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Because of its high cultural and historical value, Funchal is one of Portugal's main tourist attractions. It is also popular as a destination for New Year's Eve and it is the leading Portuguese port on cruise liner dockings.

Funchal has a subtropical Mediterranean climate with even temperatures all year round. The climate can be divided into three main seasons: a warm and dry season spanning from May to September with average daily high temperatures ranging from 22 to 26 °C (72 to 79 °F), a warm and wet season from October to November with average daily high temperatures ranging from 25 to 23 °C (77 to 73 °F) and a slightly cooler wet season from December to April with average daily high temperatures ranging from 20 to 21 °C (68 to 70 °F). Humidity levels remain constantly high at about 70%. Sea temperatures range from a low of 18 °C (64 °F) in February–March to 24 °C (75 °F) in August–October.