The accommodation and food services sector is vital to Portugal's tourism industry, contributing significantly to economic output and employment. This study analyses the sector’s business dynamics from 2004 to 2022, focusing on key indicators such as business entry, exit, and survival rates. The research uses recent administrative data to examine in an exploratory manner how businesses within the sector have responded to significant economic challenges, including the global financial crisis and the COVID-19 pandemic. The findings reveal a resilient yet evolving sector, with a noticeable shift towards corporate consolidation and a decline in sole proprietorships. The study highlights the sector's sensitivity to economic fluctuations, underscoring the need for strategic planning and policy intervention to support sustained growth and stability. These insights provide valuable guidance for policymakers and industry stakeholders seeking to navigate future economic uncertainties and foster a more robust accommodation and food services sector in Portugal.