“New Year’s Eve in the Algarve is a democratic product that suits all budgets,” assures the president of the Algarve Hotels and Tourism Enterprises Association (AHETA), Hélder Martins, in statements to Lusa.
The New Year’s Eve celebrations in the southern region of the country offer a mix of street entertainment, with large shows and fireworks organised by the municipalities, in addition to a set of more sophisticated events in luxury hotels.
Free events
Hélder Martins says that the best shows, organised by the municipalities, “have free entry,” allowing “a fantastic night” at zero cost for those who prefer not to spend a fortune on the last night of the year.
The New Year’s Eve celebration in Albufeira is usually one of the biggest, with hundreds of thousands of people expected to celebrate the arrival of 2026. The Albufeira Carpe Nox event features shows on Praia dos Pescadores beach, drone shows, fireworks, and plenty of entertainment.
The shows include the return of the Portuguese musical group Silence 4 and a performance by Os Quatro e Meia on January 1st, with the festivities extending to the Paderne Medieval event, held in the village of Paderne, with shows and street food.
Last New Year’s Eve, the Carpe Nox Reservoir event gathered, according to the council, more than 230,000 people in the Praia dos Pescadores area, including residents and visitors who chose the municipality to celebrate the arrival of the New Year.
In the Algarve capital, Faro will celebrate the new year in the city center, at Jardim Manuel Bívar, with Manga Limão and Sara Correia, before a pyromusical fireworks display that promises to illuminate the city. In Praça do Infante, Lagos, the farewell to 2025 will be celebrated with music by Pedro Abrunhosa, followed by fireworks at midnight, which the city hall guarantees will be one of the longest in the Algarve. The party will continue into the night with musical entertainment by DJ TobyONE.
The New Year’s Eve celebration in Loulé, the largest municipality in the Algarve, is organised by the municipality at Passeio das Dunas, in Quarteira, with a program spanning four days, including performances by the band Xutos & Pontapés and Richie Campbell on the night of December 31st.
Other locations with popular shows include the Portimão riverside area, with the “Revenge of the 2000’s” party; Carvoeiro Beach in Lagoa, with Maninho, Deejay Cabrita and Zinco; the Jardim Pescador Olhanense in Olhão, with Diogo Piçarra and DJ Deelight; Praça da República in Tavira, with One Vision paying tribute to Queen; Monte Gordo Beach in Vila Real de Santo António, with Fernando Daniel; and the Alcoutim pier, with DJ Fábio Sousa.
Hotel bookings
Despite many hotels being closed during the winter, AHETA estimates that, by mid-December, New Year’s Eve bookings are between one and two percent higher than the same period last year, with prices identical to those of a year ago.
“These are the hotels that, for the most part, have packages that include New Year’s Eve entertainment.” “Most people who come for street entertainment only book at the last minute,” explains Hélder Martins.
In addition to the free parties organized by municipalities and parish councils, there are others planned for casinos and hotels in the region.
Parties
At the Vilamoura Casino, for example, New Year’s Eve includes a complete menu with dinner, selected drinks and supper, as well as various attractions, for a price of 220 euros per person.
An internet search for a New Year’s Eve dinner in the Algarve shows options starting from 99 euros per person for buffets, prices that can, however, exceed 420 euros per person for more exclusive galas.
For those who want to dine and stay in a five-star hotel, prices can reach 700 euros or more per person in double occupancy rooms, depending on the type of room and the number of days.
According to the president of AHETA, luxury establishments in the Algarve already had, in the mid-20th century, a significant number of hotels. In December, reservations were at approximately 92% for the period that includes Christmas and New Year’s Eve.
