Domestic tourism, a pillar of theAlgarve summer, will face a year of transition due to the storms at the beginning of the year. The scenario can be summarized in three critical points: * Contraction of Demand in the Central and Northern Regions: Families in the areas most affected by the floods (Leiria, Coimbra, and Porto) will have their disposable income reduced due to the need for reconstruction. This translates into an estimated 15% to 20% drop in reservations from these specific regions. * Dominance of “Last Minute”: Financial uncertainty and fear of new climatic instabilities have destroyed confidence in advance bookings. In 2026, occupancy will be decided at the last minute, depending on weather stability and last-minute offers. * Polarization of Consumption: Mid-range/family-run local accommodation will suffer more, requiring aggressive promotions to maintain occupancy rates. * Luxury/premium short-term rentals should remain stable, as their target audience is less vulnerable to the immediate economic impacts of storms. Conclusion: The 2026 high season will not be lost, but it will require much more dynamic pricing management and communication that emphasizes the Algarve as a safe and sunny haven for those who have experienced a traumatic winter. Copyright © 2026 SAPvillas, Lda