Sophia, I'm portuguese, living in Portugal.
The Supreme Court was obviously obnoxious on this decision. We are still waitting the government pronunciation on this, because a decision from the Supreme Court is not a law but it makes case law (not sure if I'm translating right, translator says the right word is jurisprudence).
Which means that if in a residential building an apartment with a residencial license is in short term rental (alojamento local, in portuguese, commonly AL), and an accion in court is taken by one of the other owners of apartments in the same building, when it goes to Court (1st instance) they could decide imediately the end of it. This takes more or less 2 years, so you should be worried if you booked an apartment for 2024 or 2025... For 2022, don't worry at all!
With this decision, the Supreme made that for now, owners that want to be sure thay can continue their business and have a residencial licence, need to ask for a commercial license. Because there can always be a neighbour there that is envy of your business, and if they go to court, they will win, because of this case law.
I know what I would do if I had an apartment for tourists (which I don't) and a neighbour would try to end it: I would suspend the tourist thing, and would rent the apartment to students, for instance. I assure you the neighbour would regret very much being against tourists. (Both business can coexist, long term rentals and turistic business, so I would not loose my AL license).
Tourists don't come to Portugal to paint graffiti on building walls, organize parties all night long, etc. Tourists usually come here to visit the Country, and perhaps meet some locals, spending money on local business: the grocery next door, the restaurant around the corner, etc.
Landlords, or the owners of aparments that are in the short term rental for tourists, don't get rich with it. And they were hitten bad with the pandemic situation. They are usually people that lost their job and found that they can make some day-to-day money buying an aparment and profit with it in the tourism business. They work hard and pay a lot of taxes. But some people just see their profits, wich are low.
Anyway, they are competing directly with Hotels.
Portugal is now a turistic destination, so many Hotels (big chains) are opening. And they don't want competition, they want all the profits for them. They are buying entire neighborhoods and transforming it in a kind of Disneyland.
If that has something to do with the Supreme decision, I don't know. But it is very suspicious.
Anyway, just come to Portugal and enjoy, we are a sunny country, and the food is good.
I know you were not worried anymore, but I just wanted to clarify (or at least try) some things.