attractive not only to tourists but also to digital nomads, skilled talent, and companies looking for locations to set up operations, innovation centers, or remote teams.
Quality of life is a decisive factor in attracting and retaining human capital - one of the greatest assets for sustainable investment. Many characteristics attract people from all over the world to start a new life in Portugal, especially when long-term investment is involved.
A reliable, stable, and democratic political system, where citizens and organizations enjoy high levels of freedom, human-rights protection, and access to economic and personal development opportunities, reinforces Portugal’s appeal among expats.
In terms of healthcare, both public and private systems are available throughout the country, offering quality professionals, infrastructure, and equipment. The Portuguese National Health Service is extensive, mostly free, and available to all citizens and residents.
With a mild climate, many hours of sunshine, and 850 km of coastline, Portugal is popular for surfing and golf. Gastronomic and cultural treasures also appeal to those seeking a high-quality environment to support long-term investment decisions.
In 2023, expats already considered Portugal the 10th most welcoming country and the 7th best country in the world for quality of life (InterNations, Expat Insider 2023).
A success formula?
The convergence of a robust tourism sector, an innovation-driven economy, and an exceptional quality of life positions Portugal as a strategic destination for long-term investment. Tourism drives growth, innovation guarantees future competitiveness, and quality of life ensures the ability to attract talent and investors.
Together, these factors reduce risk, increase confidence, and make the country a favorable environment for long-lasting projects in areas such as technology, healthcare, sustainability, premium tourism, real estate, education, and the digital economy.
Developed for investors seeking to capture the potential of a market where ProTech, serviced operations, and hospitality are transforming the real estate sector, this investment approach reflects the strength of a country that combines innovation, stability, and sustained growth.
As Portugal reinforces its global position as a prime destination for forward-looking projects and high-performance operational models, EQTY Global Growth II Fund provides a structured pathway to access carefully selected opportunities within this expanding ecosystem.