PHOTO: © SONIAALVES | DREAMSTIME.COM

Just across the Atlantic, Lisbon has evolved into one of Europe’s most compelling destinations, especially for U.S. travelers. Over the past decade, and especially in recent years, Portugal’s capital experienced a significant transformation in its tourism landscape, influenced by economic drivers ranging from leisure vacationers and remote workers to local investment in hospitality and increased attention from the airline industry.

Lisbon emerged as a magnet for digital nomads and remote workers in a post-pandemic world. It offers an agreeable climate; a vibrant cultural scene; and a relatively affordable cost of living especially compared to other Western European capitals. The city capitalized on this combination by investing in infrastructure that specifically caters to remote workers, including improved co-working spaces, better networking events and supportive tech hubs that provide resources for startups. These upgrades not only attract remote workers but also enhance Lisbon’s overall appeal as a destination for both business and leisure.

Real estate development, a rising industry, played a significant role in Lisbon’s tourism boom, too. A surge in property investments, including new hotel developments and luxury apartments, revitalized historical neighborhoods like Alfama and Bairro Alto, adding modern conveniences to the traditional charm visitors look for. The effects of this rapid development already rippled outward to hospitality, retail and dining — key magnets for both tourists and new residents.

City breaks have become increasingly popular among travelers seeking quick getaways worldwide, and Lisbon’s rich history and diverse cultural offerings make it an ideal destination for these brief guests. Local businesses and tourism operators responded by tailoring services to short-term travelers looking to maximize their limited experience. Newer boutique hotels and other luxury accommodations increasingly cater specifically to this market segment, while the city’s public transport improvements and proliferation of guided tours and experiential activities enhance its appeal as an easy and enriching city break destination.

On a larger scale, Lisbon recently announced the location of a second future airport. It’s long overdue but increasingly necessary as global airlines increase routes to the city, including direct flights from all three major U.S. airlines. A serious rise in attention and investment from low-cost airlines has impacted traffic from across Europe, too. It seems the world has finally awakened to the city’s appeal, and Lisbon stands ready.

CHECKING IN WITH PAULA OLIVEIRA
Executive Director, Lisbon Tourism Association

What is the current tourism landscape in Lisbon?
We currently welcome 8 million annual visitors to tourist accommodations in the Lisbon region, led by U.S. guests. Since the pandemic, the United States has remained the largest source of foreign tourists to the city. The vast majority visit Lisbon for a leisurely city break or short break trip, attracted by the idea of casually visiting attractions, monuments and museums, walking around neighborhoods and going out for a great dinner. Gastronomy is one of Lisbon’s greatest distinguishing factors compared to other competing destinations.

Is this any different from pre-pandemic trends in Lisbon?
In 2023 several of our tourism indicators were similar to the pre-pandemic period, such as the percentage of foreign visitors (79 percent), average stay (2.35 nights) and reasons for visiting. However, we saw a greater predominance of North American and British visitors, and above all, tourist receipts increased significantly.

Do you foresee any shifts in tourism trends ahead?
The growth of the North American market shows no signs of stopping. The Asian markets, although still not very significant here, seem to be finally recovering, as is Germany.

What can you tell us about investment in a new Lisbon airport?
The decision to build a new airport has been made. However, it is not expected to be fully operational for another 10 to 15 years, so it will be essential to continue investing in the current infrastructure during the transition period to keep the growing tourist flows from slowing down significantly. Elsewhere around the city, there has been a lot of investment in the rehabilitation of Lisbon’s museums and monuments using funding aimed at helping the economy recover from the pandemic.

What’s leading to the increased air traffic that requires a second airport?
The commitment of low-cost airlines to Lisbon was the turning point for the increase in tourist flows, but the expansion of routes in long-haul markets along with increased numbers of flights and frequencies led to growth in these markets, too, of course.

