European Commission - Internal Market, Industry, Entrepreneurship and SMEs

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Algarve Region of Portugal

Introduction

The Algarve region (regional capital: Faro) is located in the south of Portugal, bordered on the north by the Alentejo region, on the east by the Spanish region of Andalucía, and on the southern and western areas by the Atlantic Ocean. The region is spread over 5,000 km2 and was home to 438,864 inhabitants in 2019 (Eurostat, 2020), accounting for 4.3% of the Portuguese population. Taking into account the population dynamics, the region is characterised by a rather low population density (88.3 inh/km2), which is below the national average and among the regions with lowest regional population density in Portugal. World-wide recognised as a holiday destination, Algarve is one of the main tourism areas of the country. The regional economy is mainly based in three key sectors: tourism (accommodation and catering), retail and wholesale, and construction.

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