The 5-star Hilton Vilamoura As Cascatas Golf Resort & Spa in the Algarve, Portugal, opened last year as Hilton’s only property in the country.

Many of Portugal’s newfound visitors are also coming from the United States. A weak U.S. dollar has Americans finding Portugal attractive; airlift capacity from the States has increased 30% in five years; and the number of Americans visiting Portugal has increased by 20% in each of the last two years. “Americans haven’t stopped going to Europe, despite the exchange rate. What they have done is reconsider how they are going to travel—they’re looking for alternatives,” says Jayme Simões, spokesman for the Portuguese National Trade & Tourism Office. “Nothing in Europe is cheap these days, but Portugal offers a reasonably priced alternative, compared to other parts of Europe.”

The national tourism group is embarking on a new global marketing program with the slogan, “Europe’s West Coast.” The campaign highlights Portugal as a unique, authentic destination that offers a taste of Europe without the tourist congestion of more traditional tourism spots like London and Paris.

The government of Portugal is helping fund some 57 new tourism developments by 2011 at a total investment of €5.7 billion, boosting infrastructure to spur tourism in underserved regions and helping to modernize the hotel sector in well-trafficked spots like Lisbon. The capital will double its inventory of upscale hotels in the next decade.

Furnas Spa Hotel opened in July in São Miguel in Portugal’s Azores region.

A couple of Portugal’s best known tourist hotspots are likewise seeing growth. In the Algarve, long Portugal’s most famous resort destination, 10 new tourist projects are in the works, including a 257-key 5-star hotel. And in the northeastern region of Douro, the room inventory has doubled over the last couple years, including nine projects by Douro Vinhateiro Group. Other top destinations that the government is targeting for tourism development include Porto, Serra da Estrela, Oeste, Alqueva, Coastal Alentejo and Madeira.

In all, Portugal has more than 600 hotels comprising about 51,000 guestrooms. Going forward, the government is hoping to increase the inventory of chain hotels, as the major U.S. brands have largely avoided Portugal in the past. Starwood Hotels & Resorts has 10 properties in the country and Best Western International has nine, but Marriott International has just three, and Radisson SAS and Hilton Hotels have one each. “It’s an opportunity,” Simões says. “More Americans are going over there, and clearly they’re looking for an authentic experience, but they’re looking for that experience with a brand that they have a relationship with.”

Direct comments to: adam.kirby@reedbusiness.com