The Association of Hotels, Restaurants and Similar Services of Portugal (AHRESP) recently called on the Portuguese government to “address the adversities” that the local tourism industry is facing and offered solutions to attract workers to the sector.
Tourism is the backbone of Portugal’s economy. Accounting for 8% of GVA in 2018, the sector has grown in volume and value over the years, with international tourism receipts reaching EUR 16.8 billion the same year. This was an increase of 8.3% from the previous year.
However, the COVID-19 pandemic caused a standstill in tourism activities, resulting in revenues dropping by 65% in 2020, and 92,000 people losing their jobs. And now, even as Portugal’s economy reopens, it will take some time before the industry goes back to pre-pandemic levels, as it is facing a shortfall of 50,000 workers, according to the World Tourism & Travel Council.
As a first step to addressing this shortage of workers in the tourism industry and other sectors, the Portuguese government recently amended its immigration laws, granting foreigners a 120-day temporary visa. This can be extended to 60 days for individuals seeking to find work in Portugal. On top of this, the government has actively been recruiting in neighboring countries, such as Africa.
While a more flexible immigration policy is good, it can only do so much, says the AHRESP, which is lobbying for a more creative approach to mitigate this problem. The association offered some solutions, including:
- Strong retention plan – Companies should come up with creative strategies to “attract and retain professionals,” which must go beyond remuneration. According to the National Institute of Statistics, while gross wages in Portugal’s tourism sector increased by 7.5% in 2021, workers still receive 247 euros below the national average wage. AHRESP says that retention programs should consider recognition practices, career advancement guarantees and better work-life balance.
- Better living conditions – AHRESP says that while immigration is a part of the solution, it needs to come with a “guarantee of dignified, working and living conditions.” Public authorities must also review the current mechanisms of legalization for migrant workers and recognition of qualifications must be streamlined.
- Friendlier tax climate – The government should also take steps to make the environment “more favorable” for travel and tourism to operate by reducing their tax burden, according to the AHRESP. This is similar to special 10 to 20 percent tax credits that foreign companies get when investing in Portugal’s tech sector.
- Valuing the profession – AHRESP strongly encourages the government to have a more “serious and structured commitment to the qualification of tourism experience.” Given that the tourism sector contributes greatly to the GVA, it is important that a strong training program be developed to ensure that travel and tourism workers are not left behind and keep up with global standards.
Portugal travel and tourism companies and the Portuguese government should expand their recruitment efforts and look to countries in Asia, particularly the Philippines, where they can hire hotel workers with excellent English communication skills, trained to provide outstanding customer service, and certified and trained to world-class standards.
Given the current situation, the government and private sector need to act fast. While better training programs, a more inclusive immigration policy, and reducing corporate tax burdens are all good things to have, hiring trained and certified travel and tourism workers from the Philippines is a quick win that can help Portugal’s tourism industry bounce back from its losses.
Wingspan Consulting, an HR consulting firm based in Singapore, the Philippines, and Portugal, can partner with the Portuguese government and Portugal’s resort and tourism industry to find and recruit the right talent in the Philippines. Contact us at solution@wingspan-consulting.com to find out how we can assist in recruitment efforts in the Philippines.
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