In a bid to generate funds for sustainable tourism and improve local infrastructure, the city of Faro, a popular destination in Algarve region of southern Portugal, has introduced a year-round tax on tourists.

According to reports, tourists over 16 years of age will pay EUR 1 per night for stays of up to seven nights during the low season from November to February starting November 1. The fee doubles to EUR 2 per night from March through October, aligning with Faro’s peak tourism season.

The tax applies to visitors at hotels, local lodging, campsites, and caravan parks. Exemptions are available for various groups, including Faro residents, University of Algarve students, medical patients and companions, and essential workers in healthcare, education and security.

The statement adds that each exempt group must present proof of their status, such as student or occupational documentation, to avoid the tax. The move places Faro among other Algarve destinations, including Albufeira and Portimão, that have introduced similar taxes aimed at supporting sustainable tourism.

The Algarve region, one of Portugal’s top destinations, attracts millions of visitors annually. According to Portugal’s National Statistics Institute (INE), the country received 13.1 million tourists from January to August 2024, a 6.7 pc increase from the previous year.

Authorities say that revenue from the tourist tax will go toward projects enhancing Faro’s appeal while preserving its environment, cultural heritage, and infrastructure. The initiative underscores Portugal’s wider effort to maintain the allure of its popular destinations while ensuring they remain sustainable for both locals and tourists.