Is that part of the reason U.S. visitors now make up a greater percentage of visitors?
Yes. More routes and greater frequency of flights boosted the U.S. market, currently Lisbon’s No. 1 market. At the moment, we have direct flights from major U.S. cities on Delta Air Lines, American Airlines and United Airlines. Direct flights also arrive from Canada on Air Transat and Air Canada, boosting North American numbers overall. Lisbon is the entry hub of the entire country for foreign visitors. More than 30 million passengers flew through the city in 2023, and that number is still growing.

DIVERSIONS
The Alfama district manifests the Lisbon you imagine, with tight alleys and the steepest staircases that never seem to end. Allow yourself to get lost in this neighborhood as you work your way to the top of the hill to discover one of the city’s famed miradouros. These lookout points boast the sprawling views you’ve seen on postcards and social media, well worth the climb (you can also take a car).

© TURISMO DE LISBOA

Belém proves another must-explore neighborhood and home to Lisbon’s most iconic sight, Belém Tower, overlooking the Tagus River. Head inside and climb the 500-year-old tower for unique views, or just bask in the scenery surrounding this city landmark. Just behind, find Jerónimos Monastery, another UNESCO World Heritage site worth exploring for its intricate architecture and homage to Portugal’s powerhouse seafaring past. If you’re a fan of maritime history, look for the tomb of Vasco da Gama within. Nearby, get in line for Lisbon’s favorite pastry, pastéis de nata, at the city’s top spot for indulging in these treats, Pastéis de Belém. They’re worth the wait.

Carve out some time for an evening of fado, the haunting Portuguese music genre so unique it’s garnered UNESCO recognition for Intangible Cultural Heritage. Look for a traditional fado house in neighborhoods like Alfama or Bairro Alto. They’re often tiny and include dinner, so make a memorable night of it.

LODGING
Corpo Santo Lisbon Historical Hotel
Just two blocks from the river, the serene and modern interiors of this luxury boutique belie its historic bones, some of which date to the 14th century.
Largo Corpo Santo 25, Lisbon
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The Ivens
In the city’s vibrant Chiado neighborhood, The Ivens sets a sophisticated scene inside a 19th-century landmark that pays handsome homage to its illustrious past.
Rua Capelo 5, Lisbon
$$$$$

Valverde Lisboa Hotel
On the city’s most famous shopping street, superior service and exclusive amenities further enhance this design-forward space. The tropical courtyard pool offers the ultimate urban escape.
Av. da Liberdade 164, Lisbon
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DINING
Belcanto
Exquisitely prepared and presented updates to Portuguese classics helped this top restaurant earn its two Michelin stars. Stellar service and a soaring dining room add to the experience.
Rua Serpa Pinto 10A, Lisbon
$$$$$

Eleven
In an elegant, contemporary space within Amália Rodrigues Garden, this Michelin-star holder presents artful, Mediterranean-inspired dishes with one of the city’s most magnificent dinner views.
Rua Marquês Fronteira, Jardim Amália Rodrigues, Lisbon
$$$$$

Feitoria
Just beyond Tower of Belém on the banks of the Tagus, this white-cloth venue is home to a Michelin star awarded for its precise Portuguese preparations, hyper-local ingredients and exceptional wine list.
Altis Belém Hotel & Spa, Doca do Bom Sucesso, Lisbon
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COMING AND GOING
U.S. citizens must have a passport valid for three months beyond the date of intended departure, with two blank pages available. Expected to launch sometime in 2025, the European Travel Information and Authorization System will require U.S. citizens and travelers from other non-EU countries to apply for approval prior to travel to Europe.

OFFICIAL LANGUAGE
Portuguese

JUST THE FACTS
Time zone: GMT
Phone code: Country Code: 351
City Code: 21
Currency: Euro
Key industries: Tourism and hospitality, technology and startups, finance and banking, and real estate and construction all surpassed fishing as the top industry in Lisbon, though it still maintains a strong presence.

INFO TO GO
Humberto Delgado Airport, the country’s busiest airport, is the hub of flag carrier TAP Air Portugal, a member of Star Alliance. It lies just about 4.5 miles from city center, and taxis, Ubers or rental cars can typically make the journey in around 20 minutes with normal traffic. (Lyft is not available here.)