Azores Archipelago Now Sees Fifth Consecutive Monthly Drop in Overnight Stays Across São Miguel and Pico

Azores, São Miguel, Terceira, Pico — Portugal’s Atlantic archipelago began the year with fewer visitors staying overnight, as January tourism data shows a 9.9% year-on-year decline in registered overnight stays across hotels, local accommodation and rural tourism units.

According to figures released by the Regional Statistics Service (SREA), tourist accommodation establishments recorded 121,200 overnight stays in January, down from the same month last year. The slowdown marks the fifth consecutive month of decline, following reductions in September (-1.2%), October (-2%), November (-6.8%) and December (-5.1%).

For a destination known for volcanic landscapes, whale watching routes and crater lakes, the figures reflect a quieter start to the winter travel season.

Guest Numbers and Length of Stay

In total, 44,300 guests were recorded across the nine-island archipelago in January, representing a 9.8% decrease compared to the previous year. The average stay stood at 2.73 nights, slightly down by 0.1%.

The decline contrasts with Portugal’s national tourism performance, which reported a 2% increase in overnight stays during the same period.

Of the 121,200 overnight stays registered in the Azores, 66,600 (55%) were attributed to domestic travelers, while 54,600 (45%) came from foreign visitors. Both segments showed year-on-year decreases, with foreign markets experiencing a sharper drop of 15.7%, compared to a 4.5% decline in domestic tourism.

Foreign Markets Show Mixed Performance

Germany remained the largest international source market for the Azores in January, accounting for 10,500 overnight stays, or 19.3% of total foreign stays. However, German visitor numbers fell by 12.2% compared to January 2025.

The United States ranked second with 7,400 overnight stays (13.5%), recording a 28.9% decrease. Canada followed in third place with 6,100 overnight stays (11.3%), reflecting a 1.1% decline.

Some smaller markets recorded growth. Poland saw a 14.9% increase in overnight stays, Austria rose by 8.1%, and Switzerland by 5.9%. Meanwhile, Slovakia (-49%), Israel (-35.5%) and Spain (-30.2%) posted the largest declines among foreign markets.

Accommodation Types and Occupancy

Hotels remained the dominant accommodation category, accounting for 77,900 overnight stays, or 64.3% of the total. Local accommodation units recorded 39,400 overnight stays (32.5%), while rural tourism establishments accounted for 3,800 overnight stays (3.2%).

Hotels registered the smallest year-on-year decline at -3.8%. Local accommodation dropped by 18.9%, and rural tourism fell by 20.5%.

The hotel sector’s net bed occupancy rate declined to 20.8%, down 1.7 percentage points. Despite lower occupancy, total hotel revenue increased by 1.3% to €5 million.

Rural tourism posted a net bed occupancy rate of 13.6%, down 0.2 percentage points, with total revenue reaching €441,400, reflecting a 9.1% decrease. Local accommodation reported a gross bed occupancy rate of 16.8%, down 2 percentage points, though revenue data for this segment was not included.

Additionally, 70.4% of active local accommodation establishments reported no guest movement in January, marking an increase of 5.3 percentage points.

Island-by-Island Performance

Considering hotels and local accommodation together, which represented 96.8% of overnight stays, only three islands recorded positive year-on-year growth: São Jorge (19.2%), Santa Maria (18.2%) and Graciosa (12.3%).

The remaining islands saw declines. Pico registered the largest drop at -16.6%, followed by São Miguel (-11.2%), Corvo (-9.9%), Terceira (-6.5%), Flores (-5.5%) and Faial (-3.1%).

São Miguel, the largest island and primary gateway through Ponta Delgada, accounted for 83,100 overnight stays, representing 70.8% of total stays in hotels and local accommodation. Terceira followed with 20,100 overnight stays (17.1%), Faial with 6,200 (5.3%) and Pico with 3,400 (2.9%).

With the exception of São Miguel, domestic tourism accounted for the majority of overnight stays on all islands. Domestic travelers were particularly dominant in Santa Maria (87.4%), Graciosa (85.7%) and Terceira (76.1%).

Foreign Market Distribution by Island

The German market held the largest foreign share on São Miguel (10.5%), Flores (7.7%) and Pico (7.4%). The Spanish market was most prominent on Corvo (9.6%).

North American travelers represented the main foreign segment on Graciosa (8.4%), Faial (5.4%) and Santa Maria (3.2%). In São Jorge, Canada led among foreign markets with 5.4%, while Terceira saw the British market as the most significant foreign presence at 4.3%.

Winter Tourism Outlook

The Azores remain a year-round destination, offering geothermal sites, hiking trails, marine excursions and volcanic landscapes across islands such as São Miguel, Terceira, Pico and Faial. However, winter months traditionally bring lower occupancy rates compared to peak summer travel periods.

January’s data highlights shifting demand patterns across domestic and international segments, alongside varying performance by island and accommodation type.

As the archipelago moves into the spring and summer seasons, tourism operators will monitor occupancy levels, international arrivals and inter-island travel patterns to assess the trajectory of visitor flows across Portugal’s Atlantic destination.

From São Miguel’s crater lakes to Pico’s volcanic peaks and Terceira’s historic Angra do Heroísmo, the Azores continue to position themselves as a distinctive nature-based tourism region, even as early-year figures reflect a slower start to 2026.

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