Post-pandemic Recovery for Portugal

Boosting tourism—including hiring skilled hotel employees to cover its worker shortage—will enable Portugal to bounce back from its pandemic losses.

Analysts are expecting Portugal’s economy to increase by 5.8% in 2022, with help from growing exports and investment. According to an economic bulletin issued by the Bank of Portugal in December 2021, economic activity is forecast to reach pre-pandemic levels during the first half of 2022.

One of the biggest contributors to Portugal’s economy is the tourism industry, accounting for 8% of GVA in 2018. The sector has grown in both volume and value, with international tourism receipts reaching EUR 16.8 billion the same year, increasing by 8.3% from the previous year.

The industry also employed 1 million direct and indirect jobs in 2018, according to the World Travel & Tourism Council. However, the pandemic caused 92,000 people in the tourism industry to lose their jobs, and even as Portugal is gearing to reopen, the labor market is anticipating a further shortage of workers, with a shortfall of 85,000. This, along with restrictions imposed because of the Covid-19 pandemic, will set Portugal back from meeting its economic goals. But there are ways for Portugal’s tourism industry to recover.

Focus on sustainability. Sustainable travel is becoming the norm, with the majority of travelers becoming more discerning of their spending. In fact, more than half of travelers surveyed by Booking.com’s sustainable travel report in 2019 were determined to make sustainable travel options. At the forefront of this trend are the millennials, who have the biggest purchasing power.

Portugal’s hotels are not at all behind in green accommodations. A few of its hotels have expanded their sustainability mindsets from simple practices of removing single-use plastics from their facilities, monitoring usage of water, and using local produce to more holistic ways of operating sustainably, which includes sustainable design, using renewable energy, and a commitment to reducing their facilities’ impact on the environment. Certainly, as more Portugal hotels see the wisdom in minding its environmental impact and not just their bottom line, they are more likely to attract discerning travelers, who will keep coming back.

Having a global mindset. In the tourism industry, a positive customer experience is key to repeat business. Creating this positive customer experience means having a team of globally minded and well-trained hotel staff who go the extra mile to pay attention to detail, deliver personalized service, and offer a creative approach to customers’ issues.

Given the shortage of hotel workers in Portugal, hoteliers should consider expanding their sights and looking to other countries, particularly the Philippines, where they can find recruit hotel workers who have excellent English communication skills, are trained to provide outstanding customer service, and have been certified and trained to world-class standards.

Becoming a brand of choice in the travel and tourism sector goes beyond luxurious amenities. Having a team of highly trained hotel workers who can breathe life into this brand of service excellence is also essential.

Wingspan Consulting, an HR consulting firm based in Singapore, the Philippines, and Portugal, can help you find and recruit the right talent to help you elevate your brand to global standards.

Download our brochure to see how we can assist you.