In the last decade, the circular economy has been one of the most important issues in Europe, both in terms of the recyclability of products and sustainability in the economy. The circular products have not only become a choice for consumers but also for other circular productions. Moreover, the tourism sector has increased its participation in the circular products. The article deals with the analysis of the tourism sector and the circular economy in European countries, especially in Portugal. The methodology used is the Swot analysis. It is considered that the tourism sector can contribute to an appropriate and cooperative pathway for sustainable economic and social growth in Portugal. Regarding the importance of AI in the tourism development, the article gives an overview about the linkage between the circularity and the methodology that can be used in tourism sector. The article will also contribute to the understanding of the circular economy in the tourism sector in other countries and its applicability to AI.