ABSTRACT
The tourist industry is vital to the Portuguese economy in wealth-creation and employment terms. Its importance can be gauged by comparing income from tourism as a percentage of the EC’s GDP in 1989 (1.6 per cent) with that of Portugal where it represented 5.7 per cent-the highest proportion for any European country. As Portugal’s main foreign exchange earner, the sector is ahead of textiles and clothing and is responsible for covering half the merchandise trading deficit (EIU 1993:27). In addition, the high levels of investment in tourism seen over the past few decades have impacted positively on other sectors, particularly the construction and transport industries.
