3 tourism trends that help boost Portugal’s pandemic recovery

The pandemic has upended our lives, from the way we work to how and where we dine. It has also changed the way we travel.

As countries in some parts of the world reopen and move toward post-pandemic recovery, it is essential—especially for places whose economies rely heavily on tourism—to consider emerging trends in the industry and see how they can adapt to and incorporate these trends to strengthen tourism.

In Portugal, the tourism industry was heavily hit by the pandemic. Accounting for 8% of GVA in 2018 and generating 1 million direct and indirect jobs, the industry’s recovery has been slow. In 2020, despite Portugal’s low infection rates, tourist visits were quite low, falling by 76%— the lowest ever since the eighties.

The silver lining is that analysts are forecasting Portugal’s economy will increase by 5.8% in 2022. According to the Bank of Portugal, economic activity is forecast to reach pre-pandemic levels by the first half of 2022.

Hotels and resorts in Portugal are recalibrating post-pandemic, and adapting new trends to attract more visitors. Here are three trends we’re seeing:

1. Contactless payments 

While contactless payments already existed before the pandemic, the emergence of more payment options has taken this to the next level, with people using debit or credit cards to make purchases and pay for meals and other services.

In Portugal, the usage of contactless technology has increased exponentially. According to the Bank of Portugal, contactless payments were made for 20% of purchases at the start of the pandemic. By December 2021, this jumped to 40%.

Contactless payments have made for faster check-ins and check-outs in hotels and resorts, and enabled guests to pay for goods easily, allowing for spontaneous purchases. With COVID-19 still a threat, contactless payments make transactions much easier as more customers prefer not to handle cash.

2. Health and safety

The COVID-19 outbreak has made health and safety standards paramount for the hotel and resort industry. From airlines to cruises, to hotels, bars, and restaurants, we are seeing an emphasis on increased cleaning, provision of hygiene kits, physically distanced seating, and more outdoor dining arrangements. Hotels and airlines are also communicating their safety and hygiene protocols repeatedly, to assure possible clients who may be reluctant to travel due to the threat of COVID-19.

Central to Portugal’s tourism promotions during the pandemic is the country’s 85% vaccination rate, touted as among the highest in the world. With this, hotels and other establishments were able to relax previous restrictions, with bars and clubs among the first to reopen, and indoor seating allowed, as well as allowing larger groups of people to meet.

3. Eco and sustainable travel

Eco travel and sustainability are one of those tourism trends that became relevant because of customer preferences. According to a travel survey, millennials—also known as Gen Y, those who are born between 1981 and 1997 and account for 27% of global population—make up 50% of consumers of goods and services. They are more discerning about what they spend on, and have been strongly supportive of sustainable and green businesses. In fact, 73% of millennials prefer to go with eco-friendly hotels when they travel.

Portugal has no shortage of eco hotels: from bed-and-breakfasts (like the Lugar do Ainda and Serra da Estrella) powered by 100% renewable resources, to hotels (like Impact House) that offset 100% of CO2 emissions, reduce, recycle, and compost water, and donate surplus food, there are a variety of choices for any sustainability-preferring traveler regardless of age.

Contactless payments, emphasis on safety and hygiene, and sustainable travel choices are some of the trends that Portugal’s hotel and resort owners have gotten on board to ensure they are able to attract more discerning travelers while ensuring they comply with pandemic restrictions.

In addition to these travel trends, Portuguese hotel and resort owners should also consider investing in globally minded and well-trained hotel staff whose attention to detail and ability to deliver personalized service will foster positive customer experiences and attract repeat business.

With the shortage of hotel workers in Portugal, hoteliers should expand their sights and consider looking to other countries like the Philippines, where they can hire 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.

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.